Full text of Federal Reserve Bulletin : February 1989
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
VOLUME 75 •
NUMBER 2 •
FEBRUARY 1989
FEDERAL RESERVE
BULLETIN
B O A R D O F G O V E R N O R S O F T H E F E D E R A L RESERVE S Y S T E M , W A S H I N G T O N , D . C .
PUBLICATIONS COMMITTEE
Joseph R. C o y n e , Chairman • Michael Bradfield • S. David Frost
• Griffith L . Garwood • Donald L . Kohn • Michael J. Prell • Edwin M. T r u m a n
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
53 MONETARY
POLICY
OF CHANGE
IN AN
66 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
ERA
T o the ongoing process of adaptation and
innovation in a dynamic market economy
has been added the dismantling of regulations in several areas, all of which has been
reflected in the rapid pace of change in the
economy and in financial markets over the
past decade or so. This article discusses the
developments that have been most important f r o m the perspective of monetary policy.
58 TREASURY AND FEDERAL
RESERVE
FOREIGN EXCHANGE
OPERATIONS
On balance over the three-month period
f r o m August through October 1988, the
dollar ended the period about 5V2 percent
lower against the Japanese yen and 5 percent lower against the German mark f r o m
levels at the end of July.
63 INDUSTRIAL
PRODUCTION
Industrial production increased
mated 0.5 percent in N o v e m b e r .
65
an
esti-
ANNOUNCEMENTS
Increase in the net transaction accounts to
which a 3 percent reserve requirement will
apply in 1989.
Proposal to amend Regulation Z.
Hearing scheduled on proposal to rescind
rule.
Changes in Board staff.
Admission of one state bank to membership
in the Federal Reserve System.
At its meeting on N o v e m b e r 1, 1988, the
Committee agreed on a directive that called
for maintaining the current degree of pressure on reserve conditions and that provided for remaining especially alert to potential developments that might require
some firming during the intermeeting period. Accordingly, s o m e w h a t greater reserve restraint would be acceptable, or
slightly lesser reserve restraint might be
acceptable, over the intermeeting period
depending on indications of inflationary
pressures, the strength of the business expansion, the behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets. T h e
reserve conditions contemplated by the
Committee were expected to be consistent
with growth of M2 and M3 at annual rates of
around 2Vi percent and 6 percent respectively over the three-month period f r o m
September to D e c e m b e r . T h e intermeeting
range for the federal f u n d s rate was left
unchanged at 6 to 10 percent.
73 LEGAL
DEVELOPMENTS
Various bank holding c o m p a n y , bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available as of
December 28, 1988.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
A71 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL
RELEASES,
AND SPECIAL
TABLES
A72 BOARD OF GOVERNORS AND STAFF
A79 INDEX TO STATISTICAL
A74 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A8I FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A76 FEDERAL RESERVE
PUBLICATIONS
A82 MAP OF FEDERAL RESERVE
BOARD
TABLES
SYSTEM
Monetary Policy in an Era of Change
This article has been adapted from remarks
made by Donald L. Kohn, Director of the
Board's Division of Monetary Affairs, at the
opening session of a conference on this subject
sponsored by the American Enterprise Institute
on November 16, 1988, in Washington D.C.
The pace of change in financial markets and the
e c o n o m y seems to have accelerated over the past
decade or so. T o the ongoing process of private
adaptation and innovation in a dynamic market
economy has been added the dismantling of
regulations in a number of areas. This article
discusses those developments that have been
most important f r o m one perspective—that of
monetary policy.
RELATION OF POLICY ACTIONS
ECONOMIC
OBJECTIVES
TO
The practical question a monetary policymaker
must ask constantly is, h o w do I judge whether
the instruments at my disposal are at the right
settings to foster national economic objectives?
Or, more broadly, is there a system to guide
adjustment of those instruments to get them
closer to their appropriate settings? Such a system need not involve frequent discretionary
changes in the instrument settings in response to
a variety of incoming information. Rather, it
could be embodied in a policy rule in which the
instruments reacted fairly automatically to certain developments, such as changes in demands
for money, and in which few, if any, ad hoc
adjustments were required.
These questions arise in part out of the uncertainties created by the lags between policy actions and economic results. The lags are inherent
in a complex process through which actions to
alter policy instruments, such as adjustments to
reserve availability through open market operations or changes in the discount rate, are trans-
mitted to the e c o n o m y . In a simplified description of this process, the central bank alters the
cost and quantity of reserves, and those alterations work through the supply of and demand
for money and credit to affect interest rates,
exchange rates, and other financial variables and
to influence the d e m a n d for output and the price
level. Inevitably, it takes some time for people to
recognize that factors important to their spending
decisions have changed in m o r e than trivial ways
and to alter their behavior accordingly, and then
for the full effects of the new behavior to be felt
in the economy. In practice, the process involves
the simultaneous determination of these variables through complex interactions, affected powerfully by expectations about the f u t u r e actions
of the participants, including those of the central
bank. As a consequence, the duration of the lags
may vary over time.
Questions about the relation of policy settings
to objectives also arise because of the effects of
factors outside the direct influence of the monetary policymaker, such as developments abroad
or changes in fiscal policy or private spending
behavior. T h e s e factors could significantly influence the level of economic activity and prices,
possibly requiring some reaction by monetary
policymakers.
Because of the lags involved, making monetary policy necessarily involves predicting the
effects of policy actions and of these other influences. T h e predictions may be arrived at through
formal forecasting exercises. H o w e v e r , the experience of recent decades has reinforced skepticism about detailed forecasts of gross national
product that attempt to take explicit account of
the interactions over time, a skepticism already
present in face of the complexity of the e c o n o m y
and of the transmission of policy actions. That
skepticism has prompted a search for intermediate guideposts along the w a y , so that policymakers can judge whether they are on the right track
and the public can judge the direction of policy.
54 Federal Reserve Bulletin • Februrarv 1989
It has also prompted a search for policy rules—
ways of setting or adjusting the instruments of
policy, usually keyed to an intermediate guidepost such as a measure of the money stock—that
require little j u d g m e n t by policymakers. Of
course, the use of guideposts and rules itself
involves implicit forecasting: the intermediate
guide should be related predictably to objectives;
and predetermined changes in instruments in
reaction to deviations of the guide f r o m its path
should be proportioned and timed appropriately
to achieve progress toward those objectives.
It is in the context of the need to predict the
effect of policy actions that questions arise about
h o w financial and economic changes have affected the transmission of policy and about the
implications of these changes for the variables to
which the central bank is, or ought to be, paying
attention. That is, harking back to the issues
facing the policymaker, how have these changes
affected the instrument settings needed to
achieve ultimate objectives and the criteria for
judging whether the settings are appropriate?
EFFECTS OF DEREGULATION
INNOVATION
AND
A number of developments in the economic and
financial environment bear on these questions.
Several involved discrete changes in law, regulation, and international agreements. A key series of changes concerned deregulation of interest rates on both sides of the balance sheets of
depository institutions: through removal of Regulation Q on deposits and of usury ceilings on
loans. In the international arena, the earlier
moves to floating exchange rates and freer capital
flows seemed to take on greater importance in
the past decade.
At the same time, certain evolutionary changes
in financial markets and the economy may have
affected the way monetary policy works. In
financial markets such changes include the
greater use of floating-rate financing, and of
futures and options and other f o r m s of reallocation of the risks of fluctuations in interest rates or
other prices in financial markets. The expansion
of markets in derivative instruments has been
fostered in part by improvements to information
systems, which have facilitated more complex
strategies for managing assets and liabilities.
Such strategies also have included greater economizing on lower-yielding financial assets, such
as transaction deposits, and on lower-yielding
real assets in the form of business inventories. In
the economy, imports and exports have become
more important in variations in domestic spending and production. Deregulation and technological advances have m a d e some of these developments possible, but many have also been
impelled by the unusually wide amplitude of
cycles in the e c o n o m y , in inflation, and in financial markets. These swings have reflected in part
the supply shocks of the last 15 years as
well as unprecedented shifts in monetary and
fiscal policy, and they have been associated with
huge
fluctuations
in interest and exchange
rates.
Certainly, taken together these developments
have mattered for the transmission of monetary
policy to the economy. They have altered the
responses of certain financial variables to policy
impulses and the responses of the e c o n o m y to
those financial variables. And they have changed
the importance of particular channels of policy
influence as well as the way other variables affect
the e c o n o m y .
The effects can be seen clearly in new behavior
patterns of traditional intermediate indicators of
policy, both m o n e y and interest rates—changes
that have been well-documented elsewhere, most
recently in articles by William Poole and Benjamin Friedman in the S u m m e r 1988 issue of
Journal of Economic
Perspectives.
Effects on the Monetary
Aggregates
As the character of monetary assets has changed
with innovation and deregulation, so has the way
these assets have been supplied and d e m a n d e d in
financial markets. In effect, new instruments
have been created bearing old names, and quite
naturally they do not b e h a v e in the old ways.
The most important effect of deregulation on
the monetary aggregates has been on their interest elasticity over the short and intermediate
terms. Many o b s e r v e r s expected that, when deposit rates were deregulated, adjustment of these
rates to market yields would forestall widespread
Monetary Policy in an Era of Change
reallocation of asset portfolios in the w a k e of
changes in market interest rates. Instead, dem a n d s for the aggregates remain quite sensitive
to m o v e m e n t s in m a r k e t interest rates; indeed,
the interest sensitivity of the narrow aggregates
has increased. A s anticipated, since deregulation
the opportunity costs of holding deposits have
fallen as deposit rates have moved up toward
m a r k e t rates. Yet, for many household deposits
opportunity costs continue to fluctuate o v e r a
wide range in response to changes in market
rates, and on average, for periods of a year or
t w o , m a y b e relatively as variable as before.
T h e behavior of opportunity costs results f r o m
the tendency for depository institutions to adjust
m a n y of their retail deposit rates only sluggishly.
T h e effects have been greatest on M l , since
yields o n N O W accounts, which are an important
c o m p o n e n t of that aggregate, m o v e much m o r e
slowly than short-term market rates or yields on
small time deposits do. Also, N O W a c c o u n t s
h a v e attracted considerable savings f u n d s , which
m a y be particularly sensitive to changes in interest differentials. T h e lag in adjustment of rates on
N O W a c c o u n t s has occasioned substantial shifts
of f u n d s b e t w e e n these accounts and small time
deposits as yield relationships have changed.
Such shifts would b e subsumed within M2, but
even d e m a n d s f o r this aggregate seem to exhibit
substantial interest sensitivity over the periods of
a year or so that are relevant to standard targeting exercises.
F o r the policymaker, the practical effect of an
interest-sensitive m o n e y demand is a loose tie
b e t w e e n m o n e y and income within a business
cycle. T h e a m o u n t of m o n e y the public wishes to
hold at any level of income or spending can vary
substantially depending on the interest rates prevailing. F o r e x a m p l e , strong growth of income
might b e associated with fairly subdued monetary expansion if the robust behavior of the
e c o n o m y w e r e a c c o m p a n i e d by higher interest
rates, w h o s e depressing effects on money demand could m o r e than offset the boost f r o m
greater income and savings. Although rapid
money growth in a strong e c o n o m y might well
signal a m o n e t a r y policy that had been too easy,
weak money growth would not necessarily suggest that policy w a s t o o tight and might lead to a
d o w n t u r n . In f a c t , such a path f o r m o n e y might
55
b e an aspect of a prescient and appropriate policy
that had moved toward restraint to head off inflationary pressures. Similar problems could cloud the
interpretation of opposite movements of money
supply indicators if the economy were weak and
interest rates had fallen substantially.
A s a c o n s e q u e n c e of deregulation, t h e s e problems have b e c o m e so serious f o r M l that this
aggregate, which formerly w a s considered the
most reliable intermediate guide, has not been
able to serve as a useful indicator or target f o r
policy. M2 has not b e e n affected in this w a y , but
it remains sufficiently interest sensitive that it is
difficult to j u d g e the import of a path f o r this
aggregate without r e f e r e n c e to the surrounding
economic situation.
Effects on Interest Rates and
Spending
T h e natural inclination in such c i r c u m s t a n c e s is
to pay closer attention directly to spending
trends, relating t h e m to such determinants as
interest rates. But, e v e n that relationship has
been affected by deregulation a n d innovation in
recent years.
In particular, removal of Regulation Q ceilings
on deposits and of usury ceilings on loans has
meant that financial intermediaries n o longer
abruptly r e d u c e the supply of mortgage credit
and certain o t h e r types of credit, with effects on
associated spending, w h e n interest r a t e s reach
certain levels. M o r e o v e r , n e w financial instruments, m a r k e t s , and techniques h a v e b r o a d e n e d
the choices available to savers, s p e n d e r s , and
intermediaries f o r structuring their assets and
liabilities. Small savers h a v e m a n y m o r e opportunities to earn market-related rates of return,
and investors can a d j u s t the liquidity and other
risk characteristics of their portfolios at lower
transaction costs. B o r r o w e r s h a v e n e w , inexpensive channels f o r liquefying fixed assets and for
tapping savings flows—for e x a m p l e , through
h o m e equity lines of credit and securitized mortgages. Financial intermediaries h a v e gained
greater flexibility f o r asset and liability management. T h e result has b e e n to r e d u c e quantity or
liquidity constraints in financial m a r k e t s , and
thus to elevate rate m o v e m e n t s as a transmission
channel for m o n e t a r y policy and o t h e r influences
in the e c o n o m y . In turn, this d e v e l o p m e n t m e a n s
56 Federal Reserve Bulletin • Februrarv 1989
that real interest rates n o w may vary more as
economic conditions change and in particular
they may need to rise to higher levels than
previously to provide equivalent restraint on
spending during " b o o m s " in business activity.
International
Considerations
At the same time, j u d g m e n t s about what policy
settings are appropriate for the desired results
with respect to prices and output have been
affected by the growing need to take account of
international considerations. This need reflects
the shift to floating exchange rates and the increasing mobility of capital, as well as the greater
proportion of imports and exports in spending
and production. Changes in interest rates, for
example, may have a significant effect on the
economy through their influence on capital flows,
exchange rates, and the competitive position of
domestic versus foreign providers of goods and
services, as well as through their direct effect on
spending and saving decisions. In addition, wide
variations in exchange rates in recent years—
under the influence of a variety of factors besides
monetary policy—have had major effects on the
economy.
One consequence of this confluence of international factors has been increasing attention to
the exchange rate as an influence on prices and
output and as a channel through which various
forces, including monetary policy, affect the
economy. A related consequence has been
heightened sensitivity to foreign economic developments and policies as influences on the exchange rate, financial markets, and the economy
in the United States. Recognition of these interdependencies has argued strongly that policy can
be improved through m o r e regular and more
systematic exchanges of information about economic developments and policy intentions with
foreign authorities. A n d , it has prompted exploration of the potential benefits f r o m more formal
schemes for policy cooperation or coordination.
Further
Research
Together, these changes in the transmission of
policy to the e c o n o m y probably have added to
the uncertainty associated with predicting the
effects of particular policy actions. Certainly,
projections m a d e using older relationships—
based on either the m o n e y stock or interest
rates—have foundered at one time or another in
recent years. T h e s e failures h a v e spurred a f r e s h
examination of the f u n d a m e n t a l relationships
among financial and real variables. T h e U . S .
economy probably never w a s so orderly or so
easily described as implied by the settled relationships that, until the mid-1970s, seemed to
emerge f r o m the data of the p o s t w a r era, with its
damped business cycles and stable exchange
rates. Attempts to respecify and rethink these
relationships are clearly desirable f r o m the perspective of the policymaker.
Important aspects of this w o r k , a n d , indeed,
good indicators of the unsettled nature of the
debate, have been the r e n e w e d attention to the
value of particular intermediate targets or indicators for policy and the proposals of new candidates. Many of those w h o would run policy
according to a rule for m o n e y stock growth have
acknowledged the disturbances to deposits that
accompanied deregulation and are looking to the
monetary base as a guide. T h o s e w h o f o c u s on
interest rates have acknowledged the difficulty of
determining their appropriate level without reference to n u m e r o u s other factors. Recently,
commodity prices, exchange rates, the slope of
the yield curve, and various leading indicators of
real activity all have b e e n mentioned for use as
intermediate guides to policy in combination with
each other or with other variables, such as the
money supply and interest rates. Given the
added uncertainty, this discussion takes on
greater significance, though perhaps with even
less chance of successful conclusion than before.
SOME
CAVEATS
At the same time, w e should be careful not to
overstate the effects of changes in the economic
and financial environment on the policy process.
Monetary policy seems to have done reasonably
well in fostering progress toward national economic goals in recent years. One reason for this
relative success may be that, although the precise specifications of key relationships have
changed, many of the changes h a v e been more
Monetary Policy in an Era of Change
evolutionary than revolutionary, leaving longerterm and m o r e f u n d a m e n t a l relationships essentially intact. Policymakers have, with due caution, b e e n able to take advantage of the lessons
of history.
T h e m o n e t a r y aggregates, for example, always
have had some interest sensitivity that policymakers needed to be aware of w h e n interpreting
their m o v e m e n t s . In fact, deregulation probably
has e n h a n c e d the m o n e t a r y aggregates as nominal anchors f o r policy o v e r the long run, by
reducing longer-term interest elasticity and by
diluting the incentives for financial innovation
that would facilitate economizing on holdings of
m o n e t a r y assets.
Although the fading of credit-availability effects undoubtedly has lifted equilibrium real interest rates u n d e r certain circumstances, it has
not altered the f u n d a m e n t a l comparison of cost,
including interest rates, with return w h e n deciding w h e t h e r to spend. This decision also has b e e n
basically unaffected by the use of variable-rate
loans, f u t u r e s , swaps, and the like. These instrum e n t s serve primarily to redistribute cash flow
and wealth w h e n interest rates, exchange rates,
or stock prices change; they d o not alter the
prospective profitability of a capital project.
M o r e o v e r , attention to international considerations is not a new aspect of m o n e t a r y policy.
E v e n b e f o r e the gyrations of exchange m a r k e t s
and trade balances of recent years, m o v e m e n t s
of the dollar, and b e f o r e that of international
reserves, w e r e taken as indicators of underlying
conditions in the e c o n o m y and prices and as
influences on f u t u r e developments. As such, they
frequently h a v e had a bearing on the stance of
policy.
A recent twist f o r the United States has been
concern that the m o v e f r o m net creditor to net
debtor status internationally will constrain monetary policy. T h e underlying hypothesis, it
seems, is that crossing that essentially unknowable line heightens the risk of shifts out of dollar
57
claims that would c a u s e conflicts b e t w e e n the
need to stabilize the dollar to p r e v e n t inflation
and the need to supply sufficient liquidity to
sustain growth. But, a large v o l u m e of liquid
dollar claims has long b e e n held in internationally
mobile portfolios, and an e x o g e n o u s impulse to
flee f r o m these assets could b e j u s t as serious for
the United States w h e t h e r it is a net creditor or a
net debtor. F u r t h e r m o r e , in t h e last f e w years the
Federal R e s e r v e has not e n c o u n t e r e d prolonged
or disruptive conflict b e t w e e n the n e e d s of internal and external balance. N e v e r t h e l e s s , the deterioration in our external position is a serious
problem: it r e p r e s e n t s an underlying imbalance
b e t w e e n domestic spending and p r o d u c t i o n that
is not sustainable. Reliance o n m o n e t a r y policy
alone to a d d r e s s this problem will d a m p growth
of capital and add to strains in o u r financial
markets. W e n e e d , instead, to a u g m e n t national
savings by bringing d o w n our federal budget
deficit.
With all the changes in the financial and economic system, m o n e t a r y policy continues to
work through the same basic m e c h a n i s m s that
alter the incentives to save and to spend and that
shift the locus of such spending. M a n y of these
changes arise in the natural evolution of a dynamic economic and financial s y s t e m to which a
central b a n k must learn to adapt. S o m e of them
may have w e a k e n e d the effectiveness of policy—
defined narrowly as the impact of a given twist of
the instrument dials—while o t h e r s h a v e probably
strengthened it. O n balance, they d o not justify
holding policymakers any less a c c o u n t a b l e f o r
results today than they w e r e 10, 20, or 30 years
ago.
E v e n so, the system is changing, and along
with that, so are the a n s w e r s to the policymakers' questions about the relationship of instrument settings to ultimate o u t c o m e s . T o enable
policy to adapt to the changes in the system, w e
must find out as m u c h about their effects as
possible.
•
58
Treasury and Federal Reserve
Foreign Exchange Operations
This quarterly report, covering the period August
through October 1988, provides information on
Treasury and System foreign exchange operations. 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.1
During the early w e e k s of the period under
review, the dollar continued the generally upward trend that had prevailed throughout the
s u m m e r , moving higher against all major foreign
currencies but especially against the G e r m a n
mark. At times during August and to a lesser
extent during S e p t e m b e r , there w e r e episodes of
u p w a r d pressure w h e r e u p o n the U . S . authorities
intervened, selling dollars to restrain the dollar's
rise. A s the period progressed, shifts in expectations about the U . S . economic outlook, about the
prospects for f u r t h e r increases in U . S . shortterm interest rates, and about the progress of
external adjustment led to a more cautious attitude toward the dollar, and the currency started
to ease. During O c t o b e r , selling pressures intensified, and late that m o n t h the U . S . authorities
intervened in the foreign exchange market to
support the dollar. O n balance, the dollar ended
the three-month period about 5Vi percent lower
against the J a p a n e s e yen and 5 percent lower
against the G e r m a n mark f r o m levels at the end
of July.
In the opening w e e k s of the period, the dollar
was buttressed by the release of economic statistics indicating continued strength in the U . S .
e c o n o m y . T h e August 5 a n n o u n c e m e n t of preliminary e m p l o y m e n t data f o r July, together with
1. The charts for the report are available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
an upward revision to J u n e e m p l o y m e n t data and
evidence of increasing capacity utilization, suggested that U . S . e c o n o m i c g r o w t h w a s proceeding at a p a c e that could give rise to new
inflationary pressures. M a r k e t participants interpreted these economic statistics as increasing the
likelihood that the F e d e r a l R e s e r v e would tighten
its monetary policy stance. S o m e observers already claimed to see signs of F e d e r a l R e s e r v e
tightening and w e r e attracted b y t h e prospects of
rising short-term interest rates and the relatively
high yields available o n dollar-denominated assets. E v e n so, market participants w e r e somewhat surprised w h e n t h e F e d e r a l R e s e r v e raised
the discount rate Vi p e r c e n t a g e point to 6V2
percent on August 9. Subsequently, short-term
interest rate differentials favoring the dollar
against both the G e r m a n m a r k and the J a p a n e s e
yen widened. O n August 10, the dollar reached
1. Federal Reserve reciprocal currency
arrangements
Millions of dollars
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:
Dollars against Swiss francs
Dollars against other authorized European
currencies
Total
Amount of
facility,
October 31,
1988
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
700
500
250
300
4,000
60
1,250
30,100
59
its period high of DM1.9245 against the mark
while trading as high as ¥ 1 3 5 . 2 0 against the yen.
At that time, the dollar was 2Vi percent higher
against the m a r k and Wi percent higher against
the yen f r o m t h e start of the period. F r o m its low
point around the turn of the year, the dollar had
m o v e d up more than 23 percent against the mark
and m o r e than 12 percent against the yen.
F o r several weeks thereafter the dollar traded
firmly as market participants adjusted c o m m e r cial leads and lags and implemented other hedging strategies to take account of the dollar's
r e n e w e d strength. Sentiment toward the dollar
remained bullish, with traders interpreting even
potentially unfavorable news as favorable f o r the
dollar. In these circumstances, market participants questioned the degree of the administrat i o n ' s concern over the dollar's rise.
Perceptions that external adjustment was proceeding on track encouraged positive sentiment
toward the dollar. Market participants noted that
the trade deficit had narrowed with each of the
previous three monthly reports, setting in place a
trend of improved p e r f o r m a n c e based on varying
combinations of strong export p e r f o r m a n c e and
slower growth of imports. T h e August 16 report
that the U . S . trade deficit for J u n e had widened
to a seasonally adjusted $12.5 billion f r o m a
revised $9.8 billion in M a y initially disappointed
the market, and the dollar briefly declined. But
strong u p w a r d p r e s s u r e on the dollar soon reemerged as s o m e market participants seemed to
view the widening of the deficit—and in particular the rise in imports—as yet another indication
that the Federal R e s e r v e might f u r t h e r tighten its
policy stance to counter inflationary pressures.
Meanwhile, others noted the favorable implications for increasing U . S . industrial capacity of
the substantial rise in imports of capital goods.
T h e dollar m o v e d as high as DM1.9230 against
the m a r k on August 22 and ¥ 1 3 4 . 7 0 against the
yen on August 24, almost matching the highs
reached earlier in the month. Between August 5
and August 23, the U . S . monetary authorities at
times intervened heavily in the foreign exchange
market to resist the tendency f o r the dollar to
a d v a n c e , selling a total of $1,806 million against
marks in operations often coordinated with other
central b a n k s . T h e intervention operations, reinforced by official c o m m e n t a r y both in the United
States and abroad expressing c o n c e r n that any
f u r t h e r rise of the dollar against the G e r m a n mark
might impede i m p r o v e m e n t in t h e trade balances,
were, by the end of A u g u s t , beginning to be
viewed as a f o r c e f u l d e m o n s t r a t i o n that international a g r e e m e n t s to f o s t e r e x c h a n g e m a r k e t stability remained intact.
T h e n on August 25, in a m o v e p r o m p t e d by
developments in the foreign e x c h a n g e m a r k e t as
well as by domestic conditions in the individual
countries, the G e r m a n B u n d e s b a n k and several
other E u r o p e a n central b a n k s raised their official
interest rates. A s G e r m a n interest rates edged
higher after the B u n d e s b a n k ' s a n n o u n c e m e n t
of a Vi percentage point rise in the discount
rate, interest rate differentials favoring the
dollar against the m a r k n a r r o w e d , diminishing
the relative attractiveness of dollar-denominated
assets.
That day the dollar declined almost 1 p e r c e n t
against the m a r k , bringing the dollar to a b o u t the
same level as at t h e opening of the period. T h e
yen declined e v e n m o r e against the mark o n that
and subsequent d a y s because the Bank of J a p a n
was not e x p e c t e d to follow actions by the o t h e r
central b a n k s to raise official interest rates. A s
the yen w e a k e n e d , the dollar m o v e d to its period
high against the yen of ¥ 1 3 7 . 2 5 on S e p t e m b e r 2.
Throughout m u c h of S e p t e m b e r , the dollar
traded within a relatively n a r r o w range. M a r k e t
participants expressed r e n e w e d confidence in the
official c o m m i t m e n t s to p r o m o t e e x c h a n g e rate
stability and perceived that m o n e t a r y authorities
would not welcome any f u r t h e r rise of the dollar.
M a n y of the f a c t o r s that had contributed to the
upward pressure during late s u m m e r also had
b e c o m e much less evident. In particular, a n e w
round of statistics suggested that U . S . economic
growth was slowing to a m o r e sustainable pace.
While that d e v e l o p m e n t w a s viewed as generally
favorable for long-run e c o n o m i c p r o s p e c t s , it
weakened some of the short-term d e m a n d for
dollars by contributing to e x p e c t a t i o n s that upward p r e s s u r e on dollar interest rates w a s likely
to subside. T h e financial m a r k e t s took special
note of the S e p t e m b e r 2 release of U . S . n o n f a r m
payroll figures f o r August that showed slower
employment growth than the market had previously anticipated. Inflation c o n c e r n s w e r e also
allayed by the outlook f o r declining oil prices and
60 Federal Reserve Bulletin • Februrarv 1989
2. Drawings and repayments by foreign central banks 1
Millions of dollars; drawings or repayments ( - )
Central bank
Amount of
facility
Outstanding as
of July 31,
1988
August
September
October
OutstandingI as
of October 31,
1988
Under reciprocal currency arrangements with the Federal Reserve System
Bank of Mexico
Bank of Mexico
300.0
National Bank of Yugoslavia
Central Bank of Brazil
Central Bank of the Argentine Republic
50.0
250.0
265.02
0
700.0
700.0
-700.0
0
Under reciprocal currency arrangements with the U.S. Treasury
0
300.0
-300.0
0
Under special swap arrangements with the U.S. Treasury
33.8
232.5
0
-232.5
-33.*
0
1. Data are on a value-date basis.
2. Arrangement was in effect as of October 20, 1988.
the report of unchanged average earnings during
August.
As the u p w a r d p r e s s u r e s on the dollar eased
and as m a r k e t participants perceived prospects
for greater exchange rate stability, investors
w e r e increasingly attracted to certain relatively
high-yielding currencies, such as the Canadian
dollar. The Canadian dollar also benefited f r o m
early public opinion polls in advance of the
Canadian elections showing strong support f o r
the incumbent Conservative party that favored
the e n a c t m e n t of the U . S . - C a n a d i a n free trade
agreement. T h e U . S . dollar declined steadily
against the Canadian dollar f r o m early September through mid-October.
Although the positive outlook that had prevailed during the s u m m e r tended to erode during
September, there w e r e episodes of upward pressure on the dollar. One occasion followed the
S e p t e m b e r 14 a n n o u n c e m e n t of a U . S . trade
deficit for July that was smaller than expected
and that provided r e a s s u r a n c e to the market that
the correction of global imbalances was continuing. A n o t h e r occurred following the release of a
statement by the G r o u p of Seven (G-7) finance
ministers and central b a n k governors attending a
meeting in Berlin over the weekend of September
24. Although that statement reaffirmed the basic
objectives of previous commitments regarding
cooperative efforts, including exchange rate stability, it contained no precise reference to dollar
e x c h a n g e rates. S o m e market participants, therefore, concluded that the G-7 was prepared to
tolerate f u r t h e r dollar appreciation.
During these episodes, t h e dollar m o v e d u p
smartly, and the U . S . authorities intervened to
resist these pressures. B e t w e e n S e p t e m b e r 14
and S e p t e m b e r 22, the Trading D e s k at the
Federal R e s e r v e Bank of N e w York sold $230
million against m a r k s . O n S e p t e m b e r 26, the first
business day after the G-7 meeting, the Desk sold
an additional $100 million against m a r k s , and a
substantial n u m b e r of other central banks intervened forcefully to sell dollars at the same time.
T h e visible, c o n c e r t e d intervention operations
provided a clear signal to the market that the
G-7 had not changed its exchange market objectives.
At the end of S e p t e m b e r , market participants
noted that there was significant concerted intervention to sell dollars against the m a r k w h e n the
dollar, at about DM1.89, w a s still well below the
levels reached the previous m o n t h . F u r t h e r m o r e ,
subsequent official s t a t e m e n t s f r o m various
sources pointed to the e c o n o m i c risks of a f u r t h e r
dollar rise and gave n e w weight to the S e p t e m b e r
24 statement.
During O c t o b e r , m a r k e t sentiment toward the
dollar turned negative. F o r one thing, the prospect of u p w a r d p r e s s u r e on short-term dollar
interest rates a p p e a r e d to diminish f u r t h e r . Release of a series of e c o n o m i c reports indicated
that U . S . economic activity, while still showing
strength, was moderating e v e n m o r e . N e w s of
increases in U . S . e m p l o y m e n t during S e p t e m b e r
that were smaller than had b e e n f o r e c a s t (although they w e r e later revised u p w a r d ) and
preliminary third-quarter U . S . G N P figures rein-
Treasury and Federal Reserve Foreign Exchange Operations
forced the view that a f u r t h e r tightening of U . S .
m o n e t a r y policy was less likely in the near term.
M o r e o v e r , market participants, having seen
repeated evidence of coordinated central bank
sales of dollars during the summer and early
a u t u m n , remained convinced that the m o n e t a r y
authorities would firmly resist any f u r t h e r substantial rise of the dollar.
In addition, c o n c e r n s w e r e aroused about the
p a c e of a d j u s t m e n t of global imbalances by the
O c t o b e r 13 release of U . S . trade data for August
showing a widening of the trade deficit to $12.2
billion. Despite c o m m e n t s of U . S . officials cautioning that wide fluctuations in monthly trade
data w e r e of little significance and noting the
clear trend of improvement in the U . S . trade
a c c o u n t s o v e r a longer period, the market continued to f o c u s closely on these monthly trade
releases. Participants expressed growing concern
about the sustainability of U . S . progress in reducing its external deficit.
T h e dollar's decline against the yen during
O c t o b e r w a s particularly noteworthy. Over the
course of the m o n t h , the dollar moved approximately 6 p e r c e n t lower against the J a p a n e s e yen.
Widespread reports circulated of substantial
sales of dollars against yen by J a p a n e s e institutional investors and by U . S . investment banks
seeking to hedge an increasing proportion of their
dollar portfolios in anticipation of f u r t h e r dollar
declines. F u r t h e r m o r e , the y e n ' s
strength
seemed to reflect a relatively favorable market
a s s e s s m e n t of J a p a n ' s progress in adapting to the
rise in its currency since 1985. Selling pressure
intensified as the dollar moved below important
technical and psychological levels, reaching the
period lows of about ¥ 1 2 4 . 5 0 against the yen and
DM1.76 against the mark at one point on O c t o b e r
31. U n d e r these circumstances, the U . S . authorities entered the market to buy dollars for the first
and only time in the period, purchasing on that
day $200 million against yen to support the
dollar.
As the period ended, the dollar was underpinned by a widely held market view that the
authorities would act to prevent any sharp fall in
the dollar, at least through early N o v e m b e r , in
a d v a n c e of the U . S . presidential election. In
addition, interest rate differentials favoring the
dollar widened slightly as Japanese money mar-
61
ket rates eased by a m o d e s t a m o u n t . H o w e v e r ,
market sentiment toward the dollar remained
distinctly negative as skepticism d e e p e n e d that
the policy initiatives needed to k e e p the international a d j u s t m e n t p r o c e s s intact, both here
and a b r o a d , would be u n d e r t a k e n promptly
enough.
The dollar closed the three-month period at
¥125.50 against the yen, barely AVi percent
above its record low of ¥ 1 2 0 . 2 0 recorded on
January 4, 1988. Against the m a r k , the dollar
closed the reporting period at around DM1.79,
more than 14^2 p e r c e n t a b o v e its record low of
DM1.5615 in J a n u a r y . On a trade-weighted basis,
as measured by the index of the F e d e r a l R e s e r v e
Board staff, the dollar declined AVi percent in
terms of the other G r o u p of T e n currencies
during the period.
The U . S . m o n e t a r y authorities sold a total of
$2,136 million against G e r m a n m a r k s and purchased a total of $200 million against J a p a n e s e
yen during the three-month period. T h e Federal
R e s e r v e and the T r e a s u r y ' s E x c h a n g e Stabilization F u n d ( E S F ) participated equally in the financing of all intervention operations.
During the period, there w e r e several other
foreign currency transactions of the E S F and the
Federal R e s e r v e .
• On August 1, the Bank of M e x i c o activated
its reciprocal a r r a n g e m e n t s with the Federal Reserve and the U . S . T r e a s u r y , drawing $700 million and $300 million respectively. On S e p t e m b e r
15, both a m o u n t s w e r e fully repaid.
• On August 26, the Central Bank of Brazil
repaid an outstanding drawing of $232.5 million
on a short-term E S F financing facility of $250
million. T h e remaining $17.5 million was not
drawn during the period.
• The National Bank of Yugoslavia repaid
$17.2 million to the U . S . T r e a s u r y on S e p t e m b e r
26 and $16.6 million on S e p t e m b e r 30, thereby
liquidating the $50 million E S F facility. This
facility was provided to Yugoslavia in J u n e along
with a $200 million facility by the Bank for
International Settlements, acting for a n u m b e r of
central b a n k s .
• On October 20, the U . S . T r e a s u r y through
the E S F , together with a n u m b e r of other monetary institutions, agreed to establish a facility to
provide up to $500 million in short-term financing
62 Federal Reserve Bulletin • Februrarv 1989
3. Net profits or losses ( - ) on U.S. Treasury and
Federal Reserve current foreign exchange
operations 1
Millions of dollars
Period
August 1, 1988 to October 31, 1988
Valuation profits and losses on
outstanding assets and liabilities as
of October 31, 1988
Federal
Reserve
0
1,536.9
U.S.
Treasury
Exchange
Stabilization
Fund
0
1,258.9
1. Data are on a value-date basis.
to Argentina. T h e E S F ' s share w a s $265 million.
N o drawings w e r e m a d e as of October 31.
As in previous periods, the U . S . authorities
acquired foreign currencies through sales of dollars to other official institutions and through
receipt of principal r e p a y m e n t s and interest payments received under the Supplementary Financing Facility of the International M o n e t a r y F u n d .
Such foreign currency acquisitions totaled
$2,103.4 million equivalent.
As of the end of O c t o b e r , cumulative bookkeeping or valuation gains o n outstanding foreign
currency balances w e r e $1,536.9 million f o r the
Federal R e s e r v e and $1,258.9 million f o r the
E S F . T h e s e valuation gains r e p r e s e n t the increase in the dollar value of outstanding currency
assets valued at exchange rates at the end of the
period, c o m p a r e d with the r a t e s prevailing at the
time the foreign currencies w e r e acquired.
T h e Federal R e s e r v e and t h e E S F regularly
invest their foreign currency balances in a variety
of instruments that yield market-related rates of
return and that h a v e a high degree of quality and
liquidity. A portion of t h e b a l a n c e s is invested in
securities issued by foreign g o v e r n m e n t s . A s of
the end of O c t o b e r , holdings of such securities by
the Federal R e s e r v e a m o u n t e d to $2,540.1 million equivalent, and holdings by the Treasury
amounted to the equivalent of $2,816.9 million.
63
Industrial Production
Released for publication December 14
Industrial production increased 0.5 percent in
N o v e m b e r after having risen a revised 0.5 percent in O c t o b e r and 0.1 percent in September. In
N o v e m b e r , the output of materials, business
equipment (other than commercial equipment),
and construction supplies led the advance. At
139.9 percent of the 1977 average, the total index
in N o v e m b e r was 5.1 percent higher than it was
a year earlier.
In market groups, output of c o n s u m e r g o o d s
increased 0.3 percent in N o v e m b e r as production
of light trucks and nondurable g o o d s posted
gains. H o w e v e r , auto assemblies, at an annual
rate of 7.6 million units, w e r e d o w n slightly f r o m
October. M o r e o v e r , output of h o m e g o o d s , such
as appliances, declined in N o v e m b e r a f t e r having
Ratio scale, 1977=100
1982
1984
1986
1988
All series are seasonally adjusted. Latest figures: November.
1982
1984
1986
1988
64 Federal Reserve Bulletin • Februrarv 1989
1977 = 100
Percentage change from preceding month
1988
1988
Group
Oct.
Nov.
July
Aug.
Sept.
Oct.
Nov.
Percentage
change,
Nov. 1987
to Nov.
1988
Major market groups
Total industrial production
139.3
139.9
1.1
.3
.1
.5
.5
5.1
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and space —
Intermediate products..
Construction supplies
Materials
148.2
146.7
136.4
129.1
139.2
160.7
184.4
153.8
139.6
127.1
148.7
146.9
136.8
128.9
139.7
161.3
184.3
154.8
140.7
128.0
.8
.7
.9
.0
1.2
.8
.2
1.0
.6
1.6
.5
.5
.6
.3
.7
.5
.0
.5
-.2
.1
.1
.0
-.1
.5
-.3
.4
-.2
.5
.4
.0
.5
.6
1.2
2.2
.9
.0
-.1
.5
.7
.5
.3
.2
.3
-.1
.4
.4
-.1
.6
.8
.7
5.4
5.5
5.7
4.1
6.3
8.8
-2.3
5.1
4.8
4.5
.6
.6
.6
-.9
.6
.5
.5
.4
.6
.4
5.9
6.4
5.1
-1.4
.7
Major industry groups
146.0
145.4
146.8
103.2
114.0
145.3
144.7
146.2
102.6
113.5
Manufacturing
Durable
Nondurable
Mining
Utilities
1.1
.9
1.4
1.3
1.0
.3
.2
.3
-.5
2.9
.3
.4
.1
-.2
-4.2
NOTE. Indexes are seasonally adjusted.
risen sharply in October. Total production of
business equipment advanced 0.4 percent in N o v e m b e r as all m a j o r components other than commercial equipment continued to advance rapidly.
Output of commercial equipment, which includes
c o m p u t e r s , decreased for the third successive
m o n t h . Gains in materials production w e r e wide-
Total industrial production—Revisions
Estimates as shown last month and current estimates
Index (1977=100)
Month
Percentage change
from previous
months
Previous
August
Sept
Oct
Nov
Current
Previous
Current
138.4
138.7
139.2
138.5
138.6
139.3
139.9
.3
.2
.4
.3
.1
.5
.5
spread in N o v e m b e r ; the most notable a d v a n c e s
occurred in the output of parts for c o n s u m e r
durables, basic metals, chemicals, and coal.
In industry groups, manufacturing o u t p u t increased 0.5 percent as most m a j o r industries
posted gains; the only significant decline w a s in
petroleum refining. Mining output rose 0.6 percent, and production at utilities increased 0.4
percent.
Capacity utilization in total industry for N o vember 1988 was estimated at 84.2 p e r c e n t , up
0.2 percentage point f r o m O c t o b e r . In manufacturing, capacity utilization f o r N o v e m b e r was
84.5 percent, 0.2 percentage point higher than it
was in October, and 2.3 percentage points higher
than it was a year earlier. Detailed d a t a f o r
capacity utilization are shown separately in " C a pacity Utilization," Federal R e s e r v e monthly
statistical release, G.3.
65
Announcements
INCREASE IN AMOUNT TO WHICH
RESERVE REQUIREMENT
WILL
APPLY
HEARING SCHEDULED
TO RESCIND
RULE
T h e Federal Reserve Board announced on Dec e m b e r 6, 1988, an increase f r o m $40.5 million to
$41.5 million in the net transaction accounts to
which a 3 percent reserve requirement will apply
in 1989. T h e Board also increased the amount of
reservable liabilities that are exempt f r o m reserves f r o m $3.2 million to $3.4 million of total
reservable liabilities.
Additionally, the Board increased the deposit
cutoff level, which separates weekly reporting
institutions f r o m quarterly reporters, f r o m $40.0
million to $42.1 million. Institutions with total
reservable liabilities below the exemption level
of $3.4 million are excused f r o m reporting even
on a quarterly basis if their deposits can be
estimated f r o m other sources.
T h e s e a d j u s t m e n t s took effect beginning Dec e m b e r 20, 1988.
The Federal R e s e r v e Board scheduled an informal hearing for F e b r u a r y 3, 1989, on a recent
proposal to rescind the B o a r d ' s current rule that
permits state b a n k s in a holding c o m p a n y to
acquire all of the shares of a c o m p a n y engaged in
nonbanking activities that the state bank is permitted to conduct directly.
PROPOSED
ACTION
T h e Federal Reserve Board issued for public
c o m m e n t on D e c e m b e r 22, 1988, a proposal to
amend its Regulation Z (Truth in Lending) to
implement the Fair Credit and Charge Card Disclosure Act. C o m m e n t is requested by F e b r u a r y
21, 1989.
CHANGES
IN BOARD
ON
PROPOSAL
STAFF
James M c A f e e , Associate Secretary in the Office
of the Secretary, resigned, effective January 23,
1989.
Jennifer J. J o h n s o n has been appointed to the
B o a r d ' s staff as Associate Secretary. M s . Johnson was Vice President and General Counsel of
Shawmut Bank and Secretary of S h a w m u t Corporation. She received an A . B . degree f r o m
Mount Holyoke College and a J . D . degree f r o m
the University of Pennsylvania.
SYSTEM
STATE
MEMBERSHIP:
BANKS
ADMISSION
OF
The following state bank was admitted to membership in the Federal R e s e r v e System f o r the
period D e c e m b e r 1 through D e c e m b e r 31, 1988.
Virginia
Stephens City
M a r a t h o n Bank
66
Record of Policy Actions
of the Federal Open Market Committee
MEETING
HELD
1. Domestic
ON NOVEMBER
Policy
1, 1988
Directive
The information reviewed at this meeting indicated that the expansion in economic activity had
moderated f r o m the vigorous pace evident earlier
in the year. Private domestic final demand grew
at an appreciably slower pace in the third quarter
than in the first half of the year; and other recent
statistics, including data on labor market activity, also suggested some slowing in the rate of
economic expansion. Information on wage and
price developments gave no clear evidence on
balance of any change in underlying inflation
trends.
Total nonfarm payroll employment increased
considerably in the third quarter, but the gains
were less than those registered in the first half. In
August and September, hiring in all major sectors
except government moderated, and employment
in manufacturing declined. Despite this broadbased slowing in the growth of private payrolls,
the civilian u n e m p l o y m e n t rate fell to 5.4 percent
in September and has remained in a narrow range
around 5VI percent since early spring.
Industrial production increased only slightly
on balance in August and September after a
strong surge earlier in the summer. Output of
business equipment continued to advance fairly
rapidly while production of consumer goods was
sluggish. Total industrial capacity utilization declined slightly in September but was still more
than Vz percent a b o v e the relatively high secondquarter level.
Overall c o n s u m e r spending in constant dollar
terms increased substantially on average in the
third quarter, as outlays for services and nondurable goods strengthened while purchases of durables were little changed. H o w e v e r , retail sales
weakened in August and S e p t e m b e r , owing
partly to reduced sales of m o t o r vehicles.
Indicators of business capital spending in the
third quarter suggested a considerably reduced
rate of expansion c o m p a r e d with the first half of
the year. G r o w t h of real outlays for business
equipment slowed sharply, as investment in information-processing equipment
decelerated.
Nonresidential construction activity was weak in
the first two m o n t h s of the quarter, with oil
drilling and expenditures on commercial and
industrial structures other than office buildings
contracting further. Inventory investment in the
manufacturing and wholesale sectors picked up
in July and August, but stocks accumulated
about in line with the growth of sales. Retail
inventories, reflecting little f u r t h e r change in
stocks at auto dealers after a sharp rise in the
second quarter, increased m u c h less rapidly.
Housing construction had b e e n flat in recent
months; the third-quarter p a c e of starts of singlefamily h o m e s was unchanged f r o m that of the
previous quarter while multifamily starts edged
down.
Preliminary data for t h e nominal U . S . merchandise trade deficit in August showed a larger
deficit than in July. H o w e v e r , the average f o r
July and August w a s slightly lower than the
second-quartet rate as exports increased m o r e
than imports. M o s t of the rise in exports was in
nonagricultural goods, particularly capital goods
and c o n s u m e r durables; increased imports of
consumer goods and f o o d outweighed a slight
reduction in the value of p u r c h a s e s of imported
oil. E c o n o m i c activity in the m a j o r foreign industrial economies appeared to have rebounded
somewhat in the third quarter, following a pronounced slackening in the second quarter.
Reflecting a decline in gasoline prices at the
refinery level, p r o d u c e r prices of finished goods
registered a smaller a d v a n c e in S e p t e m b e r than
67
in August; h o w e v e r , f o r the third quarter as a
whole, these prices rose m o r e rapidly than during
the first half of the year. At the crude materials
level, p r o d u c e r f o o d prices continued to rise
sharply. C o n s u m e r prices increased at a somewhat slower rate in September as declines in
energy prices outweighed the passthrough to the
retail level of higher wholesale f o o d prices. Excluding f o o d and energy items, c o n s u m e r prices
on a year-over-year basis continued to rise at
about the 4l/2 p e r c e n t annual rate evident since
late 1987. M o s t m e a s u r e s of labor costs indicated
some slowing in the rate of increase over the
s u m m e r m o n t h s , after a sharp u p w a r d m o v e m e n t
in the second half of 1987 and early 1988.
In the foreign exchange markets, the tradeweighted value of the dollar in terms of the other
G-10 currencies had declined f r o m its high level
of last s u m m e r by the time of the previous
C o m m i t t e e meeting on S e p t e m b e r 20. Following
the meeting, the dollar initially fluctuated in a
n a r r o w range but later declined appreciably in
r e s p o n s e to indications of more moderate U . S .
e c o n o m i c growth and to information suggesting a
slower U . S . external a d j u s t m e n t than the markets had anticipated earlier.
At its meeting on S e p t e m b e r 20, the Committee a d o p t e d a directive calling for no change in
the degree of p r e s s u r e on reserve positions.
T h e s e reserve conditions were expected to be
consistent with growth of M2 and M3 at annual
rates of about 3 and 5 percent respectively over
the period f r o m August to D e c e m b e r . The m e m bers agreed that s o m e w h a t greater reserve restraint would, or slightly lesser reserve restraint
might, be acceptable depending on indications of
inflationary p r e s s u r e s , the strength of the business expansion, the behavior of the monetary
aggregates, and developments in foreign exchange and domestic financial markets.
A d j u s t m e n t plus seasonal borrowing fluctuated
over a sizable range during the intermeeting
period, averaging a b o u t $630 million in the t w o
complete r e s e r v e maintenance periods since the
S e p t e m b e r meeting. T h e federal f u n d s rate rose
s o m e w h a t , with f u n d s trading around SlA percent
and sometimes higher o v e r most of the intermeeting period. M o s t other short-term interest
rates edged higher, p e r h a p s reflecting the firmer
federal f u n d s rate as well as increased supplies of
T r e a s u r y bills and C D s . Interest r a t e s in longterm debt m a r k e t s declined a little f u r t h e r as
indications of m o r e m o d e r a t e e c o n o m i c expansion and w e a k energy prices apparently r e d u c e d
concerns about inflation and b u o y e d expectations that m o n e y m a r k e t conditions would not b e
tightened substantially f u r t h e r . L o w e r b o n d
yields apparently contributed to higher equity
prices; some b r o a d indexes of stock prices had
risen about 3 p e r c e n t since t h e S e p t e m b e r meeting.
E x p a n s i o n of M 2 slowed f u r t h e r in S e p t e m b e r ,
and preliminary d a t a suggested that growth remained quite w e a k in O c t o b e r as earlier increases in m a r k e t interest rates and opportunity
costs continued to d a m p d e m a n d s f o r liquid
deposit c o m p o n e n t s . By contrast, a f t e r slow
growth in August and S e p t e m b e r , M 3 a p p e a r e d
to have strengthened s o m e w h a t in O c t o b e r , in
association with a resumption in growth of b a n k
credit. A f t e r registering relatively strong expansion in J u n e and July, M l had increased only
slightly on balance in recent m o n t h s , with total
transactions deposits falling marginally.
T h e staff projection p r e p a r e d f o r this meeting
suggested that growth of the n o n f a r m sector of
the e c o n o m y in the current quarter might b e near
the reduced p a c e of t h e third q u a r t e r and that
expansion in 1989 w a s likely to remain, o n balance, well below the p a c e of the first half of 1988.
T h e effects of t h e drought would continue to be
reflected in an u n e v e n quarterly p a t t e r n of
growth of G N P , notably through the first half of
next year. T o the extent that e x p a n s i o n of final
d e m a n d at a p a c e that could f o s t e r higher inflation was not a c c o m m o d a t e d by m o n e t a r y policy,
pressures would b e generated in financial markets that would restrain domestic spending. T h e
staff projection, which a s s u m e d a slightly restrictive fiscal policy, continued to indicate relatively
sluggish growth of c o n s u m e r spending, sharply
reduced expansion of business fixed investment
f r o m the p a c e in the first half of 1988, and
restrained housing activity. A s in earlier projections, the external sector w a s e x p e c t e d to contribute importantly to domestic
economic
growth. T h e staff n o w anticipated some marginal
easing in aggregate price increases in 1989, in
large part b e c a u s e recent declines in c r u d e oil
prices p o r t e n d e d lower energy prices m o r e gen-
68 Federal Reserve Bulletin • Februrarv 1989
erally. H o w e v e r , any decline in inflation would
b e limited, largely b e c a u s e of continuing pressures stemming f r o m still strong d e m a n d s pressing against reduced margins of unutilized labor
and other production resources.
In the C o m m i t t e e ' s discussion of the economic
situation and outlook, m e m b e r s welcomed the
apparent moderation in the expansion of economic activity toward a p a c e that might p r o v e to
b e m o r e sustainable and consistent with progress
over time toward price stability. Continuing expansion, but at a m o r e moderate pace than that
experienced in the first half of 1988, was viewed
as a reasonable expectation, partly in light of the
m o n e t a r y policy tightening that already had been
implemented this year. T h e r e was no evidence of
emerging imbalances in key sectors of the econo m y that might bring the expansion to an end,
although the outlook remained clouded by the
nation's outsized trade and federal budget deficits and the financial problems or debt e x p o s u r e
of a n u m b e r of depository institutions and business firms. In the view of many of the m e m b e r s ,
the risks of deviations f r o m current expectations
continued to b e in the direction of greater inflationary p r e s s u r e s . O t h e r m e m b e r s , while concerned about the potential f o r inflation, felt that
the e c o n o m y already appeared to be on a track
consistent with no pickup in inflation and perhaps some i m p r o v e m e n t next year.
In the course of the C o m m i t t e e ' s discussion,
m e m b e r s noted that despite signs of some slowing in recent m o n t h s , the expansion in business
activity retained appreciable m o m e n t u m as evid e n c e d , for example, by order backlogs, ongoing
strength in business capital spending, and noteworthy i m p r o v e m e n t in the agricultural sector.
F u r t h e r i m p r o v e m e n t in the nation's trade balance also appeared likely, and while the gains
might be m o r e limited than in recent quarters,
they would help to sustain domestic manufacturing activity. C o n s u m e r spending might be
supported to some extent by gains in real inc o m e s stemming f r o m r e d u c e d energy prices. By
most m e a s u r e s , business inventories appeared to
be relatively lean and, assuming continued moderate growth in overall final d e m a n d , f u r t h e r
inventory accumulation might provide a m o d e s t
fillip to the expansion over the year a h e a d . O n
the other h a n d , m e m b e r s also took note of the
relatively sluggish p e r f o r m a n c e of retail sales
recently, notably of durable g o o d s , and the continuing w e a k n e s s of c o n s t r u c t i o n activity, including housing. A review of local business conditions continued to indicate an u n e v e n p a t t e r n of
regional activity, but on balance local developments tended to confirm b r o a d e r indications of
f u r t h e r , though r e d u c e d , growth in overall business activity.
With regard to the outlook f o r inflation, a
critical issue in the view of m a n y m e m b e r s w a s
w h e t h e r overall d e m a n d conditions in the economy would b e consistent with containing or
reducing inflation. A n u m b e r of m e m b e r s expressed c o n c e r n that underlying p r e s s u r e s on
resources remained strong a n d that the possibility of greater inflation constituted the m a j o r
current threat to sustained e c o n o m i c expansion.
One o b s e r v e d that the uncertainties in the outlook for inflation w e r e c o m p o u n d e d by the prospect that, with production r e s o u r c e s at or close
to full capacity, even small differences in d e m a n d
pressures could have a disproportionate effect on
the actual rate of inflation next year. H o w e v e r ,
some m e m b e r s c o m m e n t e d that, on the whole,
price and wage d e v e l o p m e n t s w e r e m o r e favorable than might h a v e b e e n anticipated at current
rates of capacity utilization. R e c e n t reports f r o m
around the nation suggested that inflation w a s
not worsening in regional m a r k e t s , including
parts of the country w h e r e business activity
remained relatively r o b u s t . I n d e e d , there w e r e
indications that prices of s o m e business p r o d u c t s
previously in short supply n o w w e r e showing
some t e n d e n c y to level off, and there was little or
no evidence of f a s t e r increases in wages. Moreover, recent d e v e l o p m e n t s in financial m a r k e t s
suggested some lessening of inflationary expectations, although the latter remained volatile.
At its meeting in late J u n e , the C o m m i t t e e
reviewed the basic policy objectives that it had
set for growth of the m o n e t a r y and debt aggregates in 1988, and it established tentative objectives f o r expansion of t h o s e aggregates in 1989.
F o r the period f r o m the f o u r t h quarter of 1987 to
the f o u r t h quarter of 1988, the C o m m i t t e e reaffirmed the ranges of 4 to 8 p e r c e n t set in F e b r u ary f o r growth of b o t h M 2 and M3. T h e monitoring range f o r e x p a n s i o n of total domestic
nonfinancial debt in 1988 w a s left unchanged
Record of Policy Actions of the Federal Open Market Committee
f r o m its F e b r u a r y specification of 7 to 11 percent.
F o r the year to date, M2 had grown at an annual
rate s o m e w h a t below, and M3 at a rate s o m e w h a t
a b o v e , the midpoints of their annual ranges.
E x p a n s i o n of total domestic nonfinancial debt
a p p e a r e d to h a v e m o d e r a t e d to a pace marginally
below the midpoint of its range. F o r 1989 the
Committee agreed on tentative reductions to
ranges of 3 to 7 p e r c e n t f o r M2 and V/i to IV2
p e r c e n t f o r M3. T h e monitoring range for growth
of total domestic nonfinancial debt was lowered
to 6I/2 to IOV2 p e r c e n t f o r 1989. It w a s understood
that all the ranges for next year w e r e provisional
and that they would b e reviewed in F e b r u a r y
1989 in the light of intervening developments.
With respect to M l , the Committee reaffirmed in
J u n e its earlier decision not to set a specific target
f o r growth in 1988 and it also decided not to
establish a tentative range for 1989.
69
of M2 and M3 w a s anticipated f r o m the very
sluggish p e r f o r m a n c e of S e p t e m b e r and O c t o b e r ,
but f u r t h e r a d j u s t m e n t s of asset portfolios to
previous increases in interest r a t e s and opportunity costs w e r e likely to limit the rise. In addition, reductions in c o m p e n s a t i n g balances in
r e s p o n s e to earlier increases in m a r k e t interest
rates w e r e e x p e c t e d to b e m o r e p r o n o u n c e d late
in the year, though such a d j u s t m e n t s would have
their m a j o r impact on M l g r o w t h . C o n c u r r e n t l y ,
expansion of M3 a n d , to a lesser degree, M2
might be b u t t r e s s e d to s o m e extent as b a n k s
u n d e r t o o k to secure f u n d s to underwrite a perhaps substantial portion of the initial cash needed
to finance the r e c e n t surge in merger and b u y o u t
activities. Although m e m b e r s o b s e r v e d that any
easing of r e s e r v e conditions to stimulate monetary growth would not b e desirable at this point,
some indicated that they would b e c o m e increasingly c o n c e r n e d if very weak m o n e t a r y g r o w t h
w e r e to persist in the context of sluggish expansion in economic activity.
In the C o m m i t t e e ' s discussion of policy implementation f o r the period immediately ahead, the
m e m b e r s generally agreed that the current relatively balanced p e r f o r m a n c e of the e c o n o m y and
the uncertainties surrounding the outlook argued
f o r an unchanged policy at this point. S o m e
c o m m e n t e d that the apparent strength of underlying inflationary p r e s s u r e s might require f u r t h e r
m o n e t a r y restraint later, but for now they favored or could accept a steady policy course.
Other m e m b e r s w e r e m o r e persuaded that, in the
context of the recent evidence of slower economic growth, m o n e t a r y policy already appeared
to b e on a c o u r s e that would p r o m o t e progress in
reducing inflation. F r o m the perspective of the
growth of the m o n e t a r y aggregates and reserve
as well as interest rate developments, monetary
policy had b e e n fairly restrictive for some
m o n t h s and f u r t h e r restraint needed to be app r o a c h e d with s o m e caution. At the same time,
m e m b e r s stressed the continuing need to sustain
the S y s t e m ' s c o m m i t m e n t to its long-run objective of controlling inflation, including the desirability of making clear that the current rate of
inflation w a s unacceptable.
With regard to possible a d j u s t m e n t s in the
degree of r e s e r v e p r e s s u r e in the intermeeting
period, a majority of the m e m b e r s believed that
operations should b e a d j u s t e d m o r e readily
toward f u r t h e r tightening than t o w a r d any easing. S o m e indicated that they viewed the incorporation of such an understanding as a key
element of an acceptable directive, given their
assessment of the inflationary risks in the economic outlook. M o s t of the o t h e r m e m b e r s indicated that they could accept such a directive,
although they w e r e less inclined than they had
been previously to bias it t o w a r d f u r t h e r restraint; in this view, the direction of any potential
adjustment in policy implementation w a s less
certain than earlier, given the recent performance of the e c o n o m y and b e h a v i o r of the
monetary aggregates. O n e m e m b e r felt that the
risks of some f u r t h e r w e a k n e s s in the e c o n o m y
were sufficiently strong that a continued bias
toward possible tightening during the intermeeting period was not acceptable.
In the c o u r s e of the C o m m i t t e e ' s discussion,
the m e m b e r s took a c c o u n t of a staff analysis that
concluded that the maintenance of unchanged
reserve conditions was likely to be associated
with relatively slow monetary growth over the
balance of t h e year. S o m e pickup in the growth
At the conclusion of t h e C o m m i t t e e ' s discussion, all but o n e m e m b e r indicated that they
favored or could accept a directive that called for
maintaining the current degree of p r e s s u r e on
reserve conditions and that provided for remaining especially alert to potential d e v e l o p m e n t s
70 Federal Reserve Bulletin • Februrarv 1989
that might require s o m e firming during the intermeeting period. Accordingly, s o m e w h a t greater
r e s e r v e restraint would b e acceptable, or slightly
lesser reserve restraint might be acceptable, over
the intermeeting period depending on indications
of inflationary p r e s s u r e s , the strength of the
business expansion, the behavior of the monetary aggregates, and developments in foreign
exchange and domestic financial markets. T h e
reserve conditions contemplated by the Committee w e r e e x p e c t e d to b e consistent with growth
of M2 and M 3 at annual rates of around 2Vi
p e r c e n t and 6 p e r c e n t respectively over the
t h r e e - m o n t h period f r o m S e p t e m b e r to D e c e m ber. T h e intermeeting range for the federal f u n d s
rate, which p r o v i d e s one mechanism f o r initiating consultation of the Committee w h e n its
boundaries are persistently exceeded, was left
unchanged at 6 to 10 p e r c e n t .
At the conclusion of the meeting, the following
domestic policy directive w a s issued to the F e d eral R e s e r v e B a n k of N e w York:
The information reviewed at this meeting indicates
that the expansion in economic activity has moderated
from the vigorous pace earlier in the year. Total
nonfarm payroll employment grew considerably in the
third quarter but the gains were less than those registered in the first half of the year and employment in
manufacturing declined in August and September. The
civilian unemployment rate fell to 5.4 percent in September, remaining in the narrow range that has prevailed since early spring. Industrial production advanced only slightly on balance in August and
September after a sharp increase in July, while housing construction has been flat in recent months. Consumer spending increased substantially on average in
the third quarter but apparently slowed in recent
months. Indicators of business capital spending suggest considerably slower expansion in the third quarter, following very rapid growth in the first half of the
year. Preliminary data for the nominal U.S. merchandise trade deficit in August showed a greater deficit
than in July, but the average for July-August was
slightly less than the second-quarter rate. The latest
information on prices and wages suggests little if any
change from recent trends.
Interest rates in long-term debt markets have declined a little further since the Committee meeting on
September 20, while rates in short-term markets have
edged higher. The trade-weighted foreign exchange
value of the dollar in terms of the other G-10 currencies declined appreciably over the intermeeting period
from the high level of last summer.
Expansion of M2 has slowed considerably in recent
months; growth of M3 moderated in August and September but appears to have strengthened somewhat in
October. Thus far this year, M2 has grown at a rate
somewhat below, and M3 at a rate somewhat above,
the midpoint of the ranges established by the Committee for 1988. Ml has increased only slightly on balance
in recent months after registering relatively strong
growth in June and July. Expansion of total domestic
nonfinancial debt for the year thus far appears to be at
a pace somewhat below that in 1987.
The Federal Open Market Committee seeks monetary and financial conditions that will foster price
stability over time, promote growth in output on a
sustainable basis, and contribute to an improved pattern of international transactions. In furtherance of
these objectives, the Committee at its meeting in late
June reaffirmed the ranges it had established in February for growth of 4 to 8 percent for both M2 and M3,
measured from the fourth quarter of 1987 to the fourth
quarter of 1988. The monitoring range for growth of
total domestic nonfinancial debt was also maintained
at 7 to 11 percent for the year.
For 1989, the Committee agreed on tentative ranges
for monetary growth, measured from the fourth quarter of 1988 to the fourth quarter of 1989, of 3 to 7
percent for M2 and 31/2 to IVi percent for M3. The
Committee set the associated monitoring range for
growth of total domestic nonfinancial debt at 6V2 to
IOV2 percent. It was understood that all these ranges
were provisional and that they would be reviewed in
early 1989 in the light of intervening developments.
With respect to M l , the Committee reaffirmed its
decision in February not to establish a specific target
for 1988 and also decided not to set a tentative range
for 1989. The behavior of this aggregate will continue
to be evaluated in the light of movements in its
velocity, developments in the economy and financial
markets, and the nature of emerging price pressures.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. Taking account
of indications of inflationary pressures, the strength of the
business expansion, the behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets, somewhat greater reserve restraint
would, or slightly lesser reserve restraint might, be acceptable in the intermeeting period. The contemplated
reserve conditions are expected to be consistent with
growth of M2 and M3 over the period from September
through December at annual rates of about 2Vi and 6
percent, respectively. The Chairman may call for Committee consultation if it appears to the Manager for Domestic Operations that reserve conditions during the period before the next meeting are likely to be associated
with a federal funds rate persistently outside a range of 6
to 10 percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Black, Forrestal, Heller, Hoskins,
Record of Policy Actions of the Federal Open Market Committee
Johnson, Kelley, La Ware, and Parry. Vote against
this action: Ms. Seger.
Ms. Seger indicated that while an unchanged
policy w a s acceptable to her at this point, she did
not w a n t to bias the directive toward potential
tightening. In her view current indications of
slower e c o n o m i c growth and the lagged effects of
earlier policy tightening actions pointed to relatively slow expansion and reduced inflationary
pressures o v e r the year ahead. In these circumstances, she would not want to react m o r e
promptly or vigorously to indications of greater
strength or price p r e s s u r e s in the e c o n o m y ,
which might well prove to be t e m p o r a r y , than to
evidence of a weakening e c o n o m y .
In the period following the Committee meeting
on N o v e m b e r 1, it b e c a m e increasingly evident
in the implementation of policy that depository
institutions had reduced their d e m a n d s on the
discount w i n d o w ; in this period, a significantly
lower level of adjustment plus seasonal borrowing w a s being associated with a slightly higher
federal f u n d s rate than had been anticipated at
the time of the meeting. T o take account of this
change in behavior, but also in light of recent
information suggesting that the economic expansion retained considerable strength, the Manager
for D o m e s t i c Operations adjusted the reserve
paths to incorporate a lower level of borrowing,
with the expectation that federal f u n d s would
continue to t r a d e in the slightly higher range that
had prevailed recently. This adjustment in open
market operations w a s discussed with the Committee on N o v e m b e r 22, 1988. T h e m e m b e r s
agreed that the f a c t o r s relating to the apparent
change in the relationship b e t w e e n borrowing
and the federal f u n d s rate, and the b r o a d e r
implications for the conduct of open market
operations, would b e reviewed f u r t h e r at the
D e c e m b e r meeting.
2. Authorization
for
Domestic Open Market
g o v e r n m e n t and federal agency securities that is
specified in p a r a g r a p h 1(a) of the Authorization
for Domestic O p e n M a r k e t O p e r a t i o n s . T h e increase w a s effective f o r the intermeeting period
ending with the close of business o n D e c e m b e r
14, 1988.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Black, Forrestal, Heller, Hoskins,
Johnson, Kelley, LaWare, Parry, and Ms. Seger.
Votes against this action: None.
This action w a s t a k e n on the r e c o m m e n d a t i o n
of the M a n a g e r f o r D o m e s t i c O p e r a t i o n s . T h e
Manager had advised that the usual leeway of $6
billion f o r changes in S y s t e m A c c o u n t holdings
would probably not be sufficient o v e r the intermeeting period b e c a u s e of seasonal increases in
currency in circulation and in required reserves.
3. Change in Terms of Certain
to Calendar- Year Basis
Members
T h e C o m m i t t e e a m e n d e d its " R u l e s of Organizat i o n " to a d v a n c e f r o m M a r c h 1 to J a n u a r y 1 of
each year the start of t h e t e r m s of office of the
Federal R e s e r v e B a n k presidents w h o serve oneyear terms as C o m m i t t e e m e m b e r s or alternate
m e m b e r s . T h e change will b e effective starting
with the calendar year 1990. B e c a u s e the Committee's objectives f o r m o n e t a r y growth are established o n a calendar-year basis, the Committee believed that it would b e a p p r o p r i a t e to h a v e
all the m e m b e r s responsible f o r carrying out
those objectives during the y e a r participate in the
vote to establish t h e m at t h e start of the year.
T h e C o m m i t t e e e m p h a s i z e d that this change w a s
essentially p r o c e d u r a l in n a t u r e , given the continuity of its decisionmaking p r o c e s s . T h e Full
E m p l o y m e n t and Balanced G r o w t h Act of 1978
requires that the C o m m i t t e e ' s m o n e t a r y growth
objectives f o r the calendar y e a r b e transmitted to
the Congress b y F e b r u a r y 20 of e a c h year.
Operations
Effective N o v e m b e r 2, 1988, the Committee app r o v e d a t e m p o r a r y increase of $4 billion, to $10
billion, in the limit b e t w e e n Committee meetings
on changes in System A c c o u n t holdings of U . S .
71
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Black, Forrestal, Heller, Hoskins,
Johnson, Kelley, LaWare, Parry, and Ms. Seger.
Votes against this action: None.
73
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION
E
The Board of Governors is amending 12 C.F.R. Part
205, its Regulation E (Electronic Fund Transfers), to
reflect properly an amendment that was incorrectly
incorporated into the Code of Federal
Regulations.
Effective December 30, 1988, 12 C.F.R. Part 205 is
amended as follows:
Collection of Checks), with respect to the law of New
Jersey. The Expedited Funds Availability Act provides standards for determining whether State law
governing funds availability supersedes, or is preempted by Federal law. Under Regulation CC, the
Board will issue preemption determinations upon request.
Effective December 19, 1988, 12 C.F.R. Part 229 is
amended as follows:
1. The authority citation for 12 C.F.R. Part 205 continues to read as follows:
Part 229—[Amended]
Authority.
1693b).
Pub. L. 95-630, 92 Stat. 3730 (15 U.S.C.
1. The authority citation for Part 229 continues to read
as follows:
2. Section 205.6(c) is revised in its entirety to read as
follows:
Authority: Title VI of Pub. L. 100-86, 101 Stat. 522,
635, 12 U.S.C. 4001 et seq.
S e c t i o n 205.6—Liability of C o n s u m e r f o r
Unauthorized Transfers
2. Appendix F is amended by adding a preemption
determination for the state of New Jersey alphabetically to read as follows:
(c) Notice to financial institution. For purposes of this
section, notice to a financial institution is given when a
consumer takes such steps as are reasonably necessary to provide the financial institution with the pertinent information, whether or not any particular officer,
employee, or agent of the financial institution does in
fact receive the information. Notice may be given to
the financial institution, at the consumer's option, in
person, by telephone, or in writing. Notice in writing is
considered given at the time the consumer deposits the
notice in the mail or delivers the notice for transmission by any other usual means to the financial institution. Notice is also considered given when the financial institution becomes aware of circumstances that
lead to the reasonable belief that an unauthorized
electronic fund transfer involving the consumer's account has been or may be made.
Appendix F—Official Board Interpretations;
Preemption Determinations
FINAL RULE—AMENDMENT
TO REGULATION
CC
The Board of Governors is amending 12 C.F.R. Part
229, its Regulation CC (Availability of Funds and
a|c
$
sjt
$
sfc
N e w Jersey
Background
The Board has been requested, in accordance with
section 229.20(d) of Regulation CC (12 C.F.R. Part
229), to determine whether the Expedited Funds
Availability Act (the " A c t " ) and Subpart B (and in
connection therewith, Subpart A) of Regulation CC
preempt the provisions of New Jersey law concerning
disclosure of a bank's funds availability policy. (See
also the Board's preemption determination regarding
the Uniform Commercial Code, section 4-213(5), pertaining to availability of cash deposits.)
New Jersey does not have a law or regulation
establishing the maximum time periods within which
funds deposited by check or electronic payment must
be made available for withdrawal. New Jersey does,
however, have regulations concerning the disclosure
of a banking institution's availability policy (N.J.A.C.
§§ 3:1-15.1 et seq.).
74 Federal Reserve Bulletin • Februrarv 1989
Disclosures
New Jersey law requires every banking institution
(defined as any state or federally chartered commercial
bank, savings bank, or savings and loan association) to
provide written disclosure to all holders of and applicants for deposit accounts which describes the institution's funds availability policy. Institutions must also
disclose to their customers any significant changes to
their availability policy.
Regulation CC preempts state disclosure requirements concerning funds availability that relate to
"accounts" that are inconsistent with the federal
requirements. The state requirements are different
from, and therefore inconsistent with, the federal
disclosure rules. (Section 229.25(c)(2)). Thus, the New
Jersey statute (N.J.A.C. §§ 3:1-15.1 et seq.) is preempted by Regulation CC to the extent that these
disclosure provisions apply to "accounts" as defined
by Regulation CC. The New Jersey disclosure rules
would continue to apply to other "deposit accounts,"
as defined by New Jersey law, including money market accounts and saving accounts established by a
natural person for personal for family purposes, which
are not governed by the Regulation CC disclosure
requirements.
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
First B a n k S y s t e m , I n c .
Minneapolis, Minnesota
Order Approving the Merger of Bank Holding
Companies
First Bank System, Inc., Minneapolis, Minnesota, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.)
( " B H C Act"), has applied for the Board's approval
under section 3(a)(5) of the BHC Act to merge with
Suburban Bancorporation, Inc., Eden Prairie, Minnesota ("Suburban"), and thereby to acquire indirectly
Suburban National Bank, Eden Prairie, Minnesota
("Bank"). 1
1. In connection with the holding company merger, Suburban's
banking subsidiary, Suburban National Bank, Eden Prairie, Minnesota, will be merged into First Bank System's lead bank, First Bank
National Association, Minneapolis, Minnesota.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (53 Federal Register 43,037 (1988)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
First Bank System is the largest commercial banking
organization in Minnesota, controlling deposits of
$12.3 billion, representing 31 percent of total deposits
in commercial banking organizations in the state. 2
Suburban is the 46th largest commercial banking organization in Minnesota, controlling deposits of $73
million, representing less than one percent of total
deposits in commercial banking organizations in the
state. Upon consummation of this proposal, First
Bank System would control approximately $12.4 billion in deposits, representing 31.1 percent of total
deposits in commercial banking organizations in the
state. Consummation of the proposal would not increase significantly the concentration of banking resources in Minnesota.
First Bank System competes directly with Suburban
in the Minneapolis - St. Paul banking market. 3 First
Bank System is the largest commercial banking organization in the market, with deposits of $10.9 billion,
representing 44 percent of the total deposits in commercial banks in the market. Suburban is among the
smaller commercial banking organizations in the market, with $73 million in deposits, representing less than
one percent of the total deposits in commercial banks
in the market. Upon consummation of this proposal,
First Bank System would control $10.9 billion in
deposits, representing 44.3 percent of the total commercial banking deposits in the market. The Minneapolis - St. Paul banking market would be considered
highly concentrated with a four firm ratio of 74.8
percent. Consummation of this proposal would increase the Herfindahl-Hirschman Index ( " H H I " ) of
the market by 26 points to 2519.4
2. Banking data are as of March 31, 1988.
3. The Minneapolis - St. Paul banking market is defined as the
Minneapolis - St. Paul Ranally Metropolitan Area adjusted to include
all of Scott and Carver Counties and Lanesburgh Township in
Le Sueur County.
4. 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 over 1800 is considered highly concentrated, and
the Department is likely to challenge a merger that increases the HHI
by more than 50 points unless other factors indicate that the merger
will not substantially lessen competition. The Department of Justice
has informed the Board that a bank merger or acquisition is not likely
to be challenged (in the absence of other factors indicating an
anticompetitive effect) unless the post-merger HHI is at least 1800 and
the merger increases the HHI by at least 200 points. The Justice
Department has stated that the higher than normal HHI thresholds for
screening bank mergers for anti-competitive effects implicitly recog-
Legal Developments
Although consummation of this proposal would
eliminate some existing competition in the Minneapolis - St. Paul banking market, 108 other commercial
banking organizations would continue to operate in the
market. In addition, the Board has considered the
presence of thrift institutions in the banking market in
its analysis of this proposal. The Board has previously
indicated that thrift institutions have become, or have
the potential to become, major competitors of commercial banks. 5 Thrift institutions already exert a
considerable competitive influence in the market as
providers of NOW accounts and consumer loans, and
many are engaged in the business of making commercial loans. Based upon the number, size, market share
and commercial lending activities of thrift institutions
in the market, the Board has concluded that thrift
institutions exert a significant influence upon competition in the Minneapolis - St. Paul banking market. 6
Accordingly, in view of all the facts of record, and in
particular in light of the small increase in concentration in the market, the Board has determined that
consummation of this proposal would not have a
significant adverse effect on existing competition in the
Minneapolis - St. Paul banking market.
The financial and managerial resources of First
Bank System and its subsidiary banks are consistent
with approval. In reaching this conclusion, the Board
has taken into account First Bank System's recent
announcement of the substantial loss resulting from
the sale of its government bond portfolio, as well as
the steps First Bank System intends to take to restore
its capital position to more satisfactory levels. Considerations relating to the convenience and needs of the
community to be served are also consistent with
approval.
In connection with this application, the Board has
received comments from various insurance trade associations ("Protestants"). 7 Protestants assert that the
proposal to merge Suburban into First Bank System
would result in an impermissible broadening of First
Bank System's grandfather rights to conduct insur-
nizes the competitive effects of limited purpose lenders and other
non-depository financial entities.
5. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743
(1984); NCNB Bancorporation 70 FEDERAL RESERVE BULLETIN 225
(1984); General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); and First Tennessee National Corporation, 69
75
ance agency activities. First Bank System is authorized to engage in insurance agency activities pursuant
to exemption G to section 4(c)(8) of the BHC Act,
which authorizes those bank holding companies that
engaged, with Board approval, in insurance agency
activities prior to 1971, to engage, or control a company engaged, in insurance agency activities.
12 U.S.C. § 1843(c)(8)(G). The record indicates that
First Bank System has been engaged in general insurance agency activities in the state of Minnesota on a
continuous basis since receiving Board approval in
1959, and is one of 16 companies that qualify for
exemption G. 8 Protestants claim, however, that as a
result of this proposal a new bank holding company is
being created that would not be entitled to exercise the
grandfather rights of First Bank System.
The Board has considered carefully the arguments
made by Protestants and concludes that facts and
circumstances do not support Protestants' arguments
that First Bank System would cease to exist under this
proposal. As noted above, the structure of the proposal is a merger of Suburban into First Bank System,
with First Bank System continuing to exist as the
surviving corporation. First Bank System will continue to operate under the same corporate charter
following consummation. The much larger size of First
Bank System, with approximately $26 billion in assets,
relative to the size of Suburban, with approximately
$60 million in assets, reflects a bona fide acquisition by
First Bank System of Suburban.
In addition, the Board notes that the acquisition of
Suburban would not expand First Bank System's
authority to engage in insurance activities under exemption G, since First Bank System currently has
authority to engage in insurance agency activities at
the locations in which Suburban operates, or other
locations in the United States. 9 The Board notes that
the Board's original approval in 1959 gave First Bank
System authority to engage in insurance agency activities at all of its bank subsidiaries in Minnesota. 10
Based on the structure of the proposal, the relative
size of the two institutions involved, the continuation
of First Bank System's charter, and all the other facts
of record indicating that the essential characteristics of
First Bank System will continue to exist, the Board
concludes that this proposal would not result in the
FEDERAL RESERVE BULLETIN 2 9 8 (1983).
6. If 50 percent of the deposits controlled by thrift institutions were
included in the calculation of market concentration, First Bank
System and Suburban would control 38.7 percent and 0.3 percent of
total market deposits, respectively. The HHI would increase by 21
points to 2005 upon consummation of this proposal.
7. The Independent Insurance Agents of America, Inc., National
Association of Casualty and Surety Agents, National Association of
Life Underwriters, National Association of Professional Insurance
Agents, and National Association of Surety Bond Producers.
8. See First Bank Stock Corporation, 45 FEDERAL RESERVE BULLETIN 917 (1959). The name of First Bank Stock Corporation has been
changed to First Bank System, and the name of First Service
Agencies, Inc. has been changed to First System Agencies, Inc.
9. See First Bank System, 70 FEDERAL RESERVE BULLETIN 657
(1984); Norwest Corporation, 70 FEDERAL RESERVE BULLETIN 235
(1984).
10. First Bank Stock Corporation, 45 FEDERAL RESERVE BULLETIN
929 (1959).
76 Federal Reserve Bulletin • Februrarv 1989
formation of a new bank holding company or the loss
of First Bank System's exemption G rights. 11
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition shall not be
consummated before the thirtieth calendar day following the effective date of this Order or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board,
or by the Federal Reserve Bank of Minneapolis, acting
pursuant to delegated authority!
By order of the Board of Governors, effective
December 21, 1988.
Voting for this action: Chairman Greenspan and Governors
Angell, Heller, Kelley, and LaWare. Absent and not voting:
Governors Johnson and Seger.
JAMES M C A F E E
Associate Secretary of the Board
Security Pacific Corporation
L o s Angeles, California
Order Approving Acquisition of a Bank Holding
Company
Security Pacific Corporation, Los Angeles, California
("Security Pacific"), a bank holding company within
the meaning of the Bank Holding Company Act (the
"BHC Act") (12 U.S.C. § 1842(a)(3)), has applied for
the Board's approval under section 3(a)(3) of the BHC
Act to acquire 100 percent of the outstanding voting
shares of Nevada National Bancorporation, Reno,
Nevada ("Nevada National"), and thereby indirectly
to acquire Nevada National Bank, Reno, Nevada.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (53 Federal Register 36,638 (1988)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
The Douglas Amendment to the BHC Act prohibits
the Board from approving an application by a bank
holding company to acquire a bank located outside the
bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws
11. Protestants also requested the Board to order new publication of
notice of the application to permit public comment on the entry of a
new bank holding company into insurance activities. Because the
Board has concluded that no new bank holding company is being
formed as a result of the proposal, the Board has determined there is
no basis for ordering republication of notice in this case.
of the state in which such bank is located, by language
to that effect and not merely by implication." 1
Effective December 31, 1988, the Nevada interstate
banking statute will permit out-of-state bank holding
companies to acquire established Nevada banks and
bank holding companies. 2 Security Pacific will not
acquire Nevada National until after December 31,
1988. The Nevada Commissioner of Financial Institutions has approved Security Pacific's proposal pursuant to the Nevada statute. In light of the foregoing, the
Board has determined that its approval of the proposal
is not prohibited by the Douglas Amendment.
Security Pacific operates 10 banking subsidiaries
located in California, Washington, Oregon, Arizona,
Alaska, and New York. Security Pacific is the third
largest banking organization in California, controlling
deposits of $27.1 billion, representing 13.8 percent of
the total deposits in commercial banks in California. 3
Nevada National is the fourth largest commercial
banking organization in Nevada, controlling deposits
of $516.8 million, representing 8.5 percent of total
deposits in commercial banks in the state. Consummation of the proposal would not have any significant
adverse effect upon the concentration of banking resources in California or Nevada.
Security Pacific and Nevada National do not compete directly in any banking market. Accordingly,
consummation of the proposal would not eliminate any
significant existing competition in any relevant banking market. Consummation also would not have any
significant adverse effect on probable future competition in any relevant banking market.
The financial and managerial resources of Security
Pacific, Nevada National, and their subsidiaries are
consistent with approval. Considerations relating to
the convenience and needs of the communities to be
served by Security Pacific's and Nevada National's
subsidiary banks are also consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. This transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
1. 12 U.S.C. § 1842. A bank holding company's home state for
purposes of the Douglas Amendment is that state in which the total
deposits of its banking subsidiaries were largest on July 1, 1966, or on
the date it became a bank holding company, whichever date is later.
Security Pacific's home state is California.
2. Nev. Rev. Stat. Ann. § 666.335 (Michie 1986) (Effective December 31, 1988. Expires by limitation July 1, 1990). Nevada National was
in operation on July 1, 1985, as required by the statute. Id.
3. Deposit data are as of June 30, 1987.
Legal Developments
by the Federal Reserve Bank of San Francisco, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
December 5, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Kelley, and LaWare. Absent and not voting:
Governors Angell and Heller.
JAMES M C A F E E
Associate Secretary of the Board
SouthTrust Corporation
Birmingham, A l a b a m a
Order Approving the Acquisition of a Bank Holding
Company
SouthTrust Corporation, Birmingham, Alabama
("SouthTrust"), a bank holding company within the
meaning of the Bank Holding Company Act (the
"Act") (12 U.S.C. § 1841 et seq.), has applied for the
Board's approval under section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)) to acquire at least 80 percent
of the voting shares of The Wiregrass Bank & Trust
Company, Headland, Alabama ("Wiregrass").
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 37,053 (1988)).
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.
SouthTrust is the second largest commercial banking organization in Alabama, controlling total deposits
of approximately $4.3 billion, representing 17.9 percent of the total deposits in commercial banking organizations ("total bank deposits") in the state. 1 Wiregrass is the 96th largest commercial banking
organization in Alabama, controlling deposits of $17.4
million, representing 0.07 percent of the total bank
deposits in the state. Consummation of this proposal
would not have any significant adverse effect on the
concentration of banking resources in Alabama.
Wiregrass and a subsidiary bank of SouthTrust
compete directly in the Dothan, Alabama, banking
market. 2 In this market, SouthTrust's subsidiary bank,
SouthTrust Bank of Dothan, N.A., Dothan, Alabama,
is the largest bank, with deposits of $274.8 million,
representing 44.15 percent of deposits in commercial
1. State banking data are as of December 31, 1987. Market deposit
data are as of June 30, 1987.
2. The Dothan banking market is approximated by the following
areas in Alabama: Houston County; Midland City and Grimes in Dale
County; and Headland and Newville in Henry County.
77
banks in the market. Wiregrass is the seventh largest
banking organization, with deposits of $18.4 million,
representing 2.95 percent of market deposits. The
Dothan market is highly concentrated, with the four
largest commercial banks controlling 82.91 percent of
the total bank deposits in the market. Upon consummation, SouthTrust would remain the largest commercial banking organization in the market, controlling
$293.1 million in deposits, or 47.1 percent of market
deposits. The four-firm concentration ratio would increase 2.95 points to 85.86 percent. The market would
be considered highly concentrated after consummation of the proposed transaction, with the HerfindahlHirschman Index ( " H H I " ) increasing 260 points to
2881. 3
Although consummation of this proposal would
eliminate some existing competition between SouthTrust and Wiregrass in the Dothan banking market,
numerous other commercial banks would continue to
operate in the market after consummation of this
proposal. In addition, the Board has considered the
presence of thrift institutions in this market. The
Board has previously indicated that thrift institutions
have become, or have the potential to become, major
competitors of commercial banks. 4 In the Dothan
market, thrift institutions account for a significant
percentage of the total deposits. 5 Based upon the size
and market share of thrift institutions, the Board has
concluded that thrift institutions exert a significant
competitive influence that mitigates the anticompetitive effects of this proposal in this banking market. 6
On the basis of the foregoing and other facts of
record, the Board concludes that consummation of
this proposal would not have a significantly adverse
3. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.
4. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743
(1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE
BULLETIN 5 2 9 ( 1 9 8 4 ) ; NCNB
Bancorporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); and First Tennessee National Corporation,
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
5. Thrift institutions control nearly 25 percent of the combined
deposits of banks and thrifts in the Dothan banking market. Market
deposit data for thrift institutions are as of June 30, 1987.
6. If 50 percent of deposits held by thrift institutions in the Dothan
banking market were included in the calculation of market concentration, SouthTrust's pro forma market share would be 40.65 percent.
The HHI would increase by 193 points to 2311.
78 Federal Reserve Bulletin • Februrarv 1989
effect on existing competition in the Dothan banking
market.
The financial and managerial resources of SouthTrust and Wiregrass are considered satisfactory and
consistent with approval. Further, the Board concludes that convenience and needs of the communities
to be served are consistent with approval of this
application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition of Wiregrass
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 5, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Kelley, and LaWare. Absent and not voting:
Governors Angell and Heller.
JAMES M C A F E E
Associate Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
B a n k A m e r i c a Corporation
San F r a n c i s c o , California
Order Approving Application to Execute and Clear
Futures Contracts on Stock Indexes and a Municipal
Bond Index and Options on such Futures Contracts
BankAmerica Corporation, San Francisco, California
("BankAmerica"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied pursuant to section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) for its wholly
owned subsidiary, BA Futures, Incorporated, San
Francisco, California ("BA Futures"), to engage
de novo in the execution and clearance, on major
commodity exchanges, of futures contract on stock
indexes, a futures contract on a municipal bond
index, and options on such futures contracts.
BA Futures proposes to execute and clear:
(1) the Standard & Poor's 500 Stock Price Index
futures contract ("S&P 500"), the Standard &
Poor's 100 Stock Price Index futures contract
("S&P 100"), and options on the S&P 500 futures
contract, which are traded on the Chicago Mercantile Exchange;
(2) the Bond Buyer Municipal Bond Index futures
contract, the Major Market Index futures contract,
and options on the Bond Buyer Municipal Bond
Index futures contract, all of which are traded on the
Chicago Mercantile Exchange;
(3) the New York Stock Exchange Composite Index
futures contract, which is traded on the New York
Futures Exchange, a subsidiary of the New York
Stock Exchange;
(4) the Financial Times Stock Index futures contract, which is traded on the London International
Financial Futures Exchange; and
(5) the Nikkei Stock Average futures contract,
which is traded on the Singapore International Monetary Exchange.
Notice of the application, affording interested persons an opportunity to submit comments on the proposed activities has been duly published (53 Federal
Register 44,666 (1988)). 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.
BankAmerica, with total consolidated assets of $95
billion, is the largest banking organization in
California. 1 BankAmerica operates two subsidiary
banks and engages through certain of its subsidiaries in
a variety of nonbanking activities. BA Futures is a
futures commission merchant ("FCM") registered
with the Commodity Futures Trading Commission
("CFTC") that engages in the execution and clearance
of futures contracts and options on futures contracts
for bullion, foreign exchange, government securities,
certificates of deposit, and other money market instruments that a bank may buy or sell in the cash market
for its own account, pursuant to section
225.25(25)(b)(18) of the Board's Regulation Y,
12 C.F.R. § 225.25(b)(18).2
The Board has previously determined that the execution and clearance of futures contracts and options
on futures contracts based on stock indexes and on a
municipal bond index are closely related to banking.
{J.P. Morgan & Co. Incorporated, 71 FEDERAL RESERVE BULLETIN 251 (1985); and Northern Trust Corporation,
74 FEDERAL RESERVE BULLETIN 333 (1988).
The proposed activities of BA Futures are essentially
identical to those activities previously approved by the
Board. 3 Accordingly, the Board concludes that
1. As of September 30, 1988.
2. In March 1984, the Federal Reserve Bank of San Franscisco,
acting pursuant to delegated authority under 12 C.F.R. § 225.23(a)(1),
authorized BA Futures to engage in the above activities.
3. The Board has previously approved under section 4(c)(8) the
execution and clearance of futures contracts and options on those
Legal Developments
BankAmerica's proposed activities are closely related
to banking.
Under section 4 of the BHC Act, the Board is also
required to determine that the performance of the
proposed activities by the 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 BankAmerica's proposal would
provide added convenience to its customers. In addition, the Board expects that the de novo entry of
BankAmerica 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 BankAmerica can reasonably be expected
to provide benefits to the public.
Moreover, 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. In
addition, the Board has taken into account and has
relied on the regulatory framework established pursuant to law by the CFTC for the trading of futures.
The financial and managerial resources and future
prospects of Applicant are considered consistent with
approval. Based upon 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. Accordingly, based
on all the facts or record, and subject to the conditions
in this Order, the Board has determined that the
proposed application should be, and hereby is approved. This determination is subject to all of the
conditions set forth in 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
such modification or termination of the activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, or to
prevent evasion of, the provisions and purposes of the
futures contracts on all of the indexes being applied for by BankAmerica with the exception of the Financial Times futures contract and the
Nikkei futures contract. The Board has however permitted bank
holding companies to execute and clear the Financial Times futures
contract and the Nikkei futures contract pursuant to Regulation K
(12 C.F.R. Part 211). Board letters, dated August 6, 1984 and January
27, 1986. These contracts have essentially the same terms and serve
the same functions as the futures contracts for which execution and
clearance has been previously approved by Board order. Therefore,
the Board has determined that the execution and clearance of futures
contracts on these additional indexes is closely related to banking.
79
BHC Act and the Board's regulations and orders
thereunder.
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 San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
December 13, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Heller, Kelley, and LaWare. Absent and not
voting: Governor Angell.
JAMES M C A F E E
Associate Secretary of the Board
Bank of B o s t o n C o r p o r a t i o n
Boston, M a s s a c h u s e t t s
Order Approving the Acquisition of Factoring
Assets
Bank of Boston Corporation, Boston, Massachusetts
("Bank of Boston"), a bank holding company within
the meaning of the Bank Holding Company Act (the
"Act") (12 U.S.C. § 1841 et seq.), has applied for the
Board's approval under section 4(c)(8) of the Act and
section 225.23(a)(2) of the Board's Regulation Y
(12 C.F.R. § 225.23(a)(2)) to acquire all of the factoring assets and assume related liabilities of First Union
Commercial Corporation, Charlotte, North Carolina
("First Union"). First Union engages in commercial
financing and factoring activities, primarily for the
furniture, textile, apparel, and carpet industries. Factoring activities have previously been determined by
the Board to be closely related to banking and permissible for bank holding companies or their subsidiaries
(12 C.F.R. § 225.25(b)(l)(v)).
Notice of the application, affording interested persons an opportunity to submit comments and views,
has been duly published (53 Federal Register 46,660
(1988)). The time for filing comments and views has
expired, and the Board has considered the application
and all comments received in light of the factors
specified in section 4(c)(8) of the Act.
Bank of Boston, with consolidated assets of approximately $34.2 billion, 1 operates four subsidiary banks
in Massachusetts, Connecticut, Maine and Rhode
Island. 2 Bank of Boston also engages through its
1. Asset data are as of September 30, 1988.
2. On November 30, 1988, the Board approved the application of
Bank of Boston Corporation to acquire BankVermont Corporation,
Burlington, Vermont. This transaction has not yet been consummated
and the asset data regarding Bank of Boston do not reflect this
acquisition.
80 Federal Reserve Bulletin • Februrarv 1989
nonbank subsidiaries in various nonbanking activities,
such as mortgage banking, trust activities, leasing,
investment advisory services, and underwriting and
dealing in municipal revenue bonds, commercial paper
and consumer-receivable related securities.
Bank of Boston controls indirectly BancBoston Financial Company ("BBFC"), Boston, Massachusetts,
which engages in factoring activities world-wide.
Through BBFC, Bank of Boston controls the eighth
largest factoring operation in the United States, with
year-end 1987 receivables of $2.96 billion, representing 6.57 percent of the market for factoring in the
United States. 3
First Union is the eighteenth largest factoring operation in the United States, with year-end 1987 receivables of $615 million, representing 1.36 percent of the
market for factoring services in the United States.
First Union provides factoring services primarily in
North Carolina, South Carolina and New York
through offices located in Charlotte, North Carolina
and New York, New York. Upon consummation of
this proposal, Bank of Boston would control the sixth
largest factoring operation in the United States, with a
7.93 percent market share.
The Board has previously stated that the market for
factoring services is nationwide. The market is considered unconcentrated, with a four-firm concentration
ratio of 38.0 percent. The Herfindahl-Hirschman Index ( " H H I " ) of the market is 705 and would increase
by 18 points to 723 upon consummation of this
proposal. 4 Although the acquisition of First Union
would eliminate some existing competition between
Bank of Boston and First Union, numerous other
factors continue to operate in the market and the
market would remain unconcentrated. Accordingly,
consummation of this proposal would not have a
significant adverse effect on competition in the factoring market.
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 interest, or an undue concentration of
resources. Financial and managerial resources also are
consistent with approval of this application.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors that the Board
is required to consider under section 4(c)(8) is favorable. Accordingly, the application is hereby approved.
3. Market data are as of December 31, 1987.
4. 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 below 1000 is considered unconcentrated, and the
Department will not challenge a merger with a post-merger HHI below
100, except in extraordinary circumstances.
This determination is subject to 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 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 Boston,
pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1988.
Voting for this action: Chairman Greenspan and Governors
Angell, Heller, Kelley and LaWare. Absent and not voting:
Governors Johnson and Seger.
JAMES M C A F E E
Associate Secretary of the Board
Barnett B a n k s , Inc.
Jacksonville, Florida
Order Approving Acquisition of a Federal
Bank
Savings
Barnett
Banks,
Inc.,
Jacksonville,
Florida
("Barnett"), a bank holding company within the
meaning of the Bank Holding Company Act (the
"BHC Act") (12 U.S.C. § 1841 et seq.), has applied
pursuant to section 4(c)(8) of the BHC Act and section
225.23 of the Board's Regulation Y (12 C.F.R.
§ 225.23), to acquire all of the voting shares of Barnett
Federal Savings Bank ("Barnett Federal"), a de novo
federal savings bank formed to acquire substantially
all of the assets and certain liabilities of First Federal
Savings and Loan Association of Columbus, Columbus, Georgia ("First Federal"), an insolvent thrift
institution. 1 Upon consummation of the proposed acquisition, Barnett Federal will operate as a federal
savings bank in Georgia. 2
1. First Federal is currently operated as a federal stock savings and
loan association and will be placed into receivership by the Federal
Savings and Loan Insurance Corporation (the "FSLIC"). Immediately thereafter, Barnett Federal will acquire substantially all of the
assets, as well as the secured, deposit and certain tax claim liabilities
of First Federal, from the FSLIC as receiver for First Federal. FSLIC
will also provide financial assistance for the acquisition.
2. Barnett Federal will be operated as a wholly owned subsidiary of
First City Bancorp, Inc., Marietta, Georgia, which is a wholly owned
subsidiary of Suncoast Bancorp, Inc., Vero Beach, Florida, which, in
turn, is a wholly owned subsidiary of Barnett.
Legal Developments
Barnett, with total consolidated assets of $24.5
billion, is the largest commercial banking organization
in Florida. 3 It operates 34 banking subsidiaries and
engages in numerous nonbanking activities, including
trust company functions, check-guaranty services,
discount securities brokerage, and permissible credit
related insurance activities.
First Federal, with total assets of $265.8 million, is
the eleventh largest savings institution in Georgia, and
operates one office in the state.
By letter dated December 27, 1988, the Federal
Home Loan Bank Board ("Bank Board") requested
that the Board approve this application to acquire
Barnett Federal under the Bank Board's Expedited
Case Processing Program for failing thrift institutions.
The Bank Board urged the Board to approve this
application in order to restore public confidence, maintain confidence in the savings and loan industry generally, and stabilize the daily increasing potential cost
to the FSLIC. The Bank Board based its request on
the insolvent condition of First Federal as well as on
the substantial public benefits of the proposal, including the significant and stabilizing capital injections
proposed by Barnett and the FSLIC.
In light of the condition of First Federal, the Board
promptly caused notice of the application to be published in the Federal Register (53 Federal Register
49,228 (1988)). 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. 4
Section 4(c)(8) of the BHC Act authorizes a bank
holding company to engage in, or acquire and retain a
company that engages in, activities determined by the
Board to be "so closely related to banking or managing or controlling banks as to be a proper incident
thereto." The Board has determined previously that
the operation of a thrift institution is closely related to
3. Asset data are as of September 30, 1988.
4. The Board received a protest to the proposal alleging an unfairness in the Bank Board's bidding procedure in favor of out-of-state
institutions as well as an inability on Barnett's part to acquire First
Federal directly under applicable law. As the Board has previously
held, the Board's consideration of the effects of a proposal involving
a bank holding company acquisition under the prudential standards of
section 4(c)(8), which involve an evaluation of the possible adverse
effects and anticipated public benefits of the proposal, does not
include a review of the FSLIC's selection of the appropriate bidder for
the failing thrift. Citicorp, 72 FEDERAL RESERVE BULLETIN 724, 728
(1986); Citicorp, 68 FEDERAL RESERVE BULLETIN 656, 668 (1982).
That decision is committed to the discretion of the FSLIC. With
regard to protestant's second contention, the Board notes that Barnett
could acquire First Federal directly under applicable law. Accordingly, and in light of the facts of record in this case, the Board
concludes that protestant's comments do not warrant denial of this
application.
81
banking, and reaffirms that determination in this
Order. 5
In D.H. Baldwin & Co.,6 however, the Board determined that, as a general matter, the operation of a
savings and loan association is not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrift institutions were not outweighed by the potential public
benefits. In individual cases involving failing thrifts,
the Board has found that the balance of public benefits
was favorable on the basis that the adverse effects of
the affiliation would be overcome by the public benefits of preserving the failing thrift institution as a
competitive entity in the market and ensuring public
confidence. 7 The 1982 Garn-St Germain Act recognized the Board's authority under section 4(c)(8) of the
BHC Act to approve such acquisitions by authorizing
the Board in these cases to dispense with the usual
notice and hearing requirements of section 4(c)(8)
under appropriate emergency circumstances.
Based upon the Board's review of the record, the
Board has determined that there are substantial benefits to the public in this case that outweigh the generalized adverse effects found by the Board in the D.H.
Baldwin case. In particular, under the proposal, Barnett Federal will have the financial and managerial
resources to continue to provide service to the convenience and needs of the customers and community
served by First Federal.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In that
regard, Barnett is an adequately capitalized institution, and, because this transaction will have a
de minimis effect on its financial condition, it will
remain so on a consolidated basis upon consummation
of the proposal. Moreover, in accordance with its prior
rulings in this area, the Board expects that Barnett will
cause Barnett Federal to achieve and maintain levels
of capital consistent with those applying to banking
5 . See,
e.g.,
Citicorp,
7 2 FEDERAL RESERVE BULLETIN 724 ( 1 9 8 6 ) ;
First Pacific Investments Limited, 72 FEDERAL RESERVE BULLETIN
342 (1986); F.N.B. Corporation, 71 FEDERAL RESERVE BULLETIN 340
(1985).
6 . D.H.
Baldwin
& Co.,
6 3 FEDERAL RESERVE BULLETIN
280
(1977). The Board has invited public comment on a proposal to
reexamine this position. 52 Federal Register 36,041 (1987).
7. See, e.g., F.N.B. Corporation, supra; The Chase Manhattan
Corporation, 71 FEDERAL RESERVE BULLETIN 462 (1985); Interstate
Financial Corp., 68 FEDERAL RESERVE BULLETIN 316 (1982).
82 Federal Reserve Bulletin • Februrarv 1989
organizations generally as soon as possible, and in any
case within one year. 8
First Federal operates in the Columbus Area banking market. 9 Barnett does not control a depository
institution in that market. Accordingly, the Board has
determined that consummation of this proposal would
not have a significant adverse effect on competition. In
addition, the Board concludes that consummation of
this proposal would not have a significant adverse
effect on probable future competition in any relevant
market.
To guard against possible adverse effects of affiliation between a banking organization and a savings
and loan association, the Board conditions its approval
as follows:
1. Barnett will operate Barnett Federal as a federal
savings bank having as its primary purpose the
provision of residential housing credit. Barnett Federal will limit its activities to those currently permitted to thrift institutions under the Home Owners'
Loan Act, but shall not engage in any activity
prohibited to bank holding companies and their
subsidiaries under section 4(c)(8) of the BHC Act. 10
2. Barnett Federal will not establish or operate a
remote service unit at any location outside of
Georgia.
3. Barnett Federal will not establish or operate
branches at locations not permissible for national
banks located in Georgia.
4. Barnett shall not change Barnett Federal's name
to any title that might confuse the public regarding
its status as a nonbank thrift institution. 11
5. Barnett Federal will not convert its charter to that
of a national or state commercial bank without the
Board's prior approval.
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
would not result in conflicts of interests, unsound
banking practices, decreased or unfair competition,
undue concentration of resources, or other adverse
effects.
8. See First Bancorporation of Ohio, 14 FEDERAL RESERVE BULLETIN 817 (1988).
9. The Columbus Area banking market is approximated by Chattahoochee and Muskogee Counties in Georgia, Russell County, Alabama, and the city of Smiths in Lee County, Alabama.
10. These limitations also apply to First Federal's wholly owned
subsidiary, First Columbus Service Corporation, Columbus, Georgia
("Company"), which is primarily engaged in the sale of real estate
owned by the company. Barnett has committed that Company will
engage in only those real estate activities permissible under the BHC
Act and the Board's Regulation Y. Barnett has also committed that
Company will discontinue any impermissible activities within two
years after consummation of the proposed transaction.
11. See
Barnett
Banks,
Inc.,
7 5 FEDERAL RESERVE BULLETIN
(Order dated December 5, 1988).
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of Barnett Federal by
Barnett would result in substantial and compelling
public benefits that are sufficient to outweigh any
adverse effects that may reasonably be expected to
result from this proposal. Accordingly, the application
is approved subject to the conditions described in this
Order, and the record of the application.
The Board's decision in this case is subject to 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,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated 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 Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
December 27, 1988.
Voting for this action: Chairman Greenspan and Governors
Angell, Heller, Kelley, and LaWare. Absent and not voting:
Governors Johnson and Seger.
WILLIAM W . WILES
Secretary of the Board
Barnett B a n k s , Inc.
Jacksonville, Florida
Order Approving Acquisition of a Federal
Savings Bank
Barnett
Banks,
Inc.,
Jacksonville,
Florida
("Barnett"), a bank holding company within the
meaning of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) (the " B H C Act"), has
applied pursuant to section 4(c)(8) of the BHC Act and
section 225.23 of the Board's Regulation Y (12 C.F.R.
§ 225.23), to acquire all of the voting shares of the
successor to First Federal Savings and Loan Association, Summerville, Georgia ("First Federal"), an
insolvent thrift institution. 1 Upon consummation of
the proposed acquisition, First Federal will operate as
a federal savings bank in Georgia. 2
1. Under Barnett's proposal, the assets and liabilities of First
Federal will be transferred to the FSLIC as receiver, and then to a
newly-formed federal savings bank.
2. Through its acquisition of First Federal, Barnett will also
indirectly acquire First Federal's wholly owned insurance agency
Legal Developments
Barnett, with total consolidated assets of $24.2
billion, is the largest commercial banking organization
in Florida. 3 It operates 34 banking subsidiaries and
engages in numerous nonbanking activities, including
trust company functions, check-guaranty services,
discount securities brokerage, and permissible credit
related insurance activities.
First Federal, with total assets of $41.4 million, is
the fifty-eighth largest savings institution in Georgia.
First Federal operates one office in Summerville,
Georgia.
By letter dated December 2, 1988, the Federal
Home Loan Bank Board ("Bank Board") requested
that the Board act immediately upon the application in
view of the emergency nature of the situation at First
Federal, its deteriorating financial condition, the need
to restore public confidence in First Federal, and in
order to stabilize the increasing potential cost to the
FSLIC. 4
In light of the condition of First Federal, the Board
promptly caused notice of the application to be published in the Federal Register5 and determined that a
shortened public comment period was necessary. 6 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. 7
Section 4(c)(8) of the BHC Act authorizes a bank
holding company to engage or acquire a company that
engages in activities determined by the Board to be
"so closely related to banking or managing or controlling banks as to be a proper incident thereto." The
subsidiary, Summerville Service, Inc., Summerville, Georgia ("Company"). Barnett has committed that Company will engage in only
those insurance activities permissible under the Board's Regulation Y.
3. Asset data are as of June 30, 1988.
4. The Bank Board has indicated that First Federal has incurred
significant operating losses over a prolonged period, and has negative
capital of $3.68 million, as of June 30, 1988.
5. Notice of the application, providing an opportunity for interested
third parties to submit comments, was also published in newspapers of
general circulation in Summerville and Atlanta, Georgia, and Jacksonville, Florida.
6. The Board is authorized by statute to waive or shorten the usual
notice and comment period under section 4 in the case of failing thrift
acquisitions, if the Board, with the concurrence of the primary
Federal regulator of the thrift being acquired, determines that an
emergency exists which requires the Board to act immediately on the
application. 12 U.S.C. § 1843(c)(8); 12 C.F.R. § 225.23(i). The
F H L B B has concurred in the Board's finding that an emergency exists
requiring immediate action.
7. The Board received one comment on the application, from
Farmers & Merchants Bank, Summerville, Georgia ( " F & M " ) . F&M
argued that Baraett's acquisition of First Federal would result in
decreased competition in the Chattooga Area banking market. As
discussed below, the Board has considered the effect on competition
of the proposal, and concluded that consummation of the proposal
would not have a significant adverse effect on competition in the
relevant market. Indeed, the proposal would have a beneficial impact
on competition by ensuring the continued operation of First Federal as
a viable institution.
83
Board has determined previously that the operation of
a thrift institution is closely related to banking, and
reaffirms that determination in this Order. 8
In D.H. Baldwin & Co.,9 however, the Board determined that, as a general matter, the operation of a
savings and loan association is not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrift institutions were not outweighed by the potential public
benefits. In individual cases involving failing thrifts the
Board has found that the balance of public benefits
was favorable on the basis that the adverse effects of
the affiliation would be overcome by the public benefits of preserving the failing thrift institution as a
competitive entity in the market and ensuring public
confidence. 10 The 1982 Garn-St Germain Act recognized the Board's authority under section 4(c)(8) of the
BHC Act to approve such acquisitions by authorizing
the Board in these cases to dispense with the usual
notice and hearing requirements of section 4(c)(8)
under appropriate emergency circumstances.
Based upon the Board's review of the record, the
Board has determined that there are substantial benefits to the public in this case that outweigh the generalized adverse effects found by the Board in D.H.
Baldwin. In particular, Barnett's acquisition of First
Federal will provide First Federal with the financial
and managerial resources to enable it to continue its
operations and its service to the convenience and
needs of its community.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In that
regard, Barnett is a strongly capitalized institution,
and will remain so on a consolidated basis upon
consummation of the proposal. Moreover, in accordance with its prior rulings in this area, the Board
expects that Barnett will cause First Federal to
achieve and maintain levels of capital consistent with
those applying to banking organizations generally.
8. See, e.g., Citicorp,
7 2 FEDERAL RESERVE BULLETIN 7 2 4 ( 1 9 8 6 ) ;
First Pacific Investments
Limited,
7 2 FEDERAL RESERVE BULLETIN
342 ( 1 9 8 6 ) ; F.N.B.
Corporation,
7 1 FEDERAL RESERVE BULLETIN 3 4 0
(1985); Old Stone Corporation,
6 9 FEDERAL RESERVE BULLETIN 8 1 2
( 1 9 8 3 ) ; Interstate
Financial
Corp.,
6 8 FEDERAL RESERVE BULLETIN
3 1 6 (1982); D.H. Baldwin
& Co., 6 3 FEDERAL RESERVE BULLETIN 2 8 0
(1977).
9. D.H. Baldwin & Co., 63 FEDERAL RESERVE BULLETIN 280
(1977). The Board has invited public comment on a proposal to
reexamine this position. 52 Federal Register 36,041 (1987).
10. See, e.g., F.N.B. Corporation, supra; The Chase
Manhattan
Corporation,
7 1 FEDERAL RESERVE BULLETIN 4 6 2 ( 1 9 8 5 ) ;
Financial Corp.,
supra.
Interstate
84 Federal Reserve Bulletin • Februrarv 1989
First Federal operates in the Chattooga Area banking market. 11 Barnett does not control a depository
institution in that market. Accordingly, the Board has
determined that consummation of this proposal would
not have a significant adverse effect on competition.
To guard against possible adverse effects of affiliation between a banking organization and a savings
bank, the Board conditions its approval as follows:
1. Barnett will operate First Federal as a federal
savings bank having as its primary purpose the
provision of residential housing credit. First Federal
will limit its activities to those currently permitted to
thrift institutions under the Home Owners' Loan
Act, but shall not engage in any activity prohibited
to bank holding companies and their subsidiaries
under section 4(c)(8) of the BHC Act.
2. First Federal will not establish or operate a
remote service unit at any location outside of Georgia.
3. First Federal will not establish or operate
branches at locations not permissible for national or
state banks located in Georgia.
4. Barnett shall not change First Federal's name to
any title that might confuse the public regarding its
status as a nonbank thrift institution.
5. First Federal will not convert its charter to that of
a national or state commercial bank without the
Board's prior approval.
Barnett has requested that the Board not limit the
branching ability of First Federal to that permitted a
commercial bank in Georgia. Under Georgia law,
banks generally may only branch within their home
counties. Ga. Code Ann. §§ 7-1-601 (1988).12 In this
case, the Georgia Department of Banking and Finance
has conditioned its approval of Barnett's acquisition
on a requirement that First Federal not branch beyond
those areas permissible for commercial banks in
Georgia.
In enacting the emergency thrift acquisition provisions of the 1982 Garn-St Germain Act, Congress
imposed a series of restrictions and limitations on the
operation of thrift institutions acquired by bank holding companies with federal assistance, including a
limitation that the acquired thrift "may retain and
operate any existing branch or branches—but otherwise shall be subject to the conditions upon which a
national bank may establish and operate branches in
the state in which the thrift is located." 12 U.S.C.
§ 1730a(m)(5)(A). The Bank Board has chosen not to
11. The Chattooga Area banking market is approximated by Chattooga and Floyd Counties in Georgia.
12. A federally-chartered thrift institution is not limited in its
branching power in Georgia.
process this application under the emergency thrift
acquisition provisions of the Garn-St Germain Act,
but under another provision of the Savings and Loan
Holding Company Amendments ("S&LHC Act")
(12 U.S.C. § 1729(f)).
While the branching restriction may not be required
under the S&LHC Act, the Board believes that it
continues to be appropriate under the BHC Act.
Commencing in 1982 (prior to the enactment of the
Garn-St Germain Act) and continuing to the present,
the Board has allowed emergency thrift acquisitions as
an exception to its D.H. Baldwin doctrine under
certain limitations, including the branching restriction
noted above. The branching restriction was established in order to minimize the impact of bank holding
company thrift acquisitions on the authority of a state
to limit the expansion of financial institutions within its
borders. The Board was also concerned with the
competitive impact bank holding company thrift acquisitions could have on local commercial banking organizations, which, unlike thrift institutions, could be
limited in their ability to branch. That concern is
heightened where federal assistance has been provided
to the bank holding company in order to facilitate its
acquisition of the thrift.
The legislative history of the 1982 Garn-St Germain
Act evidences a clear Congressional policy of promoting competitive equality between branches of thrifts
acquired by banks with federal assistance and
branches of commercial banks. 13 Accordingly, Congress established specific policies for handling federally assisted emergency thrift acquisitions by bank
holding companies, such as this, that limit the acquired
thrift's branching. The Board finds no compelling
reason to deviate from those policies in this case.
Barnett also has proposed to rename First Federal
"Barnett Bank, a Federal Savings Bank". In that
regard, Barnett has applied to acquire and operate
First Federal as a thrift and not as a bank. The Board
has, however, required in previous thrift acquisitions
that any name proposed for an acquired thrift not blur
the distinction between banking and nonbanking subsidiaries of bank holding companies.
The Board does not believe that this case presents
any facts which would justify departing from past
practice, particularly in view of the fact that Barnett
13. See, e.g., Financial Institutions Restructuring and Services Act
of 1981: Hearings on S.1686, S.1703, S.1720, and S.1721 Before the
Senate Committee on Banking, Housing, and Urban Affairs, 97th
Cong. 1st Sess. 215 (1981): "This [branching restriction] assures the
acquiring institution will not gain competitive advantage over a bank
or bank holding company, because it has acquired an institution which
has greater branching powers" (Remarks of Mr. Bianchi, President,
Conference of State Bank Supervisors). See also id. at 309, 386-387;
and S. Rep. No. 97-536 at 6-7.
Legal Developments
currently controls a bank subsidiary in Georgia named
Barnett Bank of Atlanta. Barnett Bank of Atlanta
currently operates 15 offices in Cobb and Fulton
counties in Georgia. Accordingly, the Board's approval is conditioned on Barnett's not changing the
name of First Federal as proposed.
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
would not result in conflicts of interests, unsound
banking practices, decreased or unfair competition,
undue concentration of resources, or other adverse
effects.
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of First Federal by
Barnett would result in substantial and compelling
public benefits that are sufficient to outweigh any
adverse effects that may reasonably be expected to
result from this proposal. Accordingly, the application
is approved subject to the conditions described in this
Order, and the record of the application.
The Board's decision in this case is subject to 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,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated 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 Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
December 5, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare. Absent and not
voting: Governor Heller.
JAMES M C A F E E
Associate Secretary of the Board
Concurring Statement of Governor Seger
I concur in the Board's decision to approve this
application. I am concerned, however, regarding the
requirement that First Federal's future branching be
limited to that of a commercial bank in Georgia. I
recognize that the Board has consistently imposed the
branching limitation in past failing thrift acquisitions,
that such limitation is required by the Garn-St Germain Act, and that the state of Georgia has chosen to
limit branching by commercial banks in that state. On
85
the other hand, I would note that First Federal is a
thrift institution and not a commercial bank, and I am
concerned that the branching restriction will, in the
future, diminish the attractiveness of failing thrift
acquisitions for bank holding companies.
I would also allow Barnett to rename First Federal,
"Barnett Bank, a Federal Savings Bank". The
FHLBB has expressed the opinion that the name
change is consistent with that agency's regulations.
Moreover, many thrift institutions that are not owned
by bank holding companies have adopted names that
contain the word " b a n k " and that identify the thrift as
a federal savings bank. In these circumstances I believe Barnett's proposed name change for First Federal is not likely to confuse the public regarding that
institution's status as a thrift, and is consistent with
the standards the Board must apply under the Bank
Holding Company Act. Accordingly, I would approve
the application and permit the name change proposed
by Barnett.
December 5, 1988
Citicorp
N e w York, N e w Y o r k
Order Approving Acquisition of a Federal
and Loan Association
Savings
Citicorp, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act (the " B H C Act") (12 U.S.C. § 1841
et seq.), has applied pursuant to section 4(c)(8) of the
BHC Act and section 225.23 of the Board's Regulation
Y (12 C.F.R. § 225.23), for Citicorp Mortgage, Inc.,
St. Louis, Missouri, a wholly owned subsidiary of
Citicorp, to acquire all of the voting shares of Glen
Ellyn Savings and Loan Association, A Federal Savings and Loan Association, Glen Ellyn, Illinois ("Glen
Ellyn"). 1 Glen Ellyn is a failed thrift institution in
receivership that will be merged into and operated as a
branch of Citicorp Savings of Illinois, A Federal
Savings and Loan Association, Chicago, Illinois
("Citicorp Savings") upon consummation of the proposed acquisition.
Citicorp, with total consolidated assets of $209.2
billion, is the largest commercial banking organization
1. Glen Ellyn currently operates as a mutual thrift institution and
will be converted to a federal stock savings and loan association on a
voluntary supervisory basis. Glen Ellyn is qualified for such a conversion under Federal Home Loan Bank Board regulations (12 C.F.R.
§ 563b.24), because its liabilities exceed its assets under generally
accepted accounting principles and, upon consummation of the proposed transaction, Glen Ellyn will become a viable entity under
12 C.F.R. § 563b.26. Glen Ellyn will retain its Federal Savings and
Loan Insurance Corporation ("FSLIC") deposit insurance.
86 Federal Reserve Bulletin • Februrarv 1989
in New York. 2 It presently operates nine banking
subsidiaries.
Glen Ellyn, with total assets of $71.3 million, is the
148th largest of 252 savings institutions in Illinois, and
operates one office in the state. 3
By letter dated December 16, 1988, the Federal
Home Loan Bank Board ("Bank Board") requested
that the Board approve this application to acquire Glen
Ellyn under the Bank Board's Expedited Case Processing Program for failing thrift institutions. The Bank
Board urged the Board to approve this application in
order to restore public confidence in Glen Ellyn,
maintain confidence in the savings and loan industry
generally, and stabilize the daily increasing potential
cost to the FSLIC. The Bank Board based its request
on both the deteriorating and volatile condition of Glen
Ellyn, as well as on the substantial public benefits of
the proposal, including the significant and stabilizing
capital injections proposed by Citicorp and the
FSLIC.
In light of the condition of Glen Ellyn, the Board
promptly caused notice of the application to be published in the Federal Register (53 Federal Register
44,666 (1988)) and determined that a shortened public
comment period was necessary. 4 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.
Section 4(c)(8) of the BHC Act authorizes a bank
holding company to engage in, or acquire a company
that engages in, activities determined by the Board to
be "so closely related to banking or managing or
controlling banks as to be a proper incident thereto."
The Board has determined previously that the operation of a thrift institution is closely related to banking,
and reaffirms that determination in this Order. 5
2. Asset data are as of September 30, 1988.
3. Asset data are as of June 30, 1988.
4. The Board is authorized by statute and regulation to waive or
shorten the usual notice and comment period, as well as the hearing
requirements normally accorded section 4 applications, in the case of
failing thrift acquisitions. Under these provisions, the Board is required to determine, with the concurrence of the primary Federal
regulator of the thrift being acquired, that an emergency exists which
requires the Board to act immediately on an application to acquire a
failing thrift institution. 12 U.S.C. § 1843(c)(8); 12 C.F.R. § 225.23(i).
The Bank Board has concurred that an emergency exists and has
requested that the Board act immediately on the application.
5. See,
e.g.,
Citicorp,
First Pacific Investments
72 FEDERAL RESERVE BULLETIN 724 (1986);
Limited,
72 FEDERAL RESERVE BULLETIN
342 (1986); F.N.B.
Corporation,
71 FEDERAL RESERVE BULLETIN 340
(1985); Old Stone Corporation,
6 9 FEDERAL RESERVE BULLETIN 812
(1983); Interstate
Financial
Corp., 6 8 FEDERAL RESERVE BULLETIN
316 (1982); D.H. Baldwin & Co., 63 FEDERAL RESERVE BULLETIN 2 8 0
(1977).
In D.H. Baldwin & Co.,6 however, the Board determined that, as a general matter, the operation of a
savings and loan association is not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrift institutions were not outweighed by the potential public
benefits. In individual cases involving failing thrifts,
the Board has found that the balance of public benefits
was favorable on the basis that the adverse effects of
the affiliation would be overcome by the public benefits of preserving the failing thrift institution as a
competitive entity in the market and ensuring public
confidence. 7 The 1982 Garn-St Germain Act recognized the Board's authority under section 4(c)(8) of the
BHC Act to approve such acquisitions by authorizing
the Board in these cases to dispense with the usual
notice and hearing requirements of section 4(c)(8)
under appropriate emergency circumstances.
Based upon the Board's review of the record, the
Board has determined that there are substantial benefits to the public in this case that outweigh the generalized adverse effects found by the Board in D.H.
Baldwin. In particular, Citicorp's acquisition of Glen
Ellyn will provide Glen Ellyn with the financial and
managerial resources to enable it to continue its operations and its service to the convenience and needs of
its community.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In that
regard, Citicorp is an adequately capitalized institution, and, because this transaction will not result in a
diminution of its capital, it will remain so on a consolidated basis upon consummation of the proposal.
Moreover, in accordance with its prior rulings in this
area, the Board expects that Citicorp will cause Glen
Ellyn to achieve and maintain levels of capital consistent with those applying to banking organizations
generally as soon as possible, and in any case within
one year. 8
The proposed acquisition would not substantially
lessen or otherwise decrease competition in any relevant market. On the contrary, the acquisition would
have the substantial beneficial effect of preserving
6. D.H.
Baldwin
& Co.,
63 FEDERAL RESERVE BULLETIN 2 8 0
(1977). The Board has invited public comment on a proposal to
reexamine this position. 52 Federal Register 36,041 (1987).
7. See, e.g., F.N.B. Corporation, supra; The Chase
Manhattan
Corporation,
71 FEDERAL RESERVE BULLETIN 4 6 2 (1985);
Financial Corp., supra.
8. See First Bancorporation
LETIN 817 (1988).
Interstate
of Ohio, 74 FEDERAL RESERVE BUL-
Legal Developments
Glen Ellyn as an effective competitor. In that regard,
both Citicorp Savings and Glen Ellyn engage in deposit taking and lending activities within the Chicago,
Illinois banking market. 9 In view of Glen Ellyn's small
market share, the unconcentrated nature of the market
and the de minimis increase in concentration resulting
from this proposal, the deteriorating condition of Glen
Ellyn, and the fact that numerous other bank and thrift
institutions would remain in the market, the Board
concludes that the acquisition would have no substantial adverse effect on existing competition in the Chicago market. In addition, the Board concludes that
consummation of this proposal would not have a
significant adverse effect on probable future competition in any relevant market.
To guard against possible adverse effects of affiliation between a banking organization and a savings
and loan association, the Board conditions its approval
as follows:
1. Citicorp will operate Glen Ellyn as a federal
savings and loan association having as its primary
purpose the provision of residential housing credit.
Glen Ellyn will limit its activities to those currently
permitted to thrift institutions under the Home Owners' Loan Act, but shall not engage in any activity
prohibited to bank holding companies and their
subsidiaries under section 4(c)(8) of the BHC Act. 10
2. Glen Ellyn will not establish or operate a remote
service unit at any location outside of Illinois.
3. Glen Ellyn will not establish or operate branches
at locations not permissible for national banks located in Illinois.
4. Citicorp shall not change Glen Ellyn's name to
any title that might confuse the public regarding its
status as a nonbank thrift institution. 11
5. Glen Ellyn will not convert its charter to that of a
national or state commercial bank without the
Board's prior approval.
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
9. The Chicago, Illinois banking market is approximated by Cook,
DuPage and Lake counties in Illinois. Within the Chicago market,
Citicorp Savings is the fifth largest depository institution among banks
and thrift institutions in the market with total deposits of $3.8 billion,
representing approximately 4.0 percent of market deposits in such
institutions. Glen Ellyn is the 189th largest depository institution
among banks and thrifts in the market, with total deposits of $71.0
million, representing less than one percent of the total deposits in
banks and thrifts in the market. Market data are as of June 30, 1987.
10. These limitations also apply to Glen Ellyn's wholly owned
subsidiary, Trust Company of Glen Ellyn ("Company"). Citicorp has
committed to divest Company's real estate investments within two
years from the date of consummation of this proposal, and will not
undertake any new projects or investments during this period.
11. See
Barnett
Banks,
Inc.,
7 5 FEDERAL RESERVE BULLETIN
(Order dated December 5, 1988).
87
would not result in conflicts of interests, unsound
banking practices, decreased or unfair competition,
undue concentration of resources, or other adverse
effects.
Citicorp's previous acquisition of Citicorp Savings
and its application to acquire Glen Ellyn were made
pursuant to section 408(m) of the National Housing
Act ("section 408(m)"). 12 Section 408(m) and the
Board's previous approval restrict Citicorp Savings
from establishing branches in Illinois at locations not
permissible for national or state banks. A recently
enacted exception to Illinois bank branching restrictions provides that the main office of a bank acquired
by merger with another bank may be operated as a
branch of the acquiring bank. 13 Correspondingly,
Citicorp proposes to operate Glen Ellyn's only office
as a branch of Citicorp Savings after Glen Ellyn is
acquired by merger. The Board has requested the
views of the Illinois Commissioner of Banks and Trust
Companies on the permissibility of the proposal under
Illinois law and has received no objections. Accordingly, the Board concludes that approval of this application is consistent with the provisions of section
408(m).
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of Glen Ellyn by
Citicorp would result in substantial and compelling
public benefits that are sufficient to outweigh any
adverse effects that may reasonably be expected to
result from this proposal. Accordingly, the application
is approved subject to the conditions described in this
Order and the record of the application.
The Board's decision in this case is subject to 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,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated 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, pursuant to delegated authority.
By order of the Board of Governors, effective
December 19, 1988.
12. Section 408(m) was enacted by section 123 of the Garn-St
Germain Act of 1982, and is codified at 12 U.S.C. § 1730a(m).
Citicorp,
7 0 FEDERAL RESERVE BULLETIN 149, 151 ( 1 9 8 4 ) .
13. This exception provides that a "continuing bank" may "continue, maintain and operate the main banking premises and facilities of
any merging bank." 111. Ann. Stat. ch. 17, para. 311(15)(g) (SmithHurd, West Supp. 1988).
88 Federal Reserve Bulletin • Februrarv 1989
Voting for this action: Chairman Greenspan and Governors
Johnson, Angell, Heller, Kelley, and LaWare. Absent and
not voting: Governor Seger.
JAMES M C A F E E
Associate Secretary of the Board
Michigan National Corporation
Farmington Hills, Michigan
Order Approving Acquisition of a Federal Savings
and Loan Association
Michigan National Corporation, Farmington Hills,
Michigan ("Michigan National"), a bank holding company within the meaning of the Bank Holding Company Act (the "BHC Act") (12 U.S.C. § 1843(c)(8)),
has applied pursuant to section 4(c)(8) of the BHC
Act and section 225.23 of the Board's Regulation Y
(12 C.F.R. § 225.23), to acquire all of the voting
shares of Beverly Hills Savings, A Federal Savings
and Loan Association, Beverly Hills, California
("Beverly Hills Savings"), an insolvent thrift institution. Upon consummation of the proposal, Beverly
Hills Savings will be operated as a subsidiary of
Michigan National. 1
Michigan National, with assets in Michigan of $8.4
billion, is the third largest commercial banking organization in Michigan. It presently operates four banking
subsidiaries.
Beverly Hills Savings, with total assets of $1.4
billion, is the 34th largest savings institution in California, and operates six branches in the state. 2
By letter dated December 30, 1988, the Federal
Home Loan Bank Board ("Bank Board") requested
that the Board approve this application to acquire
Beverly Hills Savings. The Bank Board urged the
Board to approve this application in order to restore
public confidence in Beverly Hills Savings, maintain
confidence in the savings and loan industry generally,
and stabilize the daily increasing potential cost to the
FSLIC. The Bank Board based its request on both the
deteriorating and volatile condition of Beverly Hills
Savings, and on the substantial public benefits of the
proposal, including the significant and stabilizing capital injections proposed by Michigan National and the
FSLIC.
Section 4(c)(8) of the BHC Act authorizes a bank
holding company to engage in, or acquire and retain a
1. Beverly Hills Savings currently operates as a mutual thrift
institution and will be converted to a federal stock savings association
on a supervisory basis with assistance from the Federal Savings and
Loan Insurance Corporation (the "FSLIC"). Beverly Hills Savings
will retain its FSLIC deposit insurance.
2. Asset data are as of June 30, 1988.
company that engages in, activities determined by the
Board to be "so closely related to banking or managing or controlling banks as to be a proper incident
thereto." The Board has determined previously that
the operation of a thrift institution is closely related to
banking, and reaffirms that determination in this
Order. 3
In D.H. Baldwin & Co.,4 however, the Board determined that, as a general matter, the operation of a
savings and loan association is not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrift institutions were not outweighed by the potential public
benefits. In individual cases involving failing thrifts,
the Board has found that the balance of public benefits
was favorable on the basis that the adverse effects of
the affiliation would be overcome by the public benefits of preserving the failing thrift institution as a
competitive entity in the market and ensuring public
confidence. 5 The 1982 Garn-St Germain Act recognized the Board's authority under section 4(c)(8) of the
BHC Act to approve such acquisitions by authorizing
the Board in these cases to dispense with the usual
notice and hearing requirements of section 4(c)(8)
under appropriate emergency circumstances.
After considering all the facts and circumstances in
this case, the Board has concluded that an emergency
situation exists at Beverly Hills Savings that requires
the Board to act immediately on this application, and
the Bank Board has concurred in this finding. Accordingly, the Board has, under the authority provided in
section 118 of the Garn-St Germain Act, dispensed
with the notice and hearing requirements of section
4(c)(8) with respect to this application. 6
3. See,
e.g.,
Citicorp,
7 2 FEDERAL RESERVE BULLETIN 7 2 4 ( 1 9 8 6 ) ;
First Pacific Investments Limited, 72 FEDERAL RESERVE BULLETIN
342 (1986); F.N.B. Corporation, 71 FEDERAL RESERVE BULLETIN 340
(1985); Old Stone Corporation, 69 FEDERAL RESERVE BULLETIN 812
(1983); Interstate Financial Corp., 68 FEDERAL RESERVE BULLETIN
3 1 6 ( 1 9 8 2 ) ; D.H.
Baldwin
& Co.,
6 3 FEDERAL RESERVE BULLETIN 2 8 0
(1977).
4 . D.H.
Baldwin
& Co.,
6 3 FEDERAL RESERVE BULLETIN
280
(1977). The Board has invited public comment on a proposal to
reexamine this position. 52 Federal Register 36,041 (1987).
5. See, e.g., F.N.B. Corporation, supra; The Chase Manhattan
Corporation, 71 FEDERAL RESERVE BULLETIN 462 (1985); Interstate
Financial Corp., supra.
6. The Board is authorized by statute and regulation to waive or
shorten the usual notice and comment period, as well as the hearing
requirements normally accorded section 4 applications, in the case of
failing thrift acquisitions. Under these provisions, the Board is required to determine, with the concurrence of the primary Federal
regulator of the thrift being acquired, that an emergency exists which
requires the Board to act immediately on an application to acquire a
failing thrift institution. 12 U.S.C. § 1843(c)(8); 12 C.F.R. § 225.23(i).
The Board has waived the notice and hearing requirements of section
4(c)(8) in similar circumstances. First Pacific Investments
Limited,
supra; F.N.B. Corporation, supra.
Legal Developments
Based upon the Board's review of the record, the
Board has determined that there are substantial benefits to the public in this case that outweigh the generalized adverse effects found by the Board in D.H.
Baldwin. In particular, Michigan National's acquisition of Beverly Hills Savings will provide Beverly
Hills Savings with the financial and managerial resources to enable it to continue its operations and its
service to the convenience and needs of its community.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In evaluating such a proposal, the Board will consider, among
other factors, the effect of the acquisition on the
tangible primary capital of the applicant and the acquired institution.
Michigan National's primary capital on a tangible
basis is above levels specified in the Board's Capital
Adequacy Guidelines. While the proposal would reduce Michigan National's tangible primary capital, its
capital position would continue to be well in excess of
minimum requirements under the Guidelines, and
Michigan National has indicated that it plans to restore
its capital position by internal capital generation or
otherwise to take into account the expansion effected
through this acquisition. Moreover, in accordance
with its prior rulings in this area, the Board expects
that Michigan National will cause Beverly Hills Savings to achieve and maintain levels of capital consistent with those generally applying to banking organizations as soon as possible, and in any case within one
year. 7
Beverly Hills Savings operates in the consolidated
Los Angeles metropolitan banking market. 8 Michigan
National does not control a depository institution in
that market. Accordingly, the Board has determined
that the acquisition would have no substantial adverse
effect on existing competition in any market. In addition, the Board concludes that consummation of this
proposal would not have a significant adverse effect on
probable future competition in any relevant market.
To guard against possible adverse effects of affiliation between a banking organization and a savings
and loan association, the Board conditions its approval
as follows:
89
1. Michigan National will operate Beverly Hills
Savings as a federal savings and loan association
having as its primary purpose the provision of
residential housing credit. Beverly Hills Savings will
limit its activities to those currently permitted to
thrift institutions under the Home Owners' Loan
Act, but shall not engage in any activity prohibited
to bank holding companies and their subsidiaries
under section 4(c)(8) of the BHC Act. 9
2. Beverly Hills Savings will not establish or operate
a remote service unit at any location outside of
California.
3. Beverly Hills Savings will not establish or operate
branches at locations not permissible for national
banks located in California.
4. Beverly Hills Savings will be operated as a
separate, independent, profit-oriented corporate entity and shall not be operated in tandem with any
other subsidiary of Michigan National. Michigan
National and Beverly Hills Savings will limit their
operations to effect this condition and will observe
the following conditions:
a. No banking or other subsidiary of Michigan
National will link its deposit-taking activities to
accounts at Beverly Hills Savings in a sweeping
arrangement or similar arrangement.
b. Neither Michigan National nor any of its subsidiaries will solicit deposits or loans for Beverly
Hills Savings, nor shall Beverly Hills Savings
solicit deposits or loans for any other subsidiary
of Michigan National.
5. Michigan National shall not change Beverly Hills
Savings' name to any title that might confuse the
public regarding its status as a nonbank thrift
institution. 10
6. Beverly Hills Savings will not convert its charter
to that of a national or state commercial bank
without the Board's prior approval.
7. To the extent necessary to insure independent
operation of Beverly Hills Savings and prevent the
improper diversion of funds, there shall be no transactions between Beverly Hills Savings and Michigan
National or any of its subsidiaries without the prior
approval of the Federal Reserve Bank of Chicago.
This limitation encompasses the transfer, purchase,
sale or loan of any assets or liabilities, but does not
include infusions of capital from Michigan National,
the payment of dividends by Beverly Hills Savings,
or the sale of residential real estate loans from
LETIN 8 1 7 ( 1 9 8 8 ) .
9. These limitations also apply to Beverly Hills Savings' service
corporation subsidiaries.
8. The consolidated Los Angeles metropolitan banking market is
approximated by the Los Angeles RMA.
(Order dated December 5, 1988).
7. See First Bancorporation
of Ohio, 74 FEDERAL RESERVE BUL-
10. See
Barnett
Banks,
Inc.,
7 5 FEDERAL RESERVE BULLETIN
90 Federal Reserve Bulletin • Februrarv 1989
Beverly Hills Savings to any subsidiary of Michigan
National.
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
would not result in conflicts of interests, unsound
banking practices, decreased or unfair competition,
undue concentration of resources, or other adverse
effects.
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of Beverly Hills Savings by Michigan National would result in substantial
and compelling public benefits that are sufficient to
outweigh any adverse effects that may reasonably be
expected to result from this proposal. Accordingly, the
application is approved subject to the conditions described in this Order and the record of the application.
The Board's decision in this case is subject to 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,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated 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 Chicago, pursuant to delegated authority.
By order of the Board of Governors, effective
December 30, 1988.
Voting for this action: Chairman Greenspan and Governors
Angell, Heller, Kelley, and LaWare. Absent and not voting:
Governors Johnson and Seger.
WILLIAM W . W I L E S
Secretary of the Board
M N C Financial, Inc.
Baltimore, Maryland
Order Approving Acquisition of a Federal Savings
Bank
MNC Financial, Inc., Baltimore, Maryland ("MNC"),
a bank holding company within the meaning of the
Bank Holding Company Act (the "BHC Act")
(12 U.S.C. § 1841 et seq.), has applied pursuant
to section 4(c)(8) of the BHC Act and section 225.23
of the Board's Regulation Y (12 C.F.R. § 225.23),
to acquire all of the voting shares of Virginia Federal Savings Bank, Richmond, Virginia ("Savings
Bank"), the successor to Virginia Federal Savings and
Loan Association, Richmond, Virginia ("Virginia
Federal"). 1
MNC, with total consolidated assets of $17.8 billion,
is the largest commercial banking organization in
Maryland. 2 It presently operates three banking subsidiaries.
Virginia Federal, with total assets of $662 million, is
the tenth largest savings institution in Virginia, and
operates 16 full-service offices in the state. 3
By letter dated December 22, 1988, the Federal
Home Loan Bank Board ("Bank Board") requested
that the Board approve this application to acquire
Virginia Federal under the Bank Board's Expedited
Case Processing Program for failing thrift institutions.
The Bank Board stated that Virginia Federal is insolvent and urged the Board to approve this application in
order to restore public confidence in Virginia Federal,
maintain confidence in the savings and loan industry
generally, and stabilize the daily increasing potential
cost to the FSLIC. The Bank Board based its request
on both the deteriorating and volatile condition of
Virginia Federal, and on the substantial public benefits
of the proposal, including the significant and stabilizing capital injections proposed by MNC and the
FSLIC.
In light of the condition of Virginia Federal, the
Board promptly caused notice of the application to be
published in the Federal Register (53 Federal Register
49,230 (1988)). 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.
Section 4(c)(8) of the BHC Act authorizes a bank
holding company to engage in, or acquire a company
that engages in, activities determined by the Board to
be " s o closely related to banking or managing or
controlling banks as to be a proper incident thereto."
The Board has determined previously that the operation of a thrift institution is closely related to banking,
and reaffirms that determination in this Order. 4
1. Virginia Federal currently operates as a mutual thrift institution
and will be converted to a federal stock savings bank on a supervisory
basis. Virginia Federal will then be merged with and into Savings
Bank, a de novo federal stock savings bank, and will retain its Federal
Savings and Loan Insurance Corporation ("FSLIC") deposit insurance.
2. Asset data are as of September 30, 1988.
3. Asset data are as of June 30, 1988.
4 . See,
e.g.,
Citicorp,
First Pacific Investments
7 2 FEDERAL RESERVE BULLETIN 7 2 4 ( 1 9 8 6 ) ;
Limited, 72 FEDERAL RESERVE BULLETIN
3 4 2 ( 1 9 8 6 ) ; F . N . B . C o r p o r a t i o n , 7 1 FEDERAL RESERVE BULLETIN 3 4 0
(1985); Old Stone Corporation, 69 FEDERAL RESERVE BULLETIN 812
(1983); Interstate Financial Corp., 68 FEDERAL RESERVE BULLETIN
3 1 6 ( 1 9 8 2 ) ; D.H.
(1977).
Baldwin
& Co.,
6 3 FEDERAL RESERVE BULLETIN 2 8 0
Legal Developments
In D.H. Baldwin & Co.,5 however, the Board determined that, as a general matter, the operation of a
savings and loan association is not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrift institutions were not outweighed by the potential public
benefits. In individual cases involving failing thrifts,
the Board has found that the balance of public benefits
was favorable on the basis that the adverse effects of
the affiliation would be overcome by the public benefits of preserving the failing thrift institution as a
competitive entity in the market and ensuring public
confidence. 6 The 1982 Garn-St Germain Act recognized the Board's authority under section 4(c)(8) of the
BHC Act to approve such acquisitions by authorizing
the Board in these cases to dispense with the usual
notice and hearing requirements of section 4(c)(8)
under appropriate emergency circumstances.
Based upon the Board's review of the record, the
Board has determined that there are substantial benefits to the public in this case that outweigh the generalized adverse effects found by the Board in D.H.
Baldwin. In particular, MNC's acquisition of Savings
Bank will provide Savings Bank with the financial and
managerial resources to enable it to continue its operations and its service to the convenience and needs of
its community.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In evaluating such a proposal, the Board will consider, among
other factors, the effect of the acquisition on the
tangible primary capital of the applicant and the acquired institution.
MNC's primary capital on a tangible basis is above
levels specified in the Board's Capital Adequacy
Guidelines. While the proposal would reduce MNC's
tangible primary capital, its capital position would
continue to be well in excess of minimum requirements under the Guidelines. Moreover, in accordance
with its prior rulings in this area, the Board expects
that MNC will cause Savings Bank to achieve and
maintain levels of capital consistent with those gener-
5 . D.H.
Baldwin
& Co.,
6 3 FEDERAL RESERVE BULLETIN
280
(1977). The Board has invited public comment on a proposal to
reexamine this position. 52 Federal Register 36,041 (1987).
6. See, e.g., F.N.B. Corporation, supra; The Chase Manhattan
Corporation,
7 1 FEDERAL RESERVE BULLETIN 4 6 2 ( 1 9 8 5 ) ;
Financial Corp., supra.
Interstate
91
ally applying to banking organizations as soon as
possible, and in any case within one year. 7
The proposed acquisition would not substantially
lessen or otherwise decrease competition in any relevant market. On the contrary, the acquisition would
have the substantial beneficial effect of preserving
Virginia Federal as an effective competitor. In view of
the fact that MNC's bank subsidiaries and Virginia
Federal operate in separate banking markets, the
Board concludes that the acquisition would have no
substantial adverse effect on existing competition in
any market. Moreover, while both MNC and Virginia
Federal offer mortgage lending in the Richmond banking market, consummation of the proposal would have
a de minimis effect on existing competition. In addition, the Board concludes that consummation of this
proposal would not have a significant adverse effect on
probable future competition in any relevant market.
To guard against possible adverse effects of affiliation between a banking organization and a savings
institution, the Board conditions its approval as follows:
1. MNC will operate Savings Bank as a federal
savings bank having as its primary purpose the
provision of residential housing credit. Savings
Bank will limit its activities to those currently permitted to thrift institutions under the Home Owners'
Loan Act, but shall not engage in any activity
prohibited to bank holding companies and their
subsidiaries under section 4(c)(8) of the BHC Act. 8
2. Savings Bank will not establish or operate a
remote service unit at any location outside of Virginia.
3. Savings Bank will not establish or operate
branches at locations not permissible for national
banks located in Virginia.
4. MNC shall not change Savings Bank's name to
any title that might confuse the public regarding its
status as a nonbank thrift institution. 9
5. Savings Bank will not convert its charter to that of
a national or state commercial bank without the
Board's prior approval. 10
7. See First Bancorporation of Ohio, 74 FEDERAL RESERVE BULLETIN 817 (1988).
8. These limitations also apply to Savings Bank's seven wholly
owned subsidiaries. MNC has committed to terminate any impermissible insurance activities of Savings Bank within two years of consummation of this proposal. During this two-year period, MNC will
limit the insurance agency activities of Savings Bank and its subsidiaries to the renewal of existing policies and those credit-related
insurance agency activities permitted under section 4(c)(8)(A) of the
BHC Act.
9. See
Barnett
Banks,
Inc.,
7 5 FEDERAL RESERVE BULLETIN
(Order dated December 5, 1988).
10. See Citicorp (Fidelity Federal Savings and Loan Association),
68 FEDERAL RESERVE BULLETIN 656 (1982). The Board notes that
MNC may acquire a bank in Virginia pursuant to relevant state law
92 Federal Reserve Bulletin • Februrarv 1989
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
would not result in conflicts of interests, unsound
banking practices, decreased or unfair competition,
undue concentration of resources, or other adverse
effects.
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of Savings Bank by
MNC would result in substantial and compelling public benefits that are sufficient to outweigh any adverse
effects that might reasonably be expected to result
from this proposal. Accordingly, the application is
approved subject to the conditions described in this
Order and the record of the application.
The Board's decision in this case is subject to 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,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated 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 Richmond, pursuant to delegated authority.
By order of the Board of Governors, effective
December 22, 1988.
"BHC Act") (12 U.S.C. § 1841 et seq.), has applied
pursuant to section 4(c)(8) of the BHC Act and section
225.23 of the Board's Regulation Y (12 C.F.R.
§ 225.23), to acquire all of the voting shares of First
Federal Savings and Loan Association of Jacksonville,
Jacksonville, Florida ("First Federal"); and subsequently to acquire South Florida Savings, A Federal
Savings and Loan Association, Miami, Florida
("South Florida"), by merger with First Federal. 1
Southeast, with total consolidated assets of $13.2
billion, is the third largest commercial banking organization in Florida. 2 It presently operates five banking
subsidiaries and engages in a number of nonbanking
activities.
First Federal, with total assets of $1.2 billion, is the
25th largest savings institution in Florida. It currently
operates 18 branches in Florida and controls five
service corporation subsidiaries. South Florida, with
total assets of $133 million, is the 60th largest savings
institution in Florida. It currently operates four
branches in Florida and controls three service corporation subsidiaries. 3
By letter dated December 14, 1988, the Federal
Home Loan Bank Board ("Bank Board") requested
that the Board approve Southeast's application to
acquire First Federal and South Florida. The Bank
Board stated that both thrifts are insolvent and have
incurred significant operating losses. The Bank Board
urged the Board to approve this application in order to
restore public confidence in the resulting thrift institu-
Voting for this action: Chairman Greenspan and Governors
Angell, Heller, Kelley, and LaWare. Absent and not voting:
Governors Johnson and Seger.
1. First Federal is currently operated as a mutual thrift institution,
and will be converted to a federal stock savings and loan association
on a voluntary supervisory basis. First Federal is qualified for such a
conversion under Federal Home Loan Bank Board regulations
(12 C.F.R. § 563b.24), because its liabilities exceed its assets under
generally accepted accounting principles and, upon consummation of
the proposed transaction, First Federal will become a viable entity
under 12 C.F.R. § 563b.26 South Florida will then be merged with
and into First Federal in a supervisory merger with Federal Savings &
Loan Insurance Corporation (the "FSLIC") assistance, pursuant to
an agreement to be entered into by the FSLIC, First Federal and
Southeast. First Federal will retain its FSLIC deposit insurance.
2. Asset data are as of June 30, 1988.
3. The service corporation subsidiaries of First Federal engage in
real estate investment and development, mortgage banking activities,
insurance brokerage and agency activities, and advertising, marketing, promotional and public relation services on behalf of First
Federal. The service corporation subsidiaries of South Florida engage
in real estate investment and development.
Southeast has committed to terminate any impermissible real estate
development activities within two years of consummation of this
proposal and will not undertake any new projects or investments
during this period. Southeast has also committed that, within two
years of consummation of its acquisition of First Federal, Southeast
will divest or terminate its general insurance agency activities, unless
during such period Southeast receives approval pursuant to an application under section 4(c)(8) of the BHC Act to retain such activities.
During this two-year period or unless authorization is granted pursuant to the BHC Act for broader activities, Southeast will limit the
insurance agency activities of First Federal and its subsidiaries to the
renewal of existing policies and those credit-related insurance agency
activities permitted under section 4(c)(8)(A) of the BHC Act.
JAMES M C A F E E
Associate Secretary of the Board
Southeast Banking Corporation
Miami, Florida
Order Approving Acquisition of Federal
Savings and Loan Associations
Southeast Banking Corporation, Miami, Florida
("Southeast"), a bank holding company within the
meaning of the Bank Holding Company Act (the
and section 3(d) of the BHC Act. Va. Code Ann. § 6.1-399 (1988);
12 U.S.C. § 1842(d). In these situations, the Board has relied on the
conditions listed above to address the potential adverse effects rather
than the more extensive tandem conditions applicable where the thrift
to be acquired is located in a state in which the applicant bank holding
company may not acquire a bank. See Letter from William W. Wiles
to Patrick Mulhern, Senior Vice President and General Counsel,
Citicorp (August 10, 1987).
Legal Developments
tion, maintain confidence in the savings and loan
industry generally, and stabilize the daily increasing
potential cost to the FSLIC. The Bank Board based its
request on both the deteriorating condition of the
thrifts and the substantial public benefits of the proposal, including the significant and stabilizing capital
injections proposed by Southeast and the FSLIC.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (53 Federal Register
41,412 (1988)). 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.
Section 4(c)(8) of the BHC Act authorizes a bank
holding company to engage in or acquire a company
that engages in activities determined by the Board to
be "so closely related to banking or managing or
controlling banks as to be a proper incident thereto."
The Board has determined previously that the operation of a thrift institution is closely related to banking,
and reaffirms that determination in this Order. 4
In D.H. Baldwin & Co.,5 however, the Board determined that, as a general matter, the operation of a
savings and loan association is not a proper incident to
banking because the potential adverse effects of generally allowing affiliations of banks and thrift institutions are not outweighed by the potential public benefits. In individual cases involving failing thrifts, the
Board has found that the balance of public benefits
was favorable on the basis that the adverse effects of
the affiliation would be overcome by the public benefits of preserving the failing thrift institution as a
competitive entity in the market and ensuring public
confidence. 6 The 1982 Garn-St Germain Act recognized the Board's authority under section 4(c)(8) of the
BHC Act to approve such acquisitions by authorizing
the Board in these cases to dispense with the usual
notice and hearing requirements of section 4(c)(8)
under appropriate emergency circumstances.
Based upon the Board's review of the record, the
Board has determined that there are substantial bene-
4 . See,
e.g.,
Citicorp,
First Pacific Investments
7 2 FEDERAL RESERVE BULLETIN 7 2 4 ( 1 9 8 6 ) ;
Limited, 72 FEDERAL RESERVE BULLETIN
3 4 2 ( 1 9 8 6 ) ; F.N.B.
Corporation,
7 1 FEDERAL RESERVE BULLETIN 3 4 0
( 1 9 8 5 ) ; Old stone
Corporation,
6 9 FEDERAL RESERVE BULLETIN 8 1 2
( 1 9 8 3 ) ; Interstate
Financial
Corp., 6 8 FEDERAL RESERVE BULLETIN
3 1 6 ( 1 9 8 2 ) ; D.H. Baldwin
& Co., 6 3 FEDERAL RESERVE BULLETIN 2 8 0
(1977).
5. D.H.
Baldwin
& Co.,
6 3 FEDERAL RESERVE BULLETIN
280
(1977). The Board has invited public comment on a proposal to
reexamine this position. 52 Federal Register 36,041 (1987).
6. See, e.g., F.N.B. Corporation, supra; The Chase Manhattan
Corporation,
7 1 FEDERAL RESERVE BULLETIN 4 6 2 ( 1 9 8 5 ) ;
Financial Corp., supra.
Interstate
93
ts to the public in this case that outweigh the generalized adverse effects found by the Board in D.H.
Baldwin. In particular, Southeast's acquisition of First
Federal and South Florida will provide them with the
financial and managerial resources to enable them as a
combined entity to continue to serve the convenience
and needs of their communities.
As the Board previously has noted, bank holding
companies contemplating expansion proposals are expected to maintain consolidated capital levels significantly above the minimums set forth in the Board's
Capital Adequacy Guidelines and without undue reliance on intangibles, particularly goodwill. In evaluating such a proposal, the Board will consider, among
other factors, the effect of the acquisition on the
tangible primary capital of the applicant and the acquired institution.
Southeast's primary capital on a tangible basis is
above levels specified in the Board's Capital Adequacy Guidelines. While the proposal would reduce
Southeast's tangible primary capital, its capital position would continue to be well in excess of minimum
requirements under the Guidelines, and Southeast has
indicated that it plans to restore its capital position by
internal capital generation or otherwise to take into
account the expansion effected through this acquisition. Moreover, the Board expects that Southeast will
cause First Federal to achieve and maintain levels of
capital consistent with those applying to banking organizations generally as soon as possible, and in any
case within approximately one year. 7
The proposed acquisitions would not substantially
lessen competition in any relevant market. On the
contrary, the acquisitions would have the substantial
beneficial effect of preserving the resulting merged
thrift institution as an effective competitor. In that
regard, Southeast and South Florida engage in deposit
taking and lending activities within the Miami-Fort
Lauderdale banking market. 8 In view of South Florida's small market share and the de minimis increase
in concentration resulting from this proposal, the
deteriorating condition of South Florida, and the fact
that 141 other bank and thrift institutions would re-
1. See First Bancorporation of Ohio, 74 FEDERAL RESERVE BULLETIN 817 (1988).
8. The Miami-Fort Lauderdale banking market is approximated by
Dade and Broward Counties. Within the Miami-Fort Lauderdale
banking market, Southeast is the largest depository institution among
banks and thrift institutions in the market with total deposits of $4.9
billion, representing approximately 9.4 percent of market deposits in
such institutions. South Florida is the 40th largest depository institution among banks and thrifts in the market, with total deposits of
$204.3 million, representing approximately 0.4 percent of the total
deposits in banks and thrifts in the market. Upon consummation of the
proposal, Southeast would control 9.8 percent of the total deposits of
banks and thrifts in the market. Market data are as of June 30, 1986.
94 Federal Reserve Bulletin • Februrarv 1989
main in the market, the Board concludes that the
acquisitions would have no substantial adverse effect
on existing competition in the Miami-Fort Lauderdale
banking market.
In the Jacksonville banking market, Southeast and
First Federal engage in deposit taking and lending
activities. 9 In view of the small increase in concentration resulting from this proposal, the deteriorating
condition of First Federal, and the fact that 23 other
bank and thrift institutions would remain in the market, the Board concludes that the acquisitions would
have no substantial adverse effect on existing competition in the Jacksonville banking market. In addition,
the Board concludes that consummation of this proposal would not have a significant adverse effect on
probable future competition in any relevant market.
Regarding the nonbanking activities of First Federal
and South Florida, consummation of the proposal
would have a de minimis effect on existing competition, and there are numerous competitors for these
services.
To guard against possible adverse effects of affiliation between a banking organization and a savings
and loan institution, the Board conditions its approval
as follows:
1. Southeast will operate First Federal as a federal
savings and loan association having as its primary
purpose the provision of residential housing credit.
First Federal will limit its activities to those permitted to thrift institutions under the Home Owners'
Loan Act, but shall not engage in any activity
prohibited to bank holding companies and their
subsidiaries under section 4(c)(8) of the BHC Act. 10
2. First Federal will not establish or operate a
remote service unit at any location outside of
Florida.
3. First Federal will not establish or operate
branches at locations not permissible for national
banks located in Florida.
4. Southeast shall not change First Federal's name
to any title that might confuse the public regarding
its status as a nonbank thrift institution. 11
5. First Federal will not convert its charter to that of
a national or state commercial bank without the
Board's prior approval.
The Board concludes that consummation of the
proposal, subject to the conditions set out above,
would not result in conflicts of interests, unsound
banking practices, unfair competition, undue concentration of resources, or other adverse effects.
Based upon the foregoing and other facts and circumstances reflected in the record, the Board has
determined that the acquisition of First Federal and
South Florida by Southeast would result in substantial
and compelling public benefits that are sufficient to
outweigh any adverse effects that may reasonably be
expected to result from this proposal. Accordingly, the
application is approved subject to the conditions described in this Order, applicable Bank Board approvals, and the record of the application.
The Board's decision in this case is subject to 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,
or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. This transaction shall not be consummated 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 Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
December 15, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Heller, Kelley, and LaWare. Absent and not
voting: Governor Angell.
JAMES M C A F E E
Associate Secretary of the Board
T h e Fuji B a n k ,
Limited T o k y o , J a p a n
9. The Jacksonville banking market is approximated by Duval
County plus Orange Park in Clay County. Within the Jacksonville
banking market, Southeast is the 7th largest depository institution
among banks and thrift institutions in the market, with total deposits
of $235.1 million, representing approximately 2.9 percent of market
deposits in such institutions. First Federal is the 4th largest depository
institution among banks and thrifts in the market, with total deposits
of $909.8 million, representing approximately 11.4 percent of the total
deposits in banks and thrifts in the market. Upon consummation of the
proposal, Southeast would control 14.3 percent of the total deposits of
banks and thrifts in the market. Market data are as of June 30, 1986.
10. These limitations also apply to First Federal's service corporation subsidiaries.
11. See
Barnett
Banks,
Inc.,
75 FEDERAL RESERVE BULLETIN
(Order dated December 5, 1988).
Order Approving Application to Acquire
24.9 Percent of the Shares of a Company Engaged
in Certain Securities and Futures Activities
The Fuji Bank, Limited, Tokyo, Japan ("Fuji"), a
registered bank holding company, has applied for the
Board's approval under section 4(c)(8) of the Bank
Holding Company Act ("BHC Act") (12 U.S.C.
§ 1843(c)(8)), and section 225.21(a) of the Board's
Regulation Y, 12 C.F.R. § 225.21(a), to acquire 24.9
Legal Developments
percent of the outstanding voting shares of Kleinwort
Benson Government Securities, Inc., Chicago, Illinois
("Company"). Fuji will acquire the shares from Kleinwort Benson Group pic, London, United Kingdom
("Kleinwort"), which currently owns 100 percent of
Company. Company engages in the following activities that the Board has determined by regulation to be
closely related to banking and generally permissible
for bank holding companies:
(1) underwriting and dealing in obligations of the
United States, general obligations of states and their
political subdivisions, and other obligations ("bankeligible securities"), pursuant to 12 C.F.R.
§ 225.25(b)(16);1
(2) purchasing and selling futures, forward and options contracts for its own account on bank-eligible
securities for hedging purposes in accordance with
12 C.F.R. § 225.142;
(3) providing portfolio investment advice and research and furnishing general economic information
and advice, general economic statistical forecasting
services and industry studies pursuant to 12 C.F.R.
§§ 225.25(b)(4)(iii) and (iv) in connection with and as
an incident to the proposed bank-eligible securities
activities; and
(4) acting as a futures commission merchant
("FCM") for affiliated and nonaffiliated persons in
the execution and clearance on major commodity
exchanges of futures contracts and options on futures contracts for bullion, foreign exchange, government securities, certificates of deposit, and other
money market instruments that a bank may buy
or sell in the cash market for its own account; and
providing investment advice to institutional customers in conjunction therewith as permitted by
12 C.F.R. §§ 225.25(b)(18) and (19), respectively.2
In addition, Fuji has also applied for approval to
acquire indirectly through Company one percent of the
voting shares of Liberty Brokerage, Inc., New York,
New York, an inter-dealer blind broker of government
securities.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 26,663 (1988)).
The time for filing comments has expired, and the
1. Company also engages in the following incidental activities:
engaging in repurchase and reverse repurchase transactions and
collateralized bank-eligible securities borrowing and lending transactions.
2. Until Company becomes a registered FCM, Fuji proposes that
Company continue to receive customer orders to purchase and sell
financial contracts and pass them on to registered FCM's for execution, clearing and settlement for a fee. Company would not take a
position as principal in such contracts.
95
Board has considered the application in light of the
public interest factors set forth in section 4(c)(8) of the
BHC Act.
Fuji, with total consolidated assets equivalent to
approximately $326.4 billion, is the fifth largest banking organization in the world. 3 Fuji owns a bank
subsidiary in New York City, and operates branches in
New York and Chicago, and agencies in Los Angeles,
Houston, San Francisco and Atlanta. Fuji engages in
various activities in the United States under sections
4(c)(8) and 4(c)(9) of the BHC Act and the Board's
Regulations Y and K (12 C.F.R. Parts 225 and 211,
respectively).
In acting on Fuji's proposed acquisition, the Board
must consider whether the standards enumerated in
section 4(c)(8) of the BHC Act are satisfied. As noted
above, the Company's activities have previously been
determined by the Board to be closely related to
banking within the meaning of section 4(c)(8) of the
BHC Act. The Board must also find that the proposed
acquisition can reasonably be expected to produce
benefits to the public that outweigh the possible adverse effects. 12 U.S.C. § 1843(c)(8).
In prior decisions, the Board has expressed concern
about joint ventures, particularly those between bank
holding companies and securities firms. The Board has
previously stated that such relationships could potentially lead to a matrix of relationships between coventurers that could break down the legally mandated
separation of banking and commerce, create the possibility of conflicts of interest and concentration of
resources that the BHC Act was designed to prevent,
or impair or give the appearance of impairing, the
ability of the banking organization to function effectively as an independent and impartial provider of
credit. 4 Further, joint ventures must be carefully analyzed for any possible adverse effects on competition
and on the financial condition of the banking organization involved in the proposal. The Board has also
stated that such concerns are exacerbated where, as
here, the joint venture involves a relationship between
a bank holding company and a securities firm that is
more than a passive investor, because such an arrangement creates the potential for the mingling of
permissible and impermissible securities activities. 5
To address the possible adverse effects of Fuji's
association with Company, Fuji has made a series of
commitments which are consistent with prior Board
3. Asset data are as of March 31, 1988. Banking data are as of
December 31, 1987. Ranking is as of December 31, 1986.
4. See e.g., Independent Bankers Financial Corporation, 72 FEDERAL RESERVE BULLETIN 6 6 4 ( 1 9 8 6 ) ; a n d
Amsterdam-Rotterdam
Bank, N.V.,
7 0 FEDERAL RESERVE BULLETIN 8 3 5 ( 1 9 8 4 ) .
5. Id.
96 Federal Reserve Bulletin • Februrarv 1989
decisions in this area. These commitments require a
separation between the activities of the bank holding
company and the impermissible activities of the nonbanking joint venture partner (in this case Klein wort).
While Fuji's commitments are slightly different than
in prior cases, in light of the temporary nature of the
joint venture, the Board believes that the commitments adequately separate Company's permissible securities activities from the impermissible activities of
Kleinwort's other subsidiaries. In this case, Fuji states
that the parties do not intend to enter into the transaction for the purpose of being in business together.
Rather, the parties expect that either Fuji or Kleinwort
will divest its interest in Company by year-end 1989,
or shortly thereafter.
Accordingly, the Board concludes that no adverse
effects would be likely to result from the proposal
which would warrant denial of the application.
With regard to competitive issues, Fuji and Company do not currently compete with each other in any
market either in the United States or abroad. Accordingly, consummation of the proposed transaction
would not eliminate any existing competition between
Fuji and Company.
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources. 6 In accordance with the principles of national treatment and
competitive equity, the Board has stated that it expects a foreign bank to meet the same general standards of financial strength as domestic bank holding
companies and to be able to serve as a source of
strength to its United States banking operations. 7 In
considering applications of foreign banking organizations, the Board has noted that foreign banks operate
outside the United States in accordance with different
regulatory and supervisory requirements, accounting
principles, asset quality standards, and banking practices and traditions, and that these differences have
6 . 12 C . F . R . § 2 2 5 . 2 4 ; Bayerische
Vereinsbank
RESERVE BULLETIN 155, 156 ( 1 9 8 7 ) .
AG,
7 3 FEDERAL
7. Toyo Trust and Banking Co., Ltd., 74 FEDERAL RESERVE
BULLETIN 623 (1988); Taiyo Kobe Bank, Ltd., 74 FEDERAL RESERVE
BULLETIN 621 (1988); The Long-Term Credit Bank of Japan, Limited,
74 FEDERAL RESERVE BULLETIN 573 (1988); The Sanwa Bank, Limited, 74 FEDERAL RESERVE BULLETIN 578 (1988); Sumitomo Trust &
Banking
Co.,
Ltd.,
7 3 FEDERAL RESERVE BULLETIN 7 4 9
(1987);
Ljubljanska Banka-Associated Bank, 12 FEDERAL RESERVE BULLETIN 489 (1986); The Mitsubishi Trust and Banking Corporation, 72
FEDERAL RESERVE BULLETIN 256 (1986); The Industrial Bank of
Japan,
Ltd.,
72 FEDERAL RESERVE BULLETIN 7 1 ( 1 9 8 6 ) ; a n d
The
Mitsubishi Bank, Limited, 70 FEDERAL RESERVE BULLETIN 518
(1984). See also, Policy Statement on Supervision and Regulation of
Foreign-Based Bank Holding Companies, Federal Reserve Regulatory Service f 4-835 (1979).
made it difficult to compare the capital positions of
domestic and foreign banks. The Board, however,
recently adopted a proposal to supplement its consideration of capital adequacy with a risk-based system
that has been agreed to by the member countries of the
Basle Committee on Banking Regulations and Supervisory Practices and the other domestic federal banking agencies. 8 The Japanese Ministry of Finance in
April of this year acted to implement for Japanese
banking organizations the risk-based capital framework developed by the Basle Committee. The Board
considers the Basle Committee proposal an important
step toward a more consistent and equitable international standard for assessing capital adequacy.
In this case, the primary capital ratio of Fuji, as
publicly reported, is well below the 5.5 percent minimum level specified in the Board's Capital Adequacy
Guidelines. After making adjustments to reflect Japanese banking and accounting practices, however, including consideration of a portion of the unrealized
appreciation in Fuji's portfolio of equity securities
consistent with the principles in the Basle capital
framework, Fuji's capital ratio meets United States
standards.
The Board has also considered several additional
factors that mitigate its concern in this case. The
Board notes that the application involves nonbanking
activities that require a small commitment of capital
and that Fuji's bank in the United States is among the
more strongly capitalized banking organizations in the
United States. The Board notes further that Fuji is in
compliance with the capital and other financial requirements of Japanese banking organizations. In this
regard, the Board has considered as favorable factors
that, in anticipation of implementation of the Basle
Committee risk-based capital framework, Fuji has,
through the issuance of common stock and retention of
earnings increased its equity capital by almost $1.2
billion in its latest fiscal year and that Fuji's capital
improvement program is consistent with meeting the
standards in the Basle Committee capital framework
for 1990 and 1992.
Based on these and other facts of record, the Board
concludes that financial considerations are consistent
with approval of the application.
Consummation of Fuji's proposal would provide
increased convenience to Company's customers and
gains in efficiency. In addition, the Board expects that
the de novo entry of Fuji into the market for these
services would increase the level of competition
among providers of these services. Accordingly, the
Board has determined that the performance of the
8. 53 Federal Register 8,549 (1988).
Legal Developments
proposed activities by Company can reasonably be
expected to produce benefits to the public.
The Board believes that the proposal is not likely to
result in decreased or unfair competition, conflicts of
interests, unsound banking practices, concentration of
resources, or other adverse effects. Based on the
foregoing and other facts of record, 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. Accordingly, the Board has determined that
the application should be, and hereby is, approved.
This determination is further subject to all of the
conditions set forth in the Board's Regulation Y,
including those in sections 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 BHC Act and the Board's regulations and orders
issued thereunder, or to prevent evasion thereof.
The Primary Dealers Act of 1988, enacted as part of
the Omnibus Trade and Competitiveness Act of 1988,
prohibits ownership or control of a primary dealer by
a foreign person from a country that does not accord
U.S. financial institutions the same competitive opportunities as it affords to domestic companies with
respect to the underwriting and distribution of government debt instruments. In this case, Fuji proposes
(i) to acquire 24.9 percent of the voting shares of
Company;
(ii) to hold subordinated debt of Company;
(iii) to provide capital support to Company if
necessary;
(iv) to acquire an option to purchase up to 80
percent of Company; and
(v) to have representation on the board of directors and the executive committee of Company.
In the light of these facts, under a reasonable
construction of the term control the Board is likely to
find that Fuji controls Company. It is not necessary,
however, to make a control determination at this time
as the Primary Dealers Act does not become effective
until August 23, 1989, and then only if it were to be
determined that the home country of Fuji does not
accord U.S. institutions the same competitive opportunities as it affords to domestic companies in its
government debt market.
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 New
York, pursuant to delegated authority.
By order of the Board of Governors, effective
December 19, 1988.
97
Voting for this action: Chairman Greenspan and Governors
Angell, Heller, Kelley, and LaWare. Voting against this
action: Governor Seger. Absent and not voting: Governor
Johnson.
JAMES M C A F E E
Associate Secretary of the Board
Dissenting Statement of Governor Seger
I dissent from the Board's action in this case. I believe
that foreign banking organizations whose primary capital, based on U.S. accounting principles, is below the
Board's minimum capital guidelines for U.S. banking
organizations have an unfair competitive advantage in
the United States over domestic banking organizations. In my view, such foreign organizations should
be judged against the same financial and managerial
standards, including the Board's capital adequacy
guidelines, as are applied to domestic banking organizations. The majority concludes that Applicant's primary capital meets United States standards. To do so,
however, the majority makes adjustments that are not
available for U.S. banks under guidelines that have not
yet become effective for U.S. or foreign banking
organizations.
In addition, I am concerned that while this application would permit a large Japanese banking organization to acquire a large securities dealer in the U.S.,
U.S. banking organizations are not permitted to make
comparable acquisitions in Japan. While some progress is being made in opening Japanese markets to
U.S. banking organizations, U.S. banking organizations and other financial institutions, in my opinion,
are still far from being afforded a full opportunity to
compete in Japan.
December 19, 1988
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Chemical Banking C o r p o r a t i o n
N e w York, N e w Y o r k
Order Approving Acquisition of a Bank Holding
Company, Banks, and Nonbanking
Subsidiaries
Chemical Banking Corporation, New York, New
York, a bank holding company within the meaning of
the Bank Holding Company Act (the "Act")
(12 U.S.C. § 1841 et seq.), has applied for the Board's
approval under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire Horizon Bancorp, Morristown, New Jersey ("Horizon"), and thereby indi-
98 Federal Reserve Bulletin • Februrarv 1989
rectly to acquire Horizon's four subsidiary banks. 1
Applicant has also applied under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) to indirectly acquire Horizon's two nonbanking subsidiaries: Horizon Brokerage Services, Inc., Morristown. New Jersey, engaged
in discount brokerage activities; and Horizon Trust
Company of Florida, N.A., Boca Raton, Florida,
engaged in providing corporate trust operations and
services.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
duly published (53 Federal Register 43,037 (1988)).
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors set forth in
sections 3(c) and 4(c)(8) of the Act (12 U.S.C.
§§ 1842(c) and 1843(c)(8)).
Applicant, with $40.9 billion in domestic deposits, is
the fourth largest banking organization in the United
States. Applicant ranks third in the state of New York,
with deposits representing 10.7 percent of the total
deposits in commercial banks in the state. Applicant
also ranks third in the state of Texas, controlling 9.4
percent of the total deposits in commercial banks in
the state. Horizon is the fifth largest commercial
banking organization in New Jersey, with total deposits of $3.6 billion, representing 5.4 percent of the total
deposits in commercial banks in New Jersey. 2
The Board has previously determined that the acquisition of a New Jersey bank holding company by a
New York bank holding company is specifically authorized by the statute laws of New Jersey, subject to
the determination by the New Jersey Commissioner of
Banking that the specific proposal is consistent with
the New Jersey banking statute. 3 Based on the foregoing, the Board has determined that the proposed
acquisition is specifically authorized by the statute
laws of New Jersey and that Board approval of the
proposal is not barred by the Douglas Amendment to
the BHC Act (12 U.S.C. § 1842(d)), subject to the
New Jersey Commissioner's specific determination
that the proposal is consistent with the New Jersey
interstate banking statute. 4
1. Applicant will acquire Horizon through a merger of New Jersey
Holdings, Inc., a wholly owned subsidiary of Applicant, with and into
Horizon.
Horizon's bank subsidiaries, all located in New Jersey, are Horizon
Bank, N.A., Morristown; Horizon Trust Company, N.A., Morristown; Marine National Bank, Pleasantville; and Princeton Bank,
Princeton.
2. National and state deposit data are as of June 30, 1988.
3. N.J. Stat. Ann. § 17:9A-370 et seq. (West 1988); National
Westminster Bank PLC, 74 FEDERAL RESERVE BULLETIN 142 (1988).
4. Horizon owns Princeton Bank of Pennsylvania, Philadelphia,
Pennsylvania ("PBP"). Pennsylvania law, however, does not currently permit New York bank holding companies to acquire banks in
Pennsylvania. Accordingly, Horizon has agreed to dissolve PBP prior
Applicant competes with Horizon in the Metropolitan New York - New Jersey banking market. 5 Applicant is the fourth largest of 155 commercial banking
organizations in the market, with deposits of $23.3
billion, controlling 9.7 percent of total deposits in
commercial banks in the market. 6 Horizon is the 25th
largest commercial banking organization in the market, with deposits of $1.6 billion, controlling 0.7 percent of total deposits in commercial banks in the
market. The Metropolitan New York - New Jersey
market is considered unconcentrated, with a Herfindahl-Hirschman Index ( " H H I " ) of 686, which would
increase by 13 points to 699 upon consummation of the
proposal. On the basis of the foregoing, the Board
concludes that consummation of the proposal would
not have a substantial adverse competitive effect in the
Metropolitan New York - New Jersey banking market.
The Board also concludes that consummation of the
proposal would not have a significant adverse effect on
probable future competition in any relevant banking
market.
Section 3(c) of the Act requires in every case that
the Board consider the financial resources of the
applicant and the bank or bank holding company to be
acquired. The Board has stated and continues to
believe that capital adequacy is an especially important factor in the analysis of bank holding company
expansion proposals. The Board expects banking organizations contemplating expansion proposals to
maintain strong capital levels substantially above the
minimum levels specified in the Board's Capital Adequacy Guidelines without significant reliance on intangibles, particularly goodwill. 7
The Board carefully analyzes the effect of expansion
proposals on the preservation or achievement of
strong capital levels and has adopted a policy that
there should be no significant diminution of financial
strength below these levels for the purpose of effecting
major expansion proposals. 8 To achieve full compli-
to consummation. The Pennsylvania Department of Banking has
approved the plan of dissolution.
5. The Metropolitan New York - New Jersey market includes New
York City; Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, and
Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset,
Sussex, Union, and Warren Counties in New Jersey; and parts of
Fairfield County in Connecticut.
6. Market deposit data are as of June 30, 1986.
7. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985),
71 FEDERAL RESERVE BULLETIN 4 4 5 ( 1 9 8 5 ) .
8. Thus, for example, the Board has generally approved proposals
involving a decline in capital only where the applicants have promptly
restored their capital to pre-acquisition levels following consummation of the proposals and have implemented programs of capital
improvement to raise capital significantly above minimum levels. See,
e.g., Citicorp, 72 FEDERAL RESERVE BULLETIN 724 (1986); Security
Legal Developments
ance with this policy, the Board has required, as a
condition for approval of expansion proposals, that a
substantial majority of the cash outlay for an acquisition be supported by the issuance before consummation of an equal amount of new equity capital, with the
remaining portion of the cash outlay supported by the
issuance of new equity capital within a short period of
time thereafter. 9
Applicant proposes to acquire Horizon through a
cash purchase amounting to approximately $642 million. While the proposal will result in a lessening of the
overall capital strength of Applicant, Applicant has
taken, and has committed to take in the near term,
substantial steps to satisfy the Board's policy against
declines in necessary capital strength to support expansion proposals. Applicant already has issued $200
million of perpetual preferred stock and $150 million of
mandatory convertible debt. It will issue $150 million
of subordinated debt within one year of consummation. In addition, the Board has relied on assurances of
Applicant that it plans to further strengthen its equity
capital in the near future.
The Board has also considered several additional
factors that bear on the financial assessment of this
case. Initially, the Board notes that this acquisition is
of a company that is in strong condition and that the
acquisition, in conjunction with asset reductions Applicant has already made, should result in an overall
strengthening of Applicant's asset structure. The
Board has also considered that Applicant negotiated
the terms of this agreement before the Board had
announced its policy regarding diminution in capital
strength to support expansion proposals. 10 Moreover,
taking into account the substantial steps already taken
and proposed to be taken by Applicant to improve its
capital position, Applicant will be in compliance with
the 1990 transitional risk-based capital requirements
established by the Basle Committee on Banking Regulations and Supervisory Practices at consummation
of this proposal and appears well positioned to meet
the Basle Committee's 1992 minimum ratios in the
near future.
Pacific
Corporation,
7 2 FEDERAL RESERVE BULLETIN 8 0 0 (1986).
See
also Security Banks of Montana, 71 FEDERAL RESERVE BULLETIN 246
(1985).
9. The Bank of New York Company, Inc., 74 FEDERAL RESERVE
99
Finally, and most significantly, the Board expects
Applicant to continue to improve its equity capital
base through controlled asset growth, external capital
improvement initiatives, and sound dividend policies.
In acting on future proposals, the Board will consider
Applicant's progress in this regard.
Accordingly, on the basis of the above considerations, the particular facts of this case, and Applicant's continuing steps to strengthen its capital position, the Board concludes that financial factors are
consistent with approval of the proposal. Managerial
resources, convenience and needs considerations, and
future prospects of Applicant and Horizon are also
consistent with approval.
Applicant competes with Horizon in the provision of
discount brokerage and corporate trust operations and
services. In view of the small market share held by
Applicant and Horizon in the relevant markets and the
unconcentrated nature of the markets, the Board concludes that the proposal would not have any significant
adverse effect on existing or probable future competition in any relevant market for these services.
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 interest. Accordingly, the Board has determined that the balance of
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 the nonbanking
subsidiaries of Horizon.
Based on the foregoing and other facts of record and
in reliance on the commitments made by Applicant,
the Board has determined that consummation of the
transaction would be in the public interest and that the
applications under sections 3 and 4 of the Act should
be, and hereby are, approved. The transaction shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
pursuant to delegated authority.
By order of the Board of Governors, effective
December 2, 1988.
Voting for this action: Vice Chairman Johnson and Governors Seger, Heller, Kelley, and LaWare. Voting against this
action: Governor Angell. Absent and not voting: Chairman
Greenspan.
BULLETIN 2 5 7 , 2 6 4 - 2 6 5 ( 1 9 8 8 ) .
10. Applicant signed the agreement May 1,1986. The Board's policy
was announced May 19, 1986. See Citicorp, 72 FEDERAL RESERVE
BULLETIN 4 9 7 ( 1 9 8 6 ) .
JAMES M C A F E E
Associate Secretary of the Board
100 Federal Reserve Bulletin • Februrarv 1989
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 4
. . .
Norwest Corporation,
Minneapolis, Minnesota
Nonbanking
Activity/Company
Effective
date
HBE Leasing Corporation,
St. Louis, Missouri
December 12, 1988
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant(s)
American Chartered Bancorp,
Inc.,
Schaumburg, Illinois
American State Corporation,
Lawrenceburg, Indiana
ANB Bankcorp, Inc.,
Bristow, Oklahoma
Bainum Bancorp,
Glenwood, Arkansas
Barnett Banks, Inc.,
Jacksonville, Florida
BON, Inc.,
Moundridge, Kansas
Bosshard Financial Group, Inc.
La Crosse, Wisconsin
Cenvest, Inc.,
Meriden, Connecticut
Charter 95 Corporation,
Hudson, Wisconsin
Commbanc Shares, Inc.,
Erlanger, Kentucky
Bank(s)
Reserve
Bank
Effective
date
American Chartered Bank,
Schaumburg, Illinois
Chicago
December 16, 1988
American State Bank,
Lawrenceburg, Indiana
Citizens Bank, N.A.,
Sapulpa, Oklahoma
The Bank of Glenwood,
Glenwood, Arkansas
ANB Bankshares, Inc.,
Brusnwick, Georgia
Farmers State Bank and Trust
Company,
Canton, Kansas
Grand Marsh State Bank,
Grand Marsh, Wisconsin
Farmers State Bank,
Hillsboro, Wisconsin
First Central Bank,
Hartford, Connecticut
Merchants State Bank of North
Branch,
North Branch, Minnesota
The Community Bank,
Erlanger, Kentucky
Chicago
December 1, 1988
Kansas City
December 1, 1988
St. Louis
December 19, 1988
Atlanta
December 15, 1988
Kansas City
November 28, 1988
Chicago
December 2, 1988
Boston
December 9, 1988
Minneapolis
December 9, 1988
Cleveland
November 28, 1988
Legal Developments
101
Section 3—Continued
Applicant(s)
Community Bancorp, Inc.,
St. Charles, Michigan
Community Financial
Corporation,
Harbor Beach, Michigan
Dassel Investment Company,
Minneapolis, Minnesota
D & D Bancshares, Inc.,
Garrison, Iowa
Dumas Bancshares, Inc.,
Dumas, Arkansas
Evans Bancorp, Inc.,
Angola, New York
Exchange Bancorp, Inc.,
Chicago, Illinois
Fairfield County Bancorp, Inc.,
Stamford, Connecticut
Farmers State Bancorp,
Union City, Ohio
Fifth Third Bancorp,
Cincinnati, Ohio
First Busey Corporation,
Urbana, Illinois
First City Bank of Dallas,
Dallas, Texas
First Dakota Financial
Corporation,
Yankton, South Dakota
First Interstate Corporation of
Wisconsin,
Kohler, Wisconsin
First National Bancorp, Inc.,
Joliet, Illinois
Bank(s)
Community State Bank of
St. Charles,
St. Charles, Michigan
The Peoples State Bank of Caro,
Michigan,
Caro, Michigan
Fidelity State Bank,
New Prague, Minnesota
Mount Auburn Savings Bank,
Mount Auburn, Iowa
First State Bank,
Gould, Arkansas
The Evans National Bank
of Angola,
Angola, New York
Rankin State Bank,
Rakin, Illinois
Bank of Stamford,
Stamford, Connecticut
Farmers State Bank,
Losantville, Indiana
New Palestine Bancorp,
New Palestine, Indiana
Community Bank of Mahomet,
Mahomet, Illinois
First City Bank-Central
Arlington, N.A.,
Arlington, Texas
First City National Bank of
Arlington,
Arlington, Texas
First City National Bank of
Colleyville,
Colleyville, Texas
First City Bank-Forest Hill,
Forest Hill, Texas
First City National Bank
of Fort Worth,
Fort Worth, Texas
First Dakota National Bank,
Yankton, South Dakota
First Interstate Bank of Northern
Indiana, National Association,
South Bend, Indiana
Southwest Suburban Bank,
Bolingbrook, Illinois
Reserve
Bank
Effective
date
Chicago
December 7, 1988
Chicago
December 1, 1988
Minneapolis
December 20, 1988
Chicago
December 1, 1988
St. Louis
December 13, 1988
New York
December 21, 1988
Chicago
November 30, 1988
New York
December 1, 1988
Cleveland
December 16, 1988
Cleveland
December 21, 1988
Chicago
December 8, 1988
Dallas
November 29, 1988
Minneapolis
December 9, 1988
Chicago
November 28, 1988
Chicago
December 7, 1988
102 Federal Reserve Bulletin • Februrarv 1989
Section 3—Continued
Applicant(s)
First National Bancshares of
Winfield, Inc.,
Winfield, Kansas
First of America Bank
Corporation,
Kalamazoo, Michigan
First of America Bank
Corporation-Indiana,
Indianapolis, Indiana
First Paxton Bancorp, Inc.,
Paxton, Illinois
FIRST SUBURBAN BANCORP
CORPORATION,
May wood, Illinois
First Wisconsin Corporation,
Milwaukee, Wisconsin
IBT Bancorp, Inc.,
Mount Pleasant, Michigan
Jacob Schmidt Company,
St. Paul, Minnesota
American Bancorporation, Inc..
St. Paul, Minnesota
Klossner Bancorporation, Inc.,
Klossner, Minnesota
Lakeland Bancorp, Inc.,
Newfoundland, New Jersey
Lawton Partners Holding
Company,
Central City, Kentucky
Midwest Guaranty Bancorp, Inc.,
Birmingham, Michigan
Monticello Bankshares, Inc.,
Monticello, Kentucky
Moody Bank Holding Company,
Inc.,
Reno, Nevada
Mountain-Valley Bancshares,
Inc.,
Parsons, West Virginia
National City Bancshares, Inc.,
Evansville, Indiana
NBD Bancorp, Inc.,
Detroit, Michigan
Bank(s)
Reserve
Bank
Effective
date
Oxford Bancshares, Inc.,
Oxford, Kansas
Kansas City
December 2, 1988
Wabash Valley Bancorporation,
Inc.,
Peru, Indiana
Chicago
December 20, 1988
Cissna Park State Bank,
Cissna Park, Illinois
First State Bank of Alsip,
Alsip, Illinois
Chicago
December 8, 1988
Chicago
December 1, 1988
Metro Bancorp, Incorporated,
Phoenix, Arizona
Isabella Bank and Trust,
Mount Pleasant, Michigan
Barnesville Investment
Corporation,
Barnesville, Minnesota
Chicago
December 19, 1988
Chicago
December 20, 1988
Minneapolis
December 19, 1988
Houston State Holding, Inc.,
Houston, Minnesota
Lakeland State Bank,
Newfoundland, New Jersey
First United, Inc.,
Central City, Kentucky
Minneapolis
December 7, 1988
New York
December 21, 1988
St. Louis
December 13, 1988
Chicago
November 30, 1988
St. Louis
December 14, 1988
Dallas
November 28, 1988
Richmond
December 13, 1988
St. Louis
November 23, 1988
Chicago
December 9, 1988
Midwest Guaranty Bank,
Troy, Michigan
Bank of Clinton County,
Albany, Kentucky
Bank of Galveston, N.A.,
Galveston, Texas
The Moody National Bank of
Galveston,
Galveston, Texas
The First National Bank of
Parsons,
Parsons, West Virginia
The Farmers and Merchants
Bank,
Fort Branch, Indiana
NBD New Castle Bank,
Newark, Delaware
Legal Developments
103
Section 3—Continued
Applicant(s)
New Mexico Financial
Corporation,
Belen, New Mexico
Schneider Bancorporation,
Plattsmouth, Nebraska
Sovran Financial Corporation,
Norfolk, Virginia
Sovran Financial Corporation,
Norfolk, Virginia
State Bancshares, Inc.,
Springfield, Missouri
Summcorp,
Fort Wayne, Indiana
Texas Peoples National
Bancshares, Inc.,
Paris, Texas
United Security Bancorporation,
Chewelah, Washington
Wheeler County Bancshares,
Inc.,
Shamrock, Texas
Winter-Park Bancshares, Inc.,
Exeland, Wisconsin
WNB Bancshares, Inc.,
Odessa, Texas
Bank(s)
Reserve
Bank
Effective
date
Ranchers State Bank,
Belen, New Mexico
Kansas City
December 15, 1988
Plattsmouth State Bank,
Plattsmouth, Nebraska
First Bank of Marion County,
South Pittsburg, Tennessee
First National Bank of
Collierville,
Collierville, Tennessee
State Bank of Southwest
Missouri,
Springfield, Missouri
Summit Bank of Indianapolis,
Indianapolis, Indiana
Peoples National Bank,
Bogata, Texas
Kansas City
December 1, 1988
Richmond
December 19, 1988
Richmond
December 19, 1988
St. Louis
December 16, 1988
Chicago
December 1, 1988
Dallas
December 15, 1988
San Francisco
December 14, 1988
Dallas
December 19, 1988
Minneapolis
December 16, 1988
Dallas
November 25, 1988
Home Security Bank,
Sunny side, Washington
First Bank & Trust,
Shamrock, Texas
Owen-Curtiss Financial
Corporation,
Owen, Wisconsin
Gilman Corporation,
Gilman, Wisconsin
WNB Financial Corp.,
Odessa, Texas
Western National Bank,
Odessa, Texas
Section 4
Applicant
First Interstate Corporation of
Wisconsin,
Kohler, Wisconsin
First Tennessee National
Corporation,
Memphis, Tennessee
Nonbanking
Activity/Company
reinsurance of group credit
insurance through a joint
venture with American
Bankers Life Assurance
Company of Florida
Check Consultants, Inc.,
Memphis, Tennessee
Reserve
Bank
Effective
date
Chicago
November 28, 1988
St. Louis
December 9, 1988
104 Federal Reserve Bulletin • Februrarv 1989
Section 4—Continued
Applicant
Guaranty Bancshares
Corporation,
Shamokin, Pennsylvania
Hampton Park Corporation,
Romeoville, Illinois
Kermit State Bancshares, Inc.,
Kermit, Texas
Lake Crystal Bancorporation,
Inc.,
Lake Crystal, Minnesota
Mercantile Bankshares
Corporation,
Baltimore, Maryland
Monahans Bancshares, Inc.,
Monahans, Texas
Trustcorp, Inc.,
Toledo, Ohio
Wisdom Holding Corporation,
Salem, Missouri
Nonbanking
Activity/Company
Reserve
Bank
Effective
date
Brant Leasing, Inc.,
Trevose, Pennsylvania
Philadelphia
December 15, 1988
The Palwaukee Bank,
Prospect Heights, Illinois
First Bank of Romeoville,
Romeo ville, Illinois
Computer Center, Inc.,
Monahans, Texas
Lake Crystal National Agency,
Lake Crystal, Minnesota
Chicago
December 9, 1988
Dallas
November 25, 1988
Minneapolis
December 16, 1988
Richmond
December 5, 1988
Dallas
November 25, 1988
Cleveland
December 8, 1988
St. Louis
November 25, 1988
Benchmark Appraisal Group,
Inc.,
Columbia, Maryland
Computer Center, Inc.,
Monahans, Texas
Gotfryd Corp.,
Constantine, Michigan
Wisdom & Merrell Insurance
Agency, Inc.,
Rolla, Missouri
Sections 3 and 4
A
t
p
Brooke Holdings, Inc.,
Jewell, Kansas
Nonbanking
Activity/Company
Citizens State Bank,
Jewell, Kansas
APPLICATIONS APPROVED UNDER BANK MERGER
Reserve
Bank
Kansas City
Effective
date
December 1, 1988
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Legal Developments
Applicant
Cole Taylor Bank/Drovers,
Chicago, Illinois
First Community Bank, Inc.,
Princeton, West Virginia
PENDING CASES INVOLVING
Reserve
Bank
Bank(s)
Cole Taylor Bank/Main,
Wheeling, Illinois
Cole Taylor Bank/Skokie,
Skokie, Illinois
Cole Taylor Bank/Ford City,
Chicago, Illinois
Valley Bank & Trust Company,
Bluefield, West Virginia
Effective
date
Chicago
November 29, 1988
Richmond
November 29, 1988
THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the Federal Reserve
Governors is not named a party.
American Land Title Association v. Board of Governors, No. 88-1872 (D.C. Cir., filed December 16,
1988).
MCorp v. Board of Governors, No. CA3-88-2693-F
(N.D. Tex., filed October 28, 1988).
White v. Board of Governors, No. CU-S-88-623-RDF
(D. Nev., filed July 29, 1988).
VanDyke v. Board of Governors, No. 88-5280 (8th
Cir., filed July 13, 1988).
Whitney v. United States, et al., No. CA3-88-1596-H
(N.D. Tex., filed July 7, 1988).
Baugh v. Board of Governors, No. C88-3037 (N.D.
Iowa, filed April 8, 1988).
Bonilla v. Board of Governors, No. 88-1464 (7th Cir.,
filed March 11, 1988).
Cohen v. Board of Governors, No. 88-1061 (D.N.J.,
filed March 7, 1988).
Stoddard v. Board of Governors, No. 88-1148 (D.C.
Cir., filed February 25, 1988).
105
Banks in which the Board of
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-1686 (D.C. Cir., filed
November 19, 1987).
National Association of Casualty and Surety Agents,
et al., v. Board of Governors,Nos.
87-1644, 871801, 88-1001 88-1206, 88-1245, 88-1270 (D.C.
Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, March 18,
March 30, April 7, 1988).
Teichgraeber v. Board of Governors, No. 87-2505-0
(D. Kan., filed Oct. 16, 1987).
Northeast Bancorp v. Board of Governors, No. 871365 (D.C. Cir., filed July 31, 1987).
National Association of Casualty & Insurance Agents
v. Board of Governors, Nos. 87-1354, 87-1355 (D.C.
Cir., filed July 29, 1987).
The Chase Manhattan Corporation v. Board of Governors, No. 87-1333 (D.C. Cir., filed July 20, 1987).
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, Aug. 3, 1987).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
56
Financial and Business Statistics
WEEKLY REPORTING COMMERCIAL
CONTENTS
Domestic
Financial
Statistics
MONEY STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks
POLICY
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
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
BANKS
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
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
A35 Corporate profits and their distribution
A35 Total nonfarm business expenditures on new
plant and equipment
57
Federal Reserve Bulletin • Februrarv 1989
A36 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
A56 U.S. reserve assets
A56 Foreign official assets held at Federal Reserve
Banks
A57 Foreign branches of U.S. banks—Balance
sheet data
A59 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED
CONSUMER INSTALLMENT
A39 Total outstanding and net change
A40 Terms
FLOW OF FUNDS
A41 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A44 Summary of credit market debt outstanding
A45 Summary of credit market claims, by holder
Domestic
Nonfinancial
SELECTED
MEASURES
Statistics
A46 Nonfinancial business activity—Selected
measures
A47 Labor force, employment, and unemployment
A48 Output, capacity, and capacity utilization
A49 Industrial production—Indexes and gross value
A51 Housing and construction
A52 Consumer and producer prices
A53 Gross national product ami income
A54 Personal income and saving
International
SUMMARY
Statistics
STATISTICS
A55 U.S. international transactions—Summary
A56 U.S. foreign trade
STATES
CREDIT
A59
A60
A62
A63
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A63 Banks' own claims on unaffiliated foreigners
A64 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A65 Liabilities to unaffiliated foreigners
A66 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND
TRANSACTIONS
A67 Foreign transactions in securities
A68 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A69 Discount rates of foreign central banks
A69 Foreign short-term interest rates
A70 Foreign exchange rates
A71 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables
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
1987
Q4
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 In M2 5
11 In M3 only 6
1988
1988
Q2
Ql
Q3
July
Aug.
Sept.'
Oct.'
Nov.
institutions
2.5
1.4
2.4
7.8
3.5
2.9
1.5
8.3
5.8
7.2
-6.5
7.6
4.3
4.0
2.5
6.6
11.9
9.7
5.1
10.4
-2.9
-1.9
1.1
2.5
-1.9
-2.3
6.4
5.5
-.8
-2.6
10.3
5.7
2.0
1.1
-9.4
3.3
3.9
3.9
5.5
5.8
10.0
3.8
6.8
7.1
6.9
8.2'
6.3
7.7
7.7
9.r
8.7 r
5.2
3.6
5.7
7.2'
8.6r
9.0
3.7
7.0
11.5'
8.3'
.3
2.3
3.8
5.4'
9.3'
-.3
1.0
1.7
1.8
8.8
1.8
1.2
4.7
5.9
7.8
.3
6.4
6.3
n.a.
n.a.
3.9
11.9
7.8
8.2
8.2
7.4
3.1
13.7r
1.8
19.6
3.1
9.2
1.4
4.1
1.0
17.4
8.6
5.8
.7
14.8
10.5
6.3
13.7
3.4
11.0
11.8
6.7
8.8
10.2
21.5
9.6
8.8
25.5
7.6
12.6
21.1
-2.5
20.0
18.0
-2.5
23.4
14.6
19.0
17.1
1.7
-3.8
16.0
22.2
-2.4
21.3
13.7
6.6
14.0
9.3
5.8r
4.5
4.5
7.5'
1.3
3.6
5.4
6.1
-.7
-2.5
10.1
24.3
-8.9
9.0
14.0
-2.5
6.2
2.8
7.6
10.7
5.2
8.0
8.2r
5.3
8.2'
8.9^
11.ff
9.r
7.3
5.7'
9.r
6.3
10.3'
9.0'
7.2
12.3
7.7
-.7
5.4
8.6
7.1
n.a.
n.a.
6.0
components
Time and savings deposits
Commercial banks
Savings
.
Small-denomination time® . .
Large-denomination time '
Thrift institutions
15 Savings
16
Small-denomination time
17 Large-denomination time
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 aidded on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker-dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
i.r
institutions and money market funds. Also excludes all balances held by U.S.
commercial banks, money market funds (general purpose and broker-dealer),
foreign governments and commercial banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is the estimated amount of overnight RPs and Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
noniinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker-dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
officii institutions.
11. Changes calculated from figures shown in table 1.23.
A4 Domestic Financial Statistics • February 1989
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1988
1988
Factors
Sept.
Oct.
Nov.
Oct. 19
Oct. 26
256,979
255,178
258,858
255,563
226,629
224,058
2,571
8,525
7,191
1,334
0
2,722
1,154
17,951
11,062
5,018
18,606
225,724
225,210
514
7,482
7,160
322
0
2,337
1,219
18,416
11,064
5,018
18,667
229,131
228,390
741
7,332
7,106
226
0
2,883
1,186
18,327
11,061
5,018
18,718
225,964
225,964
0
7,186
7,186
0
0
2,283
1,721
18,409
11,063
5,018
18,667
236,382
392
237,156
398
240,343
401
7,684
236
5,954
240
1,848
404
1,848
352
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
254,497
255,673
259,022
259,508
258,005
259,428
225,397
225,094
303
7,198
7,116
82
0
2,359
828
18,715
11,064
5,018
18,681
225,868
224,865
1,003
7,460
7,116
344
0
2,346
1,094
18,904
11,063
5,018
18,694
228,318
227,958
360
7,221
7,116
105
0
2,966
1,082
19,435
11,062
5,018
18,704
228,920
228,482
438
7,229
7,102
127
0
3,500
1,169
18,690
11,061
5,018
18,714
229,119
229,119
0
7,102
7,102
0
0
2,757
1,401
17,626
11,060
5,018
18,724
231,005
229,259
1,746
7,730
7,102
628
0
2,367
495
17,831
11,060
5,018
18,734
237,898
401
236,965
396
237,185
395
238,635
401
240,626
404
240,657
401
242,179
399
5,268
246
5,470
236
5,623
238
6,197
234
5,509
216
5,209
233
5,288
289
5,137
262
1,746
380
1,982
314
1,915
389
2,109
402
1,929
333
1,887
305
1,897
328
1,932
552
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
U.S. government securities'
2
Bought outright
3
4
Held under repurchase agreements
Federal agency obligations
5
6
Bought outright
7
Held under repurchase agreements
Acceptances
8
Loans
9
Float
10
Other Federal Reserve assets
11
12 Gold stock 2
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 2
Deposits, other than reserve balances, with
Federal Reserve Banks
Treasury
17
18 Foreign
19
Service-related balances and
adjustments
Other
20
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks
7,632
7,617
7,955
7,567
7,524
7,946
8,225
7,751
7,717
8,042
37,087
36,361
37,316
36,443
36,210
35,981
38,558
37,886
36,231
35,738
Nov. 16
Nov. 23
Nov. 30
End-of-month figures
Wednesday figures
1988
1988
Nov.
Oct. 19
Oct. 26
Nov. 2
Nov. 9
257,722
261,971
257,243
253,025
256,369
259,289
259,803
255,616
261,971
225,638
223,041
2,597
8,767
7,116
1,651
0
2,275
1,690
19,352
11,062
5,018
18,693
232,702
228,701
4,001
8,384
7,102
1,282
0
2,328
389
18,168
11,059
5,018
18,743
226,242
226,242
0
7,186
7,186
0
0
3,546
1,855
18,414
11,063
5,018
18,679
224,263
224,263
0
7,116
7,116
0
0
1,980
1,005
18,661
11,063
5,018
18,693
225,785
224,553
1,232
7,544
7,116
428
0
2,611
1,095
19,334
11,062
5,018
18,703
227,837
227,837
0
7,116
7,116
0
0
3,079
1,968
19,289
11,062
5,018
18,713
229,178
229,178
0
7,102
7,102
0
0
3,406
3,057
17,060
11,060
5,018
18,723
228,077
228,077
0
7,102
7,102
0
0
1,570
920
17,947
11,061
5,018
18,733
232,702
228,701
4,001
8,384
7,102
1,282
0
2,328
389
18,168
11,059
5,018
18,743
235,527
389
237,094
397
242,472
402
237,648
396
236,948
394
237,930
397
239,924
404
240,480
401
241,883
399
242,472
402
13,023
338
6,151
301
5,198
251
5,532
239
5,690
226
4,467
223
6,792
186
5,384
182
4,631
287
5,198
251
1,605
358
1,662
348
1,613
398
1,629
337
1,662
600
1,662
351
1,649
279
1,648
354
1,613
259
1,613
398
Sept.
Oct.
23 Reserve Bank credit
261,855
24
U.S. government securities'
25
Bought outright
Held under repurchase agreements
26
27
Federal agency obligations
Bought outright
28
Held under repurchase agreements
29
Acceptances
30
Loans
31
Float
32
Other Federal Reserve assets
33
34 Gold stock 2
35 Special drawing rights certificate a c c o u n t . . .
36 Treasury currency outstanding
229,181
223,573
5,608
11,073
7,191
3,882
0
2,154
1,199
18,248
11,062
5,018
18,637
SUPPLYING RESERVE FUNDS
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings 2
Deposits, other than reserve balances, with
Federal Reserve Banks
39
Treasury
Foreign
40
41
Service-related balances and
adjustments
Other
42
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks
7,899
8,463
8,058
7,330
7,319
8,076
7,531
7,467
7,542
8,058
37,433
38,079
38,399
38,892
34,959
38,046
37,317
38,688
33,813
38,399
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched salc-purchase transactions.
2. Revised for periods between October 1986 and April 1987. At times during
this interval, outstanding gold certificates were inadvertently in excess of the gold
stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions1
Millions of dollars
Monthly averages 9
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 2
Total vault cash
Vault .
Surplus .
Total reserves
Required reserves
i
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 8
1985
1986
1987
Dec.
Reserve classification
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
27,620
22,953
20,522
2,431
48,142
47,085
1,058
1,318
56
499
37,360
24,079
22,199
1,879
59,560
58,191
1,369
827
38
303
37,673
26,155
24,449
1,706
62,123
61,094
1,029
777
93
483
36,509
25,873
24,172
1,700
60,681
59,641
1,040
2,578
246
2,107
37,907
25,717
24,084
1,632
61,991
61,103
888
3,083
311
2,554
37,992
26,479
24,763
1,715
62,756
61,749
1,007
3,440
376
2,538
36,911
26,895
25,054
1,841
61,965
61,012
953
3,241
423
2,653
37,213
26,726
24,940
1,786
62,153
61,181
972
2,839
421
2,059
36,421
27,1%
25,494
1,702
61,915
60,853
1,062
2,299
332
1,781
36,997
26,746
25,410
1,335
62,407
61,287
1,119
2,861
186
2,322
1988
Biweekly averages of daily figures for weeks ending
1988
July 27
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 2
Total vault cash*
Vault*
Surplus 5 ....
Total reserves
Required reserves
i
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
Aug. 10
Aug. 24
Sept. 7
Sept. 21
Oct. 5
Oct. 19
Nov. 2 r
Nov. 16
Nov. 30
37,399
26,647
24,889
1,758
62,288
61,085
1,203
3,268
390
2,663
37,343
26,571
24,762
1,810
62,104
61,309
796
3,339
407
2,748
36,422
27,400
25,513
1,887
61,935
60,954
981
3,245
431
2,671
37,273
26,351
24,555
1,797
61,827
60,705
1,123
3,093
432
2,482
37,625
26,787
25,054
1,733
62,679
61,896
783
2,971
408
2,075
36,527
26,924
25,063
1,861
61,590
60,442
1,148
2,438
433
1,704
36,678
27,612
25,806
1,806
62,484
61,509
975
2,204
337
1,681
36,078
26,825
25,309
1,516
61,387
60,260
1,128
2,353
285
1,931
38,143
26,221
25,022
1,200
63,165
61,562
1,603
3,233
180
2,838
35,981
27,259
25,814
1,446
61,795
61,160
635
2,562
178
1,863
1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for
float.
3. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
4. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
5. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
6. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
8. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.
A6 Domestic Financial Statistics • February 1989
1.13 SELECTED BORROWINGS. IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks1
Averages of daily figures, in millions of dollars
1988 week ending Monday
Maturity and source
Mar. 7
1
2
3
4
Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and U.S. government
agencies
For one day or under continuing contract
For all other maturities
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr. 18
Apr. 25
May 2
74,546
10,486
74,875
10,990
70,844
11,063
66,924
10,781
75,487
10,964
75,392
10,407
72,737
10,492
67,632
10,738
64,874
10,683
38,939
7,002
40,780
7,567
38,287
5,974
36,308
6,270
35,383
7,084
39,168
7,176
36,509
7,543
31,334
8,080
28,596
9,081
Repurchase agreements on U.S. government and federal
agency securities in immediately available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
12,705
13,797
12,181
14,617
12,768
14,374
13,570
13,645
13,685
15,050
13,367
14,082
13,659
14,777
13,648
16,544
13,705
17,892
24,513
9,613
24,704
10,403
24,364
12,275
25,634
10,562
24,025
11,956
25,567
9,572
25,461
10,279
24,743
9,705
25,708
9,324
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers
35,273
13,953
35,864
14,047
35,301
13,503
31,377
14,184
36,189
12,487
33,848
13,170
34,565
13,321
34,092
13,252
34,774
14,708
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies,
Policy Instruments
A7
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended credit 2
Adjustment credit
and
Seasonal credit 1
Federal Reserve
Bank
After 30 days of borrowing 3
First 30 days of borrowing
On
12/30/88
Effective
date
Previous
rate
On
12/30/88
Effective
date
Previous
rate
On
12/30/88
Effective
date
Previous
rate
6te
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
6
6 te
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
6
9.55
12/29/88
12/29/88
12/29/88
12/29/88
12/29/88
12/29/88
9.40
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
6te
8/10/88
8/9/88
8/9/88
8/9/88
8/11/88
8/9/88
6
8/10/88
8/9/88
8/9/88
8/9/88
8/11/88
8/9/88
6te
6
9.55
12/29/88
12/29/88
12/29/88
12/29/88
12/29/88
12/29/88
Effective date
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
12/15/88
9.40
Range of rates for adjustment credit in recent years
Effective date
In effect Dec. 31, 1977.
9
1978-—Jan.
20
May 11
12
July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1979-- J u l y 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
15
19
May 29
30
June 13
16
1980-- F e b .
Range (or
level)—
All F.R.
Banks
6
6-614
6te
6W-7
7
7-71/4
74
V
7%
8
8-8te
8te
8'/>-9'/>
9te
10
10-10te
10te
10te-l 1
11
11-12
12
F.R.
Bank
of
Effective date
N.Y.
6
6 te
6 te
7
7
m
7/
14
7/
34
8
8te
8
'/2
m
m
1
0
10 te
iote
11
11
1
2
12
12-13
13
12-13
12
11-12
13
13
13
12
11
1980—July
28
29
Sept. 26
Nov. 17
Dec. 5
1981—May
Nov.
Dec.
1982—July
Aug.
10-11
10
11
12
12-13
5
8
2
6
4
13-14
14
13-14
13
20
23
2
3
1W 1
1 —2
U<
!4
11-iite
11
iote
lo-iote
10
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
12
9te-10
9te
9-91/2
9
8te-9
8te-9
F.R.
Bank
of
N.Y.
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
10
10
11
12
13
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8te-9
9
8te-9
8te
8
9
9
8te
8te
8
14
14
13
13
12
1985—May 20
24
7te-8
7te
7te
7 te
1986—Mar.
7-7 Vi
7
6te-7
6
5te-6
5te
7
7
6te
6
5te
5te
11
5te-6
6
6
6
9
11
6-6te
6te
6te
6te
In effect December 30, 1988.
6te
6te
lite
lite
11
11
lOte
10
10
9te
9Vi
9
9
9
8te
8te
7
10
Apr. 21
July 11
Aug. 21
22
1987—Sept.
1988—Aug.
4
11
8te
11
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19, 1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate te percent above the rate on adjustment
credit. The program was reestablished on Feb. 18, 1986 and again on Jan. 28,
1987; the rate may be either the same as that for adjustment credit or a fixed rate
te percent higher.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
Range (or
level)—
All F.R.
Banks
somewhat above rates on market sources of funds ordinarily will be charged, but
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970-, Annual
Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8 DomesticNonfinancialStatistics • February 1989
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, ai
deposit interval
Depository institution requirements
after implementation of the
Monetary Control Act
Effective date
Net transaction accounts •
$0 million-$41.5 million
More than $41.5 million . . .
12/20/88
Nonpersonal time deposits5
By original maturity
Less than 1 Vi years
1 Vi years or more
10/6/83
10/6/83
Eurocurrency
All types
12/20/88
liabilities
1. Reserve requirements in effect on Dec. 31, 1988. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a Federal Reserve Bank indirectly on a
pass-through basis with certain approved institutions. For previous reserve
requirements, see earlier editions of the Annual Report and of the FEDERAL
RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. N o corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to NOW accounts and
11/13/80
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 20,
1988 for institutions reporting quarterly and Dec. 27, 1988 for institutions
reporting weekly, the amount was increased from $40.5 million to $41.5 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1988
1985
Type of transaction
1987
1986
Apr.
June
May
Sept.
Aug.
July
Oct.
U . S . TREASURY SECURITIES
Outright transactions (excluding
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
matched
22,214
4,118
0
3,500
22,602
2,502
0
1,000
18,983
6,050
0
9,029
423
0
0
0
0
0
0
0
0
0
0
0
515
0
0
0
0
0
0
0
1,280
0
0
0
375
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
1,349
0
19,763
-17,717
0
190
0
18,673
-20,179
0
3,658
300
21,502
-20,388
70
1,092
0
868
-1,688
0
0
0
1,646
-4,324
0
0
0
1,384
-1,826
0
0
0
1,033
-87
0
0
0
3,932
-4,2%
0
0
0
1,368
-1,646
0
0
0
1,669
-916
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,185
0
-17,459
13,853
893
0
-17,058
16,984
10,231
452
-17,974
18,938
3,661
0
-823
1,434
0
0
-1,102
3,724
0
0
-1,384
1,826
0
0
-997
0
0
0
-1,821
3,971
0
0
-1,368
1,646
0
0
-1,544
639
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
458
100
-1,857
2,184
236
0
-1,620
2,050
2,441
0
-3,529
950
1,017
0
-45
254
0
0
-387
400
0
0
0
0
0
0
-36
87
0
0
-2,111
325
0
0
0
0
0
0
-125
276
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
293
0
-447
1,679
158
0
0
1,150
1,858
0
0
500
966
0
0
0
0
0
-157
200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
26,499
4,218
3,500
24,078
2,502
1,000
37,171
6,802
9,099
7,160
0
0
0
0
0
0
0
0
515
0
0
0
0
0
1,280
0
0
375
0
0
Matched
transactions
25 Gross sales
26 Gross purchases
866,175
865,968
927,997
927,247
950,923
950,935
86,900
85,608
115,287
115,115
73,708
72,966
81,979
83,464
124,875
123,220
113,886
113,384
98,804
97,897
Repurchase
agreements2
27 Gross purchases
28 Gross sales
134,253
132,351
170,431
160,268
314,620
324,666
18,6%
11,088
15,871
23,478
10,520
5,334
22,978
28,164
0
0
35,800
30,191
4,715
7,727
20,477
29,989
11,235
13,476
-7,779
4,444
-3,186
-1,655
6,386
-3,544
0
0
162
0
0
398
0
0
276
0
0
120
0
0
11
0
0
0
0
0
67
0
0
10
0
0
0
0
0
75
22,183
20,877
31,142
30,522
80,353
81,351
4,243
1,447
4,771
7,566
5,083
2,843
12,355
14,594
0
0
12,107
8,225
2,223
4,454
1,144
222
-1,274
2,676
-2,807
2,239
-2,306
-10
3,882
-2,306
21,621
30,211
9,961
16,151
-10,585
6,683
-5,492
-1,665
10,268
-5,850
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright
transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations
36 Total net change in System Open Market
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10 DomesticNonfinancialStatistics • February 1989
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Wednesday
1988
Account
Nov. 2
Nov. 9
End of month
1988
Nov. 16
Nov. 23
Nov. 30
Sept.
Oct.
Nov.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
5
Other
6 Acceptances held under repurchase agreements . . .
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
11
Bonds
12
Total bought outright 2
13
Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
11,060
5,018
422
11,061
5,018
417
11,059
5,018
404
11,062
5,018
397
11,062
5,018
434
11,059
5,018
404
2,611
0
0
3,079
0
0
3,406
0
0
1,570
0
0
2,328
0
0
2,154
0
0
2,275
0
0
2,328
0
0
7,116
428
7,116
0
7,102
0
7,102
0
7,102
1,282
7,191
3,882
7,116
1,651
7,102
1,282
107,576
87,484
29,493
224,553
1,232
225,785
110,860
87,484
29,493
227,837
0
227,837
112,201
87,484
29,493
229,178
0
229,178
111,100
87,484
29,493
228,077
0
228,077
111,724
87,484
29,493
232.701
4,001
232.702
106,5%
87,484
29,493
223,573
5,608
229,181
106,064
87,484
29,493
223,041
2,597
225,638
111,724
87,484
29,493
228.701
4,001
232.702
235,940
238,032
239,686
236,749
243,414
242,408
236,680
243,414
7,909
741
7,740
742
11,445
740
7,441
742
6,121
743
8,052
736
6,785
740
6,121
743
10,332
8,261
10,181
8,366
9,987
6,333
9,631
7,574
9,565
8,0%
9,528
7,984
10,423
8,189
9,565
8,0%
281,566
284,691
278,633
284,420
285,185
279,331
284,420
220,047
222,040
222,580
223,967
224,535
217,676
219,232
224,535
39,708
4,467
223
351
38,966
6,792
186
279
40,336
5,384
182
354
35,426
4,631
287
259
40,012
5,198
251
398
39,038
13,023
338
358
39,741
6,151
301
354
40,012
5,198
251
398
44,749
46,223
46,256
40,603
45,859
52,757
46,547
45,859
6,814
2,931
5,772
2,939
8,388
2,885
6,521
2,951
6,020
3,221
6,853
3,277
5,089
3,051
6,020
3,221
274,541
20 Total assets
11,062
5,018
425
279,686
16 Items in process of collection
17 Bank premises
Other assets
18
Denominated in foreign currencies 3
19
All other
11,062
5,018
423
276,974
280,109
274,042
279,635
280,563
273,919
279,635
2,109
2,046
990
2,112
2,047
433
2,107
2,047
428
2,107
2,047
437
2,106
2,047
632
2,097
2,047
478
2,108
2,047
1,257
2,106
2,047
632
279,686
281,566
284,691
278,633
284,420
285,185
279,331
284,420
228,668
227,934
229,502
231,905
235,131
225,561
231,250
235,131
LIABILITIES
21 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred credit items
28 Other liabilities and accrued dividends 5
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. Treasury securities held in.
custody for foreign and international accounts .
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
40
Other eligible assets
41
U.S. Treasury and agency securities
42 Total collateral
267,614
47,567
220,047
268,623
46,583
222,040
269,699
47,119
222,580
270,471
46,504
223,967
270,577
46,042
224,535
265,671
47,995
217,676
270,577
46,042
224,535
11,062
11,062
5,018
11,060
5,018
5,018
11,061
5,018
11,059
5,018
11,062
5,018
11,059
5,018
203,967
205,960
206,502
207,888
208,458
201,5%
208,458
220,047
222,040
222,580
223,967
224,535
217,676
224,535
0
0
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
0
0
0
0
0
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
1988
Type and maturity groupings
End of month
1988
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Sept. 30
Oct. 31
Nov. 30
1 Loans—Total
2
Within 15 days
16 days to 90 days
3
91 days to 1 year
4
2,611
2,509
102
0
3,079
2,965
114
0
3,406
3,369
37
0
1,570
1,552
18
0
2,328
2,289
39
0
2,154
1,996
158
0
2,275
2,189
86
0
2,328
2,289
39
0
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
91 days to 1 year
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
225,785
9,953
50,962
70,013
54,498
13,851
26,508
227,837
6,428
54,892
71,660
54,498
13,851
26,508
229,178
12,890
47,825
75,939
54,040
12,007
26,477
228,077
11,817
52,598
71,138
54,040
12,007
26,477
232,702
12,583
53,659
74,475
53,501
12,007
26,477
223,573
2,318
55,265
70,379
55,403
13,700
26,508
223,041
5,789
51,917
70,477
54,499
13,851
26,508
232,702
12,583
53,659
74,475
53,501
12,007
26,477
7,544
542
782
1,606
3,322
1,103
189
7,116
114
878
1,510
3,322
1,103
189
7,102
254
664
1,470
3,322
1,203
189
7,102
254
664
1,470
3,322
1,203
189
8,384
1,557
675
1,457
3,413
1,093
189
7,191
215
793
1,563
3,293
1,138
189
7,116
228
782
1,492
3,322
1,103
189
8,384
1,557
675
1,457
3,413
1,093
189
9 U.S. Treasury securities—Total
10 Within 15 days 1
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18
16 days to 90 days
19 91 days to 1 year
20
Over 1 year to 5 years
21
Over 5 years to 10 years
22
Over 10 years
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12 DomesticNonfinancialStatistics • February 1989
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1988
Item
1984
1985
1986
1987
Dec.
Dec.
Dec.
Dec.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
A D J U S T E D FOR
.
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S ' 1
1 Total reserves'
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 5
40.96
47.26
57.46
58.72
60.37
60.37
60.64
61.24
61.09
61.00
60.96
61.06
37.77
40.38
40.11
200.45
45.94
46.44
46.20
218.26
56.63
56.93
56.09
240.80
57.94
58.43
57.69
257.93
57.38
60.00
59.51
265.81
57.79
59.89
59.32
266.92
57.55
60.11
59.75
268.31
57.80
60.34
60.23
270.63
57.85
60.50
60.14
271.20
58.16
60.21
60.02
272.45
58.66
60.44
59.89
273.73 R
58.20
60.52
59.95
274.48
Not seasonally adjusted
6
7
8
9
10
Total reserves 3
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base
41.84
48.27
58.70
60.02
60.95
59.45
60.68
61.47
60.59
60.65
60.54 r
61.16
38.65
41.26
40.99
203.39
46.95
47.45
47.21
221.49
57.87
58.18
57.33
244.55
59.25
59.73
58.99
262.05
57.95
60.58
60.09
265.01
56.88
58.98
58.41
265.73
57.60
60.15
59.79
269.44
58.03
60.57
60.46
272.41
57.35
60.00
59.64
271.73
57.82
59.87
59.68
271.57
58.24 R
60.02 R
59.48
272.44 R
58.30
60.62
60.05
275.49
40.70
48.14
59.56
62.12
62.06
60.68
61.99
62.76
61.97
62.15
61.92
62.41
37.51
40.09
39.84
204.18
46.82
47.41
47.08
223.53
58.73
59.04
58.19
247.71
61.35
61.86
61.09
266.16
59.07
61.89
61.21
268.13
58.10
60.08
59.64
268.90
58.91
61.47
61.10
272.65
59.32
61.99
61.75
275.59
58.72
61.26
61.01
275.03
59.31
61.32
61.18
274.87
59.62
61.45R
60.85
275.78'
59.55
61.86
61.30
278.66
N O T A D J U S T E D FOR
,
C H A N G E S IN R E S E R V E REQUIREMENTS®
11
Total reserves3
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 4
Required reserves
Monetary base
1. Latest monthly and biweekly figures are avjiilable from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equ:il to required reserves during the
maintenance period at institutions having no required reserve balances.
4. Extended credit consists of borrowing at the discount window under 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.
5. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock plus, for institutions not having required reserve balances, the excess of current vault cash over
the amount applied to satisfy current reserve requirements. Currency and vault
cash figures are measured over the weekly computation period ending Monday.
The seasonally adjusted monetary base consists of seasonally adjusted total
reserves, which include excess reserves on a not seasonally adjusted basis, plus
the seasonally adjusted currency component of the money stock and the remaining items seasonally adjusted as a whole.
6. Reflects actuail reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated with
implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1988
Item
1984
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
Aug.
Sept.
Oct.'
Nov.
783.5
3,037.5
3,868.6
4,608.6
8,880.2
783.7
3,054.2
3,888.9
n.a.
n.a.
Seasonally adjusted
1
2
3
4
5
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits
551.9
2,363.6
2,978.3
3,519.4
5,910. r
620.1
2,562.6
3,196.4
3,825.9
6,719.9'
725.4
2,807.7
3,490.8
4,134.3
7,576.8''
750.8
2,901.0
3,664.4
4,329.3
8,282.1'
782.5
3,031.6
3,848.3
4,582.3'
8,758.3'
782.3'
3,034.1'
3,853.6'
4,589.0'
8,822.6'
156.1
5.2
244.1
146.4
167.7
5.9
267.2
179.2
180.4
6.5
303.3
235.2
196.5
7.1
288.0
259.3
207.2
7.2
290.1
278.0
208.5
7.3
288.4
278.2
209.5
7.4
288.6
277.9
210.3
7.5
286.9
279.1
1,811.7
614.7
1,942.5
633.8
2,082.3
683.1
2,150.2
763.4
2,249.2
816.6'
2,251.8'
819.4'
2,254.1
831.1
2,270.4
834.8
10
11
Nontransactions components
In M2 . . .
In M3 only 8
12
13
Savings deposits 9
Commercial Banks
Thrift institutions
122.6
162.9
124.8
176.6
155.5
215.2
178.2
236.0
190.7
243.6'
190.3
243.1
189.9
241.3
192.9
240.8
14
15
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
386.3
497.0
383.3
496.2
364.6
488.6
384.6
528.5
414.1
571.6
421.0
576.4
429.2
580.7
435.3
583.7
16
17
Money market mutual funds
General purpose and broker-dealer
Institution-only
167.5
62.7
176.5
64.5
208.0
84.4
221.1
89.6
230.8
84.0
230.8'
83.7
231.2
84.6
238.0
87.4
18
19
Large-denomination time deposits"
Commercial Banks
Thrift institutions
270.2
146.8
284.9
151.6
288.9
150.3
323.5
161.2
347.1'
167.9
352.3
171.3
357.1
173.3
357.9
173.7
20
21
Debt components
Federal debt
Nonfederal debt
1,366.1
4,544.0r
1,585.3
5,134.6r
1,805.8
5,771.1'
1,956.1
6,326.0'
2,058.5'
6,699.8'
2,079.6'
6,743.0'
2,089.0
6,791.2
n.a.
n.a.
780.9
3,039.0
3,868.9
4,610.0
8,846.1
787.1
3,057.9
3,896.9
n.a.
n.a.
209.0
7.5
288.4
276.1
211.3
7.1
289.7
279.0
Not seasonally adjusted
??
73
74
25
26
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits
564.5
2,373.2
2,991.4
3,532.7
5,903.8'
633.5
2,573.9
3,211.0
3,841.4
6,710. l r
740.6
2,821.4
3,507.6
4,152.3
7,561.0'
765.9
2,914.7
3,681.0
4,347.4
8,264.2'
781.2
3,030.8
3,845.9'
4,574.3'
8,719.1'
779.8
3,029.4'
3,852.2'
4,584.8'
8,788.9'
158.5
4.9
253.0
148.2
170.2
5.5
276.9
180.9
183.0
6.0
314.4
237.3
199.4
6.5
298.5
261.6
207.9
8.2
288.7
276.3
207.9
7.9
287.1
276.9
1,808.7
618.2
1,940.3
637.1
2,080.7
686.2
2,148.8
766.3
2,249.6
815.2
2,249.6'
822.8'
2,258.1
829.9
2,270.8
839.0
Nontransactions components
Mr....
31
32
M3 only 8
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
267.4
149.4
332.8
180.8
379.6
192.9
358.2
167.0
357.0
160.C
353.7
156.^
352.3
154.4
353.4
152.4
35
36
Savings deposits 9
Commercial Banks
Thrift institutions
121.5
161.5
123.7
174.8
154.2
212.9
176.7
233.3
190.9
244.1'
189.8
242.3
190.1
242.0
192.2
239.7
37
38
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
386.9
498.2
384.0
497.5
365.3
489.7
385.2
529.3
415.3
571.4
422.8
575.6
430.0
582.0
436.5
584.5
39
40
Money market mutual funds
General purpose and broker-dealer
Institution-only
167.5
62.7
176.5
64.5
208.0
84.4
221.1
89.6
230.8
84.0
230.8'
83.7
231.2
84.6
238.0
87.4
41
42
Large-denomination time deposits 11
Commercial Banks
Thrift institutions
270.9
146.8
285.4
151.9
289.1
150.7
323.6
161.8
346.4'
167.6
352.3
171.7
356.4
174.4
357.9
174.6
43
44
Debt components
Federal debt
Nonfederal debt
1,364.7
4,539.1'
1,583.7
5,126.4r
1,803.9
5,757.1'
1,954.1
6,310.1'
2,036.6'
6,682.5'
2,056.2'
6,732.6'
2,069.2
6,776.9
For notes see following page.
n.a.
n.a.
A14 DomesticNonfinancialStatistics • February 1989
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the Monetary and Reserves Projection
section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at aJl commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker-dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted
is the estimated amount of overnight RPs and Eu rodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less the estimated
amount of overnight RPs and Eurodollars held by institution-only money market
funds.
9. Savings deposits exclude MMDAs.
10. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
11. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
12. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
1.22
A15
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
Bank group, or type of customer
1985
Apr.
June
July
Aug.
Sept.
Seasonally adjusted
DEBITS TO
Demand deposits
1 All insured banks
2
Major New York City banks
3
Other banks
4 A T S - N O W accounts 4
5 Savings deposits
May
156,091.6
70,585.8
85,505.9
1,823.5
384.9
188,345.8
91,397.3
96,948.8
2,182.5
403.5
217,115.9
104,496.3
112,619.6
2,402.7
526.5
213,971.5
100,695.1
113,276.4
2,557.9
543.7
224,052.3
109,714.7
114,337.6
2,664.9
574.7
230,198.8
111,402.1
118,796.6
2,786.0
597.1
224,512.7
107,336.7
117,176.0
2,570.4
583.3'
228,898.2
110,150.0
118,748.2
2,963.6
609.6
227,617.3
108,741.8
118,875.5
2,871.2
578.6
500.3
2,196.9
305.7
15.8
3.2
556.5
2,498.2
321.2
15.6
3.0
612.1
2,670.6
357.0
13.8
3.1
600.2
2,700.6
354.9
13.8
3.0
630.9
2,881.3
360.6
14.2
3.1
649.8
2,911.0
376.0
14.8
3.2
622.7
2,789.6
363.8
13.5
2.9
645.8
2,939.3
374.6
15.6
3.2
651.0
3,102.4
377.9
15.1
3.1
DEPOSIT TURNOVER
Demand deposits 3
6
All insured banks
7
Major New York City banks
8
Other banks
9 A T S - N O W accounts 4
10 Savings deposits
Not seasonally adjusted
Demand deposits
11
All insured banks
12
Major New York City banks
13
Other banks
14 A T S - N O W accounts 4
15 MMDA
16 Savings deposits
156,052.3
70,559.2
85,493.1
1,826.4
1,223.9
385.3
188,506.4
91,500.0
97,006.6
2,184.6
1,609.4
404.1
217,124.8
104,518.6
112,606.1
2,404.8
1,954.2
526.8
214,848.8
101,141.9
113,706.9
2,745.3
2,372.8
603.2
222,685.5
106,335.6
116,349.9
2,601.3
2,341.0
566.4
241,133.2
117,287.7
123,845.5
2,851.4
2,557.1
598.3
217,350.7
103,561.2
113,789.6
2,536.6
2,399.0
566.2
237,459.0
112,654.6
124,804.4
2,828.0
2,530.0
615.9
224,089.2
107,115.7
116,973.5
2,951.1
2,409.4
570.1
499.9
2,196.3
305.6
15.8
4.0
3.2
556.7
2,499.1
321.2
15.6
4.5
3.0
612.3
2,674.9
356.9
13.8
5.3
3.1
601.8
2,706.2
355.7
14.4
6.6
3.3
638.6
2,895.6
372.9
14.1
6.6
3.1
679.5
3,121.4
390.3
15.2
7.2
3.2
599.9
2,660.7
351.9
13.4
6.7
3.0
681.6
3,170.3
398.9
15.1
7.2
3.3
642.9
3,046.4
373.3
15.6
6.9
3.1
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits 3
All insured banks
Major New York City banks
Other banks
A T S - N O W accounts 4
MMDA
Savings deposits
1. Historical tables containing revised data for earlier periods may be obtained
from the Monetary and Reserves Projections Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and
of states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes ATS and N O W accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16 DomesticNonfinancialStatistics • February 1989
1.23 LOANS AND SECURITIES
All Commercial Banks1
Billions of dollars; averages of Wednesday figures
1987
1988
Category
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
1 Total loans and securities2
2 U.S.'government securities
3 Other securities
4 Total loans and leases 2
5
Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15
State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables
19 All other loans
2,233.0
2,244.8
2,264.1
2,281.3
2,304.7
2,328.5
2,348.4
2,360.8
2,374.9
2,373.6
2,387.5
2,398.1
335.0
194.5
1,703.5
562.4
4.1
336.4
192.0
1,716.5
565.2
4.3
336.4
193.7
1,734.0
569.3
4.3
340.2
195.7
1,745.4
568.6
4.7
343.8
196.6
1,764.3
578.1
4.6
346.5
196.1
1,786.0
586.3
4.4
350.5
196.5
1,801.5
592.4
4.4
348.0
196.8
1,815.9
598.3
4.4
350.5
196.4
1,827.9
599.4
4.6
352.5
194.2
1,826.8
597.1
4.5
355.1
195.4
1,836.9
600.9
4.2
356.8
194.8
1,846.5
599.2
4.2
558.3
550.2
8.1
588.4
327.8
33.4
560.9
552.2
8.7
593.7
329.8
36.5
564.9
556.3
8.7
599.2
333.0
42.1
564.0
555.8
8.2
604.9
337.0
41.2
573.5
565.5
8.1
611.3
340.4
39.5
582.0
575.1
6.9
618.6
342.8
39.8
588.1
581.3
6.8
625.0
344.4
39.4'
593.9
587.4
6.5
631.4
345.3
38.6
594.7
588.4
6.3
638.7
347.0
40.1
592.7
586.4
6.3
644.7
349.1
36.3
596.7
590.6
6.1
652.0
349.6
38.4
595.0
589.5
5.5
659.2
350.8
37.5
31.8
29.5
31.4
29.6
31.8
29.5
31.2
29.3
30.4
29.4
30.9
29.6
30.6
29.7
31.0
29.6
30.8
29.4
29.9
29.3
29.8
29.3
29.8
29.8
52.2
7.5
5.3
24.6
40.5
52.3'
7.6
5.4
25.1
39.8'
52.3'
7.4
5.1
25.3
39. V
52. r
7.8
5.1
25.4
42.7'
51.9^
8.3
5.1
25.7
44. r
51.6'
8.0
5.1
26.0
47.2''
51.5'
7.9
5.0
26.5
49.0'
50.2
8.2
5.0
27.2
51.0
49.6
8.1
5.2
27.3
52.3
49.4
7.4
5.2
27.7
50.7
48.8'
7.6
5.1
28.1
47.3
48.0
8.2
5.4
28.1
50.5
Not seasonally adjusted
20 Total loans and securities2
2,249.2
2,257.5
2,268.8
2,281.6
2,305.9
2,325.2
2,344.6
2,350.7
2,363.5
2,370.3
2,382.0
2,397.3
21 U.S. government securities
71 Other securities
23 Total loans and leases
24
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
26
Other commercial and
industrial
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease financing receivables
38
All other loans
334.9
195.0
1,719.3
566.4
4.2
337.9
194.6
1,724.9
564.9
4.1
341.5
194.4
1,732.9
568.5
4.3
342.0
195.3
1,744.2
573.8
4.7
343.4
196.2
1,766.3
582.1
4.5
344.9
196.1
1,784.2
588.8
4.4
347.0
196.0
1,801.6
594.0
4.5
347.1
195.5
1,808.1
595.4
4.4
350.5
196.3
1,816.7
594.2
4.6
352.7
194.3
1,823.3
593.7
4.5
352.8
194.3
1,834.9
596.4
4.1
356.9
194.1
1,846.2
598.1
4.2
562.2
554.1
8.1
589.3
332.1
35.0
560.7
552.8
8.0
594.1
333.3
37.3
564.2
556.0
8.2
598.5
332.4
40.5
569.1
561.2
7.9
604.1
333.9
40.6
577.6
569.7
7.9
610.3
337.4
41.2
584.4
577.3
7.1
618.1
339.9
40.4
589.5
582.6
6.9
624.8
342.3
40.8
591.0
584.0
7.0
631.5
343.8
38.2
589.6
582.9
6.7
638.7
347.1
38.3
589.1
582.5
6.6
645.5
350.7
35.3
592.3
586.C
6.2
652.7'
351.3
37.1
593.9
587.8
6.1
659.7
352.7
37.6
33.1
29.3
31.6
28.9
30.8
28.5
30.3
28.3
30.3
28.6
30.7
29.3
30.6
30.0
30.8
30.3
30.7
30.3
30.2
30.3
29.9
30.2
30.2
30.1
51.6'
7.7
5.1
26.1
46.6'
51.1'
7.8
5.0
26.7
48.6'
49.5
8.2
5.0
27.2
48.2
49.1'
7.9
5.2
27.2
48.0
48.7'
7.6
5.2
27.5
48.5
48.0'
7.8
5.1
27.6
48.8
47.1
8.2
5.4
27.8
49.6
52.2
7.9
5.3
24.6
44.0
54.1'
7.8
5.4
25.2
42.3r
r
53.5
7.6
5.1
25.4
42.0r
r
53.0
7.7
5.1
25.6
41.9'
1. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
2. Excludes loans to commercial banks in the United States.
r
52.4
7.9
5.1
25.9
45. r
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1988
1987
Source
Dec.
Total nondeposit funds
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks
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.
178.4
179.3
180.2
180.6
178.1
180.7
175.8
176.6
183.1
182.2
194.3
194.1'
194.8
191.C
192.2
188.2
195.4'
195.7'
181.0
181.6
177.9'
178.1
184.1
186.4
163.2
164.1
171.1
171.4
175.0
177.6
178.9
179.8
181.1
180.2
184.5
184.3
186.1
182.4
181.4
177.4
176.8
177.1
171.9
172.5
173.0
173.3
173.9
176.3
15.2
9.1
3.1
-3.1
2.0
9.7
8.7
10.8
18.6'
9.1
-14.0
69.5
55.5
-16.5
71.2
54.7
-20.2
72.9
52.7
-25.3
76.6
51.4
-22.2
73. <y
50.7
-16.5
69.7
53.2
-16.3
69.6
53.3
-14.0
70.4'
56.4
-7.3'
70.4
63.1
-15.7'
74.8
59.1
-20.6'
76.6'
56.0
-19.2
77.1
57.9
29.2
79.8
109.0
25.6
85.2
110.9
23.3
87.3
110.6
22.1
88.6
110.7
24.2
88.3
112.5'
26.2
89.9
116.1
25.0
93.6
118.6
24.8
94.1
118.9
25^
93.9
119.8
24.7
89.6
114.3'
25.5
88.4
113.9
29.3
87.9
117.3
107.3
108.1
110.0
110.4
109.0
111.6
109.7
110.6
113.5
112.6
117.7
117.5
122.0
118.3
119.5
115.5
116.6
116.9
112.6
113.2
112.3
112.6
112.0
114.3
26.1
22.4
18.6
24.9
22.6
28.2
24.9
22.3
21.8
21.7
24.7
30.4
22.0
21.0
20.2
22.0
15.8
11.9
24.5
24.6
30.7
27.7
22.1
16.2
389.2
389.3
389.1
390.1
394.4
394.7
396.1
398.2
394.0
393.9
396.4
397.1
400.5
399.8
406.8
404.0
413.6
412.9
419.7
419.7
423.7
423.0
424.0
424.0
10.2
MEMO
6 Domestically chartered banks' net positions
with own foreign branches,
not seasonally adjusted
7
Gross due from balances
8
Gross due to balances
9 Foreign-related institutions' net positions
with directly related institutions,
not seasonally adjusted
10 Gross due from balances
11 Gross due to balances
Security RP borrowings
1?
Seasonally adjusted
13 Not seasonally adjusted
y
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.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Euroidollars.
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.
A18 DomesticNonfinancialStatistics • February 1989
Last-Wednesday-of-Month Series1
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars
1988
Account
Jan.
Feb.
2,417.6
515.7
325.5
190.3
1,883.6
159.0
1,724.6
562.9
595.2
332.9
233.6
2,427.7
514.9
325.0
190.0
21.9
1,890.9
161.4
1,729.5
568.9
599.2
332.7
228.7
213.4
33.3
25.7
70.8
207.4
32.7
25.1
66.9
31.7
30.4
52.3
Apr.
May
2,450.0
517.7
325.7
192.0
20.3
1,912.0
159.5
1.752.4
576.2
607.3
334.8
234.1
2.466.8
519.7
328.8
190.9
19.6
1,927.5
158.0
1.769.5
583.4
612.5
339.1
234.6
2.473.2
521.6
330.7
191.0
20.3
1.931.3
152.3
1.779.1
587.8
619.7
340.0
231.7
211.2
32.0
24.8
74.1
214.3
32.2
25.4
76.4
32.0
30.3
49.9
July
Aug.
Sept.
2,511.7
518.6
328.0
190.6
22.1
1,971.0
163.7
1,807.3
598.2
627.5
343.2
238.4
2,509.0
521.6
331.6
190.0
23.9
1,963.5
158.7
1,804.8
592.4
633.1
344.1
235.2
2.523.3
525.4
334.6
190.8
22.8
1,975.1
154.7
1.820.4
592.8
641.8
349.2
236.6
2.522.7
525.9
336.5
189.4
21.3
1,975.5
151.2
1,824.3
593.8
647.8
351.5
231.2
2,537.9
523.6
334.4
189.2
24.8
1,989.4
158.5
1,830.9
593.8
654.1
351.9
231.1
2,575.7
529.6
340.4
189.2
24.8
2,021.3
167.7
1,853.6
600.1
661.6
354.1
237.8
200.3
26.0
25.4
71.5
221.4
34.4
26.5
77.2
217.0
30.7
25.9
75.7
221.8
33.0
26.5
79.9
215.9
31.1
26.2
76.4
208.5
31.6
26.3
72.6
235.1
33.7
28.7
89.5
29.2
31.6
51.8
31.3
53.5
31.5
50.9
29.4
52.8
29.2
48.8
32.0
51.2
A L L COMMERCIAL BANKING
INSTITUTIONS^
1 Loans and securities
2
Investment securities
3
U.S. government securities
4
Other
5
Trading account assets
6
Total loans
7
Interbank loans
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14
Reserves with Federal Reserve Banks
15
Cash in vault
16
Cash items in process of collection . .
17
Demand balances at U.S. depository
institutions
18
Other cash assets
19 Other assets
20 Total assets/total liabilities and c a p i t a l . . .
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
18.2
51.9
181.5
2.812.5
180.9
2,816.0
48.2
193.1
2,854.3
190.9
2.871.9
2.011.6
48.3
186.6
2.860.2
194.3
188.4
187.5
191.8
201.2
201.1
2,927.5
2,914.4
2,932.6
2,930.3
2,947.6
3,012.0
2,042.5
603.3
544.5
894.7
487.4
209.7
187.8
2,050.2
598.4
545.4
906.4
470.7
208.2
185.3
2,072.9
609.5
542.2
921.2
452.4
218.5
188.7
2.058.8
588.3
536.9
933.6
470.8
213.1
187.6
2,067.3
586.9
538.4
941.9
481.3
210.0
189.0
2,120.6
627.2
542.2
951.2
476.4
1.971.6
577.4
531.6
862.6
452.1
205.4
183.5
1,978.4
568.6
535.7
874.1
450.8
202.5
184.4
2.008.5
588.5
540.0
879.9
454.9
207.7
183.2
339.5
342.1
341.2
343.4
346.3
344.7
349.2
351.4
352.7
354.3
359.9
194.5
194.7
196.8
195.9
195.6
196.0
196.4
196.7
194.4
194.2
194.5
2,240.5
489.1
313.9
175.2
18.2
1,733.1
130.3
2,246.3
488.6
313.6
175.0
21.9
1,735.8
132.0
1,603.8
475.8
584.5
332.4
2,282.3
494.6
317.7
176.9
19.6
1,768.1
128.5
1,639.6
487.4
597.0
338.8
216.4
2,286.4
495.7
318.6
177.1
20.3
1,770.4
124.9
1.645.6
488.8
603.6
339.7
213.5
2.314.6
492.8
316.3
176.6
22.1
1.799.7
133.1
1,666.6
492.6
611.4
342.9
219.7
2.319.3
495.3
319.3
176.1
23.9
130.7
1.669.4
490.8
617.5
343.8
217.3
2,330.5
499.3
322.8
176.5
22.8
1,808.5
125.2
1.683.3
489.7
625.4
348.9
219.2
2,329.1
501.0
325.0
175.9
21.3
1,806.8
211.1
2,266.0
491.7
314.5
177.2
20.3
1,754.0
131.2
1,622.9
481.0
592.1
334.5
215.3
1,685.0
489.2
631.5
351.2
213.2
2,342.4
498.5
323.1
175.5
24.8
1,819.0
127.8
1,691.2
490.2
636.5
351.6
212.9
2,376.2
504.7
329.2
175.6
24.8
1,846.7
136.3
1,710.4
495.4
642.8
353.8
218.4
186.6
30.5
25.1
66.4
193.9
30.1
24.7
73.5
196.7
30.7
25.4
75.8
183.0
23.6
25.4
71.0
201.6
32.9
26.4
76.5
196.4
29.5
25.9
75.1
202.8
31.4
26.4
79.2
193.4
29.0
26.2
75.7
189.7
29.8
26.3
71.9
215.2
32.6
28.7
88.7
30.4
28.7
36.0
27.5
29.8
35.8
29.4
29.8
36.0
27.3
35.3
27.2
30.1
35.1
595.9
536.4
879.3
465.8
210.1
184.4
2,008.6
579.1
542.2
887.3
458.4
207.4
185.8
222.6
192.3
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading account)
DOMESTICALLY CHARTERED
COMMERCIAL B A N K S 3
30 Loans and securities
31
Investment securities
32
U.S. Treasury 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
1,602.8
472.7
581.7
332.6
215.9
194.2
31.7
25.7
70.3
30.1
36.5
48 Other assets
35.2
118.5
123.1
49 Total assets/liabilities and capital
2,550.6
2,551.4
50
51
52
53
54
55
56
1,910.2
569.3
529.3
108.6
180.2
1,916.1
560.7
533.3
822.0
349.9
104.4
181.1
1,944.5
580.0
537.6
826.9
350.1
31.3
550.4
31.7
552.9
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO4
57 Real estate loans, revolving
58 Real estate loans, other
811.6
351.7
2,583.0
118.3
2.587.7
108.6
1,948.1
587.2
533.9
827.0
358.4
112.7
179.9
181.1
108.8
32.1
560.0
33.0
564.0
33.7
569.9
1. Back data are available from the Banking and Monetary Statistics section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Data have been revised because of benchmarking to new Call reports beginning
January 1987.
Figures are partly estimated. They include sill 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
121.3
2,600.3
35.6
1,944.7
570.7
539.8
834.2
351.7
182.4
125.6
2.641.8
1,800.1
36.5
121.6
2,637.4
34.4
123.8
127.8
2,657.2
2,650.3
1,991.0
579.1
534.4
877.5
358.6
116.4
184.3
1.999.1
577.3
535.8
885.9
363.2
117.0
185.6
2,051.1
617.2
539.8
894.2
362.5
122.8
189.0
37.3
594.1
37.9
598.5
39.1
603.7
1.976.9
594.5
541.8
840.6
369.4
1,984.4
589.6
542.9
851.9
358.5
112.5
184.5
182.0
2.006.4
600.6
539.7
866.1
345.7
119.6
185.4
34.8
576.6
35.3
582.2
36.3
589.2
111.0
121.8
132.9
2.665.0
134.0
2,725.4
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
4. Memorandum items for real estate loans; revolving and other, are shown as
separate breakdowns for the first time.
Weekly Reporting Commercial Banks
A19
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS 1
Millions of dollars, Wednesday figures
1988
Account
Oct. 5
1 Cash and balances due from depository institutions
2 Total loans, leases, and securities, net
3 U.S. Treasury and government agency
4 Trading account
5
Investment account
6
Mortgage-backed securities
All other maturing in
7
One year or less
Over one through five years
8
Over five years
9
10 Other securities
11 Trading account
12 Investment account
13
States and political subdivisions, by maturity
14
One year or less
Over one year
15
16
Other bonds, corporate stocks, and securities
17 Other trading account assets
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
Federal funds sold 3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve 4
Other loans and leases, net
All other assets
Total assets
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
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
Other liabilities and subordinated notes and debentures
Total liabilities
69 Residual (total assets minus total liabilities)6
Oct. 12
Oct. 19
105,122
119,433
106,386
1,137,731 1,132,809 1,140,338
132,177r
132,717'
132,826
18,534
18,784
17,529
114,648'
114,183'
114,042
44,186'
44,158'
44,466
19,212
41,832
9,418
72,798r
1,736
71,062'
46,328'
5,452
40,876'
24,734
3,336
73,973
50,554
15,068
8,351
895,743
872,630'
298,239'
1,685
296,554'
294,302'
2,252
291,731'
20,620
271,111'
164,894'
46,135'
20,551
3,941'
21,643
12,462
5,613
29,584'
2,251'
21,721'
23,113'
4,921
35,374
855,447
133,59c
1,376,443'
232,206
182,012
5,975
5,118
23,136
6,111
868
8,985
73,902
616,774
576,569
30,408
890
8,056
850
278,315
4,130
13,956
260,229
83,693
1,284,890
91,553'
19,228
41,550
9,247
72,814'
1,564
71,25c
46,272'
5,468
40,804'
24,979
3,502
19,234
41,240
9,101
72,776
1,596
71,180
46,140
5,420
40,719
25,040
3,634
67,251
71,754
43,109
46,430
16,317
16,737
7,825
8,586
896,574
899,321
873,414
876,142
297,932'
297,843'
1,701
1,703
2%,232'
296,14C
294,01C
293,914'
2,222
2,225
292,395' 293,675'
20,707
20,808
271,688' 272,867'
164,198'
164,158'
47,82C
47,489'
21,338
21,886
4,884'
3,964'
21,599
21,640
12,369
13,925
5,587
5,585
29,512
29,452
2,188'
2,14C
21,412'
21,875'
23,160
23,178
4,934
4,862
35,117
35,110
856,524
859,348
133,326'
130,602'
1,385,568' 1,377,327'
238,057
223,717
189,160
177,227
5,288
5,658
1,776
4,107
25,389
21,710
6,905
6,500
581
688
8,959
7,827
73,328
72,480
617,829
617,061
577,586
577,108
30,539
30,394
872
917
7,991
7,796
840
846
279,945
283,452
1,750
2,901
16,856
18,482
261,339
262,069
83,992
88,454
1,293,152 1,285,164
92,416'
92,163'
Oct. 26
Nov. 2
99,726'
114,422
1,134,358' 1,151,943
134,381'
132,734
20,227
19,278
114,154'
113,456
44,668'
44,825
Nov. 9
Nov. 16
Nov. 23
Nov. 30
102,187
1,140,001
132,345
18,688
113,657
44,858
116,679
1,150,913
134,711
21,049
113,663
44,873
103,700
1,142,918
134,944
19,971
114,973
45,459
117,512
1,157,802
135,890
19,818
116,072
46,226
19,172
41,188
9,125
72,777
1,518
71,259
46,136
5,386'
40.75C
25,123
3,548
19,623
19,739
20,625
21,137
20,339
40,341
40,438
40,328
40,373
40,013
8,667
8,687
8,451
8,380
8,438
72,812
72,811
73,303
72,859
72,970
1,336
1,336
1,446
1,643
1,681
71,476
71,475
71,412
71,327
71,623
45,794
45,711
45,479
45,484
45,560
5,262
5,087
5,263
5,138
5,103
40,532
40,448
40,422
40,381
40,391
25,848
25,681
25,764
25,852
26,139
3,843
3,723
3,986
3,739
3,929
66,424
68,860
78,740
68,841
71,955
76,096
51,272
44,186
51,278
42,594
48,581
42,579
16,030
18,313
16,832
14,797
15,593
14,478
8,644
9,049
9,230
9,148
9,415
8,896
909,443
894,831
903,752
902,354
907,531
905,533
886,067
871,640
880,526
879,105
884,207
882,192
296,977
299,887
301,234
300,502
300,317
300,389
1,759
1,871
1,805
1,876
1,904
1,860
295,218
298,631
298,511
298,528
298,010
299,330
292,938
296,374
296,317
2%, 269
295,778
297,073
2,279
2,194
2,232
2,256
2,258
2,259
293,498
293,436
295,347
296,015
294,502
295,176
20,887
21,067
21,146
21,350
21,443
21,262
273,997
272,610
272,370
273,355
273,914
274,572
164,423
165,281
165,117
165,723
165,636
165,861
46,960
48,574
48,890
49,307
49,158
50,628
22,142
22,714
22,776
23,120
24,115
23,059
3,653
3,746
4,318
4,432
4,632
4,528
21,165
22,051
21,398
21,720
21,985
21,961
12,650
14,001
12,838
14,411
15,271
13,743
5,567
5,558
5,484
5,469
5,512
5,495
29,337
29,104
28,954
28,871
28,849
28,804
2,147
2,131
2,077
2,132
2,098
2,026
20,080
21,260
22,151
21,938
20,736
22,204
23,191
23,225
23,249
23,323
23,341
23,376
4,885
4,844
4,879
4,871
4,874
4,847
35,152
35,236
35,210
35,201
35,923
35,806
854,793
863,671
862,265
864,736
868,790
867,459
130,403'
132,549
130,374
130,480
131,367
131,928
1,364,487' 1,398,914 1,372,668 1,398,958 1,376,993 1,407,241
215,618
235,658
217,665
241,854
225,530
240,653
172,689
185,719
175,655
180,647
191,636
190,422
5,575
6,581
5,275
5,935
6,456
6,420
2,610
1,688
2,949
1,518
3,247
3,182
20,264
19,587
19,594
22,067
23,179
25,398
5,868
5,786
6,637
6,754
7,042
7,239
629
741
663
918
832
888
7,983
8,330
9,474
11,963
8,722
8,213
71,308
74,006
73,605
72,917
73,637
73,698
616,576
620,448
622,587
622,745
623,481
623,274
576,532
581,065
583,887
583,645
583,097
582,787
30,540
30,007
30,025
30,213
30,307
30,349
896
855
965
942
959
943
7,729
7,669
7,596
7,535
7,712
7,829
879
852
843
827
828
795
279,931
286,324
275,150
278,897
277,098
272,478
1,500
2,160
2,700
3,000
1,872
1,200
22,464
16,174
7,553
3,510
13,425
12,853
255,967
267,990
264,897
264,172
270,588
257,853
88,895
90,310
90,090
90,595
97,056
89,958
1,272,328 1,306,746 1,279,992 1,306,520 1,283,469 1,312,988
92,159'
92,168
92,677
93,524
92,439
94,253
MEMO
70
71
72
73
74
75
76
77
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less
Loans sold outright to affiliates—total8
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)
. . . 1,106,922 1,108,412 1,111,995
899,378
898,611
902,759
193,835'
194,386'
194,166
18,715
18,959
18,986
1,304
1,303
1,291
879
879
866
424
426
426
252,360
251,186
250,789
1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes federal funds purchased and securities sold under agreements to
1,108,067' 1,117,969
897,362
908,437
194,428
193,997
19,473
19,402
1,367
1,401
953
987
414
414
253,371
249,650
1,114,376
905,481
194,552
18,861
1,380
965
414
255,025
1,118,289
906,790
194,051
21,072
1,303
924
379
254,856
1,118,078
906,319
194,751
20,925
1,342
968
374
253,029
1,124,470
911,553
194,464
19,895
1,308
929
380
253,021
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
6. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
8. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20 DomesticNonfinancialStatistics • February 1989
1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN NEW YORK CITY1
Millions of dollars, Wednesday figures
1988
Account
Oct. 5
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net 2
7
U
9
10
11
12
13
14
15
16
17
Securities
U.S. Treasury and government agency
Trading account
Investment account
Mortgage-backed securities 4
All other maturing in
One year or less
Over one through five years
Over five years
Other securities 3
Trading account
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
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Loans and leases
Federal funds sold
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
v
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions . . .
To foreign governments and official institutions
Mother
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net 6
All other assets
3
4
5
6
47 Total assets
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
(ATS, NOW, Super NOW, telephone transfers)
Nontransaction balances
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions, and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 8
Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities)9
Oct. 12
22,715
Oct. 19
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
27,028
22,061
24,007
20,026
27,884
213,718
221,963
25,251
21,944
20,285
211,942
212,650
218,380
212,164
219,266
214,932
217,719
0
0
15,056
5,935
0
0
15,074
5,905
0
0
15,306
6,119
0
0
15,198
6,110
0
0
15,256
6,125
0
0
15,180
6,126
0
0
15,113
6,183
0
0
15,381
6,465
0
0
15,623
6,660
2,249
4,783
2,088
0
0
17,171
12,711
1,229
11,482
4,460
0
2,337
4,760
2,070
0
0
17,165
12,703
1,230
11,473
4,462
0
2,377
4,754
2,057
0
0
17,197
12,652
1,224
11,428
4,545
0
2,306
4,720
2,062
0
0
17,206
12,653
1,226
11,427
4,553
0
2,432
4,740
1,958
0
0
17,350
12,562
1,155
11,407
4,788
0
2,429
4,664
1,961
0
0
17,435
12,557
1,156
11,401
4,878
0
2,320
4,677
1,934
0
0
17,403
12,496
1,098
11,399
4,907
0
2,323
4,672
1,921
0
0
17,512
12,481
1,090
11,391
5,031
0
2,217
4,835
1,911
0
0
17,718
12,482
1,092
11,390
5,236
0
25,177
12,510
7,401
5,267
169,432
163,954
55,825
363
55,462
55,071
392
49,341
3,107
46,234
21,120
19,985
11,367
2,542
6,076
4,360
203
6,689
724
5,707
5,478
1,624
13,269
154,538
61,586
25,200
10,937
8,866
5,397
170,132
164,636
56,030
376
55,654
55,265
388
49,215
3,128
46,087
20,632
21,098
11,631
3,202
6,265
4,434
222
6,647
656
5,702
5,496
1,621
13,300
155,212
63,863
29,831
14,362
9,313
6,156
170,930
165,406
55,973
368
55,606
55,222
383
49,569
3,128
46,441
20,431
20,132
11,459
2,401
6,272
5,761
263
6,615
618
6,044
5,524
1,582
13,301
156,046
62,012
26,759
12,608
8,123
6,028
167,894
162,370
55,474
352
55,122
54,700
422
49,366
3,142
46,224
20,449
19,501
11,235
1,989
6,277
4,804
247
6,560
596
5,372
5,525
1,598
13,295
153,001
63,701
30,393
14,210
9,818
6,366
171,189
165,662
56,646
493
56,153
55,769
383
49,125
3,189
45,936
20,457
20,316
11,435
2,118
6,762
5,4%
227
6,509
658
6,228
5,527
1,587
13,335
156,267
63,616
26,868
10,798
9,462
6,609
170,445
164,906
56,438
422
56,016
55,652
363
49,332
3,183
46,149
20,453
21,168
11,826
2,672
6,671
4,765
209
6,444
622
5,474
5,539
1,613
13,383
155,449
60,123
26,548
13,642
7,151
5,755
173,614
168,008
56,622
462
56,160
55,773
387
49,436
3,194
46,242
20,578
22,568
12,977
2,973
6,618
5,075
204
6,439
667
6,420
5,606
1,608
13,352
158,654
63,359
24,195
10,424
7,578
6,193
171,595
165,990
55,816
440
55,376
55,001
375
49,162
3,211
45,951
20,679
21,123
11,565
2,807
6,752
5,976
207
6,524
660
5,842
5,605
1,616
13,351
156,628
61,660
29,736
14,717
8,394
6,625
173,781
168,182
56,290
483
55,807
55,372
436
49,292
3,222
46,069
20,709
21,789
11,748
2,964
7,077
6,294
197
6,397
592
6,622
5,600
1,611
13,284
158,886
61,130
296,244
301,764
302,336
296,150
309,910
297,117
305,085
295,404
310,977
53,516
36,786
910
1,032
5,555
4,957
708
3,567
55,520
39,033
590
243
5,928
5,642
432
3,651
53,195
37,717
597
834
5,424
5,278
526
2,818
50,013
35,664
550
467
5,370
4,635
444
2,883
56,273
38,544
652
215
5,695
4,626
567
5,975
50,729
36,031
535
269
4,557
5,466
522
3,349
58,595
41,024
760
588
6,452
5,548
745
3,477
52,540
37,369
568
562
4,438
5,722
758
3,123
57,536
40,412
661
596
5,542
5,922
666
3,736
8,663
107,490
97,784
7,580
29
1,776
320
70,285
1,595
3,556
65,134
30,012
8,618
108,884
99,019
7,703
27
1,826
309
72,084
0
4,728
67,357
29,731
8,573
109,499
99,222
8,108
29
1,822
318
72,342
0
5,163
67,180
32,024
8,373
109,263
98,984
8,131
32
1,806
310
69,315
0
5,928
63,386
32,576
8,688
109,637
99,412
8,157
35
1,747
285
74,428
0
4,184
70,244
34,225
8,634
110,680
100,420
8,202
23
1,751
284
66,848
0
1,911
64,938
33,186
8,646
110,439
100,171
8,216
26
1,741
284
68,566
0
1,262
67,303
31,985
8,574
110,632
100,190
8,247
28
1,887
280
65,773
0
3,807
61,966
31,256
8,608
110,972
100,625
8,140
32
1,894
282
68,091
0
3,451
64,640
38,718
269,967
274,838
275,634
269,541
283,252
270,078
278,230
268,774
283,926
26,277
26,927
26,702
26,609
26,658
27,039
26,855
26,630
27,051
202,959
170,732
39,974
3,491
205,002
172,764
40,062
3,346
207,442
174,939
40,924
3,990
203,215
170,811
40,941
3,600
208,543
175,937
40,996
3,998
207,305
174,690
40,998
3,654
206,060
173,543
41,022
4,816
206,696
173,802
41,310
4,163
210,393
177,052
41,053
3,299
MEMO
70
71
72
73
Total loans and leases (gross) and investments adjusted 2,10
Total loans and leases (gross) adjusted
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less
1. These data also appear in the Board's H.4.2 (504) release. For address, see
inside front cover.
2. Excludes trading account securities.
3. Not available due to confidentiality.
4. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
5. Includes securities purchased under agreements to resell.
FRASER allocated transfer risk reserve.
6. Includes
Digitized for
7. Includes trading account securities.
8. Includes federal funds purchased and securities sold under agreements to
repurchase.
9. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
10. Exclusive of loans and federal funds transactions with domestic commercial banks.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1988
Account
Oct.
37
38
39
40
Cash and due from depository institutions . . .
Total loans and securities
U.S. Treasury and government agency
securities
Other securities
Federal funds sold
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 governments 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
Transaction accounts and credit balances .
Individuals, partnerships, and
corporations
Other
Nontransaction accounts
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
41
42
Total loans (gross) and securities adjusted
Total loans (gross) adjusted 6
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
5
10,810
111,005
Oct.
12
10,389
109,214
Oct.
19
11,434
111,938
Oct.
26
10,286
109,648
Nov.
2
Nov.
9
Nov.
16
Nov.
23
Nov.
30
11,233
111,506
12,579
111,583
11,887
112,279
11,126
110,161
10,817
112,853
7,978
7,178
8,064
5,690
2,374
87,785
56,508'
8,035
7,186
7,583
5,201
2,382
86,410
55,974'
7,756
7,320
10,198
7,972
2,226
86,663
55,384'
7,760
7,315
9,290
6,852
2,437
85,283
55,229'
7,885
7,288
8,489
5,823
2,666
87,843
56,483
7,751
7,237
9,036
6,729
2,307
87,558
55,888
7,834
7,242
10,864
8,861
2,003
86,340
55,485
7,546
7,202
7,293
5,465
1,828
88,120
55,635
7,651
7,259
10,173
7,878
2,294
87,771
56,064
1,679
54,829'
53,093'
1,736
17,212
13,114
1,025
3,074
1,595
54,378'
52,758'
1,620
16,615
12,330
974
3,311
1,617
53,767'
52,185'
1,582
17,759
13,462
1,247
3,050
1,630
53,599'
51,931'
1,668
16,460
12,372
1,133
2,955
1,555
54,928
53,223
1,704
17,062
12,648
1,350
3,065
1,604
54,283
52,608
1,675
17,078
12,773
1,174
3,130
1,689
53,797
52,224
1,573
16,136
11,902
1,157
3,076
1,736
53,899
52,279
1,620
17,424
13,038
1,221
3,166
1,554
54,511
52,871
1,640
16,307
12,018
1,220
3,070
639
1,647
11,779'
30,253
17,264
169,331
642
1,432
11,748'
30,248
16,149
166,000
637
1,238
11,645'
30,266
17,907
171,546
548
1,235
30,442
18,220
168,5%
621
1,611
12,066
30,628
17,526
170,893
743
1,467
12,382
31,572
16,7%
172,529
820
1,449
12,448
32,2%
14,936
171,399
801
1,805
12,455
32,715
18,101
172,104
830
1,761
12,808
33,025
15,233
171,928
44,095
3,785
44,238'
3,820
43,954
3,836
44,232
4,393
43,758
4,549
43,029
3,642
43,390
4,301
43,941
3,888
44,179
3,954
2,459
1,326
40,310
2,471
1,349
40,417'
2,486
1,350
40,118
2,613
1,780
39,838
2,655
1,894
39,209
2,350
1,292
39,387
2,882
1,418
39,089
2,497
1,391
40,053
2,451
1,503
40,225
33,344
6,966
33,443'
6,974
33,308
6,809
33,030
6,808
32,723
6,486
32,891
6,4%
32,634
6,455
33,630
6,423
33,713
6,512
69,346
34,338
67,445
33,094
72,608
35,647
69,%2
35,242
69,132
33,914
70,561
33,385
68,504
31,479
67,646
24,603
68,197
31,021
19,425
14,914
35,007
16,299
16,795
34,351
18,337
17,309
36,961
19,373
15,869
34,720
17,088
16,826
35,218
17,674
15,712
37,176
16,307
15,172
37,024
12,087
12,516
43,043
16,454
14,567
37,176
24,526
10,481
31,423
24,468
169,331
23,776
10,575
31,387
22,931'
166,000
26,219
10,742
31,439
23,546
171,546
23,552
11,168
31,354
23,048
168,5%
23,628
11,590
31,582
26,420
170,893
25,763
11,413
32,911
26,028
172,529
25,668
11,356
33,837
25,668
171,399
28,072
14,971
33,964
26,552
172,104
25,744
11,432
34,168
25,383
171,928
92,202
77,045
91,683
76,462
90,504
75,427
90,424
75,348
93,035
77,862
92,081
77,092
91,516
76,440
91,659
76,910
92,957
78,048
11,81c
MEMO
..
1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and
agencies of foreign banks that include those branches and agencies with assets of
$750 million or more on June 30,1980, plus those branches and agencies that had
reached the $750 million asset level on Dec. 31,1984. These data also appear in the
Board's H.4.2 (504) release. For address, see inside front cover.
2. Includes securities purchased under agreements to resell.
3. Includes credit balances, demand deposits, and other checkable deposits.
4. Includes savings deposits, money market deposit accounts, and time
deposits.
5. Includes securities sold under agreements to repurchase.
6. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22 DomesticNonfinancialStatistics • February 1989
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1987
1983
1984
Dec.
Dec.
1985
Dec.
,4
1988
1986
Dec.
June
1
All holders—Individuals, partnerships, and
corporations
2
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Sept.
Dec.
Mar.
June
Sept.
293.5
302.7
321.0
363.6
340.2
339.0
343.5
328.6
346.5
337.8
32.8
161.1
78.5
3.3
17.8
31.7
166.3
81.5
3.6
19.7
32.3
178.5
85.5
3.5
21.2
41.4
202.0
91.1
3.3
25.8
36.6
187.2
90.1
3.2
23.1
36.5
188.2
88.7
3.2
22.4
36.3
191.9
90.0
3.4
21.9
33.9
184.1
86.9
3.5
20.3
37.2
194.3
89.8
3.4
21.9
34.8
190.3
87.8
3.2
21.7
Weekly reporting banks
1987
1983
Dec.
1984
Dec. 2
1985
Dec.
,4
1988
1986
Dec.
June
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.
Mar. 5
June
Sept.
146.2
157.1
168.6
195.1
179.3
179.1
183.8
181.8
191.5
185.3
24.2
79.8
29.7
3.1
9.3
25.3
87.1
30.5
3.4
10.9
25.9
94.5
33.2
3.1
12.0
32.5
106.4
37.5
3.3
15.4
29.3
94.8
37.5
3.1
14.6
29.3
96.0
37.2
3.1
13.5
28.6
100.0
39.1
3.3
12.7
27.0
98.2
41.7
3.4
11.4
30.0
103.1
42.3
3.3
12.8
27.2
101.5
41.8
3.1
11.7
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described iri the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data refle ct a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
Sept.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - . 7 ; nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .
5. Beginning March 1988, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1987 based on the new weekly reporting panel are: financial
business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other,
13.1.
Financial Markets
A23
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1988
1984
Dec.
1983
Dec.
Instrument
1986
Dec.
1985
Dec.
1987
Dec.
May
June
July
Aug.
Sept.
Oct.
Commercial paper (seasonally adjusted unless noted otherwise)
187,658
2
3
4
5
6
298,779
329,991
357,129
414,312
417,788
423,599
426,685
421,224
423,759
56,485
78,443
101,072
101,958
137,838
142,322
148,125
148,224
151,491
148,944
2,441
2,035
1,602
2,265
1,428
1,422
1,448
1,340
983
901
840
97,042
110,543
135,320
151,820
173,939
185,876
184,658
185,063
187,305
179,690
182,663
35,566
46,161
Financial companies 1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper*
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 4
237,586
44,455
1 All issuers
42,105
70,558
44,778
85,016
40,860
77,099
43,173
81,232
47,719
90,598
45,294
90,808
44,975
90,411
47,818
91,156
43,887
90,043
41,803
92,152
Bankers dollar acceptances (not seasonally adjusted) 5
78,309
11
12
13
64,974
70,565
63,381
64,359
63,240
64,036
63,452
62,253
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
9,412
8,588
825
9,734
8,861
873
9,655
8,702
953
9,551
8,664
888
9,334
8,400
934
9,083
8,026
1,057
0
671
67,881
0
937
56,279
0
1,317
50,234
0
965
58,658
0
1,050
52,918
0
1,273
53,351
0
1,114
52,471
0
9,915
53,493
0
9,634
53,154
0
1,166
52,004
15,649
16,880
45,781
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
68,413
418
729
67,807
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
78,364
9,355
8,125
1,230
7 Total
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,045
14,534
34,803
14,244
14,606
35,510
14,001
14,676
34,564
14,608
14,345
35,083
14,622
13,946
34,884
14,064
14,067
34,122
1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with
investors.
4. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
5. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The new reporting group accounts for over 90
percent of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Period
Rate
10.50
10.00
9.50
9.00
8.50
8.00
7.50
7.75
8.00
8.25
8.75
9.25
9.00
8.75
8.50
9.00
9.50
1985
1986
1987
9.93
8.33
8.21
1985 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
10.61
10.50
10.50
10.50
10.31
9.78
9.50
9.50
9.50
9.50
9.50
9.50
1986 —Jan.
Feb.
9.50
9.50
10.00
10.50
NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415)
releases. For address, see inside front cover.
Average
rate
Average
rate
1986 —Mar.
Apr.
May
June
July
Aug.
Sept.
Oct..
Nov.
Dec.
9.10
8.83
8.50
8.50
1987 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
Period
1987 —Sept.
Oct.
Nov.
Dec.
8.16
7.90
7.50
7.50
7.50
7.50
1988 —Jan.
Feb.
Mar.
Apr.
May.
June,
July .
Aug.
Sept.
Oct.
Nov.
A24 DomesticNonfinancialStatistics • February 1989
1.35
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1988
Instrument
1985
1986
1988, week ending
1987
Aug.
Sept.
Oct.
Nov.
Oct. 28
Nov. 4
Nov. 11
Nov. 18
Nov. 25
MONEY MARKET RATES
1 Federal funds 1 ' 2
2 Discount window borrowing 1, ,3
Commercial paper '
3
1-month
4
3-month
5
6-month
Finance paper, directly placed 4 .
6
1-month
7
3-month
8
6-month
^
Bankers acceptances •
9
3-month
10
6-month
Certificates of deposit, secondary market
11
1-month
12
3-month
13
6-month
14 Eurodollar deposits. 3-month
U.S. Treasury bills 5
Secondary market
15
3-month
16
6-month
17
1-year
Auction average 1 0
18
3-month
19
6-month
20
1-year
8.10
7.69
6.80
6.32
6.66
5.66
8.01
6.37
8.19
6.50
8.30
6.50
8.35
6.50
8.29
6.50
8.36
6.50
8.31
6.50
8.26
6.50
8.33
6.50
7.93
7.95
8.00
6.61
6.49
6.39
6.74
6.82
6.85
8.09
8.26
8.36
8.09
8.17
8.23
8.12
8.24
8.24
8.38
8.66
8.55
8.16
8.29
8.28
8.22
8.32
8.25
8.31
8.42
8.34
8.42
8.65
8.57
8.46
8.86
8.71
7.90
7.77
7.74
6.57
6.38
6.31
6.61
6.54
6.37
7.96
7.95
7.57
7.96
7.95
7.71
8.05
8.06
7.80
8.29
8.20
7.94
8.08
8.11
7.80
8.12
8.12
7.80
8.23
8.20
7.91
8.35
8.23
7.95
8.37
8.22
8.03
7.91
7.95
6.38
6.28
6.75
6.78
8.19
8.30
8.06
8.15
8.15
8.13
8.55
8.46
8.18
8.16
8.18
8.11
8.34
8.26
8.59
8.50
8.78
8.67
7.96
8.04
8.24
8.28
6.61
6.51
6.50
6.71
6.75
6.87
7.01
7.06
8.08
8.35
8.66
8.47
8.12
8.23
8.50
8.31
8.15
8.36
8.48
8.51
8.43
8.78
8.81
8.91
8.18
8.41
8.51
8.56
8.23
8.43
8.45
8.51
8.30
8.55
8.58
8.61
8.41
8.80
8.84
8.85
8.49
9.00
9.04
9.05
7.47
7.65
7.81
5.97
6.02
6.07
5.78
6.03
6.33
7.06
7.39
7.59
7.24
7.43
7.53
7.35
7.50
7.54
7.76
7.86
7.87
7.42
7.53
7.55
7.38
7.51
7.53
7.57
7.75
7.76
7.91
7.94
7.94
8.01
8.06
8.06
7.47
7.64
7.80
5.98
6.03
6.18
5.82
6.05
6.33
7.02
7.36
7.40
7.23
7.43
7.60
7.34
7.50
7.57
7.68
7.76
7.92
7.45
7.54
7.57
7.37
7.48
n.a.
7.54
7.71
n.a.
7.82
7.87
n.a.
7.97
7.99
7.92
8.42
9.27
9.64
10.12
10.50
10.62
10.97
10.79
6.45
6.86
7.06
7.30
7.54
7.67
7.85
7.78
6.77
7.42
7.68
7.94
8.23
8.39
n.a.
8.59
8.17
8.63
8.77
8.94
9.13
9.26
n.a.
9.32
8.09
8.46
8.57
8.69
8.87
8.98
n.a.
9.06
8.11
8.35
8.43
8.51
8.69
8.80
n.a.
8.89
8.48
8.67
8.72
8.79
8.89
8.96
n.a.
9.02
8.13
8.34
8.42
8.47
8.66
8.77
n.a.
8.88
8.10
8.29
8.38
8.44
8.59
8.72
n.a.
8.80
8.35
8.55
8.61
8.69
8.81
8.91
n.a.
8.98
8.55
8.72
8.77
8.84
8.92
8.99
n.a.
9.08
8.71
8.89
8.94
8.99
9.05
9.10
n.a.
9.13
10.75
8.14
8.64
9.33
9.06
8.89
9.07
8.88
8.78
8.97
9.15
9.24
8.60
9.58
9.11
6.95
7.76
7.32
7.14
8.17
7.64
7.51
7.89
7.79
7.39
7.84
7.66
7.25
7.72
7.47
7.35
7.78
7.46
7.20
7.65
7.36
7.28
7.70
7.33
7.34
7.77
7.44
7.37
7.82
7.50
7.41
7.84
7.58
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.91
9.38
9.68
9.99
10.58
10.58
10.11
10.37
10.63
11.21
10.28
9.82
10.06
10.34
10.90
9.90
9.51
9.71
9.99
10.41
9.91
9.45
9.72
9.99
10.48
9.87
9.44
9.68
9.97
10.39
9.81
9.39
9.63
9.90
10.32
9.85
9.38
9.67
9.93
10.40
9.92
9.45
9.74
10.00
10.49
10.00
9.52
9.80
10.08
10.58
12.06
9.61
9.95
10.45
10.26
10.11
10.12
10.00
10.02
10.08
10.20
10.20
10.44
4.25
8.76
3.48
8.37
3.08
9.39
3.75
9.25
3.69
9.23
3.61
9.29
3.70
9.23
3.55
9.20
3.56
9.20
3.68
9.35
3.82
9.35
3.76
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
U.S. Treasury notes and bonds 1 1
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite
Over 10 years (long-term)
State and local notes and bonds
Moody's series 14
Aaa
Baa
Bond Buyer series
Corporate bonds
Seasoned issues 16
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility
bonds 1 7
MEMO: Dividend/price ratio 18
39
Preferred stocks
40
Common stocks
1. Weekly, monthly and annual figures are averages of all calendar days,
where the rate for a weekend or holiday is taken to be the rate prevailing on the
preceding business day. The daily rate is the average of the rates on a given day
weighted by the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding " f l o w e r " bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
A25
Selected Statistics
1988
Indicator
1985
1986
1987
Mar.
Apr.
May
June
Aug.
July
Sept.
Oct.
Nov.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
Utility
4
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)'
7 American Stock Exchange
(Aug. 31, 1973 = 50?
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
108.09
123.79
104.11
56.75
114.21
136.00
155.85
119.87
71.36
147.19
161.70
195.31
140.39
74.29
146.48
149.88
181.57
135.15
71.16
125.27
148.46
181.01
133.40
69.35
121.66
144.99
176.02
127.63
68.66
120.35
152.72
184.92
136.02
72.25
129.04
152.12
184.09
136.49
71.49
129.99
149.25
179.72
132.52
70.67
130.77
151.47
182.18
136.27
71.83
133.15
156.36
188.58
141.83
74.19
136.09
152.67
182.25
137.51
79.28
130.05
186.84
236.34
286.83
265.74
262.61
256.12
270.68
269.05
263.73
267.97
277.40
271.02
229.10
264.38
316.61
295.78
300.43
296.30
306.13
307.48
297.76
297.86
302.83
292.25
109,191
8,355
141,385
11,846
188,647
13,832
176,189
12,442
162,518
10,706
153,906
8,931
195,772
11,348
166,916
9,938
144,668
9,307
145,702
8,198
162,631
9,051
134,427
8,497
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
28,390
36,840
31,990
32,660
33,270
33,070
32,300
31,770
31,930
32,770
33,410
33,640
Free credit balances at brokers4
11 Margin-account
12 Cash-account
2,715
12,840
4,880
19,000
4,750
15,640
4,615
14,355
4,395
13,965
4,380
14,150
4,580
14,460
4,485
14,340
4,655
14,045
4,725
14,175
5,065
14,880
4,920
15,185
Margin requirements (percent of market value and effective date) 6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26 DomesticNonfinancialStatistics • February 1989
1.37 SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1987
Account
1985
1988
1986
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.
FSLIC-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed securities
4 Contra-assets to mortgage assets'
5 Commercial loans
6 Consumer loans
7 Contra-assets to nonmortgage loans2
8 Cash and investment
securities
9 Other 3
1,070,012
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
1,254,885
1,257,466 1,261,581 1,274,494' 1,285,329' 1,290,209' 1,299,668' 1,311,687
1,323,444
697,451
721,593
722,944
723,856
725,625
728,984'
733,549'
737,171'
743,374'
751,802
754,926
115,525
158,193
201,828
201,732
197,811
197,889
202,742
205,028
207,524'
208,223
210,317
211,246
45,219
17,424
45,809
41,799
23,683
51,622
42,344
23,163
57,902
41,291
23,538
58,342
40,836
23,340
58,687
41,268
24,004
58,390
39,359'
24,243
59,121'
39,765'
24,201
60,250'
40,123'
24,681'
61,137'
40,165'
24,%5'
61,573'
38, %8
25,0%
62,402
38,539
24,864
61,809
2,521
3,041
3,467
3,580
3,524
3,628
3,513'
3,395'
3,504'
3,372'
3,137
3,069
143,538
104,739
164,844
112,898
169,717
122,462
169,953
123,247
174,106
124,025
176,386
124,184
177,980
124,2%'
179,645
125,816'
177,607'
125,716'
178,643'
126,428'
175,730
128,446
182,277
129,930
1,163,851 1,250,855
1,254,885
1,257,466 1,261,581 1,274,494' 1,285,329' 1,290,209' 1,299,668' 1,311,687
1,323,444
10 Liabilities and net worth . 1,070,012
11
12
13
14
15
16
1,163,851 1,250,855
690,717
843,932
157,666
84,390
73,276
21,756
46,657
890,664
196,929
100,025
96,904
23,975
52,282
932,616
249,917
116,363
133,554
21,941
46,382
939,080
246,088
114,053
132,035
23,873
45,845
946,790
239,452
112,725
126,727
25,818
45,406
958,471
237,563'
112,389
125,174r
22,555
42,892
%2,316'
244,990
113,029
131,961
24,620'
42,568'
%3,761'
250,695
114,994
135,701
27,157'
43,717'
966,759'
257,117'
117,281'
139,836'
24,556'
41,777'
%8,221'
262,730'
118,207'
144,523'
27,109'
41,608'
968,303
266,710
120,667
146,043
28,911
47,763
973,598
273,588
123,390
150,198
25,995
50,264
FSLIC-insured federal savings banks
17 Assets
131,868
210,562
284,272
284,303
295,951
307,756
311,434
323,030
329,739'
333,612'
357,626
367,178
72,355
113,638
164,013
163,915
171,592
178,260
180,586
186,818
190,646'
193,155'
204,350
207,978
15,676
29,766
45,826
46,171
46,687
47,979
49,075'
51,29C
52,648'
53,049'
55,710
56,402
' 8,361
9,100
6,504
17,6%
8,909
6,4%
17,649
9,175
6,971
18,795
9,460
7,378
19,141
9,346
7,531
19,616
9,736
7,639
20,426
10,087
7,906
21,142'
10,134'
7,920
21,444'
10,913
8,570
22,520
11,127
8,699
22,412
678
698
737
800
724
707'
739'
699'
771
792
ii,723
19,034
591
35,347
24,070
604
34,645
24,430
584
35,718
25,517
611
38,224
26,424
615
38,273
25,822
652
39,903
26,760
708
40,274
27,230'
735
40,842
27,317'
791
44,790
32,598
806
48,442
34,359
131,868
210,562
284,272
284,303
295,951
307,756
311,434
323,030
329,739^
333,612'
357,626
367,178
157,872
37,329
19,897
17,432
4,263
11,098
203,1%
60,716
29,617
31,099
5,324
15,036
204,329
59,206
28,280
30,926
5,838
14,930
214,169
59,704
29,169
30,535
6,602
15,477
224,169
61,552
30,456
31,0%
6,089
15,946
226,544'
62,566
30,075
32,491
6,39C
16,087
232,656'
66,816
31,682
35,134
7,122'
16,587
236,759'
69,348
32,177
37,171
6,643'
16,886
239,591'
70,015
31,941
38,074
7,061'
16,859
256,224
75,808
35,357
40,451
8,061
17,432
261,725
80,639
37,204
43,435
7,374
17,340
18 Mortgages
19 Mortgage-backed securities
20 Contra-assets to mortgage assets'
21 Commercial loans
22 Consumer loans
23 Contra-assets to nonmortgage loans . . .
24 Finance leases plus
interest
25 Cash and investment ..
26 Other
27 Liabilities and net worth
28
29
30
31
32
33
103,462
19,323
10,510
8,813
2,732
6,351
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
Savings banks
34 Assets
35
36
37
38
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed
securities
State and local
government
Corporate and other .
Cash
Other assets
216,776
236,866
259,643
258,428
259,224
262,100
262,269
264,507
269,369
272,459
272,327
255,544
110,448
30,876
118,323
35,167
138,494
33,871
137,858
35,095
139,108
35,752
140,835
36,476
139,691
37,471
143,235
35,927
147,366
35,990
149,115
36,538
150,293
36,402
143,628
33,140
13,111
14,205'
13,510
12,776
12,269
12,225
13,203
12,490
12,227
12,222
11,939
11,120
19,481
25,836
32,772
32,241
32,423
32,272
31,072
31,861
32,669
33,017
32,982
28,205
2,323
21,199
6,225
13,113
2,185
20,459
6,894
13,793
2,003
18,772
5,864
14,357
1,994
18,780
4,841
15,043
2,053
18,271
5,002
14,346
2,033
18,336
4,881
15,042
2,013
18,549
5,237
15,033
1,933
18,298
5,383
15,380
1,877
18,332
5,094
15,814
1,868
18,376
5,449
15,874
1,929
18,134
4,906
15,742
1,891
17,234
5,155
14,171
43 Liabilities
216,776
236,866
259,643
258,628
259,224
262,100
262,269
264,507
269,369
272,459
272,327
255,544
44 Deposits
45 Regular4
46
Ordinary savings . .
47
Time
48 Other
49 Other liabilities
50 General reserve
accounts
185,972
181,921
33,018
103,311
4,051
17,414
192,194
186,345
37,717
100,805'
5,845'
25,274
201,497
196,037
41,959
112,429
5,460
35,720
199,545
194,322
41,047
112,781
5,223
36,836
200,391
195,336
41,234
113,751
5,055
35,787
203,407
198,273
41,867
115,529
5,134
35,737
203,273
197,801
41,741
115,887
5,472
35,827
205,692
200,098
42,403
117,297
5,594
35,836
209,227
203,434
43,282
119,815
5,793
36,779
210,751
204,851
43,228
121,356
5,900
37,584
210,399
204,866
42,651
122,959
5,533
37,824
197,151
192,079
39,916
116,086
5,436
35,019
12,823
18,105
20,633
20,514
20,894
21,024
21,109
21,179
21,385
21,559
21,405
20,142
39
40
41
42
Financial Markets
All
1.37—Continued
1987
Account
1985
1988
1986
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
f
t
Credit unions 5
51 Total assets/liabilities
and capital
52
53
Federal
State
54 Loans outstanding..
55
Federal
56
State
5/ Savings
58
Federal
59
State
118,010
147,726
77,861
40,149
95,483
52,243
73,513
47,933
25,580
105,963
70,926
35,037
86,137
55,304
30,833
134,327
87,954
46,373
f
t
f
1
1
1
n.a.
n.a.
n.a.
I
1
1
•
1
•
1
t
1
169,111
169,175
172,456
172,345
173,276
109,797
59,314
109,913
59,262
112,595
59,855
112,573
59,772
113,068
60,208
101,965
65,732
36,233
156,045
101,847
54,198
103,271
66,431
36,840
155,105
101,048
54,057
105,704
68,213
37,491
157,764
103,129
54,635
105,800
68,658
37,142
158,186
103,347
54,839
1
1
107,065
69,626
37,439
159,314
104,256
55,058
n.a.
n.a.
1
1
•
•
1
1
Life insurance companies
60 Assets
61
62
63
64
65
66
67
68
69
70
/I
Securities
Government
United States 6 ..
State and local .
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
825,901
937,551
l,044,459 r
1,042,350'
1,052,645
1,065,549
1,075,541
1,094,827
1,105,546
1,113,547
1,121,337
75,230
51,700
9,708
13,822
423,712
346,216
77,496
171,797
28,822
54,369
71,971
84,640
59,033
11,659
13,948
492,807
401,943
90,864
193,842
31,615
54,055
80,592
84,426'
57,078'
10,68 l r
16,667'
569,199'
472,684'
96,515'
203,545'
34,172'
53,626'
89,586'
91,682'
64,922'
11,749'
15,011'
563,019'
469,207'
93,812'
212,637'
34,178'
53,265'
87,569'
92,497
65,534
11,859
15,104
571,070
476,448
94,622
213,182
34,503
52,720
88,673
92,408
65,218
12,033
15,157
580,392
484,403
95,989
214,815
34,845
52,604
90,499
93,946
66,749
11,976
15,221
587,846
490,285
97,561
215,383
34,964
52,568
90,834
86,711
58,988
11,016
16,707
606,445
503,728
102,717
219,012
35,484
53,013
94,162
87,160
59,351
11,114
16,695
614,052
509,105
104,947
220,870
35,545
53,107
94,812
88,218
60,244
11,102
16,872
618,742
514,926
103,816
221,990
35,737
53,142
95,718
88,362
60,407
11,190
16,765
644,917
540,796
104,121
233,438
35,920
53,194
95,505
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
3. Holding of stock in Federal Home Loan Bank and Finance leases plus
interest are included in "Other" (line 9).
4. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
n.a.
NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions
insured by the FSLIC and based on the FHLBB thrift Financial Report.
FSLIC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSLIC and based on the FHLBB thrift Financial
Report.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
A28
D o m e s t i c Financial Statistics • F e b r u a r y 1989
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1986
Fiscal
year
1987
Fiscal
year
1988
1988
June
U.S. budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus, or deficit ( - ) , total
8
On-budget
9
Off-budget
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-)l
12
Other 2
10
11
769,091
568,862
200,228
990,258
806,760
183,498
-221,167
-237,898
16,731
854,143
640,741
213,402
1,004,586
810,754
193,832
-150,444
-170,014
19,570
908,953
667,462
241,491
1,064,055
861,364
202,691
-155,102
-193,901
38,800
July
Aug.
Sept.
Oct.
Nov.
99,205
77,643
21,562
90,071
72,888
17,184
-22,583
4,755
4,379
60,690
40,980
19,710
83,634
66,818
16,816
9,134
-25,838
2,894
69,479
51,015
18,464
92,561
74,756
17,805
-22,944
-23,741
659
97,803
75,586
22,217
87,588
70,071
17,518
-23,082
5,515
4,699
63,646
45,847
17,799
91,086
73,945
17,141
-27,440
-28,097
658
64,408
47,023
17,385
93,426
75,427
17,999
-29,018
-28,403
-614
236,187
150,070
166,171
11,391
3,665
23,370
14,665
10,716
31,520
-14,324
-696
-5,052
5,426
-7,963
-3,106
-20,638
113
15,696
3,583
10,954
-11,242
-31,444
6,564
13,748
2,976
9,218
-11,720
31,384
7,514
23,870
36,436
9,120
27,316
44,398
13,024
31,375
39,604
9,762
29,842
23,908
3,910
19,998
12,954
4,390
8,564
44,398
13,024
31,375
30,650
6,151
24,499
21,432
5,198
16,234
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the F F B to finance their p r o e m s . The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U . S . currency valuation adjustment; net gain/loss for I M F valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S.
Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1987
Fiscal
year
1988
1987
1986
1988
1988
H2
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
854,143
1 All sources
2 Individual income taxes, net
3
Withheld
Presidential Election Campaign Fund
4
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
Refunds
8
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
11
Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts 4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
908,954
387,524
447,282
421,712
476,115
97,803
63,646
64,408
392,557
322,463
33
142,957
72,896
401,181
341,435
33
132,199
72,487
183,156
164,071
4
27,733
8,652
205,157
156,760
30
112,421
64,052
192,575
170,203
4
31,223
8,853
207,659
169,300
28
101,614
63,283
41,784
27,209
1
16,793
2,219
31,287
28,824
0
3,430
967
29,822
30,092
0
1,367
1,638
102,859
18,933
109,683
15,487
42,108
8,230
52,396
10,881
52,821
7,119
58,002
8,706
21,380
712
3,789
1,995
2,662
1,219
303,318
334,335
134,006
163,519
143,755
181,058
28,694
23,848
25,075
273,028
305,093
122,246
146,696
130,388
164,412
27,991
22,400
22,051
13,987
25,575
4,715
17,691
24,584
4,659
1,338
9,328
2,429
12,020
14,514
2,310
1,889
10,977
2,390
14,839
14,363
2,284
2,326
285
419
0
1,101
347
326
2,641
382
32,457
15,085
7,493
19,307
35,540
16,198
7,594
19,909
15,947
7,282
3,649
9,605
15,845
7,129
3,818
10,299
17,680
7,993
3,610
10,399
16,440
7,851
3,863
9,950
3,158
1,367
678
1,454
3,134
1,381
662
1,540
3,247
1,403
753
2,666
1,003,830
1,064,044
506,556
503,267
532,839
513,210
87,588
91,086
93,426
281,999
11,649
9,216
4,115
13,363
27,356
290,349
10,469
10,876
2,342
14,538
17,210
138,544
8,938
4,594
2,446
7,141
15,660
142,886
4,374
4,324
2,335
6,175
11,824
146,995
4,487
5,469
1,468
7,590
14,640
143,080
7,150
5,361
555
6,776
7,872
21,941
-691
702
116
1,625
-414
25,938
2,176
1,136
366
1,451
3,025
24,702
-2,055
1,116
539
1,465
3,243
6,182
26,228
5,051
19,064
27,196
5,577
3,764
14,745
3,651
4,893
12,113
3,108
3,852
14,096
2,075
5,951
12,700
2,765
6,076
2,568
743
477
2,504
648
2,764
2,570
588
OUTLAYS
18 All types
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
29,724
30,856
16,209
14,182
15,592
15,451
2,588
2,644
3,054
29 Health
30 Social security and medicare
31 Income security
39,968
282,473
123,250
44,482
297,828
130,174
18,795
138,299
59,979
20,318
142,864
62,248
20,750
158,469
61,201
22,643
135,322
65,555
3,823
25,215
11,226
3,994
23,951
8,855
3,962
25,310
11,054
32
33
34
35
36
37
26,782
7,548
5,948
1,621
138,570
-36,455
29,248
9,205
8,552
966
151,711
-36,576
14,190
3,413
1,860
2,886
66,226
-16,475
12,264
3,626
3,344
337
70,110
-19,102
14,956
4,291
3,560
1,175
71,933
-17,684
13,241
4,761
4,337
448
76,098
-17,766
3,085
710
796
0
12,371
-4,892
1,857
865
934
0
13,014
-2,751
2,713
803
819
0
13,622
-2,844
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest 6
,
Undistributed offsetting receipts
1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1988.
A30
D o m e s t i c Financial Statistics •
F e b r u a r y 1989
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1988
1987
1986
Item
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1 Federal debt outstanding
2,063.6
2,129.5
2,218.9
2,250.7
2,313.1
2,354.3
2,435.2
2,493.2
2,555.1
2 Public debt securities
3
Held by public
4
Held by agencies
2,059.3
1,684.9
374.4
2,125.3
1,742.4
382.9
2,214.8
1,811.7
403.1
2,246.7
1,839.3
407.5
2,309.3
1,871.1
438.1
2,350.3
1,893.1
457.2
2,431.7
1,954.1
477.6
2,487.6
1,996.7
490.8
2,547.7
2,013.4
534.2
4.3
3.2
1.1
4.2
3.2
1.1
4.0
3.0
1.1
4.0
2.9
1.1
3.8
2.8
1.0
4.0
3.0
1.0
3.5
2.7
.8
5.6
5.1
.6
7.4
7.0
.5
5 Agency securities
6
Held by public
7
Held by agencies
2,060.0
2,111.0
2,200.5
2,232.4
2,295.0
2,336.0
2,417.4
2,472.6
2,532.2
9 Public debt securities
10 Other debt 1
2,058.7
1.3
2,109.7
1.3
2,199.3
1.3
2,231.1
1.3
2,293.7
1.3
2,334.7
1.3
2,416.3
1.1
2,472.1
.5
2,532.1
.1
11 MEMO: Statutory debt limit
2,078.7
2,111.0
2,300.0
2,300.0
2,320.0
2,800.0
2,800.0
2,800.0
2,800 0
8 Debt subject to statutory limit
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement
United States.
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
1987
1985
Type and holder
1986
Q3
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable
State and local government series
Foreign issues
Government
Public
Savings bonds and n o t e s . . v
Government account series
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
26
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local Treasurys
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors
Q1
Q2
1,663.0
1,945.9
2,214.8
2,431.7
2,350.3
2,431.7
2,487.6
2,547.7
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.1
1,943.4
1,437.7
399.9
812.5
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
2,347.7
1.676.0
378.3
1.005.1
277.6
671.8
129.0
4.3
4.3
97.0
440.7
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
2,484.9
1,758.7
392.6
1,059.9
291.3
726.2
142.9
90.6
386.9
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
102.3
474.4
2,545.0
1,769.9
382.3
1,072.7
299.9
775.1
146.9
5.7
5.7
.0
104.5
517.5
211.1
286.2
505.7
87.5
7.5
7.5
.0
78.1
332.2
2.3
2.5
2.8
2.8
2.5
2.8
2.6
2.7
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
173.0
348.9
181.3
1,417.2
192.2
25.1
115.4
59.0
224.0
403.1
211.3
1,602.0
238.3
28.0
135.4
68.8
260.0
477.6
222.6
1,745.2
253.3
14.3
n.a.
84.6
n.a.
457.2
211.9
1,682.6
251.3
15.2
143.0
477.6
222.6
1,745.2
253.3
14.3
n.a.
84.6
n.a.
490.8
217.5
1,778.2
260.7
15.2
n.a.
n.a.
n.a.
534.2
227.6
1,784.9
263.0
13.4
n.a.
n.a.
n.a.
74.5
69.3
192.9
354.7
79.8
75.0
212.5
434.2
92.3
70.5
251.6
467.1
101.1
n.a.
287.3
n.a.
98.5
70.4
267.0
n.a.
101.1
n.a.
287.3
n.a.
104.0
n.a.
320.8
n.a.
106.2
n.a.
332.3
n.a.
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
Q4
.0
.0
81.8
n.a.
6.1
6.1
.0
5. Consists of investments of foreign and international accounts. Excludes
non-interest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U . S . Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
A31
Transactions1
1.42 U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
1988
1988
Item
1985
1986
1987
Sept.
Oct/
Nov.
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery
U.S. Treasury securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures contracts
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions
U.S. Treasury securities
Federal agency securities
75,331
95,445
110,052
99,232
109,772
114,839
108,709''
113,848
123,649
128,035
108,879
99,379
32,900
1,811
18,361
12,703
9,556
34,247
2,115
24,667
20,456
13,961
37,924
3,272
27,918
24,014
16,923
27,406
3,249
28,204
25,854
14,519
29,617
3,287
28,673
30,401
17,794
32,560
3,537
32,827
27,078
18,838
30,237'
2,641'
31,231'
26,837
17,762
30,401
4,455
29,073
31,032
18,886
32,870
3,409
35,124
32,679
19,567
37,877
4,313
38,559
26,259
21,027
30,342
2,588
33,669
22,745
19,536
30,851
3,568
26,236
24,067
14,658
3,336
3,670
2,936
2,669
3,225
3,123
3,503
3,510
3,167
3,410
3,431
2,104
36,222
35,773
11,640
4,016
3,242
12,717
49,558
42,218
16,748
4,355
3,272
16,660
61,539
45,576
18,087
4,112
2,965
17,135
58,674
37,888
15,473
3,128
1,994
26,416
65,612
40,933
17,653
3,636
2,178
28,748
67,172
44,543
17,538
3,537
2,563
26,591
64,917'
40,288'
15,898'
3,564
2,034
26,399
68,026
42,312
18,731
3,121
2,054
28,662
74,829
45,652
17,949
2,948
2,643
25,452
73,917
50,708
22,852
3,818
3,404
27,892
62,572
42,875
15,760
3,941
2,057
25,960
57,330
39,945
13,979
3,816
2,497
26,914
5,561
6,085
252
3,311
7,175
16
3,233
8,964
5
2,555
9,393
0
2,777
10,681
0
2,461
11,018
0
2,059
10,369
0
3,529
12,349
0
2,847
11,057
0
2,346
11,710
0
2,737
9,575
0
1,907
11,389
0
1,283
3,857
1,876
7,831
2,029
9,290
1,479
7,601
1,769
8,024
3,114
8,190
2,128
6,406'
1,778
5,771
3,362
10,289
4,579
10,201
2,899
7,328
1,572
5,348
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. Treasury
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.
A32 DomesticNonfinancialStatistics • February 1989
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1988
Item
1985
1986
1988
1987
Sept.
Oct.
Nov.
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Positions
2
1
Net immediate
U.S. Treasury securities
7,391
12,912
-6,216
-26,759
-25,794r
-23,8%
-20,420
-26,361
-21,394
-24,242
-25,085
3,691'
-5,534
855
-11,191
-13,615
411
-3,599
-1,327
-7,619
-11,761
2,876
-5,404
4,175
-9,494
-12,573
-1,369
-5,003
1,732
-9,817
-11,905
1,295
-3,298
223
-7,334
-12,280
1,760
-2,521
-4,888
-7,549
-11,045
-1,274
-2,731
-5,134
-4,172
-11,774
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
10,075
1,050
5,154
-6,202
-2,686
12,761
3,706
9,146
-9,505
-3,197
4,317
1,557
649
-6,564
-6,174
6,816
-3,811
-2,896
-13,750
-13,117
7
8
9
10
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities
22,860
9,192
4,586
5,570
32,984
10,485
5,526
8,089
31,910
8,188
3,661
7,4%
29,023
8,200
1,786
6,830
30,169
8,262
2,247
6,770
32,174
8,436
2,565
5,965
31,554
9,071
2,729
6,466
33,920
8,724
2,481
6,079
34,515
8,732
2,845
6,615
31,092
7,748
2,452
5,593
28,925
8,131
2,317
5,352
-7,322
4,465
-722
-18,059
3,473
-153
-3,373
5,988
-95
-4,049
7,745
0
-4,388'
6,532
0
-1,978
5,873
0
-6,658
5,468
0
-4,336
5,065
0
-1,233
6,321
0
-547
5,960
0
1,058
6,664
0
-911
-9,420
-2,144
-11,840
-1,211
-18,817
-347
-16,988
-969
-17,558
-759
—16,961
-653
-17,791
-1,7%
-18,872
-919
-17,278
-428
-15,998
452
-15,081
11
12
13
14
15
Financing 3
Reverse repurchase agreements 4
Overnight and continuing
Term
,
Repurchase agreements
18
Overnight and continuing
19
Term
16
17
68,035
80,509
98,954
108,693
124,791
148,033
139,167
185,275
149,450
193,290
n.a.
n.a.
153,7%
212,406
143,779
216,432
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
101,410
70,076
141,735
102,640
170,840
120,980
178,459
134,107
189,508
145,288
n.a.
n.a.
193,3%
162,654
181,667
170,116
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. Treasury
securities dealers on its published list of primary dealers.
Data for positions are averages of daily figures, in terms of par value, based on
the number of trading days in the period. Positions are net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on
a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Immediate positions include
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. Treasury and federal agency securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched b o o k " repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1988
Agency
1984
1985
1986
1987
June
Sept.
Oct.
Federal agencies
Defense Department 1
Export-Import Bank '
Federal Housing Administration
Government National Mortgage Association participation
certificates 5
Postal Service
Tennessee Valley Authority
United States Railway Association
n.a.
Federally sponsored agencies 7
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Farm Credit Banks 8
Student Loan Marketing Association
Financing Corporation
Farm Credit Financial Assistance Corporation 11
293,905
307,361
341,386
354,446
355,810
n.a.
n.a.
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
37,981
13
11,978
183
36,361
11
11,232
116
36,465
11
11,232
116
n.a.
n.a.
11
11,232
115
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,222
85
1,615
6,103
18,089
0
830
5,842
18,330
0
830
5,842
18,434
0
5,842
18,494
0
5,842
18,511
0
237,012
65,085
10,270
83,720
72,192
5,745
257,515
74,447
11,926
93,896
68,851
8,395
270,553
88,752
13,589
93,563
62,478
12,171
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
303,405
115,725
17,645
97,057
55,275
16,503
1,200
318,085
117,773
17,619
104,757
55,779
19,257
2,900
n.a.
n.a.
319,345
119,409
17,844
104,751
54,538
19,453
2,900
450
324,110
121,266
19,652
105,730
53,582
19,680
3,750
450
328,246
126,011
18,368
105,986
53,764
19,917
3,750
450
145,217
Federal and federally sponsored agencies
10
11
12
13
14
15
16
17
Aug.
271,220
1
2
3
4
5
6
7
8
9
July
153,373
157,510
152,417
149,833
149,937
149,809
146,151
145,529
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,205
2,854
4,970
15,797
85
11,972
5,853
4,940
16,709
0
11,226
5,592
4,940
16,950
0
11,226
5,592
4,940
17,054
0
11,226
5,592
4,940
17,114
0
10,958
5,592
4,910
17,131
0
10,958
5,592
4,910
16,758
0
58,971
20,693
29,853
64,234
20,654
31,429
65,374
21,680
32,545
59,674
21,191
32,078
59,674
19,204
32,247
59,674
19,206
32,245
59,464
19,225
32,248
58,496
19,205
29,859
58,496
19,222
29,593
n.a.
11
10,964 R
120
n.a.
n.a.
8
10,964
118
n.a.
5,842
18,138
0
n.a.
127,113
17,384
105,698
53,923
n.a.
3,750
450
MEMO
18
Federal Financing Bank debt 1
19
20
21
22
23
Lending to federal and federally sponsored
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association
74
75
26
Other Lending13
Farmers Home Administration
Rural Electrification Administration
agencies
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 21.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation (established in January
1988 to provide assistance to the Farm Credit System) undertook its first
borrowing in July 1988.
12. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
13. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A34 DomesticNonfinancialStatistics • February 1989
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1988
Type of issue or issuer,
or use
1986
1987
Apr.
1 All issues, new and refunding
1
May
July
Aug.
Sept.
Oct/
214,189
147,011
102,407
5,847
7,846
13,912
9,746
6,966
9,669
10,455
7,815
Type of issue
2 General obligation
3 Revenue
52,622
161,567
46,346
100,664
30,589
71,818
1,707
4,140
3,085
4,761
4,237
9,675
1,959
7,788
2,472
4,494
2,370
7,299
2,058
8,387
2,332
5,483
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
13,004
134,363
78,754
14,474
89,997
42,541
10,102
65,460
26,845
441
4,078
1,328
913
4,625
2,308
1,349
8,629
3,934
140
6,752
2,854
576
3,749
2,641
1,206
6,407
2,056
734
7,283
2,438
513
4,963
2,339
7 Issues for new capital, total
156,050
83,490
56,789
1,476
2,334
2,352
2,079
2,318
2,783
2,840
3,555
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
16,658
12,070
26,852
63,181
12,892
24,398
12,307
7,246
14,594
11,353
6,190
31,802
9,524
3,677
7,912
11,106
7,474
911
215
429
1,099
298
9%
1,316
452
580
694
248
1,900
1,320
858
635
2,060
434
3,628
1,699
1,446
225
1,222
128
3,666
694
265
613
1,242
460
2,043
1,351
732
694
2,358
280
512
559
1,238
2,478
393
1,785
715
212
1,013
1,730
264
1,430
8
9
10
11
12
13
1. Par amounts of long-term issues based oil date of sale.
2. Includes school districts beginning 1986.
1.46 NEW SECURITY ISSUES
18,020
1,661
SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.
U.S. Corporations
Millions of dollars
Type of issue or issuer,
or use
1988
1985
1986
1987
Mar.
1 All issues
1
Apr.
May
June
July
Aug.
Sept.
Oct.
r
239,015
423,726
392,156
25,902
21,227
23,413
30,043
18,037
19,305'
23,933'
20,817
2 Bonds 2
203,500
355,293
325,648
20,815
18,515
19,382
25,748
12,899'
15,970'
20,928'
18,190
Type of offering
3 Public, domestic
4 Private placement, domestic 3
5. Sold abroad
119,559
46,200
37,781
231,936
80,760
42,596
209,279
92,070
24,299
19,827
n.a.
988
16,202
n.a.
2,313
17,4%
n.a.
1,886
22,753
n.a.
2,995
10,850
n.a.
1,994
14,595
n.a.
1,339
18,000
16,500
2,700
1,400
63,973
17,066
6,020
13,649
10,832
91,958
91,548
40,124
9,971
31,426
16,659
165,564
61,666
49,327
11,974
23,004
7,340
172,343
3,482
1,007
1,017
2,259
115
12,935
4,513
771
890
1,170
411
10,760
4,206
1,446
184
1,929
69
11,546
5,305
2,281
580
1,707
925
14,949
2,204
1,531
100
540
577
7,948'
3,476
2,227
0
298
29
9,939'
3,749'
1,035
150
856
1,064
14,073'
3,479
765
705
1,324
0
11,917
12 Stocks 3
35,515
68,433
66,508
5,087
2,712
4,031
4,295
5,138
3,335
3,005'
2,627
Type
13 Preferred
14 Common
15 Private placement
6,505
29,010
11,514
50,316
6,603
10,123
43,228
13,157
625
4,462
n.a.
241
2,471
n.a.
285
3,746
n.a.
501
3,794
n.a.
407
4,731
n.a.
498
2,837
n.a.
385'
2,620'
n.a.
865
1,762
n.a.
5,700
9,149
1,544
1,966
978
16,178
15,027
10,617
2,427
4,020
1,825
34,517
13,880
12,888
2,439
4,322
1,458
31,521
256
99
32
93
63
4,544
318
276
150
238
109
1,621
1,080
157
15
59
78
2,642
1,676
522
51
207
13
1,826
2%
2,073
0
20
20
2,729
538
347
72
135
3
2,240
244
525'
5
215
23
1,993'
288
222
25
282
0
1,810
6
7
8
9
10
11
16
17
18
19
20
21
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1988
1986
Item
1987
Mar.
May
Apr.
June
July
Aug.
Sept/
Oct.
INVESTMENT COMPANIES 1
1 Sales of own shares2
411,751
381,260
24,589
23,162
19,579
22,503
20,728
20,595
19,872
20,497
2 Redemptions of own shares3
3 Net sales
239,394
172,357
314,252
67,008
23,968
620
25,000
-1,828
21,412
-1,833
23,168
-665
20,561
167
22,836
-2,242
21,330
-1,458
19,361
1,136
4 Assets4
424,156
453,842
473,206
473,321
468,735
481,120
477,076
465,822
474,662
481,965
5 Cash position5
6 Other
30,716
393,440
38,006
415,836
43,561
426,645
45,307
428,014
45,003
423,732
43,229
437,891
44,015
433,061
45,229
420,595
46,706
427,956
46,122
435,843
5. Also includes all U.S. government securities and other short-term debt
securities.
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.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly d a t a are at seasonally a d j u s t e d annual rates.
1986
1985
Account
1986
1988
1987
1987
Q4
Q1
Q2
Q3
Q4
Ql
Q2
Q3r
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
282.3
224.2
96.4
127.8
83.2
44.5
298.8
236.3
106.6
129.8
88.2
41.5
310.4
276.7
133.8
142.9
95.5
47.4
293.9
252.1
114.3
137.9
89.8
48.1
298.3
261.8
126.3
135.5
91.7
43.8
305.2
273.7
132.6
141.1
94.0
47.0
322.0
289.4
140.0
149.5
97.0
52.4
316.1
281.9
136.2
145.7
99.3
46.4
316.2
286.2
136.9
149.4
101.3
48.1
326.5
305.9
143.2
162.7
103.1
59.6
330.0
313.9
144.8
169.1
105.7
63.4
7 Inventory valuation
8 Capital consumption adjustment
-1.7
59.8
8.3
54.1
-18.0
51.7
-8.1
49.8
-14.4
50.8
-20.0
51.5
-19.5
52.1
-18.2
52.4
-19.4
49.4
-27.4
48.0
-29.3
45.4
SOURCE. Survey of Current Business (Department of Commerce).
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; q u a r t e r l y d a t a are at seasonally a d j u s t e d annual rates.
1987
Industry
1986
1987
1988
19881
Ql
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6
Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and o t h e r
Q3
Q4
Ql
Q2
Q3
Q41
379.47
389.67
430.95
376.73
380.66
394.54
406.82
412.02
426.94
440.42
444.40
69.14
73.56
71.01
74.88
78.06
85.50
70.79
70.70
69.05
72.66
71.96
76.24
72.28
79.92
75.70
82.90
76.87
84.82
80.59
85.78
79.09
88.48
11.22
11.39
12.62
10.38
11.02
11.81
12.32
12.59
13.26
12.74
11.89
6.66
6.26
5.89
5.92
6.53
6.40
7.05
7.61
6.91
5.68
7.01
6.08
5.84
6.02
6.26
6.07
6.15
6.97
6.12
6.94
6.28
6.92
6.43
7.08
7.01
6.66
7.05
7.07
9.31
7.06
7.19
8.02
6.44
33.91
12.47
160.38
31.63
13.25
168.65
32.20
14.27
186.74
31.23
12.72
162.13
31.47
12.47
165.86
31.57
13.73
170.05
32.28
14.11
176.56
30.31
14.30
175.79
30.95
14.48
185.83
33.79
14.26
189.82
33.76
14.04
195.50
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
Q2
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36 DomesticNonfinancialStatistics • February 1989
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
1986
Account
1983
1984
1987
1985
Q2
Q3
Q4
Ql
Q2
Q3
Q4
ASSETS
Accounts receivable, gross
1 Consumer
2 Business
Real estate
4
Total
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
111.9
157.5
28.0
297.4
123.4
166.8
29.8
320.0
135.3
159.7
31.0
326.0
134.7
173.4
32.6
340.6
131.1
181.4
34.7
347.2
134.7
188.1
36.5
359.3
141.6
188.3
38.0
367.9
141.1
207.6
39.5
388.2
30.3
3.7
33.8
4.2
39.2
4.9
40.7
5.1
42.4
5.4
41.5
5.8
40.4
5.9
41.2
6.2
42.5
6.5
45.3
6.8
7 Accounts receivable, net
8 All other
183.2
34.4
213.5
35.7
253.3
45.3
274.2
49.5
278.2
60.0
293.3
58.6
300.9
59.0
311.9
57.7
318.9
64.5
336.1
58.2
9 Total assets
217.6
249.2
298.6
323.7
338.2
351.9
359.9
369.6
383.4
394.3
18.3
60.5
20.0
73.1
18.0
99.2
16.3
108.4
16.8
112.8
18.6
117.8
17.2
119.1
17.3
120.4
15.9
124.2
16.4
128.4
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.7
94.4
41.5
32.8
15.8
106.9
40.9
35.4
16.4
111.7
45.0
35.6
17.5
117.5
44.1
36.4
21.8
118.7
46.5
36.6
24.8
121.8
49.1
36.3
26.9
128.2
48.6
39.5
28.0
137.1
52.8
31.5
217.6
249.2
298.6
323.7
338.2
351.9
359.9
369.6
383.4
394.3
Less:
5 Reserves for unearned income
6 Reserves for losses
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Other short-term
n
Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
16 Total liabilities and capital
1. NOTE. Components may not add to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
Business Credit Outstanding and Net Change1
Millions of dollars, seasonally adjusted
1988
1986
Type
1987
May
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
June
July
Aug.
Sept.
Oct.
156,297
171,966
205,869
220,304
222,133
223,706
223,958
230,474
231,807
20,660
22,483
25,952
22,950
35,674
24,987
37,219
27,081
37,519
27,548
37,682
27,428
37,519
27,603
37,120
27,569
37,359
27,841
23,988
4,568
6,809
23,419
5,423
7,079
31,059
5,693
8,408
28,260
5,237
8,414
28,731
5,557
8,481
28,449
5,654
8,458
27,721
5,803
8,531
32,732
5,949
8,738
32,523
5,888
8,867
16,275
34,768
19,783
37,833
21,943
43,002
23,690
52,126
24,076
52,365
24,400
52,803
24,370
53,671
23,861
55,400
24,186
55,786
15,765
10,981
15,959
13,568
18,024
17,079
18,700
19,578
18,595
19,260
19,095
19,736
19,132
19,609
19,386
19,719
19,239
20,117
Net change (during period)
19,607
11
12
13
14
15
16
17
18
19
20
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 ami factored
commercial accounts receivable
All other business credit
15,669
3,040
1,390
1,829
1,573
252
6,515
1,333
5,067
-363
5,292
467
1,220
223
-400
-181
300
467
163
-120
-163
175
-399
-35
239
272
5,423
-867
1,069
-569
855
270
158
-101
257
899
-192
103
471
320
67
-282
97
-23
-728
149
73
5,011
146
207
-208
-60
129
3,896
2,685
3,508
3,065
-70
1,038
231
1,034
386
239
324
438
-30
867
-509
1,729
325
386
2,161
536
194
2,587
-477
792
-88
-14
-105
-318
500
476
37
-127
255
110
-148
398
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Real Estate
1.53
A37
Sept.
Oct.
Nov.
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1988
Item
1985
1986
1987
May
June
July
Aug.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)
118.1
86.2
75.2
26.6
2.48
9.82
137.0
100.5
75.2
27.8
2.26
8.94
145.3
108.0
76.4
28.1
2.15
8.59
152.0
110.2
73.8
27.5
2.16
8.90
152.9
111.9
75.2
28.4
2.24
8.80
154.2
114.9
76.7
28.5
2.35
8.68
148.3
109.8
75.4
27.6
2.14
8.90
153.8
114.0
75.8
28.4
1.98
8.77
155.3
115.6
76.1
28.4
2.28
9.05
11.58
12.28
10.25
10.07
9.31
10.17
8.95
10.48
9.26
10.35
9.17
10.47
9.06
10.55
9.26
10.39
9.10
n.a.
9.43
n.a.
12.24
11.61
Yield (percent per year)
7 F H L B B series 3
8 H U D series 4
104.1
77.4
77.1
26.9
2.53
11.12
9.91
9.30
10.16
9.42
10.84
9.93
10.65
9.88
10.66
9.91
10.74
10.09
10.58
9.93
n.a.
9.77
n.a.
9.85
102,493
19,464
83,032'
102,6%
19,467
83,228
SECONDARY MARKETS
Yield (percent per year)
9 F H A mortgages (HUD series) 5
10 GNMA securities
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHA/V A-insured
13
Conventional
94,574
34,244
60,331
98,048
29,683
68,365
95,030
21,660
73,370
101,747
19,805
81,941
102,368
19,765
82,603
102,540
19,677
82,864
102,540
19,586
82,954
102,453
19,526
82,927
Mortgage transactions
14 Purchases
21,510
30,826
20,531
2,138
2,372
1,960
1,638
1,111
1,488
1,5%
20,155
3,402
32,987
3,386
25,415
4,886
2,142
5,777
2,179
5,365
1,108
4,277
1,041
3,135
1,439
3,257
1,740
3,165
1,289
2,740
Mortgage holdings (end of period)*
17 Total
18
FHA/VA
19
Conventional
12,399
841
11,559
13,517
746
12,771
12,802
686
12,116
15,228
633
14,595
15,576
627
14,949
15,133
619
14,514
15,142
611
14,531
15,442
606
14,836
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage transactions
20 Purchases
21 Sales
44,012
38,905
103,474
100,236
76,845
75,082
2,877
2,325
4,117
3,649
3,879
4,115
3,858
3,719
4,192
3,728
n.a.
3,594
n.a.
4,331
48,989
110,855
71,467
5,159
6,447
5,328
3,480
6,209
n.a.
n.a.
(during
period)
1
Mortgage
commitments
15 Contracted (during period)
16 Outstanding (end of period)
FEDERAL HOME LOAN MORTGAGE CORPORATION
(during
Mortgage
commitments9
22 Contracted (during period)
period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and " p o i n t s " paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying
the prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in F N M A ' 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. F H L M C ' s mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for F N M A exclude swap
activity.
A38 DomesticNonfinancialStatistics • February 1989
1.54 MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1987
Type of holder, and type of property
1985
1986
1988
1987
Q3
Q4
Q1
Q2
1 All holders
2,289,843
2,597,175
2,943,144
2,864,736
2,943,144
2,988,100
3,067,691
2
3
4
5
1,488,009
214,470
481,514
105,850
1,698,524
247,831
555,039
95,781
1,925,197
273,830
655,249
1,870,635
268,911
635,230
89,960
1,925,197
273,830
655,249
1,955,770
277,622
666,521
88,187
2,015,759
282,756
681,246
87,930
1,390,394
429,196
213,434
23,373
181,032
11,357
1,507,289
502,534
235,814
31.173
222.799
12,748
1,700,820
591,151
275,761
33,296
267,663
14,431
1,648,328
567,000
263,762
32,114
256,981
14,143
1,700,820
591,151
275,761
33,296
267,663
14,431
1,723,737
604,403
280,439
33,640
275,535
14,789
1,773,569
628,132
291,767
34,672
286,366
15,327
760,499
554,301
89,739
115,771
688
171,797
12,381
19,894
127,670
11,852
28,902
777,312
558,412
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
856,945
598,886
106,359
150,943
n.a.
212,375
13,226
22,524
166,722
9,903
40,349
838,737
583,432
104,609
149,938
n.a.
204,263
12,742
21,968
159,464
10,089
38,328
856,945
598,886
106,359
150,943
n.a.
212,375
13,226
22,524
166,722
9,903
40,349
863,110
603,532
107,687
151,136
n.a.
214,815
13,653
22,723
168,774
9,665
41,409
882,049
622,976
109,353
148,969
n.a.
220,870
14,172
23,021
174,086
9,591
42,518
166,928
1,473
539
934
733
183
113
159
278
203.800
889
47
842
48,421
21,625
7,608
8,446
10,742
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
191,520
458
25
433
42,978
18,111
7,903
6,592
10,372
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
196,909
434
25
409
43,076
18,185
8,115
6,640
10,136
199,474
42
24
18
42,767
18,248
8,213
6,288
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
5,330
2,452
2,878
94,884
87,901
6,983
34,930
2,055
32,875
12,940
11,570
1,370
5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
5,660
2,608
3,052
99,787
92,828
6,959
33,566
1,975
31,591
14,386
12,749
1,637
5,673
2,564
3,109
102,368
95,404
6,964
33,048
1,945
31,103
15,576
13,631
1,945
1- to 4-family
Multifamily
Commercial
Farm
6 Selected financial institutions
7
Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
17
18
19
20
21
22
Savings institutions 3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies 4
23 Federal and related agencies
24
Government National Mortgage Association..
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration 5
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
32
33
34
35
36
37
38
39
40
41
42
43
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation . .
1- to 4-family
Multifamily
6
11,881
2,141
10,018
44 Mortgage pools or trusts
45
Government National Mortgage Association..
46
1- to 4-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation . .
49
1- to 4-family
50
Multifamily
51
Federal National Mortgage Association
52
1- to 4-family
53
Multifamily
54
Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm
439,058
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
565,428
262,697
256,920
5,777
171,372
166,667
4,705
97.174
95,791
1,383
348
142
718,297
317.555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
692,944
308,339
300,815
7,524
208,872
202,308
6,564
130,540
128,770
1,770
333
144
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
736,344
322,976
315,095
7,881
214,724
208,138
6,586
145,242
142,330
2,912
172
65
754,045
322,616
314,728
7,888
216,155
209,702
6,453
157,438
153,253
4,185
106
23
132
74
63
61
124
65
63
61
58
49
41
42
7
293,463
162,419
55,849
48,692
26,503
320,658
177,374
66,940
53,315
23,029
331,306
171,325
75,368
63,255
21,358
331,944
173,360
74,795
62,131
21,658
331,306
171,325
75,368
63,255
21,358
331,110
169,509
76,021
64,378
21,202
340,603
177,074
76,935
65,496
21,098
59 Individuals and others
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to F m H A mortgage holdings in 1986:4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
Consumer Installment Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1988
Holder, and type of credit
1986
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Amounts outstanding (end of period)
571,833
613,022
624,294
629,485
633,336
636,318
644,372
647,993
653,317
653,319
656,880
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
262,139
133,698
76,191
39,660
56,881
3,264
281,564
140,072
81,065
42,782
63,949
3,590
287,344
142,946
81,897
43,080
65,396
3,631
290,831
144,053
82,595
43,271
65,078
3,657
293,166
144,516
83,204
43,295
65,387
3,769
295,546
144,454
83,881
43,162
65,509
3,765
300,275
144,748
84,912
43,450
67,274
3,713
303,189
143,812
85,468
43,634
68,182
3,707
307,119
143,962
85,881
43,712
68,909
3,735
308,960
142,723
85,553
43,956
68,462
3,665
312,867
142,480
85,781
44,250
67,845
3,658
By major type of credit
8 Automobile
9
Commercial banks
10 Credit unions
11 Finance companies
12 Savings institutions
246,109
100,907
38,413
92,350
14,439
267,180
108,438
43,474
98,026
17,242
273,133
111,021
44,251
100,123
17,738
276,762
113,593
44,795
100,669
17,705
278,567
114,868
45,293
100,564
17,841
279,418
115,951
45,831
99,708
17,928
282,254
117,322
46,565
99,900
18,465
283,359
118,650
47,043
98,8%
18,770
285,560
120,380
47,444
98,711
19,026
284,782
121,450
47,436
%,939
18,958
286,101
123,124
47,735
%,400
18,842
13 Revolving
14 Commercial banks
15 Retailers
16 Gasoline companies
17 Savings institutions
18 Credit unions
136,381
86,757
34,320
3,264
8,366
3,674
159,307
98,808
36,959
3,590
13,279
6,671
163,462
101,537
37,231
3,631
13,945
7,117
165,643
103,152
37,408
3,657
14,059
7,368
167,356
104,250
37,414
3,769
14,309
7,614
169,154
105,742
37,259
3,765
14,518
7,870
172,809
108,309
37,526
3,713
15,098
8,162
174,927
109,645
37,671
3,707
15,492
8,413
177,568
111,623
37,708
3,735
15,850
8,652
178,675
112,341
37,914
3,665
15,938
8,816
180,841
113,994
38,169
3,658
15,984
9,038
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings institutions
26,883
8,926
8,822
9,135
25,957
9,101
7,771
9,085
25,857
9,035
7,679
9,143
25,732
8,993
7,640
9,099
25,764
9,047
7,575
9,142
25,703
8,966
7,578
9,159
25,852
8,933
7,513
9,406
25,882
8,913
7,436
9,533
25,915
8,893
7,387
9,634
25,746
8,833
7,341
9,572
25,645
8,917
7,243
9,485
23 Other
24
Commercial banks
25
Finance companies
26
Credit unions
27
Retailers
28
Savings institutions
162,460
65,549
32,526
34,104
5,340
24,941
160,578
65,217
34,275
30,920
5,823
24,343
161,842
65,750
35,144
30,529
5,849
24,570
161,348
65,094
35,744
30,432
5,863
24,216
161,649
65,001
36,376
30,297
5,880
24,095
162,043
64,887
37,168
30,180
5,903
23,904
163,456
65,710
37,335
30,184
5,923
24,305
163,825
65,981
37,480
30,012
5,964
24,388
164,274
66,222
37,863
29,785
6,004
24,399
164,116
66,335
38,443
29,302
6,041
23,995
164,294
66,833
38,837
29,008
6,081
23,534
1 Total
2
3
4
5
6
7
Net change (during period)
54,078
41,189
5,036
5,191
3,851
2,982
8,054
3,621
5,324
2
3,561
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
20,495
22,670
4,268
466
7,223
-1,044
19,425
6,374
4,874
3,122
7,068
326
2,591
1,251
235
154
763
41
3,487
1,107
698
191
-318
26
2,335
463
609
24
309
112
2,380
-62
677
-133
122
-4
4,729
294
1,031
288
1,765
-52
2,914
-936
556
184
908
-6
3,930
150
413
78
727
28
1,841
-1,239
-328
244
-447
-70
3,907
-243
228
294
-617
-7
By major type of credit
36 Automobile
37 Commercial banks
38
Credit unions
39
Finance companies
40
Savings institutions
36,473
8,178
2,388
22,823
3,084
21,071
7,531
5,061
5,676
2,803
3,250
1,723
292
976
259
3,629
2,572
544
546
-33
1,805
1,275
498
-105
136
851
1,083
538
-856
87
2,836
1,371
734
192
537
1,105
1,328
478
-1,004
305
2,201
1,730
401
-185
256
-778
1,070
-8
-1,772
-68
1,319
1,674
299
-539
-116
41 Revolving
42
Commercial banks
43
Retailers
44
Gasoline companies
45
Savings institutions
46
Credit unions
14,368
11,150
47
-1,044
2,078
2,137
22,926
12,051
2,639
326
4,913
2,997
1,397
658
144
41
344
209
2,181
1,615
177
26
114
251
1,713
1,098
6
112
250
246
1,798
1,492
-155
-4
209
256
3,655
2,567
267
-52
580
292
2,118
1,336
145
-6
394
251
2,641
1,978
37
28
358
239
1,107
718
206
-70
88
164
2,166
1,653
255
-7
46
222
47 Mobile home
48
Commercial banks
49
Finance companies
50
Savings institutions
49
-627
-472
1,148
-926
175
-1,051
-50
-69
-29
-74
34
-125
-42
-39
-44
32
54
-65
43
-61
-81
3
17
149
-33
-65
247
30
-20
-77
127
33
-20
-49
101
-169
-60
-46
-62
-101
84
-98
-87
51 Other
Commercial banks
52
53
Finance companies
54
Credit unions
55
Retailers
56
Savings institutions
3,188
1,794
319
-257
419
913
-1,882
-332
1,749
-3,184
483
-598
458
238
349
-266
10
126
-494
-656
600
-97
14
-354
301
-93
632
-135
17
-121
394
-114
792
-117
23
-191
1,413
823
167
4
20
401
369
271
145
-172
41
83
449
241
383
-227
40
11
-158
113
580
-483
37
-404
178
498
394
-294
40
-461
29 Total
30
31
32
33
34
35
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. More detail for finance companies is available in the G. 20 statistical release,
3. Excludes 30-day charge credit held by travel and entertainment companies,
A40 DomesticNonfinancialStatistics • February 1989
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1988
Item
1985
1986
1987
Apr.
May
June
July
Aug.
Sept.
Oct.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 2
48-month new c a r
24-month personal
120-month mobile home 3
Credit card
Auto finance companies
New car
Used car
12.91
15.94
14.96
18.69
11.33
14.82
13.99
18.26
10.45
14.22
13.38
17.92
n.a.
n.a.
n.a.
n.a.
10.55
14.40
13.49
17.78
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.93
14.81
13.62
17.79
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.98
17.59
9.44
15.95
10.73
14.60
12.29
14.82
12.29
14.81
12.32
14.83
12.44
14.99
12.64
15.16
12.93
15.46
13.10
15.67
51.5
41.4
50.0
42.6
53.5
45.2
56.2
46.9
56.2
46.9
56.3
46.9
56.4
46.8
56.5
46.8
56.3
46.5
56.3
46.3
91
94
91
97
93
98
94
98
94
99
94
99
94
99
94
98
94
98
94
99
9,915
6,089
10,665
6,555
11,203
7,420
11,553
7,662
11,624
7,778
11,626
7,899
11,663
7,947
11,593
7,918
11,530
7,903
11,845
7,944
OTHER TERMS 4
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
Flow of Funds
1.57
A41
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
1987
Transaction category, sector
1983
1984
1985
1986
1987
Q1
Q2
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
546.8
750.8
846.3
830.6
680.6
552.0
751.7
652.1
766.8
731.8
704.0
760.4
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
186.6
186.7
-.1
198.8
199.0
-.2
223.6
223.7
-.1
215.0
214.7
.4
143.8
142.3
1.5
161.6
157.7
3.9
145.2
147.1
-1.9
101.8
102.7
-.9
166.7
161.8
5.0
226.3
226.8
-.5
87.6
79.8
7.7
195.5
174.6
20.9
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
8
Corporate bonds
9
Mortgages
10
Home mortgages
Multifamily residential
11
Commercial
12
Farm
13
360.2
257.6
53.7
16.0
187.9
120.4
14.1
51.0
2.4
552.0
319.3
50.4
46.1
222.8
136.7
25.2
62.2
-1.2
622.7
452.3
136.4
73.8
242.2
156.8
29.8
62.2
-6.6
615.6
460.7
30.8
121.3
308.6
210.9
33.5
73.6
-9.5
536.8
446.1
34.5
99.9
311.6
221.7
24.3
72.0
-6.4
390.3
473.3
38.7
128.9
305.7
224.2
27.4
66.5
-12.4
606.4
466.7
33.1
88.5
345.1
243.5
30.9
77.2
-6.6
550.3
428.1
32.7
100.7
294.7
212.1
23.1
64.1
-4.7
600.1
416.1
33.5
81.6
301.1
206.9
15.9
80.2
-1.9
505.6
363.3
24.8
101.3
237.1
177.9
21.4
43.2
-5.4
616.5
452.2
32.6
118.4
301.2
228.0
14.0
60.8
-1.6
564.9
457.1
44.4
90.8
322.0
210.1
33.5
72.7
5.7
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
102.6
49.0
23.2
-.8
31.3
232.7
81.6
67.1
21.7
62.2
170.3
82.5
38.6
14.6
34.6
154.9
54.4
69.3
-9.3
40.5
90.7
40.7
8.8
2.3
38.9
-83.0
-.3
-107.8
-.5
25.5
139.7
52.4
36.6
4.7
46.1
122.2
61.4
21.0
1.0
38.7
184.0
49.4
85.3
3.9
45.5
142.3
34.8
40.4
-3.8
70.9
164.2
59.5
74.2
4.0
26.6
107.8
43.3
2.6
11.1
50.7
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
360.2
34.0
186.1
140.1
3.9
81.9
54.4
552.0
27.4
231.5
293.1
-.4
123.2
170.3
622.7
91.8
283.6
247.3
-14.5
129.3
132.4
615.6
44.3
286.1
285.1
-16.3
127.6
173.8
536.8
34.4
261.5
240.8
-11.2
115.8
136.3
390.3
37.0
197.3
156.0
-23.5
108.4
71.2
606.4
31.4
302.7
272.4
-12.7
125.7
159.4
550.3
34.8
281.2
234.2
-9.4
105.4
138.3
600.1
34.6
264.9
300.7
.8
123.8
176.1
505.6
22.3
220.0
263.3
-12.5
91.0
184.9
616.5
31.1
288.0
297.3
-3.6
87.1
213.9
564.9
41.3
250.9
272.7
1.3
120.3
151.1
26 Foreign net borrowing in United States
27
Bonds
28
Bank loans n.e.c
29
Open market paper
30
U.S. government loans
17.3
3.1
3.6
6.5
4.1
8.4
3.8
-6.6
6.2
5.0
1.2
3.8
-2.8
6.2
-5.9
9.6
3.0
-1.0
11.5
-3.9
4.3
6.8
-3.6
2.1
-1.0
-8.7
3.0
-1.2
-4.2
-6.4
-.1
-4.1
-3.5
-6.4
13.9
12.3
6.7
-3.7
21.6
-12.3
13.9
21.6
-6.1
-2.5
.8
-1.0
16.8
.7
1.5
-19.9
4.9
-2.9
-3.5
6.4
4.9
9.7
7.4
.3
10.7
-8.8
564.1
759.2
847.5
840.2
685.0
543.3
751.6
664.3
780.7
730.9
709.0
770.1
31 Total domestic plus foreign
Financial sectors
32 Total net borrowing by financial sectors
By instrument
33 U.S. government related
34
Sponsored credit agency securities
Mortgage pool securities
35
36
37 Private financial sectors
38
Corporate bonds
Mortgages
39
Bank loans n.e.c
40
41
Open market paper
Loans from Federal Home Loan Banks
42
By sector
43
44
45
46
47
48
49
50
51
52
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers
99.2
148.7
198.3
297.2
303.1
340.0
316.7
306.4
249.2
218.9
250.1
249.1
67.8
1.4
66.4
74.9
30.4
44.4
193.5
-4.4
200.7
-2.9
146.5
103.2
.4
-9.5
41.5
11.0
196.8
21.5
175.4
-.1
119.9
45.6
.1
.6
54.0
19.6
137.4
56.8
80.5
84.7
9.4
75.3
140.2
42.8
97.4
120.8
77.7
.2
6.3
14.3
22.2
81.7
41.8
.4
-10.7
5.4
44.9
81.6
74.7
.2
-26.8
28.0
5.4
165.4
67.9
108.9
65.9
-.1
21.3
-7.0
185.8
30.2
156.4
-.7
117.2
67.1
.3
-3.3
28.8
24.4
167.5
71.6
95.9
73.8
33.0
.4
.7
24.1
15.7
178.1
15.2
163.3
-.4
119.1
70.9
.1
4.0
24.2
19.8
185.5
32.0
153.5
31.4
17.3
101.5
20.6
79.9
1.1
96.7
47.9
.1
2.6
32.0
14.2
8.7
78.7
10.1
-4.9
21.3
26.6
99.2
148.7
198.3
297.2
303.1
340.0
316.7
306.4
249.2
218.9
250.1
249.1
1.4
66.4
31.4
5.0
12.1
-2.1
13.0
-.2
3.6
30.4
44.4
73.8
7.3
15.6
22.7
18.2
.8
9.3
21.7
79.9
96.7
-4.9
14.5
22.3
52.7
.5
11.5
14.9
163.3
119.1
-3.6
4.6
29.8
48.4
1.0
39.0
29.5
156.4
117.2
7.1
2.9
36.0
30.6
1.5
39.1
-7.2
200.7
146.5
6.4
25.6
28.0
18.1
1.7
66.8
21.4
175.4
119.9
20.0
-2.7
22.2
39.9
-.5
41.0
32.0
153.5
120.8
-13.1
11.3
41.9
36.3
1.7
42.7
71.6
95.9
81.7
15.0
-22.6
51.9
28.2
3.2
6.0
56.8
80.5
81.6
-22.4
-5.0
9.1
54.5
2.4
43.1
9.4
75.3
165.4
6.2
7.6
18.2
100.4
1.8
31.2
42.8
97.4
108.9
-12.9
5.2
52.9
40.6
1.9
21.3
*
*
*
A42 DomesticNonfinancialStatistics • February 1989
1.57—Continued
1987
Transaction category, sector
1983
1984
1985
1986
1988
1987
Ql
Q2
Q3
Q4
Ql
Q2
Q3
All sectors
1,045.7 1,137.4
53 Total net borrowing
663.4
907.9
54
55
56
57
58
59
60
61
254.4
53.7
36.4
187.8
49.0
26.7
26.9
28.4
273.8
50.4
83.0
223.1
81.6
61.1
52.0
82.9
324.2
136.4
125.4
242.2
82.5
38.3
52.8
44.0
-7.1
6.3
14.4
553.9
193.7
744.5
192.5
831.9
209.3
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
62 MEMO: U.S. government, cash balance
63
64
Totals net of changes in U.S. government cash balances
Net borrowing by domestic nonfinancial
Net borrowing by U.S. government
393.5
30.8
195.2
308.6
54.4
72.3
26.4
56.1
*
830.6
215.0
970.7
1,029.9
949.8
959.1 1,019.2
330.4
34.5
173.8
311.9
40.7
1.9
33.2
61.6
358.0
38.7
235.2
306.0
-.3
-118.5
36.8
27.3
342.2
33.1
130.0
345.2
52.4
33.8
52.3
79.4
287.3
32.7
185.1
294.9
61.4
23.6
36.9
48.7
334.2
33.5
145.0
301.4
49.4
68.5
6.7
91.2
363.6
24.8
192.8
237.4
34.8
14.2
25.7
56.4
172.3
32.6
183.5
301.2
59.5
79.4
89.1
41.7
335.7
44.4
164.1
322.0
43.3
-2.0
43.1
68.6
-7.9
-34.9
77.7
-19.6
-54.7
60.9
3.3
6.4
688.5
151.7
586.9
196.6
674.0
67.6
671.7
121.4
821.5
221.4
670.9
165.4
700.8
84.3
754.0
189.1
988.0
883.3 1,068.3
External corporate equity funds raised in United States
65 Total net share issues
58.1
-36.0
20.1
93.9
13.3
170.1
13.9
-47.1
-83.6
-73.7
-141.0
-70.3
66
67
68
69
70
27.2
30.8
23.5
3.6
3.7
29.3
-65.3
-74.5
8.2
.9
84.4
-64.3
-81.5
13.5
3.7
161.8
-68.0
-80.7
11.5
1.3
72.3
-59.0
-76.5
19.9
-2.4
205.4
-35.3
-57.0
19.1
2.7
79.1
-65.2
-83.0
16.5
1.2
13.8
-60.9
-78.0
18.4
-1.3
-9.1
-74.6
-88.0
25.5
-12.0
5.0
-78.7
-95.0
17.0
-.7
-8.1
-132.9
-140.0
13.8
-6.7
6.0
-76.3
-92.0
13.6
2.1
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
Flow of Funds
1.58
A43
D I R E C T A N D I N D I R E C T S O U R C E S O F F U N D S TO C R E D I T M A R K E T S
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1987
Transaction category, or sector
1983
1984
1985
1986
1988
1987
Ql
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
Q2
Q3
Q4
Ql
Q2
Q3
546.8
750.8
846.3
830.6
680.6
552.0
751.7
652.1
766.8
731.8
704.0
760.4
117.8
29.0
76.1
-7.0
19.7
157.6
38.9
56.5
15.7
46.6
193.1
37.9
94.6
14.2
46.3
304.2
69.4
160.3
19.8
54.6
256.3
68.2
153.2
24.4
10.5
270.9
59.0
194.8
11.0
6.1
279.3
55.3
169.4
19.6
35.1
211.1
35.1
146.0
22.2
7.8
264.0
123.3
102.7
44.9
-6.8
281.7
148.6
100.7
5.4
27.0
162.5
38.2
89.7
10.1
24.5
196.6
17.3
97.5
26.6
55.3
9.7
69.8
14.7
23.7
17.1
74.3
8.4
57.9
16.8
95.5
18.4
62.3
9.7
177.3
19.4
97.8
-11.5
180.6
24.7
62.5
-8.5
204.9
9.4
65.1
-12.3
177.0
29.8
84.8
-24.1
187.0
29.0
19.1
-.9
153.6
30.4
81.0
-8.9
123.3
-5.5
172.9
-10.1
86.3
4.1
82.2
1.5
119.9
17.1
58.2
67.8
17.3
74.9
8.4
101.5
1.2
178.1
9.6
185.8
4.3
193.5
-8.7
196.8
-.1
185.5
12.3
167.5
13.9
137.4
-1.0
84.7
4.9
140.2
9.7
Private domestic funds advanced
n Total net advances
14 U.S. government securities
15
State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
514.2
225.4
53.7
14.5
58.3
155.1
-7.0
676.4
234.9
50.4
35.1
105.3
266.3
15.7
756.0
286.2
136.4
40.8
91.8
214.9
14.2
714.1
324.1
30.8
84.1
84.1
210.8
19.8
614.5
262.2
34.5
86.5
92.8
162.9
24.4
465.9
299.0
38.7
100.4
56.7
-18.0
11.0
669.1
286.9
33.1
58.8
105.0
204.8
19.6
638.7
252.2
32.7
83.7
89.3
203.0
22.2
684.2
210.9
33.5
102.9
120.0
261.7
44.9
586.5
215.0
24.8
115.7
98.7
137.7
5.4
631.2
134.1
32.6
88.1
152.4
234.1
10.1
713.7
318.4
44.4
68.6
146.1
162.8
26.6
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
Commercial banking
21
Savings institutions
77
Insurance and pension funds
23
Other finance
24
394.7
144.3
135.6
100.1
14.7
581.0
168.9
150.2
121.8
140.1
569.8
186.3
83.0
148.9
151.6
746.3
194.8
105.5
181.9
264.3
564.9
136.3
140.4
210.8
77.3
521.5
-56.2
89.9
266.3
221.6
549.7
198.0
132.0
178.0
41.7
639.7
150.9
188.7
246.2
54.0
548.5
252.6
151.0
152.8
-7.9
674.9
56.0
87.9
282.4
248.6
615.7
213.3
120.7
235.3
46.5
606.4
132.3
166.4
217.6
90.1
75 Sources of funds
26
Private domestic deposits and RPs
Credit market borrowing
77
Other sources
28
29
Foreign funds
Treasury balances
30
31
Insurance and pension reserves
Other, net
32
394.7
210.4
31.4
152.9
14.6
-5.3
115.0
28.7
581.0
321.9
73.8
185.3
8.8
4.0
124.0
48.5
569.8
210.6
96.1
262.5
19.7
10.3
131.9
100.7
746.5
264.7
119.1
362.7
12.9
1.7
144.3
203.8
564.9
146.2
117.2
301.4
43.7
-5.8
175.0
88.6
521.5
-17.1
146.5
392.1
14.9
-36.9
195.1
219.0
549.7
141.1
119.9
288.6
35.1
43.6
191.1
18.9
639.7
193.9
120.8
325.0
99.5
6.1
194.8
24.6
548.5
266.8
81.7
200.0
25.2
-36.1
118.9
91.9
674.9
287.7
81.6
305.6
-80.1
53.3
247.6
84.8
615.7
127.3
165.4
323.0
106.6
-17.5
207.8
26.1
606.4
206.1
108.9
291.3
-39.2
-1.9
173.7
158.6
Private domestic nonfinancial investors
33 Direct lending in credit markets
U.S. government securities
34
State and local obligations
35
36
Corporate and foreign bonds
Open market paper
37
Other
38
150.9
91.0
38.8
-8.3
12.4
17.0
169.2
115.4
26.5
-.8
4.0
24.2
282.9
175.7
39.6
2.4
45.6
19.6
86.7
50.1
-13.6
32.6
-3.0
20.7
166.8
103.2
46.1
5.1
7.9
4.6
90.9
52.1
27.8
9.3
-1.9
3.6
239.3
170.1
58.1
-58.6
64.2
5.6
119.8
70.9
42.4
28.3
-23.3
1.6
217.3
119.6
56.0
41.5
-7.5
7.7
-6.9
117.6
1.5
-40.6
-65.6
-19.7
180.9
23.8
29.7
52.7
77.7
-3.0
216.2
160.0
39.1
-25.9
40.5
2.5
39 Deposits and currency
Currency
40
Checkable deposits
41
Small time and savings accounts
47
43
Money market fund shares
44
Large time deposits
Security RPs
45
46
Deposits in foreign countries
227.8
14.3
28.8
215.4
-39.0
-8.3
13.5
3.1
325.4
8.6
28.0
150.7
49.0
84.3
10.0
-5.1
220.9
12.4
40.9
138.4
8.9
7.7
14.6
-2.1
285.0
14.4
93.2
120.6
41.5
-11.5
20.8
5.9
162.4
19.0
-2.4
75.9
28.2
27.6
16.9
-2.8
-46.6
9.4
-98.7
31.3
14.4
13.7
22.1
-38.9
149.2
12.5
40.3
69.3
2.4
4.8
24.3
-4.4
229.3
17.3
34.5
79.9
32.7
.2
46.6
18.1
317.6
36.8
14.4
123.1
63.3
91.6
-25.6
13.9
282.7
8.2
4.2
195.1
59.1
12.0
17.3
-13.3
134.9
11.9
21.5
125.5
-34.8
-7.6
22.7
-4.3
256.7
17.5
-.6
102.1
13.0
92.0
-.4
33.1
47 Total of credit market instruments, deposits, and
currency
378.7
494.6
503.7
371.8
329.2
44.3
388.5
349.1
534.9
275.8
315.8
472.9
20.9
76.8
38.2
20.8
85.9
66.7
22.8
75.4
82.0
36.2
104.5
110.7
37.4
91.9
106.2
49.9
112.0
80.0
37.2
82.2
119.9
31.8
100.2
118.7
33.8
80.2
106.2
38.5
115.1
92.8
22.9
97.6
188.9
25.5
85.0
19.0
MEMO: Corporate equities not included above
51 Total net issues
58.1
-36.0
20.1
93.9
13.3
170.1
13.9
-47.1
-83.6
-73.7
-141.0
-70.3
57 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
27.2
30.8
50.4
7.7
29.3
-65.3
15.8
-51.8
84.4
-64.3
45.6
-25.5
161.8
-68.0
48.5
45.4
72.3
-59.0
22.6
-9.3
205.4
-35.3
29.2
140.9
79.1
-65.2
72.6
-58.7
13.8
-60.9
5.2
-52.4
-9.1
-74.6
-16.5
-67.1
5.0
-78.7
-33.0
-40.7
-8.1
-132.9
-10.1
-131.0
6.0
-76.3
-9.4
-61.0
2
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11
Sponsored credit agencies and mortgage pools
12 Foreign
7
8
9
10
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking in foreign banks.
30. Demand deposits and note balances at commercial banks.
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44 DomesticNonfinancialStatistics • February 1989
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1987
Ql
Q2
1988
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
5,204.3
5,953.7
6,797.0
7,618.1
8,301.3 7,725.8
7,917.4
8,074.1
8,301.3
8,444.3
8,629.8
8,817.3
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
1,177.9
1,174.4
3.6
1,376.8
1,373.4
3.4
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,959.2
1,954.1
5.2
1,843.9
1,839.3
4.6
1,875.3
1,871.2
4.2
1,897.0
1,893.1
3.9
1,959.2
1,954.1
5.2
2,001.8
1,996.7
5.0
2,020.4
2,013.5
7.0
2,063.8
2,051.6
12.2
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
8
Corporate bonds
9
Mortgages
Home mortgages
10
11
Multifamily residential
12
Commercial
Farm
13
4,026.4
2,717.8
471.7
423.0
1,823.1
1,200.2
158.8
350.4
113.7
4,577.0
3,040.0
522.1
469.2
2,048.8
1,336.2
183.6
416.5
112.4
5,196.6
3,488.4
658.4
542.9
2,287.1
1,490.2
213.0
478.1
105.9
5,802.7
3,946.4
689.2
664.2
2,593.0
1,699.6
246.3
551.4
95.8
6,342.1 5,881.9
4,404.5 4,065.6
723.7
696.9
764.1
696.4
2,916.6 2,672.2
1,908.7 1,730.4
269.9
254.2
649.2
594.8
88.9
92.8
6,042.1
4,189.4
705.2
718.5
2,765.7
1,800.7
259.9
613.8
91.3
6,177.1
4,296.9
715.5
743.7
2,837.7
1,853.8
264.9
629.0
90.0
6,342.1
4,404.5
723.7
764.1
2,916.6
1,908.7
269.9
649.2
88.9
6,442.6
4,479.3
728.0
789.4
2,961.8
1,939.7
273.8
660.2
88.2
6,609.4
4,596.7
735.8
819.1
3,041.9
2,000.4
278.1
675.5
87.9
6,753.5
4,715.0
749.4
841.7
3,123.8
2,056.6
285.6
692.5
89.2
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,308.6
437.7
490.2
36.8
344.0
1,536.9
519.3
552.9
58.5
406.2
1,708.2
601.8
592.6
72.2
441.6
1,856.3
656.2
658.6
62.9
478.6
1,937.6 1,816.4
696.9
643.3
656.7
627.7
73.8
63.6
510.1
481.7
1,852.7
658.7
636.3
67.9
489.9
1,880.2
680.9
637.5
68.1
493.7
1,937.6
696.9
656.7
73.8
510.1
1,963.3
692.2
669.4
73.5
528.1
2,012.6
709.6
689.9
77.8
535.3
2,038.5
727.8
688.7
80.3
541.6
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
4,026.4
357.7
1,811.6
1,857.1
188.4
645.8
1,022.9
4,577.0
385.1
2,038.2
2,153.7
187.9
769.0
1,196.8
5,196.6
476.9
2,314.5
2,405.2
173.4
898.3
1,333.5
5,802.7
520.2
2,594.2
2,688.3
156.6
1,025.9
1,505.8
6,342.1 5,881.9
554.7
527.5
2,836.6 2,605.4
2,950.9 2,749.0
144.9
149.9
1,141.7 1,053.8
1,664.3 1,545.3
6,042.1
535.3
2,691.2
2,815.7
150.2
1,084.3
1,581.2
6,177.1
546.2
2,762.8
2,868.1
148.5
1,106.7
1,612.9
6,342.1
554.7
2,836.6
2,950.9
144.9
1,141.7
1,664.3
6,442.6
558.3
2,866.2
3,018.1
141.5
1,165.2
1,711.5
6,609.4
565.7
2,945.7
3,097.9
144.0
1,186.0
1,767.8
6,753.5
578.5
3,016.4
3,158.5
145.0
1,211.9
1,801.6
227.3
64.2
37.4
21.5
104.1
235.1
68.0
30.8
27.7
108.6
236.7
71.8
27.9
33.9
103.0
238.2
74.8
26.9
37.4
99.1
236.7
75.1
26.0
37.3
98.3
236.8
74.6
25.4
35.6
101.2
238.9
75.9
24.2
40.6
98.2
244.3
81.6
23.3
41.2
98.1
245.1
85.4
22.8
42.5
94.4
246.3
85.2
22.4
44.0
94.7
247.8
86.7
22.0
46.3
92.8
5,431.6
6,188.8
7,033.7
7,856.3
8,545.6 7,962.5
8,154.2
8,313.1
8,545.6
8,689.4
8,876.1
9,065.1
1,710.0
1,783.8
1,862.6
1,903.8
1,972.6
2,035.7
887.1
268.4
613.7
5.0
734.8
293.4
2.8
36.5
295.2
106.8
937.1
275.8
656.4
5.0
772.9
304.6
2.9
40.1
311.1
114.3
981.6
283.7
692.9
5.0
802.1
324.2
2.9
42.2
312.7
120.1
1,026.5
303.2
718.3
5.0
836.1
335.5
3.0
40.8
323.8
133.1
1,054.8
313.5
736.3
5.0
849.0
353.2
3.1
31.7
331.5
129.5
1,076.9
317.9
754.0
5.0
895.7
370.0
3.1
34.3
353.4
134.8
1,113.7
328.5
780.2
5.0
922.0
386.8
3.1
33.9
356.8
141.6
1,862.6 1,621.8
1,710.0
1,783.8
1,862.6
1,903.8
1,972.6
2,035.7
280.7
656.4
772.9
80.7
108.7
157.0
328.8
6.8
90.9
288.7
692.9
802.1
78.6
109.5
165.4
339.9
7.3
101.6
308.2
718.3
836.1
82.7
104.2
181.1
357.0
8.1
103.1
318.5
736.3
849.0
76.4
104.4
177.4
368.3
8.7
113.9
322.9
754.0
895.7
77.2
106.5
187.3
393.8
9.1
121.7
333.5
780.2
922.0
75.4
105.8
198.0
406.3
9.6
127.0
26 Foreign credit market debt held in
United States
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
27
28
29
30
31 Total domestic plus foreign
244.3
81.6
23.3
41.2
98.1
Financial sectors
32 Total credit market debt owed by
financial sectors
33
34
35
36
37
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan B a n k s . . .
43 Total, by sector
44
45
46
47
48
49
50
51
52
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers
857.9
1,006.2
1,206.2
1,510.8
456.7
206.8
244.9
5.0
401.2
115.8
2.1
28.9
195.5
59.0
531.2
237.2
289.0
5.0
475.0
148.9
2.5
29.5
219.5
74.6
632.7
257.8
368.9
6.1
573.4
197.5
2.7
32.1
252.4
88.8
810.3
273.0
531.6
5.7
700.5
268.4
2.7
36.1
284.6
108.6
857.9
1,006.2
1,206.2
1,510.8
211.8
244.9
401.2
76.8
71.0
73.9
171.7
3.5
4.2
242.2
289.0
475.0
84.1
86.6
93.2
193.2
4.3
13.5
263.9
368.9
573.4
79.2
101.2
115.5
246.9
5.6
25.0
278.7
531.6
700.5
75.6
101.3
145.1
308.1
6.5
64.0
1,862.6 1,621.8
1,026.5
303.2
718.3
5.0
836.1
335.5
3.0
40.8
323.8
133.1
308.2
718.3
836.1
82.7
104.2
181.1
357.0
8.1
103.1
273.4
613.7
734.8
76.1
109.0
146.6
315.4
7.0
80.7
All sectors
53 Total credit market debt
6,289.5
7,195.0
8,239.8
9,367.2
10,408.1 9,584.3
9,864.2
54
55
56
57
58
59
60
61
1,629.4
471.7
603.0
1,825.4
437.7
556.5
253.8
512.1
1,902.8
522.1
686.0
2,051.4
519.3
613.2
305.7
594.4
2,227.0
658.4
812.1
2,289.8
601.8
652.6
358.5
639.5
2,620.0
689.2
1,007.4
2,595.8
656.2
721.6
384.9
692.0
2,980.7 2,726.0
723.7
696.9
1,181.2 1,064.9
2,919.7 2,675.1
696.9
643.3
720.8
690.3
438.8
396.1
746.3
691.8
2,807.4
705.2
1,097.7
2,768.6
658.7
701.7
414.6
710.4
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
10,096.9 10,408.1 10,593.3 10,848.6 11,100.8
2,873.7
715.5
1,143.9
2,840.6
680.9
703.8
421.4
717.0
2,980.7
723.7
1,181.2
2,919.7
696.9
720.8
438.8
746.3
3,051.6
728.0
1,228.1
2,964.9
692.2
723.9
447.5
757.0
3,092.3
735.8
1,274.2
3,045.0
709.6
746.6
475.3
769.8
3,172.5
749.4
1,315.2
3,127.0
727.8
744.6
483.4
780.9
Flow of Funds
A45
1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1987
Transaction category, or sector
1983
1984
1985
1986
1988
1987
Ql
Q2
Q3
Q4
Ql
Q2
Q3
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
5,204.3 5,953.7 6,797.0 7,618.1 8,301.3 7,725.8
7,917.4 8,074.1 8,301.3 8,444.3 8,629.8 8,817.3
By public agencies and foreign
2 Total held
3 U.S. government securities
4 Residential mortgages
5 FHLB advances to savings and loans
6 Other loans and securities
1,101.7
339.0
367.0
59.0
336.8
1,259.2
377.9
423.5
74.6
383.1
1,459.4
421.8
518.2
88.8
430.6
1,759.3 2,037.8
491.2
559.4
678.5
862.0
108.6
133.1
481.0
483.4
1,847.6
502.3
758.9
106.8
479.6
1,918.0
519.5
800.0
114.3
484.3
1,967.0 2,037.8 2,098.6 2,144.4 2,192.8
607.1
559.4
592.7
606.1
525.6
834.6
862.0
884.8
906.1
932.2
129.5
134.8
141.6
120.1
133.1
483.4
497.4
486.8
491.5
511.9
7 Total held, by type of lender
8 U.S. government
9 Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,101.7
212.8
482.0
159.2
247.7
1,259.2
229.7
556.3
167.6
305.6
1,459.4
247.6
657.8
186.0
367.9
1,759.3
254.3
833.9
205.5
465.7
2,037.8
235.4
1,044.1
230.1
528.2
1,847.6
249.2
912.0
204.1
482.3
1,918.0
242.9
957.9
214.9
502.3
1,967.0
237.1
1,003.7
219.6
506.7
2,037.8
235.4
1,044.1
230.1
528.2
2,098.6
233.7
1,068.2
224.9
571.8
2,144.4 2,192.8
232.0
232.6
1,091.6 1,124.2
229.7
230.8
591.1
605.3
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
456.7
227.3
531.2
235.1
632.7
236.7
810.3
238.2
1,026.5
244.3
887.1
236.7
937.1
236.8
981.6
238.9
1,026.5
244.3
1,054.8
245.1
1,076.9
246.3
12
13
1,113.7
247.8
Private domestic holdings
14 Total private holdings
15 U.S. government securities
16 State and local obligations
17 Corporate and foreign bonds
18 Residential mortgages
19 Other mortgages and loans
20 LESS: Federal Home Loan Bank advances
4,786.6 5,460.8 6,207.0 6,907.3 7,534.2 7,002.0 7,173.2 7,327.7 7,534.2 7,645.7 7,808.6 7,985.9
1,290.4 1,524.9 1,805.2 2,128.7 2,421.3 2,223.7 2,287.9 2,348.1 2,421.3 2,458.9 2,486.3 2,565.3
471.7
522.1
658.4
689.2
723.7
749.4
723.7
696.9
705.2
715.5
728.0
735.8
441.7
517.6
601.7
626.0
642.4
663.4
688.1
716.3
740.1
757.3
476.8
688.1
992.2 1,096.5 1,185.1 1,267.4 1,316.7 1,225.8 1,260.6 1,284.2 1,316.7 1,328.7 1,372.4 1,410.0
1,649.6 1,915.2 2,129.5 2,328.9 2,517.4 2,336.4 2,391.5 2,436.6 2,517.4 2,543.3 2,608.9 2,645.5
59.0
88.8
108.6
106.8
129.5
134.8
141.6
74.6
133.1
114.3
120.1
133.1
Private financial intermediation
21 Credit market claims held by private financial
institutions
22 Commercial banking
23 Savings institutions
24 Insurance and pension funds
25 Other finance
4,111.2 4,691.0 5,264.4 6,009.5 6,585.2 6,126.1 6,277.5 6,433.5 6,585.2 6,723.0 6,892.6 7,042.6
1,622.1 1,791.1 1,978.5 2,173.2 2,309.6 2,155.9 2,207.9 2,248.7 2,309.6 2,322.1 2,377.5 2,414.3
944.0 1,092.8 1,178.4 1,283.0 1,434.2 1,308.4 1,355.4 1,396.5 1,434.2 1,440.3 1,486.8 1,523.4
1,093.5 1,215.3 1,364.2 1,546.0 1,756.9 1,608.7 1,652.6 1,715.3 1,756.9 1,823.0 1,880.9 1,937.2
743.4 1,007.3 1,084.6 1,053.1 1,061.5 1,073.0 1,084.6 1,137.6 1,147.5 1,167.7
451.6
591.7
26 Sources of funds
27 Private domestic deposits and RPs
28 Credit market debt
4,111.2 4,691.0 5,264.4 6,009.5 6,585.2 6,126.1 6,277.5 6,433.5 6,585.2 6,723.0 6,892.6 7,042.6
2,389.8 2,711.5 2,922.1 3,182.6 3,328.8 3,165.0 3,198.6 3,234.4 3,328.8 3,385.7 3,417.0 3,455.1
895.7
573.4
700.5
836.1
922.0
401.2
475.0
836.1
734.8
772.9
802.1
849.0
29
30
31
32
33
1,320.2
-23.0
11.5
1,036.1
295.6
1,504.5
-14.1
15.5
1,160.8
342.2
1,768.9 2,126.4 2,420.4 2,226.3 2,305.9 2,397.0 2,420.4 2,488.4
5.6
18.6
26.7
26.1
52.7
62.2
62.2
45.9
27.5
25.8
8.6
30.9
33.0
21.6
23.5
21.6
1,289.5 1,427.9 1,592.2 1,461.8 1,507.5 1,552.8 1,592.2 1,656.3
448.0
652.5
744.3
729.2
741.4
758.5
744.3
762.8
2,579.9 2,665.6
62.3
54.8
32.6
31.5
1,706.7 1,751.9
778.3
827.4
Private domestic nonfinancial investors
34 Credit market claims
35 U.S. government securities
36 Tax-exempt obligations
37 Corporate and foreign bonds
38 Open market paper
39 Other
1,076.6
548.6
170.0
45.4
68.4
244.3
1,244.8
663.6
196.3
44.5
72.4
268.0
1,516.0
830.7
235.9
47.6
118.0
283.8
1,811.6
1,027.0
275.3
93.0
148.5
267.9
40 Deposits and currency
41 Currency
42 Checkable deposits
43 Small time and savings accounts
44 Money market fund shares
45 Large time deposits
46 Security RPs
47 Deposits in foreign countries
2,566.4 2,891.7 3,112.5 3,393.4 3,555.7 3,364.7 3,405.6 3,444.5 3,555.7
205.4
150.9
171.9
205.4
185.3
192.4
159.6
186.3
191.3
419.7
512.9
468.5
487.2
510.5
350.9
378.8
510.5
488.0
1,542.9 1,693.5 1,831.9 1,948.3 2,024.2 1,965.2 1,977.7 1,990.8 2,024.2
268.9
169.5
218.5
227.3
297.1
281.3
279.5
286.4
297.1
328.4
323.4
247.7
332.1
339.8
322.5
326.3
356.0
356.0
103.3
124.1
78.8
88.7
141.0
126.6
130.9
143.6
141.0
25.7
18.5
24.5
14.4
21.6
20.6
21.6
15.7
17.8
48 Total of credit market instruments, deposits, and
currency
3,643.0 4,136.5 4,628.5 4,991.7 5,340.8 4,975.4 5,074.2 5,140.8 5,340.8 5,379.0 5,458.0 5,556.1
49
50
51
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
20.3
85.9
224.7
20.3
85.9
291.5
20.7
84.8
373.5
1,598.3
881.2
222.3
80.1
115.0
299.7
22.4
87.0
484.2
1,785.0
1,014.7
268.4
85.3
143.5
273.2
23.8
87.4
590.5
1,610.7
912.0
226.2
88.8
115.5
268.1
23.2
87.5
509.0
1,668.7
950.4
243.1
71.4
132.6
271.2
23.5
87.5
528.4
1,696.3
969.4
255.9
80.6
118.7
271.9
23.7
87.8
559.4
1,785.0
1,014.7
268.4
85.3
143.5
273.2
23.8
87.4
590.5
1,771.6
1,025.7
265.6
82.7
127.8
269.9
1,865.3
1,071.4
287.3
88.4
149.6
268.5
3,607.4 3,646.4 3,690.7
209.9
210.7
204.0
506.8
491.1
497.3
2,079.4 2,107.9 2,126.8
310.4
322.1
311.1
351.0
346.1
372.4
147.4
142.1
145.9
19.4
17.8
25.0
24.2
87.9
617.6
24.2
88.3
653.4
24.2
88.2
660.0
MEMO: Corporate equities not included above
52 Total market value
2,134.0 2,158.2 2,824.5 3,362.0 3,313.4 3,990.2 4,110.0 4,300.8 3,313.4 3,494.8 3,612.6 3,577.5
53
54
Mutual fund shares
Other equities
240.2
413.5
112.1
136.7
460.1
2,021.9 2,021.5 2,584.3 2,948.5 2,853.2
55
56
Holdings by financial institutions
Other holdings
612.0
1,522.0
520.7
3,589.3
525.1
3,775.7
460.1
2,853.2
479.2
3,015.7
486.8
483.9
3,125.9 3,093.6
800.0
972.2 1,021.7 1,175.7 1,238.9 1,312.5 1,021.7 1,087.1 1,133.8 1,133.0
615.6
1,542.6 2,024.5 2,389.8 2,291.7 2,814.5 2,871.1 2,988.4 2,291.7 2,407.7 2,478.9 2,444.4
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
12. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34.
Also sum of lines 29 and 48 less lines 41 and 47.
19. Includes farm and commercial mortgages.
27. Line 40 less lines 41 and 47.
28. Excludes equity issues and investment company shares. Includes line 20.
30. Foreign deposits at commercial banks plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
31. Demand deposits and note balances at commercial banks.
485.2
3,505.0
32. Excludes net investment of these reserves in corporate equities.
33. Mainly retained earnings and net miscellaneous liabilities.
34. Line 14 less line 21 plus line 28.
35-39. Lines 15-19 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 39 includes mortgages.
41. Mainly an offset to line 10.
48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47.
49. Line 2/line 1 and 13.
50. Line 21/line 14.
51. Sum of lines 11 and 30.
52-54. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A46 Domestic Nonfinancial Statistics • February 1989
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1988
Measure
1985
1986
1987
Mar.
Apr.
May
June
July
Aug.
Sept.'
Oct.'
Nov.
1 Industrial production
123.7
125.1
129.8
134.7
135.4
136.1
136.5
138.0
138.5'
138.6
139.3
139.9
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
130.6
131.0
119.8
145.8
129.3
114.3
133.3
132.5
124.0
143.6
136.2
113.8
138.3
136.8
127.7
148.8
143.5
118.2
143.6
141.8
131.2
155.9
149.9
122.5
144.1
142.5
131.9
156.5
149.6
123.6
145.0
143.5
132.7
157.7
150.4
123.9
145.3
144.0
133.0
158.5
150.0
124.5
146.5
145.0
134.2
159.4
151.6
126.4
147.3'
145.8'
135.0'
160.1'
152.3'
126.5'
147.5
145.8
134.8
160.4
153.1
126.5
148.2
146.7
136.4
160.2
153.8
127.1
148.7
146.9
136.8
160.4
154.8
128.0
126.4
129.1
134.6
140.0
140.8
141.8
142.1
143.6
144.0'
144.4
145.3
146.0
80.1
80.3
79.7
78.6
81.1
80.5
82.7
82.4
82.9
82.9
83.3
83.0
83.3
83.2
84.0
84.4
84.0'
84.3
84.0
84.1
84.3
84.4
84.5
84.8
2
i
4
5
6
7
Industry
groupings
8 Manufacturing
Capacity utilization (percent) 2
9
Manufacturing
10
Industrial materials industries
11 Construction contracts (1982 = 100)3
150.0
158.0
161.0
154.0
144.0
157.0
165.0
156.0
155.0
151.0
153.0
157.0
12
13
14
15
16
1/
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, p r o d u c t i o n - w o r k e r . . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income
Retail sales
118.3
102.1
97.8
92.6
125.0
206.9
198.8
172.8
205.8
189.6
120.7
100.9
96.3
91.2
129.0
219.7
210.7
177.4
218.9
199.5
124.1
101.8
96.8
92.1
133.4
235.1
226.2
183.8
232.7
209.3
127.3
104.1
98.6
93.7
137.1
248.0
238.9
193.6
247.0
220.3
127.7
104.5
98.8
93.9
137.4
248.8
240.9
192.8
243.3
219.4
127.9
104.6
99.0
94.1
137.7
250.2
242.3
193.8
249.5
221.2
128.6
105.1
99.3
94.4
138.4
251.6
244.2
195.4
251.2
222.5
128.9
105.4
99.5
94.6
138.7
253.3
246.7
196.6
253.l r
223.7
129.1
105.3
99.4
94.4
139.0
254.5
247.4
196.8
254.2'
224.4'
129.4
105.4
99.3
94.3
139.5
256.0
249.0
198.1
255.6
223.7
129.7
105.7
99.8
94.9
139.8
260.2
252.7
202.3
260.1
227.4
130.3
106.2
100.2
95.3
140.3
259.7
253.6
201.4
259.3
229.9
22
23
Prices 7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
107.6
104.7
109.6
103.2
113.6
105.4
116.5
106.3
117.1
107.0
117.5
107.5
118.0
107.9
118.5
108.5
119.0
108.8
119.8
108.6
120.2
109.3
120.3
109.7
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
(1977= 100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 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.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
A47
LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1988
Category
1985
1986
1987
Apr.
May
June
July
Aug.
Sept/
Oct/
Nov.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
180,440
182,822
185,010
186,478
186,600
186,755
186,911
187,033
187,178
187,333
187,471
2 Labor force (including Armed Forces) 1
3
Civilian labor force
Employment
4
Nonagricultural industries
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
117,695
115,461
120,078
117,834
122,122
119,865
123,569
121,323
123,204
120,978
123,665
121,472
123,866
121,684
124,234
122,031
124,140
121,924
124,231
122,012
124,799
122,572
103,971
3,179
106,434
3,163
109,232
3,208
111,485
3,228
111,160
3,035
111,933
3,085
112,014
3,046
112,029
3,151
112,158
3,169
112,255
3,266
112,700
3,276
8,312
7.2
62,745
8,237
7.0
62,744
7,425
6.2
62,888
6,610
5.4
62,909
6,783
5.6
63,396
6,455
5.3
63,090
6,625
5.4
63,045
6,851
5.6
62,799
6,596
5.4
63,038
6,491
5.3
63,102
6,595
5.4
62,672
97,519
99,525
102,310
105,281
105,489
106,057
106,271
106,425
106,737
106,975
107,438
19,260
927
4,673
5,238
23,073
5,955
22,000
16,394
18,965
777
4,816
5,255
23,683
6,283
23,053
16,693
19,065
721
4,998
5,385
24,381
6,549
24,196
17,015
19,460
737
5,238
5,543
25,182
6,650
25,163
17,308
19,490
739
5,237
5,556
25,245
6,656
25,216
17,350
19,544
740
5,308
5,582
25,353
6,679
25,472
17,379
19,593
740
5,330
5,598
25,435
6,684
25,561
17,330
19,560
739
5,340
5,605
25,471
6,689
25,662
17,359
19,549
734
5,365
5,618
25,510
6,692
25,737
17,532
19,648
729
5,364
5,623
25,571
6,710
25,814
17,516
19,719
722
5,419
5,662
25,618
6,729
26,008
17,561
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
Domestic Nonfinancial Statistics •
F e b r u a r y 1989
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1987
1988
1988
1987
1987
1988
Series
Q4
Ql
Q2
Q3
Output (1977 = 100)
Q4
Ql
Q2
Q3
Q4
Capacity (percent of 1977 output)
Ql
Q2
Q3'
Utilization rate (percent)
1 Total industry
133.2
134.5
136.0
138.2
162.2
163.1
164.2
165.2
82.1
82.4
82.8
83.8
2 Mining
3 Utilities
104.3
112.3
102.5
114.7
103.3
111.7
104.8
114.9
128.4
139.4
127.7
139.8
127.0
140.1
126.2
140.4
81.2
80.6
80.3
82.0
81.5
79.9
82.3
81.9
4 Manufacturing
138.1
139.6
141.6
143.7
167.7
168.9
170.2
171.5
82.3
82.7
83.2
84.0
5 Primary processing
6 Advanced processing...
122.2
147.6
123.0
149.7
123.9
152.3
125.7
154.5
140.6
184.1
141.6
185.6
142.7
186.7
143.9
188.1
86.9
80.1
86.9
80.7
86.8
81.5
87.4
82.4
7 Materials
122.5
122.5
124.0
126.6
147.8
148.5
149.3
150.1
82.9
82.5
83.0
84.3
8 Durable goods
9
Metal materials
10 Nondurable goods
11 Textile, paper, and chemical . .
P
131.5
86.2
129.4
131.6
145.7
133.5
134.2
88.1
130.5
132.6
145.9
135.7
136.9
92.4
132.4
135.1
164.7
108.9
145.6
145.4
146.2
152.0
165.7
108.8
146.8
146.7
147.6
153.5
166.8
109.1
148.3
148.5
149.2
155.4
167.9
109.4
149.8
150.2
n
130.3
91.4
130.1
133.0
145.1
135.5
79.1
84.0
89.3
91.5
99.2
89.1
79.4
79.2
88.1
89.7
98.7
87.0
80.4
80.8
87.9
89.2
97.8
87.3
81.6
84.8
88.7
90.1
98.8
88.7
14 Energy materials
102.1
100.9
100.4
103.5
119.9
119.7
119.4
119.1
85.2
84.3
84.2
86.0
July
Aug.
Sept/
Oct/
Nov.
Previous cycle 2
High
Low
Latest cycle 3
1987
Low
Nov.
High
1988
Mar.
Apr.
May
June
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
82.1
82.4
82.7
82.9
83.0
83.7
83.8
83.7
84.0
84.2
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
81.5
81.2
80.6
81.0
82.3
79.3
80.8
79.7
81.2
80.8
82.5
81.5
82.2
83.9
82.2
80.3
81.6
80.8
82.2
81.0
18 Manufacturing
87.7
69.9
86.5
68.0
82.2
82.7
82.9
83.3
83.3
84.0
84.0
84.0
84.3
84.5
19 Primary processing....
20 Advanced processing..
91.9
86.0
68.3
71.1
89.1
85.1
65.0
69.5
87.0
80.0
86.9
80.7
86.9
81.2
87.0
81.7
86.6
81.7
87.8
82.2
87.4
82.4
87.2
82.5
87.6
82.7
88.0
82.9
21 Materials
92.0
70.5
89.1
68.5
82.9
82.4
82.9
83.0
83.2
84.4
84.3
84.1
84.4
84.8
22 Durable goods
Metal materials
23
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
79.0
83.3
79.1
78.3
79.7
79.3
80.8
82.1
80.7
80.8
81.7
84.9
81.4
83.4
81.9
86.0
82.3
87.1
82.7
87.4
24 Nondurable goods . . . .
91.1
66.7
88.1
70.7
89.0
88.3
88.7
87.7
87.4
88.9
88.8
88.2
88.7
89.0
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.8
79.9
63.5
91.0
98.7
88.6
89.9
97.8
87.5
90.1
98.1
88.0
88.8
98.1
86.9
88.9
97.1
87.0
90.4
100.0
88.8
90.3
98.4
89.0
89.5
97.9
88.3
90.0
98.2
89.1
90.2
">6
?7
28 Energy materials
94.6
86.9
94.0
82.3
85.7
84.1
84.5
83.3
84.4
86.2
86.6
85.1
84.7
85.5
25
Textile, paper, and
chemical
1. These data also appear in the Board's CI.3 (402) release. For address, see
inside front cover.
2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.
Selected Measures
2.13 INDUSTRIAL PRODUCTION
A49
Indexes and Gross Value1
Monthly data are seasonally adjusted
1987
1977
Groups
portion
1988
1987
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Oct."
Nov."
138.0
138.5
138.6
139.3
139.9
148.7
146.9
136.8
160.4
154.8
128.0
128.9
129.8
129.5
101.0
Index (1977 = 100)
MAJOR MARKET
1
Total index
100.00
129.8
133.2
133.9
134.4
134.4
134.7
135.4
136.1
136.5
57.72
44.77
25.52
19.25
12.94
42.28
138.3
136.8
127.7
148.8
143.4
118.2
141.0
139.2
129.4
152.2
147.3
122.5
141.3
139.8
129.8
153.1
146.5
123.7
142.7
141.1
131.2
154.3
148.1
123.0
143.4
141.6
131.3
155.3
149.4
122.1
143.6
141.8
131.2
155.9
149.9
122.5
144.1
142.5
131.9
156.5
149.6
123.6
145.0
143.5
132.7
157.7
150.4
123.9
145.3
144.0
133.0
158.5
150.0
124.5
146.5
145.0
134.2
159.4
151.6
126.4
147.3
145.8
135.0
160.1
152.3
126.5
147.5
145.8
134.8
160.4
153.1
126.5
148.2
146.7
136.4
160.2
153.8
127.1
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
120.2
118.5
115.1
90.7
160.5
123.5
121.6
141.5
142.1
130.7
102.0
123.9
121.3
118.7
91.9
168.5
125.2
125.8
150.1
150.5
133.5
103.9
120.3
115.4
110.2
83.7
159.5
123.3
123.9
142.7
142.6
133.9
104.8
121.7
118.7
112.8
77.5
178.3
127.7
124.0
142.2
140.9
134.2
105.2
420.6
117.6
111.8
79.5
171.6
126.4
122.8
140.6
141.4
132.3
104.7
120.4
120.6
116.4
86.3
172.2
126.9
120.2
132.8
132.7
133.1
103.9
123.3
121.9
118.0
91.0
168.2
127.8
124.3
143.2
142.2
133.1
105.7
125.6
127.1
126.9
98.9
178.9
127.4
124.4
142.2
143.0
135.8
105.2
125.3
127.1
125.3
99.0
174.1
129.7
123.9
138.0
137.1
135.9
107.0
125.3
124.4
120.8
93.8
170.8
129.9
125.9
143.3
143.8
136.6
107.4
125.7
124.2
123.1
93.0
179.0
125.9
126.8
146.5
146.1
137.2
106.8
126.3
126.3
124.8
97.7
175.3
128.6
126.3
144.9
143.7
137.3
106.8
129.1
128.6
128.3
101.3
178.4
129.1
129.4
154.4
151.9
137.8
106.6
19 Nondurable consumer goods
Consumer staples
70
Consumer foods and tobacco
71
Nonfood staples
77
73
Consumer chemical products
Consumer paper products
24
75
Consumer energy
Consumer fuel
76
Residential utilities
27
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
130.5
137.3
136.2
138.5
162.9
151.8
106.3
93.1
119.8
131.5
138.3
137.3
139.4
163.5
152.8
107.4
93.2
121.8
133.3
140.7
139.2
142.2
167.7
157.0
108.0
95.4
120.7
134.7
142.3
140.3
144.3
170.7
157.1
110.6
95.4
126.0
135.3
142.9
140.8
145.0
171.7
157.5
111.3
97.0
125.8
135.1
142.5
139.4
145.7
172.7
159.1
111.0
97.9
124.5
135.1
142.5
138.3
146.8
175.6
161.4
109.6
98.9
120.5
135.4
143.1
139.2
147.0
177.9
162.4
107.3
94.3
120.6
135.8
143.5
139.3
147.9
179.5
162.8
107.7
93.0
122.6
137.5
145.3
141.1
149.6
181.8
164.0
109.3
94.6
124.4
138.5
146.6
141.3
152.1
183.8
165.3
113.0
95.5
130.9
138.0
145.8
141.0
150.9
185.1
167.0
107.5
92.5
122.8
139.2
147.3
142.4
152.4
186.0
168.3
109.6
95.7
139.7
147.9
Equipment
78 Business and defense equipment
79
Business equipment
Construction, mining, and farm
30
Manufacturing
31
37
Power
33
Commercial
34
Transit
35
Defense and space equipment
18.01 153.6
14.34 144.5
2.08 62.2
3.27 117.9
1.27 82.6
5.22 226.5
2.49 108.4
3.67 188.9
156.6
148.3
66.3
120.6
83.1
232.1
111.2
188.7
157.8
149.8
67.4
122.2
84.2
235.5
109.1
188.9
159.2
151.2
67.1
125.4
86.2
238.0
106.5
190.6
160.3
152.4
67.6
124.9
88.3
240.3
108.2
191.0
160.8
153.3
68.3
127.0
87.8
239.9
111.1
189.9
161.4
154.6
70.8
127.7
87.0
241.5
112.3
187.9
162.7
156.9
71.8
128.3
87.4
245.7
115.3
185.5
163.5
158.1
72.4
130.3
88.3
247.1
115.7
184.6
164.6
159.3
73.6
132.4
89.8
248.2
115.9
184.9
165.2
160.2
73.1
134.0
90.9
249.8
115.2
184.9
165.7
160.8
73.9
135.5
92.2
249.2
116.6
184.6
165.5
160.7
74.6
136.8
92.6
246.5
119.3
184.4
166.0
161.3
75.3
138.3
93.3
246.1
120.7
184.3
7 Products
3 Final products
Consumer goods
4
5
Equipment
Intermediate products
6
7 Materials
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and trucks
Autos, consumer
11
Trucks, consumer
1?
N
Auto parts and allied goods
14
Home goods
Appliances, A/C and TV
15
Appliances and TV
16
Carpeting and furniture
17
Miscellaneous home goods
18
Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
Commercial energy products
39
Materials
40 Durable goods materials
41
Durable consumer parts
Equipment parts
47
43
Durable materials n.e.c
44
Basic metal materials
130.2
128.2
150.1
152.7
5.95
6.99
5.67
1.31
131.5
153.5
158.6
131.1
134.2
158.4
164.3
132.9
133.8
157.4
163.3
131.8
136.8
157.8
163.1
135.0
137.7
159.4
165.0
135.3
137.3
160.7
166.6
135.3
137.6
159.9
165.7
134.6
138.8
160.3
165.5
137.8
137.6
160.6
165.9
137.5
138.4
162.8
168.6
137.6
138.1
164.4
170.6
137.7
138.6
165.4
172.1
136.4
139.6
165.9
172.6
136.7
140.7
20.50
4.92
5.94
9.64
4.64
125.0
100.9
159.0
116.4
86.7
130.2
103.1
163.2
123.6
96.5
132.0
104.6
165.3
125.5
100.0
131.8
104.7
167.4
123.7
92.9
131.4
104.4
167.6
123.0
91.4
131.3
103.5
167.3
123.4
90.5
132.7
106.2
168.9
134.8
110.0
170.8
125.3
94.8
134.9
110.3
171.6
124.8
93.7
136.8
110.1
174.1
127.5
98.4
136.6
109.8
173.5
127.6
97.3
137.9
111.0
173.8
129.4
100.3
138.8
111.8
174.6
130.5
100.8
139.7
113.0
174.9
131.7
101.5
124.0
91.6
45 Nondurable goods materials
46
Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
Miscellaneous nondurable materials . . .
50
10.09
125.8
129.6
132.5
129.9
128.1
130.1
131.1
130.1
130.1
132.8
133.1
132.6
133.8
134.8
7.53
1.52
1.55
4.46
2.57
127.6
111.7
141.0
128.4
120.4
132.3
112.7
144.4
134.7
121.7
135.6
113.6
149.0
138.4
123.3
132.7
112.6
148.0
134.2
121.8
129.9
110.2
144.4
131.5
123.0
132.4
112.7
144.8
134.8
123.2
133.3
111.9
145.8
136.2
124.6
131.9
107.5
146.4
135.1
125.1
132.1
107.5
145.4
135.8
124.2
135.3
108.5
150.3
139.2
125.6
135.7
110.1
148.3
140.0
125.6
135.0
108.3
148.1
139.5
125.8
136.2
108.2
149.0
141.3
137.1
51 Energy materials
5?
Primary energy
53 Converted fuel materials
11.69
7.57
4.12
99.8
105.0
90.3
102.8
108.4
92.6
101.7
107.7
90.7
101.4
107.3
90.6
100.6
104.8
93.0
100.6
105.0
92.6
101.0
106.7
90.5
99.5
104.0
91.2
101.3
105.6
93.5
102.7
106.8
95.3
103.2
106.2
97.7
101.3
106.5
91.7
100.8
105.8
91.5
101.6
A50
Domestic Nonfinancial Statistics • F e b r u a r y 1989
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued
Groups
SIC
code
1977
1987
1988
1987
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Oct."
Nov/
Index (1977 = 100)
MAJOR INDUSTRY
1 Mining and utilities
2
Mining
3
Utilities
4 Manufacturing
5
Nondurable
6
Durable
15.79
9.83
5.96
84.21
35.11
49.10
104.3
100.7
110.3
134.6
136.7
133.1
107.9
104.6
113.2
137.9
139.6
136.7
107.3
104.6
111.7
138.9
141.3
137.3
107.8
103.3
115.2
139.4
141.4
137.9
106.8
101.5
115.6
139.5
141.1
138.4
106.7
102.7
113.3
140.0
141.7
138.8
107.1
104.7
111.0
140.8
142.3
139.7
106.0
102.6
111.6
141.8
142.1
141.5
106.8
103.0
113.2
142.1
142.6
141.7
108.1
104.3
114.4
143.6
144.6
142.9
109.0
103.8
117.8
144.0
145.1
143.2
107.0
103.5
112.8
144.4
145.3
143.8
106.7
102.6
113.5
145.3
146.2
144.7
107.3
103.2
114.0
146.0
146.8
145.4
10
11.12
13
14
.50
1.60
7.07
.66
77.5
131.8
92.7
128.2
90.4
142.9
94.2
134.1
96.5
140.6
94.1
135.6
91.5
140.2
93.1
132.1
83.9
133.7
92.4
134.3
84.9
129.1
94.8
136.9
86.9
136.0
95.5
141.2
86.0
127.8
94.6
140.1
82.2
126.9
95.8
137.4
94.0
141.5
93.3
140.2
96.6
137.2
93.2
141.3
99.1
142.2
91.7
139.5
138.5
91.1
141.4
145.6
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction
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
137.7
103.4
115.8
107.4
144.4
138.9
106.5
117.3
109.4
148.3
140.1
110.5
118.2
107.8
150.6
141.2
105.8
116.2
108.7
149.9
141.9
107.0
115.3
108.5
148.0
141.1
107.2
117.0
108.7
149.1
140.3
107.2
117.3
109.2
149.2
141.0
107.2
114.6
108.6
149.5
141.3
104.5
114.3
109.3
148.6
143.3
100.6
117.1
109.4
152.3
143.3
105.1
116.4
108.9
151.0
143.2
103.0
115.7
109.6
150.8
144.3
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
172.0
140.1
93.5
163.6
60.0
175.7
144.4
93.3
169.9
60.7
176.9
147.9
96.1
170.6
57.5
177.5
147.9
96.3
170.5
58.3
178.7
145.4
95.9
172.3
59.7
180.4
146.4
98.4
172.2
59.5
181.8
148.9
98.5
172.3
58.0
180.7
149.1
95.2
173.4
57.1
182.3
150.5
94.1
174.4
58.9
184.9
153.4
95.0
175.4
59.1
186.7
154.8
96.0
175.3
59.4
188.7
155.5
93.6
175.2
59.5
189.3
156.5
96.2
176.0
59.8
Durable
manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, and stone products.
24
25
32
2.30
1.27
2.72
130.3
152.8
119.1
134.0
158.5
120.5
133.6
159.4
120.1
136.3
158.0
120.4
139.0
158.3
121.6
137.8
159.4
122.5
138.0
159.2
121.4
139.8
160.5
121.5
136.4
161.2
123.4
136.6
162.9
122.2
133.8
164.9
122.6
133.5
165.1
122.8
136.9
164.1
122.6
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
81.5
70.8
111.0
152.7
172.3
90.2
79.7
113.6
157.2
175.6
90.6
81.9
115.8
161.0
175.9
86.5
77.8
117.1
162.9
177.4
86.4
77.4
117.6
163.6
177.8
85.1
74.2
118.8
164.6
176.6
85.3
74.5
118.8
167.2
178.7
89.2
78.6
119.8
170.3
179.1
87.5
74.2
120.4
171.2
179.5
91.5
80.2
121.7
173.1
181.5
90.8
78.9
122.1
174.1
182.2
93.0
81.4
122.6
175.0
181.7
94.3
83.7
122.9
175.3
183.1
124.3
176.2
182.8
37
371
9.13
5.25
129.2
111.8
130.4
114.0
128.1
110.2
128.6
109.7
128.4
109.3
130.0
113.0
130.4
114.8
133.1
119.6
132.8
119.1
131.9
116.6
131.8
117.5
132.6
118.5
134.3
121.4
135.4
122.8
372-6.9
38
39
3.87
2.66
1.46
152.8
143.9
102.6
152.7
147.8
104.5
152.4
145.5
105.6
154.2
148.2
105.0
154.5
149.2
104.4
153.0
149.7
105.1
151.5
150.5
105.9
151.5
151.3
106.0
151.4
153.0
107.6
152.7
156.4
107.8
151.3
156.8
108.3
151.7
158.0
108.5
151.9
159.1
107.9
152.5
159.6
4.17
126.6
127.5
125.6
130.3
130.7
129.0
127.6
129.7
132.1
134.6
138.8
131.9
132.4
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
29 Transportation equipment
30
Motor vehicles and parts
31
Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures
Utilities
34 Electric
115.1
151.9
189.2
94.3
94.8
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total
517.5 1,735.8 1,772.4 1,778.8 1,790.6 1,797.5 1,807.5 1,812.2 1,820.1 1,813.9 1,822.3 1828.6 1829.1 1855.1 1857.6
36 Final
37
Consumer goods.
38
Equipment
39 Intermediate
405.7
272.7
133.0
111.9
1,333.8 1,359.9 1,359.4 1,375.5 1,381.1 1,385.9 1,393.9 1,397.1 1,394.3 1,398.9 1404.2 1404.2 1425.3 1426.3
866.0 879.8 881.2 893.6 893.7 893.2 899.1 898.9 893.6 895.6 900.4 896.9 915.8 916.1
467.8 480.1 478.2 481.9 487.3 492.7 494.7 498.3 500.7 503.2 503.8 507.3 509.5 510.2
402.0 412.5 419.4 415.1 416.5 421.6 418.4 423.0 419.6 423.4 424.3 424.9 429.8 431.3
1. These data also appear in the Board's G. 12.3 (414) release. For address, see
inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See " A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
(1977= 100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
Selected Measures
2.14
A51
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1988
Item
1985
1986
1987
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
2-or-more-family
3
1,733
957
111
1,750
1,071
679
1,535
1,024
511
1,248
918
330
1,429
1,003
426
1,476
1,030
446
1,449
960
489
1,436
982
454
1,493
1,002
491
1,420
984
436
1,464
1,022
442
1,394
974
420
1,516
1,027
489
4 Started
5
1-family
6
2-or-more-family
1,742
1,072
669
1,805
1,179
626
1,621
1,146
474
1,382
1,016
366
1,519
1,102
417
1,529
1,172
357
1,584
1,093
491
1,393
1,004
389
1,465
1,092
373
1,477
1,068
409
1,461
1,078
383
1,467
1,045
422
1,542
1,142
400
7 Under construction, end of period 1 .
8
1-family
9
2-or-more-family
1,063
539
524
1,074
583
490
987
591
397
1,008
614
394
983
596
387
999
617
382
999
622
377
984
610
374
982
609
373
974
606
368
965
603
362
957
598
359
956
600
356
1,703
1,072
631
1,756
1,120
637
1,669
1,123
546
1,550
1,098
452
1,452
1,043
409
1,598
1,094
504
1,665
1,059
606
1,450
1,090
360
1,518
1,106
412
1,529
1,077
452
1,538
1,072
466
1,540
1,093
447
1,505
1,077
428
13 Mobile homes shipped
284
244
233
200
208
212
213
216
230
206
223
228
214
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period
688
350
748
361
672
370
579
368
648
359
664
372
681
367
681
370
718
367
703'
365'
718
363
708
361
733
356
10 Completed
11
1-family
12
2-or-more-family
16
Price (thousands
Median
Units sold
17
of dollars)2
Units sold
84.3
92.2
104.7
119.0
110.9
108.9
111.0
110.0
111.5
NS.C
110.0
117.0
115.9
101.0
112.2
127.9
144.4
137.6
133.2
135.6
133.5
136.5
141.3'
140.0
143.0
140.1
3,217
3,566
3,530
3,170
3,250
3,330
3,520
3,590
3,820
3,630
3,710
3,670
3,630
75.4
90.6
80.3
98.3
85.6
106.2
87.4
108.7
88.1
110.4
87.9
110.7
87.3
108.7
88.8
111.9
90.2
115.4
90.7
114.8
91.4
115.1
88.2
112.3
88.1
110.5
EXISTING UNITS (1-family)
18 Number sold
Price of units sold
(thousands of dollars)
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
355,735
386,093
398,848
395,264
392,456
403,555
396,238
398,473
395,714
401,777
402,820
405,505
409,242
22 Private
23
Residential
Nonresidential, total
24
Buildings
Industrial
25
26
Commercial
27
Other
28
Public utilities and other
291,665
158,475
133,190
314,651
187,147
127,504
323,819
194,772
129,047
321,550
195,168
126,382
317,754
192,097
125,657
324,257
195,554
128,703
318,515
192,026
126,489
320,194
190,374
129,820
317,708
188,071
129,637
322,497
192,777
129,720
326,170
195,758
130,412
326,514
196,896
129,618
328,366
198,920
129,446
15,769
59,629
12,619
45,173
13,747
56,762
13,216
43,779
13,707
55,448
15,464
44,428
13,480
53,555
16,954
42,393
13,489
53,571
17,101
41,496
14,546
54,843
17,301
42,013
13,849
56,169
16,382
40,089
13,907
57,447
16,847
41,619
13,676
56,585
16,757
42,619
13,183
56,658
16,148
43,731
12,906
56,381
16,618
44,507
12,745
55,712
16,662
44,499
13,730
54,226
17,062
44,428
64,070
3,235
21,540
4,777
34,518
71,437
3,868
22,681
4,646
40,242
75,028
4,327
22,758
5,162
42,781
73,715
4,172
24,808
4,038
40,697
74,702
3,280
25,348
4,535
41,539
79,298
4,216
26,963
4,899
43,220
77,723
3,872
26,912
4,226
42,713
78,278
3,547
25,254
4,460
45,017
78,007
4,844
24,822
4,596
43,745
79,280
4,182
27,548
4,884
42,666
76,651
4,043
23,537
4,853
44,218
78,991
4,469
24,040
4,981
45,501
80,875
3,558
25,894
4,886
46,537
29 Public
30
Military
31
Highway
Conservation and d e v e l o p m e n t . . .
32
33
Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
A52 Domestic Nonfinancial Statistics • February 1989
2.15
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
Change from 3 months earlier
(at annual rate)
1987
1987
1988
Index
level
Nov.
1988
1988
Nov.
Change from 1 month earlier
Nov.
1988
Dec.
Mar.
June
Sept.
July
Aug.
Sept.
Oct.
Nov.
CONSUMER PRICES2
(1982-84=100)
1
All items
4.5
4.2
3.2
4.2
4.5
4.8
.4
.4
.3
.4
.3
120.3
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
3.3
9.3
4.4
3.9
4.5
5.3
-.1
4.4
3.6
4.9
2.8
-3.9
4.4
2.5
5.0
1.4
-4.9
5.4
4.7
5.9
7.1
4.2
4.3
3.9
4.5
9.9
2.7
4.0
3.1
4.1
1.0
.3
.3
.3
.4
.6
.9
.2
-.3
.5
.8
-.6
.4
.8
.1
.2
.1
.5
.7
.5
.1
.2
.3
.1
.5
120.2
88.9
125.8
118.2
130.3
2.6
.5
13.4
2.4
1.3
3.2
4.6
-4.3
4.2
3.1
-1.9
-5.7
-9.6
1.7
-.7
2.7
6.0
-18.5
5.7
3.2
3.8
8.2
.7
2.4
2.5
6.5
10.0
-.7
6.6
6.5
.7
.6'
2.W
,8R
.4
.5 R
,5R
1.2'
.3
.4
.4
1.2
-3.3
.4
.8
.0
-.1
.3
.0
-.3
.3
.0
1.2
.3
.3
109.7
114.9
59.8
120.5
116.0
5.4
4.8
5.0
7.2
4.3
7.2
4.3
8.2
7.8
6.9
4.9
7.2
.5
.7
.4
.4
.4
.6
.1
.5
.6
.7
108.8
118.0
-.3
11.5
23.9
13.0
-16.2
5.4
-4.8
-15.2
18.0
17.7
-24.1
15.9
31.0
7.8
-6.5
23.0
-26.1
8.5
1.4
1.8
2.2
— .4 R
,8 R
1.6
-3.1
-.6
1.4
-2.2
.2
-6.0
-1.4
.7
107.7
62.6
134.0
PRODUCER PRICES
(1982=100)
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.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
A53
GROSS N A T I O N A L PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1987
Account
1985
1986
1988
1987
Q3
Q4
Ql
Q2
Q3'
GROSS NATIONAL PRODUCT
4,014.9
4,240.3
4,526.7
4,568.0
4,662.8
4,724.5
4,823.8
4,909.0
2,629.0
372.2
911.2
1,345.6
2,807.5
406.5
943.6
1,457.3
3,012.1
421.9
997.9
1,592.3
3,058.2
441.4
1,006.6
1,610.2
3,076.3
422.0
1,012.4
1,641.9
3,128.1
437.8
1,016.2
1,674.1
3,194.6
449.8
1,036.6
1,708.2
3,261.2
452.9
1,060.8
1,747.5
643.1
631.8
442.9
153.2
289.7
188.8
665.9
650.4
433.9
138.5
295.4
216.6
712.9
673.7
446.8
139.5
307.3
226.9
702.8
688.3
462.1
143.0
319.1
226.2
764.9
692.9
464.1
147.7
316.3
228.8
763.4
698.1
471.5
140.1
331.3
226.6
758.1
714.4
487.8
142.3
345.5
226.5
772.5
722.8
493.7
143.8
349.9
229.1
11.3
14.6
15.5
17.4
39.2
40.7
14.5
17.8
72.0
72.8
65.3
49.4
43.7
33.1
49.7
41.9
14 Net exports of goods and services
IS
Exports
16
Imports
-78.0
370.9
448.9
-104.4
378.4
482.8
-123.0
428.0
551.1
-125.2
440.4
565.6
-125.7
459.7
585.4
-112.1
487.8
599.9
-90.4
507.1
597.5
-80.0
536.1
616.0
17 Government purchases of goods and services
18
Federal
19
State and local
820.8
355.2
465.6
871.2
366.2
505.0
924.7
382.0
542.8
932.2
386.3
546.0
947.3
391.4
555.9
945.2
377.7
567.5
961.6
382.2
579.4
955.3
367.7
587.6
4,003.6
1,641.2
706.5
934.6
1,968.3
405.4
4,224.7
1,697.9
725.3
972.6
2,118.3
424.0
4,487.5
1,792.5
776.3
1,016.3
2,295.7
438.4
4,553.5
1,812.9
792.2
1,020.7
2,314.4
440.6
4,590.7
1,849.4
808.7
1,040.7
2,363.9
449.5
4,659.2
1,879.4
819.3
1,060.1
2,405.2
439.9
4,780.1
1,928.0
849.5
1,078.5
2,451.5
444.3
4,859.3
1,960.1
881.6
1,078.5
2,501.6
447.3
11.3
6.4
4.9
15.5
4.2
11.3
39.2
26.6
12.6
14.5
2.9
11.6
72.0
50.5
21.6
65.3
26.6
38.6
43.7
17.8
25.9
49.7
45.1
4.6
3,618.7
3,721.7
3,847.0
3,865.3
3,923.0
3,956.1
3,985.2
4,009.4
30
3,234.0
3,437.1
3,678.7
3,708.0
3,802.0
3,850.8
3,928.8
4,000.7
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
2,367.5
1,975.2
372.0
1,603.4
392.4
204.8
187.6
2,507.1
2,094.0
393.7
1,700.3
413.1
217.0
196.1
2,683.4
2,248.4
420.1
1,828.3
435.0
227.1
207.9
2,702.8
2,265.3
423.2
1,842.1
437.5
228.2
209.3
2,769.9
2,324.8
429.2
1,895.6
445.1
232.7
212.4
2,816.4
2,358.7
437.1
1,921.6
457.7
243.1
214.6
2,874.0
2,410.0
442.9
1,967.1
464.0
247.5
216.5
2,933.2
2,462.0
449.1
2,012.9
471.1
251.7
219.5
255.9
225.6
30.2
286.7
250.3
36.4
312.9
270.0
43.0
306.8
271.5
35.2
326.0
279.0
47.0
323.9
279.2
44.7
328.8
285.3
43.4
321.6
290.7
30.9
9.2
12.4
18.4
18.1
20.5
20.5
19.1
19.7
42 Corporate profits
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment
282.3
224.3
-1.7
59.7
298.9
236.4
8.3
54.2
310.4
276.7
-18.0
51.7
322.0
289.4
-19.5
52.1
316.1
281.9
-18.2
52.4
316.2
286.2
-19.4
49.4
326.5
305.9
-27.4
48.0
330.0
313.9
-29.3
45.4
46 Net interest
319.0
331.9
353.6
358.3
369.5
373.9
380.6
396.2
1
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7
Fixed investment
Nonresidential
8
9
Structures
Producers' durable equipment
10
Residential structures
11
12
13
Change in business inventories
Nonfarm
By major type of product
70 Final sales, total
71
Goods
Durable
7?
73
Nondurable
74
Services
Structures
25
7.6 Change in business inventories
27
Durable goods
Nondurable goods
28
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
38 Proprietors'income 1
39
Business and professional
40
Farm 1
41 Rental income of persons 2
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).
A54 Domestic Nonfinancial Statistics • February 1989
2.17
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1987
Account
1985
1986
1988
1987
Q3
Q4
Q1
Q2
Q3 R
PERSONAL INCOME AND SAVING
1 Total personal income
3,325.3
3,531.1
3,780.0
3,801.0
3,906.8
3,951.4
4,022.4
4,094.0
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
3
Distributive industries
6
Service industries
1,975.4
608.9
460.9
473.2
521.3
372.0
2,094.0
625.5
473.1
498.9
575.9
393.7
2,248.4
649.8
490.3
531.7
646.8
420.1
2,265.1
652.8
492.6
536.8
652.4
423.0
2,325.1
665.5
501.3
547.3
682.8
429.5
2,358.7
676.0
509.6
558.2
687.4
437.1
2,410.0
689.1
517.4
572.1
705.9
442.9
2,462.0
701.3
525.9
585.8
725.8
449.1
187.6
255.9
225.6
30.2
9.2
78.7
478.0
489.8
253.4
196.1
286.7
250.3
36.4
12.4
82.8
499.1
521.1
269.3
207.9
312.9
270.0
43.0
18.4
88.6
527.0
548.8
282.9
209.3
306.8
271.5
35.2
18.1
89.9
533.0
551.7
284.5
212.4
326.0
279.0
47.0
20.5
91.9
550.0
556.8
286.5
214.6
323.9
279.2
44.7
20.5
93.5
554.2
576.3
298.1
216.5
328.8
285.3
43.4
19.1
95.0
563.7
582.8
300.4
219.5
321.6
290.7
30.9
19.7
97.3
581.9
588.6
303.1
7
8
9
10
11
12
13
14
15
16
17
Government and government enterprises
Other labor income
Proprietors' income 1
Business and professional
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
149.3
161.1
172.0
172.7
175.9
190.2
193.5
196.7
3,325.3
3,531.1
3,780.0
3,801.0
3,906.8
3,951.4
4,022.4
4,094.0
486.6
511.4
570.3
576.2
591.0
575.8
601.0
586.5
2,838.7
3,019.6
3,209.7
3,224.9
3,315.8
3,375.6
3,421.5
3,507.5
LESS: Personal outlays
2,713.3
2,898.0
3,105.5
3,152.3
3,171.8
3,225.7
3,293.6
3,361.8
22 EQUALS: Personal saving
125.4
121.7
104.2
72.6
144.0
149.9
127.8
145.7
15,120.6
9,839.4
10,625.0
4.4
15,401.2
10,160.1
10,929.0
4.0
15,770.0
10,334.3
11,012.0
3.2
15,834.9
10,426.8
10,989.0
2.3
16,031.8
10,346.1
11,145.0
4.3
16,127.6
10,435.4
11,260.0
4.4
16,213.1
10,492.2
11,237.0
3.7
16,265.3
10,563.1
11,362.0
4.2
27 Gross saving
533.5
537.2
560.4
556.8
603.4
627.0
634.1
665.4
2 8 Gross private saving
29 Personal saving
30 Undistributed corporate profits'
665.3
125.4
102.6
-1.7
681.6
121.7
104.1
8.3
665.3
104.2
81.1
-18.0
642.2
72.6
85.0
-19.5
714.1
144.0
80.5
-18.2
726.3
149.9
78.1
-19.4
711.2
127.8
80.1
-27.4
732.9
145.7
79.5
-29.3
268.6
168.7
282.4
173.5
297.5
182.5
299.7
184.9
303.7
185.8
309.8
188.5
313.3
189.9
316.8
190.9
-131.8
-196.9
65.1
-144.4
-205.6
61.2
-104.9
-157.8
52.9
-85.5
-138.3
52.9
-110.7
-160.4
49.7
-99.2
-155.1
55.8
-77.1
-133.3
56.2
-67.5
-123.5
56.0
2 0 EQUALS: Disposable personal income
21
MEMO
Per capita (1982 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
i l Corporate inventory valuation adjustment
Capital consumption
allowances
32 Corporate
33 Noncorporate
34
35
36
Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
528.7
523.6
552.3
541.7
597.0
612.0
629.0
651.4
643.1
-114.4
665.9
-142.4
712.9
-160.6
702.8
-161.1
764.9
-167.8
763.4
-151.3
758.1
-129.1
772.5
-121.1
-4.8
-13.6
-8.1
-15.1
-6.4
-15.0
-5.1
-14.0
SOURCE. Survey of Current Business
(Department of Commerce).
Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1987
Item credits or debits
1985
1986
1988
1987
Q3
Q4
Ql
Q2
Q3"
-33,523
-31,803
-41,192
68,013
-109,205
-1,261
12,539
479
-828
-3,545
-36,938
-32,179
-35,184
75,300
-110,484
-1,033
1,159
1,241
-882
-2,239
-33,739
-34,606
-30,151
79,606
-109,757
-914
-1,940
2,017
-793
-1,958
-30,894
-37,029
-28,533
82,306
-110,839
-934
-337
2,028
-806
-2,312
-115,102
-138,827
-153,964
-122,148
215,935
-338,083
-3,431
25,936
-449
-3,786
-11,223
-144,547
223,969
-368,516
-4,372
23,143
2,257
-3,571
-11,738
-160,280
249,570
-409,850
-2,369
20,374
1,755
-3,434
-10,011
-41,967
-47,330
-39,665
64,902
-104,567
-851
1,067
87
-855
-2,125
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-2,829
-2,000
1,162
252
1,012
-814
-801
1,931
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
-3,858
0
-897
908
-3,869
312
0
-246
1,500
-942
9,149
0
-509
2,070
7,588
32
0
-210
407
-165
3,741
0
-205
722
3,225
1,503
0
155
446
901
39
0
180
69
-210
-7,380
0
-35
202
-7,547
17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net
-25,949
-1,323
923
-7,481
-18,068
-96,303
-59,975
-4,220
-4,297
-27,811
-86,298
-40,531
3,145
-4,456
-44,456
-25,576
-16,519
-215
-972
-7,870
-43,645
-23,460
1,248
-1,757
-19,676
5,903
17,108
-315
-4,467
-6,423
-18,210
-13,274
-7,061
1,529
596
-34,181
-27,023
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
^
26 Other U.S. liabilities reported by U.S. banks 3
27 Other foreign official assets
-1,196
-838
-301
767
645
-1,469
35,507
34,364
-1,214
2,054
1,187
-884
44,968
43,361
1,570
-2,824
3,901
-1,040
611
842
714
-287
-34
-624
20,047
19,243
662
108
-223
257
24,670
27,701
-121
-123
-1,954
-833
5,946
5,863
202
-570
868
-417
-2,902
-3,706
572
-354
1,094
-508
28 Change in foreign private assets in the United States
(increase, +)
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in the United States, net
131,096
41,045
-366
20,433
50,962
19,022
185,746
79,783
-2,906
3,809
70,969
34,091
166,521
87,778
2,150
-7,596
42,213
41,976
71,047
46,153
-116
-2,835
12,819
15,026
36,025
29,764
-1,000
4%
-4,977
11,742
1,395
-17,233
2,015
6,887
2,379
7,347
59,549
31,121
113
5,457
9,797
13,061
50,928
30,434
0
17,839
0
15,566
0
18,461
0
-4,399
-4,658
0
16,342
3,138
0
4,282
3,747
0
-12,784
-3,585
0
22,498
-5,205
17,839
15,566
18,461
259
13,204
535
-9,199
27,703
1 Balance on current account
2 Not seasonally adjusted
3 Merchandise trade balance
4
Merchandise exports
Merchandise imports
5
6 Military transactions, net
7 Investment income, net
Other service transactions, net
8
9 Remittances, pensions, and other transfers
10 U.S. government grants (excluding military)
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
-1,521
-5,637
4,322
8,043
8,129
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States (increase, +)
excluding line 25
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
-3,858
312
9,149
32
3,741
1,503
39
-7,380
-1,963
33,453
47,792
898
19,939
24,793
6,516
-2,548
-6,709
-9,327
-9,956
-1,723
-2,750
-1,375
-1,783
-423
46
101
58
13
12
45
4
5
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
Business (Department of Commerce).
A56 International Statistics: • February 1989
3.11
U.S. FOREIGN TRADE1
Millions of dollars; monthly data are not seasonally adjusted.
1988
Item
1985
1986
1987
Apr.
1
May
June
July
Aug.
Sept/
Oct.
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
218,815
227,159
254,122
26,335
28,143
26,839
25,098
26,538
27,237
28,477
2
3
G E N E R A L IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
C.I.F. value
Customs value
352,463
345,276
382,295
365,438
424,442
406,241
36,528
35,027
37,657
36,147
40,158
38,590
37,084
35,583
39,370
37,741
37,935
36,459
40,229
38,685
4
5
Trade balance
C.I.F. value
Customs value
-133,648
-132,129
-155,137
-138,279
-170,320
-152,119
-10,193
-8,692
-9,514
-8,004
-13,319
-11,751
-11,986
-10,485
-12,832
-11,203
-10,698
-9,223
-11,752
-10,208
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise T r a d e "
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1988
Type
1985
1986
May
June
July
Aug.
Sept.
Oct.
Nov."
1
Total
43,186
48,511
45,798
41,949
41,028
43,876
47,778
47,788
50,204
48,944
2
Gold stock, including Exchange
Stabilization Fund
11,090
11,064
11,078
11,063
11,063
11,063
11,061
11,062
11,062
11,059
3
Special drawing rights '
7,293
8,395
10,283
9,543
9,180
8,984
9,058
9,074
9,464
9,785
4
Reserve position in International Monetary Fund
11,947
11,730
11,349
10,431
9,992
9,773
9,642
9,637
10,075
10,103
5
Foreign currencies
12,856
17,322
13,088
10,912
10,793
14,056
18,017
18,015
19,603
17,997
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 trey ounce.
2. Beginning July 1974, the I M F 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 holdiings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1988
Assets
1985
1986
1987
May
1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold
July
Aug.
Sept.
Oct.
Nov.p
480
287
244
297
381
269
230
338
301
251
121,004
14,245
155,835
14,048
195,126
13,919
226,341
13,654
223,127
13,662
223,2%
13,666
221,715
13,658
221,119
13,653
226,533
13,637
229,926
13,640
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
June
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.
Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS
A57
Balance Sheet Data1
Millions of dollars, end of period
1988
Asset account
1985
1986
1987
Apr.
May
June
July
Aug.
Sept.
Oct."
All foreign countries
1 Total, all currencies
2 Claims on United States
Parent bank
3
4
Other banks in United States
5 Nonbanks
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
10
Nonbank foreigners
458,012
456,628
518,618
488,939
492,844
487,677
488,283
487,895
490,582
493,728
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839
114,563
83,492
13,685
17,386
312,955
96,281
105,237
23,706
87,731
138,034
105,845
16,416
15,773
342,520
122,155
108,859
21,832
89,674
139,176
102,957
13,332
22,887
314,348
103,090
101,233
20,827
89,198
141,790
104,299
14,625
22,866
315,302
102,931
103,427
20,991
87,953
140,932
104,405
14,424
22,103
311,308
106,722
100,669
20,438
83,479
147,662
109,929
15,954
21,779
305,556
103,646
99,660
19,276
82,974
157,021
117.525
16,176
23,320
295,270
98,299
98,982
18,709
79,280
155,386
115,286
16,121
23,979
298,466
102,355
98,563
18,444
79,104
155,281
115,954
14,593
24,734
301,105
100,609
102,208
18,205
80,083
22,630
29,110
38,064
35,415
35,752
35,437
35,065
35,604
36,730
37,342
12 Total payable in U.S. dollars
336,520
317,487
350,107
327,736
334,112
334,990
336,233
342,906
340,901
337,346
13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20
Public borrowers
21
Nonbank foreigners
116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274
110,620
82,082
12,830
15,708
195,063
72,197
66,421
16,708
39,737
132,023
103,251
14,657
14,115
202,428
88,284
63,707
14,730
35,707
133,289
100,320
12,318
20,651
179,722
75,654
54,588
14,407
35,073
136,078
101,578
13,600
20,900
182,980
76,136
57,102
14,342
35,400
135,348
101,422
13,661
20,265
183,568
79,774
55,234
13,851
34,709
141,415
106,792
14,434
20,189
179,076
78,071
54,189
13,247
33,569
151,581
114,943
14,901
21,737
174,433
73,792
54,839
12,933
32,869
149,764
112,621
14,687
22,456
174,27!r
76,506
52,503
12,770
32,492r
149,562
113,569
13,114
22,879
171,717
73,508
54,793
12,616
30,800
9,753
11,804
15,656
14,725
15,054
16,074
15,742
16,892
16,866
16,067
11 Other assets
22 Other assets
United Kingdom
23 Total, all currencies
148,599
140,917
158,695
152,592
156,184
151,835
151,017
149,646
147,329
155,580
24 Claims on United States
25
Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628
32,518
27,350
1,259
3,909
115,700
39,903
36,735
4,752
34,310
31,618
26,155
1,013
4,450
112,261
33,019
38,790
4,914
35,538
32,832
27,506
1,360
3,966
114,452
33,849
39,883
4,987
35,733
33,852
28,535
1,322
3,995
107,856
32,446
37,108
4,742
33,560
35,708
30,615
1,064
4,029
105,594
30,228
37,805
4,665
32,896
36,307
30,767
1,197
4,343
103,527
29,656
38,259
4,543
31,069
32,048
26,661
1,238
4,149
105,824
31,758
38,848
4,250
30,968
36,210
30,569
994
4,647
109,793
33,103
40,236
4,190
32,264
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
Nonbank foreigners
43
44 Other assets
5,225
6,810
10,477
8,713
8,900
10,127
9,715
9,812
9,457
9,577
108,626
95,028
100,574
93,214
97,188
95,326
94,492
96,767
93,790
99,868
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
30,439
26,304
1,044
3,091
64,560
28,635
19,188
3,313
13,424
29,555
25,137
781
3,637
59,434
24,867
18,065
3,412
13,090
30,736
26,608
1,068
3,060
62,018
25,448
19,555
3,252
13,763
31,855
27,672
1,069
3,114
57,969
23,843
17,477
3,188
13,461
33,795
29,706
870
3,219
55,832
22,549
18,025
3,133
12,125
34,535
29,837
1,039
3,659
57,037
22,465
19,165
3,105
12,302
30,116
25,692
910
3,514
58,474
24,472
19,066
3,022
11,914
34,134
29,667
606
3,861
61,034
25,703
20,488
2,984
11,859
3,059
3,697
5,575
4,225
4,434
5,502
4,865
5,195
5,200
4,700
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
Other banks in United States
48
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53 Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
142,055
142,592
160,321
152,930
156,353
159,718
160,516
165,771
164,313
155,265
74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190
78,048
54,575
11,156
12,317
60,005
17,296
27,476
7,051
8,182
85,318
60,048
14,277
10,993
70,162
21,277
33,751
7,428
7,706
88,283
59,240
11,470
17,573
58,818
17,790
26,700
6,849
7,479
90,896
60,419
12,489
17,988
59,374
18,463
27,019
6,955
6,937
88,116
58,579
12,236
17,301
65,855
24,745
27,650
6,835
6,625
92,308
61,397
13,863
17,048
62,508
22,797
26,120
6,457
7,134
99,090
67,034
13,907
18,149
60,822
20,789
26,866
6,185
6,982
99,541
66,607
13,878
19,056
57,887
20,320
24,545
6,219
6,803
94,301
62,709
12,353
19,239
54,630
17,331
25,463
6,045
5,791
3,309
4,539
4,841
5,829
6,083
5,747
5,700
5,859
6,885
6,334
136,794
136,813
151,434
145,398
148,545
152,219
152,685
157,975
156,409
147,481
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
A58 International Statistics: • February 1989
3.14—Continued
Liability account
1985
1986
Apr.
May
June
July
Aug.
Sept.
All foreign countries
57 Total, all currencies
458,012
456,628
518,618
488,939
492,844
487,677
488,283
487,895
490,582
493,728
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
34,607
156,281
84,657
16,894
54,730
31,629
152,465
83,394
15,646
53,425
30,929
161,390
87,606
20,559
53,225
31,585
155,411
85,543
16,312
53,556
32,175
162,027
86,901
15,423
59,703
29,485
156,294
87,260
14,680
54,354
30,159
159,009
84,196
15,310
59,503
31,203
164,401
88,819
16,356r
59,226r
28,953
165,492
94,953'
14,272'
56,267
27,969
161,783
95,427
14,029
52,327
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
245,939
89,529
76,814
19,520
60,076
21,185
253,775
95,146
77,809
17,835
62,985
18,759
304,803
124,601
87,274
19,564
73,364
21,496
281,132
105,148
85,016
18,005
72,963
20,811
277,082
104,667
82,421
17,699
72,295
21,560
280,939
110,429
82,380
17,159
70,971
20,959
277,776
107,084
83,086
16,628
70,978
21,339
270,678
100,538
80,606
17,232
72,302
21,613
274,822
106,284
80,382
16,911
71,245
21,315
281,143
106,010
81,946
18,786
74,401
22,833
69 Total payable in U.S. dollars . . .
353,712
336,406
361,438
337,122
341,729
341,411
341,539
346,185
348,248
343,233
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
31,063
150,905
81,631
16,264
53,010
28,466
144,483
79,305
14,609
50,569
26,768
148,442
81,783
19,155
47,504
26,596
144,863
79,857
15,115
49,891
27,233
149,645
80,331
14,073
55,241
25,015
144,464
80,752
13,256
50,456
24,870
147,551
77,503
14,011
56,037
26,128
152,745
81,710
15,I53 r
55,882'
24,353
154,647
88,413'
13,153'
53,081
23,218
150,497
88,447
12,868
49,182
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
163,583
71,078
37,365
14,359
40,781
8,161
156,806
71,181
33,850
12,371
39,404
6,651
177,711
90,469
35,065
12,409
39,768
8,517
156,768
76,708
29,844
10,539
39,677
8,895
155,450
76,920
28,635
10,028
39,867
9,401
162,056
83,493
28,909
9,571
40,083
9,876
158,901
81,144
28,495
9,354
39,908
10,217
156,358
75,014
30,041
9,938
41,365
10,954
158,325
79,450
29,341
9,207
40,327
10,923
158,514
78,423
28,831
10,624
40,636
11,004
United Kingdom
81 Total, all currencies
148,599
140,917
158,695
152,592
156,184
151,835
151,017
149,646
147,329
155,580
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
31,260
29,422
19,330
2,974
7,118
27,781
24,657
14,469
2,649
7,539
26,988
23,470
13,223
1,740
8,507
27,090
23,868
14,904
1,508
7,456
27,659
27,145
15,518
2,408
9,219
25,390
25,120
15,996
1,791
7,333
25,750
26,859
16,844
2,051
7,964
26,998
25,013
15,100
1,878
8,035
24,311
25,657
17,115
2,021
6,521
23,345
31,575
22,800
2,192
6,583
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
78,525
23,389
28,581
9,676
16,879
9,392
79,498
25,036
30,877
6,836
16,749
8,981
98,689
33,078
34,290
11,015
20,306
9,548
92,219
27,383
32,970
10,181
21,685
9,415
91,995
28,743
31,995
9,672
21,585
9,385
91,691
28,967
33,125
8,893
20,706
9,634
88,489
26,948
32,763
9,034
19,744
9,919
87,504
25,570
31,829
9,982
20,123
10,131
87,212
26,837
31,701
8,570
20,104
10,149
89,934
25,743
32,385
10,656
21,150
10,726
93 Total payable in U.S. dollars
112,697
99,707
102,550
96,532
99,378
97,555
96,908
97,926
96,970
101,689
94 Negotiable CDs
95 To United States
%
Parent bank
97
Other banks in United States
98
Nonbanks
29,337
27,756
18,956
2,826
5,974
26,169
22,075
14,021
2,325
5,729
24,926
17,752
12,026
1,512
4,214
24,392
20,310
13,947
1,306
5,057
24,994
22,405
14,134
2,184
6,087
22,960
20,889
14,712
1,512
4,665
22,846
23,105
15,729
1,817
5,559
24,229
20,993
13,745
1,655
5,593
22,043
22,177
16,031
1,819
4,327
20,864
28,063
21,665
1,978
4,420
99 To foreigners
100 Other branches of parent bank
101
Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
51,980
18,493
14,344
7,661
11,482
3,624
48,138
17,951
15,203
4,934
10,050
3,325
55,919
22,334
15,580
7,530
10,475
3,953
47,589
18,060
12,889
5,918
10,722
4,241
47,969
18,902
12,860
5,470
10,737
4,010
48,777
20,303
12,957
4,700
10,817
4,929
46,083
18,539
12,240
5,036
10,268
4,874
47,227
17,550
13,501
5,781
10,395
5,477
47,149
18,696
13,417
4,519
10,517
5,601
47,278
17,384
13,436
6,186
10,272
5,484
Bahamas and Caymans
105 Total, all currencies
142,055
142,592
160,321
152,930
156,353
159,718
160,516
165,771
164,313
155,265
106 Negotiable CDs
107 To United States
108
Parent bank
109 Other banks in United States
110
Nonbanks
610
104,556
45,554
12,778
46,224
847
106,081
49,481
11,715
44,885
885
113,950
53,239
17,224
43,487
1,038
109,199
50,576
13,621
45,002
1,096
112,605
51,745
11,659
49,201
941
109,424
52,221
11,451
45,752
940
112,540
49,896
12,069
50,575
731
117,765
54,174
13,412'
50,179'
924
116,687
56,818
11,106
48,763
1,092
107,115
51,522
10,824
44,769
111 To foreigners
112 Other branches of parent bank
113
Banks
114
Official institutions
115 Nonbank foreigners
116 Other liabilities
35,053
14,075
10,669
1,776
8,533
1,836
34,400
12,631
8,617
2,719
10,433
1,264
43,815
19,185
10,769
1,504
12,357
1,671
40,953
19,420
9,162
1,164
11,207
1,740
40,369
18,909
9,080
1,053
11,327
2,283
47,361
24,755
9,779
1,850
10,977
1,992
44,993
22,288
10,155
1,015
11,535
2,043
45,062
21,221
9,607
1,099
13,135
2,213
44,478
22,872
8,405
1,067
12,134
2,224
44,636
23,283
8,154
972
12,227
2,422
117 Total payable in U.S. dollars . . . .
138,322
138,774
152,927
146,134
148,923
151,684
152,235
157,512
156,215
147,718
Summary Statistics
A59
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1988
Item
1986
1987
Apr.
1 Total 1
2
3
4
5
6
7
8
9
10
11
12
May
June
July
Aug.
Sept.
Oct."
211,834
By area
Western Europe
Canada
Latin America and Caribbean
Asia
Other countries
259,517
286,529
294,729
290,842
290,775
290,263'
288,643'
294,431
27,920
75,650
31,838
88,829
29,683
94,974
31,460
%,604
30,761
95,299
31,971
%,645
32,813'
%,698
32,224'
%,812'
33,956
100,804
91,368
1,300
15,5%
122,432
300
16,123
145,929
795
15,148
150,991
499
15,175
149,333
502
14,947
146,971
506
14,682
145,521'
509
14,722
144,082'
513'
15,012'
144,669
516
14,486
88,629
2,004
8,417
105,868
1,503
5,412
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable
,
U.S. securities other than U.S. Treasury securities 5
124,620
4,961
8,328
116,098
1,402
4,147
129,739
8,314
8,520
132,050
1,417
5,993
131,406
9,372
9,145
135,120
1,418
7,773
126,772
10,773
9,407
134,285
1,266
7,837
125,095
10,725
9,818
135,657
1,179
7,793
123,428'
9,981
11,336
136,165'
1,196
7,646
121,249'
10,054'
10,136'
137,513'
1,13c
8,049'
124,609
11,014
9,840
139,447
1,094
7,912
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, end of period
1987
Item
1984
1985
1988
1986
Dec.
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4
Other claims
5 Claims of banks' domestic customers
8,586
11,984
4,998
6,986
569
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
2. Assets owned by customers of the reporting bank located in the United
15,368
16,294
8,437
7,857
580
29,702
26,180
14,129
12,052
2,507
Mar.
June
Sept.
55,075
50,663
18,253
32,410
551
55,457
51,428
17,614
33,814
810
54,046
50,098
16,723
33,375
1,004
61,819
47,730
21,165
26,565
392
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A60 International Statistics: • February 1989
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1988
Holder and type of liability
1985
1986
1987
Apr.
May
June
July
Aug.'
Sept.
Oct."
1 All foreigners
435,726
540,996
618,978
611,031
629,139
637,396
654,760
658,362
658,591
651,436
2 Banks' own liabilities
Demand deposits
3
4
Time deposits
5
Other.
6
Own foreign offices 4
341,070
21,107
117,278
29,305
173,381
406,485
23,789
130,891
42,705
209,100
470,056
22,383
148,444
51,607
247,621
449,324
20,330
134,320
46,018
248,655
465,665
22,181
138,255
48,489
256,741
476,117
22,990
141,553
47,658
263,916
490,660
21,983
142,670
51,244
274,762
494,125
20,314
145,663
52,091
276,057
491,149
21,390
149,347
53,201
267,210
481,989
21,740
141,994
56,664
261,591
94,656
69,133
134,511
90,398
148,923
101,743
161,707
107,881
163,474
108,803
161,279
108,614
164,101
109,555
164,237
109,106
167,442
110,686
169,447
112,257
17,964
7,558
15,417
28,696
16,791
30,388
16,017
37,810
16,595
38,075
16,626
36,039
16,165
38,381
15,970
39,161
15,556
41,200
16,459
40,731
11 Nonmonetary international and regional
organizations
5,821
5,807
4,464
4,575
6,889
7,879
7,036
4,749
7,764
6,077
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other 3
2,621
85
2,067
469
3,958
199
2,065
1,693
2,702
124
1,538
1,040
2,412
67
335
2,010
4,898
84
1,981
2,833
5,142
84
1,873
3,185
4,857
92
1,857
2,908
2,925
85
966
1,874
5,104
104
1,688
3,311
4,265
143
1,299
2,823
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates 6
18 Other negotiable and readily transferable
instruments
19 Other
3,200
1,736
1,849
259
1,761
265
2,163
587
1,991
132
2,737
745
2,179
286
1,824
43
2,660
755
1,812
62
1,464
0
1,590
0
1,497
0
1,564
11
1,852
7
1,989
3
1,861
32
1,769
12
1,899
5
1,750
0
20 Official institutions9
79,985
103,569
120,667
124,657
128,065
126,060
128,616
129,511
129,036
134,760
21 Banks' own liabilities
22
Demand deposits
23 Time deposits
24
Other 3
20,835
2,077
10,949
7,809
25,427
2,267
10,497
12,663
28,703
1,757
12,843
14,103
26,623
1,498
11,753
13,372
28,451
1,882
12,860
13,709
27,882
1,834
11,864
14,184
28,386
1,6%
11,464
15,226
29,079
1,405
12,289
15,385
28,725
1,756
11,613
15,356
30,203
1,776
11,134
17,293
25 Banks' custody liabilities5
26
U.S. Treasury bills and certificates 6
27
Other negotiable and readily transferable
instruments
28
Other
59,150
53,252
78,142
75,650
91,965
88,829
98,033
94,974
99,613
96,604
98,178
95,299
100,230
96,645
100,432
%,698
100,311
96,812
104,557
100,804
5,824
75
2,347
145
2,990
146
2,939
120
2,775
234
2,672
207
3,368
217
3,450
284
3,221
279
3,612
141
275,589
351,745
414,181
401,743
413,460
423,396
436,310
439,668
437,288
424,849
252,723
79,341
10,271
49,510
19,561
173,381
310,166
101,066
10,303
64,232
26,531
209,100
371,651
124,030
10,898
79,787
33,345
247,621
353,971
105,315
9,153
68,098
28,065
248,655
365,512
108,771
10,260
69,616
28,895
256,741
375,093
111,177
10,898
72,612
27,668
263,916
387,456
112,694
10,217
73,186
29,291
274,762
390,553
114,495
9,258
74,374
30,864
276,057
385,283
118,073
9,349
78,313
30,411
267,210
374,246
112,655
10,233
70,679
31,743
261,591
36 Banks' custody liabilities5
37
U.S. Treasury bills and certificates 6
38
Other negotiable and readily transferable
instruments
39 Other
22,866
9,832
41,579
9,984
42,530
9,134
47,772
8,889
47,948
8,872
48,303
9,212
48,854
9,394
49,116
9,299
52,005
9,888
50,603
7,976
6,040
6,994
5,165
26,431
5,392
28,004
4,637
34,245
4,341
34,735
4,725
34,365
4,625
34,835
4,090
35,727
4,224
37,893
5,265
37,362
40 Other foreigners
74,331
79,875
79,666
80,056
80,726
80,061
82,800
84,433
84,503
85,749
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 3
64,892
8,673
54,752
1,467
66,934
11,019
54,097
1,818
67,000
9,604
54,277
3,119
66,318
9,612
54,134
2,571
66,804
9,955
53,798
3,051
67,999
10,173
55,204
2,622
69,%1
9,979
56,163
3,819
71,568
9,566
58,033
3,969
72,037
10,181
57,733
4,123
73,274
9,588
58,882
4,805
9,439
4,314
12,941
4,506
12,666
3,515
13,739
3,430
13,922
3,196
12,062
3,358
12,839
3,231
12,865
3,066
12,466
3,231
12,475
3,414
4,636
489
6,315
2,120
6,914
2,238
6,876
3,433
7,628
3,099
7,241
1,464
6,311
3,297
6,661
3,137
6,212
3,023
5,832
3,228
9,845
7,496
7,314
7,480
8,261
7,711
6,975
6,792
6,121
6,236
7 Banks' custody liabilities5
8
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
9
instruments 7
10 Other
29 Banks
10
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits 2
34
Other 3
35
Own foreign offices 4
45 Banks' custody liabilities5
46
U.S. Treasury bills and certificates 6
47
Other negotiable and readily transferable
instruments
48
Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
Internationa! Settlements.
10. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
Data
3.17—Continued
1988
Area and country
1985
1986
1987
Apr.
May
June
July
Aug.
Sept.
Oct."
1 Total
435,726
540,996
618,978
611,031
629,139
637,396
654,760
658,362'
658,591
651,436
2 Foreign countries
429,905
535,189
614,514
606,456
622,250
629,517
647,725
653,612r
650,827
645,358
164,114
693
5,243
513
496
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523
180,556
1,181
6,729
482
580
22,862
5,762
700
10,875
5,600
735
699
2,407
884
30,534
454
85,334
630
3,326
80
702
234,641
920
9,347
760
377
29,835
7,022
689
12,073
5,014
1,362
801
2,621
1,379
33,766
703
116,852
710
9,798
32
582
218,515
1,162
9,629
1,034
504
27,015
6,878
656
10,040
5,154
1,101
917
2,415
1,692
30,523
518
109,547
566
8,473
44
648
227,867
1,090
9,893
1,164
478
28,193
6,487
675
9,285
5,757
1,240
910
2,839
2,280
31,293
628
115,439
586
9,038
136
456
227,626
941
10,363
1,364
426
26,975
5,105
653
10,695
5,351
1,078
897
4,168
1,522
31,226
570
115,521
690
9,230
239
611
231,170
1,412
9,494
1,474
549
26,002
5,211
620
9,361
5,560
1,330
859
5,011
1,926
30,451
537
121,895
614
8,135
81
648
232,796'
1,245'
10,051'
2,078
417
24,237'
6,226
694
9,766
5,647'
900
848
5,570'
2,011
29,274'
709
122,620'
629
9,232'
99'
544'
224,723
1,072
9,997
1,402
447
24,295
5,085
633
8,550
6,168
1,060
858
6,248
2,196
31,894
706
113,287
579
9,643
45
559
226,068
1,370
10,227
2,358
339
23,285
5,849
707
12,511
5,777
1,143
915
6,838
1,579
31,222
963
109,889
655
9,633
100
709
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
'/
Finland
8
France
9
Germany
10 Greece
11
Italy
12 Netherlands
13 Norway
14 Portugal
15
Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
21
Other Western Europe
22
U.S.S.R
23
Other Eastern Europe
24 Canada
17,427
26,345
30,095
27,011
27,890
30,051
29,944
28,128
28,247
26,697
167,856
6,032
57,657
2,765
5,373
42,674
2,049
3,104
11
1,239
1,071
122
14,060
4,875
7,514
1,167
1,552
11,922
4,668
210,318
4,757
73,619
2,922
4,325
72,263
2,054
4,285
7
1,236
1,123
136
13,745
4,970
6,886
1,163
1,537
10,171
5,119
220,399
5,006
74,676
2,344
4,005
81,612
2,210
4,204
12
1,082
1,082
160
14,480
4,975
7,414
1,275
1,582
9,048
5,234
225,708
5,307
69,975
2,402
3,992
92,534
2,251
3,843
13
1,174
1,209
209
15,347
5,345
4,059
1,424
1,745
9,564
5,313
229,829
5,219
73,990
2,927
4,122
91,601
2,184
4,395
9
1,206
1,191
152
15,866
5,348
4,005
1,423
1,717
9,255
5,219
232,760
5,876
74,034
2,077
4,205
94,311
2,378
4,502
10
1,212
1,209
156
15,801
5,338
4,171
1,438
1,882
8,950
5,209
242,674
5,975
75,910
2,413
4,489
101,378
2,323
4,441
9
1,216
1,183
154
16,334
4,798
4,251
1,514
1,828
9,116
5,343
246,604'
6,775
78,810
2,394'
4,563'
99,827'
2,463'
4,403
8
1,224
1,182
149
17,260
5,011
4,262
1,538'
1,899'
9,330
5,504'
246,945
7,106
77,921
2,389
4,475
101,939
2,467
4,171
9
1,244
1,177
166
15,818
5,252
4,128
1,584
1,884
9,752
5,461
240,923
7,065
76,805
2,562
4,720
96,625
2,727
4,136
12
1,265
1,150
177
15,671
5,328
4,114
1,669
1,788
9,547
5,560
72,280
108,831
121,364
125,653
125,750
128,100
134,003
136,293
140,768
141,914
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
1,476
18,902
9,393
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,058
1,162
21,503
10,180
582
1,404
1,292
54,398
1,637
1,085
1,345
13,988
12,788
1,814
23,982
9,635
675
1,063
1,292
58,576
1,574
1,015
1,181
12,639
12,207
1,921
23,874
10,214
619
1,036
1,190
58,151
1,476
975
1,448
12,413
12,434
1,725
23,072
9,255
942
1,075
1,334
60,916
1,572
954
1,099
12,089
14,066
1,564
24,023
9,951
858
1,036
1,244
63,529
1,459
1,085
1,650
14,298
13,305
1,757
23,422
10,417
845'
1,255
1,194
65,001
1,720
1,00!
1,422
12,787'
15,472
1,608
22,334
10,875
1,013
1,126
1,130
70,188
2,091
971
2,288
14,091
13,053
1,479
23,377
11,487
838
1,290
2,322
70,341
2,574
1,140
1,363
13,200
12,503
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 4
Other
63
4,883
1,363
163
388
163
1,494
1,312
4,021
706
92
270
74
1,519
1,360
3,945
1,151
194
202
67
1,014
1,316
3,878
1,218
68
195
82
1,008
1,307
4,055
1,196
65
267
63
1,090
1,373
4,023
1,187
73
245
60
1,111
1,348
3,837
1,039
80
200
63
1,052
1,403
3,846
969
70
204
67
1,039
1,498
3,659
813
111
247
71
1,015
1,402
3,702
850
66
245
71
993
1,477
64 Other countries
65
Australia
66
All other
3,347
2,779
568
5,118
4,196
922
4,070
3,327
744
5,689
4,885
804
6,859
5,943
916
6,957
6,017
939
6,098
5,329
769
5,945
5,170
775
6,484
5,640
845
6,054
5,199
854
67 Nonmonetary international and regional organizations
68
International
69
Latin American regional
70
Other regional
5,821
4,806
894
121
5,807
4,620
1,033
154
4,464
2,830
1,272
362
4,575
2,691
1,528
356
6,889
4,955
1,727
207
7,879
5,925
1,769
185
7,036
5,105
1,651
279
4,749
2,979
1,614
156
7,764
5,721
1,762
281
6,077
4,110
1,662
306
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries
Other
45
46
47
48
49
50
51
52
53
54
55
56
1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. Comprises Bulgaria, Czechoslovakia, the German Democratic Republic,
Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Excludes "holdings of dollars" of the International Monetary Fund.
6. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A61
A62 International Statistics: • February 1989
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Area and country
1985
1986
1987
Apr.
May
June
July
Aug.
Sept.
Oct."
1 Total
401,608
444,745
459,706
432,679
450,678
459,411
471,697
471,536r
483,467
464,679
2 Foreign countries
400,577
441,724
456,302
431,317
449,532
456,866
468,541
468,274r
476,448
461,303
106,413
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566
1,964
998
130
1,107
107,823
728
7,498
688
987
11,356
1,816
648
9,043
3,296
672
739
1,492
1,964
3,352
1,543
58,335
1,835
539
345
948
102,375
793
9,397
717
1,010
13,553
2,039
463
7,460
2,624
934
477
1,858
2,269
2,719
1,680
50,819
1,700
619
389
852
93,507
893
8,792
612
993
10,885
1,610
513
6,201
2,865
650
439
1,766
2,347
2,452
1,733
47,319
1,618
573
377
866
100,484
865
8,724
630
1,103
12,147
1,719
558
6,606
2,766
886
400
1,911
2,480
3,093
1,543
51,679
1,586
598
339
851
100,925
806
7,863
640
954
12,184
2,840
590
7,072
2,656
589
358
1,867
2,087
3,274
1,495
52,084
1,624
647
506
787
99,705
888
8,530
743
1,325
11,861
2,153
563
6,607
3,017
484
333
1,978
1,958
2,486
1,432
51,885
1,559
671
431
800
99,205r
743
8,419'
608r
1,231
11,963
1,976r
524
6,626
2,938
534
321
2,016
2,256
2,559
1,397
51,728
1,537
524r
466
838r
102,632
808
8,846
582
1,195
12,164
1,718
521
6,117
3,202
510
333
1,969
1,968
2,560
1,396
54,829
1,494
860
503
1,056
106,240
812
8,907
536
913
12,338
2,290
494
6,040
3,182
535
266
1,766
1,852
2,919
1,353
57,873
1,472
1,156
724
813
3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
Finland
7
8
France
9
Germany
10 Greece
11
Italy
12 Netherlands
13 Norway
14
Portugal
15 Spain
16 Sweden
17
Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
21
Other Western Europe 2
22
U.S.S.R
23
Other Eastern Europe
24 Canada
16,482
21,006
25,288
22,101
23,799
24,639
23,939
24,139'
23,954
22,435
202,674
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799
1,340
6,645
1,947
960
10,871
2,067
208,825
12,091
59,342
418
25,716
46,284
6,558
2,821
0
2,439
140
198
30,698
1,041
5,436
1,661
940
11,108
1,936
214,641
11,996
64,586
471
25,897
49,896
6,308
2,740
1
2,286
144
188
29,532
980
4,744
1,329
968
10,838
1,738
200,220
12,288
54,625
669
26,042
48,212
6,132
2,721
1
2,883
141
212
27,296
1,304
2,749
1,283
913
10,944
1,805
203,941
12,297
59,251
369
26,119
48,873
6,018
3,082
0
2,197
149
177
26,679
1,434
2,566
1,297
880
10,833
1,719
203,208
12,365
56,722
818
26,230
51,140
5,881
3,095
0
2,142
144
187
26,177
1,238
2,492
1,149
885
10,912
1,631
206,547
12,359
62,333
460
26,041
49,745
5,778
3,127
0
2,146
157
214
26,017
1,055
2,400
1,136
878
11,016
1,686
208,513'
12,238'
65,702'
4 ^
25,909'
48,970'
5,677'
3,029
0
2,156'
148
184
25,885'
1,269
2,369
1,192'
920
10,794'
1,649'
213,973
12,235
65,451
688
25,660
55,105
5,656
3,023
0
2,185
150
185
25,963
1,079
2,233
1,080
891
10,753
1,636
199,202
12,077
58,444
586
25,886
47.405
5,459
3,016
0
2,168
175
201
25,637
1,500
2,304
1,065
850
10,720
1,709
66,212
96,126
106,025
108,395
113,797
120,120
130,443
128,615'
128,259
124,970
639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
787
2,681
8,307
321
723
1,634
59,674
7,182
2,217
578
4,122
7,901
968
4,577
8,216
510
580
1,363
68,628
5,127
2,071
496
4,858
8,633
1,135
3,812
6,343
542
643
1,284
75,166
4,781
1,959
516
4,077
8,136
841
3,805
8,356
507
631
1,259
78,638
4,886
2,012
596
3,541
8,725
1,065
3,957
9,632
499
695
1,213
82,361
4,987
2,055
641
4,573
8,441
1,033
3,562
8,342
508
688
1,206
93,093
4,882
2,029
668
6,400
8,031
1,017'
3,241
7,451
548
703
1,174
92,806
4,853'
2,030
683
6,215'
7,891
1,180
2,829
8,440
540
738
1,180
90,599
5,126
2,009
759
6,400
8,462
928
2,940
9,431
634
739
1,170
87,652
5,134
1,912
766
5,407
8,257
57 Africa
58
Egypt
59
Morocco
South Africa
60
61
Zaire
62
Oil-exporting countries
63
Other
5,407
721
575
1,942
20
630
1,520
4,650
567
598
1,550
28
694
1,213
4,742
521
542
1,507
15
1,003
1,153
4,879
483
495
1,439
47
1,138
1,276
5,092
503
483
1,496
42
1,244
1,324
5,423
605
484
1,693
41
1,275
1,325
5,493
539
481
1,726
38
1,340
1,369
5,462
530
478'
1,711'
36
1,359'
1,348
5,462
535
478
1,702
16
1,388
1,343
5,722
540
474
1,706
17
1,484
1,501
64 Other countries
65
Australia
66
Allother
3,390
2,413
978
3,294
1,949
1,345
3,230
2,191
1,039
2,216
1,360
856
2,419
1,413
1,006
2,551
1,678
873
2,414
1,554
860
2,341'
1,499
842
2,167
1,392
775
2,735
1,876
859
67 Nonmonetary international and regional
organizations
1,030
3,021
3,404
1,362
1,147
2,545
3,156
3,262'
7,019
3,376
25 Latin America and Caribbean
26
Argentina
Bahamas
27
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
Cuba
33
34
Ecuador
35
Guatemala 4
36 Jamaica 4
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
44
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries
Other Asia
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers..
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Type of claim
1985
1986
1987
Apr.
May
432,679
61,173
211,576
117,539
55,984
61,555
42,391
450,678
61,276
225,498
122,447
57,502
64,945
41,458
June
July
Aug/
471,697
63,212
240,342
127,181
59,769
67,413
40,962
471,536
62,532
238,627
128,305
60,281
68,024
42,072
Sept.
1 Total
430,489
478,650
497,464
2 Banks' own claims on foreigners
3
Foreign public borrowers
4
Own foreign offices
5
Unaffiliated foreign banks
6
Deposits
7
Other
8
All other foreigners
401,608
60,507
174,261
116,654
48,372
68,282
50,185
444,745
64,095
211,533
122,946
57,484
65,462
46,171
459,706
64,703
224,567
127,573
60,490
67,083
42,863
28,881
3,335
33,905
4,413
37,758
3,692
35,432
4,843
35,801
5,391
19,332
24,044
26,696
24,120
20,916
6,214
5,448
7,370
6,468
9,494
28,487
25,706
23,329
19,618
18,690
38,102
43,974
40,059
Oct."
9 Claims of banks' domestic c u s t o m e r s 3 . . .
11
494,843
459,411
62,711
230,527
123,418
58,806
64,612
42,755
519,268
483,467
65,063
250,332
124,827
61,408
63,419
43,244
464,679
59,959
236,092
122,419
54,896
67,524
46,209
Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States . . . .
43,147
44,425
42,243
46,796 R
49,720
42,635
n.a.
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1987
Maturity; by borrower and area
1984
1985
1988
1986
Dec.
1 ToUl
2
3
4
5
6
7
8
9
10
11
1?
N
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 2
Foreign public borrowers
All other foreigners
Maturity over 1 y e a r
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of over 1 y e a r
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
June
Sept."
243,952
227,903
232,295
235,037
218,843
227,521
229,178
167,858
23,912
143,947
76,094
38,695
37,399
160,824
26,302
134,522
67,078
34,512
32,567
160,555
24,842
135,714
71,740
39,103
32,637
163,895
26,001
137,894
71,142
38,652
32,491
151,998
24,253
127,745
66,845
35,836
31,009
162,874
25,608
137,267
64,647
35,605
29,042
166,739
27,591
139,148
62,439
35,074
27,365
58,498
6,028
62,791
33,504
4,442
2,593
56,585
6,401
63,328
27,966
3,753
2,791
61,784
5,895
56,271
29,457
2,882
4,267
59,068
5,684
56,494
35,938
2,824
3,887
51,464
4,937
55,433
35,505
2,596
2,062
55,169
6,425
56,298
38,965
2,914
3,103
53,896
5,907
55,609
42,327
3,112
5,887
9,605
1,882
56,144
5,323
2,033
1,107
7,634
1,805
50,674
4,502
1,538
926
6,737
1,925
56,719
4,043
1,539
777
6,867
2,661
53,817
3,668
1,747
2,381
6,040
2,239
51,583
3,669
2,201
1,114
5,401
2,337
49,775
3,699
2,429
1,006
5,272
2,070
48,280
4,015
2,261
541
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
Mar.
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
A63
A64 International Statistics: • February 1989
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 12
Billions of dollars, end of period
1986
Area or country
1984
1987
1988
170 J
Sept.
1 Total
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
405.7
385.4
381.6
385.1
394.8
384.6
387.7
381.3
372.3
353.1
359.4
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
146.0
9.2
12.1
10.5
9.6
3.7
2.7
4.4
63.0
6.8
23.9
154.8
8.3
14.5
12.4
7.8
3.9
2.7
4.7
68.8
5.9
25.8
156.6
8.3
13.7
11.6
9.0
4.6
2.4
5.8
71.0
5.3
24.9
162.7
9.1
13.3
12.7
8.6
4.4
3.0
5.8
73.7
5.3
26.9
158.1
8.3
12.5
11.2
7.5
7.3
2.4
5.7
72.1
4.7
26.4
155.2
8.2
13.7
10.5
6.6
4.8
2.6
5.4
72.1
4.7
26.6
159.9
10.1
13.8
12.6
7.3
4.1
2.1
5.6
69.1
5.5
29.8
156.5
9.3
11.5
11.8
7.4
3.3
2.1
5.1
71.3
5.0
29.7
150.5
9.2
10.8
10.6
6.1
3.3
1.9
5.6
69.8
5.4
28.0
150.3
9.5
10.0
8.9
5.9
3.0
2.0
5.2
68.9
5.2
31.7
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
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
29.9
1.5
2.3
1.6
2.6
2.9
1.2
5.8
1.8
2.0
3.2
5.0
28.9
1.7
2.2
1.6
2.3
2.7
1.0
6.7
1.9
1.6
3.0
4.2
25.7
1.7
1.7
1.4
2.3
2.4
.8
5.8
1.8
1.4
3.0
3.5
25.7
1.9
1.7
1.4
2.1
2.2
.8
6.3
1.7
1.4
3.0
3.2
25.2
1.8
1.5
1.4
2.0
2.1
.8
6.1
1.7
1.5
3.0
3.1
25.9
1.9
1.6
1.4
1.9
2.0
.8
7.4
1.5
1.6
2.9
2.9
26.3
1.9
1.7
1.3
2.0
2.3
.5
8.0
1.6
1.6
2.9
2.5
26.2
1.6
1.4
1.0
2.3
2.0
.4
9.0
1.6
1.9
2.8
2.1
23.7
1.6
1.0
1.2
2.2
2.0
.4
7.2
1.5
1.6
2.8
2.2
22.7
1.6
1.1
1.3
2.1
2.0
.4
6.3
1.3
1.9
2.7
1.8
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30 African countries
24.9
2.2
9.3
3.3
7.9
2.3
21.3
2.1
8.9
3.0
5.3
2.0
19.7
2.2
8.7
2.8
4.4
1.7
19.3
2.2
8.6
2.5
4.3
1.7
20.0
18.8
2.1
2.1
8.5
2.4
5.4
1.6
8.4
2.2
4.4
1.7
19.0
2.1
8.3
2.0
5.0
1.7
17.1
1.9
8.1
1.9
3.6
1.7
17.1
1.9
8.1
1.9
3.6
1.7
16.4
1.8
8.0
1.8
3.1
1.7
17.6
1.8
7.9
1.9
4.3
1.7
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
France
4
5 Germany
6
Italy
Netherlands
7
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12 Japan
31 Non-OPEC developing countries
111.8
104.2
99.1
99.1
100.3
100.5
97.7
97.7
94.0
91.3
87.0
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
8.7
26.3
7.0
2.9
25.7
2.2
3.9
8.8
25.4
6.9
2.6
23.9
1.8
3.4
9.2
25.2
7.1
1.9
23.9
1.5
3.3
9.5
25.2
7.1
2.1
23.8
1.4
3.1
9.5
26.1
7.2
2.0
23.9
1.4
3.0
9.5
25.1
7.2
1.9
25.3
1.3
2.9
9.3
25.1
7.0
1.9
24.8
1.2
2.8
9.4
24.7
6.9
2.0
23.7
1.1
2.7
9.5
23.9
6.6
1.9
22.5
1.1
2.8
9.4
23.7
6.4
2.1
21.1
.9
2.6
9.2
22.4
6.2
2.1
20.6
.8
2.5
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.5
4.5
1.2
1.6
9.2
2.4
5.7
1.4
1.0
.6
4.3
1.3
1.4
7.1
2.1
5.4
1.0
.6
.4
4.9
1.2
1.5
6.6
2.1
5.4
.9
.7
.9
5.5
1.7
1.4
6.2
1.9
5.4
.9
.6
.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.7
.3
6.0
1.9
1.3
5.0
1.6
5.4
.7
.7
.3
8.2
1.9
1.0
4.9
1.5
5.1
.7
.7
.4
6.1
2.1
1.0
5.6
1.5
5.1
1.0
.7
.3
4.9
2.3
1.0
5.9
1.5
4.9
1.1
.8
.3
3.1
2.0
1.0
6.0
1.6
4.5
1.2
.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.2
.8
.1
2.1
1.0
.9
.1
1.9
.7
.9
.1
1.6
.7
.9
.1
1.6
.6
.9
.1
1.4
.6
.9
.1
1.3
.6
.8
.1
1.3
.5
.9
.0
1.3
.5
.9
.1
1.0
.6
.9
.1
1.2
.5
.8
.0
1.2
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
4.4
.1
2.3
2.0
4.1
.1
2.2
1.8
3.3
.1
1.9
1.4
3.2
.1
1.7
1.4
3.0
.1
1.6
1.3
3.3
.3
1.7
1.3
3.3
.5
1.7
1.2
3.0
.4
1.6
1.0
2.9
.3
1.7
.9
3.1
.4
1.7
1.0
3.1
.4
1.7
1.1
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
65.6
21.5
.9
11.8
3.4
6.7
]
62.9
21.2
.7
11.6
2.2
6.0
]
58.3
19.6
.4
11.3
1.8
5.1
J
61.3
22.0
.7
12.4
1.8
4.0
J
62.8
23.8
.8
12.1
1.7
4.2
60.5
19.9
.6
13.9
1.3
3.9
64.3
25.5
.6
12.8
1.2
3.7
54.1
17.1
.6
13.1
1.2
3.7
11.4
9.8
.0
11.4
9.8
.0
10.3
9.7
.0
U.l
9.2
.0
11.4
8.6
.0
12^5
8.3
.0
12.3
.0
11.2
7.0
.0
54.1
18.3
.8
11.7
1.3
3.2
.1
11.3
7.4
.0
45.9
12.1
1.0
10.0
1.2
3.0
.1
11.7
6.8
.0
50.0
17.0
.9
10.6
1.2
2.7
.1
10.6
7.0
.0
66 Miscellaneous and unallocated 7
17.3
16.9
17.3
19.8
20.1
18.1
22.3
23.2
21.5
22.2
28.4
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
8.1
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported Data
A65
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1987
Type, and area or country
1984
1985
1988
1986
June
Sept.
Dec.
Mar.
June
1
29,357
27,825
25,779
29,019
28,669
27,590
28,840
29,299r
2 Payable in dollars
3 Payable in foreign currencies
26,389
2,968
24,2%
3,529
21,980
3,800
24,565
4,454
24,141
4,528
22,253
5,337
23,246
5,594
24,047r
5,252r
By type
4 Financial liabilities
5 Payable in dollars
6
Payable in foreign currencies
14,509
12,553
1,955
13,600
11,257
2,343
12,312
9,827
2,485
14,0%
11,197
2,899
13,034
10,080
2,954
11,574
8,097
3,477
13,066
9,384
3,681
13,009r
9,513r
3,497
7 Commercial liabilities
8 Trade payables
Advance receipts and other liabilities
9
14,849
7,005
7,843
14,225
6,685
7,540
13,467
6,462
7,004
14,923
7,286
7,637
15,635
7,548
8,086
16,016
7,425
8,591
15,774
6,601
9,173
16,29c
6,873r
9,417
13,836
1,013
13,039
1,186
12,153
1,314
13,368
1,555
14,061
1,574
14,156
1,859
13,862
1,912
14,534r
l,755 r
6,728
471
995
489
590
569
3,297
7,700
349
857
376
861
610
4,305
8,079
270
661
368
704
646
5,140
9,713
257
822
402
669
655
6,646
9,298
230
615
505
641
685
6,357
7,794
202
364
583
1,014
493
4,946
8,939
241
365
586
1,013
652
5,900
8,71c
267
330
623
879r
705
5,733
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
863
839
399
441
397
400
467
458
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,086
1,926
13
35
2,103
367
137
3,184
1,123
4
29
1,843
15
3
1,961
614
4
32
1,163
22
0
1,744
398
0
22
1,223
29
2
%1
280
0
22
580
17
3
847
278
0
25
476
13
0
1,195
249
0
23
824
15
2
l,175 r
211
0
19
879r
26
0
27
28
29
Asia
Japan
Middle East oil-exporting countries
1,777
1,209
155
1,815
1,198
82
1,805
1,398
8
2,131
1,751
7
2,300
1,830
7
2,429
2,042
8
2,379
1,987
12
2,591
2,063
11
30
31
Africa
Oil-exporting countries
14
0
12
0
1
1
1
0
2
0
4
1
5
3
2
1
41
50
67
66
76
100
80
73
4,001
48
438
622
245
257
1,095
4,074
62
453
607
364
379
976
4,447
101
352
714
424
387
1,341
4,966
111
423
585
324
557
1,380
4,951
59
437
674
336
556
1,473
5,626
125
451
916
421
559
1,668
5,757
148
441
817
484
529
1,798
5,839'
150
433
798
535
482'
1,850
32
33
34
35
36
37
38
39
Allother
4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,975
1,449
1,405
1,371
1,399
1,301
1,393
1,169
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,871
7
114
124
32
586
636
1,088
12
77
58
44
430
212
924
32
156
61
49
217
216
1,069
13
266
88
67
214
203
1,082
22
252
40
47
231
176
865
19
168
46
19
189
162
937
17
325
59
14
164
85
994'
58r
272
54
28
233
111
48
49
50
Asia
Japan
Middle East oil-exporting countries •
5,285
1,256
2,372
6,046
1,799
2,829
5,091
2,052
1,679
5,919
2,481
1,867
6,511
2,422
2,104
6,573
2,580
1,964
5,899
2,509
1,069
6,270
2,659
1,320
51
52
Africa
Oil-exporting countries
588
233
587
238
619
197
524
166
572
151
574
135
576
159
624
115
53
All other 4
1,128
982
980
1,074
1,119
1,078
1,212
1,394
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A66 International Statistics: • February 1989
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1987
Type, and area or country
1984
1985
1988
1986
June
Sept.
Dec.
Mar.
June
1
29,901
28,876
36,248
33,578
33,209
32,285
31,389
38,476 r
2 Payable in dollars
3 Payable in foreign currencies
27,304
2,597
26,574
2,302
33,850
2,399
30,597
2,981
30,648
2,561
29,192
3,093
29,410
1,979
36,567'
1,909'
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
19,254
14,621
14,202
420
4,633
3,190
1,442
18,891
15,526
14,911
615
3,364
2,330
1,035
26,273
19,916
19,331
585
6,357
5,005
1,352
23,686
16,014
14,775
1,238
7,673
6,391
1,282
22,857
17,286
16,377
908
5,572
4,447
1,124
21,747
15,535
14,089
1,447
6,212
5,099
1,113
20,606
13,205
12,650
555
7,400
6,349
1,051
26,847'
19,808'
19,117'
691
7,039'
6,237'
803
11 Commercial claims
Trade receivables
12
13
Advance payments and other claims
10,646
9,177
1,470
9,986
8,696
1,290
9,975
8,783
1,192
9,892
8,848
1,043
10,352
9,399
953
10,537
9,530
1,007
10,784
9,726
1,057
11,628'
10,571'
1,057'
9,912
735
9,333
652
9,513
462
9,431
461
9,824
528
10,005
533
10,410
373
11,213'
415'
5,762
15
126
224
66
66
4,864
6,929
10
184
223
161
74
6,007
10,744
41
138
116
151
185
9,855
11,468
6
169
%
140
98
10,745
10,785
26
171
103
157
44
10,074
10,666
6
359
72
348
76
9,561
10,340
15
328
85
334
56
9,276
12,495'
15
174
154
333
82'
11,371'
14
13
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
3,988
3,260
4,808
3,712
3,294
3,294
2,840
3,009
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,216
3,306
6
100
4,043
215
125
7,846
2,698
6
78
4,571
180
48
9,291
2,628
6
86
6,078
174
21
7,638
2,589
6
115
4,429
168
20
7,579
3,299
2
113
3,716
174
18
6,831
1,804
7
64
4,439
172
19
6,511
2,268
43
86
3,580
154
35
10,847'
4,121
126
46
6,051'
147
23
31
32
33
Asia
Japan
Middle East oil-exporting countries
961
353
13
731
475
4
1,317
999
7
789
452
6
1,105
737
10
830
550
10
841
673
8
416'
184
6
34
35
Africa
Oil-exporting countries
210
85
103
29
85
28
59
9
71
14
65
7
53
7
61
10
117
21
28
20
24
61
21
20
3,801
165
440
374
335
271
1,063
3,533
175
426
346
284
284
898
3,708
133
414
444
164
217
999
3,845
137
439
526
172
187
1,074
4,120
169
416
550
190
206
1,228
4,132
179
595
560
133
185
1,086
4,135
192
485
629
151
173
1,084
4,900'
159
686'
769'
173
262'
1,300
36
37
38
39
40
41
42
43
All other
4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,021
1,023
934
1,046
1,051
931
1,167
946'
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,052
8
115
214
7
583
206
1,753
13
93
206
6
510
157
1,857
28
193
234
39
412
237
1,727
14
169
204
19
347
204
1,711
12
143
231
20
369
192
1,912
19
159
226
26
366
298
1,963
14
171
215
24
371
322
2,093'
13
174
233
25
399'
344
52
53
54
Asia
Japan
Middle East oil-exporting countries
3,073
1,191
668
2,982
1,016
638
2,755
881
563
2,642
952
452
2,800
1,027
434
2,919
1,160
450
2,867
1,109
412
3,009^
1,168
449
55
56
Africa
Oil-exporting countries'
470
134
437
130
500
139
378
123
407
124
401
144
420
157
423
136
229
257
222
255
262
241
231
257
57
All other
4
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A67
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1988
1988
Transactions, and area or country
1986
1987
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct."
13,205
14,824
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
148,114
129,395
249,113
232,849
157,676
158,661
15,022
13,705
13,654
14,723
20,007
19,678
19,207
18,383
17,275
16,704
11,971
12,552
3 Net purchases, or sales ( - )
18,719
16,264
-985
1,317
-1,069
329
824
572
-581
-1,619
4 Foreign countries
18,927
16,313
-832
1,300
-976
287
793
548
-554
-1,506
9,559
459
341
936
1,560
4,826
816
3,031
976
3,876
3,305
297
373
1,928
905
-74
892
-1,123
630
1,048
1,314
-1,360
12,8%
11,365
123
365
-1,772
-168
301
-506
-1,710
-43
236
1,150
-2,501
1,791
2,197
168
%
481
-1
104
-145
-17
429
241
230
24
372
262
19
-67
-1,151
-153
-66
-43
-247
-711
102
-82
62
106
85
23
-35
33
121
-36
-56
-204
146
-172
-116
-549
1,039
1,187
3
51
227
-34
-3
20
-90
253
58
58
-159
518
475
78
13
287
-21
9
-5
-37
234
162
159
91
-228
-282
41
36
-616
-37
-14
-56
-506
245
44
310
-188
-127
24
5
19
-128
89
106
15
-216
-41
-118
376
-846
-693
-626
5
-102
-208
-48
-153
17
-92
42
31
23
-28
-112
123,169
105,856
70,324
5,618
7,810
8,341
8,277
5,966
7,450
7,585
20 Foreign sales
72,520
78,312
48,175
4,433
3,518
4,590
5,064
4,144
4,953
4,647
21 Net purchases, or sales ( - )
50,648
27,544
22,149
1,185
4,292
3,751
3,213
1,822
2,497
2,938
22 Foreign countries
49,801
26,804
22,730
1,186
4,262
3,569
3,190
1,837
2,433
3,063
2,384
45
65
48
175
1,839
20
198
-45
502
399
4
-1
-124
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle E a s t '
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS 2
19 Foreign purchases
23
24
25
26
77
28
29
30
31
37
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
39,313
389
-251
387
4,529
33,900
548
1,552
-3,113
11,346
9,611
16
139
21,989
194
33
269
1,587
19,770
1,2%
2,857
-1,314
2,021
1,622
16
-61
14,364
260
1,422
829
271
10,744
528
1,616
-476
6,724
5,748
-7
-19
847
740
-581
-54
373
336
4
5
2,256
-18
11
180
152
1,886
98
141
-4
1,755
1,641
-2
17
2,203
15
226
55
-71
1,738
216
174
-124
1,091
1,049
4
5
1,744
-7
8
17
-139
1,685
130
254
-101
1,152
1,035
0
10
1,482
5
166
41
84
1,188
27
193
-87
254
178
1
-33
1,639
90
160
415
97
821
-155
45
-14
916
575
1
1
-1
31
182
23
-14
64
658
7
347
58
-15
228
104
%
36 Nonmonetary international and
regional organizations
Foreign securities
-1,853
1,149
-333
372
905
-154
-126
-257R
-57
-124
49,149
51,002
95,263
94,114
59,644
59,978
5,797
5,425
5,964
5,059
6,404
6,558
7,052
7,178
5,904'
6,161
5,054
5,111
6,071
6,195
4 0 Bonds, net purchases, or sales ( - )
41
Foreign purchases
Foreign sales
42
-3,685
166,992
170,677
7,836
199,010
206,845
-8,849
174,990
183,838
-137
15,593
15,730
873
15,119
14,246
-708
17,013
17,721
-659
19,224
19,882
-509
25,271
25,780
-3,408
20,502
23,910
43 Net purchases, or sales ( - ) , of stocks and bonds
-5,538
-6,687
-9,182
235
1,778
-863
-785
-620'
-566
-3,532
44 Foreign countries
-6,493
-6,718
-9,526
179
1,562
-774
-759
-650'
-547
-3,582
-18,026
-876
3,476
10,858
52
-1,977
-12,088
-4,065
828
9,338
89
-820
-8,231
-3,541
1,448
975
-38
-138
483
-406
538
-407
14
-43
681
-162
322
6%
-1
24
-1,185
-186
301
557
1
-262
-488
-319
-48
237
11
-153
-897'
216
-34
-114
37
143
-446
-730
290
189
28
121
-2,886
-287
-120
130
-189
-230
955
31
343
56
216
-89
-26
30
-19
49
37 Stocks, net purchases, or sales ( - )
38
39
45
46
47
48
49
50
Foreign purchases
Foreign sales
Europe
Canada
Latin America and Caribbean
Africa
Other countries
-363
17,038
17,401
51 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A68 International Statistics: • February 1989
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1988
Country or area
1986
1988
1987
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct.''
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
19,388
25,587
39,475
3,433
11,062
-2,162
905
-383'
-2,686
2 Foreign countries 2
20,491
30,889
37,856
3,728
9,972
-3,337
2,156
-149'
-2,259
155
16,326
-245
7,670
1,283
132
329
4,546
2,613
0
881
23,716
653
13,330
-913
210
1,917
3,975
4,563
-19
4,526
12,184
860
-3,927
-365
-7%
-712
7,953
9,154
17
3,342
2,332
47
1,576
117
-93
344
97
238
5
133
3,108
159
79
-22
104
-309
1,523
1,560
14
1,415
-3,226
-68
-4,241
-796
-232
654
47
1,420
-10
669
-1,460
122
-4,240
312
-187
-51
837
1,755
-9
-314
-836
-209
-2,020
-346
175
344
416
803
0
-315
-1,233
-333
-720
-58
-121
-1,355
2,023
-663
-7
-167
-172
-23
277
53
-162
88
-1,019
614
1
633
926
-96
1,130
-108
1,345
-22
-54
1,067
-2,192
150
-1,142
-1,200
4,488
868
-56
407
287
-109
536
-140
20,065
18,087
3
1,976
75
15
97
-36
713
687
0
475
360
1
-17
376
4,476
2,820
-13
626
-580
2
63
-645
-382
-52
-1
183
0
-2
57
-55
3,246
3,006
-10
694
-312
-128
-292
108
9l¥
1,540'
5
391
269
-17
285
1
-1,351
-2,841
31
193
-574
1
-331
-244
289
622
0
-21
21 Nonmonetary international and regional organizations
International
22
Latin American regional
23
-1,104
-1,430
157
-5,300
-4,387
3
1,617
1,922
-51
-295
-334
0
1,090
1,155
7
1,174
1,546
-38
-1,252
-1,137
-14
-234'
-282
-8
-428
-455
0
2,441
2,365
0
Memo
24 Foreign countries 2
Official institutions
25
26 Other foreign
20,491
14,214
6,283
30,889
31,064
-181
37,856
22,238
15,619
3,728
3,075
653
9,972
5,062
4,910
-3,337
-1,658
-1,678
2,156
-2,362
4,518
-2,259
-40
— 1,450^ -1,439
1,301'
-821
155
587
-431
-1,529
5
-3,142
16
-1,287
1
514
0
-612
0
-201
0
295
0
3 Europe 2
4
Belgium-Luxembourg
5
Germany
6
Netherlands
7
Sweden
Switzerland 2
8
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
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
449
0
-182
0
2,597
-1,023
0
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
A69
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on Dec. 31, 1988
Rate on Dec. 31, 1988
Percent
Aug. 1988
Dec. 1988
Mar. 1981
Dec. 1988
Oct. 1983
Country
Month
effective
4.0
7.5
49.0
11.17
7.0
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Rate on Dec. 31, 1988
Country
Country
Percent
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
7.75
3.5
12.5
2.5
4.5
Month
effective
Dec.
Aug.
Aug.
Feb.
Dec.
1988
1988
1988
1987
1988
Percent
8.0
3.5
June 1983
Dec. 1988
8.0
Norway
Switzerland
„
United Kingdom'
Venezuela
Month
effective
Oct. 1985
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per year, averages of daily figures
1988
Country, or type
1986
1987
1988
June
1
2
3
4
5
6
7
8
9
10
July
Aug.
Sept.
Oct.
Nov.
Dec.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
6.70
10.87
9.18
4.58
4.19
7.07
9.65
8.38
3.97
3.67
7.86
10.28
9.63
4.28
2.94
7.61
8.91
9.44
3.88
2.82
8.09
10.45
9.42
4.88
3.67
8.47
11.29
9.92
5.28
3.57
8.31
12.09
10.48
4.93
3.34
8.51
11.94
10.48
5.03
3.62
8.91
12.23
10.86
4.91
4.10
9.30
13.07
11.15
5.32
4.77
Netherlands
France
Italy
Belgium
Japan
5.56
7.68
12.60
8.04
4.96
5.24
8.14
11.15
7.01
3.87
4.72
7.80
11.04
6.69
3.%
4.10
7.27
10.90
6.04
3.82
4.85
7.32
11.02
6.84
3.84
4.50
7.58
11.02
7.25
3.98
5.51
7.86
11.27
7.39
4.15
5.35
7.87
11.30
7.24
4.26
5.30
8.03
11.48
7.18
4.22
5.60
8.36
11.96
7.38
4.16
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A70
International Statistics • F e b r u a r y 1989
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar
1988
Country/currency
1986
1987
1988
July
1
2
3
4
5
6
2
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/punt 2
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malaysia/rinegit
Netherlands/guilder
New Zealand/dollar 2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound
Aug.
Sept.
Oct.
Nov.
Dec.
67.093
15.260
44.662
1.3896
3.4615
8.0954
70.136
12.649
37.357
1.3259
3.7314
6.8477
78.408
12.357
36.783
1.2306
3.7314
6.7411
80.00
12.991
38.649
1.2075
3.7314
7.0266
80.57
13.281
39.562
1.2237
3.7314
7.2280
79.15
13.135
39.149
1.2267
3.7314
7.1764
80.%
12.777
38.077
1.2055
3.7314
7.0055
85.07
12.307
36.670
1.2186
3.7314
6.7547
85.73
12.359
36.815
1.1962
3.7314
6.7891
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
4.4036
6.0121
1.7981
135.47
7.7985
12.943
148.79
4.1933
5.9594
1.7569
142.00
7.8071
13.899
152.49
4.3896
6.2241
1.8466
147.85
7.8135
14.079
145.49
4.4720
6.3919
1.8880
151.62
7.8050
14.217
142.17
4.4282
6.3515
1.8668
151.47
7.8106
14.490
143.60
4.3041
6.1975
1.8165
148.71
7.8133
14.720
147.30
4.1522
5.9746
1.7491
145.22
7.8095
14.966
152.70
4.1408
5.9994
1.7563
146.10
7.8062
15.019
152.29
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1297.03
144.60
2.5185
2.0263
59.327
6.7408
141.20
1302.39
128.17
2.6189
1.9778
65.558
6.5242
144.26
1367.26
133.02
2.6267
2.0827
66.832
6.7207
150.42
1397.93
133.77
2.6520
2.1319
64.815
6.9016
153.72
1393.15
134.32
2.6643
2.1063
61.480
6.9150
154.18
1353.36
128.68
2.6785
2.0486
62.113
6.7400
150.13
1300.22
123.20
2.6779
1.9729
64.067
6.57%
145.57
1295.61
123.61
2.6935
1.9824
63.621
6.5234
145.56
2.1782
2.2918
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1059
2.0385
825.93
123.54
29.471
6.3468
1.4918
31.756
25.774
163.98
2.0132
2.1900
734.51
116.52
31.847
6.1369
1.4642
28.636
25.312
178.13
2.0459
2.3985
728.67
122.27
31.782
6.3542
1.5343
28.726
25.523
170.51
2.0417
2.4531
725.74
124.122
32.807
6.4878
1.5837
28.693
25.560
169.65
2.0409
2.4575
723.00
124.36
32.953
6.4448
1.5763
28.914
25.548
168.40
2.0202
2.4662
712.72
120.02
32.989
6.2694
1.5372
28.880
25.365
173.87
1.9616
2.3943
696.08
115.17
32.989
6.0%8
1.4675
28.170
25.146
180.85
1.9442
2.3487
687.89
113.73
33.016
6.0888
1.4799
28.199
25.146
182.58
96.94
92.72
96.53
98.29
97.91
95.10
91.91
91.88
MEMO
31 United States/dollar 3
112.22
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.'i (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, vol. 64, August 1978, p. 700).
A71
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTAION
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
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
List Published Semiannually,
with Latest Bulletin
Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
December 1988
Page
All
October 1987
February 1988
April 1988
June 1988
February 1988
June 1988
September 1988
January 1989
September 1988
May 1988
September 1988
January 1989
November 1987
February 1988
August 1988
A70
A70
A70
A70
A76
A76
A82
A78
A76
A70
A70
A72
A74
A80
A70
TABLES
Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of commercial banks, March 31, 1987
Assets and liabilities of commercial banks, June 30, 1987
Assets and liabilities of commercial banks, September 30, 1987
Assets and liabilities of commercial banks, December 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1988
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1988
Terms of lending at commercial banks, November 1987
Terms of lending at commercial banks, February 1988
Terms of lending at commercial banks, May 1988
Terms of lending at commercial banks, August 1988
Pro forma balance sheet and income statements for priced service operations, June 30, 1987
Pro forma balance sheet and income statements for priced service operations, September 30,1987
Pro forma balance sheet and income statements for priced service operations, March 31, 1988
A72
Federal Reserve Board of Governors
ALAN GREENSPAN, Chairman
MARTHA R . SEGER
MANUEL H . JOHNSON, Vice Chairman
WAYNE D . ANGELL
OFFICE OF BOARD
DIVISION
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the Board
to the Board
BOB STAHLY MOORE, Special Assistant to the Board
LEGAL
DIVISION
MICHAEL BRADFIELD, General
Counsel
J. VIRGIL MATTINGLY, JR., Deputy General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RLCKI R. TLGERT, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OF INTERNATIONAL
EDWIN M. TRUMAN, Staff
ROBERT F. GEMMILL, Staff Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
Director
RALPH W. SMITH, JR., Assistant
Director
DIVISION
OF RESEARCH
Secretary
Secretary
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
MYRON L. KWAST, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
DAVID J. STOCKTON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director
Director
DIVISION
OF MONETARY
DONALD L . KOHN,
DIVISION OF BANKING
SUPERVISION AND
REGULATION
AFFAIRS
Director
DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D. PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
Director
DON E. KLINE, Associate Director
FREDERICK M. STRUBLE, Associate
OFFICE OF THE INSPECTOR
HERBERT A. BIERN, Assistant
GENERAL
Director
WILLIAM A. RYBACK, Deputy Associate Director
STEPHEN C. SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
Director
JOE M. CLEAVER, Assistant Director
ROGER T. COLE, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D. GOETZINGER, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
LAURA M. HOMER, Securities Credit Officer
Director
(Administration)
GLENN E. LONEY, Assistant
Director
ELLEN MALAND, Assistant
Director
DOLORES S. SMITH, Assistant
Director
WILLIAM TAYLOR, Staff
STATISTICS
MARTHA BETHEA, Deputy Associate Director
PETER A. TLNSLEY, Deputy Associate Director
Secretary
JENNIFER J. JOHNSON, Associate
BARBARA R. LOWREY, Associate
GRIFFITH L . GARWOOD,
AND
EDWARD C. ETTIN, Deputy
Director
THOMAS D. SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
SECRETARY
WILLIAM W . WILES,
Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SLEGMAN, Senior Associate Director
DAVID H. HOWARD, Deputy Associate Director
MICHAEL J. PRELL,
OFFICE OF THE
FINANCE
BRENT L. BOWEN, Inspector
General
A73
and Official Staff
H . ROBERT HELLER
EDWARD W . K E L L E Y , JR.
JOHN P . L A W A R E
OFFICE OF
STAFF DIRECTOR
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
FOR
S. DAVID FROST, Staff
MANAGEMENT
Director
THEODORE E. ALLISON, Staff
EDWARD T. MULRENIN, Assistant Staff Director
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN
MANAGEMENT
DAVID L . SHANNON,
DIVISION OF FEDERAL
BANK
OPERATIONS
CLYDE H . FARNSWORTH, JR.,
Director
CONTROLLER
GEORGE E . LIVINGSTON,
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant
DAVID L. WILLIAMS, Assistant
Director
Director
OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES
ALLEN E. BEUTEL, Executive
DIRECTOR FOR
MANAGEMENT
Director
STEPHEN R. MALPHRUS, Deputy Executive Director
DIVISION
SYSTEMS
OF HARDWARE
BRUCE M . BEARDSLEY,
AND
SOFTWARE
Director
THOMAS C. JUDD, Assistant
Director
ELIZABETH B. RIGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES,
DEVELOPMENT
Director
DAY W. RADEBAUGH, Assistant Director
RICHARD C. STEVENS, Assistant
PATRICIA A. WELCH, Assistant
Director
Director
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
LOUISE L. ROSEMAN, Assistant
Director
FLORENCE M . YOUNG,
DIVISION
RESERVE
RESOURCES
JOHN R. WEIS, Associate
Director
ANTHONY V. DIGIOIA, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
FRED HOROWITZ, Assistant
Director
OFFICE OF THE
Director
AND
Adviser
A74 Federal Reserve Bulletin • February 1989
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN, Chairman
WAYNE D . ANGELL
ROBERT P . BLACK
ROBERT P. FORRESTAL
E. GERALD CORRIGAN, Vice
H . ROBERT HELLER
W . LEE HOSKINS
MANUEL H . JOHNSON
ALTERNATE
ROGER GUFFEY
SILAS KEEHN
Chairman
EDWARD W . KELLEY, JR.
JOHN P . L A W A R E
ROBERT T . PARRY
MARTHA R . SEGER
MEMBERS
THOMAS C . MELZER
JAMES H . OLTMAN
RICHARD F . SYRON
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,
EDWIN M . TRUMAN,
Economist
Economist
JOHN H. BEEBE, Associate
Economist
J. ALFRED BROADDUS, JR., Associate
Economist
JOHN M. DAVIS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
DAVID E. LLNDSEY, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
SHEILA L. TSCHINKEL, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL
ADVISORY
COUNCIL
CHARLES T . FISHER, III,
J. TERRENCE MURRAY, First District
WILLARD C. BUTCHER, Second Dis trict
SAMUEL A. MCCULLOUGH, Third District
President
BENNETT A. BROWN, Vice
President
B. KENNETH WEST, Seventh District
DONALD N. BRANDIN, Eighth District
LLOYD P. JOHNSON, JR., Ninth District
THOMAS H. O'BRIEN, Fourth District
JORDAN L. HAINES, Tenth District
FREDERICK DEANE, JR., Fifth District
JAMES E. BURT III, Eleventh District
KENNETH L. ROBERTS, Sixth District
PAUL HAZEN, Twelfth District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A75
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
JUDITH N. BROWN, Edina, Minnesota, Chairman
WILLIAM E. ODOM, Dearborn, Michigan, Vice Chairman
NAOMI G. ALBANESE, Greensboro, North Carolina
GEORGE H. BRAASCH, Chicago, Illinois
BETTY TOM CHU, Arcadia, California
CLIFF E. COOK, Tacoma, Washington
JERRY D. CRAFT, Atlanta, Georgia
DONALD C. DAY, Boston, Massachusetts
R.B. (JOE) DEAN, JR., Columbia, South Carolina
RICHARD B. DOBY, Denver, Colorado
WILLIAM C . DUNKELBERG, P h i l a d e l p h i a , P e n n s y l v a n i a
RICHARD H . FINK, W a s h i n g t o n , D . C .
JAMES FLETCHER, C h i c a g o , Illinois
STEPHEN GARDNER, D a l l a s , T e x a s
ELENA G. HANGGI, Little Rock, Arkansas
JAMES HEAD, Berkeley, California
THRIFT INSTITUTIONS
ADVISORY
ROBERT A . HESS, W a s h i n g t o n , D . C .
RAMON E. JOHNSON, Salt Lake City, Utah
BARBARA KAUFMAN, San Francisco, California
A. J. (JACK) KING, Kalispell, Montana
MICHELLE S . MEIER, W a s h i n g t o n , D . C .
RICHARD L. D. MORSE, Manhattan, Kansas
LINDA K. PAGE, Columbus, Ohio
SANDRA PHILLIPS, P i t t s b u r g h , P e n n s y l v a n i a
VINCENT P. QUAYLE, Baltimore, Maryland
CLIFFORD N . ROSENTHAL, N e w Y o r k , N e w Y o r k
ALAN M . SILBERSTEIN, N e w Y o r k , N e w Y o r k
RALPH E. SPURGIN, Columbus, Ohio
DAVID P. WARD, Peapack, New Jersey
LAWRENCE WINTHROP, P o r t l a n d , O r e g o n
COUNCIL
GERALD M. CZARNECKL, Honolulu, Hawaii, President
DONALD B. SHACKELFORD, Columbus, Ohio, Vice President
CHARLOTTE CHAMBERLAIN, G l e n d a l e , California
JOE C. MORRIS, Overland Park, Kansas
ROBERT S. DUNCAN, Hattiesburg, Mississippi
ADAM A. JAHNS, Chicago, Illinois
H. C. KLEIN, Jacksonville, Arkansas
PHILIP E. LAMB, Springfield, Massachusetts
JOSEPH W . MOSMILLER, B a l t i m o r e , M a r y l a n d
LOUIS H. PEPPER, Seattle, Washington
MARION O. SANDLER, Oakland, California
CHARLES B. STUZIN, Miami, Florida
A76
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES, MS-138, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551 or telephone (202) 4523244. When a charge is indicated, payment should accompany request and be made payable to the Board of Governors
of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. 1984. 120 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1 9 8 6 - 8 7 .
FEDERAL RESERVE BULLETIN. M o n t h l y . $ 2 0 . 0 0 per y e a r or
$2.00 each in the United States, its possessions, Canada,
and Mexico; 10 or more of same issue to one address,
$18.00 per year or $1.75 each. Elsewhere, $24.00 per
year or $2.50 each.
BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint
of Part I only) 1976. 682 pp. $5.00.
ANNUAL STATISTICAL DIGEST
1974-78.
1981.
1982.
1983.
1984.
1985.
1986.
1980.
1982.
1983.
1984.
1985.
1986.
1987.
305 pp.
239 pp.
266 pp.
264 pp.
254 pp.
231 pp.
288 pp.
$10.00 per copy.
$ 6.50 per copy.
$ 7.50 per copy.
$11.50 per copy.
$12.50 per copy.
$15.00 per copy.
$15.00 per copy.
1987.
1988. 272 pp. $ 1 5 . 0 0 per c o p y .
HISTORICAL CHART BOOK. Issued annually in Sept. $1.25
each in the United States, its possessions, Canada, and
Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each.
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE-
RIES OF CHARTS. Weekly. $24.00 per year or $.60 each in
the United States, its possessions, Canada, and Mexico;
10 or more of same issue to one address, $22.50 per year
or $.55 each. Elsewhere, $30.00 per year or $.70 each.
THE FEDERAL RESERVE ACT, and other statutory provisions
affecting the Federal Reserve System, as amended
through April 20, 1983, with Supplements covering
amendments through August 1987. 576 pp. $7.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM.
ANNUAL PERCENTAGE RATE TABLES (Truth in L e n d i n g —
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $2.25; 10 or more of same volume to one
address, $2.00 each.
INTRODUCTION TO FLOW OF FUNDS. 1 9 8 0 . 6 8 pp. $ 1 . 5 0 e a c h ;
10 or more to one address, $1.25 each.
PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp.
$13.50 each.
FEDERAL RESERVE REGULATORY SERVICE. L o o s e l e a f ; up-
dated at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as
follows and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A
MULTICOUNTRY MODEL, M a y 1984. 5 9 0 pp. $ 1 4 . 5 0
each.
PROCESSING A N APPLICATION THROUGH THE FEDERAL RESERVE SYSTEM. A u g u s t 1985. 30 p p .
INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r 1986.
440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.
December 1986. 264 pp. $10.00 each.
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
are available
without
charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Fair Credit Billing
Federal Reserve Glossary
A Guide to Business Credit and the Equal Credit Opportunity
Act
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If You Use A Credit Card
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Closings
A Consumer's Guide to Mortgage Refinancing
Making Deposits: When Will Your Money Be Available?
All
PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
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. Out of print.
Limit of 50 copies
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO CANADA, GER-
MANY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
136. THE EFFECTS OF FISCAL POLICY ON THE U . S . ECON-
OMY, 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, b y S t e p h e n A .
Rhoades. February 1984. Out of print.
138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDELINES, AND THE LIMITS OF CONCENTRATION IN LOCAL
BANKING MARKETS, by James Burke. June 1984.14 pp.
Out of print.
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
STAFF STUDIES: Summaries
Bulletin
Only Printed in the
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
Staff Studies 115-125 are out of print.
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. Out of print.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: JANUARY-MARCH 1975, b y Margaret L .
Greene. August 1984. 16 pp. Out of print.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1977-DECEMBER 1979, b y Mar-
garet L. Greene. October 1984. 40 pp. Out of print.
129. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER 1980-OCTOBER 1981, b y Margaret
L. Greene. August 1984. 36 pp.
THE LITERATURE, by John D. Wolken. November 1984.
38 pp. Out of print.
141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAY-
MENT COSTS, by William Dudley. November 1984.
15 pp. Out of print.
142. MERGERS
AND
ACQUISITIONS
BY
COMMERCIAL
BANKS, 1960-83, by Stephen A. Rhoades. December
1984. 30 pp. Out of print.
143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF
THE ELECTRONIC FUND TRANSFER ACT: RECENT SUR-
VEY EVIDENCE, by Frederick J. Schroeder. April 1985.
23 pp. Out of print.
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, b y G l e n n B .
Canner and Robert D. Kurtz. August 1985. 31 pp. Out of
print.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 ,
by Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA)
INDEXES OF THE MONETARY AGGREGATES, b y H e l e n
T. Farr and Deborah Johnson. December 1985. 42 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE AND OTHER ECONOMIC VARIABLES:
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA-
A REVIEW OF THE LITERATURE, by Victoria S. Farrell
TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
with Dean A. DeRosa and T. Ashby McCown. January
1984. Out of print.
131. CALCULATIONS OF PROFITABILITY FOR U . S . DOLLARDEUTSCHE MARK INTERVENTION, b y L a u r e n c e R. Ja-
cobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES AND INTERVENTION: A REVIEW OF THE TECHNIQUES AND LITERATURE, b y K e n -
neth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS
IN BANKING BEFORE AND AFTER ACQUISITION, b y
Stephen A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: A REEXAMINATION AND AN APPLICATION, b y
John T. Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT
PRICING FROM 1983 THROUGH 1985, b y Patrick I. Ma-
honey, Alice P. White, Paul F. O'Brien, and Mary M.
McLaughlin. January 1987. 30 pp.
A78
152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, by C a r o l y n D . D a v i s and
Alice P. White. September 1987. 14 pp.
154. THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST
RATES, by Glenn B. Canner and James T. Fergus.
October 1987. 26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, b y Mark J.
Warshawsky. November 1987. 25 pp.
156. INTERNATIONAL TRENDS FOR U . S . BANKS AND BANK-
ING MARKETS, by James V. Houpt. May 1988. 47 pp.
REPRINTS
OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
U.S. International Transactions in 1987. 5/88.
Home Equity Lines of Credit. 6/88.
A79
Index to Statistical Tables
References are to pages A3-A71 although the prefix 'A"
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, 36
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21
Automobiles
Consumer installment credit, 39, 40
Production, 49, 50
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 57
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 48
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 69
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, 39, 40
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 3
Commercial paper, 23, 24, 36
Condition statements (See Assets and liabilities)
Construction, 46, 51
Consumer installment credit, 39, 40
Consumer prices, 46, 48
Consumption expenditures, 53, 54
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 67
Cost of living (See Consumer prices)
Credit unions, 26, 39. (See also Thrift institutions)
Currency and coin, 18
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
is omitted in this index
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 47
Eurodollars, 24
FARM mortgage loans, 38
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39, 40
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 41, 43, 44, 45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 70
Foreign trade, 56
Foreigners
Claims on, 57, 59, 62, 63, 64, 66
Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68
A80
GOLD
Certificate account, 10
Stock, 4, 56
Government National Mortgage Association, 33, 37, 38
Gross national product, 53
HOUSING, new and existing units, 51
INCOME, personal and national, 46, 53, 54
Industrial production, 46, 49
Installment loans, 39, 40
Insurance companies, 26, 30, 38
Interest rates
Bonds, 24
Consumer installment credit, 40
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 69
Money and capital markets, 24
Mortgages, 37
Prime rate, 23
International capital transactions of United States, 55-69
International organizations, 59, 60, 62, 65, 66
Inventories, 53
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 38
Federal Reserve Banks, 10, 11
Financial institutions, 26, 38
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20
Federal Reserve Banks, 4, 5, 7, 10, 11
Financial institutions, 26, 38
Insured or guaranteed by United States, 37, 38
Real estate loans—Continued
Financial institutions, 26
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 56
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 46
SAVING
Flow of funds, 41, 43, 44, 45
National income accounts, 53
Savings and loan associations, 26, 38, 39, 41. (See also
Thrift institutions)
Savings banks, 26, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 67
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 55, 56
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 10, 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, 48
Production, 48, 50
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 50
Mobile homes shipped, 51
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 53
OPEN market transactions, 9
PERSONAL income, 54
Prices
Consumer and producer, 46, 52
Stock market, 25
Prime rate, 23
Producer prices, 46, 52
Production, 46, 49
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21
Trade, foreign, 56
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 47
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 68
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 55-69
Utilities, production, 50
VETERANS Administration, 37, 38
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 46, 52
YIELDS (See Interest rates)
A81
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
George N. Hatsopoulos
Richard N. Cooper
Richard F. Syron
Robert W. Eisenmenger
NEW YORK*
10045
Cyrus R. Vance
Ellen V. Futter
Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Peter A. Benoliel
Gunnar E. Sarsten
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas
W. Lee Hoskins
William H. Hendricks
Hanne M. Merriman
Leroy T. Canoles, Jr.
To be announced
To be announced
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
To be announced
To be announced
To be announced
To be announced
To be announced
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Richard T. Lindgren
Silas Keehn
Daniel M. Doyle
Robert L. Virgil, Jr.
H. Edwin Trusheim
To be announced
To be announced
To be announced
Thomas C. Melzer
James R. Bowen
Michael W. Wright
John A. Rollwagen
To be announced
Gary H. Stern
Thomas E. Gainor
Fred W. Lyons, Jr.
To be announced
James C. Wilson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
To be announced
To be announced
To be announced
Robert H. Boy kin
William H.Wallace
Robert F. Erburu
Carolyn S. Chambers
Yvonne B. Burke
Paul E. Bragdon
Don M. Wheeler
Carol A. Nygren
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg1
John G. Stoides1
Delmar Harrison1
Fred R. Herr1
James D. Hawkins1
James Curry III
Donald E. Nelson
Robert J. Musso
Roby L. Sloan1
John F. Breen
Howard Wells
Paul I. Black, Jr.
Robert F. McNellis
Kent M. Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
John F. Hoover1
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Executive Vice President.
A82
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
H
MR
H H B B B M B I
• I
LEGEND
' Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
NEW HANDBOOK AVAILABLE
REGULATORY SERVICE
FROM THE
The Federal Reserve Board has announced publication of The Payment System Handbook. The new
handbook, which is part of the Federal Reserve Regulatory Service, deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation CC (Availability of
Funds and Collection of Checks), Regulation J (Collection of Checks and Other Items and Wire Transfers
of Funds by Federal Reserve Banks), the Expedited
Funds Availability Act and related statutes, official
Board commentary on Regulation CC, and policy
statements on risk reduction in the payment system. In
addition, it contains detailed subject and citation indexes. It is published in loose-leaf binder form and is
updated monthly.
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume loose-leaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and, available for the first time in September 1988, The Payment
System
Handbook.
For domestic subscribers, the annual rate for The
Payment System Handbook is $75. For subscribers
outside the United States, the price, including additional air mail costs, is $90. For the Federal Reserve
Regulatory Service, not including handbooks, the annual rate is $200 for domestic subscribers and $250 for
subscribers outside the United States. All subscription
requests must be accompanied by a check payable to
"Board of Governors of the Federal Reserve
System." Orders should be addressed to Publications
Services, Mail Stop 138, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT
PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to resolve a billing error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair credit.
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Refinancing, A Consumer's Guide to Mortgage Lock-Ins, and
A Consumer's Guide to Mortgage Closings. These
booklets were prepared in conjunction with the Federal Home Loan Bank Board and in consultation with
other federal agencies and trade and consumer
groups.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
@FedFRASER