Full text of Federal Reserve Bulletin : February 1990
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VOLUME 76 •
NUMBER 2 •
FEBRUARY 1990
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions
expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T. Berenson, the
Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
39 THE ACTIVITIES OF JAPANESE
BANKS
IN THE UNITED KINGDOM AND IN THE
UNITED STATES,
1980-88
A large proportion of the international assets of Japanese banks are at their branches
in the United Kingdom and their agency
and branch offices in the United States.
This article focuses on the activities of
Japanese banks in these two centers.
51 INDUSTRIAL
PRODUCTION
Industrial production edged up in November after revised declines of 0.6 percent in
October and 0.3 percent in September.
53
ANNOUNCEMENTS
Statement by Chairman Greenspan on the
nomination of David Mullins.
Amendments to Regulation B.
55 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on November 14, 1989, the
Committee adopted a directive that called
for maintaining the existing degree of pressure on reserve positions and that provided
for giving greater weight to developments
that might require some slight easing during
the intermeeting period. Accordingly,
slightly greater reserve restraint might be
acceptable during the intermeeting period,
while some slight easing of reserve restraint
would be acceptable, depending on progress toward price stability, the strength of
the business expansion, the behavior of the
monetary aggregates, and developments in
foreign exchange and domestic financial
markets. The reserve conditions contemplated by the Committee were expected to
be consistent with growth of M2 and M3 at
annual rates of around IVi percent and 4'/2
percent respectively over the three-month
period from September to December. The
intermeeting range for the federal funds rate
was left unchanged at 7 to 11 percent.
Amendments to Regulation C.
Decrease in the net transaction accounts to
which a 3 percent reserve requirement will
apply in 1990.
Proposed revisions to the staff commentary
on Regulation B; proposed amendments to
Regulation CC; proposed modifications to
the notice of nonpayment service; proposed
preemption determination regarding a California law; proposal to revoke current exemptions from Regulation C granted to institutions in Massachusetts, Connecticut,
and New Jersey; proposed transition capital
standards for state member banks and bank
holding companies through the end of 1990.
61 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
AI FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available as of
December 27, 1989.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
A 7 l GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A84 FEDERAL RESERVE
PUBLICATIONS
BOARD
A86 INDEX TO STATISTICAL
A80 BOARD OF GOVERNORS
AND
STAFF
A82 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
TABLES
A88 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A89 MAP OF FEDERAL
RESERVE
SYSTEM
The Activities of Japanese Banks
in the United Kingdom and
in the United States, 1980^88
This article was prepared by Henry S. Terrell,
Division of International Finance, Board of Governors of the Federal Reserve System; Robert S.
Dohner, Visiting Professor, Graduate School of
Business, Stanford University; and Barbara R.
Lowrey, Associate Secretary, Board of Governors.
In recent years banks headquartered in Japan
have grown extremely rapidly relative to banks
headquartered in other countries. While most of
this growth occurred at their domestic offices,
international assets of Japanese banks also grew
substantially. Between year-end 1984 and yearend 1988, Japanese banks accounted for slightly
more than one-half of the measured growth of
total international banking activity. International
assets of Japanese banks currently represent
about two-fifths of measured international banking assets of all banks. A large portion of these
international assets of Japanese banks are at their
branches in the United Kingdom and their
agency and branch offices in the United States.
According to a recent survey, sixteen of the
world's twenty-five largest banks, including the
seven largest, are headquartered in Japan.1
When measured by total market capitalization,
the figures are even more striking. The average
equity market value of shares of the largest
Japanese banks is in a range of $50 billion to $80
billion, while the average stock market valuation
of the equity of the largest U.S. banks is about
$10 billion.2
Note. This article is based on an earlier study by the same
authors, "The U.S. and U.K. Activities of Japanese Banks:
1980-1988," International Finance Discussion Papers 361
(Board of Governors of the Federal Reserve System, Division of International Finance, September 1989).
1. Annual survey, "Top 1,000 World Banks," The Banker,
vol. 139 (July 1989), pp. 38-145.
2. See Salomon Brothers, International
August 2, 1989.
Bank
Biweekly,
An earlier paper analyzed the faster worldwide growth of assets of the Japanese banks
relative to U.S. banks over the longer period
from 1972 through 1986.3 The major finding of
that study was that domestic currency activities
in Japan accounted for a large proportion of the
total growth of assets of Japanese banks in that
period. In the 1984-86 period, when assets at
large Japanese banks increased about 75 percent more than assets at large U.S. banks,
roughly four-fifths of this growth differential
appeared related to the domestic banking business of Japanese banks and only about one-fifth
to their international business. Factors that
influenced the rapid domestic asset growth,
measured in U.S. dollars, were a fast growing
domestic economy, the translation effect of an
appreciating currency on the value of yendenominated assets at domestic offices, and the
ability of large Japanese banks to maintain their
share of the domestic banking market during a
period when the largest U.S. banks were losing
domestic market share to the rapidly growing
superregional banks.
The financial strength and competitive position of Japanese banks in addition to their
absolute size has made them a major presence
in overseas markets as well as in their domestic
market. The distinction between domestic and
international banking activity, however, is not
always precise, particularly in a world without
capital controls. In such an environment, large
multinational banks are managed on a worldwide consolidated basis and have the ability to
shift both assets and funding sources to markets
that offer greater economic advantages or are
3. See Robert S. Dohner and Henry S. Terrell, "The
Determinants of the Growth of Multinational Banking Organizations: 1972-86," International Finance Discussion Papers 326 (Board of Governors of the Federal Reserve System,
Division of International Finance, June 1988).
40
Federal Reserve Bulletin • February 1990
1. Location of assets of Japanese banks
Billions of dollars, except as noted
Foreign branches
Year ending
December
Offices
in Japan1
Percentage increase
1981-88
1984-88
United
Kingdom
United
States2
791
811
908
926
1,339
1,927
2,854
3,044
1981
1982
1983
1984
1985
1986
1987
1988
Total
233
310
350
421
600
837
1,090
1,120
134
161
178
194
257
359
426
445
74
97
108
131
151
208
252
307
285
229
381
166
232
129
315
134
1. Includes assets of city, trust, and long-term credit banks in Japan.
2. Includes agencies as well as branches of Japanese banks.
SOURCES . Bank of Japan, Economic Statistics Monthly; Call Report Data for
U.S. Agencies and Branches; and Bank of England Quarterly.
less regulated. To the extent that any national
banking group shifts its domestic assets, including interbank trading, to offshore markets because of regulations in its domestic market, its
measured participation in "international"
banking assets will be increased even though
the transactions have a definite domestic orientation.
Assets of all foreign branches of Japanese
banks, of which those in the United States and
the United Kingdom account for nearly threefourths of the total, increased about 380 percent
between December 1981 and year-end 1988,
while aggregate domestic office assets increased
about 285 percent (table 1). Foreign branch
assets grew substantially more than domestic
office assets between December 1981 and December 1984 (81 percent compared with 17
percent), in large part because of the translation
effect of the decline in the value of the Japanese
yen relative to the U.S. dollar on the dollar
value of the yen assets of the banks' domestic
offices.
By contrast, between year-end 1984 and yearend 1988, the dollar value of assets of foreign
branches of Japanese banks increased 166 percent while the dollar value of domestic office
assets of Japanese banks increased 229 percent,
in light of an appreciation of the Japanese yen.
Although less rapid than the growth of domestic
offices, growth of offshore branches in this period
was extremely rapid relative to the growth of
international assets of other countries' banks.
Part of this growth reflects the progressive liberalization of the ability of Japanese banks to
acquire foreign assets.
This relatively faster growth of offshore activities of Japanese banks compared with that of
other banks is shown in table 2, which presents
data on the share of total international assets by
nationality of bank. Between year-end 1984 and
year-end 1988, international assets at Japanese
banks more than tripled, and the share of Japanese banks in total international banking assets
increased from less than 25 percent in 1984 to
almost 40 percent by year-end 1988. International assets of Japanese banks were estimated to
be more than two and one-half times as large as
international assets of U.S. banks, the second
largest national group. Over this four-year pe-
2. International bank assets, by nationality of bank1
Amounts in billions of dollars; shares in percent
December 1984
Parent country
of bank
France
Germany
Italy
Japan2
Switzerland
United Kingdom
United States ..
Other
Total
December 1986
Share of
total assets
Amount
200.7
143.2
90.6
517.9
82.9
168.9
594.5
450.7
8.9
6.4
4.0
23.0
3.7
7.5
26.4
20.1
276.1
270.0
145.1
1,117.7
152.0
211.7
598.3
635.4
2,249.4
100.0
3,406.3
Amount
1. Includes claims in foreign and domestic currencies of banking offices on
nonlocal customers and claims in foreign currencies on local residents.
2. These data include international assets at domestic (Japanese) offices and
foreign subsidiaries in addition to assets at foreign branches of Japanese banks
December 1988
Share of
total assets
Amount
Share of
total assets
7.9
4.3
32.8
4.5
6.2
17.6
18.6
384.1
358.8
201.2
1,756.4
238.6
238.7
675.3
749.8
8.4
7.7
4.4
38.2
5.2
5.2
14.6
16.3
100.0
4,597.8
100.0
8.1
and are therefore larger than the totals reported in table 1 for assets at foreign
branches.
SOURCES. Bank for International Settlements, Annual Reports, various
issues.
The U.K. and U.S. Activities of Japanese Banks, 1980-88
riod, Japanese banks are estimated to have accounted for approximately one-half of the growth
of total international banking activity.
In summary, in recent years Japanese banks
have become the world's largest banks in absolute size. Although most of their absolute growth
has occurred at their offices in Japan, Japanese
banks did account for about one-half of the
growth of total international banking assets in the
1984-88 period, and a large proportion of their
international assets are concentrated at their
branch offices in the United States and in the
United Kingdom. In both markets, Japanese
banks have grown rapidly and are by far the
largest foreign banks. As of December 1988,
Japanese banks accounted for about one-half of
the activities of foreign banks in the United
States and for about two-fifths of foreign bank
activity in London. This article will explore the
extent to which the growth of assets of U.K. and
of U.S. branches of Japanese banks are related to
local market conditions or to the overall growth
of Japanese international trade and investment.
In addition, the article examines whether these
branches are substitutes for head offices in extending commercial and industrial loans to Japan-based companies and in engaging in interbank trading activities that might have taken
place in Japan had the domestic market been less
regulated. It will also analyze, in the context of a
statistical model, some of the factors that have
affected the activities of Japanese banks in these
two centers.
ACTIVITIES OF JAPANESE BANKS
TWO CENTERS: AN
OVERVIEW
Activities
in the United
41
IN THE
Kingdom
In considering summary data on the assets of the
U.K. branches of Japanese banks, several facts
stand out (see table 3). About nine-tenths of the total
assets of Japanese banks are denominated in currencies other than sterling. Of that total, more than
three-fourths are either claims on overseas residents
or Eurocurrency claims on banks domiciled in the
United Kingdom. Almost one-half of Japanese
banks' total claims on overseas residents represent
claims on affiliated offices in other countries. These
data confirm anecdotal evidence that little of the
activity of Japanese banks in the United Kingdom is
oriented toward the U.K. economy. Since year-end
1984, the nonsterling claims of these branches on
private U.K. firms have increased (in dollar terms)
three-fold, but a large proportion of these claims are
on financial affiliates of foreign companies based in
the United Kingdom. Such firms include life insurance companies that conduct a multinational business in London and therefore are not closely linked
to the local economy.
A roughly similar pattern regarding the business orientation of Japanese banks is apparent on
the liabilities side (table 4). Virtually all the
funding for the U.K. branches of Japanese banks
comes from nonsterling transactions with overseas residents, Eurocurrency liabilities to local
3. Assets of U. K. branches of Japanese banks
Billions of dollars
Assets
Year ending
December
1980
1981
1982
1983
1984
1985
1986
1987
1988
Total
97.6
134.1
160.8
178.4
194.1
257.3
358.6
426.0
444.6
Nonsterling claims
Denominated
in currencies
other than
sterling1
94.8
129.7
155.1
171.1
182.9
241.1
336.3
389.1
393.8
On overseas residents
Total
Unrelated
banks
Related
offices
70.4
91.8
106.6
117.8
137.0
167.8
247.4
298.8
307.2
24.8
35.4
47.7
51.9
63.0
71.6
93.8
113.7
127.0
32.7
39.2
37.6
42.5
51.3
72.6
125.0
149.4
143.2
1. Difference between total and nonsterling assets does not equal sterling
assets because of a small amount of unallocated items.
On U.K. residents
|
Nonbanks
Monetary
sector
Private
sector
12.9
17.3
21.3
23.4
22.7
23.6
28.6
35.7
37.0
22.4
33.9
44.1
39.8
34.6
41.5
44.5
38.4
37.5
2.5
3.7
4.2
5.1
6.1
10.0
14.7
20.9
21.5
SOURCE. Bank of England Quarterly and special tabulations provided by the
Bank of England.
42
Federal Reserve Bulletin • February 1990
4. Liabilities of U.K. branches of Japanese banks
Billions of dollars
Liabilities
Year ending
December
1980
1981
1982
1983
1984
1985
1986
1987
1988
Total
Nonsterling liabilities
Denominated
in currencies
other than
sterling1
94.8
129.7
155.2
171.4
183.7
240.6
335.8
388.0
391.6
97.6
134.1
160.8
178.4
194.1
257.3
358.6
426.0
444.6
To overseas residents
Total
Unrelated
banks
Related
offices
57.8
77.1
91.1
98.8
118.2
157.6
225.5
260.7
259.3
n.a.
n.a.
60.0
63.4
82.6
108.6
141.2
160.5
146.4
16.5
23.0
24.9
27.3
25.8
37.3
67.9
82.4
91.4
CDs 2
Nonbanks
U.K.
monetary
sector
n.a.
n.a.
6.2
8.1
9.8
11.7
16.4
17.8
21.5
27.3
39.4
48.3
42.5
37.6
52.7
59.3
60.1
56.0
9.0
12.1
19.0
29.9
32.5
29.1
45.4
59.0
67.4
1. Difference between total and nonsterling assets does not equal sterling
assets because of a small amount of unallocated items.
2. CDs are often negotiable instruments and the issuing bank does not have
information on the ultimate holder.
n.a. Not available.
SOURCE. Bank of England Quarterly and special tabulations provided by the
Bank of England,
banks, and certificates of deposit (CDs). Liabilities to related offices abroad constitute only
about one-third of total liabilities to all overseas
residents. In recent years, the volume of CDs
issued (mainly dollar denominated) by the London branches of Japanese banks has virtually
exploded. At year-end 1988, these branches had
issued more than $65 billion in Euro-CDs, about
one and one-half times the value of Euro-CDs
issued by branches of U.S. banks in London.
Branches of Japanese banks currently account
for about two-fifths of the total issuance of EuroCDs in London.4
In summary, U.K. branches of Japanese banks
deal mainly in foreign currencies with non-U.K.
residents. These branches are large net borrowers in the interbank Eurocurrency market and are
by far the largest issuers of Euro-CDs. A comparison of the data in tables 3 and 4 shows the
significant role the London branches play in
funding their related offices in other countries,
including their head offices in Japan. As of December 1988, these offices in London held more
than $50 billion net in claims on related offices.
1988 (table 5). Loans, including customers' liabilities for acceptances, are by far the largest
component of assets, accounting for about onehalf of the total. Cash and due from banks,
largely reflecting clearing and interbank transactions, accounts for about one-third of total assets, while holdings of securities increased from
a negligible amount to more than $20 billion by
year-end 1988.
In particular, commercial and industrial loans
to borrowers with an identified U.S. residence
constitute the largest and most rapidly growing
component of the loan portfolios of Japanese
banks in the United States (table 6). By year-end
1988, commercial and industrial loans to these
U.S. borrowers amounted to about $60 billion.
By comparison, similar loans to domestic customers by large domestically chartered U.S.
banks amounted to about $300 billion. Loans by
Japanese agencies and branches to foreign com-
Activities
in the United
States
The activities of agencies and branches of Japanese banks in the United States grew by a factor
of five over the eight-year period from 1980 to
4. Some of these Euro-CDs are purchased by U.S. investors, including money market mutual funds.
5. Assets of U. S. branches and agencies
of Japanese banks
Billions of dollars
Year
ending
December
Total
Securities
Loans
Customers'
liabilities
for
acceptances
Cash
and due
from
banks
1980
1981
1982
1983
1984
1985
1986
1987
1988
60.8
73.7
96.9
108.2
130.8
151.2
208.3
252.3
306.7
1.4
1.6
2.6
3.7
6.4
13.1
19.3
23.4
23.2
36.5
44.2
53.4
54.7
57.8
65.1
83.0
103.8
131.6
5.4
7.2
8.2
10.2
15.3
16.6
19.1
24.1
24.5
5.1
5.9
19.4
26.2
41.2
46.3
70.2
83.1
95.8
SOURCE. Call Report.
The U.K. and U.S. Activities of Japanese Banks, 1980-88
43
6. Loan portfolios of U. S. agencies and branches of Japanese banks
Billions of dollars
Year
ending
December
1980
1981
1982
1983
1984
1985
1986
1987
1988
.
.
.
.
.
.
.
.
Commercial and industrial
U.S.
Foreign
36.5
44.2
53.4
54.7
57.8
65.1
83.0
103.8
131.6
18.8
21.8
24.1
25.0
28.2
32.5
43.0
59.0
74.8
9.3
10.0
11.5
12.2
16.3
20.1
30.2
45.9
61.4
9.5
11.8
12.7
12.8
12.0
12.4
12.8
13.0
13.4
4.8
4.9
7.0
8.3
8.1
7.7
7.8
10.1
10.8
•Less than $50 million.
To
financial
institutions
For
purchasing
and carrying
securities
11.5
15.9
21.4
20.0
20.6
22.3
26.5
26.5
28.5
Total
To
foreign
governments
Total
.2
.3
.2
.5
.7
2.0
3.2
1.3
2.5
Real
estate
•
.2
*
*
*
.2
1.6
6.3
13.8
SOURCE. Call Report.
7. Major sources of funding to U.S. agencies and
branches of Japanese banks
mercial borrowers and to foreign governments
were relatively stagnant over this period. Since
December 1985, loans secured by real estate
have grown rapidly at Japanese agencies and
branches and exceed their loans to either foreign
commercial borrowers or foreign governments.5
Japanese banks have also been heavily involved
in financing large corporate restructurings in the
United States.
An analysis of the major sources of funding
for U.S. offices of Japanese banks reveals that,
similar to the pattern in the United Kingdom,
U.S. offices of Japanese banks are extremely
large net borrowers in domestic interbank markets and in recent years have been smaller (but
still significant) net borrowers from banks outside the United States (table 7). Deposits from
nonbank U.S. residents and nonbank foreign
residents constitute a relatively small proportion of their total funding. Unlike the offices of
Japanese banks in London, which were net
providers of funds to their related offices in
other countries, U.S. offices of Japanese banks
(at least since 1984) have relied heavily on net
advances from related institutions abroad.
A large proportion of activity by Japanese
banks is with customers identified as U.S. residents. This geographic identification, however,
does not properly account for the fact that many
of these customers are affiliates of Japanese
entities. As of December 1988, direct claims on
Japanese residents by U.S. agencies and
branches of Japanese banks were $106 billion out
of a total of $307 billion. On a risk-adjusted basis,
however, when claims are reallocated to the
country of the ultimate parent obligor, the total
Japanese risk of the U.S. agencies and branches
amounted to $208 billion—a clear indication that
U.S. offices of Japanese banks are closely associated with Japan-based customers.6
In summary, when compared with their U.K.
counterparts, the U.S. offices of Japanese banks
show some similarities and as well as certain
important differences. The main similarity is that
both are large net borrowers in local banking
markets. The main difference is that offices of
Japanese banks in London serve as an important
net funding source for their related offices in
other countries, while offices in the United States
tend to be net takers of funds from related offices
in other countries. In the United States, Japanese
5. It is not possible to determine the extent to which these
real estate loans are related to the boom in property lending
in Japan or to Japanese investment in U.S. real estate.
6. Figures are derived from aggregate data on the Country
Exposure Report for U.S. Agencies and Branches of Foreign
Banks.
Billions of dollars
Deposits
Net liabilities to banks
Year
ending
December
1980
1981
1982
1983
1984
1985
1986
1987
1988
....
....
....
....
....
....
....
....
....
In the
United
States1
In
foreign
countries1
Related
institutions
abroad
From
U.S.
residents
From
foreign
residents
11.1
15.8
20.3
19.7
18.0
23.9
23.7
39.3
45.9
-3.0
-1.9
.5
5.7
5.8
9.3
15.3
22.3
21.1
3.6
2.7
-1.6
-.8
6.9
7.9
12.5
9.1
18.4
10.0
10.5
10.6
8.2
7.2
8.3
15.2
17.4
22.8
.1
.1
.8
1.2
1.8
1.6
3.6
3.9
4.8
1. Include sum of net federal funds transactions, net interbank deposits, and
gross borrowings from unrelated banks minus gross loans to unrelated banks.
SOURCE. Call Report.
44
Federal Reserve Bulletin • February 1990
banks are heavily concentrated in lending to
locally based companies, including U.S. affiliates
of Japanese companies, while in the United
Kingdom, Japanese banks lend largely to nonlocal borrowers in nonlocal currencies.7
THE BANKING
ENVIRONMENT
AND EXTERNAL
IN JAPAN
The Banking
ECONOMIC
Environment
Large multinational banks are managed and operated on a worldwide consolidated basis. Therefore, branches of nonlocal banks will be influenced by factors specific to their home country
as well as to the local environment in which these
branches are operating. In some cases, a foreign
branch operating in a less regulated environment
might engage in activities that otherwise would
have been undertaken by the bank's home country office had it been less regulated, particularly
in cases of limitations on interest rates or quantitative restraints on particular activities. In fact,
Eurocurrency banking largely owes its existence
to banks' seeking to avoid regulatory restraints in
their domestic banking markets.
Describing the complexity of the de jure and de
facto regulatory environment for banking in Japan over these eight years is beyond the scope of
this article, but the general situation was summarized in 1986 by Yoshio Suzuki, formerly an
Executive Director of the Bank of Japan:
Financial innovation and deregulation of interest rates
has proceeded only gradually in Japan, so that interest
rates on deposits, which make up the bulk of liabilities
of financial institutions, remain largely regulated; the
exceptions are interest rates on foreign currency deposits and CDs, the latter of which are subject to
quantity regulations. 8
Therefore, according to Suzuki, both price and
quantity limitations tended to constrain domestic
7. In addition, in London, Japanese banks tend to be large
net recipients of deposits from foreign official institutions,
while their offices in the United States are large net lenders to
foreign official institutions.
8. See Yoshio Suzuki, ed., Money, Finance, and
Macro-
economic Performance in Japan (Yale University Press,
1986), p. 55.
activities of Japanese banks through the mid1980s. While considerable progress on interest
rate liberalization has been undertaken in Japan
in recent years, including liberalization of the call
money market in late 1988, currently about 40
percent of bank liabilities in Japan are subject to
regulated rates.
Data describing the development of the balance sheets of Japanese city banks' offices in
Japan over a period of slow interest rate deregulation are shown in table 8.9 On the asset side,
loans and discounts constitute the largest component and accounted for the largest absolute
growth of the domestic office assets of Japanese
banks. Loans and discounts actually increased
slightly as a percentage of total assets, while
acceptance financing—largely trade related and
perhaps more easily transferred abroad—
decreased as a fraction of total assets.
The liability structure of Japanese city banks
operating in a gradually deregulated environment
changed moderately over the 1980-88 period
(table 9). Over the entire period, total deposits
actually grew less rapidly than total liabilities
did, and the share of deposits in total funding
declined nearly 10 percentage points, despite the
rapid increase since 1986 in deposits with unregulated interest rates. In fact, all deposit growth
since year-end 1986 at domestic offices of Japanese city banks has come from time deposits with
liberalized interest rates. Negotiable CDs, with
market-determined interest rates, remain a relatively small percentage of domestic office funding
because of limits on size, maturity, and until
recently, total CD issuance relative to net worth.
One source of funding that has been extremely
elastic for Japanese city banks over the whole
period has been net interoffice liabilities, which
in a closed system represent borrowings from
Japanese branches in overseas markets that can
be used in part to finance loans to local Japanese
companies.
The basic picture that emerges is that Japanese
city banks, for at least much of the 1980s, were
operating in an environment with low and regu-
9. City banks are the thirteen large Japanese banks that
operate on a nationwide basis. Data for city banks are
reported separately in the Economic Statistics
lished by the Bank of Japan.
Monthly pub-
The U.K. and U.S. Activities of Japanese Banks, 1980-88
45
8. Assets of Japanese city banks, total and selected categories
Year ending
December
Cash and
deposits
with others
Call
loans
Customers'
liabilities for
acceptances
Total,
all assets1
115
109
114
112
114
132
139
158
166
1,228
1,312
1,419
1,557
1,702
1,940
2,205
2,510
2,818
9.4
8.3
8.0
7.2
6.7
6.8
6.3
6.3
5.9
Loans and
discounts
Securities
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Amount (100 billion yen)
1980
1981
1982
1983
1984
1985
1986
1987
1988
109
107
113
132
148
155
172
214
261
167
174
177
192
201
221
262
310
371
21
36
49
62
50
73
94
87
88
713
788
871
964
1,081
1,235
1,412
1,606
1,771
Percent of total
1980
1981
1982
1983
1984
1985
1986
1987
1988
8.9
8.2
8.0
8.5
8.7
8.0
7.8
8.5
9.3
1.7
2.7
3.5
4.0
2.9
3.8
4.3
3.5
3.1
13.6
13.3
12.5
12.3
11.8
11.4
11.9
12.4
13.2
1. The amounts of yen and percentages do not sum to totals because some
smaller categories were omitted.
58.1
60.1
61.4
61.9
63.5
63.7
64.0
64.0
62.8
SOURCE. Economic Statistics Monthly, Bank of Japan,
9. Liabilities of Japanese city banks, total and selected categories
Deposits
Year ending
December
Total
Time deposits
with
liberalized
rates
Certificates
of deposit
Call
money
Borrowed from
Bank of Japan
Interoffice
Total,
all liabilities1
18
11
17
32
24
31
51
52
55
16
12
15
25
47
91
142
182
237
1,228
1,312
1,419
1,557
1,702
1,940
2,205
2,510
2,818
1.5
.8
1.2
2.1
1.4
1.6
2.3
2.1
2.0
1.3
.9
1.1
1.6
2.8
4.7
6.4
7.3
8.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Amount (100 billion yen)
1980
1981
1982
1983
1984
1985
1986
1987
1988
854
940
990
1,079
1,148
1,256
1,375
1,587
1,728
110
289
485
11
19
21
28
46
49
61
64
95
45
59
68
71
80
68
110
124
124
Percent of total
1980
1981
1982
1983
1984
1985
1986
1987
1988
69.5
71.6
69.8
69.3
67.5
64.7
62.4
63.2
61.3
5.0
11.5
17.2
1. The amounts of yen and percentages do not sum to totals because some
smaller categories were omitted.
lated domestic interest rates, on both deposits
and interbank borrowings, and therefore were
faced with a demand for funds above what they
could raise through deposits. That excess demand has grown over time: For example, at
year-end 1980 the loan-deposit ratio at Japanese
city banks was 0.83; by year-end 1986 that ratio
had increased to 1.03 and remained at essentially
.9
1.4
1.5
1.8
2.7
2.5
2.8
2.5
3.4
3.7
4.5
4.8
4.6
4.7
3.5
5.0
4.9
4.4
SOURCE. Economic Statistics Monthly, Bank of Japan.
that level through year-end 1988. Limits on the
call money rate in the domestic loan market, as
measured by the difference between that rate and
either the Euro-yen rate or the market-determined domestic rate on CDs, constrained the
Japanese city banks' ability to acquire funds in
the domestic interbank market for call money
(see chart 1). To meet the excess demand for
46
Federal Reserve Bulletin • February 1990
1. Differential between the call money rate and
market-determined rates
the International Monetary Fund interprets these
data by noting the following:
In Japan, the shift of asset composition toward nonbank institutional investors is also related to the relatively high interest rates they offer to savers under the
current regulated interest rate structure. With interest
rate deregulation proceeding rapidly, however, that
factor will be less important in the future. 10
Banks in Japan, therefore, because of their regulated status, have been losing ground to other
financial institutions as well as facing an excess
demand for loans.
loans above their ability to acquire domestic
funding, Japanese city banks used net borrowings from branches in offshore markets—an unconstrained source of funds in terms of both
price and quantity.
The regulation of interest rates in Japan also
impeded the growth of domestic offices of Japanese banks relative to other financial intermediaries whose liabilities and assets have been less
constrained. While other factors, such as rising
income and an aging population mix, have affected the choice of financial instruments in
Japan, as well as in other industrial countries, the
decline in Japanese banks' share in total financial
assets in Japan since 1981 has been much more
rapid than could be reasonably explained by
growing wealth or demographic changes (chart
2). The World Economic Outlook published by
2. Shares of private Japanese financial institutions
in total assets
r-Trust banks
Insurance companies
r- Depository institutions
The Japanese
Environment
External
Economic
Since the beginning of the 1980s, Japan has run a
current account surplus (table 10). From 1983
through 1987, the current account surplus rose
steadily, and between 1986 and 1988 averaged
about $85 billion a year. During this period, net
long-term capital outflows exceeded the current
account surplus in every year from 1981 through
1988 (except for 1983); from 1986 through 1988,
the cumulative long-term capital outflow was
approximately $150 billion greater than the cumulative current account surplus. A large proportion of the Japanese demand for long-term
assets has reflected the acquisition of foreign
securities by nonbank investors such as insurance companies and pension funds.
The large portfolio investments by Japanese
nonbank financial firms in foreign securities results in part from regulatory changes in Japan,
beginning in the late 1970s, that allowed nonbank
institutions to diversify and to seek higher rates
of return abroad as restrictions on holding assets
denominated in foreign currencies were gradually lifted. In 1979, pension trusts were permitted
to hold foreign-currency assets of up to 10 percent of their total assets in accounts at trust
banks. In 1986, this proportion was raised to 25
percent and then to 30 percent. This liberalization permitted a substantial increase in holdings
of foreign securities in pension trusts in 1986 and
1987. The proportion of assets denominated in
10. See International Monetary Fund, World Economic
1981
1982
1983
1984
1985
1986
1987
1988
Outlook (IMF, 1989), p. 89.
The U.K. and U.S. Activities of Japanese Banks, 1980-88
47
10. Japanese external accounts
Billions of dollars
Net change
Year ending
December
Current
account
Long-term assets
Short-term assets
Total
1980
1981
1982
1983
1984
1985
1986
1987
1988
..
..
..
..
..
..
..
..
10.7
4.8
6.9
20.8
35.0
49.2
85.8
87.0
79.5
Portfolio
Lending
Nonbanks
Banks
2.3
-9.7
-15.0
-17.7
-49.7
-64.5
-131.5
-136.5
-130.3
9.4
4.4
2.1
-1.9
-23.6
-43.0
-101.4
-93.8
-66.8
-2.8
-5.3
-7.3
-8.5
-12.0
-10.5
-9.3
-16.3
-15.0
.0
2.8
3.1
2.1
-.6
3.1
.8
20.0
21.9
13.1
6.4
.0
-3.6
17.6
10.8
58.8
71.8
44.5
SOURCE. International Monetary Fund, World Economic Outlook (April 1989), p. 85.
foreign currencies that was permitted for many
types of insurance companies was also raised in
1986, from 10 percent of total assets to 25 percent
and then to 30 percent. Finally, in 1987, a similar
limit on assets denominated in foreign currencies
held by the Postal Life Insurance Fund was
raised from 10 percent to 20 percent. The net
effect of these and other liberalizing measures
was a substantial increase in the holdings of
assets denominated in foreign currencies by Japanese institutional investors.
While net long-term capital outflows have been
very large, net short-term capital inflows have
been positive during this period. Short-term inflows through the banking system became noticeable in 1984 and 1985 and grew to a substantial
amount in 1986 and 1987 when other financial
intermediaries were actively investing abroad
(table 10). As noted earlier, these short-term
inflows were largely net borrowings by Japanese
banks from their overseas branches, particularly
their branches in London. Because of its position
as a short-term borrower and long-term net
lender, Japan is playing a role of international
financial intermediary as well as serving as a net
source of world savings.
In summary, it appears that the activities of
Japanese banks abroad from 1980 to 1988 were
linked to the financial regulatory climate in Japan. The deregulation of nonbank intermediaries
and of foreign activities of Japanese banks, compared with the slower de facto deregulation of
deposits at banks in Japan, rendered Japanese
banks relatively less competitive in seeking do-
mestic sources of funds and relatively more
dependent on their overseas branches to fund
their domestic lending.
THE EMPIRICAL
MODEL
The previous sections have described the U.K.
and U.S. activities of Japanese banks and the
financial and regulatory environment in which
they operate in Japan. The authors have estimated some preliminary statistical relationships
to see which factors appear related to growth of
assets of the branches of Japanese banks in
these two overseas markets.11
The explanatory variables included factors in
the overseas markets that may be influencing the
growth of assets of these branches as well as
factors specific to the Japanese domestic economy. The variables included cyclical factors, in
both home and foreign markets, as measured by
capacity utilization, the value of Japanese merchandise exports plus imports because of the
importance of foreign branches in financing
trade, and seasonal dummies to capture possible
seasonal "window dressing." Also, two measures of the degree of financial restraint in Japan
were used: (1) the difference between the unregulated domestic rate on CDs and the rate on call
money in the interbank market, and (2) the
difference between loans and deposits at city
11. See Terrell, Dohner, and Lowrey, "The U.S. and U.K.
Activities of Japanese Banks."
48
Federal Reserve Bulletin • February 1990
banks in Japan.12 These two variables attempted
to capture the effect of both price and quantity
restraints on the ability of Japanese banks in
Japan to fund their loan demand directly from
local sources or to trade in interbank markets at
market-clearing prices. The empirical model did
not include specific variables for the cost of
funding or capital for Japanese banks relative to
the costs for banks headquartered in other countries. While these factors may be important over
time, they were not included for two reasons.
First, deriving satisfactory measures of the cost
of funds for different national banking groups
operating in worldwide markets is notoriously
difficult and beyond the scope of this article.
Second, factors affecting global funding costs
are unlikely to explain growth in the U.K. and
U.S. markets as satisfactorily as local market
factors.
In examining the determinants of the activities of Japanese banks in the United Kingdom,
the focus was on the value of total nonsterling
assets of Japanese branches because these assets are the primary component of total assets.
This focus on nonsterling assets suggested that
cyclical effects from the U.K. economy would
be largely irrelevant and that the size of the
local market could best be measured by the
Eurocurrency lending of all banks in London
rather than by GNP or some other demand
variable in the United Kingdom. The results of
the model indicated that important determinants of nonsterling assets of Japanese
branches are (1) the size of the total Eurocurrency banking market in London, excluding
assets of Japanese banks, (2) the value of Japanese total trade, (3) the level of capacity
utilization in Japan (where higher degrees of
capacity utilization cause Japanese banks to
focus on lending in Japan rather than abroad),
(4) seasonal window dressing, and (5) the effect
of financial restraint in Japan as measured by
the difference between loans and deposits.
For the activities of Japanese banks in the
12. As shown in chart 1, this differential between the
unregulated rate on domestic CDs and the rate on call money
in the interbank market showed a pattern similar to that of the
difference between the Euroyen rate and the call rate. The
difference between loans and deposits was calculated from
data shown in tables 8 and 9.
United States, similar equations were estimated.
Besides considering the determinants of total
assets, the determinants of commercial and industrial (C & I) loans and interbank claims were
analyzed to see if they differed. For these three
separate measures, the activities of Japanese
banks in the United States were assumed to be
influenced by U.S. GNP and by the total amount
of Japanese trade, which is largely financed by
Japanese banking offices in the United States.
Besides the cyclical variable for capacity utilization in Japan, a cyclical variable for the United
States was also used because a large proportion
of Japanese lending in the United States appears
related to the U.S. economy. Seasonal dummies
were included, as were the two different measures of financial restraint in Japan.
For total assets of Japanese banks in the
United States, all of the explanatory variables,
except for Japanese capacity utilization, were
estimated to be statistically important determinants. The equations for C & I loans and for
interbank claims showed similar results for seasonal influences and for the effect of capacity
utilization in both the United States and Japan,
as well as the effect of financial restraint in Japan.
However, significant differences were apparent
in terms of the effect of U.S. GNP and Japanese
trade on these two categories of banking activity.
Japanese trade was a significant determinant for
C & I loans, which underscores the importance
of U.S. offices in financing Japanese trade, while
this variable was not statistically significant for
claims on banks. On the other hand, U.S. GNP
was found to be a significant determinant of
interbank claims but not of C & I loans. This lack
of a statistical relationship was somewhat surprising given how actively Japanese banks compete for domestic business lending opportunities
in the United States, including purchasing loans
from U.S. banks. The lack of a relationship may
result from a strong correlation between U.S.
GNP and other variables in the model.
In summary, U.S. activities of Japanese banks
during this period appeared strongly related to
Japanese domestic financial variables as well as
to conditions in the U.S. market. Commercial
and industrial loans at these offices responded
both to expansions in Japanese trade and to
restraints on domestic Japanese interest rates,
The U.K. and U.S. Activities of Japanese Banks, 1980-88
while interbank trading at U.S. offices of
Japanese banks responded to both price and
quantity restraints on domestic Japanese banking
activity.
SUMMARY
AND
CONCLUSIONS
Japanese banks have become active competitors
in major international markets. Their competitive
success appears to result from a variety of factors, including the expansion of Japan as a trading nation and the ability of Japanese banks to
fund their activities at very attractive rates in
some markets. Japanese bank expansion in the
U.K. and U.S. markets is also influenced by
local market opportunities. Besides these factors, activities in both markets appear in part
directed toward operating in less regulated environments, particularly with respect to funding. In
response to domestic restrictions on prices and
on the volume of certain activities during most of
the 1980-88 period, Japanese banks appear to
49
have shifted some of their commercial lending, as
well as some of their interbank trading, to the
United States. The U.K. branches appear to
have been used as a flexible net source of funding
for loans by the home offices.
The implications of these findings are twofold.
First, to the extent that Japanese bank activities
in these two centers have represented a response
to domestic Japanese restraints, the concern in
other countries about local market penetration
based on percentages of loans or assets in these
two markets may have been overstated. Second,
the continued deregulation of banking in Japan,
such as the removal of the restraints on interest
rates in the interbank market for call money in
late 1988, should lead to some repatriation of
what is currently counted as international banking business back to the domestic banking market in Japan. If such a repatriation occurs, it
could lead to a slowing or possible reversal of the
trend toward an increase in the share of Japanese
banks in measured international banking aggregates.
The bibliography appears on the following
page.
50
Federal Reserve Bulletin • February 1990
SELECTED
BIBLIOGRAPHY
Cargill, Thomas F., and Shoichi Royama. The
Transition of Finance in Japan and the United
States: A Comparative Perspective. Hoover
Institution Press, 1988.
Dohner, Robert S., and Henry S. Terrell. "The
Determinants of the Growth of Multinational
Banking Organizations: 1972-86," International Finance Discussion Papers 326. Washington: Board of Governors of the Federal
Reserve System, June 1988.
Euromoney. "Japanese Banks in the U.S.: On
the Same Team," Special Supplement to Euromoney, July 1988, pp. 1-48.
Hanley, Thomas H. The Japanese Banks: Positioning For Competitive Advantage. New
York: Salomon Brothers, 1986.
International Monetary Fund. World Economic
Outlook. Washington: IMF, 1989.
Japan Economic Institute. Japanese Banks in the
United States. Washington: JEJ, 1988.
Nakao, Shigeo. "Euro-Dollar Borrowing of Japan through London Financial Market,"
Osaka City University Economic Review, vol.
24 (January 1989), pp. 25-46.
Poulsen, Annette B. "Japanese Bank Regulation
and the Activities of U.S. Offices of Japanese
Banks," Journal of Money, Credit, and Banking, vol. 18 (August 1986), pp. 366-73.
Salomon Brothers. Japanese Banks—At a
Crossroads? New York: Salomon Brothers,
1988.
Suzuki, Yoshio, ed. The Japanese Financial
System. New York: Oxford University Press,
1987.
Money, Finance, and Macroeconomic
Performance in Japan. New Haven: Yale University Press, 1986.
Terrell, Henry S. "U.S. Banks in Japan and
Japanese Banks in the United States: An Empirical Comparison," Federal Reserve Bank of
San Francisco, Economic Review (Summer
1979), pp. 18-30.
Walton, R.J., and Dermot Trimble. "Japanese
Banks in London," Bank of England Quarterly Bulletin, vol. 27 (November 1987), pp.
518-24.
Zimmerman, Gary C. "The Growing Presence of
Japanese Banks in California," Federal Reserve Bank of San Francisco, Economic Review (Summer 1989), pp. 3-17.
51
Industrial Production
Released for publication December 15
the settlement in late November of the strike at a
major aircraft producer also contributed to higher
production last month. Excluding the impact of
these events, the total index would have been
little changed in both October and November. At
141.5 percent of the 1977 annual average, industrial production in November was 1.2 percent
higher than it was a year earlier. Manufacturing
output also posted a small rise in November, and
Industrial production edged up in November following revised declines of 0.6 percent in October
and 0.3 percent in September. The estimate for
November includes a rebound in the output of
computers and related parts, industries in which
production apparently had been disrupted in October by the California earthquake. Additionally,
Ratio scale, 1977=100
160
140
Manufacturing
^^ *
Nondurable
z
120
—
Durable
160
140
**
100
i
i
1
1
1
80
180
_ Intermediate
160
Consumer Goods
Nondurable
-
_^ V^
-
Business
supplies
Products
140
/
—
_ ,—
_
Construction
supplies
120
Durable
S
- —
100
'
,
i
,
1
1
1
1
80
1
1
1
1
1
Motor Vehicles and Parts
150
135
120
90
75
60
1983
1985
1987
1989
All series are seasonally adjusted. Latest series: November.
1983
1985
1987
1989
52
Federal Reserve Bulletin • February 1990
1977 = 100
Percentage change from preceding month
1989
1989
Group
Nov.
Oct.
July
Aug.
Sept.
Oct.
Nov.
Percentage
change,
Nov. 1988
to Nov.
1989
Major market groups
Total industrial production
141.3
141.5
-.1
.4
-.3
-.6
.1
1.2
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..,
Defense and space
Intermediate products..
Construction supplies.
Materials
150.9
148.8
139.5
126.4
144.3
164.1
175.7
158.4
141.4
128.2
151.5
149.4
139.2
125.7
144.2
166.2
177.1
158.5
142.0
128.0
-.4
-.7
-.9
-2.7
-.3
-.6
.5
.4
.7
.4
.5
.6
.4
1.1
.2
.8
.4
.0
-.5
.4
-.3
-.4
-.2
-.8
-.1
-.7
-.3
.1
-.6
-.3
-.8
-1.2
.4
-1.0
.9
-2.7
-3.5
.4
.5
-.2
.4
.4
-.2
-.5
-.1
1.3
.8
.1
.4
-.2
2.1
1.8
1.7
-2.7
3.2
3.1
-2.8
2.8
.9
-.3
-.8
-1.8
.5
.4
.7
.2
.5
-.2
.1
-.2
1.4
-.1
3.4
-.9
1.0
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
147.5
144.3
152.0
103.6
115.1
-.1
-.4
.2
.6
-.3
147.8
145.1
151.7
103.7
114.8
.5
.7
.2
.3
-.5
-.4
-.7
.1
.7
.9
NOTE. Indexes are seasonally adjusted.
factory capacity utilization slipped further to 82.7
percent. Detailed data for capacity utilization are
shown separately in "Capacity Utilization," Federal Reserve monthly statistical release G.3.
In market groups, production of consumer
goods remained sluggish in November, owing
mainly to continued weakness in durables. Auto
assemblies dropped to an annual rate of 6.2
million units from the rate of 6.7 million units in
October; however, output of light trucks rose
sharply, offsetting the decline in autos. Production of home goods declined further as the output
of appliances was curtailed again. Output of
nondurable consumer goods was about unchanged after having posted a large rise in October. Production of business equipment in November regained about one-half of the sharp drop
Total industrial production—Revisions
Estimates as shown last month and current estimates
Index (1977=100)
Month
Percentage change
from previous
months
Previous
Aug
Sept
Oct
Nov
Current
Previous
Current
142.4
142.4
141.4
142.5
142.1
141.3
141.5
.4
.0
-.7
.4
-.3
-.6
.1
in October, reflecting the rebounds in computers
and aircraft. Output of most major components
of business equipment has changed little, on
balance, since June.
Output of construction supplies is estimated to
have increased moderately in both October and
November, continuing the upward trend that
began last summer. Production of materials declined again in November, mainly because of
further cutbacks in parts for consumer durables,
basic metals, and textiles.
In industry groups, the small gain in manufacturing production in November resulted from the
rebound in computing equipment and aircraft,
which more than offset sharp declines in primary
metals, textiles, and apparel; output of motor
vehicles and parts decreased slightly. Since midyear, most durable industries have weakened,
with particularly large cutbacks in motor vehicles
and related industries. Among nondurables, output in most industries, especially paper and printing, has continued to increase, on balance, since
June. However, production of apparel and textiles has weakened significantly. Outside of manufacturing, output of mining edged up in November as oil and gas extraction rose, but coal mining
was about unchanged; production at utilities was
down slightly.
53
Announcements
STATEMENT BY CHAIRMAN
ON NOMINATION OF DAVID
GREENSPAN
MULLINS
Chairman Alan Greenspan of the Federal Reserve Board issued the following statement on
December 8, 1989:
"I have had the pleasure of working closely
with David Mullins over the past year. He is
extraordinarily capable and will make a superb
governor. I trust the Senate will move expeditiously on his nomination."
REGULATION
B:
AMENDMENTS
The Federal Reserve Board issued on December
4, 1989, amendments to its Regulation B (Equal
Credit Opportunity). The amendments implement requirements established by the Women's
Business Ownership Act of 1988 that creditors
provide written notices about credit denials and
keep records of loan applications from businesses. These rules become effective April 1,
1990.
The revisions to the regulation will require
creditors to give written notice of the right to
obtain reasons for a credit denial when the business applicant has gross revenues of $1 million
or less. The changes will also require the retention of records on business credit applications for
twelve months.
The rules correspond closely to the rules that
govern consumer credit applications. A creditor
that follows the provisions for consumer credit
would be in full compliance with the act and with
the regulation.
For business applicants with revenues of more
than $1 million, the modified rules still apply.
Lenders also have the option of following the
rules applicable to businesses with revenues of
$1 million or less in all cases.
REGULATION
C:
AMENDMENTS
The Federal Reserve Board revised on December 12, 1989, its Regulation C (Home Mortgage
Disclosure) to implement amendments that were
contained in the Financial Institutions Reform,
Recovery and Enforcement Act (FIRREA). The
amendments are effective January 1, 1990.
The amendments to the regulation accomplish
the following:
• Expand the coverage to include mortgage
lenders that are not affiliated with depository
institutions or holding companies.
• Require institutions to report data regarding
applications for mortgage and home improvement loans in addition to data about loan originations and purchases.
• Require most institutions to report the race,
sex, and income of loan applicants.
The Board has also adopted a new register
format for Home Mortgage Disclosure Act reporting. The new loan-application register form
that institutions are required to fill out will log
loan applications, loans actually made, and loans
purchased. The first set of reports in this new
format will be due March 1, 1991.
DECREASE IN
TRANSACTION
RESERVABLE
ACCOUNTS
The Federal Reserve Board announced on December 7, 1989, a decrease from $41.5 million to
$40.4 million in the net transaction accounts to
which a 3 percent reserve requirement will apply
in 1990.
The Board also left the amount of reservable
liabilities that are exempt from reserves at $3.4
million of total reservable liabilities.
Additionally, the Board increased the deposit
cutoff level, which separates weekly reporting
institutions from quarterly reporters, from $42.1
54
Federal Reserve Bulletin • February 1990
million to $43.4 million. Institutions with total
reservable liabilities below the exemption level
of $3.4 million are excused from reporting, even
on a quarterly basis, if their deposits can be
estimated from other sources.
These adjustments took effect beginning December 19, 1989.
PROPOSED
ACTIONS
The Federal Reserve Board issued for public
comment on December 4, 1989, proposed revisions to its staff commentary to Regulation B
(Equal Credit Opportunity). Comment is requested by February 7, 1990.
The Federal Reserve Board issued for public
comment on December 8, 1989, proposed
amendments to Regulation CC (Availability of
Funds and Collection of Checks), which implements the Expedited Funds Availability Act. The
proposed amendments would shorten the time
requirement for sending a notice of nonpayment
to a depository bank and would make other
technical and clarifying amendments to Regulation CC.
The Board also issued for public comment
proposed modifications to the Federal Reserve's
notice of nonpayment service, which would take
effect only if the Board ultimately adopts an
amendment to Regulation CC that shortens the
time requirement for providing notice of nonpayment.
Comment on the amendments to Regulation
CC and modifications to the notice of nonpayment service is requested by February 16, 1990.
Additionally, the Board has issued for public
comment a proposed preemption determination
regarding California's funds availability law.
Comment on the preemption determination is
requested by January 16, 1990.
The Federal Reserve Board issued for public
comment on December 12, 1989, a proposal to
revoke current exemptions from compliance with
Regulation C (Home Mortgage Disclosure) for
state-chartered institutions in Massachusetts,
Connecticut, and New Jersey. The Board had
issued exemptions for institutions in these states
because they were subject to state laws that were
substantially similar to the old requirements.
Comment is requested by January 15, 1990.
The Federal Reserve Board requested on December 29, 1989, public comment on proposed
transition capital standards for state member
banks and bank holding companies through the
end of 1990. The proposed guidelines also set
forth the Board's preliminary views on the appropriate leverage standard to be applied to
banking organizations in conjunction with the
risk-based capital framework after year-end
1990. Comments should be received by the
Board on this matter no later than March 9, 1990.
The Board had announced its proposed transition capital standards, on November 22, 1989,
and had indicated that it would seek public
comment on the standards by year-end.
55
Record of Policy Actions of the
Federal Open Market Committee
MEETING
HELD ON NOVEMBER
Domestic
Policy
14,
1989
Directive
The information reviewed at this meeting suggested that the economy had continued to expand, though unevenly and at a somewhat slower
pace than earlier in the year. While the serviceproducing sector appeared to be growing moderately, manufacturing had been weak, owing to
sluggish demand and to strikes and other disruptions to production. Price increases had been
smaller since midyear, but there had been no
abatement of wage inflation.
Total nonfarm payroll employment increased
appreciably in October, but its growth had been
more moderate on balance over the past several
months, especially in the private sector. Widespread job gains were apparent in the serviceproducing sector, but manufacturing payrolls declined further as a result of continued weakness
in motor vehicles and other durable goods industries. In the public sector, hiring by state and
local governments was robust in October and had
contributed substantially to total employment
growth over the past three months. The civilian
unemployment rate remained within the narrow
range around 5VA percent that had prevailed since
early 1989.
After three months of modest increases on
balance, industrial production was depressed noticeably in October by strike activity and other
disruptions; adjusted for these temporary influences, production was about unchanged. Output
of consumer goods declined as the production of
appliances and motor vehicles, particularly light
trucks, fell sharply. Production of business
equipment dropped substantially, reflecting the
strike at a major aircraft manufacturer and the
earthquake in northern California. Total industrial capacity utilization dropped in October,
mostly because of the effects of temporary disruptions to production.
Retail sales fell appreciably in October from
upward revised levels for August and September,
as purchases of motor vehicles dropped sharply.
Housing starts fell further in September, and the
multifamily component registered its lowest level
since mid-1982. For the third quarter as a whole,
starts were about unchanged from their reduced
second-quarter average.
Indicators of business capital spending continued to suggest that growth had moderated from
its rapid pace in the first half of the year, primarily as a result of slower growth in outlays for
information-processing equipment. Shipments of
nondefense capital goods edged lower in September, and orders data suggested that equipment
outlays would remain sluggish in coming months.
Nonresidential construction activity also fell,
largely owing to a decline in commercial structures other than office buildings, and construction permits continued the downtrend evident
over the past few months. The sparse data available on business inventories for September indicated that manufacturers' stocks had declined
somewhat in that month after a sizable gain on
balance over the previous two months. At the
wholesale level, inventories fell for a second
straight month.
The nominal U.S. merchandise trade deficit
increased in August to its highest level thus far
this year, as the value of non-oil imports surged.
For July and August combined, the value of
imports—especially of consumer goods and machinery—was somewhat above the secondquarter level. The quantity of imports rose even
more strongly over that two-month period as
import prices declined on average. The value of
exports in the July-August period was somewhat
below the level in the second quarter; the quantity of exports rose appreciably, but the prices
56
Federal Reserve Bulletin • February 1990
received fell. In most foreign industrial countries, indicators of economic activity suggested
that the slower pace of the second quarter had
continued in the third quarter. In Germany,
however, industrial production had rebounded
strongly from its second-quarter decline.
Producer prices for finished goods rose further
in October, boosted by sizable jumps in the
prices of a variety of food products. Excluding
food and energy items, prices for finished goods
were little changed. Consumer prices rose
slightly in September after registering little
change over the previous two months. Energy
prices fell further, while a sharp increase in
apparel prices contributed to a rebound in the
prices of consumer goods. The latest data on
labor compensation suggested no easing of labor
cost pressures. Average hourly earnings jumped
in October, although the year-over-year change
remained within the range of recent experience.
In the broader-based employment cost index,
growth of wages and salaries continued to show
a persistent updrift through the third quarter on a
year-over-year basis in most industry and occupational groupings; growth of benefits had
slowed but remained at a high rate mainly because of rising health insurance costs.
At its meeting on October 3, the Committee
adopted a directive that called for maintaining
the existing degree of pressure on reserve positions and that provided for giving particular
weight to developments that might require some
slight easing during the intermeeting period. The
Committee agreed that slightly greater reserve
restraint might be acceptable, or slightly lesser
reserve restraint would be acceptable, in the
intermeeting period depending on progress
toward price stability, the strength of the business expansion, the behavior of the monetary
aggregates, and developments in foreign exchange and domestic financial markets. The contemplated reserve conditions were expected to
be consistent with growth of M2 and M3 over the
period from September through December at
annual rates of about 6V2 percent and 4V2 percent
respectively.
After the Committee meeting, open market
operations were directed initially toward maintaining the existing degree of pressure on reserve
positions. For a few days after the steep drop in
stock prices on October 13, while financial markets remained highly sensitive and volatile, the
Manager for Domestic Operations followed an
accommodative approach in supplying reserves.
Around the same time, a decision was made
under the provisions of the October 3 directive to
implement a slight easing of reserve conditions
on a more permanent basis; a further slight
easing was effectuated during the first part of
November. These decisions were made in light of
information that suggested some increase in the
risk of a pronounced weakening in the growth of
business activity. To reflect a decline in seasonal
borrowing, several technical reductions also
were made during the period in the assumed level
of adjustment plus seasonal borrowing used in
constructing the target paths for the provision of
reserves, and actual borrowing fell from about
$635 million in the first full maintenance period
after the early October meeting to around $200
million in the week prior to this meeting. The
federal funds rate declined from slightly above 9
percent at the time of the October meeting to
around 8V2 percent more recently.
Most short- and intermediate-term interest
rates fell by amounts comparable to the decline
in the federal funds rate, though Treasury bill
rates dropped by less as a result of disruptions
and supply pressures associated in part with
delays in debt-ceiling legislation. Yields on most
bonds and fixed-rate mortgages also fell somewhat less than the federal funds rate. Rates on
lower-quality bonds rose appreciably, and stock
prices were considerably lower on balance in this
period. In the days following the October 13
break in stock prices, the Committee held a
number of telephone conferences to assess developments in financial markets. At these and a
subsequent consultation, the Committee also discussed the decisions to ease reserve conditions
during the intermeeting period.
In foreign exchange markets, the tradeweighted value of the dollar in terms of the other
G-10 currencies declined slightly further on balance over the intermeeting period. During the
first part of the period, the dollar had appreciated
somewhat despite substantial intervention sales
of dollars by central banks and increases in
official interest rates in a number of major industrial countries. Following the drop in stock prices
Record of Policy Actions of the Federal Open Market Committee
in mid-October, the dollar moved lower. Expectations of further increases in interest rates
abroad and of lower rates in the United States
apparently contributed to the dollar's decline.
Expansion of the monetary aggregates picked
up in October. A surge in demand deposits in
early October contributed to considerable
strength in Ml. The effects of this acceleration
were offset to an extent by slower expansion of
the retail-type components of M2, possibly reflecting the waning effects of earlier declines in
market interest rates on the opportunity costs of
holding liquid savings-type deposits included in
M2. The faster growth of M3, while remaining
well below that of M2, reflected an accelerated
issuance of large-denomination CDs by banks to
help finance substantially stronger expansion of
bank credit. Runoffs of assets at capital-deficient
thrift institutions and associated declines in RPs
and large-denomination CDs continued to restrain growth of M3. For the period from the
fourth quarter of 1988 through October, growth
of M2 was within the lower half of the Committee's annual range, while expansion of M3 was
near the lower end of its range.
The staff projection prepared for this meeting
suggested that the economy was likely to grow at
a slower pace over the next several quarters. The
outlook for the near term was clouded by uncertainties associated with the effects of a major
hurricane, a severe earthquake, and a strike at a
large manufacturer of aircraft. On balance, those
developments were projected to curb overall
growth somewhat in the current quarter but to
provide a temporary boost in the first quarter of
next year. The projection assumed that the budget deficit would decline moderately and that net
exports would make little contribution to domestic growth in 1990. Consumer demand was expected to buoy the near-term expansion of the
economy, reflecting the strong growth of the real
income of consumers in recent months and indications of a continued high level of consumer
confidence. Over the rest of the projection period, however, steadily mounting slack in labor
markets was expected to exert a restraining
effect on consumer demand. The projection continued to indicate substantial slackening in the
expansion of business capital spending from the
pace in the first half of this year. With pressures
57
on labor and other production resources expected to ease only marginally, little improvement was anticipated in the underlying trend of
inflation over the next several quarters.
In the Committee's discussion of the economic
situation and outlook, members commented that
broad economic indicators and local conditions
in different parts of the country pointed on balance to a sustained expansion in business activity, though at a somewhat slower pace than in
recent quarters. Views differed to some extent
regarding the risks of a different outcome, reflecting uncertainties concerning developments
in such key sectors of the economy as business
investment and net exports and in the demand for
housing and consumer durables, notably motor
vehicles. While some members regarded those
risks as about evenly balanced in both directions,
a number stressed that a period of minimal
growth or even a downturn in activity could not
be ruled out; others saw greater odds that the
rate of economic growth and levels of resource
utilization might be closer to the economy's
potential. With regard to the outlook for inflation, several members observed that the prospects for significant progress were limited for the
next several quarters, especially in light of the
tendency for increases in labor costs to remain in
a relatively high range. Other members expressed greater confidence that appreciable progress would be made, partly in the context of
reduced growth in economic activity.
In their discussion of specific developments
relating to the outlook for overall business activity, members noted that economic conditions had
softened in some parts of the country, with
manufacturing tending to weaken more generally, particularly in the automotive and automotive-related sectors. Many business contacts appeared to be less optimistic about prospects for
sales and more cautious about investment decisions. Real estate markets and nonresidential
construction ranged from quite weak to moderately strong in different sections of the country.
On balance, local business conditions were characterized by steady activity or slow growth in
many regions to continued fairly vigorous expansion in some others.
With regard to broad indicators of economic
performance, members cited the continuing
58
Federal Reserve Bulletin • February 1990
weakness, but absence of further deterioration,
in new orders. Order backlogs, while below
earlier highs, appeared consistent with sustained
production. From a different perspective, it was
noted that commodity prices remained high and
did not suggest a slowdown in economic activity.
Business investment was an area of major uncertainty in the economic outlook. Developments
that could have adverse implications for investment included a squeeze on profit margins from
rising costs, both interest and labor expenses, on
the one hand and from competitive pressures that
restrained price increases on the other. On the
foreign side, the earlier appreciation of the dollar
had arrested the improvement in the nation's
trade balance, but further gains still might be
forthcoming at current dollar levels, given expectations of relatively strong growth in business
activity in foreign industrial countries. Such a
development would have favorable implications
for the manufacturing sector and for the domestic
expansion more generally.
Views on the outlook for inflation differed to
some extent, depending in part on somewhat
varying expectations with regard to the level of
business activity and associated pressures on
production resources. Several members continued to expect that, in light of the behavior of
labor costs, little or no progress would be made
in reducing inflation over the quarters ahead,
even assuming relatively slow growth in business
activity. Labor markets might be softening in
some areas, but data on labor compensation
showed no changes from earlier trends, and some
members remained concerned that underlying
demand conditions would be associated with
persisting upward pressures on labor costs.
Other members were more optimistic. They
noted that the behavior of prices had been better
than might have been anticipated in recent quarters, apparently reflecting a variety of factors
that were tending to arrest the momentum of
inflation, including ongoing efforts to hold down
costs in the context of strong competition in
international and domestic markets.
In the Committee's discussion of policy for the
weeks immediately ahead, nearly all of the members supported a proposal to maintain unchanged
conditions of reserve availability. A majority
favored and the others could accept a related
suggestion to retain the current asymmetry
toward ease that had been incorporated in recent
directives. While current indicators of economic
activity suggested a somewhat weaker expansion, most of the members agreed that a steady
policy course was desirable at this point, especially in light of the stimulus provided by recent
easing actions, whose effects on the economy
would be felt only with some lag. In reconciling
concerns about a cumulative weakening in the
economy against a desire for progress in the fight
against inflation, a steady policy seemed to give
reasonable prospects for achieving both sustained expansion and declining inflation. Some
members commented that these objectives could
be attained with less pressure in credit markets if
the federal budget deficit were to turn more
definitely downward.
In the course of the Committee's discussion, a
number of members observed that, as a result of
the pickup in M2 over the course of the past
several months, growth of the monetary aggregates seemed consistent with the Committee's
long-run goals, and thus money growth did not in
itself suggest the need for any current adjustment
in reserve conditions. According to a staff analysis prepared for this meeting, growth of M2 was
likely to remain relatively brisk, assuming unchanged reserve conditions and steady interest
rates. Growth of this aggregate would be buoyed
by the further decline that had occurred recently
in market interest rates and in the related opportunity costs of holding M2 balances, and for the
year as a whole M2 was likely to expand at a rate
just below the midpoint of the Committee's range
for 1989. M3 was projected to continue to grow at
a slower pace than M2, reflecting the ongoing
though waning effects on some M3 components
of the disposition of assets by undercapitalized
thrift institutions and the funding made available
through RTC resolutions; for the year, the
growth of M3 was projected to be somewhat
above the lower bound of the Committee's range.
Turning to the instruction in the directive
relating to possible adjustments in the degree of
reserve pressure during the intermeeting period,
a majority of the members expressed a preference for retaining the existing asymmetry that
would permit any adjustments to be made more
readily toward easing than toward firming. In this
Record of Policy Actions of the Federal Open Market Committee
view, current tendencies toward weakening in
the economy outweighed the sources of strength,
and some further easing might be needed if the
incoming information on business activity suggested more softening than most members currently expected. In these circumstances, an easing would be consistent with the Committee's
long-run inflation objective. Other members,
who saw the risks to the expansion as more
evenly balanced, indicated a preference for a
symmetric instruction in the directive; however,
they could accept retention of the bias toward
ease contained in the October 3 directive. Some
of these members nonetheless stressed the desirability of not overreacting to possible indications
of slower economic growth in the period ahead
for fear of creating financial conditions and stimulating monetary growth that would prove to be
inconsistent with the Committee's long-run goal
of price stability. In light of these considerations
and in the context of the recent easing actions,
the members generally endorsed or found acceptable a proposal to approach with caution any
further easing in the weeks ahead.
At the conclusion of the Committee's discussion, all but one of the members indicated that
they preferred or could accept a directive that
called for maintaining the existing degree of
pressure on reserve positions and that provided
for giving greater weight to developments that
might require some slight easing during the intermeeting period. Accordingly, slightly greater reserve restraint might be acceptable during the
intermeeting period, while some slight easing of
reserve restraint would be acceptable, depending
on progress toward price stability, the strength of
the business expansion, the behavior of the monetary aggregates, and developments in foreign
exchange and domestic financial markets. The
reserve conditions contemplated by the Committee were expected to be consistent with growth
of M2 and M3 at annual rates of around IV2
percent and AVi percent respectively over the
three-month period from September to December. The intermeeting range for the federal funds
rate, which provides one mechanism for initiating consultation of the Committee when its
boundaries are persistently exceeded, was left
unchanged at 7 to 11 percent.
At the conclusion of the meeting, the following
59
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests
continuing expansion in economic activity, though at a
somewhat slower pace than earlier in the year. Total
nonfarm payroll employment increased appreciably in
October, but on balance its growth has been more
moderate over the past several months, especially in
the private sector. The civilian unemployment rate has
remained around 5V4 percent. Strike activity and other
disruptions depressed industrial production noticeably
in October. Retail sales fell appreciably in October,
reflecting a sharp drop in purchases of motor vehicles,
but some upward revisions were made for August and
September. Housing starts fell further in September
and for the third quarter as a whole were about
unchanged from their reduced second-quarter average. Indicators of business capital spending suggest
slower growth after a substantial increase in the first
half of the year. The nominal U.S. merchandise trade
deficit widened in August from its July rate as non-oil
imports increased markedly. Consumer prices have
risen more slowly on balance since midyear, partly
reflecting sharp reductions in energy prices, but the
latest data on labor compensation suggest no significant change in prevailing trends.
Most interest rates have declined appreciably since
the Committee meeting on October 3. In foreign exchange markets, the trade-weighted value of the dollar
in terms of the other G-10 currencies declined slightly
on balance over the intermeeting period.
M2 continued to grow fairly briskly in October,
largely reflecting strength in its Ml and other liquid
components; thus far this year M2 has expanded at a
pace somewhat below the midpoint of the Committee's annual range. Growth of M3 picked up in October but has remained much more restrained than that
of M2, as assets of thrift institutions and their associated funding needs apparently continued to contract;
for the year to date, M3 has grown at a rate around the
lower bound of the Committee's annual range.
The Federal Open Market Committee seeks monetary and financial conditions that will foster price
stability, promote growth in output on a sustainable
basis, and contribute to an improved pattern of international transactions. In furtherance of these objectives, the Committee at its meeting in July reaffirmed
the ranges it had established in February for growth of
M2 and M3 of 3 to 7 percent and 31/2 to 7V2 percent,
respectively, measured from the fourth quarter of 1988
to the fourth quarter of 1989. The monitoring range for
growth of total domestic nonfinancial debt also was
maintained at 6V2 to 10!/2 percent for the year. For
1990, on a tentative basis, the Committee agreed in
July to use the same ranges as in 1989 for growth in
each of the monetary aggregates and debt, measured
from the fourth quarter of 1989 to the fourth quarter of
1990. The behavior of the monetary aggregates will
60
Federal Reserve Bulletin • February 1990
continue to be evaluated in the light of movements in
their velocities, developments in the economy and
financial markets, and progress toward price level
stability.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. Taking account of progress toward price stability, the strength
of the business expansion, the behavior of the monetary aggregates, and developments in foreign exchange
and domestic financial markets, slightly greater reserve restraint might or slightly lesser reserve restraint
would be acceptable in the intermeeting period. The
contemplated reserve conditions are expected to be
consistent with growth of M2 and M3 over the period
from September through December at annual rates of
about IVi and M i 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 7 to 11 percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Guffey, Johnson, Keehn, Kelley,
LaWare, Melzer, and Syron. Vote against this
action: Ms. Seger.
Ms. Seger dissented because she felt that a
further easing of monetary policy was needed at
this time. In her view, the persisting weakness in
the manufacturing sector, most notably in motor
vehicles, along with a likely softening in construction activity and capital expenditures posed
a substantial risk to the economy. In these circumstances, a moderate easing of policy could
help forestall a slide into recession in the months
ahead without adding to inflationary pressures.
61
Legal Developments
AMENDMENT
TO REGULATION
B
The Board of Governors is amending 12 C.F.R. Part
202, its Regulation B (Equal Credit Opportunity). The
amendments mandate that creditors give written notice
to business applicants of the right to a written statement
of reasons for a credit denial. Creditors are also required to retain records relating to business credit
applications for at least one year.
The revisions to Regulation B implement the statutory amendments and define coverage based on a credit
applicant's gross revenues. Creditors must provide
written notices and retain records in accordance with
the new law on credit applications involving businesses
with gross revenues of $1 million or less. Applications
from businesses with gross revenues greater than $1
million and applications for trade credit and similar
types of business credit are subject to modified notice
and recordkeeping rules provided in Regulation B.
Business credit transactions, regardless of the revenue
size of the business, remain covered by all other relevant provisions of the Equal Credit Opportunity Act
and Regulation B.
Effective December 8, 1989, but mandatory compliance is not required until April 1, 1990, 12 C.F.R. Part
202 is amended as follows:
Part 202—Equal Credit Opportunity
1. The authority citation for Part 202 is revised to read
as follows:
Authority: 15 U.S.C. 1691-1691f.
2. Section 202.2 is amended by revising paragraph (g)
to read as follows:
Section 202.2—Definitions
(g) Business credit refers to extensions of credit primarily for business or commercial (including agricultural) purposes, but excluding extensions of credit of
the types described in section 202.3(a), (b), and (d).
3. Section 202.3 is amended by removing paragraph (d)
and redesignating paragraph (e) as paragraph (d).
4. Section 202.9 is amended by adding paragraph
(a)(3). Paragraphs (a)(1) and (2) are republished to read
as follows:
(1) Notification of action taken, ECOA notice, and
statement of specific reasons—(1) When notification
is required. A creditor shall notify an applicant of
action taken within:
(i) 30 days after receiving a completed application
concerning the creditor's approval of, counteroffer to, or adverse action on the application;
(ii) 30 days after taking adverse action on an
incomplete application, unless notice is provided
in accordance with paragraph (c) of this section;
(iii) 30 days after taking adverse action on an
existing account; or
(iv) 90 days after notifying the applicant of a
counteroffer if the applicant does not expressly
accept or use the credit offered.
(2) Content of notification when adverse action is
taken. A notification given to an applicant when
adverse action is taken shall be in writing and shall
contain: a statement of the action taken; the name
and address of the creditor; a statement of the
provisions of section 701(a) of the Act; the name and
address of the Federal agency that administers compliance with respect to the creditor; and either:
(i) A statement of specific reasons for the action
taken; or
(ii) A disclosure of the applicant's right to a
statement of specific reasons within 30 days, if the
statement is requested within 60 days of the
creditor's notification. The disclosure shall include the name, address, and telephone number of
the person or office from which the statement of
reasons can be obtained. If the creditor chooses to
provide the reasons orally, the creditor shall also
disclose the applicant's right to have them confirmed in writing within 30 days of receiving a
written request for confirmation from the applicant.
(3) Notification to business credit applicants. For
business credit, a creditor shall comply with the
requirements of this paragraph in the following
manner:
(i) With regard to a business that had gross
62
Federal Reserve Bulletin • February 1990
revenues of $1,000,000 or less in its preceding
fiscal year (other than an extension of trade credit,
credit incident to a factoring agreement, or other
similar types of business credit), a creditor shall
comply with paragraphs (a)(1) and (2), except
that:
(A) The statement of the action taken may be
given orally or in writing, when adverse action
is taken;
(B) Disclosure of an applicant's right to a statement of reasons may be given at the time of
application, instead of when adverse action is
taken, provided the disclosure is in a form the
applicant may retain and contains the information required by paragraph (a)(2)(ii) and the
ECO A notice specified in paragraph (b)(1) of
this section;
(C) For an application made solely by telephone, a creditor satisfies the requirements of
this paragraph by an oral statement of the
action taken and of the applicant's right to a
statement of reasons for adverse action.
(ii) With regard to a business that had gross
revenues in excess of $1,000,000 in its preceding
fiscal year or an extension of trade credit, credit
incident to a factoring agreement, or other similar
types of business credit, a creditor shall:
(A) Notify the applicant, orally or in writing,
within a reasonable time of the action taken;
and
(B) Provide a written statement of the reasons
for adverse action and the ECOA notice specified in paragraph (b)(1) of this section if the
applicant makes a written request for the reasons within 60 days of being notified of the
adverse action.
5. Section 202.12 is amended by revising paragraph
(b)(1) introductory text and paragraphs (b)(2)-(4) and
adding paragraph (b)(5) to read as follows:
an applicant of adverse action regarding an existing
account, the creditor shall retain as to that account,
in original form or a copy thereof:
(i) Any written or recorded information concerning the adverse action; and
(ii) Any written statement submitted by the applicant alleging a violation of the act or this regulation.
(3) Other applications. For 25 months (12 months
for business credit) after the date that a creditor
receives an application for which the creditor is not
required to comply with the notification requirements of section 202.9, the creditor shall retain all
written or recorded information in its possession
concerning the applicant, including any notation of
action taken.
(4) Enforcement proceedings and investigations. A
creditor shall retain the information specified in this
section beyond 25 months (12 months for business
credit) if it has actual notice that it is under investigation or is subject to an enforcement proceeding for
an alleged violation of the act or this regulation by
the Attorney General of the United States or by an
enforcement agency charged with monitoring that
creditor's compliance with the act and this regulation, or if it has been served with notice of an action
filed pursuant to section 706 of the Act and section
202.14 of this regulation. The creditor shall retain
the information until final disposition of the matter,
unless an earlier time is allowed by order of the
agency or court.
(5) Special rule for certain business credit applications. With regard to a business with gross revenues
in excess of $1,000,000 in its preceding fiscal year,
or an extension of trade credit, credit incident to a
factoring agreement or other similar types of business credit, the creditor shall retain records for at
least 60 days after notifying the applicant of the
action taken. If within that time period the applicant
requests in writing the reasons for adverse action or
that records be retained, the creditor shall retain
records for 12 months.
Section 202.12—Record Retention
(b) Preservation of records—
(1) Applications. For 25 months (12 months for
business credit) after the date that a creditor notifies
an applicant of action taken on an application or of
incompleteness, the creditor shall retain in original
form or a copy thereof:
(2) Existing accounts. For 25 months (12 months for
business credit) after the date that a creditor notifies
5. Appendix C is amended by revising the first and last
paragraph of the introduction, and by adding sample
forms C-7 and C-8 to read as follows:
APPENDIX
C—SAMPLE
NOTIFICATION
FORMS
This appendix contains eight sample notification
forms. Forms C-l through C-4 are intended for use in
notifying an applicant that adverse action has been
taken on an application or account under section
Legal Developments
202.9(a)(1) and (2)(i) of this regulation. Form C-5 is a
notice of disclosure of the right to request specific
reasons for adverse action under section 202.9(a)(1)
and (2)(ii). Form C-6 is designed for use in notifying an
applicant, under section 202.9(c)(2), that an application is incomplete. Forms C-7 and C-8 are intended for
use in connection with applications for business credit
under section 202.9(a)(3).
A creditor may design its own notification forms or
use all or a portion of the forms contained in this
appendix. Proper use of Forms C-l through C-4 will
satisfy the requirements of section 202.9(a)(2)(i).
Proper use of Forms C-5 and C-6 constitutes full
compliance
with
sections
202.9(a)(2)(ii)
and
202.9(c)(2), respectively. Proper use of Forms C-7 and
C-8 will satisfy the requirements of sections
202.9(a)(2)(i) and (ii), respectively, for applications for
business credit.
APPENDIX A—FEDERAL
AGENCIES
63
ENFORCEMENT
Appendix A is amended by removing the reference to
"Savings Institutions Insured by the FSLIC and Members of the FHLB System," the parenthetical information that follows, and the next full sentence, and
adding the following words in place thereof:
Savings institutions insured under the Savings Association Insurance Fund of the FDIC and federally-chartered savings banks insured under the Bank
Insurance Fund of the FDIC (but not including
state-chartered savings banks insured under the
Bank Insurance Fund).
The District Director of the Office of Thrift Supervision in the District in which the institution is
located.
Part 205—Electronic Fund Transfers
1. The authority citation for Part 205 continues to read
as follows:
AMENDMENTS
AND Z
TO REGULATIONS
B, E,
M,
The Board of Governors is amending 12 C.F.R. Parts
202, 205, 213, and 226, its Regulations B, E, M, and Z
(Equal Credit Opportunity, Electronic Fund Transfers, Consumer Leasing, and Truth in Lending), to
reflect the transfer of enforcement functions from the
Federal Home Loan Bank Board to the Office of
Thrift Supervision, pursuant to the recent Financial
Institution Reform, Recovery and Enforcement Act
("FIRREA") legislation.
Effective December 29, 1989, 12 C.F.R. Parts 202,
205, 213, and 226, are amended as follows:
Part 202—Equal Credit Opportunity
1. The authority citation for Part 202 continues to read
as follows:
Authority: 15 U.S.C. 1691-1691f.
Section 202.14—Enforcement, Penalties, and
Liabilities
Section 202.14(a)(1) is amended by removing the reference to the Federal Home Loan Bank Board and the
parenthetical information that follows, and adding the
words "Office of Thrift Supervision" in its place.
Authority: Pub. L. 95-630, 92 Stat. 3730 (15 U.S.C.
1693b).
Section 205.13—Administrative Enforcement
Section 205.13(a)(1) is amended by removing the reference to the Federal Home Loan Bank Board and the
parenthetical information that follows, and adding the
words "Office of Thrift Supervision" in its place.
APPENDIX
AGENCIES
B—FEDERAL
ENFORCEMENT
Appendix B is amended by removing the reference to
"Savings Institutions Insured by the FSLIC and Members of the FHLB System," the parenthetical information that follows, and the next full sentence, and
adding the following words in place thereof:
Savings Institutions insured under the Savings Association Insurance Fund of the FDIC and federally-chartered savings banks insured under the Bank
Insurance Fund of the FDIC (but not including
state-chartered savings banks insured under the
Bank Insurance Fund).
The District Director of the Office of Thrift Supervision in the District in which the institution is
located.
64
Federal Reserve Bulletin • February 1990
Part 213—Consumer Leasing
1. The authority citation for Part 213 continues to read
as follows:
Authority: Sec. 105, Truth in Lending Act, as amended
by sec. 605, Pub. L. 92-221, 94 Stat. 170 (15 U.S.C.
1604).
APPENDIX D—FEDERAL
AGENCIES
ENFORCEMENT
Appendix D is amended by removing the reference to
"Savings Institutions Insured by the FSLIC and Members of the FHLB System," the parenthetical information that follows, and the next full sentence, and
adding the following words in place thereof:
Savings Institutions insured under the Savings Association Insurance Fund of the FDIC and federally-chartered savings banks insured under the Bank
Insurance Fund of the FDIC (but not including
state-chartered savings banks insured under the
Bank Insurance Fund).
The District Director of the Office of Thrift Supervision in the District in which the institution is
located.
Part 226—Truth in Lending
1. The authority citation for Part 226 continues to read
as follows:
Authority: Truth in Lending Act, 15 U.S.C. 1604 and
sec. 2, Public Law 100-583, 102 Stat. 2960; sec.
1204(c), Competitive Equality Banking Act, Public
Law 100-86, 101 Stat. 552.
APPENDIX I—FEDERAL
AGENCIES
ENFORCEMENT
Appendix I is amended by removing the reference to
"Savings Institutions Insured by the FSLIC and Members of the FHLB System," the parenthetical information that follows, and the next full sentence, and
adding the following words in place thereof:
Savings Institutions insured under the Savings Association Insurance Fund of the FDIC and federally-chartered savings banks insured under the Bank
Insurance Fund of the FDIC (but not including
state-chartered savings banks insured under the
Bank Insurance Fund).
The District Director of the Office of Thrift Supervision in the District in which the institution is
located.
FINAL RULE—REVISION
TO REGULATION
C
The Board of Governors is revising 12 C.F.R. Part 203, its
Regulation C (Home Mortgage Disclosure). The regulation implements amendments to the Home Mortgage
Disclosure Act ("HMDA"), contained in the Financial
Institutions Reform, Recovery and Enforcement Act
("FIRREA"), which are effective on January 1,1990. The
FIRREA amendments expand the coverage of HMDA to
include mortgage lenders that are not affiliated with depository institutions or holding companies. They require
covered institutions to report data regarding applications
for mortgage and home improvement loans, in addition to
data regarding loan originations and purchases. Most
institutions will now also report the race, sex, and income
of loan applicants.
The Board has adopted a loan/application register
form for HMDA reporting on which institutions will
record the required information for loan applications,
loans actually made, and loans purchased.
The first set of reports in the new register format will be
due in early 1991. The reports covering loan data for
calendar year 1989, which are due on March 31, 1990,
remain subject to the existing provisions of the regulation;
institutions must use the current Form HMDA-1 or
HMDA-2, as appropriate, for those reports.
Effective January 1, 1990, 12 C.F.R. Part 203 is
revised as follows:
Part 203—Home Mortgage
Disclosure
Section 203.1—Authority, purpose, and scope
Section 203.2—Definitions
Section 203.3—Exempt institutions
Section 203.4—Compilation of loan data
Section 203.5—Disclosure and reporting
Section 203.6—Enforcement
Appendix A Form and instructions for loan/application register
Appendix B Form and instructions for data collection
on race or national origin and sex
Authority:
12 U.S.C. 2801-2810
Section 203.1—Authority, purpose, and scope
(a) Authority. This regulation is issued by the Board of
Governors of the Federal Reserve System ("Board")
pursuant to the Home Mortgage Disclosure Act
(12 U.S.C. 2801 et seq.), as amended. The informa-
Legal Developments
tion-collection requirements have been approved by
the U.S. Office of Management and Budget under
44 U.S.C. 3501 et seq. and have been assigned OMB
No. 7100-0247.
(b) Purpose.
(1) This regulation implements the Home Mortgage
Disclosure Act, which is intended to provide the
public with loan data that can be used:
(i) to help determine whether financial institutions
are serving the housing needs of their communities;
(ii) to assist public officials in distributing publicsector investments so as to attract private investment to areas where it is needed; and
(iii) to assist in identifying possible discriminatory
lending patterns and enforcing antidiscrimination
statutes.
(2) Neither the act nor this regulation is intended to
encourage unsound lending practices or the allocation of credit.
(c) Scope. This regulation applies to certain financial
institutions, including banks, saving associations,
credit unions, and other mortgage lending institutions,
as defined in section 203.2(e). It requires an institution
to report data to its supervisory agency about home
purchase and home improvement loans it originates or
purchases, or for which it receives applications; and to
disclose certain data to the public.
(d) Loan aggregation and central data depositories.
Using the loan data made available by financial institutions, the Federal Financial Institutions Examination Council will prepare disclosure statements and
will produce various reports for individual institutions
for each metropolitan statistical area (MSA), showing
lending patterns by location, age of housing stock,
income level, sex, and racial characteristics. The
disclosure statements and reports will be available to
the public at central data depositories located in each
MSA. A listing of central data depositories can be
obtained from the Federal Financial Institutions Examination Council, Washington, D.C. 20006.
Section 203.2—Definitions
In this regulation:
(a) Act means the Home Mortgage Disclosure Act
(12 U.S.C. 2801 et seq.), as amended.
(b) Application means an oral or written request for a
home purchase or home improvement loan that is
made in accordance with procedures established by a
financial institution for the type of credit requested.
(c) Branch office means:
(1) any office of a bank, savings association, or
credit union that is approved as a branch by a
federal or state supervisory agency, but excludes
65
free-standing electronic terminals such as automated teller machines;
(2) any office of a mortgage lending institution (other
than a bank, savings association, or credit union)
that takes applications from the public for home
purchase or home improvement loans. A mortgage
lending institution is also deemed to have a branch
office in an MSA if, in the preceding calendar year,
it received applications for, originated, or purchased
five or more home purchase or home improvement
loans on property located in that MSA.
(d) Dwelling means a residential structure (whether or
not it is attached to real property) located in a state of
the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. The term
includes an individual condominium unit, cooperative
unit, or mobile or manufactured home.
(e) Financial institution means: (1) a bank, savings association, or credit union that originated in the preceding
calendar year a home purchase loan (other than temporary financing such as a construction loan) secured by a
first lien on a one-to-four family dwelling if:
(i) the institution is federally insured or regulated; or
(ii) the loan is insured, guaranteed, or supplemented by any federal agency; or
(iii) the institution intended to sell the loan to the
Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation;
(2) a for-profit mortgage lending institution (other
than a bank, savings association, or credit union)
whose home purchase loan originations equaled or
exceeded ten percent of its loan volume, measured
in dollars, in the preceding calendar year.
(f) Home improvement loan means any loan that:
(1) is stated by the borrower (at the time of the loan
application) to be for the purpose of repairing,
rehabilitating, or remodeling a dwelling; and
(2) is classified by the financial institution as a home
improvement loan.
(g) Home purchase loan means any loan secured by
and made for the purpose of purchasing a dwelling.
(h) Metropolitan statistical area or MSA means a
metropolitan statistical area or a primary metropolitan
statistical area, as defined by the U.S. Office of Management and Budget.
Section 203.3—Exempt institutions
(a) Exemption based on asset size or location. A
financial institution is exempt from the requirements of
this regulation for a given calendar year if on the
preceding December 31:
(1) the institution had neither a home office nor a
branch office in an MSA; or
66
Federal Reserve Bulletin • February 1990
(2) in the case of a bank, savings association, or
credit union, the institution's total assets were
$10 million or less; or
(3) in the case of a for-profit mortgage lending
institution (other than a bank, savings association,
or credit union), the total assets of the institution
combined with those of any parent corporation were
$10 million or less.
(b) Exemption based on state law.
(1) A state-chartered or state-licensed financial institution is exempt from the requirements of this
regulation if the Board determines that the institution is subject to a state disclosure law that contains
requirements substantially similar to those imposed
by this regulation and contains adequate provisions
for enforcement.
(2) Any state, state-chartered or state-licensed financial institution, or association of such institutions may apply to the Board for an exemption
under this paragraph.
(3) An institution that is exempt under this paragraph shall submit the data required by the state
disclosure law to its state supervisory agency for
purposes of aggregation.
(c) Loss of exemption.
(1) An institution losing an exemption that was
based on asset size or location under paragraph (a)
of this section shall comply with this regulation
beginning with the calendar year in which it lost its
exemption.
(2) An institution losing an exemption that was
based on state law under paragraph (b) of this
section shall comply with this regulation beginning
with the calendar year following the year for which
it last reported loan data under the state disclosure
law.
Section 203.4—Compilation of loan data
(a) Data format and itemization. A financial institution
shall collect data regarding applications for, and originations and purchases of, home purchase loans (including refinancings) and home improvement loans for
each calendar year. These data shall be presented on a
register in the format prescribed in Appendix A and
shall include the following items:
(1) A number for the loan or loan application, and
the date the application was received.
(2) The type and purpose of the loan.
(3) The owner-occupancy status of the property to
which the loan relates.
(4) The amount of the loan or application.
(5) The type of action taken, and the date.
(6) The location of the property to which the loan
relates, by MSA, state, county, and census tract, if the
institution has a home or a branch office in that MSA.
(7) The race or national origin and sex of the
applicant or borrower, and the income relied upon in
processing the loan application.
(8) The type of entity purchasing a loan that the
institution originates or purchases and then sells
within the same calendar year.
(b) Collection of data on race or national origin, sex,
and income.
(1) A financial institution shall collect data about the
race or national origin and sex of the applicant or
borrower as prescribed in Appendix B. If the applicant or borrower chooses not to provide the information, the lender shall note that data on the basis of
visual observation or surname, to the extent possible.
(2) Race or national origin, sex, and income data
may but need not be collected for:
(i) loans purchased by the financial institution; or
(ii) applications received or loans originated by a
bank, savings association, or credit union with
assets on the preceding December 31 of $30
million or less.
(c) Optional data. A financial institution may report
the reasons it denied a loan application.
(d) Excluded data. A financial institution shall not
report:
(1) loans originated or purchased by the financial
institution acting in a fiduciary capacity (such as
trustee);
(2) loans on unimproved land;
(3) temporary financing (such as bridge or construction loans);
(4) the purchase of an interest in a pool of loans
(such as mortgage-participation certificates); or
(5) the purchase solely of the right to service loans.
Section 203.5—Disclosure and reporting
(a) Reporting requirements. By March 1 following the
calendar year for which the loan data are compiled, a
financial institution shall send two copies of its complete register to the agency office specified in Appendix A of this regulation, and shall retain a copy for its
records for a period of not less than two years.
(b) Disclosure to the public. A financial institution
shall make its mortgage loan disclosure statement (to
be prepared by the Federal Financial Institutions
Examination Council) available to the public no later
than 30 calendar days after the institution receives it
from its supervisory agency. The financial institution
shall make the statement available to the public for a
period of five years.
Legal Developments
(c) Availability of disclosure statement. A financial
institution shall make the disclosure statement available at its home office. If it has a physical branch office
in other MS As, it shall also make a statement available
in at least one branch office in each of those MS As; the
statement at a branch office need only contain data
relating to property in the MSA where that branch
office is located. An institution shall make the disclosure statement available for inspection and copying
during the hours the office is normally open to the
public for business. It may impose a reasonable charge
for photocopying services.
(d) Notice of availability. A financial institution shall
post a general notice about the availability of its
disclosure statement in the lobbies of its home office
and any physical branch offices located in an MSA.
Upon request, it shall promptly provide the location of
the institution's offices where the statement is available. At its option, an institution may include the
location in its notice.
67
For depository institutions that report weekly, the
low reserve tranche adjustment will be effective starting with the reserve computation period beginning
Tuesday, December 26, 1989, and with the corresponding reserve maintenance periods beginning
Thursday, December 28, 1989, for net transaction
accounts, and Thursday, January 25, 1990, for other
reservable liabilities. For institutions that report quarterly, the low reserve tranche adjustment will be
effective with the computation period beginning Tuesday, December 19, 1989, and with the reserve maintenance period beginning Thursday, January 18, 1990.
For all depository institutions, the increase in the
deposit cutoff level will be used to screen institutions
in the second quarter of 1990 to determine reporting
frequency beginning September 1990.
Pursuant to the Board's authority under section 19
of the Federal Reserve Act, 12 U.S.C. § 461 et seq.,
12 C.F.R. Part 204 is amended as follows:
Part 204—Reserve Requirements of Depository
Institutions
Section 2 0 3 . 6 — E n f o r c e m e n t
(a) Administrative enforcement. A violation of the act
or this regulation is subject to administrative sanctions
as provided in section 305 of the act. Compliance is
enforced by the agencies listed in Appendix A of this
regulation.
(b) Bona fide errors. An error in compiling or recording loan data is not a violation of the act or this
regulation if it was unintentional and occurred despite
the maintenance of procedures reasonably adapted to
avoid such errors.
1. The authority citation for 12 C.F.R. Part 204 continues to read as follows:
Authority: Sections 11(a), 11(c), 19, 25, 25(a) of the
Federal Reserve Act (12 U.S.C. §§ 248(a), 248(c),
371a, 371b, 461, 601, 611); section 7 of the International Banking Act of 1978 (12 U.S.C. § 3105); and
section 411 of the Garn-St Germain Depository Institutions Act of 1982 (12 U.S.C. § 461).
2. In section 204.9, paragraph (a)(1) is revised to read
as follows:
AMENDMENT
TO REGULATION
D
Section 204.9—Reserve requirement ratios
The Board of Governors is amending 12 C.F.R. Part
204, its Regulation D (Reserve Requirements of Depository Institutions) to decrease the amount of transaction accounts subject to a reserve requirement ratio
of three percent, as required by section 19(b)(2)(C) of
the Federal Reserve Act (12 U.S.C. § 461(b)(2)(C)),
from $41.5 million to $40.4 million of net transaction
accounts (known as the low reserve tranche adjustment). The Board has left at $3.4 million the amount of
reservable liabilities of each depository institution that
is subject to reserve requirements of zero percent
(known as the reservable liabilities exemption adjustment), as required by section 19(b)(ll)(B) of the Federal Reserve Act (12 U.S.C. § 461(b)(ll)(B)). The
Board has also increased from $42.1 million to $43.4
million the deposit cutoff level that is used in conjunction with the reservable liabilities exemption amount
to determine the frequency of deposit reporting.
(a)(1) Reserve percentages. The following reserve
ratios are prescribed for all depository institutions,
Edge and Agreement Corporations, and United
States branches and agencies of foreign banks:
Category
Net transaction
account1
$0 to $40.4 million
Over $40.4 million
Nonpersonal time deposits
By original maturity
(or notice period):
Less than 1V2 years
IV2 years or more
Eurocurrency
liabilities
Reserve Requirement
3 percent of amount
$1,212,000 plus 12 percent of
amount over $40.4 million
3 percent
0 percent
3 percent
1. Dollar amounts do not reflect the adjustment to be made by the
next paragraph.
68
Federal Reserve Bulletin • February 1990
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Appleton City Bancshares, Inc.
Appleton City, Missouri
Order Approving Formation of a Bank Holding
Company
Appleton City Bancshares, Inc., Appleton City, Missouri ("Appleton"), has applied for the Board's approval pursuant to section 3(a)(1) of the Bank Holding
Company Act ("Act"), (12 U.S.C. § 1841 et seq.), to
become a bank holding company by acquiring 100
percent of the voting shares of Citizens Bank of
Appleton City, Appleton City, Missouri ("Citizens
Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (54 Federal Register 42,991 (1989)).
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.
Appleton is a non-operating company formed for the
purpose of acquiring Citizens Bank. Citizens Bank is
one of the smaller commercial banking organizations
in Missouri, controlling deposits of $15.6 million,
representing less than one percent of total deposits in
commercial banking organizations in the state. 1 This
proposal represents a restructuring of existing ownership interests. Consummation of this proposal would
not result in any significantly adverse effect on the
concentration of banking resources in Missouri.
Citizens Bank competes in the Bates County, Missouri, banking market, 2 and its deposits represent
approximately 9 percent of the total deposits in commercial banking organizations in the market. Principals of Appleton and Citizens Bank are not associated
with any other banking organization in the market.
Based on the facts of record, consummation of this
proposal would not result in any adverse effects upon
competition or increase the concentration of banking
resources in any relevant market. Accordingly, the
Board concludes that competitive considerations are
consistent with approval of this application.
1. State banking data are as of December 31, 1987. Market data are
as of December 31, 1988.
2. The Bates County, Missouri, banking market is approximated by
Bates County, the Town of Montrose in Henry County, and the Town
of Appleton City in St. Claire County, Missouri.
The financial and managerial resources and future
prospects of Appleton and Citizens Bank are consistent with approval. Considerations relating to the
convenience and needs of the communities to be
served also are 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. The proposal shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
the Federal Reserve Bank of Kansas City, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
December 7, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare.
J E N N I F E R J. J O H N S O N
Associate Secretary of the Board
Barnett Banks, Inc.
Jacksonville, Florida
Order Approving Acquisition of a Bank
Barnett Banks, Inc., Jacksonville, Florida ("Barnett")
has applied pursuant to section 3(a)(3) of the Bank
Holding Company Act of 1956 ("BHC Act")
(12 U.S.C. § 1842(a)(3)) to acquire 100 percent of the
voting shares of Barnett Bank of Southwest Georgia,
Columbus, Georgia ("Bank"). 1 Bank is the successor
to Barnett's existing thrift institution subsidiary, Barnett Federal Savings Bank, Columbus, Georgia.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (54 Federal Register 41,163 (1989)). 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.
Barnett proposes to convert Bank from a federal
savings bank to a state-chartered commercial bank.
The Financial Institutions Reform, Recovery, and
1. Barnett currently controls Barnett Federal Savings Bank indirectly through two inactive intermediate tier holding company subsidiaries of Barnett: Suncoast Bancorp, Inc., Vero Beach, Florida
("Suncoast"); and its subsidiary, First City Bancorp, Inc., Marietta,
Georgia ("First City"). First City is a Georgia savings bank holding
company that directly controls Barnett Federal Savings Bank. Both
Suncoast and First City join in this application. Barnett proposes to
convert Bank from a federal savings association charter to a state
savings association charter and, immediately thereafter, from a state
savings association charter to a state commercial bank charter.
Legal Developments
Enforcement Act of 1989 ("FIRREA") established a
five-year moratorium on any transaction that involves
the transfer of deposits from one deposit insurance
fund to another with certain limited exceptions. 2 As a
general matter, this moratorium prevents an institution
whose deposits are insured by the Savings Association
Insurance Fund ("SAIF") from converting to an institution the deposits of which are insured by the Bank
Insurance Fund ("BIF"). 3 A provision of FIRREA
expressly provides that this moratorium does not
apply to transactions in which a savings association
that is a member of the SAIF converts to a commercial
bank that remains a SAIF member. 4 Under this exception, the resulting bank is required to continue to pay
the SAIF insurance premiums, but is not required to
pay either the exit or entrance fees generally imposed
by FIRREA on conversion transactions. 5 Barnett Federal Savings Bank is currently a SAIF-member, and,
upon its conversion into Bank, Bank proposes to
remain a SAIF-member. Accordingly, the charter conversion proposed in this case is permissible under
FIRREA.
Section 3(a)(3) of the BHC Act requires that a bank
holding company receive Board approval prior to
taking any action to acquire a bank. Section 3(d) of the
BHC Act, the Douglas Amendment, (12 U.S.C.
§ 1842(d)), prohibits the Board from approving an
application by a bank holding company to acquire a
bank located outside of the bank holding company's
principal state of operations, unless the acquisition is
"specifically authorized by the statute laws of the state
in which such bank is located, by language to that
effect and not merely by implication." 6 Barnett's
principal state of operations is Florida. The Board has
previously determined that Georgia's interstate banking statute expressly authorizes a Florida holding
company, such as Barnett, to acquire a Georgia bank,
such as Bank. 7 Moreover, the branches of Bank are in
2. 12 U.S.C. § 1815(d)(2), as amended by Pub. L. No. 101-73,
§ 206, 103 Stat. 183, 197 (1989).
3. Id.
4. 12 U.S.C. § 1815(d)(2)(G), as amended by Pub. L. No. 101-73,
§ 206(a)(7), 103 Stat. 183, 199 (1989).
5. 12 U.S.C. § 1815(d)(2)(E), as amended by Pub. L. No. 101-73,
§ 206(a)(7), 103 Stat. 183, 198 (1989).
6. A bank holding company's principal state of operations for
purposes of the Douglas Amendment is that state in which the
operations of the holding company's banking subsidiaries were principally conducted on the later of July 1, 1966, or the date on which the
company became a bank holding company.
7. Barnett Banks, Inc., 75 Federal Reserve Bulletin 585 (1989).
Georgia's Regional Interstate Banking Act permits an out-of-state
regional bank holding company to acquire a Georgia bank that has
been in existence and continuously operated for at least five years.
Under the provisions of this Act, the term "bank" encompasses any
federally-insured financial institution which accepts deposits and
makes commercial loans. See Ga. Code Ann. § 7-1-620(2). Barnett
Federal Savings Bank qualifies as a bank for purposes of these
provisions.
69
locations permissible under relevant state law for a
Georgia bank to branch. 8 Accordingly, approval of
Barnett's proposal to acquire Bank is not barred by the
Douglas Amendment.
Barnett is the 9th largest commercial banking organization operating in Georgia, controlling approximately $837.6 million in deposits, representing approximately 1.81 percent of the total deposits in
commercial banks in the state. 9 Bank is the 10th
largest thrift institution in Georgia with approximately
$272.7 million in thrift deposits, representing approximately 1.9 percent of the total deposits in thrift
institutions in the state. Bank will operate in the
Columbus, Georgia, and Meriwether County, Georgia,
banking markets. 10 Because Barnett already indirectly
controls Bank, this proposal will not result in the
elimination of any existing competition in any relevant
banking market. In light of the facts of record, consummation of this proposal would not have a significantly adverse effect on competition in any relevant
banking market.
The financial and managerial resources and future
prospects of Barnett and Bank are consistent with
approval. Considerations relating to the convenience
and needs of the communities to be served also are
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. 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 Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 15, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Kelley, and LaWare. Absent and not voting:
Governor Angell.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
8. See Ga. Code Ann. §§ 7-l-293(e), 7-1-550 et seq.
9. State deposit data as of June 30, 1989.
10. The Columbus, Georgia, banking market is approximated by
Chattahoochee County and Muscogee County in Georgia, plus Russell
County, Alabama, and the city of Smiths in Lee County, Alabama.
The Meriwether County banking market is approximated by Meriwether County, Georgia.
70
Federal Reserve Bulletin • February 1990
Orders Issued Under Section 4 of the Bank
Holding Company Act
Citicorp
New York, New York
G.W.B. Holding Company
Phoenix, Arizona
Order Approving Retention of Shares of General
Insurance Agencies
Citicorp, New York, New York, and its subsidiary
G.W.B. Holding Company, Phoenix, Arizona, both
bank holding companies within, the meaning of the
Bank Holding Company Act (the "BHC Act"), have
applied for the Board's approval under section
4(c)(8)(D) of the BHC Act (12 U.S.C. § 1843(c)(8)(D))
and section 225.25(b)(8)(iv) of Regulation Y (12 C.F.R.
§ 225.25(b)(8)(iv)) to retain the shares of two of their
indirect nonbank subsidiaries, Great Western Insurance Agency, Phoenix, Arizona ("GWIA"), and
United Security Corporation ("United"), Phoenix,
Arizona, and to permit these subsidiaries to continue
to engage in certain general insurance agency activities.
On August 25, 1986, the Board approved an application under section 3 of the BHC Act by Citicorp to
acquire G.W.B. Holding Company and its subsidiary, Great Western Bank and Trust, Phoenix, Arizona ("Bank"). 1 Bank has owned and conducted
general insurance agency activities through GWIA,
pursuant to Arizona law, since prior to December 31,
1971.2 G.W.B. Holding Company, which became
a bank holding company in 1981 through the acquisition of Bank, obtained indirect ownership and
control of GWIA in conformance with and reliance
on section 225.22(d)(2)(ii) of the Board's Regulation
Y. 3
On June 13, 1988, Bank acquired all of the voting
shares of United in connection with the merger of
1. 72 Federal Reserve Bulletin 715 (1986).
2. Applicant states that the insurance activities of GWIA are
permissible under Arizona law, which provides that an Arizona bank
may "directly or through a bank subsidiary engage in any lawful
activity which is reasonably related or incidental to banking. All
activities in which any bank was lawfully engaged directly or through
a subsidiary on December 31, 1971, are declared to be incidental and
related to banking for purposes of this paragraph." Arizona Revised
Statutes § 6-184(3).
3. Section 225.22(d)(2)(ii) permits a state bank owned by a bank
holding company to acquire and retain, without obtaining specific
Board approval, all of the voting shares of a company that engages
solely in activities that the parent state bank may conduct directly,
subject to the same limitations applicable to the bank. 12 C.F.R.
225.22(d)(2)(ii). The Board currently has this regulation under review.
53 Federal Register 48,915 (December 5, 1988).
United Bank of Arizona into Bank. United has conducted insurance agency activities pursuant to Arizona law since 1964. In 1969, United Bank of Arizona
became a subsidiary of UB Financial Corporation, a
registered bank holding company, and, since that time,
United has been a wholly owned subsidiary of, first,
United Bank of Arizona, and, then, of Bank, in
conformance with and reliance
on
section
225.22(d)(2)(H) of the Board's Regulation Y.
Citicorp's application to acquire G.W.B. Holding
Company was protested by various insurance industry
trade associations on the ground that the insurance
activities of GWIA are prohibited under section 4(c)(8)
of the BHC Act, as amended by Title VI of the
Garn-St Germain Depository Institutions Act of
1982.4 The Garn-St Germain Act amended section
4(c)(8) of the BHC Act to provide that, with seven
exceptions, insurance activities are not closely related
to banking and thus are not generally permissible for
bank holding companies. 12 U.S.C. § 1843(c)(8); see
also 12 C.F.R. 225.25(b)(8).
In response to the protests, Citicorp committed that,
following consummation of the transaction, GWIA
would cease selling insurance, other than credit-related insurance permitted under section 4(c)(8)(A) of
the BHC Act, pending resolution by the Board of the
legal questions raised by the insurance activities of
GWIA. 5 Citicorp made a similar commitment regarding the insurance activities of United at the time Bank
acquired United Bank of Arizona and United. In
making these commitments, Citicorp expressly reserved its position that the BHC Act does not prohibit
GWIA and United from conducting insurance agency
activities, 6 and also reserved the right to apply to the
Board under section 4(c)(8)(D) to retain the shares of
GWIA and United even if their insurance activities
were subject to section 4 of the BHC Act.
Citicorp filed the present applications claiming entitlement for GWIA and United to resume conducting
certain insurance agency activities, and for Citicorp to
retain indirect control of GWIA and United, pursuant
to one of the seven exemptions to the insurance
prohibition of the Garn-St Germain Act, Exemption D. 12 U.S.C. § 1843(c)(8)(D). Exemption D provides an exception to the general insurance prohibition
of the Garn-St Germain Act for any insurance agency
activity that was conducted by a bank holding com-
4. Pub. L. 97-320, Title VI, 96 Stat. 1469, 1536-1538 (1982).
5. Citicorp also made certain commitments regarding the insurance
underwriting activities of another subsidiary of Bank, Great Western
Insurance Company, which is not the subject of this application. This
application also does not address Citicorp's request for relief to
conduct general insurance agency activities directly within Bank.
6. As noted below, the Board is not required to address those
questions in order to approve the present applications.
Legal Developments
pany or any of its subsidiaries on May 1, 1982, subject
to certain geographic and functional limitations. 7
Notice of these applications, affording interested
persons an opportunity to submit comments regarding
these applications, has been published (53 Federal
Register 3789 (February 9, 1988); 53 Federal Register
51,911 (December 23, 1988)). The time for filing comments has expired, and the Board has considered the
applications and all comments received, including the
comments of several insurance trade associations
("Protestants"), in light of the factors set forth in
section 4 of the BHC Act. 8
Protestants argue that the Board should not approve
these applications because, in Protestants' view, any
grandfather privileges that GWIA, United and G.W.B.
Holding Company may qualify for under Exemption D
terminated when these companies were acquired by
Citicorp. Citicorp does not have grandfather rights
under Exemption D in Arizona and is not otherwise
authorized under the BHC Act to conduct the proposed non-credit related insurance agency activities in
Arizona. 9 Protestants also contend that GWIA and
United are not owned in conformance with the provisions of section 225.22(d)(2) because state banks in
Arizona are not authorized to sell insurance. They also
contend that, in any event, section 225.22(d)(2) is
inconsistent with the express provisions of section 4 of
the BHC Act and that, as a result, GWIA and United
were not lawfully held by G.W.B. Holding Company
and UB Financial Corporation, respectively, on the
7. Exemption D restricts grandfathered insurance agency activities
to the state in which the grandfathered bank holding company has its
principal place of business, any state immediately adjacent to that
state, and any state or states in which insurance activities were
conducted by the bank holding company or any of its subsidiaries on
or before May 1, 1982. Exemption D also restricts these activities to
insurance agency activities that were conducted by the grandfathered
company on May 1, 1982, and sales of insurance coverages that
become available after that date so long as those coverages insure
against the same type of risks as coverages sold before that date, or
are otherwise functionally equivalent to those coverages. 12 U.S.C.
§ 1843(c)(8)(D); 12 C.F.R. 225.25(b)(8)(iv).
8. The Board has received comments opposing Board approval of
these applications from the Independent Insurance Agents of America, Inc., the National Association of Casualty and Surety Agents,
National Association of Life Underwriters, National Association of
Professional Insurance Agents, National Association of Surety Bond
Producers, the N e w York State Association of Life Underwriters,
Professional Insurance Agents of N e w York, Inc., and Independent
Insurance Agents of N e w York, Inc.
9. Protestants also argue that these applications filed by Citicorp are
not complete and formal applications under section 4(c)(8) of the BHC
Act, and that protestants have not received adequate notice of the
Citicorp proposal. Both of these contentions are without merit.
Citicorp filed its applications by letter, rather than on the usual Form
FRY-4, but submitted all of the financial, managerial, and descriptive
information required by the Board. Notice of these filings and of
Citicorp's amendment to include retention of United was published in
the Federal Register, and protestants were given actual notice that
these applications were filed. Protestants have also been provided all
of the public portions of the applications, and have submitted substantial written comments regarding these applications.
71
May 1, 1982 grandfather date in Exemption D. Thus,
in Protestants' view, GWIA and United do not qualify
to continue to sell insurance under Exemption D.
Compliance with Regulation
Y
In Sovran Financial Corporation, Protestants raised
similar claims concerning the compliance by the company to be acquired with section 225.22(d)(2).10 Without reaching the question raised by Protestants regarding section 225.22(d)(2), the Board determined in that
case that a nonbank subsidiary of a holding company
bank that conducted insurance agency activities on
May 1, 1982, in conformance with section 225.22(d)(2)
would qualify for grandfather privileges under Exemption D and could continue to conduct the specific
insurance agency activities it conducted on May 1,
1982. The Board stated in that case that because
section 225.22(d)(2) was in effect on May 1, 1982,
conduct of insurance agency activities in compliance
with that rule on the grandfather date would satisfy the
requirements of Exemption D, notwithstanding later
challenges to the validity of the rule or the effect that
a subsequent rulemaking proceeding might have on the
rule.
The Board also determined in that case that a
nonbank subsidiary of a holding company bank that
had conducted insurance agency activities for many
years prior to May 1, 1982, in reliance on the regulation, with the knowledge of the Board and state
regulatory agencies and without a determination by
these agencies that the activities were not in accordance with applicable statutes and regulations, qualified
for grandfather privileges under Exemption D. This
was so even though the Board found that the company
did not comply with the requirements of section
225.22(d)(2) of Regulation Y because the company
conducted activities that could not be conducted by
the company's parent state bank.
In this case, GWIA and United are each held by
Bank in compliance with the provisions of section
225.22(d)(2) of the Board's Regulation Y and were
wholly owned subsidiaries of a holding company bank
on May 1, 1982.11 The Arizona Banking Commissioner
10. See Sovran Financial Corporation, 73 Federal Reserve Bulletin
672 (1987), aff d sub nom., National Association
of Casualty and
Surety Agents v. Board of Governors, 856 F.2d 282 (D.C. Cir. 1988),
rehearing denied December 2, 1988, cert, denied,
U.S.
(May
30, 1989).
11. Protestants argue that GWIA was not lawfully conducting
insurance activities on May 1, 1982, because the predecessor of
G.W.B. Holding Company was subject to a Board order to divest
GWIA by December, 1980, and did not obtain Board approval to
retain GWIA as a subsidiary of Bank after that date. The Board's
order is clear, however, that G.W.B. Holding Company and its
predecessor were permitted to retain GWIA as a subsidiary of Bank
72
Federal Reserve Bulletin • February 1990
has determined that, insofar as Arizona law is concerned, Bank may sell insurance directly or through a
subsidiary. The Arizona Commissioner has also determined that GWIA may conduct insurance agency
activities under Arizona law, and GWIA has been
engaged in these activities since prior to December
1971, which is well before the relevant date in Exemption D. As noted above, the provisions of Arizona law
permit certain state banks to sell insurance directly as
well as through subsidiaries. 12 United has conducted
its insurance agency activities since 1964 in reliance on
the same provisions of Arizona law, with the knowledge of the relevant state regulatory authorities and
without objection from those state authorities. Accordingly, GWIA and United are held in conformance
with the requirements of section 225.22(d)(2) of the
Board's Regulation Y, and, under the terms of section
4(c)(8)(D) of the BHC Act and section 225.22(b)(8)(iv)
of the Board's regulations, GWIA and United qualify
for the privileges of Exemption D.
In addition, the Board believes that the same equitable principles outlined in the Sovran case also require a determination that GWIA and United qualify
for the privileges in Exemption D in this case. In
particular, the Board believes that, notwithstanding
current challenges to the validity of the provisions of
section 225.22(d)(2) of the Board's Regulation Y, it
would be inequitable to deny GWIA and United grandfather privileges under Exemption D in view of the fact
that GWIA and United have been operated openly as
subsidiaries of a holding company bank for many
years, and in full compliance with a previously unchallenged Board regulation and with the full knowledge of
the Board and the Arizona Banking Commissioner. 13
The Board has solicited public comment regarding
the validity of section 225.22(d)(2) in a proposed
rulemaking regarding that regulation. 14 The Board
believes that Protestants' claim regarding that regulation must be considered in the context of that rulemaking. Moreover, the Board does not believe that its
determination regarding the validity of section
225.22(d)(2) in that rulemaking should affect the Exemption D rights of GWIA or United. Even if section
225.22(d)(2) is modified or rescinded as a result of the
current rulemaking, the fact remains that on May 1,
1982, GWIA and United were operated in compliance
provided the subsidiary met the requirements of section 225.22(d)(2)
of Regulation Y (formerly section 225.4(e)). Patagonia
Corporation,
59 Federal Reserve Bulletin 539, 541 (1973). As noted above, that rule
expressly permits ownership of certain companies without Board
approval, and the Board's divestiture order in 1973 did not impose any
independent approval requirement for retention of GWIA under that
section. Id.
12. Arizona Revised Statutes § 6-184(3).
13. See Sovran Financial Corporation,
supra.
14. 53 Federal Register 48,915 (December 5, 1988).
with that rule, and on that date no question had been
raised regarding the validity of the rule. The regulation
was adopted by the Board after notice and public
comment and companies were justified in relying on
that regulation at the time. Accordingly, because
GWIA and United were validly held in reliance on this
rule on May 1, 1982, prior to enactment of the provisions in Title VI of the Garn-St Germain Act that have
called into question the Board's discretion to promulgate this rule with respect to insurance powers, the
Board believes that, if a determination is made that the
rule is inconsistent with section 4, that determination
should not be applied retroactively to deprive GWIA
or United of grandfather rights under Exemption D.
Acquisition of Exempt
Company
The Board has also previously rejected Protestants'
claim that a company that qualifies for Exemption D
privileges loses those privileges upon its indirect acquisition by another bank holding company. In
Sovran, the Board determined that Exemption D permits a bank holding company that did not control a
company conducting insurance activities on the grandfather date to acquire a bank holding company and its
subsidiaries that qualify for grandfather privileges under Exemption D, provided that the grandfathered
entity retains its separate corporate structure and its
insurance activities are conducted only by the companies that were actually engaged in insurance activities
on the grandfather date and not by other companies
within the acquiring banking organization. On September 9, 1988, the U.S. Court of Appeals upheld this
Board determination, and on May 30, 1989, the U.S.
Supreme Court refused to consider a further appeal of
this case, thereby upholding the Board's decision. 15
The Board notes that GWIA and United will be
retained as separate nonbank subsidiaries of Bank and
will conduct the insurance agency activities that are
the subject of this application. In this regard, Applicant's other subsidiaries will not conduct insurance
agency activities on the basis of the grandfather privileges of GWIA or United. On this basis, and for the
reasons stated in its prior decisions and court proceedings, the Board concludes that G.W.B. Holding Company, GWIA and United may retain their Exemption
15. National Association of Casualty and Surety Agents v. Board of
Governors, supra. Subsequent to its Sovran decision, the Board, in
reliance on that decision, approved acquisitions of 8 other bank
holding companies that had or controlled companies that had Exemption D grandfather rights. Each of these approvals was also upheld on
judicial review.
Legal Developments
D grandfather privileges even though they have been
acquired by Citicorp. 16
Scope of Grandfathered
Activities
Protestants also contend that GWIA and United have
not provided an adequate basis for determining what
particular lines of insurance these companies were
selling as agent on May 1, 1982. Exemption D grandfathers insurance agency activities that were "engaged
in by the bank holding company or any of its subsidiaries on May 1, 1982." The Board believes that the
requirement that the grandfathered company was "engaged in" insurance agency activities does not require
grandfathered companies to show that they actually
engaged in a sale of each particular type of insurance
product on the specific grandfather date, Saturday,
May 1, 1982. Instead, the Board believes that a company would meet the requirements of Exemption D for
particular types of insurance if the company provides
evidence that it was legally permitted to act as agent
for those types of insurance on May 1, 1982, held itself
out to the public as agent for the particular types of
insurance for which the company seeks grandfather
privileges, and had not abandoned the business prior
to the grandfather date. 17 These showings may be
made with a variety of types of evidence, including
copies of insurance agency licenses in effect on and
around May 1, 1982, copies of policies for which the
company acted as agent during the 12 months prior to
16. Protestants also contend that the conduct of insurance agency
activities by GWIA and United would represent an evasion of the
insurance prohibitions of section 4(c)(8) of the BHC Act. See Citicorp
(American State Bank), 71 Federal Reserve Bulletin 789 (1985). The
Board believes that Protestant's reliance on the Board's decision in
Citicorp (American State Bank) is misplaced. Citicorp acquired and
has operated Bank as a bank not as an insurance company, and there
is no evidence that Bank will be operated primarily as an insurance
company. In addition, the insurance activities of GWIA and United
are small in relation to the size of the banking operations of Bank and
there is no restriction imposed under state law on the banking
activities of Bank. Finally, Congress has authorized bank holding
companies and their subsidiaries that meet the requirements of
Exemption D to continue to conduct insurance agency activities. As
discussed above, the Board has determined that certain of the
insurance agency activities of GWIA and United are permissible
under Exemption D, within the geographic and functional limitations
established under Exemption D. Accordingly, in the Board's view, the
facts of this case do not indicate, as they did in Citicorp
(American
State Bank), that the acquisition of Bank is primarily a device to
permit Citicorp to engage in prohibited insurance activities. Moreover, because the insurance agency activities considered in this
application are permissible under an express provision of the BHC
Act, the Board does not believe that Citicorp's proposal to continue to
conduct insurance agency activities through GWIA and United pursuant to Exemption D would represent an evasion of the BHC Act.
17. In an analogous context, the Board has stated that to be
"engaged in" an activity on a specific grandfather date, a company
must demonstrate that it had a program in place to provide a particular
product or service to a customer and that it was in fact offering the
product or service to customers as of the grandfather date. 12 C.F.R.
222.145(c)(6).
73
May 1, 1982, material advertising the types of insurance policies sold by the company, and summaries
prepared by insurance underwriters of policies sold
and revenues received by the agency. Other evidence,
including affidavits of the company's employees, may
also support a finding that a company qualifies for
Exemption D grandfather rights.
In this case, the Board has considered the record
regarding the types of insurance agency activities
conducted by GWIA and United on May 1, 1982. The
record indicates that, during 1982, GWIA had a valid
Arizona life insurance license authorizing GWIA to act
as agent for life and disability insurance, including the
sale of annuities, and a valid Arizona non-life and/or
disability license entitling GWIA to act as agent for a
full line of individual and commercial casualty insurance, including casualty, disability, property, surety,
vehicle and marine transportation insurance. The
record also shows that, on and around May 1, 1982,
GWIA in fact engaged in acting as agent for the sale of
annuities and a variety of types of property and
casualty insurance for individuals and commercial
entities. In particular, GWIA has provided copies of
agency agreements with several insurance underwriters indicating that, on and around May 1, 1982, GWIA
was authorized to act as agent for these underwriters
in the sale of personal lines of insurance, including
automobile, homeowners, dwelling, mobile home, personal indemnity, and inland marine insurance; in the
sale of commercial lines of insurance, including business, boiler and machinery, commercial automobile,
commercial indemnity, farm, fidelity and surety, and
workers compensation insurance; and in the sale of
credit-related life and disability insurance. GWIA has
also provided copies of insurance policies in effect on
and around May 1, 1982, which GWIA sold as agent.
These policies illustrate that GWIA acted as agent in
the sale of non-credit related homeowners, automobile, and property (both flood and dwelling) insurance;
credit related life and disability insurance; and annuities. Finally, GWIA has provided agency production
records prepared by an insurance underwriter for
which GWIA acted as agent illustrating that GWIA
received commissions in 1981 and 1982 for the sale
during those years of automobile, personal inland
marine, general commercial liability and automobile,
and comprehensive commercial policy insurance.
With respect to United, the record indicates that, on
May 1, 1982, United held a valid Arizona life insurance
license authorizing United to act as agent for a full line
of life and disability insurance. United has also provided copies of agency agreements in effect during
1981 and 1982 with several insurance underwriters
authorizing United to act as agent for these underwriters in the sale of various life insurance products,
74
Federal Reserve Bulletin • February 1990
including whole life, term-life and limited life insurance. In addition, United has provided copies of
several non-credit related life insurance policies and
medical insurance policies that were sold by United as
agent and that were in force on May 1, 1982, or were
offered by United within the 12 preceding months.
Based on these and the other facts of record in this
case, the Board believes that GWIA has demonstrated
that, on May 1, 1982, GWIA was engaged in acting as
agent in the sale of non-credit related homeowners,
automobile, property (flood and dwelling), personal
inland marine, general commercial liability and automobile, and comprehensive commercial policy insurance, as well as annuities and credit-related life and
disability insurance. Based on the record, the Board
also believes that United has demonstrated that, on
May 1, 1982, United was engaged in acting as agent in
the sale of non-credit related life insurance and medical insurance. 18 Under the terms of Exemption D,
GWIA and United may each continue to conduct these
insurance agency activities that the company conducted on May 1, 1982.19 Under Exemption D, the
insurance agency activities of GWIA and United may
be conducted only in Arizona, states adjacent thereto,
or states in which the company lawfully engaged
in insurance activities on May 1, 1982. 12 U.S.C.
§ 1843(c)(8)(D).
The Board notes that the 100th Congress had under
active consideration legislation that would have applied the insurance prohibitions of the Garn-St Germain Act to the activities of holding company banks
except where the bank was located in the same state as
the bank holding company, the insurance activities
were permissible under state law, and sales were
18. The Board has also considered Citicorp's argument that GWIA
and United were engaged in "a general insurance agency business"
and should be permitted to continue to act as agent for all types of
insurance as a general insurance agency. The Board believes that this
broad categorization is not supportable under the terms of Exemption
D, which permits a grandfathered company to conduct "any insurance
agency activity which was engaged in by the bank holding company . . . on May 1, 1982, . . . including . . . sales of insurance
coverages which may become available after May 1, 1982, so long as
those coverages ensure against the same types of risk as, or are
otherwise functionally equivalent to, coverages sold on May 1,
1982 . . ." 12 U.S.C. § 1843(c)(8)(D). In the Board's view, this specific
reference to new types of coverages, with its reference to same types
of risk, would not be necessary if Exemption D were intended broadly
to authorize "general insurance agency business." Rather, the limitations in Exemption D indicate that it was intended to permit
grandfathered companies to act as agent only for the specific types of
insurance these companies provided on May 1,1982, and certain types
of related coverages developed after that date.
19. The record also suggests that, at various times, GWIA and
United may have acted as agent for a variety of other types of
insurance. The Board's determination at this time does not prevent
GWIA or United from providing additional evidence that it acted as
agent for any or all of these other types of insurance on May 1, 1982.
Upon such a showing, GWIA or United would be permitted under
Exemption D to continue to act as agent for these types of insurance.
limited to within the state. While this legislation was
passed by the U.S. Senate and favorably reported by
committees of the U.S. House of Representatives, 20
no legislation was enacted into law. The Board calls to
Applicant's attention, however, that subsequent Congressional action may require modification of the
Board's order approving this application. The Board
retains jurisdiction over the application to act to carry
out the requirements of any legislation adopted by
Congress that would affect the conduct of insurance
activities by GWIA or United under the BHC Act.
Under section 4(c)(8) of the Act, the Board must
also determine that the conduct of these activities by
GWIA and United is a proper incident to banking for
purposes of that section. In making this determination,
the Board must consider whether the performance of
the activity can reasonably be expected to produce
benefits to the public that outweigh possible adverse
effects.
The Board believes that approval of these applications would permit GWIA and United to be viable
competitors and permit consumers in areas served by
GWIA and United to benefit from resumed access to
these companies as a source of insurance products and
services. This proposal would also serve to increase
competition in the provision of insurance agency services in the areas served by these companies, and
avoid disrupting established relationships between
these companies and their customers by permitting
GWIA and United to resume selling new policies to
these customers. In addition, the Board finds that the
record does not indicate that approval of these applications would result in undue concentration of resources, unfair or decreased competition, conflicts of
interest, unsound banking practices or other adverse
effects. 21 Accordingly, the Board believes that the
balance of public interest factors in this case weighs in
favor of approval of these applications. 22
20. See S. Rep. No. 305, 100th Cong., 2d Sess., 109-110 (1988);
H.R. Rep. No. 822 (Part 1), 100th Cong., 2d Sess. 168 (1988); H.R.
Rep. No. 822 (Part 2), 100th Cong., 2d Sess. 126-27 (1988).
21. Protestants raise a concern that the conduct of insurance agency
activities by GWIA and United will involve "subtle coercion" of
customers of Bank to obtain insurance products from these companies. Protestants have presented no evidence that any illegal tying or
coercion has in fact occurred or is likely to occur in the provision of
insurance products in this case, and the historical penetration rate
data provided by Citicorp does not indicate that these practices have
occurred. Moreover, Citicorp, and its subsidiaries, including GWIA,
United and Bank, are prohibited by statute from tying the provision of
credit to the insurance or other services provided by these companies,
and have established corporate policies designed to prevent this
practice. 12 U.S.C. § 1972.
22. Protestants have asserted that a public hearing is necessary in
this case. Under section 4, a protestant is not entitled to a hearing on
every application, but only when there are issues of material fact in
dispute. See Connecticut Bankers Association v. Board of Governors,
627 F.2d 245, 251 (D.C. Cir. 1980). After review of the record in this
case, the Board believes that there are no material issues of fact in
Legal Developments
Based on the foregoing and all the facts of record,
the Board has determined that these applications
should be, and hereby are, approved. This determination is subject to the conditions that the insurance
activities be conducted solely by GWIA and United,
which must remain independent subsidiaries of
Applicant, 23 that each company limit its insurance
activities to the insurance agency activities that the
Board has found in this order were conducted by the
company on May 1, 1982, and that GWIA and United
conduct these activities only in Arizona, adjacent
states, and states in which the company lawfully
engaged in the activity on May 1, 1982, as well as to all
of the conditions set forth in Regulation Y. It is also
subject to the Board's authority to require such modifications or termination of activities of the bank holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with, and prevent evasions of, the provisions and purposes of the
BHC Act and the Board's regulations and orders
issued thereunder.
By order of the Board of Governors, effective
December 15, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, and Kelley. Absent and not voting: Governors Angell and La Ware.
JENNIFER J. JOHNSON
Associate Secretary of the Board
The Dai-Ichi Kangyo Bank, Limited
Tokyo,Japan
Order Approving Acquisition of Nonbank
Company
The Dai-Ichi Kangyo Bank, Limited, Tokyo, Japan
("Dai-Ichi"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied for the Board's approval under
section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a) of the Board's
Regulation Y (12 C.F.R. 225.23(a)) to acquire at least
dispute, and the general allegations and issues raised by protestants
relate principally to interpretations of statutory provisions and conclusions of law and fact that must be made by the Board. In light of
this, and the fact that protestants have had an opportunity to comment
and have submitted extensive written comments, the Board does not
believe that a public hearing regarding this matter would be useful or
appropriate in this case.
23. This condition is not intended to preclude Citicorp from seeking
Board approval to merge GWIA and United and continue to engage
through the resulting company in insurance agency activities under
Exemption D if the merger is for legitimate business purposes and
otherwise conforms with the limitations in this order and the requirements of the Board's regulations. See 12 C.F.R. 225.25(b)(8)(iv),
footnote 10.
75
60 percent of the voting shares of The CIT Group
Holdings, Inc., New York, New York ("CIT"). All
of the shares of CIT are currently owned by Manufacturers Hanover Corporation, New York, New
York ( " M H C " ) . Dai-Ichi seeks to engage through
CIT in commercial finance, leasing, factoring, sales
finance, credit servicing, community development,
the sale of credit-related life, accident and health and
disability insurance, and credit-related property and
casualty insurance. 1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (54 Federal Register 47,570 (1989)). 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 4 of the
BHC Act.
Dai-Ichi, with approximately $389.8 billion in consolidated total assets as of March 31, 1989, is the
largest banking organization in the world. Dai-Ichi
owns The Dai-Ichi Kangyo Bank of California, Los
Angeles, California, which held total assets of $487.4
million as of September 30, 1989. In addition, Dai-Ichi
operates branches in New York, Los Angeles, and
Chicago, and agencies in Atlanta and San Francisco.
CIT, with total assets of $10.1 billion as of September 30, 1989, is one of the larger diversified finance
companies in the United States, operating 30 subsidiaries with offices in 25 states and two foreign countries. The Board has previously determined that the
activities conducted by CIT are closely related to
banking and are permissible for bank holding
companies. 2
In acting on an application under section 4(c)(8) of
the BHC Act, the Board must consider whether an
applicant's performance of the proposed activities
"can reasonably be expected to produce benefits to
the public, such as greater convenience, increased
competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts
of interest, or unsound banking practices." This consideration also requires an evaluation of the financial
and managerial aspects associated with the proposal.
12 C.F.R. 225.24.
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
1. Dai-Ichi and MHC have also entered into a Stock Purchase
Agreement pursuant to which Dai-Ichi will acquire 4.9 percent of the
voting shares of MHC.
2. Manufacturers Hanover Corporation, 70 Federal Reserve Bulletin 452 (1984); 12 C.F.R. 225.25(b)(1), (5), (6), and (8).
76
Federal Reserve Bulletin • February 1990
effect of the transaction on these resources. 3 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. 4 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
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 is simultaneously being proposed by the member
countries of the Basle Committee on Banking Regulations and Supervisory Practices and the other domestic federal banking agencies. 5 The Japanese Ministry
of Finance in April of last 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 Dai-Ichi, as
publicly reported, is below the 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
Dai-Ichi's portfolio of equity securities consistent with
the principles in the Basle capital framework, DaiIchi's capital ratio meets United States standards. In
addition, the Board notes that Dai-Ichi is in the process of raising additional equity capital.
The Board also has considered additional factors
that mitigate its concern in this case. The Board notes
that Dai-Ichi is in compliance with the capital and
other financial requirements of Japanese banking organizations. In addition, the Board notes that Dai-Ichi
currently exceeds the minimum requirements established by the Basle Committee capital framework for
1992.
3. 12 C.F.R. 225.25; The Fuji Bank Limited, 75 Federal Reserve
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve
Bulletin 155, 156 (1987).
4. See, e.g., Toyo Trust and Banking Co., Ltd., 74 Federal Reserve
Bulletin 623 (1988); The Mitsubishi Bank, Limited, 70 Federal Reserve
Bulletin 518 (1984). See also Policy Statement on Supervision and
Regulation of Foreign-Based Holding Companies, Federal Reserve
Regulatory Service I 4-835 (1979).
5. 54 Federal Register 4186 (1989).
Based on these and other facts of record, the Board
concludes that the financial considerations are consistent with approval of the application. The Board has
also concluded that managerial factors are consistent
with approval.
In considering this application, the Board must
determine whether the proposed joint venture can
reasonably be expected to produce benefits to the
public that outweigh the possible adverse effects.
12 U.S.C. § 1843(c)(8). In the past, the Board has
expressed concern that a joint venture could lead to a
matrix of relationships between the co-venturers that
could lessen competition between the co-venturers,
create the possibility of conflicts of interest, 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. 6 In this
case, neither the proposed investment nor the Stock
Purchase Agreement between Dai-Ichi and MHC
place any limits on the other activities of Dai-Ichi or
MHC. Both Dai-Ichi and MHC are large, independent
organizations, that will continue to compete in a
variety of banking and nonbanking activities. In addition, because these companies are both bank holding
companies whose activities conform to the requirements of the BHC Act, this proposal does not raise the
same level of concern present in joint ventures between bank holding companies and commercial companies that the proposed joint venture may undermine
the legally mandated separation of banking and
commerce. 7 Formation of this joint venture is not
expected to create any conflicts of interest or adversely influence Dai-Ichi or MHC in any creditor
relationships. Moreover, there is no evidence in the
record to indicate that approval of this proposal would
result in undue concentration of resources, decreased
or unfair competition, unsound banking practices, or
other adverse effects on the public interest.
Dai-Ichi has requested the Board's authorization to
retain the credit-related property and casualty insurance activities of CIT, which CIT currently conducts
pursuant to exemption D of the Garn-St Germain
Depository Institutions Act of 1982 (the "Garn Act"). 8
6. See, e.g., Amsterdam-Rotterdam
Bank, N.V., 70 Federal Reserve Bulletin 835 (1984).
7. The Hongkong and Shanghai Banking Corporation, 74 Federal
Reserve Bulletin 137 (1988).
8.12 U.S.C. § 1843(c)(8)(D). Exemption D of the Garn Act permits
a bank holding company to engage in "any insurance activity which
was engaged in by the bank holding company or any of its subsidiaries
on May 1, 1982." Such activities may be conducted in the grandfathered company's home state, states adjacent thereto, or any state
where the company was authorized to operate an insurance business
before the grandfather date. The Board has previously determined
that an insurance agency which is entitled to continue to sell insurance
under exemption D does not lose its grandfathered rights if the agency
is acquired by another bank holding company, provided the agency
Legal Developments
CIT will remain a separate subsidiary of Dai-Ichi and
MHC, and the insurance activities of CIT will not be
conducted by any of Dai-Ichi's other subsidiaries. The
Board has previously determined that CIT was entitled
to the privileges of exemption D after its acquisition by
MHC. 9 For the reasons stated in that Order, and the
reasons stated in the Board's Sovran decision, the
Board has determined that CIT may continue to engage in insurance activities pursuant to exemption D
following its acquisition by Dai-Ichi. 10
Based on the foregoing and other facts of record, the
Board has determined that the public benefits associated with this proposal can reasonably be expected to
outweigh possible adverse effects, and that the balance
of the public interest factors that the Board is required
to 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,
subject to the conditions contained in this Order. This
determination is further subject to all of the conditions
set forth in the Board's Regulation Y, including those
in section 225.4(d) and 225.23(b), and to the Board's
authority to require modification or termination of the
activities of the holding company or any of its subsidiaries as the Board finds necessary to assure compliance with, 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 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 15, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Kelley, and LaWare. Voting against this action:
Governor Seger. Absent and not voting: Governor Angell.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
maintains its separate corporate structure and its insurance activities
are not extended to other subsidiaries within the acquiror's banking
organization. Sovran Financial Corporation, 73 Federal
Reserve
Bulletin 672 (1987). This determination has been upheld by the courts.
National Ass'n of Casualty and Surety Agents v. Board of Governors,
856 F.2d 282, reh'g denied en banc, 862 F.2d 351 (D.C. Cir. 1988),
cert, denied, _ U.S. _ , 109 S. Ct. 2430 (1989).
9. Manufacturers Hanover Corporation, 70 Federal Reserve Bulletin 452 (1984).
10. Pursuant to exemption D, CIT may sell insurance only in New
York, the home state of MHC under the Douglas Amendment, states
adjacent to New York, and states where MHC conducted insurance
agency activities on May 1, 1982.
77
National City Corporation
Cleveland, Ohio
Order Approving Applications to Acquire a Savings
Association and to Engage in Other Permissible
Nonbanking Activities
National City Corporation, Cleveland, Ohio ("National City"), a bank holding company within the meaning
of the Bank Holding Company Act (the "BHC Act"),
has applied for the Board's approval under section
4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and
section 225.23 of the Board's Regulation Y (12 C.F.R.
225.23), to acquire GEM Savings Association, Dayton, Ohio ("GEM"), a savings association, pursuant
to section 225.25(b)(9) of the Board's Regulation Y
(12 C.F.R. 225.25(b)(9)). National City also has applied for Board approval to acquire indirectly:
(a) GEM Mortgage Corporation of North America,
Dayton, Ohio, and thereby engage in mortgage
banking, pursuant to 12 C.F.R. 225.25(b)(1);
(b) GEM America Realty and Investment Corporation, Dayton, Ohio, and thereby engage in originating real estate loans, pursuant to 12 C.F.R.
225.25(b)(1), and real estate appraisal services, pursuant to 12 C.F.R. 225.25(b)(13);
(c) GEM Financial Corporation, Dayton, Ohio, and
thereby engage in discount brokerage services, pursuant to 12 C.F.R. 225.25(b)(15); and
(d) Cen-Pro, Inc., Dayton, Ohio, and thereby engage in arranging commercial real estate equity
financing, pursuant to 12 C.F.R. 225.25(b)(14).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (54 Federal Register 48,025 (1989). The time
for filing comments has expired, and the Board has
considered the applications and all comments received
in light of the public interest factors set forth in section
4(c)(8) of the BHC Act.
Section 601 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, Pub.L. 10173, § 601, 101 Stat. 183, 408 (as codified at 12 U.S.C.
§ 1843(i)) ("FIRREA"), permits the Board to approve
an application by a bank holding company to acquire a
savings association under section 4(c)(8) of the BHC
Act. Pursuant to this authority, the Board has determined that the operation of a savings association is
closely related to banking and permissible for bank
holding companies. 12 C.F.R. 225.25(b)(9).1 The
1. In making this determination, the Board required that savings
associations acquired by bank holding companies conform their direct
and indirect activities to those activities permissible for bank holding
companies under section 4 of the BHC Act. National City proposes to
conform all of the direct and indirect activities of GEM to the
requirements of section 4(c)(8) of the BHC Act upon consummation
78
Federal Reserve Bulletin • February 1990
Board also has determined that mortgage banking, real
estate appraisal services, arranging commercial real
estate equity financing, and discount brokerage are
closely related to banking. 12 C.F.R. 225.25(b)(1),
(b)(13), (b)(14), and (b)(15). Applicant proposes to
conduct these activities within the limits and conditions set forth in the Board's regulations.
National City, which operates 18 banking subsidiaries, has total consolidated assets of $21.6 billion, and is
the largest commercial banking organization in Ohio,
with deposits of $12.4 billion. National City also
engages through several subsidiaries in permissible
nonbanking activities.
GEM, with total assets of $1.6 billion, is the seventh
largest savings association in Ohio.2 GEM currently operates 24 branches in Ohio and controls several companies engaged in activities permissible for a savings association. GEM is currently operating as a mutual savings
association. Prior to the acquisition, GEM will convert
from mutual to stock form, with National City purchasing
all of the outstanding stock of GEM.
In order to approve these applications, the Board
also is required to determine that the performance of
the proposed activities by National City "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).
The financial and managerial resources and future prospects of National City and its bank subsidiaries, and GEM
are consistent with approval. In assessing the financial
factors, the Board believes that bank holding companies
must maintain adequate capital at savings associations
they propose to acquire. In this case, National City's
acquisition of GEM will result in a capital infusion of
approximately $105 million into GEM. Upon consummation, National City will raise the Tier 1 capital of GEM,
exclusive of all intangible assets, to at least three percent
of the total assets of GEM. In addition, National City has
committed that GEM will meet all present and future
minimum capital ratios adopted for savings associations
by the Office of Thrift Supervision or the Federal Deposit
Insurance Corporation.
except for four activities conducted in three operating subsidiaries.
The three operating subsidiaries are GEM Financial Corporation,
which sells security alarm systems and services, R.E.C.O.R.P., which
engages in activities similar to activities engaged in by a community
development corporation, and GEM America Realty and Investment
Corporation, which engages in property management for third parties,
and in real estate development activities. National City has committed
that the impermissible activities of these three subsidiaries will be
divested within two years of consummation. See, e.g., F.N.B. Corporation, 71 Federal Reserve Bulletin 340 (1985).
2. All data are as of June 30, 1989.
Upon consummation of the proposed acquisition,
National City would be the largest commercial banking
organization in Ohio, controlling $13.6 billion in deposits in the State, representing an approximate
10 percent share of deposits in depository institutions in
Ohio. In the Board's view, consummation of this proposal would not have a significantly adverse effect upon
the concentration of banking organizations in Ohio.
National City and GEM operate depository institutions
in the Dayton, Ohio banking market. 3 In the Dayton
market, National City is the third largest depository
institution, with 11.8 percent of the deposits in the market.
GEM is the fifth largest depository institution with 7.9
percent of the deposits in the market. Upon consummation of this proposal, National City would become the
largest commercial depository organization with 25.6 percent of total deposits.4 Although consummation of this
proposal would eliminate some existing competition between National City and GEM in the Dayton, Ohio
banking market, 36 other depository institutions would
continue to compete in the market. This acquisition would
result in an increase of the Herfindahl-Hirschman Index
("HHI") of 324 points to a level of 1439.5 In view of the
fact that the Dayton market would remain only moderately concentrated, the Board concludes that the acquisition would not have a substantially adverse effect on
existing competition in the Dayton market.
National City also has applied, pursuant to section
4(c)(8) of the BHC Act, to acquire certain nonbanking
subsidiaries of GEM. National City and GEM operate
subsidiaries that engage in permissible mortgage and nonmortgage commercial banking, and discount brokerage
activities. The market share controlled by each of these
subsidiaries is small, and there are numerous competitors
for their services. Accordingly, consummation of this
proposal would have a de minimis effect on existing
competition in each of the markets, and the Board con-
3. The Dayton banking market includes: all of Greene, Miami, and
Montgomery Counties, and portions of Clark and Warren Counties,
all in Ohio.
4. The pre-consummation market share statistics are based on
calculations in which the deposits of GEM and all other thrifts are
included at 50 percent. Upon consummation of the proposal, GEM
would be affiliated with a commercial banking organization, thus, on a
pro forma basis, the deposits of GEM are included at 100 percent,
while the deposits of other savings associations continue to be
included at 50 percent.
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is above 1800 is considered highly concentrated. In such markets, the Department is likely to challenge a merger that increases the
HHI by more than 50 points. The Department has informed the Board
that a bank merger or acquisition generally will not be challenged (in
the absence of other factors indicating anticompetitive effects) unless
the post-merger HHI market is at least 1800 and the merger increases
the HHI by 200 points. The Justice Department has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognize the competitive effect of
limited-purpose lenders and other non-depository financial entities.
Legal Developments
eludes that the proposal would not have any significantly
adverse effect on the competition in the provision of these
services in any relevant market.
There is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices,
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of
public interest factors it must consider under section
4(c)(8) of the BHC Act is favorable and consistent with
approval of National City's applications to acquire
GEM and certain of its nonbanking subsidiaries.
Based upon consideration of all the relevant facts, the
Board concludes that the balance of the public interest
factors that the Board is required to consider under
section 4(c)(8) is favorable. Accordingly, based on all
facts of record, and subject to the commitments made
by National City set forth in this Order, the Board has
determined that the proposed applications should be,
and hereby are, approved. This determination is also
subject to all of the conditions set forth in the Board's
Regulation Y, including sections 225.4(d) and 225.23,
and to the Board's authority to require such modifications or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, or to prevent
evasion of, the provisions and purposes of the BHC
Act and the Board's regulations and Orders issued
thereunder. The transaction shall be made not later
than three months after the effective date of this
Order, unless such Order is extended for good cause
by the Board or by the Federal Reserve Bank of
Cleveland, pursuant to delegated authority.
By order of the Board of Governors, effective
December 19, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare.
J E N N I F E R J. JOHNSON
Associate Secretary of the Board
Norwest Corporation
Minneapolis, Minnesota
Order Approving Application to Underwrite and
Deal in Certain Securities to a Limited Extent, and
to Engage in Certain Related Securities Activities
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section
79
225.23 of the Board's Regulation Y (12 C.F.R. 225.23),
for its subsidiary, Norwest Investment Services, Inc.,
Minneapolis, Minnesota ("Company"), 1 to:
(1) provide investment advisory and brokerage services on a combined basis to institutional and retail
customers ("full-service brokerage activities");
(2) underwrite and deal in U.S. government and
other bank-eligible securities;
(3) underwrite and deal in, to a limited extent,
municipal revenue bonds, 1-4 family mortgagerelated securities, commercial paper and consumerreceivable-related securities ("bank-ineligible securities");
(4) act as agent in the private placement of all types
of securities, including providing related advisory
services;
(5) purchase and sell all types of securities on the
order of investors as a "riskless principal" ;
(6) purchase and sell silver and gold bullion and
coins for the accounts of customers;
(7) lease personal and real property and act as agent,
broker, or adviser in leasing such property; and
(8) engage in futures commission merchant activities
and provide investment advice on futures contracts
and options.
Norwest, with consolidated assets of $23.1 billion, is
the 30th largest banking organization in the nation. It
operates 38 subsidiary banks and engages directly and
through subsidiaries in a variety of permissible nonbanking activities. 2
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (54 Federal Register 33,967
(1989)). The time for filing comments has expired, and
the Board has considered the application and all comments received in light of the public interest factors set
forth in section 4(c)(8) of the BHC Act. The Board
received written comments opposing Board approval of
the application from the Securities Industry Association ("SIA"), a trade association of the investment
banking industry, and the Investment Company Institute ("ICI"), a trade association of the mutual fund
industry.
The Board has previously determined by regulation
that leasing personal and real property and acting as
agent, broker, or adviser in leasing such property;
underwriting and dealing in bank-eligible securities;
1. Company is currently an operating subsidiary of Norwest's lead
bank, Norwest Bank Minnesota, N.A., Minneapolis, Minnesota
("Bank"). Norwest proposes to combine the operations of Company
with another operating subsidiary of Bank, Norwest Brokerage Services, Inc., Minneapolis, Minnesota. Company, as the surviving
entity, would then become a direct subsidiary of Norwest.
2. Data are as of June 30, 1989.
80
Federal Reserve Bulletin • February 1990
acting as a futures commission merchant; and providing
investment advice on financial futures and options on
futures are permissible nonbanking activities for bank
holding companies under section 4(c)(8) of the BHC
Act and the Board's Regulation Y. 12 C.F.R.
225.25(b)(5),(16),(18) and (19). Norwest has proposed
to engage in these activities in accordance with all of the
conditions set forth in Regulation Y.
The Board has previously determined by order that
the purchase and sale of silver and gold bullion and
coins for the accounts of customers is a permissible
nonbanking activity for bank holding companies under
section 4(c)(8) of the BHC Act. United Virginia Bankshares, Inc., 73 Federal Reserve Bulletin 309 (1987).
Norwest has stated that Company will engage in this
activity in accordance with all of the conditions set
forth in the Board's previous Order.
The Board has also previously determined by order
that full-service brokerage is a permissible nonbanking
activity for bank holding companies under section
4(c)(8) of the BHC Act. PNC Financial Corp., 75
Federal Reserve Bulletin 396 (1989); Bank of New
England Corporation, 74 Federal Reserve Bulletin 700
(1988). Norwest has stated that Company will engage
in this activity in accordance with all of the conditions
set forth in these Orders.
The ICI has objected that, to the extent that Company proposes to broker securities issued by investment companies advised by Norwest or to advise
brokerage customers regarding such securities, the
proposed activities are inconsistent with the GlassSteagall Act and with the Board's interpretive rule
governing investment advisory services by bank holding companies. Company proposes to act as broker for
shares of investment companies that are advised by
Norwest's lead bank, Norwest Bank Minnesota, N.A.
("Bank"). The Board's interpretive rule prevents a
bank holding company from engaging directly or indirectly in the sale or distribution of securities of any
investment company for which it acts as investment
adviser. 12 C.F.R. 225.125(h).
While the Board's interpretive rule does not apply in
this situation because Bank, 3 and not Norwest or one
3. By its terms, the Board's interpretive rule does not apply where
an investment company is advised by a subsidiary bank, rather than
by a parent bank holding company or a nonbank subsidiary. The
interpretive rule was issued in connection with the Board's adoption
of a regulation pursuant to its authority under section 4(c)(8) of the
BHC Act to approve nonbanking activities for bank holding companies and their nonbanking subsidiaries. Section 4(c)(8) does not
empower the Board to authorize activities for banks. The Supreme
Court has recognized that the authority of national banks and state
banks to engage in investment advisory activities does not derive
from the Board's regulation, and that the Board's interpretive rule
applies only to the investment advisory activities of bank holding
companies and their nonbank subsidiaries. Board of Governors of
Federal Reserve System v. Investment Company Institute, 450 U.S.
of its direct or indirect nonbank subsidiaries, is advising the investment companies in question, the practices at which the prohibition against sale or distribution of shares of investment companies being advised
are directed are not present here. The main purpose of
the prohibition was to assure that the holding company
does not become involved in underwriting and dealing
in the shares of investment companies it advises. 4 In
this case, Norwest proposes to act only as agent for
customers desiring to purchase or sell investment
company securities, and therefore would not underwrite or deal in those securities. 5
Moreover, Norwest has committed that Company
will not provide investment advice to brokerage customers regarding shares of investment companies that
are advised by Norwest or any of its affiliates, including Bank. Norwest has also committed that Company
will disclose to its brokerage customers who purchase
such shares that these investment companies are sponsored by third parties independent of Bank and its
affiliates. The disclosure statement will also state that
such shares or interests are not endorsed or guaranteed by, and do not constitute obligations of Bank or
its affiliates. Finally, this statement will state that the
investment company shares are not insured by the
Federal Deposit Insurance Corporation. 6 Accordingly,
the Board does not believe that the potential conflicts
of interest which the Glass-Steagall Act and the
Board's interpretive rule were intended to prevent
would be present should Company broker shares of
investment companies that are advised directly by
Bank.
The Board notes that it issued its regulation and
interpretive rule in 1972, and that subsequent developments, such as court decisions in Schwab and in other
cases, suggest the need for reexamination of some of
the views expressed at that time. As a result, the Board
is considering seeking public comment regarding a
proposed revision of the interpretive rule.
46, 59 n.25 (1981). Indeed, the Office of the Comptroller of the
Currency has issued an interpretive letter authorizing national banks
and their subsidiaries to broker and recommend securities of investment companies for which such national banks or their subsidiaries
serve as investment adviser. See OCC Interpretive Letter No. 403
(December 9, 1987), reprinted in Fed. Banking L. Rep. (CCH) para.
85,627, at 77,962.
4. Id. at 62, 66.
5. It is settled that buying and selling securities as a broker on the
order and for the account of customers does not constitute underwriting or dealing in securities for purposes of section 20 of the GlassSteagall Act (12 U.S.C. § 377), which regulates the activities of
affiliates of member banks. Securities Industry Association v. Board
of Governors, 468 U.S. 207, 216-21 (1984) ( " S c h w a b " ) .
6. The Board notes that Bank is required by the Office of the
Comptroller of the Currency to disclose such information to brokerage
customers of its operating subsidiary. See OCC Interpretive Letter
No. 415 (February 12, 1988), reprinted in [Current] Fed. Banking L.
Rep. (CCH) para. 85,639, at 78,000.
Legal Developments
With regard to the proposed ineligible securities
underwriting and dealing activity, the conduct of such
activity has been determined by the Board to be
consistent with section 20 of the Glass-Steagall Act
provided the underwriting subsidiary derives no more
than 10 percent of its total gross revenue from underwriting and dealing in the approved securities over any
two-year period. 7 The Board also found that, subject
to the prudential framework of limitations established
in those cases to address the potential for conflicts of
interests, unsound banking practices or other adverse
effects, the proposed underwriting and dealing activities are so closely related to banking as to be a proper
incident thereto within the meaning of section 4(c)(8)
of the BHC Act. 8 Norwest has committed that Company will conduct its underwriting and dealing activities with respect to bank-ineligible securities subject to
the 10 percent revenue test and the prudential limitations established by the Board in its Citicorp!Morgan/
Bankers Trust, Chemical, and Modification Orders.
Finally, the Board has previously determined that
acting as agent in the private placement of securities
and purchasing and selling securities on the order of
investors as a "riskless principal" do not constitute
underwriting and dealing in securities for purposes of
section 20 of the Glass-Steagall Act, and that revenue
derived from these activities is not subject to the 10
percent revenue limitation on ineligible securities underwriting and dealing. 9 Additionally the Board found
that subject to the prudential limitations established in
that case to address the potential for conflicts of
interests, unsound banking practices or other adverse
effects, the proposed private placement and riskless
principal activities are so closely related to banking as
to be a proper incident thereto within the meaning of
section 4(c)(8) of the B H C A c t . 1 0 Norwest has com-
7. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust
New York Corporation, 73 Federal Reserve Bulletin 473 (1987) ("Citicorp/Morgan/Bankers
Trust"), ajf d sub nom., Securities
Industry
Association v. Board of Governors of the Federal Reserve System, 839
F.2d 47 (2d Cir. 1988), cert, denied, 108 S.Ct 2830 (1988) ("SIA v.
Board"); and Chemical New York Corporation, The Chase Manhattan Corporation, Bankers Trust New York Corporation,
Citicorp,
Manufacturers Hanover Corporation and Security Pacific Corporation, 73 Federal Reserve Bulletin 731 (1987) ("Chemical"); as modified by Order Approving Modifications
to Section 20 Orders, 75
Federal Reserve Bulletin 751 (1989) ("Modification Order").
8. The ICI has objected to Norwest's proposal to the extent that it
could be construed to seek approval for Company to underwrite, deal
in, or privately place as agent securities of investment companies that
are advised by Company or Norwest. As noted above, Norwest has
not requested approval to underwrite, deal in, or privately place as
agent such securities.
9. Bankers Trust New York Corporation,
75 Federal
Reserve
Bulletin 829 (1989) ("Bankers Trust").
10. The SIA argues that the fact that Norwest is proposing that
Company privately place all types of securities, as opposed to only
high grade commercial paper notes, is significant in assessing the
applicability of the Glass-Steagall Act prohibitions in this case.
81
mitted that Company will conduct its private placement and riskless principal activities using the same
methods and procedures, and subject to the same
prudential limitations established by the Board in the
Bankers Trust Order. 11
Consummation of the proposal would provide added
convenience to Norwest's customers. In addition, the
Board expects that the de novo entry of Norwest into
the market for some of these services would increase
the level of competition among providers of these
services. Under the framework established in this and
prior decisions, consummation of this proposal is not
likely to result in any significant undue concentration
of resources, decreased or unfair competition, conflicts of interests, unsound banking practices, or other
adverse effects. Accordingly, the Board has determined that the performance of the proposed activities
by Norwest can reasonably be expected to produce
public benefits which would outweigh adverse effects
under the proper incident to banking standard of
section 4(c)(8) of the BHC Act. 12
Based on the above, the Board has determined to
approve Norwest's application subject to all of the
terms and conditions set forth in the above-noted
provisions of Regulation Y that relate to these activities, and subject as well to all of the terms and
conditions set forth in this Order and in the abovenoted Board Orders that relate to these activities. 13
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
Securities Industry Association v. Board of Governors, 807 F.2d 1052
(D.C. Cir. 1986), cert, denied, 483 U.S. 1005 (1987) ("Bankers Trust
II"). The Board has fully considered and rejected this argument in
Bankers Trust, where the Board found that the fact that a bank holding
company wishes to privately place all types of securities in a manner
similar to that used in placing high grade commercial paper, would
not, by itself, change the activity into underwriting and dealing
activities that would be prohibited under the Glass-Steagall Act.
11. The ICI has also objected to the proposal to the extent that it
would allow Norwest to underwrite, deal in, or privately place
ineligible securities issued by its affiliates or representing interests in,
or secured by, obligations originated or sponsored by an affiliate of
Company. For the reasons set forth in the Modification Order, and in
Bankers Trust, and subject to the limitations set forth in those orders,
the Board believes that Company may, consistent with the GlassSteagall Act, underwrite, deal in, or privately place such securities.
Norwest has committed that Company will comply with the limitations set forth in the above-mentioned orders with respect to this
activity.
12. Company may also provide services that are necessary incidents
to these approved activities. Any activity conducted as a necessary
incident to the ineligible securities underwriting and dealing activity
must be treated as part of the ineligible securities activity unless
Company has received specific approval under section 4(c)(8) of the
BHC Act to conduct the activity independently. Until such approval
is obtained, any revenues from the incidental activity must be counted
as ineligible revenue subject to the 10 percent gross revenue limit set
forth in the Modification
Order.
13. In light of the decision in SIA v. Board, Norwest will not be
subject to the market share limitation with respect to its ineligible
activities that was originally imposed in the
CiticorplMorganlBankers
Trust and Chemical Orders.
82
Federal Reserve Bulletin • February 1990
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 a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions 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 such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Minneapolis, pursuant to delegated authority.
By order of the Board of Governors, effective
December 20, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Kelley, and LaWare. Absent and not voting:
Governor Angell.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Premier Bancorp, Inc.
Baton Rouge, Louisiana
Order Approving an Application to Engage in Loan
Recovery and Collection Agency Activities
Premier Bancorp, Inc., Baton Rouge, Louisiana
("Premier Bancorp"), a bank holding company within
the meaning of the Bank Holding Company Act (the
"BHC Act"), has applied pursuant to section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23(a) of the Board's Regulation Y (12 C.F.R.
225.23(a)), to establish Florida Street National Bank
(In Liquidation), Baton Rouge, Louisiana ("Florida
Street Bank"), and thereby engage de novo in loan
recovery and collection activities.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (54 Federal Register 34,248 (1989)).
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.
Premier Bancorp, with total consolidated assets of
$4.2 billion, is the third largest commercial banking
organization in Louisiana. 1 Premier Bancorp operates
one bank subsidiary, Premier Bank, N.A., Baton
Rouge, Louisiana ("Premier Bank"), with branches
throughout Louisiana, and engages subsidiaries in a
variety of nonbanking activities.
1. All banking data are as of September 30, 1989.
Premier Bancorp proposes to acquire approximately
4.9 percent of the voting shares and 46 percent of the
total equity of Florida Street Bank. 2 Florida Street
Bank, upon receiving a national bank charter, 3 will be
a limited-purpose de novo bank in voluntary liquidation engaged solely in liquidating assets acquired from
Premier Bancorp and certain of its banking subsidiaries.
The proposed activities of Florida Street Bank are
encompassed within the authorization in the Board's
Regulation Y for bank holding companies to make,
acquire, or service loans or other extensions of credit,
12 C.F.R. 225.25(b)(1), and to operate a collection
agency, 12 C.F.R. 225.25(b)(23).4 Accordingly, Premier Bancorp's proposed activities are closely related
to banking and are permissible for bank holding companies.
In order to approve this application, the Board also
must find that the performance of the proposed activities can reasonably be expected to produce benefits to
the public, such as greater convenience, increased
competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts
of interest, or unsound banking practices.
In evaluating the balance of public benefits associated with this proposal, the Board has considered
Premier Bank's proposal to provide partial financing to
Florida Street Bank through acceptance of a subordinated note as part of the consideration for Premier
Bank's transfer of assets to the liquidating bank.
Premier Bank's acceptance of the note would represent retention of potential risk of loss on the collection
of the assets to be sold.
As a general matter, the Board believes it is inappropriate for banks to finance the divestiture of their
own low-quality assets, as proposed here. In this case,
Premier Bank proposes to provide financing to Florida
Street Bank in excess of the amounts permitted in
section 23A of the Federal Reserve Act (12 U.S.C.
§ 371c) and would fail to meet the collateral requirements under that statute. The loan Premier Bank
proposes to extend would be subordinated to the bond
holders of Florida Street Bank and would be payable
2. The acquisition of 46 percent of the total equity of Florida Street
Bank necessitates an application under section 4(c)(8) of the BHC
Act. See Mellon Bank Corporation, 74 Federal Reserve Bulletin 773
(1988). Cf. 12 C.F.R. 225.143(d)(5).
3. Florida Street Bank will not accept deposits, will not grant credit
to the public in the ordinary course of business, and will not be insured
by the Federal Deposit Insurance Corporation. Accordingly, Florida
Street Bank will not be a "bank" for the purposes of the BHC Act.
12 U.S.C. § 1841(c). See also Federal Reserve Regulatory Service
H 4-363.
4. See also Mellon Bank Corporation, 74 Federal Reserve Bulletin
773 (1988).
Legal Developments
only from the proceeds of collections on the lowquality liquidated assets by Florida Street Bank. As a
result, retention of this loan would, in the Board's
view, represent retention of a low-quality asset with
the potential for further losses to Premier Bank. In
light of this and the other facts of record, the Board
has conditioned its approval of this application on the
requirement that there be no direct or indirect funding
by Premier Bank of Florida Street Bank through the
issuance of a subordinated note to Premier Bank or
other extension of credit. 5
Subject to the foregoing condition and based on all
the facts of record, the Board has determined that
there is no evidence in the record to indicate that
Premier Bancorp's proposed activity would lead to
undue concentration of resources, decreased or unfair
competition, unsound banking practices, or other adverse effects. The establishment of Florida Street
Bank is part of Premier Bancorp's reorganization,
which will result in the divestiture and liquidation of
low-quality assets and the issuance of new equity
capital.
Based upon the foregoing and all the facts of record,
the Board has determined that the balance of the
public interest factors that it is required to consider
under section 4(c)(8) is favorable. Accordingly, subject to the condition in this Order, the application is
hereby approved. This determination is further subject
to all of the conditions set forth in Regulation Y,
including sections 225.4(d) and 225.23(b) of the
Board's Regulation Y, 12 C.F.R. 225.4(d) and
225.23(b), and to the Board's authority to require such
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, or
prevent evasions of, the provisions and purposes of
the BHC Act and the Board's regulations and orders
issued thereunder. The Board's determination is also
conditioned on the prior receipt by Applicant of approval from the Office of the Comptroller of the
Currency to establish Florida Street Bank.
This activity shall not be commenced later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Atlanta,
pursuant to delegated authority.
By order of the Board of Governors, effective
December 22, 1989.
5. In connection with this proposal, Premier Bancorp requested an
exemption from the requirements of section 23A of the Federal
Reserve Act (12 U. S. C. § 371 c) for the subordinated note transaction
between Premier Bank and Florida Street Bank. In light of the
condition established by the Board pursuant section 4(c)(8) of the
BHC Act precluding such a transaction, it is not necessary for the
Board to address the exemption request.
83
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
Concurring Statement of Governor Seger
I concur with the Board's action in this case. I agree
with the Board's determination that, subject to the
condition that Premier Bank not finance the proposed
asset sale to Florida Street Bank, the transaction may
be expected to have a favorable impact on the financial
condition of Premier Bancorp. However, I would
permit Premier Bank to finance temporarily the proposed asset sale, and grant Premier Bancorp a reasonable time following the transfer of assets to Florida
Street Bank within which to sell the note, rather than
require that the transaction be done without temporary
financing by Premier Bank at any time. In my view,
some period of time to finance the asset sale and
dispose of the note would permit Applicant an opportunity to obtain full value for the note and would be
more practical in light of simultaneous efforts by other
banking organizations and the federal bank and thrift
regulators to dispose of other problem assets at this
time.
December 22, 1989
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
First Union Corporation
Charlotte, North Carolina
Order Approving the Acquisition of a Bank Holding
Company
First Union Corporation, Charlotte, North Carolina,
and First Union Corporation of Florida, Jacksonville,
Florida (together "First Union"), bank holding companies within the meaning of the Bank Holding Company Act of 1956 ("BHC Act"), have applied for the
Board's approval under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire all of the voting shares
of Florida National Banks of Florida, Inc., Jacksonville, Florida ("Florida National"), and thereby to
acquire Florida National Bank, Jacksonville, Florida,
and Kingsley Bank, Orange Park, Florida. 1 First
Union also has applied under section 4(c)(8) of the
1. First Union proposes to merge Florida National with First Union
Corporation of Florida, and thereby indirectly acquire Florida National's subsidiary banks.
84
Federal Reserve Bulletin • February 1990
BHC Act (12 U.S.C. § 1843(c)(8)) to acquire Florida
Investment Management Company, Jacksonville,
Florida, and thereby engage in investment advisory
activities, and Florida National Insurance Services,
Inc., Jacksonville, Florida, and thereby engage in the
reinsurance of credit-related life, accident, health and
disability insurance. These activities are authorized
for bank holding companies pursuant to the Board's
Regulation Y, 12 C.F.R. 225.25(b)(4) and (8)(i).
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the BHC
Act (54 Federal Register 27,062 (1989)). 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 BHC Act.
Douglas
Amendment
Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of
any bank located outside of the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in
which [the] bank is located, by language to that effect
and not merely by implication." 2 The Florida Regional
Reciprocal Banking Act of 1984 specifically authorizes
the acquisition of Florida banks and bank holding
companies by banking institutions located in North
Carolina, 3 and the Board has determined previously
that the acquisition of a Florida bank holding company
by a North Carolina bank holding company is not
barred by the Douglas Amendment. 4
Competitive
While consummation of the proposal would result in
a large increase in the HHI and the elimination of a
competitor in the Jacksonville banking market, the
Board believes that a number of factors mitigate the
competitive effects of this proposal. In particular, the
Board has considered the presence of thrift institutions
in the Jacksonville banking market in its analysis of
Considerations
First Union controls five banking institutions in North
Carolina, Florida, Georgia, South Carolina and Tennessee. First Union is the fifth largest commercial
banking organization in Florida, controlling deposits
of $6.8 billion, representing approximately 6.6 percent
of the total deposits in commercial banks in the state. 5
Florida National is the sixth largest commercial banking organization in Florida, with deposits of $6.0
billion, representing approximately 5.8 percent of the
total deposits in commercial banks in the state. Upon
consummation of the proposal and all planned divestitures, First Union would become the second largest
2.
3.
4.
5.
commercial banking organization in Florida, controlling deposits of approximately $12.6 billion, representing approximately 12.4 percent of the total deposits in
commercial banking organizations in Florida. Consummation of this proposal would not have a significantly adverse effect upon the concentration of commercial banking resources in Florida.
First Union and Florida National compete directly
in 19 banking markets in Florida. 6 In the Jacksonville
market, First Union is the third largest of nineteen
commercial banking organizations, controlling $1.4
billion in deposits, representing approximately 24.1
percent of total deposits in commercial banking organizations in that market ("market deposits"). 7 Florida
National is the largest commercial banking organization in the Jacksonville market, controlling $1.5 billion
in deposits, representing approximately 25.7 percent
of market deposits. Upon consummation of this proposal, First Union would become the largest commercial banking organization in the market, controlling
$2.9 billion in deposits, representing approximately
49.8 percent of market deposits. 8 The Jacksonville
banking market is considered to be highly concentrated, with the four largest commercial banking organizations controlling 80.2 percent of the market deposits. The Herfindahl-Hirschman Index ( " H H I " ) for the
market is 1955 and would increase by 1236 points to
3191 upon consummation of the proposal. 9
12 U.S.C. § 1842(d).
Fla. Stat. Ann. § 658.295 (1984).
First Union Corporation, 71 Federal Reserve Bulletin 971 (1985).
State deposit data are as of June 30, 1989.
6. These markets are Jacksonville; North Brevard County; South
Brevard County; Daytona Beach; Gainesville; Indian River County;
North Lake County; Miami-Fort Lauderdale; N e w Smyrna Beach;
Orlando; East Palm Beach County; Pensacola; Pinellas County; West
Polk County; Port Charlotte; North Seminole County; St. Johns
County (St. Augustine area); Tampa; and West Volusia County.
7. The Jacksonville banking market is approximated by Baker,
Clay, Duval and Nassau counties, as well as the Ponte Vedra Beach
portion of St. Johns County.
8. Market data are as of June 30, 1988.
9. 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 Department is likely to challenge a merger that
increases the HHI by more than 50 points. The Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by 200 points. The Justice Department has
stated that the higher than normal HHI thresholds for screening bank
mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-depository financial entities.
Legal Developments
this proposal. 10 The record indicates that thrift institutions control approximately 26.9 percent of the combined deposits of banks and thrift institutions in the
market and exert a considerable competitive influence
on the market as providers of NOW accounts and
consumer loans. In addition, thrift institutions in the
market engage in the business of making commercial
loans and are providing an alternative for such services in the Jacksonville market. Based upon the size,
number, and market share of thrift institutions in the
Jacksonville banking market, the Board has concluded
that thrift institutions exert a competitive influence
that mitigates in part the anticompetitive effects of this
proposal. 11
In order to further mitigate the anticompetitive
effects that would otherwise result from consummation of this proposal, First Union has committed to
divest thirteen branches in the Jacksonville banking
market, controlling $210.5 million in deposits. The
Board has reviewed the effect of the transaction in this
market in light of the proposed divestiture. This divestiture represents approximately 4.0 percent of the
deposits held by commercial banks in the market and
has the potential to create a significant competitor in
the Jacksonville market. Where, as in this case, a
divestiture is proposed to avoid the otherwise substantial anticompetitive effects resulting from a proposed
acquisition, the Board has generally required that such
divestiture take place on or before the date of consummation of the acquisition. 12 The Board recognizes that
special circumstances exist in this case that justify a
limited exception to this policy. In particular, consummation of the proposal is expected to result in improvement in Florida National's performance and
avoid certain managerial and other problems that
could be associated with delay in consummation. First
Union has submitted a plan of divestiture and will
immediately commence the bidding process for the
sale of the branches to be divested. First Union
expects to complete the divestiture within six months
of consummation of the proposal and has committed to
complete the divestiture as soon as all regulatory
approvals permitting the divestiture have been ob-
10. The Board previously has indicated that thrift institutions have
become, or have the potential to become, important competitors of
commercial banks. See National City Corporation, 70 Federal Reserve Bulletin 743 (1984); The Chase Manhattan Corporation, 70
Federal Reserve Bulletin 529 (1984); NCNB Bancorporation,
70
Federal Reserve Bulletin 225 (1984); General Bancshares
Corporation, 69 Federal Reserve Bulletin 802 (1983); First Tennessee Corporation, 69 Federal Reserve Bulletin 298 (1983).
11. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, First Union's pro
forma market share would be 39.9 percent and the HHI would
increase by 768 points to 2283.
12. Barnett Banks of Florida, Inc., 68 Federal Reserve Bulletin 190
(1982); Interfirst Corporation, 68 Federal Reserve Bulletin 243 (1982).
85
tained. The Board believes that this divestiture proposal substantially mitigates the effects on competition
of this proposal in the Jacksonville banking market. 13
In reaching its decision, the Board has given substantial weight to the fact that eighteen commercial
banking organizations and twelve thrift institutions
would continue to operate in the market after consummation of the proposal, and that these remaining
competitors include the largest banking organizations
in Florida as well as a number of large regional bank
holding companies that have recently entered this
banking market. In addition, the Board notes that
fifty-six credit unions operate in the market and control over twelve percent of the market's deposits.
There is also a large number of national consumer and
commercial finance companies, as well as offices of
other nondepository providers of financial services in
the Jacksonville market, that offer a broad range of
competitive services. Furthermore, the Jacksonville
market is a major urban area in a rapidly growing state
and is attractive for entry. Three de novo banks have
opened in Jacksonville in the last five years, and a total
of six out-of-market commercial banking organizations
have entered the Jacksonville market by acquisition
since 1983.
In light of the facts of record, including the divestiture plan, the role of thrift institutions in the market,
the number of substantial competitors remaining in the
market, and other mitigating facts of record, the Board
has concluded that consummation of the proposal is
not likely to have a significantly adverse effect on
competition in the Jacksonville banking market.
The Board has also examined the effects of this
proposal in the other 18 banking markets where First
Union and Florida National compete. In thirteen of
these markets, the increase in the HHI upon consummation of the proposal would not exceed the limits in
the revised Department of Justice Merger Guidelines.
In the other five banking markets, if 50 percent of the
deposits held by thrift institutions were included in the
calculation of market concentration, the increase in
the HHI upon consummation of the proposal would
not exceed the revised Department of Justice Merger
Guidelines. Moreover, with 50 percent of deposits
held by thrift institutions included in the calculation of
market concentration, the resulting HHI is well below
1800 in 17 of the 18 markets. 14 Accordingly, consummation of this proposal would not have a significantly
13. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, First Union's pro
forma market share, after taking account of the planned divestitures,
would be 36.4 percent and the HHI would increase by 564 points to
2079.
14. See Appendix.
86
Federal Reserve Bulletin • February 1990
adverse effect on existing competition in any relevant
banking market.
The Board also has considered the effects of the
proposal on probable future competition in the relevant banking markets. In light of the market concentration and the number of probable future entrants into
those markets, the Board concludes that consummation of this proposal would not have a significantly
adverse effect on probable future competition in any
relevant market.
Financial Factors and Managerial
Resources
In evaluating these applications, the Board has considered the financial and managerial resources of First
Union and the effect on those resources of the proposed acquisition. The Board has stated and continues
to believe that capital adequacy is an important factor
in the analysis of bank holding company expansion
proposals. 15 In this regard, the Board has stated that it
expects banking organizations contemplating expansion proposals to maintain strong capital levels substantially above the minimum levels specified in the
Board's Capital Adequacy Guidelines 16 without significant reliance on intangibles, in particular goodwill.
The Board carefully analyzes the effect of expansion
proposals on the preservation or achievement of
strong capital levels and has adopted a policy that
there should be no significant diminution of financial
strength below these levels for the purpose of effecting
major expansion proposals. 17
In this case, First Union proposes to purchase all of
the outstanding common shares of Florida National
with a combination of primary capital instruments and
cash. A substantial amount of the cast portion of the
purchase price will be funded through secondary capital instruments. Although the proposal will result in a
modest decline in the capital ratios of First Union
following consummation of the proposal, First Union
will remain well capitalized with capital ratios significantly above the minimum levels specified in the
Board's Capital Adequacy Guidelines. In addition, the
projections of First Union's operations reflect First
15. The Bank of New York Company, Inc., 74 Federal
Reserve
Bulletin 257 (1988); Chemical New York Corporation, 73 Federal
Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497
(1986); National City Corporation, 70 Federal Reserve Bulletin 743
(1984).
16. Capital Adequacy Guidelines, 50 Federal Register
16,057
(April 24, 1985).
17. Thus, for example, the Board has generally approved proposals
involving a decline in capital only where the applicants have promptly
restored their capital to preacquisition levels following consummation
of the proposals and have implemented programs of capital improvement to raise capital significantly above minimum levels. See, e.g.,
Citicorp, 72 Federal Reserve Bulletin 726 (1986); Security Pacific
Corporation, 72 Federal Reserve Bulletin 800 (1986).
Union's ability to restore promptly First Union's
capital to pre-acquisition levels.
The Board has also reviewed the effect of this
proposal in light of Florida National's financial performance. In recent years, the financial position of Florida National has deteriorated. The quality of Florida
National's assets, particularly with respect to its real
estate portfolio, has resulted in a significant provision
for loan losses in early 1989 and has had a negative
impact on earnings. The extended period of time since
the announcement of the merger and the accompanying uncertainty with regard to Florida National's management has resulted in a further decline in Florida
National's financial and managerial resources. The
Board believes that First Union will provide the financial resources and stability to Florida National's management that is needed to strengthen Florida National
and improve its performance. Thus, considerations
relating to banking factors lend substantial weight
toward approval of this application.
Community Reinvestment
Act
In considering the convenience and needs of the
communities to be served by these institutions, the
Board has taken into account the record of First
Union's subsidiary banks under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA").
The CRA requires that federal financial supervisory
agencies encourage financial institutions to help meet
the credit needs of the local communities in which
they operate consistent with the safe and sound
operation of such institutions. To accomplish this
end, the CRA requires the appropriate federal supervisory authority to "assess the institution's record of
meeting the credit needs of its entire community,
including low- and moderate-income neighborhoods,
consistent with the safe and sound operation of the
institution." 12 U.S.C. § 2903. The Board is required to "take such record into account in its
evaluation" of applications under section 3 of the
BHC Act. >
8
18. During the public comment period, the Board received comments critical of the CRA performance of First Union's subsidiary
bank in Florida from Gulfcoast Legal Services, Bradenton, Florida,
on behalf of a coalition of organizations and residents of low- and
moderate-income communities located in Orange, Duval, Dade, and
Manatee Counties, Florida. In addition, the Board received a comment from the Charlotte Reinvestment Alliance critical of the CRA
performance of First Union's subsidiary bank in North Carolina.
Following discussions with First Union, these commenters have
withdrawn their comments.
An individual ("Protestant") has also filed a comment critical of
First Union's CRA record in Florida. Protestant alleges that First
Union has misrepresented its role in participating in lending in
low-income and minority areas in Florida in the CRA statement of
First Union's Florida bank subsidiary, and that loans described in the
Legal Developments
The Board has carefully reviewed the CRA performance record of First Union in light of the CRA, the
Board's regulations, and the Statement of the Federal
Financial Supervisory Agencies Regarding the Community
Reinvestment
Act
("Agency
CRA
Statement"). 19 The Agency CRA Statement provides
guidance regarding the types of policies and procedures that the supervisory agencies believe financial
institutions should have in place in order to fulfill their
responsibilities under the CRA on an ongoing basis
and the procedures that the supervisory agencies will
use during the application process to review an institution's CRA compliance and performance.
On October 30, 1989, the Board deferred action on
First Union's applications in order to permit the
Board to consider information regarding the CRA
performance of First Union's national bank subsidiaries that the Office of the Comptroller of the
Currency ( " O C C " ) obtained as part of a pending
CRA examination of these banks. The OCC recently
completed its CRA examination of First Union's
national bank subsidiaries and found a number of
deficiencies in the CRA performance of the subsidiaries in North Carolina, Florida, South Carolina and
Tennessee. The OCC's examination concluded that
First Union's North Carolina, Florida, Tennessee,
and South Carolina banks did not have an established
system to determine the credit needs of their communities on a regular basis. The examination found
that the banks did not regularly advertise the products that were designed to assist low- and moderateincome and minority areas. In addition, the banks did
not have an adequate method for reviewing the
geographic distribution of their loans and deposits.
Based upon its examination of these banks, the OCC
concluded that a number of First Union subsidiary
banks had an overall CRA rating that was less than
satisfactory.
As the primary regulator of First Union's bank
subsidiary in Florida, the OCC has recently reviewed
an application under the Bank Merger Act by First
Union to merge this national bank in Florida with
Florida National's bank subsidiaries. After concluding
its CRA examination of this bank, the OCC approved
the proposed merger. In approving this merger, the
CRA statement of First Union's Florida bank subsidiary were not for
the benefit of low-income and minority residents and businesses. The
Board has considered this comment and believes that this comment is
not supported by the record and, in view of all of the facts in this case,
does not warrant denial of the applications.
19. 54 Federal Register 13,742 (March 21, 1989). The comments
made by Protestant were directed solely to First Union's CRA record.
N o adverse comments have been received concerning Florida National's CRA record, and the Board notes that the primary supervisory
agency for Florida National's subsidiary banks has determined that
the CRA performance record of these banks is satisfactory.
87
OCC was required by the CRA to consider the CRA
performance of all of First Union's national bank
subsidiaries. The OCC concluded that the public benefits of First Union's proposal to provide financial and
managerial resources to Florida National's bank subsidiaries and the commitments by First Union's national bank subsidiaries to implement specific programs to improve their CRA performance outweighed
the past less than satisfactory CRA performance of
those banks. In connection with this action, the OCC
and First Union's national bank subsidiary in Florida
have entered into a written agreement that outlines the
steps the bank will take to improve its CRA performance. The OCC has conditioned its approval of the
First Union merger proposal on compliance with that
agreement.
In reviewing the CRA factor in this case, the Board
believes that the results of the OCC's examination
findings regarding the past CRA performance of First
Union's subsidiary banks, if considered alone, would
require a negative finding under the convenience and
needs factor. However, the CRA performance of an
institution, while a major component of the convenience and needs standard under the BHC Act, is not
the only factor reviewed under that standard. The
Board must also consider the other benefits of a
proposal in serving or maintaining the bank's service
to the needs of the community. Moreover, the convenience and needs assessment must also be balanced
against the financial, managerial and other relevant
standards under section 3 of the BHC Act.
In this case, the Board has considered as the overriding factor in its evaluation of the convenience and
needs standard the deteriorating condition of Florida
National and First Union's demonstrated ability to
provide the capital, financial and managerial support
necessary to enable Florida National's subsidiary
banks to continue to serve their customers in numerous banking markets in Florida, including low- and
moderate-income neighborhoods.
The Board has also taken into account the significant steps that First Union has taken in the past
several months to address weaknesses in its CRA
performance. Although commitments made in the applications process generally are not viewed as adequate to overcome a seriously deficient record, such as
First Union's, the Board has stated in the Agency
CRA Statement that commitments may be appropriate
in addressing CRA performance in certain circumstances, including in the context of an acquisition of a
troubled financial institution in order to ensure its
continued service to its community.
The Board believes that First Union's plans, when
fully implemented, would address the deficiencies in
First Union's CRA performance, and that First
88
Federal Reserve Bulletin • February 1990
Union's recent actions have demonstrated progress
toward correction of those deficiencies. In particular,
First Union's banks have recently implemented a
detailed and comprehensive corporate plan for implementing the type of CRA program outlined in the
Agency CRA Statement. This revised program includes designating CRA officers and conducting annual reviews of the CRA program by senior management of First Union, including creation of an office for
a corporate Director of Community Investment. To
insure an effective outreach program, First Union has
committed to establish specific goals for its commercial and consumer call officers with regard to business
development calls on minority businesses, minority
real estate agents and various public interest groups in
low- and moderate-income neighborhoods. First
Union has also recently issued an enhanced CRA
statement along the lines suggested by the Agency
CRA Statement. In addition, the banks have begun
geocoding their loan portfolio and analyzing the geographic distribution of their lending activities, have
formulated specific action plans to increase lending
activities in 18 key communities to address weaknesses noted in the banks' CRA performance in those
communities, and have committed more than $50
million to fund lending consortiums and pools to
increase lending in low- and moderate-income communities in Florida and North Carolina. Thus, although
the record indicates that First Union must continue to
improve its CRA performance, First Union has taken
significant steps to improve its CRA performance, and
has established the types of programs and corporate
structures necessary to continue to strengthen that
CRA performance. 20
In light of the significant public benefits that may be
expected from First Union's proposal to make its
financial and managerial resources available to Florida
National and the significant steps taken by First Union
to improve the CRA performance of its bank subsidiaries, and based on all the other facts of record in this
case, the Board believes that First Union's CRA
record does not, when viewed in the context of the
overall convenience and needs of the community,
preclude approval of these applications. For these
reasons, the Board also believes that, on balance, the
convenience and needs factor the Board must consider
20. The Board has received letters from the Florida State Conference of Branches of the National Association for the Advancement of
Colored People and from the Jacksonville Urban League, Inc.,
commending First Union's record of participation in community
development activities and serving the banking needs of local communities in Florida. These comments note in particular the improvement in First Union's CRA performance in recent years and First
Union's willingness to repair perceived deficiencies in its CRA performance.
is marginally consistent with approval of this proposal.
In taking this action, the Board has relied on all of the
representations made by First Union regarding the
programs and policies it has recently implemented and
proposes to implement. The Board conditions its action in this case on implementation by First Union of
all of these programs and policies as described in the
submissions made by First Union to the Board. The
Board will carefully examine future applications by
First Union to determine its progress in fulfilling its
CRA obligations and commitments, and believes that
First Union should not consider further bank expansionary proposals until it has demonstrated actual and
sustained progress in improving its CRA performance.
In connection with its approval of this case, the Board
has directed the Federal Reserve Bank of Richmond to
monitor First Union's progress in implementing the
CRA programs and policies as described to the Board,
and to report to the Board quarterly on First Union's
progress. In this regard, as a condition of its approval,
First Union and its bank subsidiaries must submit
periodic reports (no less infrequently than quarterly)
to the Federal Reserve Bank of Richmond that include
a description of the steps First Union has taken to
comply with its representations to the Board, the
results of First Union's loan analysis for communities
served by its banks, as well as specific steps it has
implemented to improve its CRA performance. 21
Nonbanking
Acquisitions
First Union has also applied, pursuant to section
4(c)(8) of the BHC Act, to acquire the investment
advisory and credit-related insurance subsidiary of
Florida National. As noted above, these activities are
permissible for bank holding companies under the
Board's Regulation Y. First Union operates subsidiaries that compete directly with Florida National in
21. Protestant has requested a public meeting or hearing on the
applications to provide testimony on the issues presented by these
applications. Although section 3(b) of the BHC Act does not require a
public meeting or hearing in this instance, the Board may, in its
discretion, order a public meeting or hearing. See 12 C.F.R. 262.3(e).
In that regard, the Board's Rules of Procedure provide that a public
meeting may be held to clarify factual issues related to an application
or to provide an opportunity for interested persons to testify.
12 C.F.R. 262.25(d). In addition, under the provisions of the Board's
Regulation Y, 12 C.F.R. 225.23(g), the Board shall order a hearing
only if there are disputed issues of material fact that cannot be
resolved in some other manner.
The Board has carefully considered the Protestant's request for a
public meeting or hearing. In the Board's view, the parties have had
ample opportunity to present their arguments in writing and to
respond to one another's submissions. In light of these facts, the
Board has determined that a public meeting or hearing is not necessary
to clarify the factual record in these applications, or otherwise
warranted in this case. Accordingly, Protestant's request for a public
meeting or hearing on these applications is hereby denied.
Legal Developments
89
APPENDIX
Effect on Competition in the Markets Where First Union and Florida National
Market
North Brevard County
South Brevard County
Daytona Beach
Gainesville
Indian River County
North Lake County
Miami—Fort Lauderdale
New Smyrna Beach
Orlando
East Palm Beach County
Pensacola
Pinellas County
West Polk County
Port Charlotte
North Seminole County
St. Johns County
Tampa
West Volusia County
Compete*
Existing
HHI
Increase
Resulting
HHI
1151
884
1103
1204
970
1133
433
1438
1287
538
1110
594
1521
1283
1556
3033
1075
1508
93
15
192
261
267
91
14
81
53
56
60
20
97
44
37
191
22
38
1244
899
1295
1465
1237
1224
447
1519
1340
594
1170
614
1618
1327
1593
3224
1097
1546
(*—Thrift deposits included at 50 percent)
these activities. Each of these subsidiaries has a small
market share and there are numerous competitors for
these services. As a result, consummation of the
proposal would have a de minimis effect on existing
competition for these services, and the Board concludes that the proposal would not have any significantly adverse effect on existing or probable future
competition in any relevant market. Furthermore,
there is no evidence in the record to indicate that
approval of this proposal would result in undue concentration of resources, unfair competition, conflicts
of interests, unsound banking practices, or other adverse effects on the public interest. Accordingly,
based on all the 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 and consistent with approval of First
Union's application to acquire the nonbanking subsidiaries of Florida National.
Conclusion
Based on the foregoing and other facts of record,
including First Union's divestiture and CRA commitments, the Board has determined that the applications
under sections 3 and 4 of the BHC Act should be, and
hereby are, approved. The proposal 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 Richmond, acting
pursuant to delegated authority. The determinations as
to the nonbanking activities are subject to all of the
conditions contained in Regulation Y, including those
in sections 225.4(d) and 225.23(b)(3) (12 C.F.R.
225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modification or termination of the
activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance
with, or prevent evasion of, the provisions and purposes of the BHC Act and the Board's regulations and
orders issued thereunder.
By order of the Board of Governors, effective
December 22, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Kelley, and LaWare. Absent and not voting:
Governor Angell.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
MNC Financial, Inc.
Baltimore, Maryland
Order Approving Merger of Bank Holding
Companies
MNC Financial, Inc., Baltimore, Maryland ("MNC"),
a bank holding company within the meaning of the
Bank Holding Company Act ( " B H C Act"), has
applied for the Board's approval under section 3 of
the BHC Act (12 U.S.C. § 1842), to merge with
90
Federal Reserve Bulletin • February 1990
Equitable Bancorporation, Baltimore, Maryland
("Equitable"), and thereby indirectly acquire Equitable Bank, N.A., Baltimore, Maryland, and Equitable Bank of Delaware, Dover, Delaware. MNC also
has applied for the Board's approval under section
4(c)(8) of the BHC Act to acquire the nonbanking
subsidiaries of Equitable. 1
MNC has also provided notice under section
4(c)(13) of the BHC Act (12 U.S.C. § 1843(c)(13)) of
its intent to acquire Equitable Bancorporation Overseas Finance N.V., which is a foreign corporation that
engages in raising funds for its parent.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (54 Federal Register 40,519 (1989)). 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 of the BHC Act.
MNC controls commercial banking institutions in
Maryland and Washington, D.C., as well as a credit
card bank in Delaware. MNC is the largest commercial
banking organization in Maryland, controlling deposits
of $6.5 billion, representing approximately 18.7 percent of the total deposits in commercial banks in the
state. 2 Equitable operates a commercial bank subsidiary in Maryland and a credit card bank in Delaware.
Equitable is the fourth largest commercial banking
organization in Maryland, with deposits of $3.3 billion,
representing 9.4 percent of the total deposits in commercial banks in the state. Upon consummation of the
proposal, MNC would remain the largest commercial
banking organization in Maryland, controlling deposits
of approximately $9.8 billion, representing approximately 28.1 percent of the total deposits in commercial
banking organizations in Maryland. Consummation of
this proposal would not have a significantly adverse
1. MNC proposes to acquire E.B. Mortgage Corporation, Towson,
Maryland, and thereby engage in making, acquiring, and servicing
mortgage loans for its own account and the accounts of others;
Internet, Inc., Reston, Virginia, and thereby engage in providing data
processing switching services for automated teller machine and point
of sale networks and providing and maintaining data processing
software to banks and other financial institutions; Equiban Life
Insurance Company, Baltimore, Maryland, and thereby engage in
underwriting, as reinsurer, credit life, accident and health insurance
and involuntary unemployment insurance in connection with extensions of credit by Equitable Bancorporation's subsidiaries and Fayette
Insurance Corporation, Baltimore, Maryland, and thereby engage in
acting as agent or broker for the sale of credit life, accident and health
insurance solely in connection with extensions of credit by Equitable
Bancorporation's subsidiaries.
These activities are authorized for bank holding companies pursuant to the Board's Regulation Y, 12 C.F.R. 225.25(b)(1), (7) and (8)(i).
In connection with this application, MNC has also applied to
acquire common stock equal to 24.9 percent of Equitable's voting
shares.
2. State banking data are as of June 30, 1989.
effect upon the concentration of commercial banking
resources in Maryland.
MNC and Equitable compete directly in the Baltimore, Maryland; Annapolis, Maryland; Sussex
County, Delaware; and Washington, D.C. banking
markets. In the Baltimore market, 3 MNC is the
largest of 38 commercial banking organizations, controlling $4.2 billion in deposits, representing approximately 22.8 percent of total deposits in commercial
banking organizations in the market ("market
deposits"). 4 Equitable is the second largest commercial banking organization in the Baltimore market,
controlling $2.5 billion in deposits, representing approximately 13.6 percent of market deposits. Upon
consummation of this proposal, MNC would control
$6.7 billion in deposits, representing approximately
36.4 percent of market deposits. The Baltimore banking market is considered moderately concentrated,
with the four largest commercial banking organizations controlling 61.5 percent of the market deposits.
The Herfindahl-Hirschman Index ( " H H I " ) for the
market is 1210 and would increase by 620 points to
1830 upon consummation of the proposal. 5
Although consummation of the proposal would
eliminate some competition in the Baltimore banking
market, thirty-seven commercial banking organizations would continue to operate in the market after
consummation of this proposal. In addition, the
Board has considered the presence of thrift institutions in the Baltimore banking market in its analysis
of this proposal. 6 Thrift institutions control approximately 31.1 percent of the combined deposits of
banks and thrift institutions in the market and exert a
considerable competitive influence on the market as
providers of NOW accounts and consumer loans.
3. The Baltimore banking market is defined as the Baltimore,
Maryland, RMA plus the remainder of Harford County, Maryland.
4. Market data are as of June 30, 1988.
5. 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 Department is likely to challenge a merger that
increases the HHI by more than 50 points. The Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by 200 points. The Justice Department has
stated that the higher than normal HHI thresholds for screening bank
mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-depository financial entities.
6. The Board previously has indicated that thrift institutions have
become, or have the potential to become, important competitors of
commercial banks. See National City Corporation, 70 Federal Reserve Bulletin 743 (1984); The Chase Manhattan Corporation,
70
Federal Reserve Bulletin 529 (1984); NCNB Bancorporation,
70
Federal Reserve Bulletin 225 (1984); General Bancshares
Corporation, 69 Federal Reserve Bulletin 802 (1983); First Tennessee Corporation, 69 Federal Reserve Bulletin 298 (1983).
Legal Developments
Based upon the size, number, and market share of
thrift institutions in the Baltimore banking market,
the Board has concluded that thrift institutions exert
a competitive influence that mitigates the anticompetitive effects of this proposal in the Baltimore
market. 7
The Board has also examined the effects of this
proposal in the three other banking markets where
MNC and Equitable compete: Annapolis, Maryland;
Sussex County, Delaware; and Washington, D.C. 8
The proposed acquisition would not substantially
increase the market share of MNC in any market.
Upon consummation of this proposal, the HHI would
increase by less than 200 points in each of these
markets, and each of these banking markets would
remain moderately concentrated. In addition, numerous competitors would remain in each market.
Accordingly, based on the facts of record in this
case, the Board has determined that consummation
of the proposal would not have a significantly adverse effect on existing competition in any relevant
banking market. The Board also has considered the
effects of the proposal on probable future competition in relevant markets. In light of the market
concentration and the number of probable future
entrants into those markets, the Board concludes
that consummation of this proposal would not have a
significantly adverse effect on probable future competition in any relevant market.
MNC and Equitable operate credit card banks that
provide credit card services on a nationwide basis. 9
MNC is the ninth largest provider of bank credit card
loans in the United States, with outstanding receivables of $2.2 billion, representing 2.7 percent of bank
credit card receivables in the United States. Equitable
has outstanding credit card loans of less than
$0.5 billion, representing less than one percent of such
credit card receivables. Upon consummation of the
proposal, MNC would control approximately
$2.7 billion in bank credit card receivables, represent-
7. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, MNC's pro forma
market share would be 29.7 percent and the HHI would increase by
412 points to 1235.
8. The Annapolis, Maryland banking market is approximated by the
Annapolis, Maryland, RMA. The Sussex County, Delaware banking
market is approximated by Sussex County, Delaware, Wicomico
County, Maryland, and the adjoining portions of Caroline, Dorchester
and Worcester Counties in Maryland. The Washington, D.C. banking
market is approximated by the Washington, D.C., RMA. Market data
are as of June 30, 1988.
9. The Board has previously determined that the relevant market for
credit card services is nationwide. First Chicago Corporation, 73
Federal Reserve Bulletin 600 (1987); RepublicBank Corporation, 73
Federal Reserve Bulletin 510 (1987); Chemical New York Corporation, 73 Federal Reserve Bulletin 378 (1987).
91
ing approximately 3.3 percent of such loans nationwide. Consummation of this proposal would not have
a significantly adverse effect on competition in the
market for credit card services. 10
In evaluating these applications, the Board has
considered the financial and managerial resources of
MNC, Equitable, and their bank subsidiaries, and
the effect of the proposed acquisition on the resources and future prospects of these companies.
The Board has stated and continues to believe that
capital adequacy is an important factor in the analysis of bank holding company expansion proposals. 11
In this regard, 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 12 without significant reliance on
intangibles, in particular goodwill. The Board carefully analyzes the effect of expansionary 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. 13
MNC proposes to accomplish the merger through an
exchange of shares. MNC will remain well-capitalized
following consummation of the proposal, with capital
ratios above the minimum levels specified in the
Board's Capital Adequacy Guidelines, and its primary
capital ratio will decrease only slightly. Accordingly,
based on these and all of the other facts of record, the
Board concludes that financial and managerial considerations are consistent with approval of this application. Considerations relating to the convenience and
needs of the communities to be served are also consistent with approval. 14
MNC also has applied, pursuant to section 4(c)(8) of
the BHC Act, to acquire certain nonbanking subsid-
10. Data are as of December 31, 1987.
11. The Bank of New York Company, Inc., 74 Federal
Reserve
Bulletin 257 (1988); Chemical New York Corporation,
73 Federal
Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497
(1986); National City Corporation, 70 Federal Reserve Bulletin lA'i
(1984).
12. Capital Adequacy Guidelines, 50 Federal Register
16,057
(April 24, 1985).
13. Thus, for example, the Board has generally approved proposals
involving a decline in capital only where the applicants have promptly
restored their capital to pre-acquisition levels following consummation of the proposals and have implemented programs of capital
improvement to raise capital significantly above minimum levels. See,
e.g., Citicorp, 72 Federal Reserve Bulletin 726 (1986); Security Pacific
Corporation, 72 Federal Reserve Bulletin 800 (1986).
14. The Board has received a comment on the proposal from the
Maryland Alliance for Responsible Investment ("MARI"), which
supports the proposed merger based on MNC's "good faith efforts to
address its obligations under the MARI-MNB Community Reinvestment Agreement."
92
Federal Reserve Bulletin • February 1990
iaries of Equitable. MNC and Equitable operate subsidiaries that engage in permissible data processing,
mortgage lending and insurance activities. The market
share controlled by each of these subsidiaries is small,
and there are numerous competitors for their services.
Accordingly, consummation of this proposal would
have a de minimis effect on competition in each of
these markets, and the Board concludes that the
proposal would not have any significantly adverse
effect on competition in the provision of these services
in any relevant market. Furthermore, there is no
evidence in the record to indicate that approval of this
proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of
interests, unsound banking practices, or other adverse
effects on the public interest. Accordingly, the Board
has determined that the balance of public interest
factors it must consider under section 4(c)(8) of the
BHC Act is favorable and consistent with approval of
MNC's application to acquire the nonbanking subsidiaries of Equitable.
The Board has also considered MNC's notice of
intent to acquire Equitable Bancorporation Overseas
Finance N.V. under section 4(c)(13) of the BHC Act
and has determined that disapproval of the acquisition
is not warranted.
Based on the foregoing and other facts of record,
the Board has determined that the applications
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 Richmond, acting pursuant to
delegated authority. The determinations as to the
nonbanking activities approved in this case are subject to all of the conditions contained in Regulation
Y, including those in sections 225.4(d) and
225.23(b)(3), 12 C.F.R. 225.4(d) and 225.23(b)(3),
and to the Board's authority to require such notification 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.
By order of the Board of Governors, effective
December 19, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare.
JENNIFER J. JOHNSON
Associate Secretary of the Board
APPENDIX
Nonbanking Subsidiaries to be Acquired
Maryland National Pennsylvania Corporation, Philadelphia, Pennsylvania, and thereby engage in making
loans for its own account and on behalf of others
pursuant to Section 225.25(b)(1); MN Credit Corporation, Baltimore, Maryland, and thereby originate consumer loans and personal property leases for itself and
bank pursuant to Section 225.25(b)(1); MN Services
Corporation, Baltimore, Maryland, and thereby engage in mortgage banking and brokerage business,
leasing of real or personal property, negotiating loans,
and dealing with payments of mortgages, pursuant to
Section 225.25(b)(1); ReCap, Inc., Wilmington, Delaware, and engage in real estate workout activities,
pursuant to Section 225.25(b)(1); American Security
Investment Services, Inc., Washington, D.C., and
thereby engage in providing discount brokerage services pursuant to Section 225.25(b)(15); ASB Capital
Management, Inc., Washington, D.C., and thereby
engage in acting as an investment advisor pursuant to
Section 225.25(b)(19); MNC Credit Corp., Towson,
Maryland, and thereby engage in servicing commercial
loans and leases for affiliated or unaffiliated individuals, partnerships, corporations or other entities, acting
as advisor or broker in leasing of equipment and
personal property, commercial and equipment leasing
transactions; leasing of personal property, originating,
making, acquiring, holding, servicing, and disposing of
secured and unsecured loans, lines of credit, mortgages and charges on real or personal property, engaging in mortgage banking, brokering and servicing and
in selling as agent credit life, disability and accident
and health insurance in connection with extensions of
credit by bank and nonbank subsidiaries of MNC
Financial, Inc., commercial lending, including but not
limited to financing of accounts receivable, inventories, and other types of secured and unsecured loans
to commercial enterprises, pursuant to Sections
225.25(b)(1), (5) and (8); Maryland National Mortgage
Corporation, Baltimore, Maryland, and thereby engage in mortgage banking, brokering and servicing and
acting as advisor in mortgage loan transactions, pursuant to Section 225.25(b)(1); MNC American Corporation, Aurora, Colorado, and thereby engage in industrial banking and servicing loans pursuant to
Sections 225.25(b)(1) and (2); MNC Consumer Discount Company, Coraopolis, Pennsylvania, and
thereby engage in mortgage banking, brokering, and
servicing, including but not limited to second mortgage
financing, and in originating, buying, selling, and otherwise dealing in loans as principal or agent, pursuant
to Section 225.25(b)(1); Mid-Atlantic Life Insurance
Legal Developments
Company, Coraopolis, Pennsylvania, and thereby engage in underwriting, as reinsurer, credit life and credit
accident and health insurance on loans and other
extensions of credit made by subsidiaries of MNC
Financial, Inc. and originated in Maryland, Ohio,
Pennsylvania, New Jersey, Virginia and by American
Industrial Bank, pursuant to Section 225.25(b)(8);
Landmark Financial Services, Inc., Silver Spring,
Maryland, and thereby engage in making, acquiring
and servicing consumer, real estate and sales finance
loans, acting as broker for credit life, health and
accident insurance, reinsuring credit life, health and
accident insurance sold by Landmark Financial Services, Inc., providing automobile insurance premium
financing, providing data processing services related
to such premium financing, pursuant to Sections
225.25(b)(1), (7), 8(ii) and 8(iii); Virginia Federal Savings Bank, Richmond, Virginia, and engage in operating and controlling a savings association, pursuant to
Section 225.25(b)(9); First Service Corporation of Virginia, Richmond, Virginia, and engage in managing
real property acquired in loan workouts, pursuant to
Section 225.25(b)(1); Southern Condominium Service,
Incorporated, Richmond, Virginia, and engage in managing real property acquired in loan workouts, pursuant to Section 225.25(b)(1); Southern Hotel Service,
Incorporated, Richmond, Virginia, and engage in managing real property acquired in workouts of loans of
Virginia Federal Savings Bank, pursuant to Section
225.25(b)(1); Southern Finance Corporation, Richmond, Virginia, and engage in CMO-arbitrage transactions pursuant to Section 225.25(b)(9); E.B. Mortgage Corporation, Towson, Maryland, and thereby
engage in making, acquiring, and servicing mortgage
loans for its own account and the accounts of others
pursuant to section 225.25(b)(1); Equiban Life Insurance Company, Baltimore, Maryland, and thereby
engage in underwriting, as reinsurer, credit life, accident and health insurance and involuntary employment insurance in connection with extensions of credit
by Equitable Bancorporation's subsidiaries, including
Equitable Bank, N.A., Equitable Bank of Delaware,
and E.B. Mortgage Corporation pursuant to
225.25(b)(8); Fayette Insurance Corporation, Baltimore, Maryland, and thereby engage in acting as agent
or broker for the sale of credit life, accident and health
insurance solely in connection with extensions of
credit by Equitable Bancorporation's subsidiaries, including Equitable Bank, N.A., Equitable Bank of
Delaware, and E.B. Mortgage Corporation pursuant to
section 225.25(b)(8); and Internet, Inc., Reston, Virginia, and thereby engage in providing data processing
switching services for automatic teller machine and
point of sale networks. Internet, Inc. also provides and
maintains data processing software to banks and other
93
financial institutions for the operation of this hardware, and maintain ATM and POS data bases for some
banks and financial institutions pursuant to section
225.25(b)(7) of the Board's Regulation Y.
Provident Bancorp, Inc.
Cincinnati, Ohio
Order Approving the Merger of Bank Holding
Companies
Provident Bancorp, Inc., Cincinnati, Ohio ("Provident"), has applied for the Board's approval under
section 3 of the Bank Holding Company Act (the
"Act") (12 U.S.C. § 1842) to merge with Northern
Kentucky Trustcorp, Alexandria, Kentucky ("NKT"),
and thereby acquire 100 percent of the voting shares of
NKT's subsidiary bank, Northern Kentucky Bank and
Trust Company, Alexandria, Kentucky ("Kentucky
Bank"). Provident has also applied under section
4(c)(8) of the Act to acquire Northern Kentucky Financial Corporation, Florence, Kentucky ("Finance Company"), a nonbanking subsidiary of NKT which is
engaged in consumer finance activities pursuant to
section 225.25(b)(1) of the Board's Regulation Y
(12 C.F.R. 225.25(b)(1)).
Notice of the applications, affording an opportunity
for interested parties to submit comments, has been
duly published (54 Federal Register 24,593 (1989)).
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) of the Act.
Section 3(d) of the Act, the Douglas Amendment,
prohibits the Board from approving an application by a
bank holding company to acquire control of any bank
located outside of the holding company's home state, 1
unless such acquisition is "specifically authorized by
the statute laws of the State in which [the] bank is
located, by language to that effect and not merely by
implication." 12 U.S.C. § 1842(d). The Board previously has concluded that the laws of Kentucky expressly authorize the acquisition of Kentucky banks
by Ohio bank holding companies, such as Provident. 2
Accordingly, the Board's approval of these applications is not precluded by the Douglas Amendment.
The Board's approval, however, is subject to Provident's obtaining approval of the merger and acquisi-
1. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
2. National City Corporation,
73 Federal Reserve Bulletin 581
(1987). (See Ky. Rev. State. Ann. § 287.900 (Michie/Bobbs-Merrill
1986)).
94
Federal Reserve Bulletin • February 1990
tion from the Kentucky Commissioner of Banking and
Securities, as required by Kentucky law.
Provident, a one-bank holding company, is the 11th
largest commercial banking organization in Ohio, controlling deposits of approximately $1.6 billion, representing approximately 1.9 percent of deposits in commercial banks in the state. 3 NKT is the 121st largest
commercial banking organization in Kentucky, controlling deposits of approximately $51.1 million, representing less than one percent of deposits in commercial banks in the state. Consummation of this proposal
would not have a significant adverse effect on the
concentration of banking resources in Kentucky.
Provident and NKT compete in the Cincinnati banking market. 4 Provident is the fourth largest commercial
banking organization in the market, controlling approximately $1.2 billion in deposits, representing approximately 10.5 percent of the total deposits in commercial banking organizations in the market. NKT is
the 16th largest commercial banking organization in
the market, controlling approximately $46.5 million in
deposits, representing less than one percent of the
total deposits in commercial banking organizations in
the market. Upon consummation of this transaction,
Provident would remain the fourth largest commercial
banking organization in the market, controlling approximately $1.25 billion in deposits, representing
approximately 10.9 percent of the total deposits in
commercial banking organizations in the market.
While the merger of NKT into Provident would eliminate one competitor from the market, it would produce only a minimal increase in the concentration of
market deposits. The Herfindahl-Hirschman Index
( " H H I " ) would increase from 1458 to 1467.5 On the
basis of the foregoing and other facts of record, the
Board concludes that consummation of this proposal
would not have a substantial adverse effect on competition in the Cincinnati banking market.
The financial and managerial resources and future
prospects of Provident, NKT, and their respective
subsidiaries are consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the record of Provident's subsidiary bank,
Provident Bank, Cincinnati, Ohio ("Bank"), under the
Community Reinvestment Act ("CRA"). The CRA
3. State banking data are as of June 30, 1989; market data are as of
June 30, 1988.
4. The Cincinnati banking market is approximated by Hamilton
County, Clermont County, and portions of Butler and Warren Counties in Ohio; Dearborn County, Indiana; and Boone County, Kenton
County, Campbell County, Grant County and Pendleton County,
Kentucky.
5. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (1984), this market is considered moderately concentrated.
requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate,
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess an institution's record of meeting the credit needs
of its entire community, including low- and moderateincome neighborhoods, consistent with the safe and
sound operation of the institution," and to "take this
record into account in its evaluation of bank holding
company applications." 6
The Board has carefully reviewed the CRA performance record of Bank 7 in light of the CRA, the Board's
regulations, and the jointly issued "Statement of the
Federal Financial Supervisory Agencies Regarding the
Community Reinvestment Act" ("CRA Joint
Statement"). 8 The CRA Joint Statement provides guidance regarding the types of policies and procedures that
the supervisory agencies believe financial institutions
should have in place in order to fulfill their responsibilities under the CRA on an ongoing basis, and the
procedures that the supervisory agencies will use during the application process to review an institution's
CRA compliance and performance.
Initially, the Board notes that Bank has received
satisfactory ratings from its primary regulator in the
most recent examination of its CRA performance. In
addition, Provident has put into place the types of
programs outlined in the CRA Joint Statement as
essential to an effective CRA program. Provident has
established a coordinated procedure to enable it to
ascertain community credit needs and to market its
financial services to all segments of the community.
Bank's Products Committee—comprised of members
6. 12 U.S.C. § 2903.
7. In this regard, the Board notes that comments were filed by the
Cincinnati Association of Real Estate Brokers ("CAREB") alleging
that Bank has discriminated against blacks in its mortgage lending,
business relationships, and hiring practices. Subsequently, the Black
Taxpayers Association, the Black Community Forum, and the Coalition of Neighborhoods, all of Cincinnati, Ohio, forwarded separate
correspondence in support of CAREB's allegations. All of these
comments were received well after the expiration of the public
comment period.
The Board's Rules of Procedure provide that "a commenter who
fails to comment on an application within the specified comment
period (or any extension) may be precluded from participating in the
consideration of the application." See 12 C.F.R. 262.25(b)(1),
262.25(b)(2); see also "Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act," (54
Federal Register 13,742,13,746-7 (1989)). In any event, the Board has
carefully reviewed the CRA performance record of Provident and
Bank, including its record of lending in low- and moderate-income
neighborhoods and in minority neighborhoods, and, as discussed
above, has determined that the record does not indicate that Bank
engages in racially discriminatory lending practices, or that the CRA
performance record of Bank warrants denial of this application.
8. 54 Federal Register 13,742 (1989).
Legal Developments
of Bank's loan, finance, legal, community relations,
and marketing divisions—meets quarterly and provides the vehicle through which decisions are made
concerning community credit needs. The CRA Committee meets monthly to review current CRA-related
topics. Recommendations are made by the CRA Committee to the Products Committee regarding meeting
agenda subjects, statistical reports, and internal CRA
activities. Bank has authorized the Products Committee to approve any new products or product modifications in furtherance of Bank's CRA performance.
Bank has sought minority mortgage loan applicants
by means of a direct marketing campaign. Loan originators make calls on minority realtors and to realtors
in low- and moderate-income areas. A listing of all
loan originator calls conducted is compiled by the
Bank's Finance Department so that a geographical file
by census tract can be maintained by Bank. 9
In addition, Provident has recently implemented various measures to improve Bank's CRA performance,
particularly in areas where some deficiencies had been
noted in past CRA examinations. 10 In particular, Provident has solicited product ideas from and attempted to
generate business with low- and moderate-income individuals through a direct marketing campaign and by
holding informal meetings between Bank officials and
residents in low- and moderate-income neighborhoods.
In an effort to further improve its geographic loan
distribution and to attract minority customers, Provident is utilizing three minority-owned publications and
one minority-owned radio station in the Cincinnati area
to advertise Bank's recently-approved status as an
underwriter of FHA/VA mortgage loans. Provident also
has committed to establish a $2.5 million warehouse
pool to fund special minority and low-income loans and
loan programs administered by the City of Cincinnati.
Finally, Bank has acted to improve its efforts to monitor and evaluate its CRA performance, consistent with
the CRA Joint Statement, by completing a "CRA
Self-Audit" in May 1989.
For the foregoing reasons, and based upon the
overall CRA record of Bank, the compliance of Bank's
CRA statement with applicable regulations, and other
9. In contrast to Protestants' claims, available evidence indicates
that during the period August, 1988 to June, 1989, Bank's rate of
denial of minority mortgage loan applications decreased by almost 20
percent while the proportion of such applications to the total number
of mortgage loan applications increased from 3 percent to 7 percent.
When compared to the Metropolitan Statistical Area ("MSA") minority population percentage (13.5%), Bank has improved its minority
application pool (10%) to more closely reflect the composition of the
MSA. Furthermore, denied minority applicants are subject to two
credit reviews by Bank.
10. In this regard, the Board notes that the most recent CRA
examination report stated that there was no evidence of discriminatory or illegal credit practices on the part of Bank.
95
facts of record, the Board concludes that convenience
and needs considerations, including the record of
performance under the CRA of Bank, are consistent
with approval of these applications.
Provident has also applied to acquire 100 percent of
the voting shares of Finance Company. Finance Company makes, acquires, and services loans—for its own
account or for the account of others—of the type that
would be made by a consumer or commercial finance
or factoring company. The Board previously has determined that such activities are permissible for bank
holding companies under section 225.25(b)(1) of the
Board's Regulation Y. (12 C.F.R. 225.25(b)(1)).
In light of the facts of record, the Board concludes
that Provident's acquisition of Finance Company
would not significantly affect competition in any relevant market. Furthermore, there is no evidence in the
record to indicate that approval of this proposal would
result in undue concentration of resources, unfair
competition, conflicts of interest, unsound banking
practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the
balance of the public interest factors it must consider
under section 4(c)(8) of the Act is favorable and
consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The bank holding company
merger shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
and neither the bank holding company merger nor the
nonbanking acquisition shall occur later than three
months after the effective date of this Order, unless the
latter period is extended for good cause by the Board
or by the Federal Reserve Bank of Cleveland, acting
pursuant to delegated authority. The determination
with respect to Bank's acquisition of Finance Company is subject to all of the conditions set forth in
Regulation Y, including those in sections 225.4(b) and
225.23(b), and to the Board's authority to require
modification or termination of the activities of a holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the Act and the Board's regulations and orders issued thereunder, or to prevent
evasion thereof.
By order of the Board of Governors, effective
December 13, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, and Kelley. Absent and not voting: Governors Angell and LaWare.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
96
Federal Reserve Bulletin • February 1990
Orders Issued Under Financial Institution
Reform, Recovery and Enforcement Act
Central Bank
Hollidaysburg, Pennsylvania
Order Approving Acquisition of Assets and
Assumption of Liabilities of a Savings Association,
the Establishment of Branches, and Additional
Investment in Bank Premises
Central Bank, Hollidaysburg, Pennsylvania ("Central"), a state member bank, has applied for the
Board's approval under section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. § 1828(c)) (the
"Bank Merger Act") to purchase certain assets from
and assume certain liabilities of two branches of Landmark Savings Association, Pittsburgh, Pennsylvania
("Landmark"). Central has also applied to establish
branches at the locations of these offices pursuant to
section 9 of the Federal Reserve Act (12 U.S.C.
§ 321) and for permission to make an additional investment in bank premises pursuant to section 24A of the
Federal Reserve Act (12 U.S.C. § 371d).
Notice of the proposal, affording an opportunity for
interested persons to submit comments, has been
given in accordance with the Bank Merger Act and the
Board's Rules of Procedure (12 C.F.R. 262.3(b)). As
required by the Bank Merger Act, reports on the
competitive effects of the merger were requested from
the United States Attorney General, the Office of the
Comptroller of the Currency, and the Federal Deposit
Insurance Corporation. The time for filing comments
has expired, and the Board has considered the applications and all the comments received in light of the
factors set forth in the Bank Merger Act (12 U.S.C.
§ 1828(c)(5)).
As part of this transaction, Central, a Bank Insurance Fund ("BIF") member, has proposed to assume
certain deposit liabilities of Landmark, a Savings
Association Insurance Fund ("SAIF") member. Assumption of such deposit liabilities is a "conversion
transaction" governed by the terms of section
5(d)(2)(C)(i) of the Federal Deposit Insurance Act
("FDI Act"), 12 U.S.C. § 1815(d)(2)(C)(i). Section
206 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 ("FIRREA" or "the
Act") 1 amended section 5 of the FDI Act to provide,
as a general matter, that until August 9, 1994, no
insured depository institution may participate in a
transaction in which deposits insured by one insurance
fund become the obligation of a depository institution
1. Pub. L. No. 101-73, § 206(a)(7), 103 Stat. 183, 197 (1989).
insured by the other deposit insurance fund. Thus,
with certain limited exceptions, FIRREA prevents a
bank that is a BIF member from acquiring SAIF
insured deposits for the next five years. FIRREA
provides an exception from this five year moratorium
for the transfer of deposit liabilities between a BIF
member and a SAIF member where such transfer is
deemed to affect an "insubstantial portion, as determined by the [FDIC], of the total deposits of each
insured depository institution participating in the conversion transaction." (12 U.S.C. § 1815(d)(2)(C)(i)).
The Act defines an "insubstantial portion" of the
total deposits of an insured depository institution to be
no more than 35 percent of the total deposits of each
institution. 2 This quantitative limitation applies to both
the acquiring institution and the selling institution. In
addition to applying to each individual transaction, the
35 percent limit applies to the aggregate of all transactions involving the institution during the five year
moratorium period.
In the proposed transaction, the deposit liabilities
($17.0 million)3 to be assumed by Central, a BIF
member, represent approximately nine percent of
Central's total deposits and less than two percent of
the total deposits of Landmark, a SAIF member. 4 This
is the first deposit transfer subject to FIRREA by
either institution. Accordingly, this proposal is a permissible conversion transaction under FIRREA.
FIRREA requires that all conversion events be approved by the Federal Deposit Insurance Corporation
("FDIC"). 5 Central has applied for FDIC approval of
this transaction under FIRREA, and the Board's action in this case is conditioned on Central obtaining the
necessary FDIC approval.
Central is the 58th largest commercial banking organization in Pennsylvania, with total deposits of
$173.8 million, which represents less than one percent
of total deposits in commercial banking organizations
in the state. The Landmark offices Central proposes to
acquire hold total deposits of $18.8 million, representing less than one percent of total deposits in commercial banks and thrift institutions in the state. Upon
consummation of this proposal, Central would become
2. The 35 percent figure is measured against the lesser of: (i) total
deposits as of May 1, 1989, plus accrued interest until the date of
transfer of the deposits in connection with the transaction; or (ii) total
deposits as of the date the deposits are transferred. (FIRREA, Pub. L.
No. 101-73, § 206(a)(7) to be codified at 12 U.S.C. § 1815(d)(2)(C)(i)).
3. Central does not propose to assume all of the $18.8 million in
deposits currently held in these branches.
4. As of May 1, 1989, Central controlled $180.1 million in deposits,
and Landmark controlled $1.2 billion in deposits.
5. Prior approval of the FDIC is required for any conversion
transaction, including transactions affecting an insubstantial portion of
the total deposits of each depository institution. See FIRREA, Section
206(a)(7)), Pub. L. N o . 101-73, 103 Stat. 183, 197 (1989) to be codified
at 12 U.S.C. §§ 1815 (d)(2)(a)(i) and (C)(i).
Legal Developments
the 52nd largest commercial banking organization in
the state, still controlling less than one percent of total
deposits in commercial banking organizations in the
state. 6
Central and Landmark do not compete directly in
the banking market where the two thrift branches to be
acquired are located. In light of the facts of record,
consummation of this proposal would not have a
significant adverse effect on competition in any relevant market.
In evaluating this application, the Board has carefully considered the financial resources of Central and
the effect on those resources on the proposed acquisition. In that regard, the primary capital and tangible
primary capital ratios of Central Bank will decline
somewhat as a result of the proposed transaction.
Central has committed to restore its tangible primary
capital ratio to nearly the preacquisition level within
twelve months of consummation of the proposed
transaction and to at least preacquisition levels within
eighteen months. Based on these considerations, the
Board concludes that the financial resources of Central
are consistent with approval of the proposal. Managerial and convenience and needs considerations, as well
as future earnings prospects, also are consistent with
approval.
Central has also applied under section 9 of the
Federal Reserve Act (12 U.S.C. § 321 et seq.), to
establish new branches at the sites of both of the
Landmark branches that are the subject of this proposal. The Board has considered the factors it is
required to consider when approving applications for
establishing branches pursuant to section 9 of the
Federal Reserve Act (12 U.S.C. § 322) and finds
those factors to be consistent with approval.
Central also requests permission under section 24A
of the Federal Reserve Act to make an additional
investment in bank premises in connection with this
proposal. The additional investment will be used to
purchase leasehold improvements of the acquired
branches. The Board concludes that Central's additional investment in bank premises will support Central's acquisition of the Landmark branches, and is
consistent with approval.
On the basis of the record, the applications are
approved for the reasons summarized above, subject
to the condition that Central obtain the approval of the
FDIC for the conversion transaction portion of this
proposal. 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
6. State and market deposit data are as of June 30, 1989.
97
extended for good cause by the Board or by the
Federal Reserve Bank of Philadelphia, pursuant to
delegated authority.
By order of the Board of Governors, effective
December 6, 1989.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Kelley, and LaWare.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
December 15, 1989
Mr. Peter Mortensen
Chairman of the Board and Chief Executive Officer
F.N.B. Corporation
Hermitage Square
3320 East State Street
Hermitage, Pennsylvania 16148
Dear Mr. Mortensen:
F.N.B.
Corporation,
Hermitage,
Pennsylvania
("F.N.B."), proposes that its bank subsidiary, Reeves
Bank, Beaver Falls, Pennsylvania, purchase the assets
and assume the liabilities of Interim Liberty Federal
Savings and Loan, Beaver Falls, Pennsylvania, its
savings association subsidiary, ("Interim Liberty").
F.N.B. has requested Board approval of this transaction pursuant to section 5(d)(3) of the Federal Deposit
Insurance Act ("FDI Act") as amended by the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (Pub. L. No. 101-73, § 206, 103 Stat. 183,
199 (1989)). Interim Liberty has been established to
acquire certain assets and assume deposit liabilities of
Liberty Bell Savings Association, Beaver Falls, Pennsylvania ("Liberty Bell Savings").
The record in this case shows that:
(1) The aggregate amount of the total assets of all
depository institution subsidiaries of F.N.B. is $1.0
billion, an amount which is not less than 200 percent
of the total assets of Interim Liberty, which currently has $79.3 million in total assets;
(2) F.N.B. and all of its bank subsidiaries currently
meet all applicable capital standards and, upon
consummation of the proposed transactions, will
continue to meet all applicable capital standards;
(3) The transaction is not in substance the acquisition of a Bank Insurance Fund member bank by a
Savings Association Insurance Fund member;
(4) Liberty Bell Savings, the predecessor to Interim
Liberty, had tangible capital of less than 4 percent
during the quarter preceding its acquisition by
F.N.B.;
98
Federal Reserve Bulletin • February 1990
(5) The transaction, which involves the purchase of
assets and assumption of liabilities of Interim Liberty, a savings association located in Pennsylvania,
by a bank subsidiary of F.N.B., a bank holding
company whose banking subsidiaries' operations
are principally conducted in Pennsylvania, would
comply with the requirements of section 3(d) of the
Bank Holding Company Act if Interim Liberty were
a state bank which F.N.B. was applying to acquire.
Based on the foregoing and all of the other facts of
record, the Staff Director of the Division of Banking
Supervision and Regulation and the General Counsel
of the Board, acting pursuant to authority delegated by
the Board of Governors, hereby approve your request
to engage in the proposed transaction under section
5(d)(3) of the FDI Act. This approval is subject to
F.N.B. obtaining the required approval of the appropriate Federal banking agency for the proposed merger
under the Bank Merger Act.
Very truly yours,
Jennifer J. Johnson
Associate Secretary of the Board
cc: Federal Reserve Bank of Cleveland
October 13, 1989
Timothy F. Demers, Esq.
Stevens & Less
607 Washington Street
Reading, Pennsylvania 19601
$9.4 billion, an amount which is not less than 200
percent of the total assets of Meridian Savings,
which currently has $2.2 billion in total assets;
(2) Meridian and all of its bank subsidiaries currently meet all applicable capital standards and,
upon consummation of the proposed transactions,
will continue to meet all applicable capital standards;
(3) The transaction is not in substance the acquisition of a Bank Insurance Fund member bank by a
Savings Association Insurance Fund member;
(4) Hill Savings, the predecessor to Meridian Savings,
had tangible capital of less than 4 percent during the
quarter preceding its acquisition by Meridian;
(5) The transaction, which involves the purchase of
assets and assumption of liabilities of Meridian
Savings, a savings association located in Pennsylvania by a bank subsidiary of Meridian, a bank holding
company whose banking subsidiaries' operations
are principally conducted in Pennsylvania, would
comply with the requirements of section 3(d) of the
Bank Holding Company Act if Meridian Savings
were a state bank which Meridian was applying to
acquire.
Based on the foregoing and all of the other facts of
record, the Staff Director of the Division of Banking
Supervision and Regulation and the General Counsel
of the Board, acting pursuant to authority delegated by
the Board of Governors, hereby approve your request
to engage in the proposed transaction under section
5(d)(3) of the FDI Act. This approval is subject to
Meridian obtaining the required approval of the appropriate Federal banking agency for the proposed merger
under the Bank Merger Act.
Dear Mr. Demers:
Meridian Bancorp, Inc., Reading, Pennsylvania ("Meridian"), proposes that its bank subsidiary, Meridian
Bank, Reading, Pennsylvania, purchase the assets and
assume the liabilities of Meridian Financial Savings
Association, Red Hill, Pennsylvania ("Meridian Savings"), its savings association subsidiary. Meridian
has requested Board approval of this transaction pursuant to section 5(d)(3) of the Federal Deposit Insurance Act ("FDI Act") as amended by the Financial
Institutions Reform, Recovery and Enforcement Act
of 1989 (Pub. L. No. 101-73, § 206, 103 Stat. 183, 199
(1989)). Meridian Savings has been established to
acquire certain assets and assume deposit liabilities of
Hill Financial Savings Association, Red Hill, Pennsylvania ("Hill Savings").
The record in this case shows that:
(1) The aggregate amount of the total assets of all
depository institution subsidiaries of Meridian is
Very truly yours,
William W. Wiles
Secretary of the Board
cc: Federal Reserve Bank of Philadelphia
October 13, 1989
Paul J. Polking, Esq.
Executive Vice President and General Counsel
NCNB Corporation
One NCNB Plaza
Charlotte, North Carolina 28255
Dear Mr. Polking:
NCNB Corporation, Charlotte, North Carolina
("NCNB"), proposes that its bank subsidiary, NCNB
National Bank of Florida, Tampa, Florida ("NCNB
Legal Developments
Bank"), purchase the assets and assume the liabilities of
NCNB Florida Federal Savings Bank, Tampa, Florida ("NCNB Savings"), its savings association subsidiary. NCNB has requested Board approval of this
transaction pursuant to section 5(d)(3) of the Federal
Deposit Insurance Act ("FDI Act") as amended by
the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (Pub. L. No. 101-73, § 206,
103 Stat. 183, 199 (1989)). NCNB Savings has been
established to acquire certain assets and assume
deposit liabilities of Freedom Federal Savings and
Loan Association, Tampa, Florida ("Freedom").
The record in this case shows that:
(1) The aggregate amount of the total assets of
all depository institution subsidiaries of NCNB is
$58 billion, an amount which is not less than 200
percent of the total assets of NCNB Savings,
which currently has $570 million in total assets;
(2) NCNB and all of its bank subsidiaries currently
meet all applicable capital standards and, upon
consummation of the proposed transactions, will
continue to meet all applicable capital standards;
(3) The transaction is not in substance the acquisition of a Bank Insurance Fund member bank by a
Savings Association Insurance Fund member;
(4) Freedom, the predecessor to NCNB Savings,
had tangible capital of less than 4 percent during the
quarter preceding its acquisition by NCNB.
(5) The transaction, which involves the purchase of
assets and assumption of liabilities of NCNB Savings, a savings association located in Florida, by a
bank subsidiary of NCNB also located in Florida,
would comply with the requirements of section 3(d)
of the Bank Holding Company Act as if NCNB
Savings were a state bank which NCNB was applying to acquire.
Based on the foregoing and all of the other facts of
record, the Staff Director of the Division of Banking
Supervision and Regulation and the General Counsel
of the Board, acting pursuant to authority delegated by
the Board of Governors, hereby approve your request
to engage in the proposed transaction under section
5(d)(3) of the FDI Act. This approval is subject to
NCNB obtaining the required approval of the appropriate Federal banking agency for the proposed merger
under the Bank Merger Act.
Very truly yours,
William W. Wiles
Secretary of the Board
cc: Federal Reserve Bank of Richmond
99
December 26, 1989
Thomas R. Woolsey
Senior Vice President, Senior Counsel
and Corporate Secretary
Southeast Banking Corporation
One Southeast Financial Center
Miami, Florida 33131
Dear Mr. Woolsey:
Southeast Banking Corporation, Miami, Florida
("Southeast"), proposes that its savings association
subsidiary, Southeast Bank for Savings, A Federal
Savings Bank, Jacksonville, Florida ("Southeast Savings"), merge into its bank subsidiary, Southeast
Bank, N.A., Miami, Florida ("Southeast Bank").
Southeast has requested Board approval of this transaction pursuant to section 5(d)(3) of the Federal Deposit Insurance Act ("FDI Act") as amended by the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Pub. L. No. 101-73, § 206, 103
Stat. 183, 199 (1989)). Southeast Savings is the successor to two failed savings associations. Southeast has
operated Southeast Savings as a savings association
since receiving Board approval to acquire the institution under section 4(c)(8) of the Bank Holding Company Act. 12 U.S.C. § 1843(c)(8). See Southeast
Banking Corporation, 75 Federal Reserve Bulletin 92
(1989).
The record in this case shows that:
(1) The aggregate amount of the total assets of all
depository institution subsidiaries of Southeast is
$15.5 billion, an amount which is not less than 200
percent of the total assets of Southeast Savings,
which currently has $1.3 billion in total assets;
(2) Southeast and all of its bank subsidiaries currently meet all applicable capital standards and,
upon consummation of the proposed transaction,
will continue to meet all applicable capital standards;
(3) The transaction is not in substance the acquisition of a Bank Insurance Fund member bank by a
Savings Association Insurance Fund member;
(4) The predecessor to Southeast Savings had tangible capital of less than 4 percent during the quarter
preceding their acquisition by Southeast;
(5) The transaction involves the merger of a savings association located in Florida into a bank
subsidiary of Southeast that is also located in
Florida. Southeast is a bank holding company
whose banking subsidiaries' operations are principally conducted in Florida. Accordingly, the transaction would comply with the requirements of
section 3(d) of the Bank Holding Company Act if
100 Federal Reserve Bulletin • February 1990
Southeast Savings were a state bank which Southeast was applying to acquire.
Based on the foregoing and all of the other facts of
record, the General Counsel of the Board and the Staff
Director of the Division of Banking Supervision and
Regulation, acting pursuant to authority delegated by
the Board of Governors, hereby approve your request
to engage in the proposed transaction under section
5(d)(3) of the FDI Act. This approval is subject to
APPLICATIONS
APPROVED
UNDER BANK HOLDING
Southeast obtaining the required approval of the appropriate Federal banking agency for the proposed
merger under the Bank Merger Act.
Very truly yours,
William W. Wiles
Secretary of the Board
cc: Federal Reserve Bank of Atlanta
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.
Applicant(s)
Barclays Bank PLC,
London, England
Barclays PLC,
London, England
Bay banks, Inc.,
Boston, Massachusetts
Chemical Banking Corporation,
New York, New York
Manufacturers Hanover Corporation,
New York, New York
National Westminster Bank, PLC,
London, England
Natwest Holdings, Inc.,
New York, New York
Northeast Bancorp, Inc.,
New Haven, Connecticut
The Bank of New York Company, Inc.,
New York, New York
The Chase Manhattan Corporation,
New York, New York
The Hong Kong and Shanghai Banking
Corporation Limited,
Hong Kong, B.C.C.
Kellett NV,
Curacao, Netherlands Antilles
HSBC Holdings BV,
Amsterdam, the Netherlands
Marine Midland Banks, Inc.,
Buffalo, New York
Huntington Bancshares Incorporated,
Columbus, Ohio
Bank(s)
^^ate^
Key Services Corporation,
Albany, New York
December 28, 1989
Farragut Mortgage Co.,
Waltham, Massachusetts
December 6, 1989
Legal Developments
101
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
ABN-Stichting,
Amsterdam, The Netherlands
Algemene Bank Nederland N.V.,
Amsterdam, The Netherlands
ABN/LaSalle North America,
Inc.,
Chicago, Illinois
LaSalle National Corporation,
Chicago, Illinois
Alliance Bancorporation,
Lisbon, Iowa
Bancommunity Service
Corporation,
St. Peter, Minnesota
Bankers Corp.,
Perth Amboy, New Jersey
Broadway Bancshares of
Delaware, Inc.,
Wilmington, Delaware
Century Financial Corporation,
Coldwater, Michigan
Citizens & Merchants
Corporation,
Douglasville, Georgia
Citizens Corporation,
Eastman, Georgia
Country Bank Shares
Corporation,
Janesville, Wisconsin
Dakota Bankshares, Inc.,
Fargo, North Dakota
DBT Holding Company,
Vidalia, Georgia
East Texas Financial
Corporation,
Kilgore, Texas
Bank(s)
Reserve
Bank
Effective
date
Exchange Bancorp, Inc.,
Chicago, Illinois
Chicago
December 19, 1989
Lisbon Bank and Trust
Company,
Lisbon, Iowa
Security Shares, Inc.,
Mankato, Minnesota
Chicago
December 14, 1989
Minneapolis
December 13, 1989
New York
December 20, 1989
Dallas
December 1, 1989
Chicago
November 29, 1989
Atlanta
December 11, 1989
Atlanta
December 1, 1989
Chicago
December 1, 1989
Minneapolis
December 14, 1989
Atlanta
December 6, 1989
Dallas
November 27, 1989
Bankers Savings,
Perth Amboy, New Jersey
Broadway Air Force National
Bank,
Randolph Air Force Base,
Texas
Broadway National Bank,
San Antonio, Texas
Eisenhower National Bank,
San Antonio, Texas
Century Bank and Trust,
Coldwater, Michigan
Citizens & Merchants State
Bank,
Douglas ville, Georgia
Bank South, Mount Vernon,
Mount Vernon, Georgia
State Bank of Mt. Horeb,
Mt. Horeb, Wisconsin
State Bank of Argyle,
Argyle, Wisconsin
Citizens State Bank of Clinton,
Clinton, Wisconsin
Republic National Bancorp, Inc.,
Phoenix, Arizona
Darby Bank and Trust Company,
Vidalia, Georgia
Citizens Bank,
Kilgore, Texas
102 Federal Reserve Bulletin • February 1990
Section 3—Continued
Applicant
The Estes Park Bank Restated
Employee Stock Ownership
401(k) Plan,
Estes Park, Colorado
First Bank Corp.,
Fort Smith, Arkansas
First Commerce Bancorp, Inc.,
Commerce, Georgia
First Lockney Bancshares, Inc.
Lockney, Texas
First Southern Bancorp, Inc.,
Stanford, Kentucky
First Sterling Bancorp, Inc.,
Sterling, Illinois
Fortune 44 Company,
Boulder, Colorado
Fourth Financial Corporation,
Wichita, Kansas
Fourth Financial Corporation,
Wichita, Kansas
Greater Chicago Financial Corp.
Chicago, Illinois
Hogue Holding Company, Inc.,
Weiner, Arkansas
Home Credit Corporation,
Salt Lake City, Utah
L.B.T. Bancorporation,
West Des Moines, Iowa
Lincoln Financial Corporation,
Fort Wayne, Indiana
Lincoln Holding Company,
Canton, South Dakota
Midland States Bancorp, Inc.,
Effingham, Illinois
Monticello Bankshares, Inc.,
Monticello, Kentucky
Mountain Parks Financial
Corporation,
Minneapolis, Minnesota
Bank(s)
Reserve
Bank
Effective
date
Estes Bank Corporation,
Estes Park, Colorado
Kansas City
December 6, 1989
First National Bank of Fort
Smith,
Fort Smith, Arkansas
Citizens Holding Company,
Lexington, Georgia
Lockney Bancshares, Inc.,
Lockney, Texas
First National Bank in Lockney,
Lockney, Texas
National Bank of Hustonville,
Hustonville, Kentucky
Rock Fallas Bancshares, Inc.,
Rock Fallas, Illinois
Newberry Bancorp, Inc.,
Newberry, Michigan
McPherson Bank and Trust
Company,
McPherson, Kansas
Southwest Financial Corporation,
Garden City, Kansas
Ashland Bancshares, Inc.,
Chicago, Illinois
Bank of Weiner,
Weiner, Arkansas
Home Credit Bank
(In Organization),
Salt Lake City, Utah
Liberty Bank & Trust,
Lake Mills, Iowa
Signal Bancorp,
Monticello, Indiana
Farmers State Bank of Canton,
Canton, South Dakota
Effingham State Bank,
Effingham, Illinois
Bank of Clinton County,
Albany, Kentucky
Bank of Evergreen,
Evergreen, Colorado
St. Louis
December 4, 1989
Atlanta
December 13, 1989
Dallas
December 15, 1989
Cleveland
December 15, 1989
Chicago
December 6, 1989
Minneapolis
December 1, 1989
Kansas City
November 21, 1989
Kansas City
November 21, 1989
Chicago
November 28, 1989
St. Louis
December 5, 1989
San Francisco
December 14, 1989
Chicago
November 24, 1989
Chicago
December 19, 1989
Minneapolis
December 15, 1989
St. Louis
December 8, 1989
St. Louis
November 22, 1989
Kansas City
December 15, 1989
Legal Developments
103
Section 3—Continued
Applicant
Mountain West Banking
Corporation,
Denver, Colorado
NBC Bancorporation,
Inc.,
Newport, Minnesota
Parkway Financial, Inc.,
Overland Park, Kansas
PBM Bancorp., Inc.,
Marion, Illinois
Pioneer Bancorp, Inc.,
Chicago, Illinois
Raymond Bancorp, Inc.,
Raymond, Illinois
Republic Bancshares, Inc.,
Neosho, Missouri
Saban S.A.,
Panama City, Republic of
Panama
Surety Capital Corporation,
Hurst, Texas
Texas Security Bancshares
Corporation,
Dover, Delaware
Trimpe's Inc.,
Lisbon, Iowa
Village Bankshares, Inc.,
Tampa, Florida
Weetamoe Bancorp,
Somerset, Massachusetts
West Central Banque Shares,
Inc.,
Hancock, Minnesota
West Point Bancorp., Inc.,
St. Joseph, Missouri
Bank(s)
Reserve
Bank
Effective
date
NBR Financial, Inc.,
Boulder, Colorado
City wide Bank of Thornton,
Thornton, Colorado
Central Bancorporation,
Inc.,
Newport, Minnesota
Parkway Bank,
Overland Park, Kansas
Rend Lake Bancorp, Inc.,
Marion, Illinois
River Associates Bancorp, Inc.,
River Grove, Illinois
Illini Bancshares, Inc.,
Girard, Illinois
Marionville Bancshares, Inc.,
Neosho, Missouri
Safra National Bank of New
York,
New York, New York
Texas National Bank
of Lufkin,
Lufkin, Texas
Central Bank and Trust,
Fort Worth, Texas
North Fort Worth Bank,
Fort Worth, Texas
Lisbon Bank and
Trust Company,
Lisbon, Iowa
The Village Bank of Florida,
Tampa, Florida
Slade's Ferry Trust Company,
Somerset, Massachusetts
Hancock State Bank,
Hancock, Minnesota
Kansas City
November 28, 1989
Minneapolis
November 29, 1989
Kansas City
November 24, 1989
St. Louis
December 1, 1989
Chicago
December 15, 1989
St. Louis
December 11, 1989
St. Louis
November 24, 1989
New York
December 15, 1989
Dallas
November 30, 1989
Dallas
December 1, 1989
Chicago
December 14, 1989
Atlanta
December 8, 1989
Boston
December 1, 1989
Minneapolis
December 1, 1989
Dakota Bancshares, Inc.,
St. Joseph, Missouri
Kansas City
November 24, 1989
Section 4
Applicant
Donnelly Bancshares, Inc.,
Donnelly, Minnesota
Nonbanking
Activity/Company
Farmers & Merchants Insurance
Agency,
Donnelly, Minnesota
Reserve
Bank
Minneapolis
Effective
date
December 14, 1989
104 Federal Reserve Bulletin • February 1990
Section 4—Continued
Nonbanking
Activity/Company
Applicant
The Fuji Bank, Limited,
Tokyo,Japan
Gold Coast Bancshares, Inc.,
Hypoluxo, Florida
Gulfstream Financial Services,
Inc.,
Hypoluxo, Florida
PKbanken,
Stockholm, Sweden
PNC Financial Corp.,
Pittsburgh, Pennsylvania
BHC Holdings,
Philadelphia, Pennsylvania
Reserve
Bank
Effective
date
Kleinwort Benson Government
Securities Inc.,
Chicago, Illinois
Gold Coast Financial Services,
Inc.,
Hypoluxo, Florida
New York
December 8, 1989
Atlanta
November 28, 1989
Independent Finance, Inc.,
Bellevue, Washington
Lomas Securities USA, Inc.,
Houston, Texas
New York
December 15, 1989
Cleveland
December 15, 1989
Sections 3 and 4
. . .
Nonbanking
Activity/Company
Society Corporation,
Cleveland, Ohio
APPLICATIONS
APPROVED
Trustcorp, Inc.,
Toledo, Ohio
UNDER BANK MERGER
Reserve
Bank
Cleveland
Effective
date
December 1, 1989
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.
Applicant
Landmark Bank of Highland,
Highland, Illinois
Union Bank/Streator,
Streator, Illinois
Bank(s)
Landmark Bank of Alton,
Alton, Illinois
Landmark Bank of Madison
County,
Glen Carbon, Illinois
Union Bank/Triumph,
Triumph, Illinois
Reserve
Bank
Effective
date
St. Louis
December 1, 1989
Chicago
December 15, 1989
Legal Developments
PENDING CASES INVOLVING
GOVERNORS
THE BOARD OF
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Securities Industry Association v. Board of Governors, No. 89-1730 (D.C. Cir., filed November 29,
1989). Petition for review of Board order approving
application under section 4(c)(8) to engage in private
placement and riskless principal activities.
Babcock and Brown Holdings, Inc., et al. v. Board of
Governors, No. 89-70518 (9th Cir., filed November
22, 1989). Petition for review of Board determination that a company would control a proposed
insured bank for purposes of the Bank Holding
Company Act.
Consumers Union of U.S., Inc. v. Board of Governors, No. 89-3008 (D.D.C., filed November 1,
1989). Challenge to various aspects of Regulation Z
implementing the Home Equity Loan Consumer
Protection Act.
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Cir., filed June 21, 1989). Petition for
review of Board order permitting relocation of a
bank holding company's national bank subsidiary
from Alabama to Georgia.
MCorp v. Board of Governors, No. 89-2816 (5th Cir.,
filed May 2, 1989). Appeal of preliminary injunction
against the Board enjoining pending and future
enforcement actions against bank holding company
now in bankruptcy. Awaiting decision.
Independent Insurance Agents of America v. Board of
Governors, No. 89-4030 (2d Cir., filed March 9,
1989). Petition for review of Board order ruling that
the non-banking restrictions of section 4 of the Bank
Holding Company Act apply only to non-bank subsidiaries of bank holding companies. Petition for
review denied November 29, 1989. Petition for
rehearing en banc pending.
105
Securities Industry Association v. Board of Governors, No. 89-1127 (D.C. Cir., filed February 16,
1989). Petition for review of Board order permitting
five bank holding companies to engage to a limited
extent in additional securities underwriting and dealing activities.
American Land Title Assoc. v. Board of Governors,
No. 88-1872 (D.C. Cir., filed December 16, 1988).
Petition for review of Board order ruling that exemption G from the section 4(c)(8) prohibition on
insurance activities, which grandfathers insurance
agency activities by bank holding companies that
conducted insurance agency activities before January 1, 1971, does not limit those grandfathered
activities to the specific ones undertaken at that
time. Awaiting decision.
MCorp v. Board of Governors, No. CA3-88-2693
(N.D. Tex., filed October 10, 1988). Application for
injunction to set aside temporary cease and desist
orders. Stayed pending outcome of MCorp v. Board
of Governors in Fifth Circuit.
White v. Board of Governors, No. CU-S-88-623-RDF
(D. Nev., filed July 29, 1988). Age discrimination
complaint.
Cohen v. Board of Governors, No. 88-1061 (D.N.J.,
filed March 7, 1988). Action seeking disclosure of
documents under the Freedom of Information Act.
Chase Manhattan Corp. v. Board of Governors, No.
87-1333 (D.C. Cir., filed July 20, 1987). Petition to
review order conditionally approving application for
bank holding company to underwrite and deal in
mortgage-related securities to a limited extent.
Stayed by stipulation pending expiration of moratorium or Board reconsideration.
Lewis v. Board of Governors, Nos. 87-3455, 87-3545
(11th Cir., filed June 25, August 3, 1987). Petition for
review of Board orders approving applications of
non-Florida bank holding companies to expand activities of Florida trust company subsidiaries. Matter stayed pending Supreme Court review of Continental Illinois Corp. v. Lewis, 827 F.2d 1517 (11th
Cir. 1987).
A1
Financial and Business Statistics
NOTE. The following tables may have
discontinuities in historical data for some
beginning with the December 1989 issue:
1.33, 1.44, 1.52, 1.57-1.60, 2.10, 2.12, 2.13,
some
series
1.12,
3.10,
CONTENTS
Domestic
COMMERCIAL BANKING
Financial
Statistics
MONEY STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks
POLICY
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 Federal Reserve open market transactions
FEDERAL RESERVE
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
INSTITUTIONS
All Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
WEEKLY REPORTING COMMERCIAL
A19
A20
A21
A22
BANKS
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY
3.11, 3.15-3.20, 3.22-3.25, 3.27, 3.28, and 4.30.
For a more detailed explanation of the changes,
see the announcement on page 16 of the January
1990 Bulletin.
FEDERAL
A28
A29
A30
A30
FINANCE
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • February 1990
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
A36 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
CONSUMER INSTALLMENT
CREDIT
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
Statistics
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
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
MEASURES
A46 Nonfinancial business activity—Selected
measures
A47 Labor force, employment, and unemployment
A48 Output, capacity, and capacity utilization
A49 Industrial production—Indexes and gross value
A51 Housing and construction
A52 Consumer and producer prices
A53 Gross national product and income
A54 Personal income and saving
INTEREST AND EXCHANGE
International
SPECIAL
SUMMARY
STATES
Statistics
STATISTICS
A55 U.S. international transactions—Summary
A56 U.S. foreign trade
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
TABLES
A72 Assets and liabilities of commercial banks,
September 30, 1989
A78 Pro forma balance sheet and income statement
for priced service operations, June 30, 1989
Money Stock and Bank Credit
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Annual rates of change, seasonally adjusted in percent1
1989
1988
1989
Monetary and credit aggregates
Q4
Q2
-.8
-1.5
5.3
4.8
-4.2
-4.4
.0
4.6
2.3
3.6
4.8
5.5
8.9
Oct.
Nov.
Q3
July
Aug.
Sept.'
-8.7
-7.6
-10.2
1.5
.3
.1
8.3
2.9 r
7.2
6.0
24.2
4.r
1.1
2.8
1.5
\.2r
9.6
8.6
9.3
7.5
8.1
6.5
11.0
2.8
-1.1
.4
3.1
1.3
-.4
l.y
3.7
5.0
8.4
-5.6
1.2
2.9
4.7
7.9'
1.5
7.3
4.6
4.9
7.2'
lo.y
11.5'
8.8'
8.7
6.4 r
.3'
i.y
1.9'
4.9
8.1 r
5.8
7.4
.9
3.0
7.1
10.1
7.8'
4.5
7.0
8.3
3.4
8.4
6.0
n.a.
n.a.
4.1
9.3
2.6
10.6
3.5
9.2
9.2'
-4.9
11.7
-.6
9.7
-17.0
8.0
-22.4
7.1'
-7.9'
10.1
-3.1
4.0
18.0
13.0
-3.7
22.5
18.1
-14.2
29.0
17.7
-.2
10.4
1.9
3.3
i.y
3.9
7.3
7.5
-2.1
7.9
3.9
-3.5
5.9'
13.C
6.2'
13.8
5.6
8.2
-2.5
6.6
8.0
-7.7
4.3
1.2
-19.0
14.0
5.9
-6.7
9.8
-9.6
-5.4
9.2
-8.3
-1.8
5.2
-22.5
4.0
-2.9
-29.4
3.5'
-11.7'
-34.4'
7.8
-5.7
-27.1
7.6
9.2
7.7
8.6
6.9
8.2'
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontrgnsaction
10 In M2 5
11 In M3 only 6
Ql
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
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
M l : (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
4.6'
8.0'
-.2'
8.4
"
8.8'
8.0'
11.0
5.9
9.8
7.8
n.a.
n.a.
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
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. 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
officiaJ institutions.
A4
DomesticNonfinancialStatistics • February 1990
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1989
1989
Factors
Sept.
Oct.
Nov.
Oct. 18
Oct. 25
Nov. 1
Nov. 8
Nov. 15
Nov. 22
Nov. 29
261,299
260,634
265,521
261,148
258,069
260,511
262,676
261,218
261,012
264,506
219,475
219,018
457
6,762
6,562
200
215,920
215,920
217,455
216,475
980
6,602
6,525
77
216,270
216,270
212,859
212,859
214,962
214,962
216,751
216,751
214,890
214,890
6,555
6,555
6,542
6,542
6,525
6,525
6,525
6,525
6,525
6,525
217,268
216,872
396
6,536
6,525
11
220,059
216,254
3,805
6,845
6,525
320
636
879
33,546
11,066
8,518
19,391
608
734
36,825
11,064
8,518
19,462
346
1,024
37,093
8,518
19,529
488
898
36,936
11,063
8,518
19,446
376
873
37,420
11,063
8,518
19,467
314
697
38,014
11,063
8,518
19,481
205
1,209
37,988
11,063
8,518
19,508
341
1,197
38,265
11,062
8,518
19,522
202
858
36,148
11,061
8,518
19,536
680
981
35,941
11,060
8,518
19,550
248,937
431
249,190
439
251,807
448
249,802
439
249,244
439
248,779
442
250,130
444
251,338
449
252,158
451
253,641
448
7,679
257
6,111
245
5,008
234
6,154
260
5,389
221
6,436
219
5,361
223
4,757
213
4,449
239
5,093
253
1,846
351
1,866
327
1,944
333
1,815
247
1,817
332
1,721
492
1,984
329
1,880
1,984
293
1,966
457
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
4
Held under repurchase agreements
5
Federal agency obligations
6
Bought outright
7
Held under repurchase agreements
8
Acceptances
9
Loans
10
Float
11
Other Federal Reserve assets
12 Gold stock 2
13 Special drawing rights certificate a c c o u n t . .
14 Treasury currency outstanding
0
6,546
6,546
0
0
0
0
11,062
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
ABSORBING RESERVE F U N D S
15 Currency in circulation
16 Treasury cash holdings 2
Deposits, other than reserve balances, with
Federal Reserve Banks
17
Treasury
18
Foreign
19
Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks
248
7,572
8,091
7,862
7,825
7,654
7,891
8,078
7,716
7,651
7,912
33,201
33,410
33,993
33,634
32,022
33,592
35,216
33,717
32,903
33,866
End-of-month figures
Wednesday figures
1989
1989
Sept.
Oct.
Nov.
Oct. 18
Oct. 25
Nov. 1
Nov. 8
Nov. 15
Nov. 22
Nov. 29
23 Reserve Bank credit
264,137
264,717
267,060
265,872
257,290
263,464
262,938
261,062
263,150
275,731
24
U.S. government securities 1
25
Bought outright
26
Held under repurchase agreements.
27
Federal agency obligations
28
Bought outright
29
Held under repurchase agreements
30
Acceptances
31
Loans
32
Float
33
Other Federal Reserve assets
34 Gold stock 2
35 Special drawing rights certificate a c c o u n t . .
36 Treasury currency outstanding
221,051
221,051
218,176
218,176
223,142
223,142
218,961
218,961
211,871
211,871
217,752
217,752
216,595
216,595
216,088
216,088
6,555
6,555
6,525
6,525
6,525
6,525
6,555
6,555
6,525
6,525
6,525
6,525
6,525
6,525
6,525
6,525
219,406
216,633
2,773
6,599
6,525
74
228,898
216,672
12,226
7,689
6,525
1,164
598
501
35,433
11,065
8,518
19,425
270
1,471
38,275
402
177
1,083
38,558
8,518
19,481
8,518
19,508
1,329
563
36,556
11,062
8,518
19,522
170
890
36,086
11,061
8,518
19,536
1,225
37,736
11,063
8,518
19,446
397
622
37,876
11,063
8,518
19,467
231
707
38,249
8,518
19,494
181
668
36,544
11,060
8,518
19,564
36,898
11,060
8,518
19,550
247,581
440
249,025
444
253,960
445
249,600
438
248,954
442
249,383
442
250,875
449
251,555
452
253,389
447
253,928
448
13,452
326
13,124
252
5,500
307
6,138
217
5,827
214
7,133
226
5,949
190
6,637
277
4,504
244
6,470
185
1,630
318
1,623
292
1,638
311
1,625
277
1,623
810
1,623
392
1,637
228
1,636
301
1,639
232
1,639
949
SUPPLYING RESERVE F U N D S
0
0
0
0
0
0
11,062
0
0
0
0
0
0
2,218
0
0
0
0
0
0
11,062
0
0
0
11,062
0
0
0
0
0
1,022
ABSORBING RESERVE F U N D S
37 Currency in circulation
38 Treasury cash holdings 2
Deposits, other than reserve balances, with
Federal Reserve Banks
39
Treasury
40
Foreign
41
Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks 3
8,776
8,303
8,402
7,612
7,450
7,962
7,615
7,405
7,572
7,855
30,623
30,728
35,639
38,993
31,019
35,366
35,083
31,901
34,238
43,385
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. 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.
Components may not add to totals because of rounding.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions1
Millions of dollars
Monthly averages 9
Reserve classification
Dec.
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 2
Total vault cash 3
Vault"'
Surplus
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks ..
Extended credit at Reserve Banks
Dec.
Dec.
May
37,360
24,077
22,199
1,878
59,560
58,191
1,369
827
38
303
37,673
26,185
24,449
1,736
62,123
61,094
1,029
777
93
483
37,830
27,197
25,909
33,199
27,166
25,712
1,454
58,911
57,881
1,031
1,720
345
1,197
1,288
63,739
62,699
1,040
1,716
130
1,244
July
Sept.
Oct.
33,902
27,851
26,351
1,500
60,254
59,288
966
694
497
106
33,852
27,151
25,735
1,416
59,587
58,681
905
1,490
431
917
Aug.
32,823
28,358
26,735
1,622
59,559
58,674
885
675
490
41
33,556
28,085
26,570
1,515
60,126
59,188
938
693
452
22
33,123
28,900
27,275'
1,625'
60,397
59,378'
1,020
555
330
33,942
28,519
27,048
1,471
60,989
60,044
945
349
134
21
21
Biweekly averages of daily figures for weeks ending
1989
Aug. 23
11
12
n
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 2
Total vault cash
Vault4
Surplus
Total reserves 6
Required reserves
^
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
Sept. 6
Sept. 20
Oct. 4
Oct. 18
Nov. r
Nov. 15r
Nov. 29
Dec. 13
Dec. 27
32,599
28,852
27,212
1,640
59,810
58,859
951
753
489
44
33,053
27,710
26,153
1,557
59,206
58,247
959
538
485
22
34,424
28,095
26,660
1,436
61,083
60,195
888
614
438
21
32,643
28,298
26,695
1,603
59,338
58,343
995'
898
453
25
33,581
29,096
27,531
1,565
61,112
60,186
926
653
342
19
32,778
28,875
27,177
1,698
59,955
58,827
1,128
345
280
23
34,468
27,907
26,552
1,355
61,020
60,139
881
272
147
20
33,394
29,156
27,574
1,582
60,968
59,958
1,009
441
115
23
35,399
27,821
26,509
1,312
61,908
61,149
759
151
87
22
35,140
29,415
27,900
1,516
63,040
62,002
1,037
351
89
19
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
DomesticNonfinancialStatistics • February 1990
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks1
Averages of daily figures, in millions of dollars
1988 and 1989 week ending Monday
Maturity and source
Nov. 28
Dec. 5
Dec. 12
Dec. 19
Dec. 26
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
73,925
11,130
73,746
9,815
68,346
11,332
74,471
9,940
70,886
9,829
69,448
10,114
70,964
9,810
67,427
9,356
30,192'
6,304r
30,73c
5,929^
27,591r
7,749r
28,709
6,545
30,368
7,418
26,454
7,778
24,933
8,730
22,855
7,709
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
12,595
13,485
15,950
11,758
13,810
12,474
14,929
10,352
15,392
10,890
14,634
10,659
13,043
11,003
12,610
27,613
10,962
30,296
10,845
25,402
15,064
30,312
9,790
30,307
9,651
29,321
9,790
27,986
10,860
27,418
9,248
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
35,279
12,805
34,268
12,408
34,582
39,202
13,277
35,912
13,936
39,237
14,108
40,080
14,987
38,015
12,747
1
2
3
4
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.
11,810
8,252
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
12/28/89
Effective
date
Previous
rate
On
12/28/89
Efifective
date
Previous
rate
On
12/28/89
Effective
date
Previous
rate
Effective date
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
6W
7
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
2/24/89
6W
8.90
12/28/89
12/28/89
12/28/89
12/28/89
12/28/89
12/28/89
8.90
12/14/89
12/14/89
12/14/89
12/14/89
12/14/89
12/14/89
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
7
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
6W
2/24/89
2/24/89
2/24/89
2/24/89
2/27/89
2/24/89
7
8.90
6W
12/28/89
12/28/89
12/28/89
12/28/89
12/28/89
12/28/89
12/14/89
12/14/89
12/14/89
12/14/89
12/14/89
12/14/89
8.90
Range of rates for adjustment credit in recent years 4
Efifective date
In effect Dec. 31, 1977.
1978—Jan. 9
20
May 11
12
July
Aug.
Sept.
Oct.
Nov.
3
10
21
22
16
20
1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct.
8
10
1980—Feb. 15
19
May 29
30
June 13
16
Range (or
level)—
All F.R.
Banks
6
6-6W
6W
6W-7
7
F.R.
Bank
of
N.Y.
6
6 Vl
m
1
7
1-lVi. iv*
IV* IV4
73/4
8
8-8 W
sw
8W-9W
9W
73/4
8
8
8W
10
10-10W
low
10W-11
11
11-12
12
10
low
low
11
11
12
12
12-13
13
12-13
12
11-12
11
Vl
9Vi
9 Vi
13
13
13
12
11
11
Effective
F.R.
Bank
of
N.Y.
10
1980-- J u l y 78
79
Sept. 76
Nov. 17
Dec. 5
10-11
12-13
13
5
8
13-14
14
13-14
13
14
14
13
13
1981-—May
—May
Nov.
Dec.
1982--July
-July
Aug.
7
6
4
70 .
73
7
3
16
71
30 . .
Oct. 17
13
Nov. ? ?
76
Dec. 14
15
17
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 W percent above the rate on adjustment
credit. The program was reestablished for 1986 and 1987 but was not renewed for
1988.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
somewhat above rates on market sources of funds ordinarily will be charged, but
Range (or
level)—
All F.R.
Banks
10
11
12
12
11 W-12
11W
11-111/!
11
1W
0
10-10W
10
9W-10
9W
9-9W
9
$1/2-9
8'/2-9
8W
10
11
12
12
11W
1W
1
11
11
1W
0
10
10
9W
9W
9
9
9
m
8W
Efifective date
Range (or
level)—
All F.R.
Banks
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8W-9
9
8W-9
8W
8
9
9
8W
8W
8
1985—May 20
24
7W-8
7W
IVi
1986—Mar.
7
10
Apr. 21
July 11
Aug. 21
22
7-7 W
7
6W-7
6
5W-6
5W
7
7
6W
6
5W
5W
1987—Sept. 4
5W-6
6
6
6
11
6-6W
6W
6W
6W
1989—Feb. 24
27
6W-7
7
7
7
7
7
11
1988—Aug.
9
In effect Dec. 28, 1989.
7W
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 1990
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-$40.4 million....
More than $40.4 million . . .
12/19/89
12/19/89
Nonpersonal time deposits*
By original maturity
Less than 1 Vi years
1 Vi years or more
10/6/83
10/6/83
Eurocurrency
All types
liabilities
1. Reserve requirements in effect on Dec. 31, 1989. Required reserves must be
held in the form of deposits with Federal Reserve Banks or vault cash. Nonmember institutions may maintain reserve balances with a Federal Reserve Bank
indirectly on a pass-through basis with certain approved institutions. For previous
reserve requirements, see earlier editions of the Annual Report or the Federal
Reserve Bulletin. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to NOW accounts and
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 19,
1989 for institutions reporting quarterly and Dec. 26, 1989 for institutions
reporting weekly, the amount was decreased from $41.5 million to $40.4 million.
5. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1989
Type of transaction
1986
1987
1988
Apr.
May
July
June
Sept.
Aug.
Oct.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
22,604
2,502
0
1,000
18,983
6,051
0
9,029
8,223
587
0
2,200
3,077
0
0
0
311
321
0
1,200
0
571
0
1,200
0
5,517
0
2,400
0
934
0
800
0
0
0
0
219
1,633
0
1,400
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
190
0
18,674
-20,180
0
3,659
300
21,504
-20,388
70
2,176
0
23,854
-24,588
0
172
0
1,657
-110
0
0
0
2,863
-3,628
0
0
0
1,828
-1,434
0
0
0
1,749
-1,073
0
0
0
4,200
-4,025
0
0
0
1,832
0
0
852
-2,678
500
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
893
0
-17,058
16,985
10,231
452
-17,975
18,938
5,485
800
-17,720
22,515
1,436
0
-1,532
0
0
75
-2,036
3,328
0
0
-1,828
1,434
0
13
-1,584
787
0
150
-3,321
3,425
0
0
-1,832
0
0
24
-758
2,552
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
236
0
-1,620
2,050
2,441
0
-3,529
950
1,579
175
-5,946
1,797
287
0
-125
110
0
0
258
200
0
0
0
0
0
9
-165
286
0
0
400
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
158
0
0
1,150
1,858
0
0
500
1,398
0
-188
275
284
0
0
0
0
0
-1,086
100
0
0
0
0
0
0
0
0
0
0
0
200
0
0
0
0
24,081
2,502
1,000
37,170
6,803
9,099
18,863
1,562
2,200
5,255
0
0
311
3%
1,200
0
571
1,200
0
5,539
2,400
0
0
219
1,084
800
0
0
1,657
1,900
Matched transactions
25 Gross sales
26 Gross purchases
927,999
927,247
950,923
950,935
1,168,484
1,168,142
77,349
78,259
123,029
113,041
128,139
138,141
123,373
118,221
146,611
147,228
116,502
120,144
111,430
111,893
Repurchase
agreements2
27 Gross purchases
28 Gross sales
170,431
160,268
314,621
324,666
152,613
151,497
22,244
12,547
31,419
41,117
6,203
6,203
4,961
4,961
0
0
9,396
9,396
0
0
29,988
11,234
15,872
15,863
-20,971
8,232
-13,091
-1,267
3,642
-2,875
0
0
398
0
0
276
0
0
587
0
0
125
0
0
0
0
0
0
0
0
45
0
0
0
0
0
54
0
0
30
31,142
30,521
80,353
81,350
57,259
56,471
7,207
3,366
12,732
16,573
1,666
1,666
1,137
1,137
0
0
4,011
4,011
0
35 Net change in federal agency obligations
222
-1,274
198
3,716
-3,841
0
-45
0
-54
-30
36 Total net change in System Open Market
Account
30,212
9,961
16,070
19,579
-24,812
8,032
-13,136
-1,267
3,588
-2,905
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
29 Net change in U.S. government securities
-879
0
0
0
0
-95
126
0
0
0
0
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements2
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
0
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
DomesticNonfinancialStatistics • February 1990
1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1
Millions of dollars
Wednesday
1989
Account
Nov. 1
Nov. 8
End of month
1989
Nov. 15
Nov. 22
Nov. 29
Sept.
Oct.
Nov.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
J
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
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
11,062
8,518
492
11,062
8,518
496
11,062
8,518
493
11,061
8,518
485
11,060
8,518
473
11,065
8,518
480
11,062
8,518
492
11,060
8,518
465
231
0
0
177
0
0
1,330
0
0
169
0
0
1,225
0
0
598
0
0
270
0
0
182
0
0
6,525
0
6,525
0
6,525
0
6,525
74
6,525
1,164
6,555
0
6,525
0
6,525
0
95,713
91,426
30,614
217,752
0
217,752
94,555
91,426
30,614
216,595
0
216,595
94,049
91,226
30,814
216,088
0
216,088
94,438
91,381
30,814
216,633
2,773
219,405
94,477
91,381
30,814
216,672
12,226
228,897
98,487
91,950
30,614
221,051
0
221,051
96,136
91,426
30,614
218,176
0
218,176
100,947
91,381
30,814
223,142
0
223,142
224,508
223,297
223,943
226,174
237,812
228,203
224,971
229,848
6,938
775
6,784
776
6,732
778
7,065
778
6,275
776
6,909
775
10,120
775
6,103
776
28,954
8,520
28,962
8,820
28,982
6,7%
29,075
6,233
29,075
7,047
26,411
8,247
28,953
8,548
29,593
6,175
289,768
288,715
287,303
289,388
301,036
290,607
293,439
292,539
230,836
232,312
232,977
234,785
235,299
229,076
230,467
235,306
36,989
7,133
226
392
36,720
5,949
190
228
33,537
6,637
277
301
35,877
4,504
244
232
45,024
6,470
185
949
32,253
13,452
326
318
32,351
13,124
252
292
37,277
5,500
307
311
44,739
43,087
40,753
40,856
52,628
46,348
46,018
43,395
6,231
2,790
5,701
2,809
6,169
2,628
6,174
2,701
5,253
3,041
6,408
3,080
8,649
2,819
5,436
3,081
284,596
283,909
282,526
284,517
296,221
284,911
287,954
287,217
2,223
2,112
838
2,225
2,112
469
2,227
2,112
439
2,233
2,112
526
2,230
2,112
472
2,199
2,112
1,385
2,223
2,112
1,150
2,229
2,112
980
33 Total liabilities and capital accounts
289,768
288,715
287,303
289,388
301,036
290,607
293,439
292,539
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
233,384
234,715
236,514
237,031
233,024
237,904
235,318
235,096
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22 To depository institutions
U.S. Treasury—General account
23
24
Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred credit items
^
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
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
278,810
47,974
230,836
279,088
46,775
232,312
279,415
46,438
232,977
279,515
44,730
234,785
279,559
44,260
235,299
277,676
48,601
229,076
278,866
48,398
230,467
279,629
44,321
235,306
11,062
8,518
0
211,256
11,062
8,518
0
212,732
11,062
8,518
0
213,397
11,061
8,518
0
215,207
11,060
8,518
0
215,721
11,065
8,518
0
209,493
11,062
8,518
0
210,887
11,060
8,518
0
215,728
42 Total collateral
230,836
232,312
232,977
234,785
235,299
229,076
230,467
235,306
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover. Components may not add to totals because of
rounding.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
All
1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings1
Millions of dollars
Wednesday
1989
Type and maturity groupings
End of month
1989
Nov. 1
Nov. 8
Nov. 15
Nov. 22
Nov. 29
Sept. 29
Oct. 31
Nov. 30
1 Loans—Total
2
Within 15 days
16 days to 90 days
3
4
91 days to 1 year
231
121
109
0
177
70
107
0
1,330
1,293
37
0
169
162
7
0
1,225
1,214
11
0
533
455
78
0
270
193
77
0
182
134
48
0
5 Acceptances—Total
6
Within 15 days
7
16 days to 90 days
8
91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
217,752
11,686
44,711
70,197
51,476
13,175
26,506
216,595
8,151
47,718
69,569
51,476
13,175
26,506
216,088
10,269
40,798
73,053
52,732
12,529
26,706
219,405
13,524
48,086
65,828
52,732
12,529
26,706
228,897
19,836
48,452
68,641
52,732
12,529
26,706
221,051
5,383
54,519
69,961
51,537
13,145
26,506
218,176
8,144
48,677
70,197
51,476
13,175
26,506
223,142
4,468
51,283
74,646
53,509
12,529
26,706
6,525
0
672
1,446
3,180
1,038
189
6,525
0
791
1,327
3,180
1,038
189
6,525
82
709
1,327
3,180
1,038
189
6,600
403
463
1,327
3,180
1,038
189
7,689
1,480
418
1,395
3,159
1,048
189
6,555
191
619
1,339
3,213
1,004
189
6,525
89
672
1,357
3,180
1,038
189
6,525
316
418
1,395
3,159
1,048
189
9 U.S. Treasury securities—Total
10 Within 15 days 2
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
16 Federal agency obligations—Total
17 Within 15 days 2
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
I. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
NOTE: Components may not add to totals due to rounding,
A12
DomesticNonfinancialStatistics • February 1990
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1989
Item
1985
Dec.
1987
Dec.
1986
Dec.
1988
Dec.
Apr.
1 Total reserves3
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 5
June
July
Aug.
Sept.
Oct.
Nov.
58.70
58.75
59.22
59.62
59.57
Seasonally adjusted
ADJUSTED FOR
_
CHANGES IN RESERVE REQUIREMENTS' 1
2
3
4
5
May
48.49
58.14
58.69
47.17
47.67
47.44
219.51
57.31
57.62
56.77
241.45
57.92
58.40
57.66
257.99
60.71
59.46
58.74
58.99 57.17
57.02
60.23 58.88
58.22
59.67
58.69
57.71
275.50 278.75' 278.43'
58.35
56.86 58.00
57.78
58.11
57.44
57.73
279.06 280.01r
58.08
59.07
58.53
58.12
59.09
58.55
57.87
58.60
58.29
280.29 282.04' 282.70'
59.22
59.24
58.62
283.01
Not seasonally adjusted
6 Total reserves3
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 4
Required reserves
Monetary base
49.59
59.46
60.06
48.27
48.77
48.53
222.73
58.64
58.94
58.09
245.25
59.28
59.76
59.03
262.08
48.14
59.56
62.12
46.82
47.32
47.08
223.53
58.73
59.04
58.19
247.71
61.35
61.83
61.09
266.16
62.21
60.01
57.72
58.41
58.95
60.50
57.72
56.00
56.92
58.26
61.74
59.43
57.20
57.84
58.37
61.17 59.23
57.51
56.69
57.99
279.71 278. W 277.59' 280.19' 282.10'
58.30
57.62
57.66
57.41
281.09
58.91
59.14
58.21
58.58
58.24
58.61
57.97
58.12
280.70' 281.37'
59.72
59.37
59.39
58.78
284.13
N O T ADJUSTED FOR
,
CHANGES IN RESERVE REQUIREMENTS"
11 Total reserves3
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 5
1. Latest monthly and biweekly figures are available from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Figures 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 equal 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
63.74
61.29
58.91
59.59
60.25
62.02 59.00
57.19
58.10
59.56
63.27 60.71
58.39
59.01
59.67
62.70 60.51
57.88
58.68
59.29
283.18 281.6C 280.64' 283.28' 285.39'
59.56
58.88
58.93
58.67
284.23
60.13
60.40
59.43
59.84
59.46' 59.86
59.19
59.38
283.78' 284.49'
60.99
60.64
60.66
60.04
287.35
the terms and conditions established for the extended credit program to helpdepository institutions deal with sustained liquidity pressures. Because there isnot
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 actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated with
implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1989
Item
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
Aug.
Sept/
Oct.
Nov.
781.1
3,155.9
4,012.1
4,824.9
9,615.3
787.7'
3,176.5'
4,027. r
4,852.8
9,681.7
790.0
3,198.9
4,047.3
n.a.
n.a.
Seasonally adjusted
1 Ml
2 M2
M3
4 L
5 Debt
Ml components
Currency 3
Travelers checks*
Demand deposits
Other checkable deposits
6
7
8
9
790.3
3,069.6
3,915.4
4,672.2
9,082.2'
777.4
3,136.5
4,009.0
4,812.9'
9,558.9'
196.4
7.1
288.3
260.4
211.8
7.6
288.6
282.3
218.4
7.2
277.5
274.4
219.3
7.2
277.3
277.3
219.7
7.3
280.4
280.3'
220.3
7.5
279.0
283.3
2,085.3
683.7
2,157.6
767.7
2,279.3
845.8
2,359.1
872.4
2,374.8
856.2
2,388.8'
850.6'
2,408.9
848.4
620.5
2,567.4
3,201.7
3,828.5
6,741.5
725.9
2,811.2
3,494.9
4,135.1
7,597.0
752.3
2,909.9
3,677.6
4,336.7
8,316.1
167.8
5.9
267.3
179.5
180.5
6.5
303.2
235.8
1,946.9
634.3
10
11
Nontransactions components
In M27
In M3 only 8
12
13
Savings deposits 9
Commercial Banks
Thrift institutions
125.0
176.6
155.8
215.2
178.5
237.8
192.5
238.8
183.0
219.3
184.2
220.0
185.1
220.7'
187.3
222.1
14
15
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
383.3
499.2
364.6
489.3
385.3
528.8
443.1
582.2
508.1
624.0
509.8
622.5
515.3'
616.4'
517.7
613.5
16
17
Money market mutual funds
General purpose and broker-dealer
Institution-only
176.5
64.5
208.0
84.4
221.1
89.6
239.4
87.6
285.5
100.6
294.8
99.1
301.5
98.7
309.8
102.0
18
19
Large-denomination time deposits"
Commercial Banks
Thrift institutions
285.1
151.5
288.8
150.1
325.4
162.0
364.9
172.9
397.0
172.1
395.8
167.9
397.9
163.1
400.6
159.4
20
21
Debt components
Federal debt
Nonfederal debt
1,585.8
5,155.7
1,805.8
5,791.2
1,957.4
6,358.6
2,113.5
6,968.7'
2,199.9'
7,359.0'
2,220.1
7,395.2
2,238.3
7,443.4
n.a.
n.a.
Not seasonally adjusted
??.
23
24
25
26
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits
31
32
Nontransactions components
M2
M3 only 8
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
Savings deposits 9
Commercial Banks
36 Thrift institutions
633.5
2,576.2
3,213.3
3,841.5
6,730.9
740.4
2,821.1
3,507.4
4,150. l r
7,580.7
766.4
2,918.7
3,688.6
4,350.9
8,297.6
804.4
3,077.3
3,925.2
4,685.6
9,067.5'
777.4'
3,137.5
4,010.6
4,807.7'
9,512.4r
778.5
3,149.3
4,010.2
4,819.7
9,577.0
784.4'
3,172.4'
4,024.5'
4,848.2
9,647.6
791.5
3,196.9
4,052.6
n.a.
n.a.
170.2
5.5
276.9
180.9
183.0
6.0
314.0
237.4
199.3
6.5
298.6
262.0
214.9
6.9
298.8
283.7
219.3
8.1
276.7
273.3
218.7
7.7
275.9
276.2
219.0
7.3
280.3
277.8'
221.2
7.0
281.2
282.0
1,942.7
637.1
2,080.7
686.3
2,152.3
769.9
2,272.9
848.0
2,360.1
873.1
2,370.8
860.8
2,388.0
852.1'
2,405.4
855.7
332.8
180.7
379.6
192.9
358.8
167.5
352.5
150.3
335.7
129.7
338.9
130.2
342.0
131.0
349.8
132.1
123.7
174.8
154.2
212.7
176.6
234.8
190.3
235.6
184.0
221.1
183.9
220.8
185.5
221.9'
186.7
221.2
37
38
Small-denomination time deposits 10
Commercial Banks
Thrift institutions
384.0
499.9
365.3
489.8
386.1
529.1
444.1
582.4
507.6
621.5
510.2
619.7
515.6'
616.9'
519.4
613.9
39
40
Money market mutual funds
General purpose and broker-dealer
Institution-only
176.5
64.5
208.0
84.4
221.1
89.6
239.4
87.6
285.5
100.6
294.8
99.1
301.5
98.7
309.8
102.0
41
42
Large-denomination time deposits 11
Commercial Banks
Thrift institutions
285.4
151.8
289.1
150.7
325.8
163.0
365.6
174.1
397.7
171.3
398.0
168.3
399.5'
164.9
402.0
161.1
43
44
Debt components
Federal debt
Nonfederal debt
1,583.7
5,147.1
1,803.9
5,776.8
1,955.6
6,342.0
2,111.8
6,955.7'
2,179.7''
7,332.8r
2,200.9
7,376.1
2,222.6
7,425.0
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • February 1990
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the 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 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, 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 Eurodollars held by institution-only
money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are 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
A15
1.22 BANK DEBITS AND DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1989
Bank group, or type of customer
1986
1987
1988
Apr.
July
Aug.
Sept.
Seasonally adjusted
DEBITS TO
Demand deposits 3
All insured banks
1
2
Major New York City banks
3
Other banks
4 ATS-NOW accounts 4
5 Savings deposits
June
May
188,346.0
91,397.3
96,948.8
2,182.5
403.5
217,116.2
104,4%.3
112,619.8
2,402.7
526.5
226,888.4
107,547.3
119,341.2
2,757.7
583.0
245,230.1
107,808.9
137,421.3
2,986.4
585.5
266,468.1
120,984.1
145,483.9
3,406.5
647.2
284,129.2
129,166.6
154,962.7
3,696.5
640.0
276,453.7
114,991.8
161,461.9
3,596.3
580.4
292,446.5
121,378.1
171,068.3
3,943.1
650.0
281,432.2
125,206.9
156,225.3
3,601.9
672.3
556.5
2,498.2
321.2
15.6
3.0
612.1
2,670.6
357.0
13.8
3.1
641.2
2,903.5
376.8
14.7
3.1
697.5
3,092.2
433.9
15.7
3.2
767.1
3,342.1
467.5
18.2
3.6
824.0
3,588.5
501.8
19.8
3.6
788.4
3,222.3
512.6
19.1
3.2
841.8
3,402.4
548.8
20.6
3.6
802.2
3,482.2
496.2
18.8
3.7
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
Savings deposits
Not seasonally adjusted
DEBITS TO
Demand deposits
11 All insured banks
12 Major New York City banks.
13 Other banks
14 ATS-NOW accounts 4
15 MMDA 6
16 Savings deposits
188,506.7
91,500.1
97,006.7
2,184.6
1,609.4
404.1
217,125.1
104,518.8
112,606.2
2,404.8
1,954.2
526.8
227,010.7
107,565.0
119,445.7
2,754.7
2,430.1
578.0
238,265.6
105,461.7
132,803.9
3,205.2
2,700.2
649.6
274,861.8
121,507.2
153,354.6
3,325.2
2,910.5
637.9
295,522.8
134,020.7
161,502.1
3,770.8
3,136.0
641.4
268,243.0
117,276.1
150,966.9
3,549.0
2,686.7
610.4
304,407.5
132,158.8
172,248.7
3,762.6
3,068.7
656.7
266,882.2
115,187.4
151,694.7
3,702.7
2,554.3
665.2
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
641.7
2,901.4
377.1
14.7
6.9
3.1
676.6
3,017.6
418.7
16.3
8.1
3.5
805.9
3,482.5
500.9
18.0
9.0
3.5
855.6
3,795.0
520.9
20.3
9.7
3.6
761.3
3,247.5
477.4
18.9
8.2
3.4
891.5
3,911.6
559.9
20.0
9.2
3.6
763.1
3,279.7
482.2
19.5
7.6
3.7
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 4
MMDA
Savings deposits 5
1. Historical tables containing revised data for earlier periods may be obtained
from the Monetary and Reserves Projections Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and
of states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16
DomesticNonfinancialStatistics • February 1990
All Commercial Banks1
1.23 LOANS AND SECURITIES
Billions of dollars; averages of Wednesday figures
1988
1989
Category
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
1 Total loans and securities
2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
Commercial and industrial . . . . .
5
6
Bankers acceptances held . . .
7
Other commercial and
industrial
U.S. addressees 4
8
9
Non-U.S. addressees 4
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14
Agricultural
15
State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables
19 All other loans
2,417.2
2,422.8
2,451.9
2,464.9
2,470.9
2,486.3
2,496.8
2,518.1
2,534.4
2,544.1
2,575.5
2,583.9
361.4
194.0
1,861.9
601.9
4.1
360.4
189.6
1,872.9
606.6
4.4
361.8
190.4
1,899.7
619.0
4.2
368.8
189.7
1,906.5
617.8
4.0
370.7
187.2
1,913.1
620.6
4.1
373.5
186.4
1,926.5
626.3
4.2
373.8
185.7
1,937.3
624.9
4.2
374.4
184.6
1,959.1
632.1
4.1
376.6
182.8
1,974.9
637.3
4.5
378.8
182.9
1,982.4
636.9
4.8
391.7
182.7
2,001.1
641.1
5.4
397.5
180.3
2,006.1
641.6
4.9
597.8
591.8
5.9
672.0
355.5
38.5
602.2
596.6
5.7
678.9
357.9
37.6r
614.8
609.9
4.9
685.6
358.9
44.7
613.7
608.3
5.4
691.8
360.6
43.5'
616.6
611.7
4.9'
699.5
362.9
39. V
622.1
616.6
5.4
705.5
365.4
38.(y
620.7
615.2
5.5
712.0
366.0
41.2'
628.1
622.2
5.9
719.9
367.0
40.5
632.8
627.1
5.7
729.0
369.3
39.8'
632.1
626.6
5.5
734.4
372.1
40.6
635.7
629.4
6.2
741.1
374.4
42.3
636.7
631.3
5.4
747.7
376.9
41.4
30.0
30.7
30. r
30.7
30.5'
30.7
29.6'
30.7
29.1'
30.4
28.6'
30.3
30.2'
30.3
31.3'
30.4
31.7'
30.3
32.1
30.2
33.r
30.1
33.1
30.5
r
44.3'
8.5
4.8
29.6
43.1'
44.3'
8.2
4.8
29.6
45.6'
44.4'
8.4'
4.9
29.8
43.2'
44.4'
9.4
4.9
30.0
43.7'
44.2'
9.3
4.7
29.9
44.5'
43^
8.9
4.5
30.3
50.2'
43.6'
9.3
4.3
30.3
49.9'
43.5
8.5
4.3
31.0
48.7'
42.9
9.8
4.0
31.6
50.7'
42.3
9.1
3.8
31.6
48.1
r
46.7
7.6
4.9
29.2
44.9'
44.2
7.8
4.8
29.4
44.8r
Not seasonally adjusted
20 Total loans and securities2
2,429.6
2,430.7
2,453.6
2,462.8
2,473.9
2,487.4
2,500.9
2,511.8
2,526.9
2,541.2
2,565.6'
2,582.7
21 U.S. government securities . . .
22 Other securities
23 Total loans and leases 2
24
Commercial and industrial . ,
25
Bankers acceptances held
26
Other commercial and
industrial
27
U.S. addressees 4
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
361.6
193.7
1,874.2
605.0
4.1
362.2
191.7
1,876.9
605.8
4.1
366.3
190.1
1,897.2
618.3
4.1
370.2
188.9
1,903.7
621.1
4.0
370.9
187.2
1,915.9
625.2
4.0
372.6
186.8
1,928.0
630.0
4.3
372.6
186.0
1,942.3
629.0
4.4
373.1
184.1
1,954.6
631.0
4.2
376.8
183.1
1,966.9
632.7
4.6
378.5
182.8
1,980.0
632.2
4.9
388.3
181.6
1,995.6
636.0
5.5
396.1
180.5
2,006.1
638.7
4.8
600.9
594.8
6.1
673.3
359.4
38.9
601.7
596.4
5.3
678.9
360.7
38.1'
614.2
608.9
5.3
683.6
358.2
43.7'
617.1
611.8
5.3
689.2
357.7
44.1
621.3
616.0
5.3
697.4
360.3
42.0
625.8
620.2
5.5
704.1
363.2
38.9
624.6
619.0
5.6
712.1
364.5
42.9
626.8
621.1
5.6
720.6
365.9
40.1'
628.0
622.6
5.5
730.4
369.3
38.5'
627.3
621.8
5.5
736.5
374.0
39.1
630.5
625.0
5.5
741.9
375.6
40.5
634.0
628.6
5.4
749.8
378.1
40.7
31.1
30.5
30.6'
30.1
29.9r
29.7'
29.C
29.6
28.9'
29.5'
28.8'
30.1
30.4'
30.6'
31.3'
31.1
31.6'
31.2
32.0
31.1
32.7'
31.0
33.3
30.7
46.6
7.9
4.9
29.4
47.3
45.6'
8.1
4.8
29.7
44.4'
45.3'
8.5
4.8
29.7
45.4'
44.9'
8.0
4.8
29.7
45.8'
44.6'
8.1'
4.9
29.8
45.C
44.3'
9.0
4.9
30.0
44.8'
43^
9.1
4.7
30.0
45.2'
43.4'
9.0
4.5
30.2
47.6'
43.2'
9.1
4.3
30.2
46.5'
42.9
8.7
4.3
30.9
48.2'
42.5
9.8
4.0
31.4
50.2'
41.8
9.2
3.8
31.5
48.5
1. Data have been revised because of benchmarking beginning January 1984.
These data also appear in the Board's G.7 (407) release. For address, see inside
front cover.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1
Monthly averages, billions of dollars
1988
1989
Source
Dec.
Seasonally adjusted
1 Total nondeposit funds 2
—
2 Net balances due to related foreign offices . . . .
3 Borrowings from other than commercial banks
in United States 4
4 Domestically chartered banks
5
Foreign-related banks
Not seasonally adjusted
6 Total nondeposit funds 2
^
7 Net balances due to related foreign offices
8 Domestically chartered banks
9
Foreign-related banks
10 Borrowings from other than commercial banks
in United States 4
11 Domestically chartered banks
12
Federal funds and security RP
borrowings
Other
13
14
Foreign-related banks
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
215.2
6.8
208.2
8.2
211.3
10.7
212.1
8.2
205.9
3.0
209.9
-.1
226.9'
i.r
228.3
11.1
229.7'
9.2'
237.9'
9.6'
248.3'
9.9
251.8
8.7
208.4
169.4
39.0
200.0
163.0
37.0
200.6
161.3
39.3
203.9
165.8
38.1
202.9
164.2
38.7
210.0
169.2
40.7
219.2
179.1
40.1
217.2
175.4
41.8
220.5
178.2
42.3
228.3
184.9
43.4
238.4'
192.0
46.4
243.1
194.4
48.7
209.6
9.3'
-20.6
29.9
207.4
7.9
-20.2
28.1
216.1
10.5
-17.6
28.1
217.7
7.2
-19.5
26.7
208.6
.9
-22.8
23.7
217.5
2.5
-21.9
24.4'
230.0'
7.9 r
-18.3
26.2 r
224.0
8.1
-16.4
24.5'
228.5'
8.8'
-15.5
24.3'
233.9
10.6'
-14.2
24.8'
241.4'
9.6'
-14.8
24.4
247.5
9.7
-15.2
24.9
200.3
163.3
199.5
161.3
205.7
165.1
210.6
170.9
207.7
168.1
215.0
173.8
222.2
180.5
215.9
173.5
219.7
177.7
223.3
180.7
231.8'
187.2
237.8
192.7
159.8
3.5
37.0
157.9
3.4
38.1
161.9
3.2
40.6
167.5
3.5
39.6
163.8
4.3
39.6
170.1
3.7
41.2
177.0
3.4
41.7
170.8
2.7
42.4
175.1
2.6
42.0
178.1
2.6
42.6
184.8
2.4
44.7
190.7
2.0
45.0
429.2
429.8
434.9
434.5
440.3
440.2
446.7
448.2
452.7
450.6
456.8
455.5
458.8
457.3
461.6
458.8
460.4
461.2
458.0
460.1
459.3'
461.0'
461.3
462.8
24.9
22.9
20.3
25.0
20.3
25.9
20.3
18.1
20.9
20.2
27.1
34.3
27.4
26.2
22.7
23.0
22.9
15.8
23.8
24.9
19.9
20.6'
20.3
14.6
MEMO
Gross large time deposits
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks 8
17 Seasonally adjusted
18 Not seasonally adjusted
15
16
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes federal funds, RPs, and other borrowing from nonbanks and net
balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own IBFs.
4. Other borrowings are borrowings through any instrument, such as a promissory note or due bill, given for the purpose of borrowing money for the banking
business. This includes borrowings from Federal Reserve Banks and from foreign
banks, term federal funds, loan RPs, and sales of participations in pooled loans.
5. Based on daily average data reported weekly by approximately 120 large
banks and quarterly or annual data reported by other banks.
6. Figures are partly daily averages and partly averages of Wednesday data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
A18
DomesticNonfinancialStatistics • February 1990
Last-Wednesday-of-Month Series1
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars
1989
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
2,587.0
533.5
347.3
186.2
21.5
2,032.1
159.9
1,872.2
604.6
679.7
360.8
227.0
2,624.0
535.8
351.3
184.5
20.1
2,068.0
173.2
1,894.9
617.6
684.1
358.3
234.8
2,627.1
539.1
355.5
183.6
21.8
2,066.2
154.9
1,911.3
622.9
692.6
358.1
237.7
2,623.0
538.3
356.6
181.7
17.8
2,066.8
150.7
1,916.2
627.3
699.4
361.8
227.7
2,659.8
541.1
359.1
182.0
19.2
2,099.5
160.5
1,939.0
631.1
706.7
363.8
237.4
2,660.7
541.6
362.2
179.4
18.2
2,100.9
155.0
1,945.9
628.3
715.1
366.0
236.6
2,677.1
538.3
360.3
178.1
19.8
2,119.0
162.4
1,956.6
635.3
722.8
366.2
232.3
2,692.5
542.8
365.3
177.5
18.7
2,131.0
162.9
1,968.1
631.9
733.9
371.4
231.0
2,695.7
542.4
366.4
176.1
18.3
2,135.0
158.0
1,977.1
630.3
737.5
375.5
233.7
2,728.1
545.4
370.8
174.6
26.6
2,156.1
164.2
1,992.0
634.9
743.2
376.1
237.8
2,764.7
549.5
375.8
173.7
27.6
2,187.6
179.9
2,007.8
638.7
752.1
378.8
238.2
216.1
31.5
27.5
76.4
227.4
27.7
26.6
89.1
211.5
30.9
26.8
75.9
215.8
33.4
26.9
78.8
248.3
27.8
27.9
107.6
214.2
27.9
27.6
78.7
211.7
30.6
27.4
75.2
212.0
28.7
28.5
77.4
219.6
31.7
28.0
82.6
213.0
28.0
27.9
77.5
234.8
38.7
30.7
84.1
28.7
52.0
33.3
50.7
28.8
49.0
28.5
48.3
34.9
50.2
29.6
50.5
28.8
49.7
29.7
47.7
29.0
48.3
28.8
50.7
28.9
52.3
A L L COMMERCIAL B A N K I N G
INSTITUTIONS 2
1 Loans and securities
2
Investment securities
i
U.S. government securities
4
Other
5 Trading account assets
6 Total loans
1
Interbank loans
8
Loans excluding interbank
Commercial and industrial
9
10
Real estate
11
Individual
All other
12
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
194.6
191.4
194.1
200.7
206.8
198.7
201.1
199.6
203.9
203.8
201.9
20 Total assets/total liabilities and capital
2,997.8
3,042.8
3,032.7
3,039.5
3,114.9
3,073.6
3,090.0
3,104.0
3,119.3
3,144.9
3,201.4
21
22
23
24
25
26
27
2,097.1
586.6
528.8
981.7
493.6
209.1
198.0
2,125.2
602.6
527.3
995.3
502.9
216.5
198.2
2,123.7
583.2
523.2
1,017.3
483.6
223.9
201.4
2,134.2
594.5
512.0
1,027.6
486.7
217.4
201.2
2,182.6
628.5
509.7
1,044.3
510.6
218.6
203.2
2,138.2
580.5
507.4
1,050.2
512.7
218.4
204.4
2,152.0
579.4
514.0
1,058.6
510.2
223.1
204.7
2,166.6
583.4
518.9
1,064.4
504.6
226.3
206.5
2,175.3
588.5
520.7
1,066.1
516.5
221.4
206.1
2,194.2
588.0
527.6
1,078.6
526.5
222.4
201.9
2,221.1
602.5
537.6
1,081.0
542.2
235.2
202.9
364.4
366.2
372.1
369.5
372.3
374.4
373.5
377.5
378.5
390.4
396.2
190.5
189.7
188.8
186.6
188.0
185.4
184.6
184.0
182.3
181.6
180.9
2,385.1
507.0
334.5
172.6
21.5
1,856.6
131.4
1,725.2
498.9
657.7
360.5
208.1
2,405.9
509.0
338.1
171.0
20.1
1,876.8
138.9
1,737.8
503.4
661.7
358.0
214.7
2,407.8
513.1
342.7
170.4
21.8
1,872.8
122.3
1,750.5
506.1
669.8
357.7
216.9
2,407.8
513.8
344.1
169.7
17.8
1,876.2
120.2
1,756.0
511.3
676.0
361.4
207.3
2,446.0
516.1
345.9
170.2
19.2
1,910.6
131.5
1,779.2
515.5
683.2
363.5
217.0
2,439.9
517.3
349.5
167.8
18.2
1,904.5
119.3
1,785.1
511.6
691.6
365.6
216.3
2,452.1
514.2
347.8
166.5
19.8
1,918.1
126.4
1,791.7
515.6
698.2
365.8
212.0
2,467.6
519.4
353.5
165.9
18.7
1,929.4
127.0
1,802.5
512.8
708.7
371.1
209.9
2,473.6
519.0
354.5
164.5
18.3
1,936.3
125.1
1,811.2
510.4
712.2
375.2
213.5
2,506.5
521.6
358.7
162.9
26.6
1,958.3
134.9
1,823.5
514.2
717.1
375.8
216.4
2,526.4
523.0
362.1
160.9
27.6
1,975.8
142.1
1,833.7
515.2
724.5
378.5
215.5
193.5
30.1
27.4
75.6
206.4
26.6
26.6
88.1
191.4
29.5
26.8
75.1
195.3
30.7
26.8
77.9
227.0
26.7
27.9
106.6
192.3
26.6
27.6
77.7
190.1
29.6
27.4
74.4
191.7
27.0
28.5
76.5
197.6
29.5
28.0
81.3
191.5
26.3
27.9
76.3
209.5
37.9
30.7
82.2
26.8
33.6
31.2
33.9
26.6
33.4
26.8
33.1
32.9
33.0
27.5
32.9
27.0
31.7
28.0
31.7
27.3
31.6
26.9
34.2
27.0
31.7
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL B A N K S 3
30 Loans and securities
31
Investment securities
32
U.S. government securities
33
Other
34 Trading account assets
35
Total loans
36
Interbank loans
3/
Loans excluding interbank
Commercial and industrial
38
Real estate
39
Individual
40
41
All other
42 Total cash assets
Reserves with Federal Reserve Banks.
43
44
Cash in vault
45
Cash items in process of collection . . .
46
Demand balances at U.S. depository
institutions
47
Other cash assets
48 Other assets
128.1
129.6
130.6
134.6
133.6
131.6
128.4
127.5
131.5
126.3
132.2
49 Total assets/liabilities and capital
2,706.7
2,741.8
2,729.9
2,737.7
2,806.6
2,763.9
2,770.6
2,786.7
2,802.8
2,824.3
2,868.2
50
51
52
53
54
55
56
2,026.1
577.4
526.4
922.3
377.1
109.0
194.5
2,052.7
593.5
524.8
934.4
378.7
115.8
194.6
2,047.4
574.1
520.7
952.6
362.8
121.7
197.9
2,056.2
584.8
509.4
961.9
368.2
115.6
197.7
2,103.0
618.7
507.1
977.2
383.0
120.9
199.7
2,058.8
571.2
504.8
982.9
387.3
116.9
200.8
2,071.3
570.2
511.3
989.9
380.2
117.8
201.2
2,086.9
574.7
516.2
995.9
375.5
121.3
203.0
2,094.5
578.8
517.9
997.7
390.8
114.9
202.6
2,112.4
578.4
525.0
1,009.0
393.2
120.4
198.4
2,139.2
592.7
534.8
1,011.6
404.4
125.2
199.4
40.7
617.0
41.7
620.0
42.5
627.3
43.4
632.6
44.3
638.9
45.3
646.2
45.7
652.5
46.4
662.3
47.1
665.0
47.9
669.2
48.5
676.0
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
57 Real estate loans, revolving
58 Real estate loans, other
1. Back data are available from the Banking and Monetary Statistics section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
A19
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1
Millions of dollars, Wednesday figures
1989
Account
Oct. 4
r
Oct. 11'
Oct. 18
Oct. 25
119,016
105,871
Nov. 15
Nov. 22
No v. 29
130,646
109,189
117,955
111,965
120,1%
1,246,046
1,265,999
1,250,175
1,250,240
160,058
21,235
138,823
69,155
160,632
21,716
138,916
69,308
163,309
23,416
139,893
70,664
162,585
22,109
140,476
71,018
161,418
20,406
141,011
71,372
19,601'
19,880
36,130'
35,298
13,587'
14,490
68,368
67,060
913
913
67,455
66,147
39,125
40,192
4,888'
4,850
34,275
35,304'
27,263
27,022
6,082
6,148
65,760
88,666
44,373
61,206
17,833
14,886
6,502
9,628
986,764'
995,361
960,688'
%9,204
317,618'
320,540
2,251
1,816
318,725
315,368'
313,782'
316,994
1,731
1,586
347,224
345,538'
26,408
26,491
319,130'
320,733
173,908'
174,030
50,343'
51,104
22,621'
23,049
5,297
5,264
22,791
22,425'
17,319
16,948
5,559
5,585
26,061
25,935
1,441
1,459
23,245'
26,032
26,076
26,158
4,905
4,862
38,236'
38,054
952,445
943,623'
128,881'
134,843
1,476,552' 1,539,868
216,473'
247,460
173,171'
194,018
5,977
7,122
2,262
1,582
19,716
26,572
6,429
7,138
746
738
8,171
10,290
74,792
77,424
700,134'
702,217
661,600'
664,417
29,988
29,253
932
944
6,989
6,999
626
604
300,265'
324,064
0
0
14,321
24,403
285,944'
299,661
87,028
90,280
1,378,691' 1,441,444
97,861
98,423
19,745
35,494
14,368
66,732
900
65,832
38,800
4,943
33,857
27,032
6,118
70,289
46,071
17,280
6,937
985,325
959,202
318,158
1,787
316,371
314,706
1,665
348,182
26,542
321,640
174,062
48,710
21,194
4,752
22,764
15,137
5,511
25,836
1,481
22,126
26,122
4,886
38,163
942,275
136,203
1,491,439
19,342
35,466
14,422
66,884
1,064
65,820
38,628
4,932
33,696
27,192
6,066
81,758
56,293
17,373
8,092
991,079
964,937
320,196
1,721
318,475
316,673
1,802
348,902
26,653
322,249
174,713
49,411
22,137
4,787
22,487
16,006
5,521
25,548
1,483
23,156
26,142
4,890
38,208
947,982
138,022
19,307
35,711
14,439
66,571
1,032
65,538
38,525
4,947
33,578
27,014
6,046
66,208
43,124
16,695
6,389
991,900
%5,694
320,054
1,721
318,334
316,676
1,657
19,189
35,704
14,747
66,468
1,182
65,286
38,395
4,948
33,447
26,890
5,982
67,784
45,474
15,902
6,409
991,549
%5,323
318,938
1,520
317,417
315,760
1,657
349,409
26,734
322,676
174,802
49,635
22,798
4,642
22,195
16,356
5,449
25,429
1,388
23,172
26,206
4,941
38,194
948,765
132,925
98,417
1,521,976
243,069
193,084
6,632
4,266
23,788
6,050
592
8,655
77,533
705,265
667,393
29,467
940
6,886
579
308,670
1,150
3,232
304,288
89,176
1,423,713
98,263
1,495,066
227,363
181,649
6,925
3,212
20,081
6,583
781
8,131
76,872
703,451
665,702
29,335
949
6,890
574
297,894
0
7,613
290,280
90,688
1,396,268
98,798
350,282
26,816
323,466
175,401
49,021
21,594
4,555
22,872
15,760
5,402
25,389
1,414
23,717
26,226
4,912
38,050
948,588
133,364
1,503,799
223,373
178,974
5,623
1,793
21,049
6,250
618
9,066
76,012
703,876
665,907
29,420
944
7,037
569
310,669
899
9,607
300,164
90,997
1,404,928
98,871
1,221,831
988,349
218,739
18,288
1,523
1,221
302
264,324
1,230,667
994,408
218,338
17,957
1,126
825
301
266,525
1,227,388
992,186
218,219
17,594
829
525
304
265,355
1,226,134
992,266
217,748
17,100
536
231
305
265,832
124,614
1,231,335
148,304
3 U.S. Treasury and government agency
14,086
4 Trading account
5 Investment account
134,218
66,189
Mortgage-backed securities
6
All other maturing in
20,204
7
One year or less
35,853
8
Over one through five years
11,971
9
Over five years
69,311
10 Other securities
891
11 Trading account
68,420
12 Investment account
41,061
13
States and political subdivisions, by maturity
4,920
14
One year or less
36,141
15
Over one year
27,359
16
Other bonds, corporate stocks, and securities
5,422
17 Other trading account assets
69,203
18 Federal funds sold 4
48,890
19 To commercial banks
13,750
20
To nonbank brokers and dealers in securities
6,563
21
To others
983,014
22 Other loans and leases, gross
957,242
23
Other loans, gross
317,303
24
Commercial and industrial
2,217
25
Bankers acceptances and commercial paper
315,086
26
All other
313,467
77
U.S. addressees
1,618
Non-U.S. addressees
28
343,325
79
Real estate loans
26,110
30
Revolving, home equity
317,215
31
All other
173,485
32
To individuals for personal expenditures
49,286
33
To depository and financial institutions
21,457
34
Commercial banks in the United States
5,125
35
Banks in foreign countries
22,704
36
Nonbank depository and other financial institutions ..
16,773
37
For purchasing and carrying securities
5,710
38
To finance agricultural production
26,070
39
To states and political subdivisions
1,575
40
To foreign governments and official institutions
23,716
41
All other
25,772
42 Lease financing receivables
4,876
43 LESS: Unearned income
37,395
44
Loan and lease reserve
45 Other loans and leases, net
940,743
130,329
46 All other assets
1,483,649
47 Total assets
232,518
48 Demand deposits
182,563
49
Individuals, partnerships, and corporations
5,634
50
States and political subdivisions
5,347
51
U.S. government
21,168
52 Depository institutions in the United States
53
7,295
Banks in foreign countries
716
54
Foreign governments and official institutions
9,796
55
Certified and officers' checks
77,407
56 Transaction balances other than demand deposits
691,326
57 Nontransaction balances
653,075
58
Individuals, partnerships, and corporations
29,689
59
States and political subdivisions
865
60
U.S. government
7,040
61
Depository institutions in the United States
656
62
Foreign governments, official institutions, and banks . .
299,212
63 Liabilities for borrowed money
3,040
64
Borrowings from Federal Reserve Banks
11,838
65
Treasury tax-and-loan notes
284,334
66
All other liabilities for borrowed money
86,169
67 Other liabilities and subordinated notes and debentures ..
1,386,632
68 Total liabilities
97,016
69 Residual (total assets minus total liabilities)7
150,548
14,966
135,582
66,411
155,831
17,855
137,975
68,127'
20,390
36,333
12,448
69,057
745
68,311
41,007
4,913
36,094
27,304
6,661
61,868
40,206
14,839
6,823
986,092
960,062
318,536
2,116
316,420
314,691
1,730
343,766
26,229
317,537
173,0%
51,247
22,681
5,589
22,977
16,171
5,670
25,916
1,558
24,100
26,030
4,874
38,017
943,200
130,200
20,087'
36,256'
13,505'
68,806
778
68,028
40,867
4,901'
35,966'
27,161
5,889
66,272
43,350
16,273
6,650
988,322'
962,183'
317,968'
2,242
315,725'
313,933'
1,792
345,527'
26,349
319,177'
173,494'
51,074'
23,356'
5,150
22,568'
16,682
5,670
25,825
1,518
24,426'
26,139
4,902
38,158'
945,262'
131,761'
1,486,150 1,492,836'
238,524
233,292'
190,522
183,413'
5,917
5,419
1,795
4,326
23,%1
23,235
6,778
7,058
843
786
9,205
8,556
76,476
75,992
692,210
699,513'
653,825
661,464'
29,859
29,737
938
928
6,943
6,762
643
622
298,772
301,665'
70
30
11,530
10,228
287,172
291,407'
84,423
82,906
1,388,888 1,394,884'
97,262
Nov. 8
1,242,060' 1,241,800' 1,274,378
120,336
1,232,984
1 Cash and balances due from depository institutions
2 Total loans, leases, and securities, net
Nov. 1
97,952
157,966
19,574
138,392
69,073'
222,108
177,381
5,244
3,227
20,374
6,068
621
9,192
77,648
702,165
664,475
29,204
946
6,923
617
303,615
0
2,520
301,095
87,485
1,393,022
MEMO
70
71
72
73
74
75
76
77
Total loans and leases (gross) and investments adjusted . 1,204,906
981,869
Total loans and leases (gross) adjusted
218,333
Time deposits in amounts of $100,000 or more
16,630
U.S. Treasury securities maturing in one year or less
1,510
Loans sold outright to affiliates—total
1,198
Commercial and industrial
312
Other
258,009
Nontransaction savings deposits (including MMDAs)
1,211,340
985,073
217,843
17,562
1,277
977
300
258,652
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. For adjustment bank data see this table in the March 1989 Bulletin. The
adjustment data for 1988 should be added to the reported data for 1988 to establish
comparability with data reported for 1989.
3. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
4. Includes securities purchased under agreements to rese".
5. Includes allocated transfer risk reserve.
1,218,415' 1,217,948'
987,889'
985,531'
218,983
220,418
17,394'
17,790'
1,471'
1,575'
1,171'
1,265'
300'
310r
259,762
259,460
1,233,040
999,773
218,032
18,413
1,526
1,226
300
264,644
6. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
7. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
8. Exclusive of loans and federal funds transactions with domestic commercial
banks.
9. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
DomesticNonfinancialStatistics • February 1990
1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN NEW YORK CITY1
Millions of dollars, Wednesday figures
Account
Oct. 4
1 Cash balances due from depository institutions
2 Total loans, leases, and securities, net2
Securities
3 U.S. Treasury and government agency 3
4
Trading account
Investment account
5
Mortgage-backed securities 4
6
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities 3
11 Trading account
12 Investment account
13
States and political subdivisions, by maturity
14
One year or less
15
Over one year
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
Loans and leases
Federal funds sold 5
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
Mother
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
Mother
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 7
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
Other liabilities and subordinated notes and debentures . . .
68 Total liabilities
69 Residual (total assets minus total liabilities)9
Oct. 11
Oct. 18
Oct. 25
Nov. 1
Nov. 8
Nov. 15
Nov. 22
Nov. 29
30,552
26,926
27,270
24,144
34,938
25,318
24,768
21,833
28,750
213,517
211,371
213,066
210,064
222,339
207,756
220,795
209,742
212,537
0
0
14,900
7,662
0
0
15,117
7,766
0
0
15,527
8,132
0
0
15,793
8,420
0
0
15,927
8,442
0
0
15,890
8,447
0
0
15,718
8,376
0
0
16,173
8,627
0
0
16,100
8,534
2,628
3,260
1,350
0
0
16,771
9,761
1,090
8,671
7,010
0
2,722
3,244
1,384
0
0
16,791
9,809
1,092
8,717
6,982
0
2,685
3,299
1,411
0
0
16,592
9,729
1,081
8,648
6,863
0
2,712
3,252
1,409
0
0
16,080
9,101
1,067
8,034
6,978
0
2,836
3,241
1,408
0
0
15,312
8,403
1,061
7,343
6,908
0
2,844
3,271
1,326
0
0
15,032
8,120
1,046
7,074
6,912
0
2,849
3,176
1,316
0
0
15,092
8,057
1,051
7,006
7,035
0
2,858
3,403
1,284
0
0
15,056
8,020
1,052
6,%9
7,036
0
2,831
3,301
1,434
0
0
14,846
7,988
1,049
6,940
6,858
0
20,567
12,776
3,926
3,865
180,904
175,246
58,977
562
58,416
57,844
572
59,259
3,729
55,530
19,947
19,485
8,541
3,524
7,419
6,257
159
5,942
481
4,738
5,658
1,749
17,876
161,279
52,525
16,055
7,447
4,548
4,059
183,532
177,880
60,963
499
60,464
59,776
688
59,363
3,765
55,598
19,955
20,132
8,628
4,002
7,501
5,874
153
5,7%
468
5,176
5,651
1,753
18,370
163,408
53,628
17,797
7,910
6,236
3,651
183,281
177,546
60,592
529
60,063
59,339
724
59,658
3,776
55,881
20,028
19,472
8,489
3,673
7,311
6,660
145
5,776
427
4,788
5,735
1,762
18,368
163,150
56,913
15,519
6,700
5,295
3,524
182,810
177,085
60,476
600
59,876
59,269
607
59,520
3,788
55,731
20,006
19,247
7,983
3,862
7,402
6,923
134
6,010
330
4,440
5,726
1,758
18,381
162,672
56,399
25,543
13,429
6,2%
5,818
185,571
179,860
61,631
165
61,466
60,764
702
59,768
3,798
55,970
20,055
19,624
8,082
3,777
7,765
7,069
122
5,969
384
5,238
5,711
1,738
18,275
165,558
60,546
17,730
9,001
4,919
3,811
179,133
173,458
60,418
160
60,259
59,620
639
59,939
3,809
56,130
20,139
16,926
5,901
3,357
7,668
5,516
114
5,961
412
4,032
5,676
1,759
18,271
159,103
61,507
27,450
16,294
6,104
5,052
182,583
176,911
61,406
151
61,255
60,473
782
59,925
3,810
56,115
20,150
18,481
7,380
3,382
7,720
6,366
113
5,695
425
4,350
5,672
1,757
18,290
162,536
62,540
16,640
8,473
5,077
3,089
181,982
176,269
60,506
136
60,371
59,795
576
60,099
3,828
56,270
20,168
18,256
7,391
3,239
7,626
6,857
102
5,565
339
4,377
5,714
1,820
18,290
161,873
59,368
19,788
12,046
4,600
3,143
181,873
176,168
60,040
131
59,909
59,332
578
60,309
3,835
56,474
20,148
18,188
6,954
3,127
8,108
6,404
103
5,555
382
5,037
5,705
1,791
18,280
161,802
59,680
296,595
291,924
297,249
290,607
317,824
294,581
308,103
290,943
300,966
53,632
36,592
747
1,085
4,594
6,000
571
4,044
55,395
39,689
728
255
4,844
5,520
682
3,675
54,149
37,565
587
776
5,928
5,588
609
3,0%
49,626
34,971
536
351
5,209
5,082
601
2,874
61,956
41,668
956
170
8,798
5,849
554
3,%2
51,659
35,810
582
626
5,028
4,941
458
4,213
56,515
40,130
%5
715
6,800
4,675
453
2,777
50,289
35,858
635
604
4,114
5,413
646
3,018
50,743
34,999
493
326
5,920
4,944
468
3,593
8,422
113,952
103,989
7,422
29
2,228
284
67,632
3,010
2,484
62,138
29,552
8,367
112,870
102,880
7,472
29
2,214
273
65,559
0
2,338
63,221
26,384
8,219
113,540
103,703
7,494
29
2,047
266
70,695
0
1,856
68,839
26,472
8,077
113,590
103,538
7,647
29
2,103
273
66,232
0
2,939
63,292
28,891
8,255
115,441
105,718
7,388
29
2,034
271
75,784
0
5,684
70,100
32,327
8,305
113,697
104,048
7,274
29
2,074
273
67,473
0
422
67,050
29,333
8,361
116,677
106,976
7,353
30
2,062
256
72,910
1,150
604
71,157
29,622
8,252
115,318
105,704
7,281
29
2,051
252
62,029
0
1,465
60,564
30,619
8,205
115,313
105,701
7,292
29
2,041
249
69,940
883
1,878
67,179
32,460
273,190
268,574
273,076
266,415
293,763
270,467
284,085
266,507
276,662
23,405
23,350
24,174
24,192
24,060
24,114
24,018
24,436
24,305
211,825
180,154
42,655
2,456
215,419
183,511
41,931
3,005
216,798
184,678
42,246
2,937
215,520
183,646
42,378
2,987
220,842
189,604
42,444
3,353
212,884
181,962
41,933
3,005
217,169
186,359
42,576
2,904
213,987
182,758
41,804
2,990
213,608
182,662
41,576
2,970
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.
6. Includes
FRASER allocated transfer risk reserve.
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 BANKS1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1989
Account
4R
Oct. l l r
12,441
135,837
11,639
135,385
12,739
139,0%
11,626
136,151
12,734
137,834
12,080
139,655
12,983
140,684
12,064
141,024
13,503
147,492
7,330
5,955
6,479
5,062
1,417
116,073
73,801
7,458
5,965
5,908
4,484
1,424
116,054
73,138
8,138
5,954
7,348
5,730
1,618
117,656
74,290
8,122
6,114
4,459
2,966
1,493
117,456
73,777
8,167
6,159
4,441
3,049
1,392
119,067
74,366
8,237
6,204
5,321
3,985
1,336
119,893
75,074
8,268
6,347
4,9%
3,338
1,658
121,073
74,987
8,367
6,423
4,865
3,349
1,516
121,369
75,917
8,997
6,577
8,630
6,978
1,652
123,288
75,544
2,247
71,554
69,772
1,782
16,231
21,271
16,159
1,195
3,917
2,492
70,646
68,876
1,770
16,309
21,912
16,490
1,370
4,052
2,393
71,897
70,006
1,891
16,289
22,229
16,480
1,635
4,114
2,387
71,390
69,547
1,843
16,981
22,198
16,530
1,482
4,186
2,329
72,037
70,117
1,920
17,426
22,630
16,968
1,410
4,252
2,129
72,945
71,1%
1,749
17,379
23,280
16,868
1,521
4,891
2,032
72,955
71,224
1,731
17,753
23,168
17,313
1,324
4,531
2,328
73,589
71,838
1,751
17,643
23,366
17,494
1,343
4,529
2,399
73,145
71,462
1,683
18,077
24,397
18,248
1,564
4,585
643
1,810
2,317
36,027
15,734
200,037
541
1,909
2,245
36,858
16,567
200,450
505
2,111
2,232
36,552
13,691
202,079
500
1,629
2,371
36,633
16,732
201,141
489
1,627
2,529
36,183
20,307
207,059
374
1,472
2,314
36,501
15,348
203,584
373
2,306
2,486
36,571
16,029
206,268
384
1,722
2,337
36,601
16,425
206,113
382
2,317
2,571
36,759
11,540
209,295
50,346
3,937
49,744
3,427
50,642
3,586
50,917
3,881
51,313
4,483
50,944
3,772
52,887
4,918
50,359
3,757
50,030
4,200
2,227
1,710
46,409
2,330
1,097
46,317
2,302
1,284
47,056
2,288
1,593
47,036
2,531
1,952
46,830
2,250
1,522
47,172
2,635
2,283
47,%9
2,661
1,096
46,602
2,438
1,762
45,830
38,677
7,732
38,741
7,576
38,944
8,112
39,102
7,934
39,018
7,812
39,026
8,146
39,184
8,785
38,828
7,774
38,706
7,124
88,183
40,525
86,934
39,415
85,6%
38,918
87,675
39,913
%,525
46,988
90,730
40,454
92,556
42,500
92,251
37,192
90,328
38,944
20,471
20,054
47,658
20,401
19,014
47,519
19,459
19,459
46,778
19,698
20,215
47,762
25,390
21,598
49,537
21,168
19,286
50,276
25,151
17,349
50,056
18,392
18,800
55,059
19,078
19,866
51,384
31,059
16,599
36,653
24,856
200,037
30,678
16,841
36,517
27,255
200,450
30,307
16,471
36,959
28,783
202,079
31,252
16,510
36,426
26,122
201,141
32,411
17,126
36,260
22,%2
207,059
32,698
17,578
36,141
25,769
203,584
32,588
17,468
37,070
23,754
206,268
35,040
20,019
37,114
26,387
206,113
33,158
18,226
37,128
31,808
209,295
114,616
101,331
114,411
100,988
116,886
102,794
116,655
102,419
117,817
103,491
118,802
104,361
120,033
105,418
120,181
105,391
122,266
106,692
Oct.
38
39
40
41
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
Loans secured by real estate 3
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
Mother3
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 4 .
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
42
43
Total loans (gross) and seciuities adjusted 7 . .
Total loans (gross) adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Oct.
18'
Oct.
25'
Nov.
1
Nov.
8
Nov.
15
Nov.
22
Nov.
29
MEMO
1. Effective Jan. 4,1989, the reporting panel includes a new group of large U.S.
branches and agencies of foreign banks. Earlier data included 65 U.S. branches
and agencies of foreign banks that included those branches and agencies with
assets of $750 million or more on June 30,1980, plus those branches and agencies
that had reached the $750 million asset level on Dec. 31, 1984. These data also
appear in the Board's H.4.2 (504) release. For address, see inside front cover.
2. Includes securities purchased under agreements to resell.
3. Effective Jan. 4, 1989, loans secured by real estate are being reported as a
separate component of Other loans, gross. Formerly, these loans were included in
"All other", line 21.
4. Includes credit balances, demand deposits, and other checkable deposits.
5. Includes savings deposits, money market deposit accounts, and time
deposits.
6. Includes securities sold under agreements to repurchase.
7. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
DomesticNonfinancialStatistics • February 1990
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
1988
Type of holder
1984
Dec.
1985
Dec.
1986
Dec.
1989
1987
Dec.
June
Sept.
Dec.
Mar.
June
1 AU holders—Individuals, partnerships, and
corporations
302.7
321.0
363.6
343.5
346.5
337.8
354.7
330.4
329.3
2
3
4
5
6
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
36.3
191.9
90.0
3.4
21.9
37.2
194.3
89.8
3.4
21.9
34.8
190.3
87.8
3.2
21.7
38.6
201.2
88.3
3.7
22.8
36.3
182.2
87.4
3.7
20.7
33.0
185.9
86.6
2.9
21.0
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
f
1
n.a.
1
1
1
Weekly reporting banks
1988
1984
Dec.
1985
Dec.
1986
Dec.
1989
1987
Dec.
June
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Dec.
Mar.
June
Sept.
157.1
168.6
195.1
183.8
191.5
185.3
198.3
181.9
182.2
186.6
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
28.6
100.0
39.1
3.3
12.7
30.0
103.1
42.3
3.4
12.8
27.2
101.5
41.8
3.1
11.7
30.5
108.7
42.6
3.6
12.9
27.2
98.6
41.1
3.3
11.7
25.4
99.8
42.4
2.9
11.7
26.3
101.6
43.0
2.8
12.9
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described in the June 1971 Bulletin, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other
9.5.
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
1989
¥
1984
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
1988
Dec.
May
June
July
Aug.
Sept.
Oct.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
237,586
298,779
329,991
357,129
455,017
497,369
503,445
506,095
516,476
507,090'
507,902
56,485
78,443
101,072
101,958
159,947
167,795
167,681
179,354
183,992'
179,05C
177,713
2,035
1,602
2,265
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
110,543
135,320
151,820
173,939
192,442
206,497
211,020
205,847
208,915
206,521
210,855
42,105
70,558
Financial companies 1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
^
Nonfinancial companies
44,778
85,016
40,860
77,099
43,173
81,232
43,155
102,628
n.a.
123,077
n.a.
124,744
n.a.
121,217
n.a.
125,478
n.a.
123,489'
n.a.
121,466
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
78,364
11
12
13
64,974
70,565
66,631
62,396
64,115
65,588
65,764
63,813
63,660
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
8,908
8,115
794
9,417
8,371
1,046
9,355
8,279
1,076
9,844
8,783
1,061
9,656
8,922
735
10,811
9,108
1,703
0
671
67,881
0
937
56,279
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,374
52,113
0
1,177
53,521
0
1,026
55,207
0
1,014
54,906
0
1,016
53,370
0
1,016
51,833
17,845
16,305
44,214
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
68,413
9,811
8,621
1,191
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
14,900
14,452
33,044
15,093
15,063
33,959
15,338
15,270
34,980
16,140
14,895
34,729
16,265
14,322
33,455
16,157
14,275
33,228
1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. Beginning January 1989, bank-related series have been discontinued.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The 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
Date of change
1987— Apr.
May
1
1
15
Sept.4 ..
Oct. 7
22
Nov. 5
1988— Feb.
May
July
Aug.
Nov.
Period
Rate
7.75
8.00
8.25
8.75
9.25
9.00
8.75
2
11
14
11
28
8.50
9.00
9.50
10.00
10.50
1989—Feb. 10
24
June 5
July 31
11.00
11.50
11.00
1987
1988
1989
1987— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
8.21
9.32
n.a.
7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
8.70
9.07
8.78
8.75
10.50
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Period
1988— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
8.75
8.51
8.50
8.50
8.84
9.00
9.29
9.84
10.00
10.00
10.05
10.50
Period
1989—Jan. ...
Feb. .
Mar. .
Apr. .
May ..
June .
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec.
A24
DomesticNonfinancialStatistics • February 1990
1.35 INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1989
Instrument
1986
1987
1989, week ending
1988
Aug.
Sept.
Oct.
Nov.
Oct. 27
Nov. 3
Nov. 10
Nov. 17
MONEY MARKET RATES
1 Federal funds 1 ' 2
2 Discount window borrowing 1, 3
Commercial paper •
3
1-month
4
3-month
6-month
5
Finance paper, directly placed 4,
6
1-month
7
3-month
6-month
8
Bankers acceptances ,6
9
3-month
10 6-month
Certificates of deposit, secondary market 7
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits^ 3-month 8
U.S. Treasury bills
Secondary market 9
15
3-month
16 6-month
17
1-year
Auction average 10
18 3-month
19 6-month
20
1-year
6.80
6.32
6.66
5.66
7.57
6.20
8.99
7.00
9.02
7.00
8.84
7.00
8.55
7.00
8.72
7.00
8.80
7.00
8.69
7.00
8.46
7.00
6.61
6.49
6.39
6.74
6.82
6.85
7.58
7.66
7.68
8.79
8.57
8.32
8.87
8.70
8.50
8.66
8.53
8.24
8.47
8.35
8.00
8.55
8.42
8.07
8.63
8.49
8.12
8.53
8.44
8.07
8.43
8.33
7.98
6.57
6.38
6.31
6.61
6.54
6.37
7.44
7.38
7.14
8.67
8.20
7.49
8.76
8.35
7.56
8.54
8.29
7.50
8.33
8.07
7.45
8.45
8.14
7.47
8.51
8.15
7.44
8.41
8.13
7.51
8.31
8.09
7.52
6.38
6.28
6.75
6.78
7.56
7.60
8.47
8.22
8.59
8.37
8.42
8.08
8.21
7.86
8.32
7.92
8.34
7.99
8.29
7.96
8.18
7.81
6.61
6.51
6.50
6.70
6.75
6.87
7.01
7.07
7.59
7.73
7.91
7.85
8.77
8.64
8.56
8.71
8.83
8.78
8.75
8.85
8.62
8.60
8.45
8.67
8.44
8.39
8.21
8.42
8.54
8.49
8.29
8.58
8.58
8.53
8.33
8.56
8.50
8.48
8.32
8.60
8.40
8.36
8.18
8.43
5.97
6.02
6.07
5.78
6.03
6.33
6.67
6.91
7.13
7.90
7.74
7.61
7.75
7.74
7.65
7.64
7.62
7.45
7.69
7.49
7.25
7.60
7.50
7.28
7.77
7.58
7.35
7.74
7.59
7.35
7.67
7.45
7.21
5.98
6.03
6.07
5.82
6.05
6.33
6.68
6.92
7.17
7.91
7.72
7.45
7.72
7.74
7.61
7.63r
7.61
7.35
7.65
7.46
7.17
7.52
7.50
7.35
7.78
7.62
n.a.
7.67
7.49
n.a.
7.68
7.51
n.a.
6.45
6.86
7.06
7.30
7.54
7.67
7.84
7.78
6.77
7.42
7.68
7.94
8.23
8.39
n.a.
8.59
7.65
8.10
8.26
8.47
8.71
8.85
n.a.
8.96
8.18
8.14
8.13
8.09
8.11
8.11
n.a.
8.12
8.22
8.28
8.26
8.17
8.23
8.19
n.a.
8.15
7.99
7.98
8.02
7.97
8.03
8.01
n.a.
8.00
7.77
7.80
7.80
7.81
7.86
7.87
n.a.
7.90
7.81
7.81
7.86
7.83
7.90
7.89
n.a.
7.91
7.89
7.88
7.92
7.86
7.91
7.92
n.a.
7.91
7.87
7.86
7.89
7.87
7.89
7.92
n.a.
7.91
7.71
7.75
7.74
7.79
7.84
7.86
n.a.
7.89
8.14
8.64
8.98
8.26
8.31
8.15
8.03
8.05
8.04
8.03
8.02
6.95
7.76
7.32
7.14
8.17
7.63
7.36
7.83
7.68
6.67
7.03
7.06
6.97
7.26
7.26
6.93
7.33
7.22
6.77
7.16
7.14
6.90
7.35
7.22
7.00
7.32
7.24
6.80
7.25
7.20
6.70
7.25
7.12
9.71
9.02
9.47
9.95
10.39
9.91
9.38
9.68
9.99
10.58
10.18
9.71
9.94
10.24
10.83
9.36
8.96
9.14
9.45
9.88
9.41
9.01
9.23
9.51
9.91
9.34
8.92
9.19
9.44
9.81
9.32
8.89
9.14
9.42
9.81
9.29
8.85
9.14
9.41
9.75
9.32
8.91
9.16
9.44
9.77
9.32
8.90
9.15
9.44
9.80
9.31
8.86
9.12
9.41
9.82
9.61
9.96
10.20
9.55
9.55
9.39
9.28
9.39
9.29
9.27
9.31
8.76
3.48
8.37
3.08
9.23
3.64
8.75
3.28
8.82
3.29
8.85
3.29
8.73
3.39
8.79
3.36
8.77
3.38
8.72
3.41
8.74
3.39
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 11
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 15
Corporate bonds
Seasoned issues 16
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility
bonds 17
MEMO: Dividend/price ratio 18
39
Preferred stocks
40
Common stocks
1. Weekly, monthly and annual figures are averages of al) calendar days,
where the rate for a weekend or holiday is taken to be the rate prevailing on the
preceding business day. The daily rate is the average of the rates on a given day
weighted by the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than in an investment
yield basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
A25
Selected Statistics
1989
Indicator
1986
1987
1988
Mar.
Apr.
May
July
June
Aug.
Sept.
Oct.
Nov.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
Industrial
2
3 Transportation
Utility
4
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)1
136.03
155.85
119.87
71.36
147.19
161.78
195.31
140.52
74.29
146.48
149.97
180.83
134.09
72.22
127.41
164.56
197.58
153.85
87.16
146.14
169.38
204.81
164.32
79.69
143.26
175.30
211.81
169.05
84.21
146.82
180.76
216.75
173.47
87.95
154.08
185.15
221.74
179.32
90.40
157.78
192.93
231.32
197.53
92.90
164.86
193.02
230.86
202.02
93.44
165.51
192.49
229.40
190.36
94.67
166.55
188.50
224.38
174.26
94.95
160.89
236.39
287.00
265.88
292.71
302.25
313.93
323.73
331.92
346.61
347.33
347.40
340.22
7 American Stock Exchange
(Aug. 31, 1973 = 50?
264.91
316.78
295.08
327.47
336.82
349.50
362.73
368.52
379.28
382.75
383.63
371.92
141,020
11,846
188,922
13,832
161,386
9,955
159,024
11,395
161,863
11,529
171,495
11,699
180,680
13,519
162,501
11,702
171,683
14,538
151,752
12,631
182,394
n.a.
144,389
n.a.
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers3
36,840
31,990
32,740
32,130
32,610
33,140
34,730
34,360
33,940
35,020
35,110
34,630
Free credit balances at brokers4
11 Margin-account 5
12 Cash-account
4,880
19,000
4,750
15,640
5,660
16,595
5,345
16,045
5,450
16,125
5,250
15,965
6,900
19,080
5,420
16,345
5,580
16,015
5,680
15,310
6,000
16,340
5,815
16,345
Margin requirements (percent of market value and effective date) 6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June i , 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 1990
1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1989
1988
Account
1986
1987
Dec.
Jan.
Mar.
Feb.
Apr.
May
June
July'
Aug.
Sept.
SAIF-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed
securities
Contra-assets to
4
mortgage assets 1 .
5 Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage loans .
8 Cash and investment
securities
9 Other 3
1,340,502 1,345,36? 1,346,582' 1,338,557' 1,331,988
1,250,855
1,350,500
1,337,382
1,339,115
697,451
721,593
764,513
767,260
767,603
769,398
773,383'
774,354'
772,695'
771,693
770,024'
764,718
158,193
201,828
214,587
211,308
213,090
215,203
216,172'
216,298'
211,260'
204,311
195,252'
188,396
41,799
23,683
51,622
42,344
23,163
57,902
37,950
33,889
61,922
37,157
32,974
61,998
37,013
32,955
61,981
37,842
32,866
61,402
37,790'
32,807'
61,739
37,497
33,003'
61,879
37,592'
33,094'
60,773'
37,210
33,213
61,074
36,77c
32,002'
60,976'
36,218
32,886
60,429
3,041
3,467
3,056
2,840
2,923
3,074
2,896'
2,913'
164,844
112,898
169,717
122,462
186,986
129,610
178,813
125,026
177,178
126,243
177,094
125,455
175,895
126,053'
174,293
127,166'
10 Liabilities and net worth . 1,163,851
1,250,855
1,350,500
1,337,382
1,339,115
890,664
196,929
100,025
96,904
23,975
52,282
932,616
249,917
116,363
133,554
21,941
46,382
971,700
299,400
134,168
165,232
24,216
55,185
963,820
299,415
135,712
163,703
29,751
58,882
957,358
305,675
140,089
165,586
31,749
58,962
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
1,318,092' 1,302,066
1,163,851
3,145
175,281'
126,191'
3,165
3,127'
3,089
175,255
126,818
171,664'
127,071'
169,754
125,190
1,340,502 1,345,362' 1,346,582' 1,338,557' 1,331,988
956,663
312,988
146,007
166,981
29,593
57,113
954,495
318,669
148,000
170,669
31,642'
56,085'
955,566
318,369
146,520
171,849
33,599
54,597'
960,072'
312,062
144,217
167,845
29,865'
52,725'
963,158
301,581
141,875
159,706
31,889
50,904
1,318,092' 1,302,066
960,284'
289,631
138,331
151,300
33,802'
49,929'
958,947
281,474
133,633
147,841
29,832
48,036
SAIF-insured federal savings banks
17 Assets
210,562
284,270
425,983
423,846
432,675
443,167r
455,143'
469,939'
495,739'
507,007
504,175
501,136
18 Mortgages
19 Mortgage-backed
securities
Contra-assets to
20
mortgage assets 1 .
21 Commercial loans
22 Consumer loans
Contra-assets to non23
mortgage loans .
24 Finance leases plus
interest
25 Cash and investment . . .
26 Other
113,638
161,926
227,869
234,591
238,415
241,076'
246,678'
253,886'
273,232'
281,562
282,006
279,698
29,766
45,826
64,957
62,773
65,896
68,086'
69,964'
73,963'
73,943'
74,341
72,082
72,444
n.a.
n.a.
13,180
9,100
6,504
17,696
13,140
16,731
24,222
12,258
16,172
25,033
12,685
16,320
25,977
12,896'
16,313'
26,096'
13,049'
16,498
26,767
13,227'
16,935
27,956
13,662'
18,014
28,157'
13,972
18,280
28,967
13,859
18,169
28,985
13,814
18,195
28,766
678
889
814
857
977'
888'
976'
980
987
1,029
591
35,347
24,069
880
61,029
35,428
907
57,434
33,954
946
57,986
34,664
1,011
60,272'
34,964'
1,047
61,278'
37,333'
1,072
62,002
38,021'
1,083
65,778'
39,644'
1,088
66,068
40,327
1,075
65,109
40,521
1,092
64,232
40,680
27 Liabilities and net worth .
210,562
284,270
425,983
423,846
432,675
443,167'
455,143'
469,939'
495,739'
507,007
504,175
501,136
28
29
30
31
32
33
157,872
37,329
19,897
17,432
4,263
11,098
203,196
60,716
29,617
31,099
5,324
15,034
298,197
99,286
46,265
53,021
8,075
20,235
298,515
98,304
46,470
51,834
8,270
21,625
301,770
102,902
48,951
53,951
8,884
22,700
307,58c
107,179'
51,532
55,647'
8,649'
23,090'
315,725'
110,004'
53,5^
56,485
9,306'
23,404'
324,369
114,854'
55,463'
59,391
10,174'
23,926'
342,145'
121,895'
58,505'
63,390
9,825'
25,677'
352,547
121,195
59,781
61,414
10,697
26,253
352,099
117,970
59,189
58,781
11,443
26,357
353,462
115,628
57,941
57,687
9,905
26,140
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n.a.
n.a.
n.a.
19,034
863
Financial Markets
A27
1.37—Continued
1988
Account
1986
1989
1987
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
Sept.
Credit unions 5
34 Total assets/liabilities
and capital
35
36
Federal
State
37 Loans outstanding
Federal
38
State
39
40 Savings
41
Federal
State
42
147,726
174,593
175,027
176,270
178,175
177,417
178,812
180,664
179,029
180,035
181,812
95,483
52,243
114,566
60,027
114,909
60,118
115,543
60,727
117,555
60,620
115,416
62,001
116,705
62,107
117,632
63,032
117,475
61,554
117,463
62,572
118,746
63,066
113,191
73,766
39,425
159,010
104,431
54,579
114,012
74,083
39,927
159,106
104,629
54,477
113,880
73,917
39,963
161,073
105,262
55,811
114,572
74,395
40,177
164,322
107,368
56,954
115,249
75,003
40,246
161,388
105,208
56,180
116,947
76,052
40,895
162,134
105,787
56,347
119,101
77,729
41,372
164,415
106,984
57,431
119,720
78,472
41,248
162,405
106,266
56,139
120,577
78,946
41,631
162,754
106,038
56,716
122,522
80,548
41,874
164,050
106,633
57,417
n.a.
n.a.
86,137
55,304
30,833
134,327
87,954
46,373
n a.
Life insurance companies
43 Assets
44
45
46
47
48
49
50
51
52
53
54
Securities
Government
United States 6
State ami local
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
937,551
84,640
59,033
11,659
13,948
n.a.
401,943
n.a.
193,842
31,615
54,055
80,592
1,044,459 1,157,140
1,176,042
1,186,208
1,199,125
1,209,242
1,221,332
1,232,195
1,247,341
84,051r
58,564r
9,136'
16,351'
660,416
556,043'
104,373
232,863'
37,371'
54,236'
93,358'
84,042
58,473
8,918
16,651
667,026
560,385
106,641
232,941
37,453
54,517
98,063
84,190
58,509
8,817
16,864
678,541
571,365
107,176
233,556
37,603
54,738
97,580
84,485
58,417
8,860
17,208
687,777
579,232
108,545
234,632
37,842
54,921
99,468
82,873
57,127
8,911
16,835
697,703
587,889
109,814
235,312
37,976
55,201
100,173
83,847
57,790
8,953
17,104
706,960
595,500
111,460
236,651
38,598
55,525
99,751
84,564
57,817
9,036
17,711
714,398
601,786
112,612
237,444
38,190
55,746
101,853
84,438
57,698
9,061
17,679
726,599
606,686
119,913
237,865
38,622
55,812
104,005
84,426
57,078
10,681
16,667
n.a.
472,684
n.a.
203,545
34,172
53,626
89,586
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.
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."
As of June 1989 Savings bank data are no longer available.
A28
Domestic Financial Statistics • February 1990
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1987
Fiscal
year
1988'
Fiscal
year
1989
1989
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
10
11
12
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-)),
2
Other
July
Aug.
Sept.
Oct.
Nov.
108,249'
84,043'
24,206
100,460'
83,927'
16,534
7,789
116
7,673
66,191'
45,673'
20,518
84,430'
66,624'
17,806
-18,239
-20,951
2,712
76,161'
57,156'
19,004
98,31c
79,218'
19,092
-22,150
-22,062
-88
99,233
75,711
23,522
105,299'
86,548'
18,750
-6,066'
-10,837'
4,771
68,426
50,122
18,304
94,515
75,096
19,419
-26,089
-24,974
-1,115
71,213
51,989
19,223
100,172
80,794
19,378
-28,959
-28,804
-155
854,143
640,741
213,402
1,003,804'
809,972'
193,832
-149,661'
-169,23T
19,570
908,166
666,675
241,491
1,063,318
860,626
202,691
-155,151
-193,951
38,800
990,789
727,123
263,666
1,142,777'
931,556'
211,221
-151,988'
-204,433'
52,445
. 151,717r
166,139
140,156'
1,098
-3,962
35,854
6,618'
36,690
19,790
—5,052
2,996'
-7,963
-3,025
3,425
8,407'
-11,649
2,762
21,564
636
-3,235
-10,469
-15,589
14,977'
-2,513
-8,088
21,772
-12,603
36,436
9,120
27,316
44,398
13,024
31,375
40,973
13,452
27,521
43,713
12,154
31,560
22,149
5,312
16,837
25,384
6,652
18,732
40,973
13,452
27,521
43,486
13,124
30,362
21,715
5,501
16,214
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1988
Fiscal
year
1989
1987
1988
1989
H2
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
1 All sources
908,166
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund
Nonwithheld
5
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
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
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
990,789
421,525
475,724
449,394
527,574
99,233
68,426
71,213
401,181
341,435
33
132,199
72,487
445,690
361,386
32
154,839
70,567
192,575
170,203
4
31,223
8,853
207,659
169,300
28
101,614
63,283
200,300
179,600
4
29,880
9,186
233,572
174,230
28
121,563
62,251
45,026
28,120
1
18,943
2,038
35,493
32,751
0
3,684
943
34,448
34,439
0
1,459
1,450
109,683
15,487
117,015
13,723
52,821
7,119
58,002
8,706
56,409
7,250
61,585
7,259
20,085
655
3,279
2,549
3,381
996
334,335
359,416
143,755
181,058
157,603
200,127
29,259
24,308
26,791
305,093
332,859
130,388
164,412
144,983
184,569
29,632
23,100
24,303
17,691
24,584
4,659
18,405
22,011
4,547
1,889
10,977
2,390
14,839
14,363
2,284
3,032
10,359
2,262
16,371
13,279
2,277
2,540
-796
424
0
859
350
140
2,088
401
35,540
15,41 r
7,594
19,909
34,386
16,334'
8,745
22,927
17,680
7,806
3,610
10,399
16,440
7,522
3,863
9,950
19,299
8,107
4,054
10,873
16,814
7,918
4,583
10,235
2,428
1,352
631
1,107
2,970
1,493
835
2,598
2,939
1,421
693
2,535
1,063,318'
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
1,142,777'
532,652'
512,856'
552,801'
565,524
105,299
94,515
100,172
290,361
10,471
10,841
2,297
14,625'
17,210
303,551
9,596
12,891
3,745
16,084
16,948
146,995
4,487
5,469
1,468
7,590
14,640
143,080
7,150
5,361
555
6,776
7,872
150,496
2,636
5,852
1,966
9,144
6,911
148,098
6,605
6,238
2,221
7,022
9,619
28,641
868
1,190
-182
1,423
-61
19,930
2,117
1,342
363
1,975
904
25,234
495
1,155
-170
2,064
1,967
18,828'
27,272
5,294
27,716'
27,623
5,755
3,852
14,096
2,075
5,951
12,700
2,765
19,836
14,922
2,690
4,129
13,035
1,833
10,003'
2,348
964
5,496
2,618
790
2,030
2,584
1,100
31,938
35,697
15,592
15,451
16,152
18,083
2,937
3,251
3,194
29 Health
30 Social security and medicare
31 Income security
44,490
297,828
129,332
48,391
317,506
136,765
20,750
158,469
61,201
22,643
135,322
65,555
23,360
149,017
64,978
24,078
162,195
70,937
3,613
26,909
12,126
4,511
27,143
9,711
4,136
27,337
11,456
32
33
34
35
36
37
29,406'
8,436'
9,518'
1,816
151,748
-36,967
30,066
9,396
8,940
n.a.
169,314
-37,212
14,956
4,105
3,560
1,175
71,933
-17,684
13,241
4,379
4,337
448
76,098
-17,766
15,797
4,351
5,137
0
78,317
-18,771
14,891
4,801
3,858
0
86,009
-18,131
3,628
836
997
n.a.
13,684
-4,625
1,503
842
842
n.a.
14,124
-2,945
2,627
771
1,437
n.a.
15,526
-2,771
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 1990.
A30
Domestic Financial Statistics • February 1990
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1987
1989
1988
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
2,354.3
2,435.2
2,493.2
2,555.1
2,614.6
2,707.3
2,763.6
2,824.0
2,881.1
2 Public debt securities
3
Held by public
4
Held by agencies
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
2,602.2
2,051.7
550.4
2,684.4
2,095.2
589.2
2,740.9
2,133.4
607.5
2,799.9
2,142.1
657.8
2,857.4
2,180.7 r
676.7 r
4.0
3.0
1.0
3.5
2.7
.8
5.6
5.1
.6
7.4
7.0
.5
12.4
12.2
.2
22.9
22.6
.3
22.7
22.3
.4
24.0
23.6
.5
23.7
23.5 r
2,336.0
2,417.4
2,472.6
2,532.2
2,586.9
2,669.1
2,725.6
2,784.6
2,829.8
9 Public debt securities
10 Other debt 1
2,334.7
1.3
2,416.3
1.1
2,472.1
.5
2,532.1
.1
2,586.7
.1
2,668.9
.2
2,725.5
.2
2,784.3
.2
2,829.5
.3
11 MEMO: Statutory debt limit
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,800.0
2,870.0
5 Agency securities
6
Held by public
7
Held by agencies
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.
.R
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
1988
Type and holder
1985
1986
1987
1989
1988
Q4
1 Total gross public debt
By type
2 Interest-bearing debt
3 Marketable
4
Bills
5
6
Bonds
7 Nonmarketable 1
8
State and local government series
9
Foreign issues
10
Government
11
Public
12
Savings bonds and notes
13
Government account series 3
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
Other miscellaneous investors
Q2
Q3
1,945.9
2,214.8
2,431.7
2,684.4
2,684.4
2,740.9
2,799.9
2,857.4
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
2,212.0
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
90.6
386.9
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
2,738.3
1,871.7
417.0
1,121.4
318.4
866.6
154.4
6.7
6.7
.0
110.4
594.7
2,797.4
1,877.3
397.1
1,137.2
328.0
920.1
156.0
6.2
6.2
.0
112.3
645.2
2,836.3
1,892.8
406.6
1,133.2
338.0
943.5
158.6
6.8
6.8
.0
114.0
663.7
2.5
2.8
2.8
21.3
21.3
2.6
2.5
21.1
348.9
181.3
1,417.2
198.2
25.1
78.5
59.0
226.7
403.1
211.3
1,602.0
203.5
28.0
105.6
68.8
262.8
477.6
222.6
1,745.2
201.5
14.6
104.9
84.6
284.6
589.2
238.4
1,852.8
193.8'
18.8
111.2
86.5
313.6
589.2
238.4
1,852.8
193.8r
18.8
111.2
86.5
313.6
607.5
228.6
1,900.2
200.9'
13.0
112.5
89.2
320.4R
657.8
231.8
1,905.4
206.7
11.6
n.a.
90.7
322.1
676.7
220.6
1,954.6
n.a.
12.4
n.a.
n.a.
n.a.
101.1
70.2 r
299.7r
584.0'
109.6
77.0'
362. l r
587.2''
109.6
77.0 r
362.l r
587.2 r
112.2
82.9
375.6 r
593.5
114.0
89.1
367.9 r
n.a.
115.7
n.a.
393.5
n.a.
79.8
75.0
224.8 r
450. r
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.
Ql
92.3
70.4 r
263.4R
506.6 r
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
1989
Item
1986
1987
1989
1988
Sept.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Immediate delivery 2
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
Oct.
Nov.
Oct. 25
Nov. 1
Nov. 8
Nov. 15
Nov. 22
Nov. 29
95,444
110,050
101,623
100,270
130,805
115,682
126,066
111,604
122,123
136,213
102,489
102,967
34,247
2,115
24,667
20,455
13,961
37,924
3,271
27,918
24,014
16,923
29,387
3,426
27,777
24,939
16,093
27,668
2,620
31,526
24,719
13,737
35,891
3,313
39,957
34,361
17,283
32,613
2,808
38,424
26,200
15,637
35,763
3,476
39,069
30,359
17,400
37,597
3,746
29,302
25,618
15,342
31,629
2,567
38,979
32,898
16,051
37,609
2,985
40,713
32,634
22,272
30,233
2,892
38,594
17,022
13,747
31,010
2,655
38,544
20,540
10,219
3,669
2,936
2,761
2,794
4,296
3,500
4,583
4,470
3,800
4,368
2,754
2,607
49,558
42,217
16,747
4,355
3,272
16,660
61,539
45,575
18,084
4,112
2,965
17,135
59,844
39,019
15,903
3,369
2,316
22,927
60,193
37,283
19,193
2,677
2,086
29,145
77,566
48,943
20,978
2,422
2,169
34,167r
66,549
45,633
20,031
2,183
1,994
31,188
75,291
46,192
21,123
2,016
2,063
32,331
65,793
41,341
18,763
2,106
2,239
33,197
71,674
46,648
21,646
2,151
2,068
32,338
76,337
55,508
23,174
2,123
1,893
30,032
59,482
40,254
19,816
2,273
1,903
32,277
59,608
40,753
15,997
2,154
2,106
27,286
3,311
7,175
16
3,233
8,963
5
2,627
9,695
1
2,645
8,796
38
2,797
10,326
20
1,898
9,308
7
3,363
10,42CT
6
2,281
9,047
1
2,133
9,374
15
1,786
10,779
5
1,596
10,303
10
2,254
6,532
0
1,876
7,830
2,029
9,290
2,095
8,008
2,117r
8,614
2,168
10,561
1,993
10,904
2,593
9,105
954
8,708
1,373
13,800
3,021
12,563
1,450
10,750
2,373
6,150
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 1990
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1989
Item
1986
1987
1989
1988
Sept.
Oct/
Nov.
Nov. 1
Nov. 8
Nov. 15
Nov. 22
Nov. 29
Positions
1
Net immediate 2
U.S. Treasury securities
12,912
-6,216
-22,765
12,193
10,666
17,316
15,935
12,067
17,498
22,773
17,038
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
12,761
3,705
9,146
-9,505
-3,197
4,317
1,557
649
-6,564
-6,174
2,238
-2,236
-3,020
-9,663
-10,084
20,418
197
5,302
-8,630
-5,093
19,160
-1,646
9,666
-10,499
-6,014
22,626
-1,276
10,593
-8,988
-5,639
20,148
-1,166
13,959
-10,210
-6,795
18,194
-942
10,388
-10,718
-4,855
23,518
-1,336
12,131
-10,110
-6,706
25,606
-1,780
10,047
-6,125
-4,975
24,464
-1,091
8,875
-9,368
-5,843
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
32,984
10,485
5,526
8,089
31,911
8,188
3,660
7,496
28,230
7,300
2,486
6,152
36,097
7,065
2,154
8,258
36,269
7,124
2,105
9,055
35,424
7,001
1,925
7,649
36,707
7,768
2,431
8,839
36,667
7,414
2,072
7,447
38,916
6,963
1,855
7,528
34,776
6,732
1,716
7,420
31,271
6,580
1,830
7,583
-18,059
3,473
-153
-3,373
5,988
-95
-2,210
6,224
0
-6,106
-4,797
-26
-7,459
-9,302
68
-9,463
-11,368
25
-10,628
-11,645
102
-9,722
-11,305
86
-8,940
-12,332
6
-8,391
-11,078
-9
-10,425
-10,788
1
-2,144
-11,840
-1,211
-18,817
346
-16,348
-607
-17,478
1,380
-15,367
-120
-17,316
1,746
-16,519
402
-18,061
-1,456
-21,090
-1,012
-15,673
1,345
-14,419
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
98,913
108,607
126,709
148,288
136,327
177,477
157,149
212,378
164,478
233,888
146,101
231,972
166,288
241,762
159,868
261,548
162,951
224,526
127,706
256,670
159,062
229,580
141,823
102,397
170,763
121,270
172,695
137,056
228,923
172,069
242,486
193,445
216,140
209,082
250,980
208,277
235,012
223,068
254,482
190,573
169,829
269,021
241,496
195,645
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 book" 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
1989
Agency
1985
1984
1986
1987
June
Sept.
Oct.
Federal agencies
Defense Department'
Export-Import Bank •
Federal Housing Administration 4
Government National Mortgage Association participation
certificates 5
Postal Service
Tennessee Valley Authority
United States Railway Association
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"
293,905
307,361
341,386
406,837
411,874
411,979
408,591
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
37,981
13
11,978
183
36,404
7
11,014
218
36,453
7
11,014
245
36,453
7
11,014
255
36,584
7
10,990
295
36,378
7
10,990
301
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
0
6,445
18,720
0
0
6,445
18,742
0
0
6,445
18,732
0
0
6,445
18,847
0
0
6,445
18,635
0
237,012
65,085
10,270
83,720
72,192
5,745
0
0
257,515
74,447
11,926
93,896
68,851
8,395
0
0
270,553
88,752
13,589
93,563
62,478
12,171
0
0
303,405
115,725
17,645
97,057
55,275
16,503
1,200
0
370,433
153,892
25,243
106,308
52,387
24,256
7,500
847
375,421
151,487
25,690
109,926
53,158
26,813
7,500
847
375,526
149,269
27,165
110,155
53,511
27,079
7,500
847
372,007
143,578
26,738
111,507
54,041
27,126
8,170
847
145,217
Federal and federally sponsored agencies
10
11
12
N
14
15
16
17
Aug.
271,564
1
2
3
4
5
6
7
8
9
July
n.a.
153,373
157,510
152,417
139,568
138,814
137,690
136,092
135,841
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
11,008
6,195
4,910
17,340
0
11,008
6,195
4,910
17,362
0
11,008
6,195
4,910
17,352
0
10,984
6,195
4,910
17,467
0
10,984
6,195
4,880
17,255
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
55,586
19,236
25,293
54,911
19,257
25,171
54,611
19,270
24,344
53,311
19,275
23,950
53,311
19,233
23,983
n.a.
140,854
25,097
111,776
54,050
n.a.
8,170
847
MEMO
18
Federal Financing Bank debt12
19
20
21
22
23
Lending to federal and federally sponsored
Export-Import Bank 3
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 1990
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1989
Type of issue or issuer,
or use
1986
1987
1988
Apr.
1 All issues, new and refunding
1
May
June
July
Aug.
Sept.
Oct/
Nov.
147,011
102,407
114,522
7,464
7,435
13,775
8,735
9,824
10,818
9,075
8,653
46,346
100,664
30,589
71,818
30,312
84,210
2,301
5,163
2,342
5,093
4,960
8,815
3,789
4,946
2,199
7,625
3,500
7,318
3,273
5,802
3,654
4,999
Type of issuer
4 State
5 Special district and statutory authority 2
6 Municipalities, counties, and townships
14,474
89,997
42,541
10,102
65,460
26,845
8,830
74,409
31,193
1,407
4,238
1,819
392
4,979
2,064
1,989
8,033
3,753
970
4,868
2,897
694
7,027
2,103
764
7,567
2,487
1,330
4,770
2,975
798
4,930
2,925
7 Issues for new capital, total
83,492
56,789
79,665
6,061
5,938
10,078
6,816
6,612
7,470
7,266
7,691
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
12,307
7,246
14,594
11,353
6,190
31,802
9,524
3,677
7,912
11,106
7,474
18,020
15,021
6,825
8,4%
19,027
5,624
24,672
1,225
743
759
1,048
374
1,912
1,024
748
467
1,376
361
1,962
2,678
576
1,058
1,509
329
3,928
998
500
551
1,632
440
2,695
1,302
556
813
1,553
447
1,941
1,639
976
622
1,242
381
2,610
1,006
280
718
1,803
345
3,114
989
669
1,775
1,256
280
2,722
Type of issue
2 General obligation
3 Revenue
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.
1.46 NEW SECURITY ISSUES U.S. Corporations
Millions of dollars
Type of issue or issuer,
or use
1989
1986
1987
1988
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
424,737
392,165'
408,843
26,191'
14,405'
21,471'
24,450'
17,658^
14,822
14,208r
24,180
356,304
325,657r
351,042
25,577
13,396
19,662
21,622
12,604
12,787
11,935'
20,500
Type of offering
3 Public, domestic
4 Private placement, domestic 3 .
5. Sold abroad
232,742
80,760
42,801
209,279
92,070
24,308'
200,164
127,700
23,178
22,995
n.a.
2,582
11,471
n.a.
1,925
17,756
n.a.
1,906
18,714
n.a.
2,908
11,184
n.a.
1,420
11,971
n.a.
816
10,735'
n.a.
1,200'
19,000
n.a.
1,500
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
90,788
41,909
10,423
30,973
16,441
165,770
61,666
49,327
11,974
23,004
7,340
172,351'
69,573
61,986
9,976
19,318
5,902
184,287
7,456
882
0
153
63
17,023
1,457
843
100
1,695
453
8,848
7,715'
2,162
150
385
122
9,128
3,273
1,628
480
2,936
4
13,302
2,701
1,331
0
1,173
300
7,099
2,627
1,090
423
670
358
7,619
2,102
1,393
0
1,095'
308
7,038'
3,388
1,800
831
1,716
632
12,133
12 Stocks2
68,433
66,508
57,802
614
1,009
1,809
2,828
5,054
2,035
2,273
3,680
Type
13 Preferred
14 Common
15 Private placement 3
11,514
50,316
6,603
10,123
43,225
13,157
6,544
35,911
15,346
0
614
n.a.
495
514
n.a.
306
1,503
n.a.
335
2,493
n.a.
920
4,134
n.a.
1,013
1,023
n.a.
519
1,754
n.a.
570
3,110
n.a.
15,027
10,617
2,427
4,020
1,825
34,517
13,880
12,888
2,439
4,322
1,458
31,521
7,608
8,449
1,535
1,898
515
37,798
130
26
53
108
0
297
155
282
169
0
93
310
299
115
39
192
280
884
630
512
0
125
25
1,536
593
438
0
25
29
3,969
393
343
0
137
20
1,020
193
155
0
709
0
1,195
190
728
50
465
0
2,214
1 All issues
2 Bonds
6
7
8
9
10
11
16
17
18
19
20
21
2
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
Securities
1.47 OPEN-END INVESTMENT COMPANIES
Market
and Corporate
Finance
A35
Net Sales and Asset Position
Millions of dollars
1989
1987
Item
1988
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
INVESTMENT COMPANIES1
1 Sales of own shares2
381,260
271,237
23,149
25,496
24,661
25,817
25,330
26,800
23,911
25,300
2 Redemptions of own shares 3
3 Net sales
314,252
67,008
267,451
3,786
24,135
-986
26,183
-687
22,483
2,178
22,562
3,255
20,053
5,277
22,262
4,538
21,499
2,412
21,702
3,598
4 Assets4
453,842
472,297
483,067
497,329
509,781
515,814
535,910
539,553
539,814
534,891
5 Cash position 5
6 Other
38,006
415,836
45,090
427,207
46,262
436,805
48,788
448,541
49,177
460,604
48,428
467,386
47,888
488,022
47,209
492,344
47,163
492,651
45,923
488,968
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
SOURCE. Survey of Current Business (Department of Commerce).
1. Data on sales and redemptions exclude money market mutual funds but
include limited maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited maturity municipal bond funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
1986
Account
1987
1988
1989
1988
Q4
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
282.1
Q1
Q2
Q3
Q4
Ql
Q2
Q3'
221.6
106.3
115.3
91.3
24.0
7 Inventory valuation
8 Capital consumption adjustment
298.7
266.7
124.7
142.0
98.7
43.3
328.6
306.8
137.9
168.9
110.4
58.5
308.2
276.2
127.3
148.9
102.8
46.1
318.1
288.8
129.0
159.9
105.7
54.2
325.3
305.3
138.4
166.9
108.6
58.3
330.9
314.4
141.2
173.2
112.2
61.1
340.2
318.8
143.2
175.6
115.2
60.4
316.3
318.0
144.4
173.6
118.5
55.1
307.8
296.0
134.9
161.1
120.9
40.2
295.2
275.0
122.6
152.4
123.3
29.1
6.7
53.8
2
3
4
5
6
-18.9
50.9
-25.0
46.8
-20.4
52.4
-20.7
49.9
-28.8
48.9
-30.4
46.9
-20.1
41.5
-38.3
36.6
-20.5
32.3
-6.3
26.5
ATrade and services are no longer being reported separately. They are included in Commercial and other, line 10.
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
Industry
1987
1988
1989
1990
1989'
Q2
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
Q4
Ql
Q2
Q3
Q41
Ql 1
389.67
430.76
475.18
427.54
435.61
442.11
459.47
470.86
484.93
485.45
503.46
71.01
74.88
78.30
88.01
83.05
100.11
77.38
85.24
79.15
89.62
80.56
92.76
81.26
93.96
82.97
98.57
85.66
102.00
82.30
105.90
86.84
106.92
11.39
12.66
12.50
13.15
12.53
12.38
12.15
12.70
12.59
12.58
12.23
5.92
6.53
6.40
7.06
7.28
7.00
8.12
9.50
7.62
6.99
6.91
7.05
6.84
8.09
7.08
7.45
7.69
6.89
8.02
7.04
8.07
7.37
9.49
7.40
8.16
12.48
7.89
8.93
8.99
7.13
7.91
10.12
8.58
31.63
13.25
168.65
32.03
14.64
183.76
33.96
16.10
204.22
31.31
14.49
185.21
32.07
14.61
185.61
33.69
15.04
185.65
33.69
17.12
198.15
35.34
16.67
200.36
33.73
15.84
206.59
33.07
14.79
211.76
35.47
16.42
218.97
1. Anticipated by business.
2. "Other" consists of construction; wholesale and retail trade; finance and
Q3
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • February 1990
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
1988
Account
1985
1989
1987
1986
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
Accounts receivable, gross 2
Consumer
Business
Real estate
Total
111.9
157.5
28.0
297.4
134.7
173.4
32.6
340.6
141.1
207.4
39.5
388.1
141.5
219.7
41.4
402.6
144.4
224.0
42.5
410.9
146.3
223.3
43.1
412.7
146.2
236.5
43.5
426.2
140.2
243.1
45.4
428.7
144.9
250.5
47.4
442.8
147.2
248.8
48.9
444.9
Less:
5 Reserves for unearned income
6 Reserves for losses
39.2
4.9
41.5
5.8
45.3
6.8
46.8
6.8
46.3
6.8
48.4
7.1
50.0
7.3
50.9
7.4
52.1
7.5
53.7
7.8
7 Accounts receivable, net
8 All other
253.3
45.3
293.3
58.6
336.0
58.3
348.9
60.1
357.8
70.5
357.3
68.7
368.9
72.4
370.4
75.1
383.2
81.5
383.5
83.1
9 Total assets
298.6
351.9
394.2
409.1
428.3
426.0
441.3
445.5
464.6
466.6
18.0
99.2
18.6
117.8
16.4
128.4
14.9
125.2
13.3
131.6
11.9
129.4
15.4
142.0
11.6
147.9
12.2
149.2
12.3
147.4
12.7
94.4
n.a.
n.a.
41.5
32.8
17.5
117.5
n.a.
n.a.
44.1
36.4
28.0
137.1
n.a.
n.a.
52.8
31.5
n.a.
n.a.
49.0
132.4
56.1
31.5
n.a.
n.a.
51.4
139.8
58.7
33.5
n.a.
n.a.
51.5
139.3
58.9
34.9
n.a.
n.a.
50.6
137.9
59.8
35.6
n.a.
n.a.
56.8
134.5
58.1
36.6
n.a.
n.a.
59.7
141.3
63.5
38.7
n.a.
n.a.
60.4
146.1
60.4
40.0
298.6
351.9
394.2
409.1
428.3
426.0
441.3
445.5
464.6
466.6
1
2
3
4
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12
Other short-term
13
Long-term
14
Due to parent
15
Not elsewhere classified
16 All other liabilities
17 Capital, surplus, and undivided profits
18 Total liabilities and capital
1. Components may not add to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
2. Excludes pools of securitized assets.
Business Credit Outstanding and Net Change1
Millions of dollars, seasonally adjusted
1989
Type
1986
1987
1988
May
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets 2
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets 2
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
June
July
Aug.
Sept.
Oct.
172,060
205,810
234,529
245,861
249,322
251,126
253,822
258,851
259,083
26,015
23,112
n.a.
35,782
25,170
n.a.
36,548
28,298
n.a.
38,816
27,638
846
39,042
27,773
807
39,183
28,128
769
39,355
29,039
793
39,258
29,639
755
38,952
29,594
715
23,010
5,348
7,033
n.a.
30,507
5,600
8,342
n.a.
33,300
5,983
9,341
n.a.
34,534
6,0%
9,929
0
34,021
6,165
9,862
0
33,233
6,244
10,001
0
33,566
6,497
9,990
0
37,243
6,602
9,957
0
35,210
6,843
9,927
0
19,827
38,179
n.a.
21,952
43,335
n.a.
24,673
57,455
n.a.
26,011
61,022
824
26,515
63,370
796
26,701
64,086
887
26,739
64,186
990
26,865
65,170
948
27,442
66,787
1,199
15,978
13,557
18,078
17,043
17,796
21,134
18,772
21,371
19,302
21,669
19,989
21,904
20,098
22,571
19,611
22,804
19,487
22,926
Net change (during period)
14 Total
15
16
17
18
19
20
21
22
23
24
25
26
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets 2
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets 2
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
15,763
33,750
22,662
978
3,462
1,803
2,697
5,029
232
5,355
629
n.a.
9,767
2,058
n.a.
766
1,384
n.a.
401
-1,152
29
226
135
-39
141
354
-38
172
911
24
-97
600
-38
-305
-45
-40
-978
780
224
n.a.
7,497
252
1,309
n.a.
2,793
226
999
n.a.
151
-56
78
0
-513
69
-68
0
-788
79
139
0
332
253
-11
0
3,677
104
-32
0
-2,033
242
-30
0
3,552
3,411
n.a.
2,125
5,156
n.a.
2,721
9,962
n.a.
467
776
91
504
2,348
-28
187
716
91
38
99
103
126
984
-42
577
1,618
251
213
2,576
2,100
3,486
-282
4,091
95
100
530
298
687
235
109
667
-487
234
-124
122
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
2. Data on pools of securitized assets are not seasonally adjusted.
Real Estate
A37
1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1989
Item
1986
1987
1988
May
June
July
Aug.
Sept.
Oct.
Nov.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) ,
Contract rate (percent per year)
Yield (percent per year)
7 OTS series 3
8 HUD series 4
118.1
86.2
75.2
26.6
2.48
9.82
10.26
10.07
137.0
100.5
75.2
27.8
2.26
8.94
150.0
110.5
75.5
28.0
2.19
151.8
112.3
75.3
28.3
8.81
9.82
9.31
10.17
9.18
10.30
10.18
10.43
10.42
10.04
10.16
10.49
9.83
10.55
10.08
10.11
9.75
2.12
150.5
111.0
75.2
27.8
1.91
10.09
160.8
119.4
75.6
28.3
2.31
9.83
160.6
10.48
9.70
10.22
10.24r
10.04
10.11
10.05
9.61
9.55
9.95
9.48
9.94
9.47
9.73
9.21
174.5
125.3
73.8
28.6
2.42
10.06
118.6
75.3
28.4 r
2.14r
9.87r
153.1
111.3
73.2
27.3
1.95
9.77
9.79
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)
10 GNMA securities 6
9.91
9.30
9.43
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
98,048
29,683
68,365
95,030
21,660
73,370
101,329
19,762
81,567
102,564
19,612
82,952
103,309
19,586
83,723
104,421
19,630
84,791
105,896
19,589
86,307
107,052
19,608
87,444
108,180
19,843
88,337
109,076
19,953
89,123
Mortgage transactions (during period)
14 Purchases
30,826
20,531
23,110
1,419
1,862
2,091
2,724
2,223
2,267
2,376
Mortgage
commitments7
15 Contracted (during period)
16 Outstanding (end of period)
32,987
3,386
25,415
4,886
23,435
2,148
1,626
4,673
2,573
5,236
2,513
5,648
2,842
5,755
2,328
5,865
2,963
6,548
2,536
6,645
13,517
746
12,771
12,802
686
12,116
15,105
620
14,485
19,443
586
18,857
20,121
585
19,535
20,533
585
19,948
21,024
589
20,435
20,650
540
20,110
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage transactions (during period)
20 Purchases
21 Sales
103,474
100,236
76,845
75,082
44,077
39,780
5,141
4,474
7,392
6,551
5,720
5,180
7,283
6,650
7,889
8,050
n.a.
n.a.
n.a.
n.a.
Mortgage
commitments9
22 Contracted (during period)
110,855
71,467
66,026
5,186
7,948
6,608
5,705
7,708
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of periodf
17 Total
18 FHA/VA
19 Conventional
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. 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 FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
A38
DomesticNonfinancialStatistics • February 1990
1.54 MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1988
Type of holder, and type of property
1986
1987
1988
Q2
Q3
Q4
Q1
Q2P
1 AU holders.
2,618,324
2,977,293
3,268,285
3,120,536
3,189,132
3,268,285
3,328,824
3,391,259
2
3
4
5
1,719,673
247,831
555,039
95,781
1,959,607
273,954
654,863
88,869
2,189,475
290,355
701,652
86,803
2,070,829
280,239
681,660
87,808
2,134,225
284,675
683,207
87,025
2,189,475
290,355
701,652
86,803
2,230,006
296,139
716,695
85,984
2,281,317
297,860
725,341
86,741
1,507,944
502,534
235,814
31.173
222.799
12,748
1,704,560
591,369
276,270
33,330
267,340
14.429
1,874,967
669,160
314,283
34,131
305,242
15,504
1,791,714
629,617
296,265
34,225
283,942
15,185
1,833,800
650,799
307,041
33,960
294,398
15,400
1,874,967
669,160
314,283
34,131
305,242
15,504
1,905,052
688,662
324,681
34,172
313,941
15,868
1,932,154
715,049
338,872
34,954
324,878
16,345
777,967
559,067
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
860,467
602,408
106,359
150,943
929,647
678,263
111,302
139,416
898,742
638,638
107,482
151,870
914,280
665,294
109,287
139,029
929,647
678,263
111,302
139,416
936,091
682,658
112,507
140,255
933,694
684,828
110,009
138,201
' iii,375
13,226
22,524
166,722
9,903
40,349
''232,639
15,284
23,562
184,124
9,669
43,521
' 220,870
14,172
23,021
174,086
9,591
42,485
''225,627
14,917
23,139
178,166
9,405
43,094
"232,639
15,284
23,562
184,124
9,669
43,521
234,'910
12,690
24,636
188,073
9,511
45,389
"236,166
12,745
25,103
188,756
9,556
47,251
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
200,570
26
26
198,027
64
51
13
41,836
200,570
26
26
199,847
26
26
201,909
24
24
'"42,018
18,347
8,513
5,343
9,815
199,474
42
24
18
42,767
18,248
8,213
6,288
10,018
8,349
5,300
9,919
'42,018
18,347
8,513
5,343
9,815
4 i ,780
18,347
8,615
5,101
9,717
40,711
18,391
8,778
3,885
9,657
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
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
5,673
2,564
3,109
102,368
95,404
6,964
33,048
1,945
31,103
15,576
13,631
1,945
5,666
2,432
3,234
102,453
95,417
7,036
32,566
1,917
30,649
15,442
13,322
2,120
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
6,075
2,550
3,525
101,991
94,727
7,264
31,261
1,839
29,422
18,714
16,192
2,522
6,424
2,827
3,597
103,309
95,714
7,595
31,467
1,851
29,616
19,974
17,305
2,669
44 Mortgage pools or trusts
45 Government National Mortgage Association.
1- to 4-family
Multifamily
Federal Home Loan Mortgage Corporation .
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
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
810,887
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
754,045
322,616
314,728
7,888
216,155
209,702
6,453
157,438
153,253
4,185
106
23
782,802
333,177
324,573
8,604
220,684
214,195
6,489
167,170
162,228
4,942
106
27
810,887
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
839,684
348,622
337,563
11,059
234,695
228,389
6,306
188,071
181,352
6,719
96
24
861,827
353,154
341,951
11,203
242,789
236,404
6,385
196,501
188,774
7,727
85
23
132
74
63
61
38
40
41
42
38
41
38
40
34
38
26
36
59 Individuals and others
60
1- to 4-family
61 Multifamily
62 Commercial
63 Farm
341,152
197,868
66,940
53,315
23,029
361,715
201,704
75,458
63,192
21,361
381,861
215,077
78,411
67,489
20,884
375,303
212,017
76,736
65,433
21,117
374,503
209,784
77,502
66,276
20,941
381,861
215,077
78,411
67,489
20,884
384,241
215,379
78,814
69,291
20,757
395,369
225,059
79,840
69,595
20,875
1- to 4-family
Multifamily..
Commercial .
Farm
6 Selected financial institutions .
Commercial banks .
1- to 4-family
Multifamily..
Commercial ..
Farm
Savings institutions
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies4
23 Federal and related agencies
24 Government National Mortgage Association.
25
1- to 4-family
26
Multifamily
27 Farmers Home Administration
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
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
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.
18,268
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA 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. Includes private pools which are not
shown as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
Consumer
Installment
Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1989
Holder, and type of credit
1987
1988
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Amounts outstanding (end of period)
607,721
659,507
687,397
691,162
693,911
698,132
700,849
700,344
703,001
704,371
707,706
282,910
140,281
80,087
40,975
59,851
3,618
n.a.
318,925
145,180
86,118
43,498
62,099
3,687
n.a.
318,423
143,419
87,813
41,052
63,109
3,677
29,903
318,242
143,070
88,514
41,300
62,735
3,682
33,619
320,458
144,378
89,330
41,301
61,919
3,787
32,737
323,363
145,523
89,890
41,323
61,311
3,897
32,826
324,438
146,055
90,073
41,649
59,920
4,017
34,696
323,621
145,488
89,852
41,798
60,092
3,936
35,557
326,135
144,386
90,016
41,989
59,229
3,976
37,270
327,327
144,188
89,892
42,221
59,883
3,886
36,974
330,713
141,273
90,010
42,319
58,912
3,804
40,675
By major type of credit
9 Automobile
10 Commercial banks
11 Credit unions
12 Finance companies
13 Savings institutions
14 Pools of securitized assets
265,976
109,201
40,351
98,195
18,228
n.a.
281,174
123,259
41,326
97,204
19,385
n.a.
288,767
122,983
41,964
88,789
19,464
15,568
288,850
123,062
42,211
89,567
19,231
14,779
289,654
123,878
42,510
90,268
18,866
14,132
290,741
125,118
42,687
90,976
18,566
13,395
290,192
125,592
42,684
91,184
18,032
12,700
288,526
124,881
42,624
90,213
17,972
12,835
288,533
126,597
42,747
89,439
17,603
12,147
287,754
126,759
42,733
88,317
17,990
11,955
288,845
128,255
42,834
84,814
17,699
15,243
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
19 Savings institutions
2.0 Credit unions
21
Pools of securitized assets
153,884
99,119
36,389
3,618
10,367
4,391
n.a.
174,792
117,572
38,692
3,687
10,151
4,691
n.a.
178,570
111,706
36,257
3,677
10,722
4,866
11,342
182,831
112,553
36,489
3,682
10,860
4,947
14,299
184,500
114,130
36,497
3,787
10,918
5,035
14,134
186,502
115,407
36,504
3,897
11,008
5,109
14,578
189,622
115,561
36,814
4,017
10,951
5,187
17,117
191,028
115,967
36,963
3,936
11,176
n.a.
17,795
194,398
117,012
37,134
3,976
11,206
n.a.
19,827
195,302
117,868
37,355
3,886
11,183
n.a.
19,731
1%,339
118,748
37,435
3,804
11,002
n.a.
20,021
26,387
9,220
7,762
9,406
25,744
8,974
7,186
9,583
25,992
8,974
7,308
9,710
24,168
8,844
5,687
9,637
23,993
8,836
5,659
9,498
23,952
8,878
5,684
9,390
23,685
8,847
5,674
9,163
23,630
8,830
5,624
9,176
22,938
8,808
5,100
9,030
22,991
8,788
5,087
9,116
22,%5
8,739
5,272
8,955
161,475
65,370
34,324
35,344
4,586
21,850
n.a.
177,798
69,120
40,790
40,102
4,807
22,981
n.a.
194,068
74,760
47,322
40,983
4,795
23,214
2,993
195,314
73,783
47,816
41,357
4,811
23,006
4,541
195,763
73,614
48,451
41,785
4,804
22,638
4,471
196,936
73,960
48,863
42,094
4,819
22,347
4,853
197,349
74,438
49,197
42,228
4,834
21,773
4,879
197,161
73,944
49,650
42,036
4,835
21,769
4,927
197,132
73,718
49,847
42,025
4,855
21,390
5,2%
198,324
73,912
50,784
41,880
4,866
21,593
5,288
199,557
74,971
51,187
41,848
4,884
21,257
5,411
1 Total
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets 4
77 Mobile home
73
Commercial banks
24
Finance companies
25
Savings institutions
76 Other
77
Commercial banks
78
Finance companies
79
Credit unions
30
Retailers
31
Savings institutions
32 Pools of securitized assets
Net change (during period)
35,674
51,786
5,376
3,765
2,749
4,221
2,717
-505
2,657
1,371
3,335
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets
19,884
6,349
3,853
1,568
3,689
332
n.a.
36,015
4,899
6,031
2,523
2,248
69
n.a.
1,626
1,624
720
67
242
22
1,076
-181
-349
701
247
-375
6
3,716
2,216
1,309
815
2
-815
104
-882
2,904
1,145
560
21
-609
110
89
1,076
532
184
326
-1,390
120
1,870
-817
-567
-222
149
172
-81
861
2,514
-1,102
164
192
-863
39
1,713
1,192
-198
-124
231
654
-89
-296
3,386
-2,915
118
98
-971
-82
3,701
By major type of credit
41 Automobile
Commercial banks
42
Credit unions
43
44
Finance companies
45
Savings institutions
46
Pools of securitized assets
18,663
7,919
1,916
5,639
3,188
n.a.
15,198
14,058
975
-991
1,157
n.a.
2,385
823
257
821
-42
526
82
79
247
778
-233
-789
804
816
300
701
-366
-647
1,087
1,239
177
708
-300
-737
-549
474
-3
208
-533
-695
-1,667
-711
-60
-970
-61
135
7
1,716
123
-775
-369
-688
-779
162
-14
-1,122
387
-192
1,091
1,4%
101
-3,503
-292
3,288
47 Revolving
48
Commercial banks
49 Retailers
50
Gasoline companies
51
Savings institutions
52
Credit unions
53
Pools of securitized assets
16,871
12,188
1,866
332
1,771
715
n.a.
20,908
18,453
2,303
69
-216
300
n.a.
1,854
573
81
22
243
81
853
4,261
848
232
6
138
81
2,957
1,670
1,576
8
104
58
88
-165
2,002
1,277
7
110
90
74
444
3,120
154
310
120
-57
78
2,539
1,406
405
149
-81
225
n.a.
678
3,370
1,045
171
39
30
n.a.
2,032
904
856
221
-89
-22
n.a.
- %
1,036
880
80
-82
-181
n.a.
290
54 Mobile home
Commercial banks
55
56
Finance companies
57
Savings institutions
-968
192
-1,052
-107
-643
-246
-576
177
-44
1
-68
23
-1,824
-131
-1,621
-72
-174
-7
-28
-140
-41
42
25
-108
-267
-31
-10
-227
-56
-18
-50
12
-692
-22
-524
-146
53
-20
-13
86
-26
-49
185
-161
58 Other
59
Commercial banks
60
Finance companies
61
Credit unions
62
Retailers
63
Savings institutions
64
Pools of securitized assets
1,108
-415
1,761
1,221
-297
-1,162
n.a.
16,323
3,750
6,466
4,758
221
1,131
n.a.
1,182
229
871
382
-14
18
-303
1,246
-977
494
374
16
-208
1,548
449
-169
635
428
-7
-368
-70
1,173
346
412
309
15
-291
382
413
478
334
133
16
-574
26
-189
-494
453
-191
0
-5
48
-29
-226
197
-11
21
-379
369
1,192
194
937
-145
11
203
-8
1,233
1,059
403
-33
18
-336
123
33 Total
34
35
36
37
38
39
40
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.
4. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
A40
DomesticNonfinancialStatistics • February 1990
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1989
Item
1986
1988
Apr.
May
June
July
Aug.
Sept.
12.44
15.65
14.35
18.11
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.13
15.45
14.13
18.07
n.a.
n.a.
n.a.
n.a.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 2
48-month new car 3
24-month personal
120-month mobile home 3
Credit card
Auto finance companies
New car
Used car
OTHER TERMS
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
18.26
10.45
14.22
13.38
17.92
10.85
14.68
13.54
17.78
n.a.
n.a.
n.a.
n.a.
9.44
15.95
10.73
14.60
12.60
15.11
12.10
11.80
16.39
16.45
11.96
16.45
11.94
16.37
12.22
16.31
12.42
16.22
50.0
42.6
53.5
45.2
56.2
46.7
53.4
47.8
52.7
46.6
53.0
46.5
52.9
46.4
52.9
46.2
53.1
46.2 r
11,949
7,874
11,841
7,856
11.33
14.82
13.99
4
93
10,665
6,555
11,203
7,420
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.
91
97
11,663
7,824
11,886
7,855
11,973
7,908
12,065
7,921
12,108
7,988
96
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
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
Transaction category, sector
1985
1986
1987
1989
1988
Qi
Q2
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
750.7
846.3
831.1
693.2
767.0
728.2
827.2
754.4
758.3
792.2
658.9
688.1
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
198.8
199.0
-.2
223.6
223.7
-.1
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
211.6
212.0
-.5
113.7
106.0
7.7
162.5
141.6
20.9
142.1
100.5
41.6
199.9
201.1
-1.2
70.9
65.8
5.1
149.0
149.1
-.2
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
551.9
320.0
51.0
46.1
222.8
136.7
25.2
62.2
-1.2
622.7
451.4
135.4
73.8
242.2
156.8
29.8
62.2
-6.6
616.1
460.3
22.7
121.3
316.3
218.7
33.5
73.6
-9.5
548.3
458.5
34.1
99.9
324.5
234.9
24.4
71.6
-6.4
609.6
462.6
34.0
120.9
307.7
229.1
18.9
61.7
-2.1
516.6
386.5
29.1
118.8
238.7
170.7
24.2
48.5
-4.7
713.4
561.0
37.9
143.9
379.2
300.7
14.7
65.4
-1.6
592.0
463.9
34.8
115.9
313.2
231.0
19.5
65.4
-2.6
616.3
438.9
34.3
104.9
299.7
214.0
17.3
67.7
.7
592.3
427.8
29.3
111.6
286.9
205.2
27.2
58.8
-4.4
588.0
394.1
20.6
138.5
234.9
186.1
8.1
38.7
2.1
539.1
412.6
32.6
113.6
266.4
191.9
21.3
53.2
.0
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
231.9
81.6
66.3
21.7
62.2
171.3
82.5
38.6
14.6
35.6
155.8
58.0
66.7
-9.3
40.5
89.7
32.9
10.8
2.3
43.8
147.0
51.1
38.4
11.6
45.9
130.1
43.7
20.8
2.4
63.2
152.4
51.9
58.8
6.8
34.8
128.1
35.5
7.3
17.1
68.1
177.3
73.1
66.6
20.0
17.6
164.5
34.8
23.1
44.1
62.5
193.9
46.0
29.9
44.9
73.1
126.5
30.9
21.6
20.4
53.6
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
551.9
28.1
231.5
292.3
-.4
123.2
169.6
622.7
90.9
284.6
247.2
-14.5
129.3
132.4
616.1
36.2
289.2
290.7
-16.3
103.2
203.7
548.3
33.6
271.9
242.8
-10.6
107.9
145.5
609.6
29.8
287.9
291.8
-7.5
91.9
207.5
516.6
23.4
230.2
263.0
-12.7
85.2
190.5
713.4
37.0
346.7
329.7
-3.3
83.6
249.4
592.0
28.1
291.6
272.3
-2.2
100.5
174.0
616.3
30.6
283.3
302.4
-11.8
98.2
216.0
592.3
29.7
263.1
299.4
-2.2
91.1
210.6
588.0
27.7
227.1
333.3
.3
70.0
263.0
539.1
29.5
254.8
254.9
2.8
81.7
170.4
26 Foreign net borrowing in United States
27
Bonds
28
Bank loans n.e.c
29
Open market paper
30
U.S. government loans
8.4
3.8
-6.6
6.2
5.0
1.2
3.8
-2.8
6.2
-6.0
9.7
3.1
-1.0
11.5
-3.9
4.9
7.4
-3.6
2.1
-1.0
6.9
6.9
-1.8
9.6
-7.8
4.8
14.2
1.7
.7
-11.8
5.4
2.6
-3.3
6.5
-.4
4.1
5.9
.0
10.3
-12.1
13.3
5.1
-5.7
21.0
-7.1
-1.1
3.2
4.9
12.1
-21.4
-3.9
11.1
1.7
-8.1
-8.6
28.7
9.1
.0
20.4
-.9
31 Total domestic plus foreign
759.1
847.5
840.9
698.1
773.9
733.0
832.6
758.5
771.7
791.1
655.0
716.8
Financial sectors
32 Total net borrowing by financial sectors
150.7
201.3
318.9
315.0
264.2
242.5
263.9
232.1
318.3
394.4
123.4
152.5
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
74.9
30.4
44.4
.0
101.5
20.6
79.9
1.1
187.9
15.2
173.1
-.4
185.8
30.2
156.4
-.8
137.5
44.9
92.6
.0
128.8
59.5
69.3
.0
104.3
11.1
93.1
.0
144.4
46.5
97.8
.0
172.5
62.3
110.1
.0
216.1
84.9
131.2
.0
105.8
12.5
93.3
.0
137.4
10.0
127.4
.0
75.9
34.3
.4
1.4
24.0
15.7
99.7
50.9
.1
2.6
32.0
14.2
131.0
82.9
.1
4.0
24.2
19.8
129.2
78.9
.4
-3.3
28.8
24.4
126.7
51.7
.3
1.4
53.6
19.7
113.7
60.0
-.1
5.9
38.5
9.4
159.6
71.1
.1
5.7
70.5
12.3
87.7
32.5
-.1
-5.6
35.1
25.8
145.8
43.0
1.2
-.3
70.4
31.4
178.3
52.7
.3
3.0
53.2
69.1
17.6
31.4
.0
.3
2.8
-16.9
15.1
26.4
.0
4.1
28.2
-43.7
150.7
201.3
318.9
315.0
264.2
242.5
263.9
232.1
318.3
394.4
123.4
152.5
30.4
44.4
75.9
7.3
16.1
17.2
1.2
24.0
.8
9.3
21.7
79.9
99.7
-4.9
16.6
17.3
1.5
57.2
.5
11.5
14.9
173.1
131.0
-3.6
15.2
20.9
4.2
54.5
1.0
39.0
29.5
156.4
129.2
7.1
14.3
19.6
8.1
40.3
.8
39.1
44.9
92.6
126.7
-3.9
5.2
19.9
1.9
67.0
4.1
32.5
59.5
69.3
113.7
-16.7
-8.8
10.0
2.3
78.4
5.4
43.0
11.1
93.1
159.6
-1.6
22.4
19.1
1.1
85.4
1.7
31.5
46.5
97.8
87.7
-.9
6.1
24.1
.5
40.7
-5.9
23.1
62.3
110.1
145.8
3.7
.8
26.3
3.8
63.6
15.0
32.5
84.9
131.2
178.3
-13.4
6.4
71.3
-2.8
78.4
-.9
39.3
12.5
93.3
17.6
-.9
6.5
-16.2
-1.1
32.8
-2.2
-1.4
10.0
127.4
15.1
7.5
6.7
-43.9
-2.9
43.2
-1.4
5.9
33
34
35
36
37 Private financial sectors
38
Corporate bonds
39
Mortgages
40
Bank loans n.e.c
41
Open market paper
42
Loans from Federal Home Loan Banks
By sector
43
44
45
46
47
48
49
50
51
52
53
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO Issuers
A42
DomesticNonfinancialStatistics • February 1990
1.57—Continued
1989
1988
Transaction category, sector
1984
1985
1986
1987
1988
Q1
Q2
Q3
Q4
Q1
Q2
Q3
All sectors
54 Total net borrowing
55
56
57
58
59
60
61
62
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
63 MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
64 Net borrowing by domestic nonfinancial
65 Net borrowing by U.S. government
909.8
975.5
1,096.5
990.6
1,089.9 1,185.4
778.4
869.3
294.9
34.0
179.5
308.0
51.1
38.0
74.9
57.8
340.4
29.1
193.0
238.6
43.7
28.3
41.6
60.8
218.0
37.9
217.6
379.3
51.9
61.2
83.9
46.8
306.8
34.8
154.3
313.1
35.5
1.7
62.5
81.8
314.6
34.3
153.0
300.8
73.1
60.7
111.5
42.0
416.0
29.3
167.5
287.2
34.8
31.1
109.4
110.2
176.7
20.6
181.1
234.9
46.0
31.9
39.6
47.5
286.4
32.6
149.2
266.4
30.9
25.8
69.0
9.1
1,048.8 1,159.8 1,013.2 1,038.1
273.8
51.0
84.3
223.1
81.6
61.1
51.9
82.9
324.2
135.4
128.4
242.2
82.5
38.3
52.8
45.0
403.4
22.7
207.3
316.4
58.0
69.7
26.4
56.1
331.5
34.1
186.3
324.9
32.9
3.8
33.2
66.5
6.3
14.4
.0
-7.9
10.4
47.6
1.2
10.6
-17.9
-22.5
43.7
-7.5
744.4
192.5
831.9
209.3
831.2
215.0
701.1
152.8
756.6
147.1
680.6
164.0
825.9
112.5
743.8
151.8
776.3
160.0
814.7
222.4
615.2
27.2
695.6
156.4
-163.5 -163.5
-48.7
-64.7
External corporate equity funds raised in United States
66 Total net share issues
-36.0
20.1
90.5
67
68
69
70
71
29.3
-65.3
-74.5
8.2
.9
84.4
-64.3
-81.5
13.5
3.7
159.0
-68.5
-80.8
11.1
1.2
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
14.3 -117.9 -101.0 -133.7
71.6
-.7
-57.3 -117.2
-76.5 -130.5
21.4
12.4
-2.1
.9
-9.5
-6.6
-91.5 -127.0
-95.0 -140.0
2.4
19.0
1.1
-6.0
-73.5
1.5
3.6
24.0
50.0
11.9
-75.0 -175.4 -167.1 -72.7 -114.6
-92.0 -195.0 -180.0 -105.0 -145.0
9.4
17.1
17.1
14.6
13.5
3.6
15.2
2.4
6.1
13.3
Flow of Funds
A43
1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1989
1988
Transaction category, or sector
1984
1985
1986
1987
1988
Ql
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
Q2
Q3
Q4
Ql
Q2
Q3
750.7
846.3
831.1
693.2
767.0
728.2
827.2
754.4
758.3
792.2
658.9
688.1
157.6
38.9
56.5
15.7
46.6
202.0
45.9
94.6
14.2
47.3
314.0
69.4
170.1
19.8
54.7
262.8
70.1
153.2
24.4
15.1
237.6
85.0
104.0
19.7
28.8
278.6
153.2
88.9
9.4
27.1
185.5
43.3
107.9
12.3
22.1
196.9
24.1
98.1
25.8
49.0
289.3
119.6
121.2
31.4
17.1
26.7
348.7
97.6 -102.4
106.6
133.3
69.1 - 1 6 . 9
39.4
48.7
267.4
117.1
149.0
-43.7
45.0
17.1
74.3
8.4
57.9
17.8
103.5
18.4
62.3
9.7
187.2
19.4
97.8
-7.9
183.4
24.7
62.7
-4.9
129.6^
10.5
102.3
-7.0
114.3
2.7
168.6
-7.6
105.7
5.0
82.5
4.3
130.1
15.5
47.0
-9.3
168.5
18.9
111.2
2.8
221.4
5.2
119.3
3.1
15.6
-3.9
11.9
5.2
165.6
-30.7
127.2
74.9
8.4
101.5
1.2
187.9
9.7
185.8
4.9
137.5
6.9
128.8
4.8
104.3
5.4
144.4
4.1
172.5
13.3
216.1
-1.1
105.8
-3.9
137.4
28.7
Private domestic funds advanced
13 Total net advances
14
U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
676.3
234.9
51.0
35.1
105.3
265.6
15.7
747.0
278.2
135.4
40.8
91.8
214.8
14.2
714.8
333.9
22.7
84.2
82.0
211.8
19.8
621.1
261.4
34.1
87.5
106.1
156.5
24.4
673.8
209.9
34.0
104.4
144.0
201.2
19.7
583.2
187.2
29.1
126.5
106.0
143.8
9.4
751.3
174.7
37.9
126.2
207.5
217.2
12.3
705.9
282.8
34.8
91.7
152.3
170.1
25.8
654.8
195.0
34.3
73.0
110.1
273.7
31.4
658.4
318.4
29.3
89.4
99.2
191.3
69.1
734.1
279.1
20.6
132.3
87.5
197.7
-16.9
586.8
169.3
32.6
103.4
64.2
173.6
-43.7
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21
Commercial banking
Savings institutions
22
23
Insurance and pension funds
24
Other finance
585.8
169.2
154.7
121.8
140.1
579.9
186.0
87.9
154.4
151.6
744.0
197.5
107.6
174.6
264.2
560.8
136.8
136.8
210.9
76.3
558.2
155.3
120.5
194.9
87.4
617.4
87.9
96.0
257.4
176.1
553.7
194.5
134.9
182.7
41.6
427.5
118.4
157.0
150.5
1.7
634.1
220.5
94.2
189.1
130.3
568.6
120.6
62.2
228.3
157.6
544.3
342.2
158.6
132.9
- 7 3 . 1 -154.2
156.0
182.5
207.4
276.2
25 Sources of funds
26
Private domestic deposits and RPs
27
Credit market borrowing
28
Other sources
29
Foreign funds
30
Treasury balances
31
Insurance and pension reserves
Other, net
32
585.8
322.6
75.9
187.3
8.8
4.0
124.0
50.5
579.9
214.3
99.7
265.9
19.7
10.3
131.9
104.1
744.0
262.6
131.0
350.4
12.9
1.7
149.3
186.5
560.8
144.1
129.2
287.5
43.7
-5.8
176.1
73.6
558.2
219.2
126.7
212.3
9.3
7.3
186.8
8.8
617.4
305.5
113.7
198.2
-60.6
44.2
190.1
24.4
553.7
102.0
159.6
292.1
94.5
-16.3
184.0
29.9
427.5
191.9
87.7
147.9
-42.1
5.6
109.8
74.5
634.1
277.4
145.8
210.9
45.5
-4.1
263.3
-93.8
568.6
166.5
178.3
223.8
-28.4
-21.6
133.0
140.8
544.3
213.4
17.6
313.3
-16.0
26.6
151.5
151.2
342.2
282.7
15.1
44.3
10.6
-6.4
88.7
-48.6
Private domestic nonfinancial investors
33 Direct lending in credit markets
U.S. government securities
34
35
State and local obligations
36
Corporate and foreign bonds
Open market paper
37
Other
38
166.4
111.4
27.1
-4.1
7.8
24.2
266.8
157.8
37.7
4.2
47.5
19.6
101.8
60.9
-21.7
39.3
5.4
17.9
189.6
100.0
45.6
24.1
6.6
13.3
242.3
149.3
33.9
2.6
37.2
19.3
79.5
119.6
19.7
-39.6
-14.5
-5.8
357.2
103.2
37.2
61.4
98.6
56.8
366.2
225.7
56.4
-5.8
77.4
12.5
166.5
148.7
22.3
-5.7
-12.6
13.9
268.1
211.1
35.7
-15.4
67.1
-30.3
207.5
123.2
-11.4
32.8
19.5
43.4
259.7
137.4
22.6
21.2
43.4
35.1
39 Deposits and currency
Currency
40
41
Checkable deposits
Small time and savings accounts
42
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
326.1
8.6
30.2
150.7
49.0
82.9
9.8
-5.1
224.6
12.4
41.9
138.5
8.9
7.4
17.7
-2.1
283.0
14.4
95.0
120.6
38.3
-11.4
20.2
5.9
160.2
19.0
-3.0
76.0
27.2
26.7
17.2
-2.8
221.8
14.7
12.3
122.2
22.8
40.8
21.2
-12.1
313.5
10.7
3.6
199.5
57.6
16.9
27.9
-2.7
110.0
13.8
-30.5
130.5
-21.0
-3.5
26.5
-5.9
215.7
29.3
-21.4
72.7
-3.5
137.0
7.0
-5.5
248.2
5.1
97.3
86.0
58.1
12.7
23.3
-34.4
211.2
19.3
-54.5
26.4
51.1
111.9
31.6
25.5
231.1
12.6
-83.0
117.4
111.8
39.8
27.5
5.1
273.2
11.4
35.4
119.1
124.3
-15.4
19.4
-20.9
47 Total of credit market instruments, deposits, and
currency
492.5
491.4
384.8
349.8
464.2
393.0
467.2
581.9
414.7
479.4
438.6
532.9
20.8
86.6r
66.7
23.8
77.6
82.0
37.3
104.1
110.7
37.6
90.3
106.4
30.7
82.8
111.7
38.0
105.9
108.1
22.3
73.7
177.0
26.0
60.6
4.9
37.5
96.8
156.7
44.1
86.4
90.9
4.1
74.1
-4.1
37.3
58.3
137.8
-117.9 -101.0 -133.7
-73.5
-163.5 -163.5
-48.7
-64.7
-9.5
-6.6
- 9 1 . 5 -127.0
-34.4
.2
- 6 6 . 5 -133.9
1.5
-75.0
25.5
-99.1
11.9
3.6
-175.4 -167.1
-6.5
30.1
-193.6 -157.0
50.0
24.0
-72.7 -114.6
3.8
-6.5
-68.4
-42.2
2
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11
Sponsored credit agencies and mortgage pools
12 Foreign
7
8
9
10
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
51 Total net issues
-36.0
20.1
90.5
14.3
5?
Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
29.3
-65.3
15.8
-51.8
84.4
-64.3
45.6
-25.5
159.0
-68.5
53.7
36.8
71.6
-57.3
21.4
-7.1
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.
-.7
-117.2
5.4
-123.3
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 1990
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1988
Transaction category, sector
1984
1985
1986
1989
1987
Q2
Ql
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
5,951.8
6,795.1
7,631.2
8,335.0
8,477.0
8,686.9
8,875.4
9,105.6
9,258.7
9,428.4
9,604.5
By sector and instrument
2 U.S. government
3
Treasury securities
Agency issues and mortgages
4
1,376.8
1,373.4
3.4
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,003.2
1,998.1
5.0
2,022.3
2,015.3
7.0
2,063.9
2,051.7
12.2
2,117.8
2,095.2
22.6
2,155.7
2,133.4
22.3
2,165.7
2,142.1
23.6
2,204.3
2,180.7
23.5
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
Corporate bonds
8
Mortgages
9
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
4.575.1
3,038.0
520.0
469.2
2,048.8
1.336.2
183.6
416.5
112.4
5,194.7
3,485.5
655.5
542.9
2.287.1
1.490.2
213.0
478.1
105.9
5,815.8
3,957.5
679.1
664.2
2,614.2
1,720.8
246.2
551.4
95.8
6,374.7
4.428.0
713.2
764.1
2,950.7
1.943.1
270.0
648.7
88.9
6,473.8
4.511.0
718.1
793.8
2.999.1
1,978.0
273.0
660.2
88.0
6,664.7
4.652.6
727.2
829.8
3.095.7
2,055.3
276.6
676.0
87.8
6,811.5
4,782.0
746.1
858.8
3,177.2
2,118.0
281.0
691.1
87.0
6,987.8
4.902.1
759.8
885.0
3,257.3
2.174.2
286.8
709.6
86.8
7,103.0
4,979.2
764.7
912.9
3,301.6
2,214.8
292.6
708.2
86.0
7,262.7
5.078.3
769.3
947.5
3,361.6
2.263.4
294.4
717.0
86.7
7,400.2
5,187.8
780.3
975.9
3.431.6
2.316.7
299.3
728.9
86.6
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,537.1
519.3
553.1
58.5
406.2
1,709.3
601.8
592.7
72.2
442.6
1,858.4
659.8
656.1
62.9
479.6
1,946.7
692.7
664.3
73.8
516.0
1,962.8
688.9
668.3
73.5
532.1
2,012.0
705.8
687.2
77.8
541.2
2,029.4
721.2
687.7
80.3
540.2
2,085.7
743.7
702.6
85.4
554.0
2,123.8
745.0
717.6
96.1
565.1
2,184.3
761.0
729.8
110.1
583.5
2,212.4
775.3
734.5
113.1
589.5
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
4.575.1
383.0
2.018.2
2,173.9
187.9
769.0
1,216.9
5,194.7
473.9
2.295.5
2,425.4
173.4
898.3
1.353.6
5,815.8
510.1
2,591.8
2,714.0
156.6
1,001.6
1,555.8
6,374.7
543.7
2,864.5
2.966.5
145.5
1,109.4
1.711.6
6,473.8
547.1
2,900.7
3,026.0
141.3
1,131.7
1,753.0
6,664.7
556.0
2,990.2
3,118.5
143.9
1,151.9
1,822.7
6,811.5
565.7
3,068.3
3.177.5
143.6
1.172.6
1,861.3
6,987.8
573.5
3,152.0
3.262.4
137.6
1,205.3
1.919.5
7,103.0
578.5
3,205.6
3.319.0
135.9
1.229.1
1,954.0
7,262.7
584.8
3,265.5
3,412.3
139.5
1,245.9
2,027.0
7,400.2
595.1
3,336.1
3,469.0
140.7
1,261.6
2,066.6
233.6
68.0
30.8
27.7
107.1
234.7
71.8
27.9
33.9
101.1
236.4
74.9
26.9
37.4
97.1
242.9
82.3
23.3
41.2
96.1
244.6
86.1
22.8
42.5
93.1
245.9
86.0
22.4
44.0
93.5
246.1
87.4
22.7
46.3
89.8
249.6
89.2
21.5
50.9
88.1
249.9
90.5
21.6
54.9
83.0
249.0
92.2
22.7
52.7
81.4
255.3
94.5
22.9
57.5
80.4
6,185.4
7,029.9
7,867.6
8,578.0
8,721.6
8,932.8
9,121.5
9,355.3
9,508.7
9,677.4
9,859.7
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
Financial sectors
32 Total credit market debt owed by
financial sectors
33
34
35
36
37
38
39
40
41
42
43 Total, by sector
44
45
46
47
48
49
50
51
52
53
1,010.2
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO issuers
,
1,213.2
1,563.6
1,885.5
1,926.0
2,000.5
2,058.2
2,149.7
2,258.7
2,298.9
2,336.7
531.2
237.2
289.0
5.0
479.0
153.0
2.5
29.5
219.5
74.6
632.7
257.8
368.9
6.1
580.5
204.5
2.7
32.1
252.4
88.8
844.2
273.0
565.4
5.7
719.5
287.4
2.7
36.1
284.6
108.6
1,026.5
303.2
718.3
5.0
859.0
366.3
3.1
32.8
323.8
133.1
1,050.6
313.5
732.1
5.0
875.4
380.5
3.1
31.7
330.6
129.5
1,076.9
317.9
754.0
5.0
923.6
397.9
3.1
34.3
353.4
134.8
1,116.3
328.5
782.8
5.0
941.9
406.4
3.1
32.9
358.0
141.6
1,164.0
348.1
810.9
5.0
985.7
418.0
3.4
34.2
377.4
152.8
1,209.0
364.3
839.7
5.0
1,049.7
458.2
3.5
32.2
392.0
163.8
1,235.8
369.0
861.8
5.0
1,063.1
465.8
3.5
33.8
398.3
161.9
1,273.8
370.4
898.4
5.0
1,062.9
472.8
3.5
34.7
400.9
151.1
1,010.2
1,213.2
1,563.6
1,885.5
1,926.0
2,000.5
2,058.2
2,149.7
2,258.7
2,298.9
2,336.7
242.2
289.0
479.0
84.1
89.5
81.6
2.9
203.0
4.3
13.5
263.9
368.9
580.5
79.2
106.2
98.9
4.4
261.2
5.6
25.0
278.7
565.4
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
718.3
859.0
82.7
131.1
139.4
16.7
378.8
7.3
103.1
318.5
732.1
875.4
76.4
131.0
135.3
17.1
393.0
8.7
113.9
322.9
754.0
923.6
77.2
136.3
141.9
17.6
419.8
9.1
121.8
333.5
782.8
941.9
76.6
136.3
148.1
18.1
427.7
7.6
127.5
353.1
810.9
985.7
78.8
136.2
159.3
18.6
445.8
11.4
135.7
369.3
839.7
1,049.7
73.3
140.0
170.1
17.8
463.8
11.1
173.5
374.0
861.8
1,063.1
74.5
141.2
167.9
17.7
478.0
10.6
173.1
375.4
898.4
1,062.9
75.8
141.5
156.8
17.6
486.3
10.3
174.6
All sectors
54 Total credit market debt
7,195.7
8,243.1
9,431.2
10,463.4
10,647.5
10,933.4
11,179.7
11,504.9
11,767.4
11,976.3
12,196.4
55
56
37
58
39
60
61
62
1,902.8
520.0
690.1
2,051.4
519.3
613.4
305.7
592.9
2,227.0
655.5
819.2
2,289.8
601.8
652.7
358.5
638.6
2,653.8
679.1
1,026.4
2,617.0
659.8
719.1
384.9
691.1
2,981.8
713.2
1,212.7
2,953.8
692.7
720.3
438.8
750.2
3,048.8
718.1
1,260.4
3,002.2
688.9
722.7
446.7
759.7
3,094.2
727.2
1,313.7
3,098.8
705.8
744.0
475.3
774.5
3,175.2
746.1
1,352.5
3,180.3
721.2
743.3
484.6
776.6
3,276.7
759.8
1,392.2
3,260.7
743.7
758.3
513.6
799.8
3,359.7
764.7
1,461.6
3,305.1
745.0
771.4
543.1
816.8
3,396.5
769.3
1,505.5
3,365.0
761.0
786.2
561.1
831.7
3,473.1
780.3
1,543.2
3,435.1
775.3
792.0
571.4
826.0
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
Flow of Funds
A45
1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1989
1988
Transaction category, or sector
1984
1985
1986
1987
Ql
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
Q2
Q3
Q4
Ql
Q2
Q3
5,951.8
6,795.1
7,631.2
8,335.0
8,477.0
8,686.9
8,875.4
9,105.6
9,258.7
9,428.4
9,604.5
1,257.7
377.9
423.5
74.6
381.6
1,460.5
423.8
518.2
88.8
429.7
1,794.7
493.2
712.3
108.6
480.5
2,044.9
563.3
862.0
133.1
486.6
2,099.4.
595.7
880.6
129.5
493.6
2,151.3
610.1
906.1
134.8
500.3
2,191.8
613.3
934.9
141.6
502.1
2,266.4
648.3
966.0
152.8
499.3
2,332.1
666.2
995.3
163.8
506.9
2,345.1
644.6
1,020.5
161.9
518.1
2,414.3
670.7
1,062.6
151.1
529.8
7 Total held, by type of lender
8
U.S. government
9
Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,257.7
228.2
556.3
167.6
305.6
1,460.5
246.7
659.8
186.0
367.9
1,794.7
253.3
869.8
205.5
466.1
2,044.9
238.0
1,048.9
230.1
527.9
2,099.4
237.1
1,068.0
224.9
569.5
2,151.3
235.8
1,095.6
229.7
590.2
2,191.8
226.3
1,132.9
230.8
601.9
2,266.4
216.9
1,178.6
240.6
630.3
2,332.1
213.9
1,223.5
235.4
659.3
2,345.1
215.2
1,228.9
238.4
662.6
2,414.3
216.9
1,275.3
227.6
694.5
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
531.2
233.6
632.7
234.7
844.2
236.4
1,026.5
242.9
1,050.6
244.6
1,076.9
245.9
1,116.3
246.1
1,164.0
249.6
1,209.0
249.9
1,235.8
249.0
1,273.8
255.3
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
LESS: Federal Home Loan Bank advances
20
5,458.9
1,524.9
520.0
476.8
1,096.5
1,915.3
74.6
6,202.1
1,803.2
655.5
517.6
1,185.1
2,129.7
88.8
6,917.1
2,160.6
679.1
601.3
1,254.7
2,330.0
108.6
7,559.5
2,418.5
713.2
689.6
1,351.1
2,520.1
133.1
7,672.7
2,453.1
718.1
722.2
1,370.4
2,538.5
129.5
7,858.4
2,484.1
727.2
752.9
1,425.9
2,603.3
134.8
8,045.9
2,561.9
746.1
775.7
1,464.1
2,639.6
141.6
8,252.8
2,628.4
759.8
794.0
1,494.9
2,728.4
152.8
8,385.5
2,693.5
764.7
817.6
1,512.2
2,761.3
163.8
8,568.1
2,751.9
769.3
849.3
1,537.3
2,822.2
161.9
8,719.2
2,802.3
780.3
875.1
1,553.5
2,859.1
151.1
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
4,699.6
1,791.9
1,100.7
1,215.3
591.7
5,283.1
1,978.9
1,191.2
1,369.7
743.4
6,025.7
2,176.3
1,297.9
1,544.3
1,007.1
6,604.6
2,313.1
1,445.5
1,755.2
1,090.7
6,732.0
2,327.1
1,453.6
1,810.6
1,140.7
6,891.0
2,382.6
1,495.9
1,859.0
1,153.5
7,003.5
2,421.6
1,538.8
1,899.1
1,144.0
7,168.1
2,468.4
1,571.3
1,950.2
1,178.1
7,298.7
2,490.9
1,566.7
1,996.7
1,244.4
7,458.7
2,538.2
1,557.3
2,046.5
1,316.7
7,543.1
2,580.2
1,522.8
2,083.7
1,356.5
26 Sources of funds
Private domestic deposits and RPs
27
Credit market debt
28
4,699.6
2,715.6
479.0
5,283.1
2,930.0
580.5
6,025.7
3,188.4
719.5
6,604.6
3,324.8
859.0
6,732.0
3,404.2
875.4
6,891.0
3,432.6
923.6
7,003.5
3,474.2
941.9
7,168.1
3,554.2
985.7
7,298.7
3,587.8
1,049.7
7,458.7
3,644.5
1,063.1
7,543.1
3,710.6
1,062.9
29
30
31
32
33
1,504.9
-14.1
15.5
1,160.8
342.6
1,772.7
5.6
25.8
1,289.4
451.8
2,117.9
18.6
27.5
1,427.9
643.9
2,420.8
62.2
21.6
1,597.2
739.6
2,452.4
45.9
23.5
1,647.9
735.2
2,534.8
62.3
32.6
1,693.8
746.1
2,587.4
51.9
34.2
1,729.2
772.1
2,628.1
71.6
29.0
1,771.2
756.4
2,661.1
61.9
13.5
1,802.6
783.0
2,751.0
51.0
34.4
1,833.7
831.9
2,769.6
53.7
32.4
1,853.9
829.6
Private domestic nonfinancial investors
34 Credit market claims
35
U.S. government securities
36
Tax-exempt obligations
37
Corporate and foreign bonds
Open market paper
38
39
Other
1,238.4
659.5
194.2
33.1
83.5
268.0
1,499.5
814.7
231.9
38.0
131.0
283.8
1,610.8
899.1
211.2
77.8
136.4
286.2
1,813.9
992.0
256.8
102.2
160.7
302.3
1,816.1
1,005.2
257.6
97.7
151.9
303.7
1,891.0
1,022.1
270.1
105.7
179.9
313.3
1,984.4
1,086.1
289.0
107.1
188.7
313.6
2,070.5
1,143.5
303.7
100.8
201.0
321.5
2,136.6
1,175.0
307.2
137.0
213.0
304.3
2,172.6
1,196.3
308.2
136.4
221.7
309.9
2,239.0
1,239.6
312.4
150.0
221.4
315.5
40 Deposits and currency
41
Currency
42
Checkable deposits
Small time and savings accounts
43
44
Money market fund shares
45
Large time deposits
Security RPs
46
47
Deposits in foreign countries
2,895.8
159.6
380.6
1,693.4
218.5
332.5
90.6
20.6
3,120.4
171.9
422.5
1,831.9
227.3
339.9
108.3
18.5
3,399.2
186.3
517.4
1,948.3
265.6
328.5
128.5
24.5
3,553.9
205.4
514.0
2,017.1
292.8
355.2
145.7
23.7
3,628.0
204.0
495.4
2,084.9
318.4
353.7
151.9
19.9
3,662.4
209.9
510.3
2,110.9
306.1
349.1
156.2
19.9
3,704.4
213.4
496.1
2,131.1
303.6
384.7
158.6
16.8
3,785.9
220.1
525.4
2,150.4
315.6
396.0
166.9
11.6
3,822.8
220.7
492.8
2,164.7
340.3
415.9
174.1
14.3
3,887.9
226.4
496.4
2,186.7
359.9
423.1
178.4
17.0
3,945.9
225.0
497.3
2,219.0
389.2
421.2
183.9
10.3
48 Total of credit market instruments, deposits, and
currency
4,134.2
4,619.9
5,010.0
5,367.8
5,444.2
5,553.5
5,688.8
5,856.4
5,959.4
6,060.4
6,184.9
20.3
86.1
291.5
20.8
85.2
373.5
22.8
87.1
484.7
23.8
87.4
590.2
24.1
87.7
615.3
24.1
87.7
652.5
24.0
87.0
653.8
24.2
86.9
701.9
24.5
87.0
721.2
24.2
87.1
713.6
24.5
86.5
748.1
2
3
4
5
6
12
13
49
50
51
By public agencies and foreign
Total held
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
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
MEMO: Corporate equities not included above
52 Total market value
2,157.9
2,823.9
3,360.6
3,325.0
3,504.0
3,622.7
3,577.6
3,620.3
3,731.6
4,072.3
4,296.0
53
54
Mutual fund shares
Other equities
136.7
2,021.2
240.2
2,583.7
413.5
2,947.1
460.1
2,864.9
479.2
3,024.8
486.8
3,136.0
478.1
3,099.5
478.3
3,142.0
486.3
3,245.3
514.8
3,557.5
538.5
3,757.5
55
56
Holdings by financial institutions
Other holdings
615.6
1,542.3
800.0
2,023.9
972.1
2,388.4
1,013.8
2,311.2
1,112.6
2,391.3
1,170.0
2,452.8
1,167.1
2,410.5
1,200.4
2,419.9
1,277.7
2,453.9
1,395.7
2,676.6
1,523.6
2,772.4
N O T E S 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.
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 1990
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1989
Measure
1986
1987
1988
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct/
Nov.
1 Industrial production
125.1
129.8
137.2
140.7
141.7
141.6
142.0
141.9
142.5
142.1
141.3
141.5
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
133.3
132.5
124.0
143.6
136.2
113.8
138.3
136.8
127.7
148.8
143.3
118.3
145.9
144.3
133.9
158.2
151.5
125.3
150.5
148.9
138.4
162.8
156.1
127.3
151.6
150.2
139.5
164.3
156.5
128.2
151.7
150.4
139.2
165.4
156.3
127.9
152.5
151.2
139.9
166.1
157.0
127.7
151.8
150.2
138.7
165.5
157.5
128.3
152.5
151.1
139.3
166.8
157.5
128.8
152.1
150.5
138.9
165.9
157.7
128.5
150.9
148.8
139.5
161.1
158.4
128.2
151.5
149.4
139.2
163.1
158.5
128.0
129.1
134.6
142.8
147.0
148.0
148.1
148.7
148.5
149.2
148.7
147.5
147.8
79.7
78.6
81.1
80.5
83.5
83.7
84.1
83.7
84.5
84.2
84.3
83.8
84.4
83.6
84.0
83.7
84.2
83.9
83.7
83.5
82.8
83.2
82.7
82.9
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent) 2
9
Manufacturing
10
Industrial materials industries
3
11 Construction contracts (1982 = 100)
158.3
163.8
160.8
150.0
163.0
159.0
157.0
163.0
160.0
175.0
165.0
160.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production- worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income
Retail sales 6
120.7
100.9
96.4r
91.3r
129.0
219.4
210.8
177.4
218.5
199.3
124.1
101.8
92. V
133.4
235.0
226.3
183.8
232.4
210.8
128.6
105.0
99.3'
94.5r
138.5
252.8'
244.4
196.5
252.1
225.1
130.8
105.4
100.0
95.1
141.5
271.3
259.5
207.5
270.3
232.4
131.1
105.5
99.9
95.0
141.8
272.9
261.7
205.7
269.6
235.5
131.3
105.5
99.9
95.0
142.2
273.5
262.0
205.8
271.7
237.4
131.7
105.4
99.8
94.8
142.7
274.8
263.8
207.0
273.8
237.3
131.9
105.4
99.8
94.8
143.0
276.4r
266.1
207.5
275.4
239.1
132.0
105.5
99.8
94.8
143.1
277.3
266.7
208.8
276.1
241.3
132.3
105.2
99.4
94.2
143.6
277.9
268.5
208.8
276.5
242.0
132.4
105.2
99.3
94.1
143.8
280.1
271.4
211.1
278.6
238.8
132.7
105.2
99.1
94.0
144.2
282.5
271.6
209.3
281.1
240.8
22
23
Prices 7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
109.6
103.2
113.6
105.4
118.3
108.0
122.3
112.1
123.1
113.0
123.8
114.2
124.1
114.3
124.4
114.l r
124.6
113.3
125.0
113.5
125.6
114.8
125.9
114.8
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
A47
2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1989
Category
1986
1987
1988
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
182,822
185,010
186,837
188,228
188,377
188,518
188,672
188,808
188,948
189,0%
189,238
2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries 2
5
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor force)
8 Not in labor force
120,078
117,834
122,122
119,865
123,893
121,669
125,863
123,659
125,806
123,610
126,291
124,102
126,145
123,956
126,228
124,018
126,262
124,040
126,330
124,105
126,736
124,515
106,434
3,163
109,232
3,208
111,800
3,169
114,009
3,104
114,102
3,112
114,445
3,096
114,240
3,219
114,290
3,307
114,199
3,257
114,327
3,217
114,644
3,141
8,237
7.0
62,744
7,425
6.2
62,888
6,701
5.5
62,944
6,546
5.3
62,365
6,395
5.2
62,571
6,561
5.3
62,227
6,497
5.2
62,527
6,421
5.2
62,580
6,584
5.3
62,686
6,561
5.3
62,766
6,729
5.4
62,502
99,525
102,310
106,039
108,101
108,310
108,607
108,767
108,887
109,0%'
109,189'
109,399
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
19,536
733
5,294
5,584
25,362
6,679
25,464
17,387
19,672
720
5,279
5,682
25,695
6,776
26,651
17,626
19,667
722
5,283
5,700
25,750
6,790
26,711
17,687
19,650
715
5,283
5,716
25,781
6,808
26,931
17,723
19,649
706
5,314
5,736
25,823
6,815
26,973
17,751
19,644
729
5,321
5,618
25,877
6,836
27,058
17,804
19,559'
730
5,325'
5,709'
25,896'
6,852'
27,159'
17,866'
19,543
731'
5,333'
5,733'
25,952'
6,849'
27,195'
17,853'
19,516
738
5,350
5,744
26,003
6,864
27,320
17,864
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
15 Finance
16 Service
17 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 • February 1990
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally a d j u s t e d
1988
1989
1988
1989
1988
1989
oenes
Q4
Ql
Q2
Q3'
Output (1977 = 100)
Q4
Ql
Q2
Q3
Q4
Capacity (percent of 1977 output)
Ql
Q2
Q3r
Utilization rate (perce it)
1 Total industry
139.9
140.7
141.8
142.2
166.3
167.5
168.7
169.9
84.1
84.0
84.1
83.7
2
i Utilities
104.2
114.3
101.8
116.0
102.0
115.7
102.6
113.9
125.7
140.7
125.1
141.0
124.7
141.4
124.3
141.7
82.9
81.3
81.3
82.3
81.8
81.8
82.5
80.4
4 Manufacturing
145.8
147.0
148.3
148.8
172.8
174.3
175.7
177.2
84.4
84.4
84.4
84.0
5 Primary processing
6 Advanced processing
127.7
156.7
127.8
158.6
127.6
160.8
128.9
161.1
145.2
189.5
146.5
191.0
147.8
192.6
149.1
194.2
87.9
82.7
87.3
83.0
86.4
83.5
86.4
83.0
7 Materials
128.0
127.6
127.9
128.5
150.8
151.7
152.6
153.5
84.9
84.1
83.9
83.7
8 Durable goods
9 Metal materials
10 Nondurable goods
11 Textile, paper, and chemical
12
Paper
13
Chemical
139.2
92.3
135.4
138.1
148.6
144.1
138.6
90.9
136.3
139.2
148.4
145.4
139.0
88.2
137.1
139.8
146.1
145.7
140.4
89.6
137.9
141.1
149.9
146.5
169.0
102.6
151.2
151.8
152.3
159.3
170.1
103.1
152.7
153.5
154.0
161.4
171.3
103.7
154.2
155.3
155.8
163.7
172.5
104.3
155.8
157.0
157.6
165.9
82.4
70.0
89.5
91.0
97.6
90.5
81.5
88.2
89.3
90.7
96.4
90.1
81.1
85.1
88.9
90.0
93.8
89.0
81.4
85.8
88.5
89.9
95.1
88.3
14 Energy materials
102.0
100.7
100.7
99.7
118.7
118.4
118.3
118.1
86.0
85.0
85.1
84.4
July
Aug/
Sept/
Oct/
Nov.
Previous cycle2
High
Low
Latest cycle3
High
Low
1988
Nov.
1989
Mar.
Apr.
May
June
Capacity utilization rate (percent)
IS Total industry
88.6
72.1
86.9
69.5
84.1
83.8
84.2
84.0
84.0
83.7
83.9
83.4
82.8
82.7
16 Mining..
17 Utilities.
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
83.3
80.8
81.2
83.3
82.0
82.9
81.8
81.8
81.5
80.8
82.1
80.5
82.4
80.0
83.1
80.6
83.5
81.1
83.8
80.9
18 Manufacturing
87.7
69.9
86.5
68.0
84.4
84.1
84.5
84.3
84.4
84.0
84.2
83.7
82.8
82.7
19 Primary processing...
20 Advanced processing.
91.9
86.0
68.3
71.1
89.1
85.1
65.0
69.5
88.1
82.6
86.4
83.0
86.8
83.5
86.2
83.4
86.2
83.5
86.7
82.9
86.6
83.2
86.0
82.8
85.8
81.4
85.5
81.4
21 Materials
92.0
70.5
89.1
68.5
85.1
83.7
84.2
83.8
83.6
83.7
83.9
83.5
83.2
82.9
22 Durable goods
23 Metal materials
24 Nondurable goods . . .
25 Textile, paper, and
chemical
26
Paper
27
Chemical
91.8
99.2
91.1
64.4
67.1
66.7
89.8
93.6
88.1
60.9
45.7
70.7
82.7
90.4
89.4
80.9
85.6
88.8
81.3
87.1
89.2
81.0
84.1
88.7
81.1
84.0
88.7
81.3
85.6
89.2
81.7
86.5
88.8
81.2
85.3
87.5
80.1
84.5
88.3
79.7
82.1
87.9
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.8
79.9
63.5
90.9
96.7
90.5
90.2
95.3
89.7
90.7
94.5
90.1
89.6
93.2
88.4
89.8
93.7
88.5
90.6
95.0
89.5
90.1
95.1
88.6
88.8
95.2
86.7
89.6
95.4
87.9
89.0
28 Energy materials.
94.6
86.9
94.0
82.3
86.2
85.4
86.0
85.5
83.8
83.9
84.3
85.1
85.5
85.3
1. These data also appear in the Board's G.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
1977
Groups
portion
1988
1989
1988
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct."
Nov/
Index (1977 = 100)
MAJOR MARKET
1 Total index
100.00
137.2
139.9
140.4
140.8
140.5
140.7
141.7
141.6
142.0
141.9
142.5
142.1
141.3
141.5
57.72
44.77
25.52
19.25
12.94
42.28
145.9
144.3
133.9
158.2
151.5
125.3
148.4
146.8
136.8
159.9
154.2
128.3
149.4
147.7
138.2
160.4
155.0
128.3
150.1
148.2
138.5
161.1
156.6
128.1
150.0
148.6
138.7
161.6
155.1
127.4
150.5
148.9
138.4
162.8
156.1
127.3
151.6
150.2
139.5
164.3
156.5
128.2
151.7
150.4
139.2
165.4
156.3
127.9
152.5
151.2
139.9
166.1
157.0
127.7
151.8
150.2
138.7
165.5
157.5
128.3
152.5
151.1
139.3
166.8
157.5
128.8
152.1
150.5
138.9
165.9
157.7
128.5
150.9
148.8
139.5
161.1
158.4
128.2
151.5
149.4
139.2
163.1
158.5
128.0
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
125.4
125.1
123.0
93.7
177.4
128.3
125.6
144.1
143.5
136.2
106.3
129.2
129.5
129.5
101.0
182.4
129.5
128.9
150.4
148.9
139.8
107.3
131.9
134.5
138.0
105.1
199.1
129.3
130.0
151.0
150.0
140.5
108.9
131.5
132.5
135.6
99.6
202.3
127.9
130.7
151.0
149.5
141.1
110.1
131.6
131.6
133.1
96.0
201.9
129.4
131.6
153.9
153.0
141.3
110.1
130.1
128.9
128.3
95.0
190.0
129.8
131.1
151.6
152.3
140.7
110.9
132.2
131.7
131.7
98.8
192.8
131.7
132.6
151.7
152.5
142.8
113.0
131.2
128.6
127.4
96.0
185.5
130.4
133.3
151.3
151.4
144.3
114.1
130.8
125.6
123.3
91.4
182.5
129.1
134.8
155.6
155.0
143.1
115.0
127.3
120.2
114.6
81.2
176.7
128.7
132.7
148.1
147.0
141.3
116.8
128.7
122.3
119.3
86.4
180.5
126.7
133.5
152.1
149.4
139.8
116.6
127.7
120.5
117.1
92.7
162.4
125.7
133.1
151.8
148.3
140.0
115.8
126.4
118.3
113.2
91.6
153.3
126.0
132.5
151.0
146.6
140.8
114.5
125.7
118.3
113.4
84.3
167.3
125.8
131.4
147.0
19 Nondurable consumer goods
20
Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
Consumer chemical products
23
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
137.0
144.8
141.0
148.9
179.8
163.3
109.8
95.4
124.5
139.7
147.9
143.7
152.2
185.7
167.8
109.8
94.1
125.8
140.5
148.9
144.5
153.6
186.8
169.0
111.6
96.3
127.1
141.1
149.4
144.8
154.2
187.6
174.2
109.1
96.7
121.7
141.4
149.7
144.3
155.4
187.8
177.0
110.1
95.0
125.4
141.4
149.9
143.3
156.9
188.9
180.4
110.7
95.6
126.1
142.2
150.7
144.7
156.9
187.3
180.9
112.0
97.3
127.0
142.1
150.7
144.7
156.9
189.1
180.9
110.1
93.6
127.0
143.3
151.9
145.7
158.4
191.0
183.6
110.7
95.6
126.1
142.8
151.4
144.2
158.9
193.1
183.0
110.4
97.0
124.0
143.2
152.0
145.6
158.7
192.5
184.7
109.2
96.0
122.7
143.1
151.8
146.0
157.9
188.8
185.4
110.3
95.7
125.1
144.3
153.4
147.2
159.8
192.0
186.5
111.4
96.9
144.2
153.3
Equipment
28 Business and defense equipment
29
Business equipment
Construction, mining, and farm
30
31
Manufacturing
32
Power
33
Commercial
34
Transit
35
Defense and space equipment
18.01
14.34
2.08
3.27
1.27
. 5.22
2.49
3.67
163.3
157.6
71.9
131.3
89.4
245.0
115.4
185.9
165.5
161.2
74.5
136.2
92.1
247.0
122.3
182.2
166.2
162.6
74.6
137.0
91.8
248.9
124.9
180.5
167.1
163.8
74.3
136.3
92.8
252.4
125.7
180.0
167.9
165.0
75.6
137.8
92.7
254.3
125.2
179.3
168.9
166.3
76.9
138.6
93.0
257.6
123.9
178.7
170.3
167.8
77.6
139.7
93.6
260.1
124.8
179.9
171.5
169.1
76.3
140.9
93.3
263.2
125.3
180.7
172.0
169.6
74.8
142.8
92.5
264.5
124.8
181.1
171.3
168.5
73.0
143.8
92.8
263.8
120.1
182.0
172.5
169.9
72.1
143.5
94.2
265.6
124.4
182.7
171.5
168.7
74.5
141.9
93.6
263.7
122.2
182.1
166.5
164.1
74.5
141.6
95.1
257.9
107.5
175.7
168.5
166.2
75.2
142.3
95.7
262.0
109.3
177.1
5.95
6.99
5.67
1.31
138.6
162.4
168.5
136.3
140.7
165.7
172.9
134.3
141.4
166.7
173.8
135.8
142.3
168.8
175.9
138.2
139.5
168.4
175.4
138.3
139.3
170.4
177.4
140.3
140.2
170.4
177.9
138.0
140.2
170.0
177.3
138.2
141.2
170.4
177.9
138.4
142.2
170.6
177.8
139.6
141.5
171.2
178.8
138.1
140.7
172.2
180.0
138.5
141.4
172.9
180.4
140.4
142.0
20.50
4.92
5.94
9.64
4.64
135.5
109.0
171.6
126.8
96.1
139.8
113.9
175.0
131.3
101.4
139.0
112.5
174.1
130.9
99.8
139.4
111.7
175.2
131.5
100.8
138.6
112.1
175.2
129.7
98.4
137.9
110.7
175.3
128.8
95.9
139.0
110.8
176.9
130.0
98.0
138.7
111.8
177.1
128.9
94.4
139.4
111.6
177.5
130.0
95.5
139.9
109.9
179.1
131.0
97.7
140.9
111.9
180.0
131.6
98.4
140.4
110.8
179.8
131.2
97.4
138.8
108.0
177.0
130.9
96.4
138.5
106.9
178.5
130.0
94.0
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
13
Auto parts and allied goods
14 Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate products
36 Construction supplies
37 Business supplies
38
General business supplies
39 Commercial energy products
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
160.2
110.3
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
132.0
135.1
136.3
137.1
135.9
136.0
137.1
136.8
137.3
138.5
138.3
136.7
138.5
138.3
7.53
1.52
1.55
4.46
2.57
134.4
110.0
147.3
138.2
125.0
137.9
110.1
147.2
144.2
127.0
139.1
110.0
150.3
145.1
128.0
139.9
112.1
150.4
145.7
129.1
138.6
110.7
147.5
145.0
128.0
139.0
111.8
147.3
145.4
127.2
140.3
114.6
146.7
146.8
127.8
139.1
116.4
145.2
144.7
129.9
140.0
117.2
146.5
145.5
129.4
141.8
116.4
149.1
147.9
129.0
141.5
117.0
149.9
147.0
128.9
140.0
115.6
150.6
144.6
127.2
141.7
115.6
151.5
147.2
141.3
51 Energy materials
52
Primary energy
53
Converted fuel materials
11.69
7.57
4.12
101.5
106.3
92.7
102.3
108.6
90.7
102.6
107.6
93.3
100.5
105.2
92.0
100.5
104.4
93.3
101.0
103.7
96.1
101.7
104.1
97.4
101.1
104.6
94.7
99.1
103.0
92.0
99.1
103.2
91.6
99.5
104.2
91.0
100.5
104.9
92.3
100.9
105.4
92.6
100.7
A50
Domestic Nonfinancial Statistics • February 1990
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued
Groups
SIC
code
1977
proportion
1989
1988
avg.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct. p
Nov.
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.%
84.21
35.11
49.10
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
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products ,
Leather and products
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, and stone products ..
10
11.12
13
14
107.5
103.5
114.0
142.8
143.9
142.0
108.1
104.7
113.7
145.8
146.7
145.2
108.9
104.9
115.4
146.3
147.1
145.7
107.2
103.0
114.0
147.2
148.5
146.2
106.8
107.5
101.5
117.5
147.0
148.6
145.8
107.9
102.4
117.1
148.0
149.6
146.9
107.2
100.9
116.5
146.8
148.1
145.9
115.6
148.1
149.5
147.1
106.3
101.5
114.3
148.7
150.5
147.4
106.6
102.1
114.0
148.5
150.8
146.8
106.5
102.4
113.3
149.2
151.1
147.8
107.4
103.1
114.3
148.7
151.2
146.9
107.9
103.6
115.1
147.5
152.0
144.3
.50
1.60
7.07
.66
93.6
138.2
93.0
140.0
104.6
149.7
90.8
144.0
111.9
155.1
88.9
149.4
106.9
144.7
88.9
150.8
98.6
134.7
89.5
142.5
98.1
137.7
89.6
143.5
96.8
145.5
89.1
144.5
94.0
137.1
90.5
146.6
101.2
129.2
90.6
150.2
106.2
130.2
90.8
152.1
103.7
135.4
90.3
151.5
104.2
144.2
89.9
144.8
144.4
90.0
150.0
7.96
1 Mining and utilities .
Mining
2
Utilities
3
4 Manufacturing
Nondurable
5
Durable
6
142.7
105.4
116.4
109.1
150.2
145.7
102.4
117.2
145.8
107.0
117.9
146.6
105.0
120.2
108.8
153.8
151.7
147.2
105.9
123.6
111.5
150.1
147.9
104.2
123.8
111.9
150.2
147.3
97.1
123.5
111.4
152.4
123!2
111.1 111.0
122.3
151.7
146.6
109.2
122.5
111.3
150.7
148.3
99.9
123.2
150.7
145.4
101.5
119.7
109.9
151.7
148.8
110.2
146.3
104.7
119.4
152.8
153.4
154.0
183.8
152.0
96.0
174.4
59.4
188.5
157.5
95.0
177.5
61.5
188.0
158.1
98.0
177.5
60.2
193.0
159.0
98.0
175.9
62.9
194.6
158.5
96.3
175.0
62.9
198.5
159.2
97.0
176.4
200.1
159.3
97.3
178.0
61.4
199.0
158.2
96.9
180.5
60.3
200.5
159.9
97.9
182.3
60.5
199.9
162.2
98.3
182.3
60.8
200.6
161.5
97.7
183.6
202.7
159.6
98.3
183.8
202.8
161.8
60.2
60.2
99.8
184.1
59.9
135.5
170.2
123.9
137.2
170.8
123.9
136.9
169.0
122.9
136.5
135.3
168.4
122.6
136.2
168.7
123.5
87.2
73.2
124.8
186.5
181.6
87.3
72.9
125.2
187.5
181.9
89.2
75.4
125.4
186.7
181.4
90.3
75.9
125.5
187.8
183.7
89.2
75.4
124.7
88.5
75.7
123.9
183.2
181.5
122.0
135.5
119.7
134.2
116.4
131.3
110.4
133.2
114.2
131.8
112.7
123.3
110.1
124.3
109.6
155.9
163.0
114.5
157.1
164.3
114.7
158.4
165.7
117.1
159.6
166.0
119.6
159.0
164.1
118.5
157.8
162.9
117.8
141.3
163.0
116.4
144.3
162.9
134.9
134.2
135.3
136.3
136.0
.62
2.29
2.79
3.15
4.54
8.05
2.40
2.80
.53
110.1
110.2
61.2
24
25
32
2.30
1.27
2.72
137.6
139.4
165.4
124.7
143.0
165.4
125.1
139.9
166.3
126.6
132.8
164.8
125.4
133.4
165.8
125.5
135.1
122.6
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
89.4
78.2
120.9
170.7
124.6
175.4
180.8
88.4
75.9
123.8
183.0
90.1
77.0
123.1
184.7
182.2
93.2
82.2
124.5
178.7
180.9
91.1
79.1
124.5
180.1
90.0
77.6
125.1
177.8
180.9
181.7
181.6
182.2
29 Transportation equipment
37
371
30 Motor vehicles and parts
31 Aerospace and miscellaneous
transportation equipment.. 572-6.9
38
32 Instruments
33 Miscellaneous manufactures
39
9.13
5.25
132.2
117.4
135.2
122.9
136.8
125.5
136.7
124.9
136.4
123.4
134.8
120.4
136.4
3.87
2.66
1.46
152.4
154.4
107.1
151.9
160.4
108.4
152.2
159.1
152.7
161.0
111.8
154.0
161.3
107.6
154.4
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery ..
Electrical machinery
162.0
Utilities
34 Electric .
111.0
161.8
110.0
168.0
124.7
102.0
135.3
132.9
168.0
123.9
186.8
182.8
107.9
103.7
114.8
147.8
151.7
145.1
110.0
86.2
124! i
187.3
181.0
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total
517.5
145.9
148.4
149.4
150.1
150.0
150.5
151.6
151.7
152.5
151.8
152.5
152.1
150.9
151.5
36 Final
37 Consumer goods
38 Equipment
39 Intermediate
405.7
272.7
133.0
111.9
144.3
133.9
158.2
151.5
146.8
136.8
159.9
154.2
147.7
138.2
160.4
155.0
148.2
138.5
161.1
156.6
148.6
138.7
161.6
155.1
148.9
138.4
162.8
156.1
150.2
139.5
164.3
156.5
150.4
139.2
165.4
156.3
151.2
139.9
166.1
157.0
150.2
138.7
165.5
157.5
151.1
139.3
166.8
157.5
150.5
138.9
165.9
157.7
148.8
139.5
161.1
158.4
149.4
139.2
163.1
158.5
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
A51
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1989
1986
Item
1987
1988
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
3 2-or-more-family
1,750
1,071
679
1,535
1,024
511
1,456
994
462
1,486
1,052
434
1,403
989
414
1,230
870
360
1,334
954
380
1,347
905
442
1,308
874
434
1,281
906
375
1,328
927
401
1,319
946
373
1,356
961
395
4 Started
5
1-family
6
2-or-more-family
1,805
1,180
626
1,621
1,146
474
1,488
1,081
407
1,678
1,199
479
1,465
1,029
436
1,409
981
428
1,343
1,029
314
1,308
977
331
1,406
972
434
1,420
1,026
394
1,329
990
339
1,264
971
293
1,428
1,024
404
7 Under construction, end of period 1 .
8
1-family
9
2-or-more-family
1,074
583
490
987
591
397
919
570
350
957
602
355
951
594
357
942
586
356
924
579
345
911
572
339
914
572
342
918
576
342
902
565
337
895
568
327
899
569
330
1,756
1,120
636
1,669
1,123
546
1,530
1,085
445
1,537
1,141
396
1,610
1,189
421
1,459
1,050
409
1,552
1,115
437
1,442
1,041
401
1,355
964
391
1,372
965
407
1,439
1,040
399
1,360
952
408
1,312
978
334
244
233
218
232
212
207
198
205
202
178
194
185
191
748
357
672
365
675
366
700
369
621
375
555
377
607
377
653
380
647
377
738'
369'
726
365
652
366
649
364
10 Completed
11
1-family
12 2-or-more-family
13 Mobile homes shipped
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period
16
17
....
Price (thousands of dollars)2
Median
Units sold
Units sold
92.2
104.7
113.3
113.0
118.0
123.0
116.7
119.0
122.8
116.0'
122.7
121.5
127.9
112.2
127.9
139.0
138.6
145.3
149.0
144.7
145.1
153.6
140.3'
159.0
151.9
151.9
3,566
3,530
3,594
3,550
3,480
3,400
3,400
3,210
3,360
3,330
3,480
3,520
3,480
80.3
98.3
85.6
106.2
89.2
112.5
89.7
113.0
91.9
117.8
92.0
116.1
92.9
118.0
92.6
118.0
93.4
118.8
96.7
122.1
94.8
120.8
94.3
118.4
92.6
117.2
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold
(thousands of dollars)2
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
387,043
397,721
409,663 422,979r 416,597r 416,779r 411,891' 416,540' 412,523'
409,601
415,773
415,917
420,060
22 Private
23
Residential
24
Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
315,313
187,147
128,166
320,108
194,656
125,452
328,738 337,669' 333,169r 338,065' 332,537' 330,591' 329,035'
198,101 202,895r 200,454'' 202,083' 200,735' 196,984' 194,229'
130,637 134,774 132,715 135,982 131,802 133,607' 134,806'
328,046
194,257
133,789
331,528
193,565
137,963
329,418
191,776
137,642
332,043
193,639
138,404
13,747
56,762
13,216
44,441
13,707
55,448
15,464
40,833
14,931
58,104
17,278
40,324
15,890
59,350
17,976
41,558
15,098
58,749
17,484
41,384
15,698
60,653
17,634
41,997
16,245
55,581
16,645
43,331
15,945
56,796
17,343
43,523'
16,302
57,434
17,179
43,891'
16,390
56,499
16,792
44,108
17,560
57,706
18,443
44,254
18,010
57,265
17,945
44,422
18,314
58,040
18,072
43,978
71,727
3,868
22,971
4,646
40,242
77,612
4,327
25,343
5,162
42,780
80,922
3,579
28,524
4,474
44,345
85,310
3,440
30,792
4,121
46,957
83,428
3,433
27,936
4,742
47,317
78,714
3,740
26,091
4,210
44,673
80,420
2,054
27,772
3,068
47,526
85,130
3,870
27,432
6,053
47,775
81,914
4,324
27,321
4,699
45,570
81,555
3,264
26,128
4,535
47,628
84,246
3,689
27,167
4,653
48,737
86,499
4,226
27,445
4,976
49,852
88,017
3,251
26,863
5,791
52,112
79 Public
30
Military
31
Highway
37
Conservation and development...
Other
33
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
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
2.15
Domestic Nonfinancial Statistics • February 1990
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)
1988
1988
Nov.
1989
Mar.
June
Index
level
Nov.
19891
1989
1989
Nov.
Dec.
CONSUMER PRICES
Change from 1 month earlier
Sept.
July
Aug.
Sept.
Oct.
Nov.
2
(1982-84=100)
1 AH items
4.2
4.7
4.1
6.1
5.7
1.6
.2
.0
.2
.5
.4
125.9
2 Food
3 Energy items
4 All items less food and energy
5 Commodities
Services
6
5.3
-.1
4.4
3.6
4.9
5.6
4.8
4.4
2.9
5.1
3.0
5.6
24.8
3.8
2.0
4.3
2.9
-13.4
3.1
.3
4.5
.4
.1
.6
.2
-2.0
.2
-.3
.3
.2
-.9
.2
.4
.2
.4
4.9
4.2
5.4
8.2
10.2
5.2
4.1
5.9
.6
.5
.6
.4
.6
-.1
.4
.2
.5
126.9
93.2
131.3
121.6
137.0
3.3
4.6
-4.0
4.3
3.2
4.6
4.6
7.5
4.4
3.9
3.0
2.1
1.4
4.4
1.7
10.2
13.1
41.0
5.4
4.6
5.8
-1.3
31.8
5.7
4.5
-.3
-1.3
-16.8
2.6
4.8
-.1
-3.2
-.y
.v
-.4
.3
-7.3
.4'
.2'
.9
-.6
6.5
.6
1.0
1.4
.2
.2
-.3
-.1
.8
-3.3
.0
.3
114.8
120.2
64.5
125.9
120.6
4.9
7.2
3.1
1.8
4.5
6.7
8.7
5.5
2.9
.3
-1.1
-.7
-.4
-.2
-.3
.C
.4
.1
.1
.1
-.1
.0
112.1
120.1
13.3
-15.8
6.7
1.3
22.1
-1.0
-7.9
12.3
12.5
16.9
48.3
10.3
-17.8
23.6
-9.3
-2.2
-6.5
-.6
1.8
-1.2'
1.2'
-6.7
.8'
-.8
3.5
.3
-.6
.5
.3
1.7
.3
-2.3
109.4
76.8
134.3
-.4
.7
-.7
PRODUCER PRICES
7
8
9
10
11
(1982=100)
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12 Intermediate materials 3
13 Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
.4
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
A53
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1988
Account
1986
1987
1989
1988
Q3
Q4
Ql
Q2
Q3'
GROSS NATIONAL PRODUCT
1
Total
4,231.6
4,524.3
4,880.6
4,926.9
5,017.3
5,113.1
5,201.7
5,281.0
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2,797.4
406.0
942.0
1,449.5
3,010.8
421.0
998.1
1,591.7
3,235.1
455.2
1,052.3
1,727.6
3,263.4
452.5
1,066.2
1,744.7
3,324.0
467.4
1,078.4
1,778.2
3,381.4
466.4
1,098.3
1,816.7
3,444.1
471.0
1,121.5
1,851.7
3,508.1
486.1
1,131.4
1,890.6
659.4
652.5
435.2
139.0
296.2
217.3
699.9
670.6
444.3
133.8
310.5
226.4
750.3
719.6
487.2
140.3
346.8
232.4
771.1
726.5
493.2
142.0
351.3
233.2
752.8
734.1
495.8
142.5
353.3
238.4
769.6
742.0
503.1
144.7
358.5
238.8
775.0
747.6
512.5
142.4
370.1
235.1
779.1
751.7
519.6
146.2
373.4
232.1
6.9
8.6
29.3
30.5
30.6
34.2
44.6
41.5
18.7
40.8
27.7
19.1
27.4
23.6
27.4
19.8
-97.4
396.5
493.8
-112.6
448.6
561.2
-73.7
547.7
621.3
-66.2
556.8
623.0
-70.8
579.7
650.5
-54.0
605.6
659.6
-50.6
626.1
676.6
-45.1
628.5
673.6
872.2
366.5
505.7
926.1
381.6
544.5
968.9
381.3
587.6
958.6
367.5
591.0
1,011.4
406.4
604.9
1,016.0
399.0
617.0
1,033.2
406.0
627.2
1,038.9
402.7
636.2
4,224.8
1,686.7
724.2
962.5
2,119.3
425.6
4,495.0
1,785.2
777.6
1,007.6
2,304.5
434.6
4,850.0
1,931.9
863.6
1,068.3
2,499.2
449.5
4,882.3
1,955.8
884.0
1,071.8
2,520.3
450.8
4,998.7
1,987.4
888.5
1,098.9
2,570.0
459.9
5,085.4
2,030.9
894.7
1,136.2
2,620.8
461.3
5,174.3
2,079.1
905.2
1,173.9
2,667.5
455.1
5,253.6
2,096.3
930.1
1,166.2
2,728.1
456.6
6.9
1.2
5.6
29.3
22.0
7.2
30.6
25.0
5.6
44.6
41.4
3.2
18.7
32.0
-13.3
27.7
22.0
5.7
27.4
6.0
21.4
27.4
5.2
22.2
3,717.9
3,853.7
4,024.4
4,042.7
4,069.4
4,106.8
4,132.5
4,162.9
6
7
8
9
10
11
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
12
13
Change in business inventories
Nonfarm
14
15
16
Net exports of goods and services
Exports
Imports
17
18
19
Government purchases of goods and services
Federal
State and local
20
21
22
23
24
25
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
26
27
28
Change in business inventories
Durable goods
Nondurable goods
29
Total GNP in 1982 dollars
MEMO
NATIONAL INCOME
30
Total
3,412.6
3,665.4
3,972.6
4,005.7
4,097.4
4,185.2
4,249.6
4,287.3
31
32
33
34
35
36
37
Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
2,511.4
2,094.8
393.7
1,701.1
416.6
217.3
199.3
2,690.0
2,249.4
419.2
1,830.1
440.7
227.8
212.8
2,907.6
2,429.0
446.5
1,982.5
478.6
249.7
228.9
2,935.1
2,452.2
449.6
2,002.6
482.9
251.8
231.1
2,997.2
2,505.1
456.3
2,048.9
492.0
255.6
236.5
3,061.7
2,560.7
466.9
2,093.8
501.0
259.7
241.3
3,118.2
2,608.8
473.5
2,135.3
509.4
263.4
246.0
3,171.9
2,654.7
480.2
2,174.5
517.2
266.6
250.7
38
39
40
Proprietors' income 1
Business and professional 1
Farm 1
282.0
247.2
34.7
311.6
270.0
41.6
327.8
288.0
39.8
327.0
289.3
37.7
328.3
296.3
32.0
359.3
300.3
59.0
355.5
304.2
51.3
343.3
307.2
36.1
41
Rental income of persons 2
11.6
13.4
15.7
16.3
16.1
11.8
42
43
44
45
Corporate profits 1
Profits before tax
Inventory valuation adjustment
Capital consumption adjustment
282.1
221.6
6.7
53.8
298.7
266.7
-18.9
50.9
328.6
306.8
-25.0
46.8
330.9
314.4
-30.4
46.9
340.2
318.8
-20.1
41.5
316.3
318.0
-38.3
36.6
307.8
296.0
—20.7 R
32.3
46
Net interest
325.5
351.7
392.9
396.4
415.7
436.1
458.4
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
9.8
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
5.4
295.2
275.0
n.a.
26.5
471.5
A54
Domestic Nonfinancial Statistics • February 1990
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1989
1988
Account
1986
1987
1988
Q3
Q4
QL
Q2
Q3'
PERSONAL INCOME AND SAVING
1 Total personal income
3,526.2
3,777.6
4,064.5
4,097.6
4,185.2
4,317.8
4,400.3
4,455.9
2 Wage and salary disbursements
Commodity-producing industries
3
4
Manufacturing
Distributive industries
5
6
Service industries
7
Government and government enterprises
2,094.8
625.6
473.2
498.8
576.7
393.7
2,249.4
649.9
490.3
531.9
648.3
419.2
2,429.0
696.3
524.0
571.9
714.4
446.5
2,452.2
701.6
527.2
578.0
723.0
449.6
2,505.1
714 7
538.1
587.5
746.7
456.3
2,560.7
726.6
546.3
598.8
768.4
466.9
2,608.8
733.7
549.9
610.8
790.8
473.5
2,654.7
742.6
555.7
619.4
812.4
480.2
199.3
282.0
247.2
34.7
11.6
85.8
493.2
521.5
269.2
212.8
311.6
270.0
41.6
13.4
92.0
523.2
548.2
282.9
228.9
327.8
288.0
39.8
15.7
102.2
571.1
584.7
300.5
231.1
327.0
289.3
37.7
16.3
103.6
576.3
587.4
301.4
236.5
328.3
296.3
32.0
16.1
106.4
598.6
593.8
304.0
241.3
359.3
300.3
59.0
11.8
109.4
629.0
616.4
316.9
246.0
355.5
304.2
51.3
9.8
111.4
655.1
626.8
322.9
250.7
343.3
307.2
36.1
5.4
113.2
667.8
636.4
327.9
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income
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
161.9
172.9
194.9
196.4
199.6
210.0
213.0
215.4
3,526.2
3,777.6
4,064.5
4,097.6
4,185.2
4,317.8
4,400.3
4,455.9
512.9
571.7
586.6
585.9
597.8
628.3
652.6
649.1
20 EQUALS: Disposable personal income
3,013.3
3,205.9
3,477.8
3,511.7
3,587.4
3,689.5
3,747.7
3,806.8
21
LESS: Personal outlays
2,888.5
3,104.1
3,333.1
3,362.1
3,424.0
3,483.8
3,547.0
3,611.7
22 EQUALS: Personal saving
124.9
101.8
144.7
149.6
163.4
205.7
200.7
195.1
15,385.5
10,123.7
10,905.0
4.1
15,793.9
10,302.0
10,970.0
3.2
16,332.8
10,545.5
11,337.0
4.2
16,387.1
10,572.0
11,377.0
4.3
16,455.3
10,625.6
11,466.0
4.6
16,566.4
10,653.5
11,625.0
5.6
16,629.8
10,678.9
11,622.0
5.4
16,711.8
10,799.3
11,717.0
5.1
27 Gross saving
525.3
553.8
642.4
669.8
647.4
693.5
695.8
709.9
28
29
30
31
669.5
124.9
84.5
6.7
663.8
101.8
75.3
-18.9
738.6
144.7
80.3
-25.0
742.4
149.6
77.6
-30.4
769.3
163.4
81.7
-20.1
792.1
205.7
53.4
-38.3
793.7
200.7
52.0
—20.7r
809.7
195.1
49.3
n.a.
285.9
174.2
303.1
183.6
321.7
191.9
323.1
192.1
329.7
194.4
335.2
197.8
339.7
201.3
n.a.
n.a.
-144.1
-206.9
62.8
-110.1
-161.4
51.3
-96.1
-145.8
49.7
-72.7
-122.5
49.8
-121.9
-167.6
45.7
-98.7
-147.5
48.8
-97.9
-145.4
47.5
523.6
549.0
632.8
661.2
630.8
669.3
677.5
684.3
659.4
-135.8
699.9
-150.9
750.3
-117.5
771.1
-109.9
752.8
-122.0
769.6
-100.3
775.0
-97.5
779.1
-94.8
-1.8
-4.7
-9.6
-8.6
-16.6
-24.1
-18.3
-25.5
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1982 dollars)
23 Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
Capital consumption
32 Corporate
33 Noncorporate
allowances
34
Government surplus, or deficit ( - ) , national income and
product accounts
36
State and local
38 Gross private domestic
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
-99.8
-144.7
44.9
Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1989
Item credits or debits
1987
1986
Q3
1 Balance on current account
2 Not seasonally adjusted
3 Merchandise trade balance
4
Merchandise exports
5
Merchandise imports
Military transactions, net
6
7 Investment income, net
8 Other service transactions, net
9 Remittances, pensions, and other transfers
10 U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-133,249
-143,700
-126,548
-145,058
223,367
-368,425
-4,577
60,629
10,517
-4,049
-11,730
-159,500
250,266
-409,766
-2,856
71,151
10,585
-4,063
-10,149
-127,215
319,251
-446,466
-4,606
61,974
17,702
-4,279
-10,377
Q4
Ql
Q2
Q3"
-32,340
-36,926
-30,339
80,604
-110,943
-28,677
-28,191
-32,019
83,729
-115,748
-1,604
21,329
5,475
-1,090
-3,928
-30,390
-25,994
-28,378
87,919
-116,297
-1,498
15,527
5,428
-1,186
-2,340
-32,084
-31,888
-27,554
91,423
-118,977
-1,518
13,400
5,977
-22,687
-27,718
-27,751
91,569
-119,320
-968
21,096
7,077
-1,099
-2,557
-1,006
12,806
4,971
-1,088
-2,288
-1,011
-1,857
-2,024
997
2,999
1,961
3,413
1,049
-309
644
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
312
9,149
-3,566
-7,380
2,271
-4,000
-12,095
-5,9%
-246
1,501
-942
-509
2,070
7,588
474
1,025
-5,064
-35
202
-7,547
173
307
1,791
-188
316
-4,128
68
-159
-12,004
-211
337
-6,122
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
-97,953
-59,975
-7,396
-4,271
-26,311
-86,363
-42,119
5,201
-5,251
-44,194
-81,544
-54,481
-1,684
-7,846
-17,533
-32,467
-26,229
255
-1,592
-4,901
-38,332
-30,916
4,569
-3,047
-8,938
-28,367
-22,132
1,835
-2,568
-5,502
12,781
27,238
-2,954
-5,737
-5,766
-41,804
-20,702
35,594
34,364
-1,214
2,141
1,187
-884
45,193
43,238
1,564
-2,520
3,918
-1,007
38,882
41,683
1,309
-1,284
-331
-2,495
-2,234
-3,769
572
-232
1,703
-508
10,589
11,897
697
-232
-1,036
-737
7,477
4,634
721
-304
1,974
452
-5,201
-9,738
-97
417
3,620
597
11,246
12,068
190
-547
-1,117
652
186,011
172,847
89,026
2,450
-7,643
42,120
46,894
180,417
68,832
6,558
20,144
26,448
58,435
48,413
23,291
2,350
3,422
7,454
11,896
70,170
32,223
2,702
5,336
6,871
23,038
52,529
13,261
2,852
8,590
8,665
19,161
3,412
-21,422
-361
2,252
9,676
13,267
61,236
25,688
0
0
0
0
0
22 Change in foreign official assets in United States (increase,
23
24
25
26
27
+)
U.S. Treasury securities
Other U.S. government obligations
Other U.S. government liabilities
Other U.S. liabilities reported by U.S. banks 3
Other foreign official assets 5
28 Change in foreign private assets in United States (increase,
+)
29
30
31
32
33
,
U.S. bank-reported liabilities3
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in United States, net
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
0
79,783
-2,641
3,809
70,969
34,091
0
0
0
11,308
1,878
11,308
9,149
0
0
0
0
0
- io,138
-10,964
i3,034
11,082
11,432
-10,641
0
24,047
-4,556
-19,434
4,431
1,702
4,127
33,496
-2,311
-2,639
-5,115
28,603
1,878
312
0
-23,865
-2,425
35,807
2,476
-7,380
2,271
-4,000
-12,095
-5,9%
-5,618
11,793
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States (increase, +)
excluding line 25
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
33,453
47,713
40,166
-2,002
10,821
7,781
-9,327
-9,955
-3,109
-459
672
7,143
433
3,776
96
53
92
7
40
12
13
15
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.
-3,566
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 1990
3.11 U.S. FOREIGN TRADE1
Millions of dollars; monthly data are seasonally adjusted.
1989
1986
Item
1987
1988
Apr.
1
May
June
July
Aug.
Sept/
Oct."
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
227,158
254,073
322,426
30,759
30,455
31,286
30,468
30,562
30,680
31,010
2
G E N E R A L IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
Customs value
365,438
406,241
440,952
39,045
40,534
39,293
38,709
40,662
39,194
41,210
3
Trade balance
Customs value
-138,279
-152,169
-118,526
-8,286
-10,079
-8,007
-8,241
-10,101
-8,513
-10,201
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
1986
Type
1987
July
May
Aug.
Sept.
Oct.
Nov.p
43,186
Total
48,511
45,798
54,941
60,502
63,462
62,364
68,418
70,809
72,572
11,090
1
2
11,064
11,078
11,060
11,063
11,066
11,066
11,065
11,062
11,060
7,293
8,395
10,283
9,134
9,034
9,340
9,240
9,487
9,473
9,751
9,055
8,644
8,786
8,722
9,059
31,517
34,001
33,413
39,080
41,552
42,702
Gold stock, including Exchange
Stabilization Fund
2,3
3
Special drawing rights
4
Reserve position in International
Monetary Fund
11,947
11,730
11,349
8,513
5
Foreign currencies 4
12,856
17,322
13,088
26,234
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the 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 holdings and reserve position
in the I M F 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 BANKS1
Millions of dollars, end of period
1989
Assets
1986
1987
1988
May
1 Deposits
Assets held in custody
2
2 U.S. Treasury securities
3 Earmarked gold
July
Aug.
Sept.
Oct.
Nov/
287
244
347
428
275
371
265
325
252
307
155,835
14,048
195,126
13,919
232,547
13,636
232,004
13,612
229,914
13,545
233,170
13,530
238,007
13,516
235,597
13,506
230,804
13,460
231,059
13,458
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
A57
3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1
Millions of dollars, end of period
1989
Apr.
May
June
July
Aug.
Sept.
Oct.
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
11 Other assets
456,628
518,618
506,062
517,276
521,436
523,674
534,200
522,489'
520,845'
533,641
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
169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
171,136
128,567
13,459
29,110
305,483
113,824
96,830
16,101
78,728
177,987
134,026
13,040
30,921
302,808
116,506
94,042
16,095
76,165
177,445
132,380
14,218
30,847
303,720
115,913
94,902
16,709
76,196
179,615
133,135
15,744
30,736
310,426
117,438
95,621
16,948
80,419
177,299'
134,479'
15,225
27,595
299,265'
108,893'
92,465'
16,656'
81,251'
182,440'
142,339'
14,164
25,937
289,996'
104,683'
90,51(y
16,215'
78,588'
183,156
142,422
14,143
26,591
303,426
113,2%
93,357
16,721
80,052
29,110
38,064
37,223
40,657
40,641
42,509
44,159
45,925'
48,409'
47,059
12 Total payable in U.S. dollars
317,487
350,107
358,040
359,841
366,315
367,562
371,851
369,287'
359,924'
368,643
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
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
163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
163,964
124,268
12,539
27,157
178,298
86,767
50,815
11,467
29,249
169,7%
128,771
11,909
29,116
177,308
86,625
49,793
11,282
29,608
169,520
127,352
13,207
28,961
180,013
88,874
50,627
11,815
28,697
171,041
128,063
14,734
28,244
181,441
90,077
49,913
11,616
29,835
170,497
130,168
14,688
25,641
177,911'
83,036'
50,885'
11,774'
32,216'
174,628'
137,481'
13,217
23,930
164,461'
77,858'
46,786'
11,646
28,171
174,879
136,612
13,597
24,670
173,048
85,302
47,349
11,579
28,818
11,804
15,656
16,899
17,579
19,211
18,029
19,369
20,879'
20,835'
20,716
22 Other assets
United Kingdom
23 Total, all currencies
140,917
158,695
156,835
153,146
155,532
153,968
161,882
158,860'
157,673'
164,155
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
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
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
39,475
34,741
1,227
3,507
102,438
32,954
37,079
3,471
28,934
39,599
35,642
1,243
2,714
104,504
35,537
37,412
3,627
27,928
38,014
33,763
1,125
3,126
103,773
34,948
37,357
3,599
27,869
42,147
37,713
1,121
3,313
106,586
35,440
36,519
3,788
30,839
41,914
38,031
1,112
2,771
102,231'
32,392
36,073'
3,586
30,180
40,085
36,046
1,265
2,774
102,097'
32,611'
37,146
3,265
29,075
43,687
38,938
1,200
3,549
106,430
35,252
38,048
3,346
29,784
33 Other assets
6,810
10,477
10,358
11,233
11,429
12,181
13,149
14,715'
15,491'
14,038
34 Total payable in U.S. dollars
95,028
100,574
103,503
98,463
101,612
99,028
103,512
104,036'
99,238'
106,869
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
Banks
41
42 Public borrowers
Nonbank foreigners
43
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
38,012
33,252
964
3,796
60,472
28,474
18,494
2,840
10,664
36,772
33,499
872
2,401
56,227
25,389
17,680
2,6%
10,462
36,675
34,119
862
1,694
58,395
26,036
18,458
2,737
11,164
34,990
32,059
844
2,087
58,746
26,541
18,745
2,606
10,854
38,506
36,041
821
1,644
59,137
27,955
17,080
2,702
11,400
39,135
36,375
1,007
1,753
57,706'
25,368
18,298'
2,679
11,361
37,108
34,537
1,017
1,554
55,340'
25,542'
17,612
2,521
9,665
40,978
37,404
951
2,623
59,389
28,084
18,275
2,553
10,477
3,697
5,575
5,019
5,464
6,542
5,292
5,869
7,195'
6,790'
6,502
44 Other assets
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States
49 Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
52 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
142,592
160,321
170,639
172,324
173,137
171,780
172,789
165,401
164,684
164,836
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
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
105,273
68,969
11,563
24,741
60,103
26,261
22,641
5,374
5,827
111,823
73,627
10,807
27,389
53,984
21,962
21,184
5,280
5,558
109,800
70,735
12,116
26,949
54,537
22,324
21,202
5,540
5,471
107,831
67,417
13,712
26,702
57,135
24,462
21,591
5,405
5,677
106,693
69,404
13,294
23,995
50,808
16,802
20,688
5,407
7,911
111,043
76,426
12,141
22,476
45,962
14,688
20,162
5,435
5,677
109,910
75,900
11,954
22,056
47,214
16,961
19,579
5,289
5,385
4,539
4,841
6,926
6,948
7,330
7,443
7,823
7,900
7,679
7,712
136,813
151,434
163,518
166,389
166,869
165,676
167,259
160,821
160,274
159,643
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 1990
3.14—Continued
1989
Liability account
1986
1987
1988
Apr.
May
July
Aug.
Sept.
All foreign countries
57 Total, all currencies
456,628
518,618
506,062
517,276
521,436
523,674
534,200
522,489'
520,845'
533,641
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
31,629
152,465
83,394
15,646
53,425
30,929
161,390
87,606
20,355
53,429
28,511
185,577
114,720
14,737
56,120
30,278
179,292
109,164
14,307
55,821
29,425
178,821
110,579
13,564
54,678
28,116
179,858
113,395'
12,951
53,512'
28,882
177,706
110,326'
13,323
54,057'
29,524
177,485'
110,917'
13,269
53,299'
26,679
183,129'
121,003'
13,015
49,111
26,776
182,438
122,141
11,476
48,821
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
253,775
95,146
77,809
17,835
62,985
18,759
304,803
124,601
87,274
19,564
73,364
21,496
270,923
111,267
72,842
15,183
71,631
21,051
282,920
115,380
72,155
17,933
77,452
24,786
288,291
121,135
72,903
17,795
76,458
24,899
289,603
118,950
74,213
17,559
78,881
26,097
301,422
119,571
80,070
18,846
82,935
26,190
288,623'
113,352'
75,992'
17,591'
81,688'
26,857'
283,509'
104,382'
78,089'
17,349
83,689'
27,528'
295,624
114,607
76,420
19,361
85,236
28,803
69 Total payable in U.S. dollars . . .
336,406
361,438
367,483
372,788
376,474
378,331
381,879
379,771'
371,301'
384,809
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
28,466
144,483
79,305
14,609
50,569
26,768
148,442
81,783
18,951
47,708
24,045
173,190
107,150
13,468
52,572
25,970
166,666
100,897
12,781
52,988
25,411
166,134
102,643
11,944
51,547
24,129
167,217
105,074'
11,537
50,606'
24,914
163,771
100,726'
11,845
51,200'
25,483
165,984'
103,3%'
11,964
50,624'
22,927
170,438'
112,255'
11,837
46,346
22,260
170,320
114,226
10,273
45,821
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
156,806
71,181
33,850
12,371
39,404
6,651
177,711
90,469
35,065
12,409
39,768
8,517
160,766
84,021
28,493
8,224
40,028
9,482
169,758
87,716
28,445
9,591
44,006
10,394
173,228
90,123
29,567
9,255
44,283
11,701
175,393
90,850
29,686
9,852
45,005
11,592
181,005
91,713
31,216
11,176
46,900
12,189
175,327'
86,723'
32,342'
10,680
45,582'
12,977'
165,395'
77,516'
30,703
10,195
46,981'
12,541'
179,155
86,522
32,648
11,445
48,540
13,074
161,882
164,155
United Kingdom
81 Total, all currencies
140,917
158,695
156,835
153,146
155,532
158,860'
157,673'
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States .
86
Nonbanks
27,781
24,657
14,469
2,649
7,539
26,988
23,470
13,223
1,536
8,711
24,528
36,784
27,849
2,037
6,898
26,157
29,715
20,455
1,551
7,709
25,539
30,867
20,329
1,720
8,818
24,396
30,013
22,037'
1,648
6,328'
25,342
29,954
19,885'
1,852
8,217'
25,905
31,551
21,841'
1,767
7,943'
23,122
31,076
24,013
1,687
5,376
23,152
34,181
25,061
2,002
7,118
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
79,498
25,036
30,877
6,836
16,749
8,981
98,689
33,078
34,290
11,015
20,306
9,548
86,026
26,812
30,609
7,873
20,732
9,497
87,478
25,800
30,714
8,637
22,327
9,7%
88,985
26,867
30,925
8,946
22,247
10,141
88,381
24,974
31,066
8,650
23,691
11,178
94,335
26,556
33,047
9,586
25,146
12,251
88,661
24,326
30,790
8,868
24,677
12,743'
91,101
24,769
31,330
8,878
26,124
12,374'
93,700
26,936
30,688
10,132
25,944
13,122
93 Total payable in U.S. dollars
99,707
102,550
105,907
102,065
104,356
101,742
105,700
102,361'
110,358
94 Negotiable CDs
95 To United States
%
Parent bank
97
Other banks in United States .
98
Nonbanks
26,169
22,075
14,021
2,325
5,729
24,926
17,752
12,026
1,308
4,418
22,063
32,588
26,404
1,752
4,432
24,073
25,493
18,524
1,227
5,742
23,568
26,554
18,545
1,368
6,641
22,324
25,401
19,556'
1,393
4,452'
23,132
24,618
16,909'
1,477
6,232'
23,679
27,232
19,580'
1,502
6,150'
21,156
26,592
21,588
1,511
3,493
20,433
30,433
23,247
1,835
5,351
48,138
17,951
15,203
4,934
10,050
3,325
55,919
22,334
15,580
7,530
10,475
3,953
47,083
18,561
13,407
4,348
10,767
4,173
47,781
17,755
13,439
4,365
12,222
4,718
49,006
18,030
13,930
4,7%
12,250
5,228
48,491
16,467
13,545
5,579
12,900
5,526
52,179
18,388
14,173
6,131
13,487
5,771
49,913
17,060
13,578
5,825
13,450
6,091
48,557
16,673
12,331
5,532
14,021
6,056'
52,902
18,926
13,177
6,605
14,194
6,590
99 To foreigners
100 Other branches of parent bank
101
Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
153,968
106,915
Bahamas and Caymans
105 Total, all currencies
142,592
160,321
170,639
172,324
173,137
171,780
172,789
165,401
164,684
164,836
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
847
106,081
49,481
11,715
44,885
885
113,950
53,239
17,224
43,487
953
122,332
62,894
11,494
47,944
1,025
118,164
59,762
11,346
47,056
872
120,175
64,908
10,398
44,869
696
117,737
61,642
10,034
46,061
717
116,261
61,263
10,197
44,801
691
113,122
58,765
10,076
44,281
669
117,537'
64,859'
10,026
42,652
669
114,651
66,292
8,088
40,271
111 To foreigners
112 Other branches of parent bank
113
Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
34,400
12,631
8,617
2,719
10,433
1,264
43,815
19,185
10,769
1,504
12,357
1,671
45,161
23,686
8,336
1,074
12,065
2,193
50,606
27,655
8,203
1,722
13,026
2,529
48,989
26,478
8,233
1,164
13,114
3,101
50,477
27,763
8,322
1,102
13,290
2,870
52,881
29,085
8,309
1,223
14,264
2,930
48,769
25,370
9,016
1,081
13,302
2,819
43,892
20,207
9,273
928
13,484
2,586'
46,956
22,425
9,647
1,003
13,881
2,560
138,774
152,927
162,950
166,489
166,954
165,593
166,988
160,800
117 Total payable in U.S. dollars
160,133
160,028
Summary Statistics
A59
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1989
Item
1987
1988
Apr.
1 Total1
2
3
4
3
6
May
June
July
Aug.
Sept.'
Oct."
259,556
By area
Western Europe 1
8
9 Latin America and Caribbean
10 Asia
11
12 Other countries 6
7
299,677
307,667
313,637
306,420
302,048
307,369'
317,403
313,843
31,838
88,829
31,414
103,722
33,594
95,478
39,116
96,109
38,036
91,798
37,214
87,190
39,044'
87,734
37,958
88,325
36,098
85,775
122,432
300
16,157
149,056
523
14,962
161,923
534
16,138
161,081
538
16,793
160,013
542
16,031
160,462
545
16,637
163,281
549
16,761
173,238
553
17,329
173,934
557
17,479
124,620
4,961
8,328
116,098
1,402
4,147
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
125,097
9,584
10,099
145,504
1,369
7,501
125,584
10,156
7,524
156,264
1,119
6,485
129,254
9,994
7,168
158,564
1,065
7,053
126,222
9,938
6,091
156,073
1,182
6,371
122,502
9,604
5,925
155,372
1,271
6,830
126,361
9,424
7,166
155,811'
949
7,113
134,140
9,560
7,986
157,100
810
7,257
133,174
8,989
8,924
154,308
867
7,024
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
1988
Item
1985
1986
1989
1987
Dec.
1 Banks' own liabilities
2 Banks' own claims
5 Claims of banks' domestic customers 2
15,368
16,294
8,437
7,857
580
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
29,702
26,180
14,129
12,052
2,507
55,438
51,271
18,861
32,410
551
Mar.
June
Sept.
74,836
68,983
25,100
43,884
364
76,262
72,812
25,846
46,966
376
68,483
62,808
23,825
38,983
723
72,560
70,711
23,983
46,728
2,558
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A60
International Statistics • February 1990
3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1
Payable in U.S. dollars
Millions of dollars, end of period
1989
Holder and type of liability
1986
1987
1988
Apr.
May
June
July
Aug.
Sept.'
Oct."
1 All foreigners
540,9%
618,874
684,444
682,850
678,059
672,049
663,725
679,568'
693,954
700,787
2 Banks' own liabilities
Demand deposits
3
4
Time deposits
Other.
5
6
Own foreign offices 4
406,485
23,789
130,891
42,705
209,100
470,070
22,383
148,374
51,677
247,635
513,840
21,863
152,020
51,525
288,432
516,025
22,325
156,982
56,413
280,304
512,334
21,920
154,768
58,822
276,824
510,524
21,224
152,801
61,317
275,183
501,541
21,351
149,355
64,636
266,200
516,458r
19,718
155,461'
63,489'
277,790'
530,162
21,551
157,048
56,167
295,397
540,512
21,093
162,300
65,359
291,760
134,511
90,398
148,804
101,743
170,604
115,056
166,825
106,916
165,725
102,734
161,525
98,893
162,184
99,365
163,1 l l r
99,683
163,792
99,254
160,275
95,291
15,417
28,6%
16,776
30,285
16,426
39,121
17,278
42,631
18,541
44,451
17,078
45,555
16,893
45,925
17,260'
46,168
17,051
47,487
16,344
48,640
11 Nonmonetary international and regional
organizations8
5,807
4,464
3,224
4,002
3,415
3,617
4,240
4,418
4,945
6,281
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 O t h e r .
3,958
199
2,065
1,693
2,702
124
1,538
1,040
2,527
71
1,183
1,272
3,216
163
1,502
1,551
2,980
76
1,202
1,702
2,695
32
1,254
1,409
2,716
41
918
1,756
3,402
66
1,079
2,257
3,347
90
1,702
1,554
4,274
53
1,615
2,606
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates 6
18 Other negotiable and readily transferable
instruments
19 Other
1,849
259
1,761
265
698
57
786
77
435
95
922
181
1,524
345
1,016
107
1,598
84
2,007
539
1,590
0
1,497
0
641
0
693
16
305
35
731
10
1,179
0
909
1
1,479
35
1,454
14
7 Banks' custody liabilities5
U.S. Treasury bills and certificates 6
8
9
Other negotiable and readily transferable
instruments 7
10 Other
9
20 Official institutions
103,569
120,667
135,136
135,225
129,835
124,404
126,778
126,506'
122,593
122,497
21 Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other 3
25,427
2,267
10,497
12,663
28,703
1,757
12,843
14,103
27,004
1,915
9,657
15,432
33,036
1,782
12,439
18,815
31,738
1,761
11,144
18,833
31,891
1,801
9,924
20,166
33,960
1,947
9,937
22,077
33,248'
1,625
8,837'
22,786'
31,465
2,026
8,994
20,445
35,995
2,057
11,877
22,062
25 Banks' custody liabilities5
26
U.S. Treasury bills and certificates 6
27
Other negotiable and readily transferable
instruments 7
28
Other
78,142
75,650
91,965
88,829
108,132
103,722
102,189
%,109
98,097
91,798
92,513
87,190
92,818
87,734
93,258
88,325
91,127
86,350
86,502
81,465
2,347
145
2,990
146
4,130
280
5,875
205
6,114
185
5,080
244
4,821
263
4,735
198
4,588
189
4,734
303
29 Banks10
351,745
414,280
458,672
453,554
454,442
451,337
441,639
457,351'
475,733
478,644
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other 3
35
Own foreign offices 4
310,166
101,066
10,303
64,232
26,531
209,100
371,665
124,030
10,898
79,717
33,415
247,635
408,854
120,422
9,950
80,155
30,318
288,432
401,646
121,342
10,560
80,796
29,987
280,304
399.823
122,999
11,162
78,901
32,936
276.824
395,603
120,421
9,677
77,231
33,513
275,183
385,773
119,574
10,145
74,929
34,499
266,200
400,863'
123,073'
9,101
80,606'
33,367'
277,790'
415,467
120,070
10,695
80,599
28,776
295,397
417,806
126,047
9,887
83,525
32,635
291,760
36 Banks' custody liabilities5
37
U.S. Treasury bills and certificates 6
38
Other negotiable and readily transferable
instruments
39
Other
41,579
9,984
42,615
9,134
49,818
7,602
51,908
6,921
54,619
7,114
55,734
7,759
55,865
7,674
56,488'
7,838
60,265
9,077
60,838
9,258
5,165
26,431
5,392
28,089
5,725
36,491
5,051
39,936
5,686
41,819
5,314
42,662
5,326
42,866
5,284'
43,365
5,050
46,138
4,415
47,165
40 Other foreigners
79,875
79,463
87,411
90,068
90,366
92,691
91,068
91,293'
90,684
93,364
41 Banks' own liabilities
42
Demand deposits
43
Time deposits 2
44
Other 3
66,934
11,019
54,097
1,818
67,000
9,604
54,277
3,119
75,456
9,928
61,025
4,503
78,126
9,820
62,245
6,060
77,792
8,921
63,521
5,351
80,335
9,714
64,392
6,229
79,092
9,218
63,571
6,303
78,944'
8,926
64,938'
5,080
79,883
8,739
65,752
5,392
82,437
9,0%
65,284
8,057
45 Banks' custody liabilities5
46
U.S. Treasury bills and certificates 6
47
Other negotiable and readily transferable
instruments 7
48
Other
12,941
4,506
12,463
3,515
11,956
3,675
11,942
3,809
12,574
3,725
12,356
3,763
11,976
3,612
12,349
3,413
10,801
3,743
10,928
4,028
6,315
2,120
6,898
2,050
5,929
2,351
5,658
2,474
6,436
2,412
5,953
2,639
5,566
2,797
6,332
2,604
5,934
1,125
5,741
1,159
7,4%
7,314
6,425
5,554
5,625
5,337
5,261
5,199'
5,238
5,162
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
Data
3.17—Continued
1989
Area and country
1986
1987
1988
Apr.
May
June
July
Aug.
Sept.'
Oct."
1 Total
540,996
618,874
684,444
682,850
678,059
672,049
663,725
679,568'
693,954
700,787
2 Foreign countries
535,189
614,411
681,219
678,848
674,644
668,432
659,485
675,150'
689,010
694,506
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
235,989
1,155
10,022
2,180
284
24,762
6,772
672
14,599
5,316
1,559
903
5,494
1,274
34,179
1,012
115,954
529
8,598
138
591
230,769
1,608
10,115
1,615
397
25,629
6,967
927
12,959
5,610
1,783
824
5,795
1,730
29,239
1,051
111,492
465
11,519
91
953
228,141
1,405
8,819
1,642
432
24,199
7,791
1,172
12,527
5,870
1,479
985
5,419
1,552
28,448
785
112,622
478
11,887
193
435
226,058
1,505
8,624
1,179
450
23,864
9,198
889
13,951
4,875
1,485
1,089
5,085
1,478
28,806
737
107,300
558
14,322
164
499
226,264
1,417
8,949
1,348
435
22,290
8,715
862
12,892
5,029
1,522
1,419
5,910
1,248
28,581
1,053
109,601
604
13,655
175
559
226,491'
1,404
9,286
1,956'
46C
24,864
7,651'
828
14,597
5,106
1,453
1,945
5,390
2,002
28,931'
1,022'
104,18c
691
13,824
201
699'
221,836
1,345
10,088
1,265
526
22,%5
8,345
797
14,492
4,944
1,698
2,206
5,277
1,706
28,975
1,086
102,379
774
12,162
244
562
232,571
1,224
10,819
1,079
464
23,934
9,326
842
14,426
5,418
1,342
2,291
4,985
1,671
29,552
1,199
107,137
857
15,030
338
638
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe 1
22
U.S.S.R
23 Other Eastern Europe
26,345
30,095
21,040
23,024
18,353
17,514
17,472
16,958
17,960
16,885
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
Venezuela
42
43 Other
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
220,372
5,006
74,767
2,344
4,005
81,494
2,210
4,204
12
1,082
1,082
160
14,480
4,975
7,414
1,275
1,582
9,048
5,234
266,803
7,804
86,863
2,621
5,304
109,507
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
266,446
6,280
86,057
2,373
5,554
111,969
2,933
4,173
10
1,376
1,272
222
14,367
5,769
4,355
1,763
2,263
9,565
6,145
270,431
6,459
90,979
2,451
5,302
111,270
2,988
4,033
15
1,285
1,232
188
14,060
6,072
4,454
1,724
2,344
9,435
6,140
266,509
6,320
82,104
2,356
5,026
116,607
2,733
4,127
10
1,351
1,251
294
14,211
6,316
4,278
1,761
2,429
9,431
5,903
260,712
7,397
84,526
2,269
5,396
107,579
2,683
4,235
9
1,411
1,297
227
13,679
6,434
4,357
1,770
2,152
9,500
5,790
275,418'
8,047
90,317
2,209'
5,539
115,731'
2,739
4,365
10
1,376
1,279
231
13,769'
6,071
4,400
1,778
2,121
9,398'
6,039'
284,891
8,446
90,622
2,124
5,892
122,539
2,765
4,199
14
1,363
1,293
233
14,981
6,0%
4,424
1,828
2,340
9,520
6,213
282,955
8,068
93,119
2,436
6,079
117,350
3,013
4,887
10
1,342
1,275
206
14,658
5,948
4,382
1,910
2,214
9,550
6,505
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries
Other
108,831
121,288
147,230
148,676
147,353
148,339
144,073
145,505'
153,524
150,085
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
54,322
1,637
1,085
1,345
13,988
12,788
1,892
26,058
11,738
699
1,180
1,461
73,957
2,541
1,163
1,236
12,083
13,223
1,809
28,284
11,403
1,787
1,154
967
72,689
3,023
973
1,165
12,098
13,324
1,652
26,928
12,215
1,009
1,306
1,103
70,468
3,166
991
1,162
13,505
13,851
1,432
27,025
12,132
812
1,232
1,088
71,130
3,047
984
1,274
13,612
14,571
1,522
27,125
11,346
871
1,0%
1,058
68,670
3,556
936
1,254
12,368
14,271
1,700
25,427'
12,268'
940
1,042
953
70,616'
2,907
1,083
1,776
12,524
14,270
1,804
24,119
12,292
875
1,042
1,041
78,824
3,037
1,055
1,430
13,026
14,979
1,989
22,399
11,826
1,133
1,144
2,221
72,700
3,099
1,148
1,692
13,443
17,292
57 Africa
58
Egypt
59 Morocco
60 South Africa
61
Zaire
62
Oil-exporting countries
63 Other
4,021
706
92
270
74
1,519
1,360
3,945
1,151
194
202
67
1,014
1,316
3,991
911
68
437
85
1,017
1,474
3,665
721
82
256
73
1,017
1,516
3,802
702
68
324
92
879
1,737
3,904
748
67
188
98
1,100
1,702
3,618
738
66
231
92
942
1,548
3,265
549
72
201
87
897
1,459
3,536
574
%
246
81
1,036
1,502
3,486
577
71
219
71
1,046
1,501
64 Other countries
65 Australia
66 All other
5,118
4,196
922
4,070
3,327
744
6,165
5,293
872
6,267
5,471
796
6,563
5,700
863
6,108
5,192
916
7,346
6,620
726
7,513
6,721
792
7,261
6,517
744
8,524
7,972
551
67 Nonmonetary international and regional
organizations
International
68
Latin American regional
69
70 Other regional
5,807
4,620
1,033
154
4,464
2,830
1,272
362
3,224
2,503
589
133
4,002
2,548
981
472
3,415
2,456
564
395
3,617
2,830
613
175
4,240
2,881
%1
397
4,418
3,084
690
644
4,945
3,390
1,201
353
6,281
4,991
890
400
24 Canada
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 1990
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
1989
Area and country
1986
1987
1988
Apr.
May
June
July
Aug.
Sept.
Oct.'
1 Total
444,745
459,877
491,275
495,060
490,811
490,395
480,634
488,635'
499,122
507,930
2 Foreign countries
441,724
456,472
489,205
493,225
487,029
486,918
476,846
485,511'
496,200
505,250
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
102,348
793
9,397
717
1,010
13,548
2,039
462
7,460
2,619
934
477
1,853
2,254
2,718
1,680
50,823
1,700
619
389
852
117,048
485
8,518
480
1,065
13,243
2,326
433
7,936
2,547
455
374
1,823
1,977
3,895
1,233
65,708
1,390
1,152
1,255
754
111,170
805
8,102
770
1,214
16,524
3,529
561
4,803
2,735
551
281
2,624
2,164
4,540
1,005
56,057
1,369
1,415
1,346
775
112,975
764
8,435
470
1,280
16,092
3,959
595
5,627
3,183
567
371
2,209
2,158
3,975
910
58,076
1,366
966
1,155
820
112,240
809
7,780
774
1,175
15,574
3,695
632
6,813
2,025
667
328
2,190
1,946
5,485
886
56,891
1,359
1 161
1,212
838
106,451
854
7,558
562
1,433
15,970
3,460
602
5,994
1,950
796
283
2,092
2,003
4,123
891
53,463
1,406
974
1,227
810
107,359'
549
7,510
768
1,401
16,415
3,316'
624
5,494
1,451'
665
264
1,738
2,046
4,479
960
54,811'
1,346
1 247
1,456
819
111,181
480
7,404
557
1,233
16,249
3,463
634
6,043
1,992
644
252
1,684
2,286
5,018
1,028
57,253
1,338
1 249
1,574
799
109,049
630
7,400
513
1,707
15,441
3,369
650
5,577
1,897
647
258
1,733
2,087
4,575
1,021
56,442
1,373
1 478
1,453
796
3 Europe
4
Austria
5
Belgium-Luxembourg
Denmark
6
Finland
7
8 France
Germany
9
10 Greece
Italy
11
12 Netherlands
13 Norway
Portugal
14
Spain
15
16 Sweden
Switzerland
17
18 Turkey
19 United Kingdom
Yugoslavia
20
71
22
U.S.S.R
Other Eastern Europe
23
24 Canada
345
948
21,006
25,368
18,889
19,150
16,072
16,089
14,493
15,073
14,758
13,722
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
214,789
11,996
64,587
471
25,897
50,042
6,308
2,740
1
2,286
144
188
29,532
980
4,744
1,329
963
10,843
1,738
214,233
11,826
67,006
483
25,735
55,790
5,217
2,944
1
2,075
198
212
24,637
1,321
2,536
1,013
910
10,733
1,597
219,970
11,516
75,665
361
25,947
54,424
5,224
2,661
2
2,025
210
266
24,077
1,009
2,433
947
876
10,659
1,668
217,962
11,381
70,552
449
25,785
57,960
5,266
2,600
1
1,944
207
265
24,038
999
2,475
938
832
10,600
1,670
219,267
10,840
66,611
391
25,675
64,870
4,841
2,581
1
1,894
200
286
23,653
1,183
2,438
874
896
10,551
1,482
217,096
10,724
70,468
463
25,824
59,437
4,770
2,523
9
1,932
188
270
23,356
1,162
2,320
867
854
10,269
1,659
215,830'
10,730'
68,113
522
25,597
61,270'
4,803'
2,504'
1,918'
203'
272
23,164'
1,021'
2,030
870
866
10,024
1,922
219,665
10,460
70,906
1,104
24,999
63,292
4,707
2,477
1
1,904
196
282
22,813
1,078
1,833
823
899
10,064
1,827
219,837
10,444
71,422
804
25,026
62,774
4,603
2,800
1
1,864
188
270
22,693
1,137
1,831
851
903
10,270
1,957
96,126
106,096
130,906
134,439
131,578
130,578
130,235
137,705'
140,702
151,724
787
2,681
8,307
321
723
1,634
59,674
7,182
2,217
578
4,122
7,901
968
4,592
8,218
510
580
1,363
68,658
5,148
2,071
496
4,858
8,635
762
4,184
10,148
560
674
1,136
90,162
5,219
1,876
849
6,213
9,122
816
3,952
8,293
425
726
1,052
97,666
5,198
1,839
1,018
5,237
8,217
952
3,715
8,855
411
690
1,045
93,447
5,338
1,810
975
5,522
8,818
920
4,058
8,557
537
671
1,019
91,086
5,615
1,763
1,058
6,550
8,745
644
3,946
8,153
477
645
961
91,764
5,774
1,607
1,061
5,550
9,654
575
3,356
8,806'
547
614
902
96,125'
6,007
1,543
1,130'
8,879
9,221'
590
3,357
10,338
638
615
857
97,706
5,686
1,617
1,216
8,618
9,465
599
2,773
10,067
616
685
1,185
108,367
5,748
1,549
1,058
8,357
10,722
57 Africa
58
Egypt
Morocco
59
South Africa
60
Zaire
61
Oil-exporting countries
62
Other
63
4,650
567
598
1,550
28
694
1,213
4,742
521
542
1,507
15
1,003
1,153
5,718
507
511
6,087
541
532
17
1,587
1,664
6,032'
494
535
1,713
16
1,608
1,666'
6,028
501
524
19
1,474
1,778
6,075
534
531
1,746
17
1,503
1,744
6,066
577
518
17
1,523
1,479
6,084
541
538
1,753
19
1,504
1,729
20
1,629
1,645
5,763
475
538
1,679
15
1,546
1,510
64 Other countries
Australia
65
66
All other
3,294
1,949
1,345
3,129
2,100
1,029
2,410
1,517
894
2,409
1,505
905
2,359
1,167
1,192
2,670
1,307
1,363
2,505
1,518
987
3,512
2,499
1,013
3,867
2,952
915
5,155
4,301
854
67 Nonmonetary international and regional
organizations
3,021
3,404
2,071
1,835
3,782
3,477
3,787
3,124
2,922
2,680
25 Latin America and Caribbean
Argentina
26
Bahamas
27
Bermuda
28
Brazil
29
British West Indies
30
31
Chile
Colombia
32
Cuba
33
34
Ecuador
Guatemala 4
35
36 Jamaica
Mexico
37
Netherlands Antilles
38
Panama
39
40
Peru
Uruguay
41
Venezuela
42
Other Latin America and Caribbean
43
44
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.
1,681
1,742
1,702
1,709
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
1989
Type of claim
1986
1987
1988
Apr.
May
495,060
63,248
259,693
131,104
69,283
61,821
41,016
490,811
63,789
257,271
130,488
67,407
63,081
39,263
June
July
Aug/
480,634
62,694
248,716
128,924
68,888
60,036
40,300
488,435
62,758
252,058
132,478
72,576
59,903
41,340
Sept/
1 Total
478,650
497,635
538,799
2 Banks' own claims on foreigners
Foreign public borrowers
3
4
Own foreign offices 2
5
Unaffiliated foreign banks
Deposits
6
7
Other
8
All other foreigners
444,745
64,095
211,533
122,946
57,484
65,462
46,171
459,877
64,605
224,727
127,609
60,687
66,922
42,936
491,275
62,700
257,405
129,487
65,898
63,588
41,684
33,905
4,413
37,758
3,692
47,524
8,289
49,531
11,153
52,154
11,259
24,044
26,6%
25,700
22,017
24,286
5,448
7,370
13,535
16,362
16,609
25,706
23,107
19,568
16,825
12,829
43,984
40,857
45,391
Oct."
9 Claims of banks' domestic customers 3 ...
11
551,277
539,927
490,395
62,636
258,020
128,391
68,306
60,085
41,349
499,122
62,055
265,561
131,077
72,642
58,435
40,429
507,934
63,068
270,097
130,441
71,977
58,464
44,325
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 States5
47,897
49,491
46,687
48,549r
49,634
47,447
n.a.
parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 Bulletin,
p. 550.
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Maturity; by borrower and area
1985
1986
1989
1987
Dec.
3
4
5
6
7
8
9
10
11
17
13
14
15
16
17
18
19
June
Sept. p
227,903
1
?,
Mar.
By borrower
Maturity of 1 year or less 2
Foreign public borrowers
All other foreigners
Maturity over 1 year2
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3
Maturity of over 1 year2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3
232,295
235,130
233,280
231,454
231,468
236,346
160,824
26,302
134,522
67,078
34,512
32,567
160,555
24,842
135,714
71,740
39,103
32,637
163,997
25,889
138,108
71,133
38,625
32,507
172,730
26,602
146,128
60,550
35,315
25,235
168,377
24,135
144,242
63,077
37,922
25,155
167,441
23,688
143,753
64,028
38,050
25,978
169,240
24,218
145,022
67,106
41,863
25,242
56,585
6,401
63,328
27,966
3,753
2,791
61,784
5,895
56,271
29,457
2,882
4,267
59,027
5,680
56,535
35,919
2,833
4,003
56,031
6,282
58,004
46,188
3,337
2,888
57,878
5,115
53,268
45,675
3,610
2,831
58,355
5,693
50,717
45,309
3,601
3,765
52,384
6,202
52,198
51,188
3,510
3,757
7,634
1,805
50,674
4,502
1,538
926
6,737
1,925
56,719
4,043
1,539
777
6,6%
2,661
53,817
3,830
1,747
2,381
4,664
1,922
47,548
3,613
2,301
501
4,507
2,309
49,790
3,699
2,292
480
4,608
2,592
50,133
3,815
2,408
472
8,839
2,440
48,574
4,197
2,472
584
1. Reporting banks include all kinds of depository institutions besides commerrial banks, as well as some brokers and dealers.
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
A63
A64
International Statistics • February 1990
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2
Billions of dollars, end of period
1987
Area or country
1985
1988
1989
1986
Sept.
1 Total
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept."
389.1
386.5
387.9
382.4
371.4
352.2
354.3
346.8
345.8
339.4r
345.7
147.0
9.4
12.3
10.5
9.7
3.8
2.8
4.4
63.3
6.8
24.1
156.6
8.4
13.6
11.6
9.0
4.6
2.4
5.8
70.9
5.2
25.1
154.8
8.1
13.6
10.5
6.8
4.8
2.6
5.4
72.0
4.6
26.4
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
156.8
9.1
11.8
11.8
7.4
3.3
2.1
5.1
71.7
4.7
29.7
151.0
9.2
10.9
10.6
6.3
3.2
1.9
5.6
70.4
5.3
27.6
148.9
9.5
10.3
9.2
5.6
2.9
1.9
5.2
67.6
4.9
31.8
153.1
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
35.3
145.7
8.6
11.2
10.2
5.2
2.8
2.3
5.1
65.4
4.0
30.9
144.7r
7.8
10.8
10.6
6.1
2.8
1.8
5.3
64.4r
5.1
30.1
146.2
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.8
5.9
30.8
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
30.3
1.6
2.4
1.6
2.6
2.9
1.3
5.8
2.0
2.0
3.2
5.0
26.1
1.7
1.7
1.4
2.3
2.4
.9
5.8
2.0
1.5
3.0
3.4
26.3
1.8
1.6
1.4
1.9
2.0
.9
7.4
1.9
1.6
2.9
2.9
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
26.4
1.6
1.4
1.0
2.3
1.9
.5
8.9
2.0
1.9
2.8
2.0
24.0
1.6
1.1
1.2
2.1
1.9
.4
7.2
1.8
1.7
2.8
2.2
23.0
1.6
1.2
1.3
2.1
2.0
.4
6.3
1.6
1.9
2.7
1.8
21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8
21.0
1.4
1.1
1.0
2.1
1.6
.4
6.6
1.3
1.1
2.2
2.4
21.2
1.7
1.4
1.0
2.3
1.8
.6
6.2
1.2
1.1
2.1
1.9
20.7
1.4
1.1
1.1
2.3
1.4
.4
6.9
1.1
1.0
2.1
2.0
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30 African countries
21.5
2.1
9.0
3.0
5.4
2.0
19.4
2.2
8.7
2.5
4.3
1.8
19.2
2.1
8.3
2.0
5.0
1.8
17.4
1.9
8.1
1.9
3.6
1.9
17.6
1.9
8.1
1.8
3.9
1.9
17.0
1.8
8.0
1.8
3.5
1.9
17.9
1.8
7.9
1.8
4.6
1.9
16.6
1.7
7.9
1.7
3.4
1.9
16.2
1.6
7.9
1.7
3.3
1.7
16.0
1.5
7.5
1.9
3.4
1.6
16.2
1.5
7.3
2.0
3.5
1.9
105.0
99.6
98.0
97.8
94.4
91.8
87.2
85.3
85.4
83.1
80.8
8.9
25.5
7.0
2.6
24.3
1.8
3.5
9.5
25.3
7.1
2.1
24.0
1.4
3.1
9.4
25.1
7.1
2.0
24.7
1.2
2.8
9.5
24.7
6.9
2.0
23.5
1.1
2.8
9.6
23.8
6.6
2.0
22.4
1.1
2.8
9.5
23.7
6.4
2.2
21.1
.9
2.6
9.3
22.4
6.3
2.1
20.4
.8
2.5
9.0
22.4
5.6
2.1
18.8
.8
2.6
8.4
22.7
5.7
1.9
18.0
.7
2.7
7.9
22.0
5.1
1.7
17.5
.6
2.5
7.6
20.8
4.9
1.6
17.0
.6
2.9
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4
France
5 Germany
6
Italy
Netherlands
7
8
Sweden
9
Switzerland
10
United Kingdom
11 Canada
12 Japan
31 Non-OPEC developing countries
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.5
4.5
1.2
1.6
9.3
2.4
5.7
1.4
1.0
.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7
.3
6.0
1.9
1.3
5.0
1.6
5.4
.7
.7
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.4
6.1
2.1
1.0
5.7
1.5
5.1
1.0
.7
.4
4.9
2.3
1.0
5.9
1.5
4.9
1.1
.8
.2
3.2
2.0
1.0
6.0
1.7
4.7
1.2
.8
.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9
.5
4.9
2.6
.9
6.1
1.7
4.4
1.0
.8
.3
5.2
2.4
.8
6.6
1.6
4.4
1.0
.8
.3
5.0
2.7
.7
6.5
1.7
4.0
1.3
1.0
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
1.0
.9
.1
1.9
.7
.9
.1
1.6
.6
.9
.1
1.3
.6
.9
.0
1.3
.5
.9
.1
1.2
.6
.9
.1
1.2
.5
.8
.0
1.2
.4
.9
.0
1.1
.5
.9
.0
1.1
.6
.9
.0
1.1
.5
.8
.0
1.0
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
4.4
.1
2.4
1.9
3.5
.1
2.0
1.4
3.6
.4
1.9
1.2
3.2
.3
1.8
1.1
3.1
.3
1.9
1.0
3.3
.4
1.9
1.0
3.1
.4
1.8
1.0
3.6
.7
1.8
1.1
3.5
.7
1.7
1.1
3.4
.6
\.r
I.I
3.6
.8
1.7
1.2
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama 5
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
64.0
21.5
.7
12.2
2.2
6.0
.1
11.5
9.8
.0
61.5
22.4
.6
12.3
1.8
4.0
.1
11.1
9.2
.0
63.7
25.7
.6
11.9
1.2
3.7
.1
12.3
8.1
.0
54.5
17.3
.6
13.5
1.2
3.7
.1
11.2
7.0
.0
51.5
15.9
.8
11.6
1.3
3.2
.1
11.3
7.4
.0
43.0
8.9
1.0
10.3
1.2
3.0
.1
11.6
6.9
.0
47.3
12.9
.9
11.9
1.2
2.7
.1
10.5
7.0
.0
44.3
11.1
.9
12.9
1.0
2.6
.1
9.6
6.1
.0
48.4
15.8
1.1
11.9
.9
2.3
.1
9.6
6.8
.0
43. r
11.0
.7
10.8
.9
1.9
.1
10.4
7.3
.0
49.4
11.5
1.3
15.5
1.0
1.5
1
10.7
7.8
.0
66 Miscellaneous and unallocated 7
16.9
19.8
22.3
23.2
21.5
22.2
26.7
22.6
25.1
27.4
28.5
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
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
1989
1988
Type, and area or country
1985
1986
1987
Mar.
June
Sept.
Dec.
Mar.
June
1 Total
27,825
25,587
28,302
29,792
30,107
32,196
33,417
36,986
36,389'
2 Payable in dollars
3 Payable in foreign currencies
24,296
3,529
21,749
3,838
22,785
5,517
24,012
5,780
24,805
5,302
26,967
5,229
27,831
5.586
31,195
5,790
31,415'
4,975
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
13,600
11,257
2,343
12,133
9,609
2,524
12,424
8,643
3,781
14,139
10,145
3,994
13,894
10,234
3,660
14,877
11,283
3,594
14,917
11,049
3,868
17,164
13,084
4,080
16,454'
12,692'
3,762
14,225
6,685
7,540
13,039
1,186
13,454
6,450
7,004
12,140
1,314
15,878
7,305
8,573
14,142
1,737
15,653
6,454
9,200
13,867
1,786
16,213
6,768
9,446
14,571
1,642
17,319
6,480
10,839
15,684
1,635
18,500
6,454
12,045
16,782
1,718
19,822
6,921
12,901
18,111
1,711
19,935
6,228'
13,708
18,722
1,213
7,700
349
857
376
861
610
4,305
7,917
270
661
368
542
646
5,140
8,320
213
382
551
866
558
5,557
9,377
251
408
553
990
691
6,301
9,030
282
371
503
862
638
6,201
10,295
339
372
488
996
687
7,243
9,712
289
267
548
879
1,163
6,418
12,143
320
249
372
933
954
9,121
10,849
357
274
470
834
936
7,799
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
839
399
360
394
412
431
650
616
544
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,184
1,123
4
29
1,843
15
3
1,944
614
4
32
1,146
22
0
1,189
318
0
25
778
13
0
1,452
289
0
0
1,099
15
2
1,448
250
0
0
1,154
26
0
1,057
238
0
0
812
2
0
1,239
184
0
0
645
1
0
677
189
0
0
471
15
0
1,216'
165
0
0
621
17
0
27
28
29
Asia
Japan
Middle East oil-exporting countries
1,815
1,198
82
1,805
1,398
8
2,451
2,042
8
2,836
2,375
11
2,928
2,331
11
3,088
2,435
4
3,312
2,563
3
3,722
2,950
1
3,841
3,082
11
30
31
Africa
Oil-exporting countries 3
12
0
1
1
4
1
5
3
2
1
3
1
1
0
5
3
3
2
32
Allother 4
50
67
100
75
74
3
2
2
0
4,074
62
453
607
364
379
976
4,446
101
352
715
424
385
1,341
5,505
132
426
908
423
559
1,588
5,619
154
414
810
457
527
1,722
5,722
147
408
791
508
482
1,771
6,688
206
438
1,185
647
486
2,110
7,347
170
459
1,699
591
417
2,063
7,772
134
574
1,361
668
457
2,444
7,812'
116
542'
1,178'
687
456
2,698'
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,449
1,405
1,301
1,392
1,167
1,109
1,218
1,152
1,119
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,088
12
77
58
44
430
212
924
32
156
61
49
217
216
864
18
168
46
19
189
162
980
19
325
59
14
164
122
1,035
61
272
54
28
233
140
997
19
222
58
30
177
204
1,118
49
286
95
34
179
177
1,262
35
426
102
31
197
179
1,660
34
388
538
42
181
184
48
49
50
Asia
Japan
,
Middle East oil-exporting countries •
6,046
1,799
2,829
5,080
2,042
1,679
6,565
2,578
1,964
5,883
2,508
1,062
6,279
2,659
1,320
6,632
2,763
1,298
6,910
3,091
1,386
7,435
3,048
1,526
6,938'
2,698'
1,430
51
52
Africa
Oil-exporting countries 3
587
238
619
197
574
135
575
139
626
115
477
106
578
202
706
272
768
253
53
All other 4
982
980
1,068
1,204
1,383
1,415
1,328
1,496
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).
1,639'
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 1990
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1988
Type, and area or country
1985
1986
1989
1987
Mar.
June
Sept.
Dec.
Mar.
June
1 Total
28,876
36,265
30,964
31,089
37,641
38,114
33,412
31,482
34,007r
2 Payable in dollars
3 Payable in foreign currencies
26,574
2,302
33,867
2,399
28,502
2,462
29,026
2,063
35,613
2,028
35,695
2,419
31,164
2,249
29,254
2,227
31,832'
2,175
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
20,363
14,903
13,775
1,128
5,460
4,646
814
20,326
12,697
12,121
576
7,629
6,509
1,120
26,274
19,492
18,775
718
6,781
5,886
895
27,011
19,079
18,145
934
7,932
6,990
942
21,482
15,763
14,744
1,019
5,719
4,995
724
19,613
14,733
13,886
847
4,881
4,007
874
22,027'
17,023r
16,143'
879
5,004'
4,187'
818
i i Commercial claims
12 Trade receivables
13 Advance payments and other claims
9,986
8,696
1,290
9,992
8,783
1,209
10,600
9,535
1,065
10,763
9,650
1,113
11,367
10,332
1,036
11,103
10,109
993
11,930
10,845
1,085
11,868
10,604
1,264
11,980'
10,791'
1,189'
14
15
9,333
652
9,530
462
10,081
519
10,397
366
10,952
415
10,560
542
11,425
505
11,361
507
11,502'
478
6,929
10
184
223
161
74
6,007
10,744
41
138
116
151
185
9,855
9,531
7
332
102
350
65
8,467
9,805
15
308
92
333
54
8,789
11,512
16
181
168
335
105
10,430
10,537
49
278
123
356
84
9,321
9,942
10
224
138
344
215
8,659
9,119
11
230
180
383
203
7,801
8,536'
155
191
223'
290
70
7,292'
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
y
Payable in dollars
10
Payable in foreign currencies
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
3,260
4,808
2,844
2,669
2,913
3,612
2,338
2,210
2,611
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,846
2,698
6
78
4,571
180
48
9,291
2,628
6
86
6,078
174
21
7,012
1,994
7
63
4,433
172
19
6,483
2,329
43
86
3,503
154
34
10,854
4,176
87
46
6,045
146
27
11,814
4,064
188
44
7,055
133
27
8,128
1,847
19
47
5,729
151
21
7,216
2,173
25
49
4,549
117
25
9,298'
1,875
125
78
6,810'
114
31
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
731
475
4
1,317
999
7
879
605
8
1,294
1,133
5
876
646
5
927
737
5
799
603
4
928
685
8
1,219'
822'
7
34
35
Africa
Oil-exporting countries 3
103
29
85
28
65
7
53
7
60
9
95
9
106
10
89
8
80
8
21
28
33
24
58
26
169
51
284
3,533
175
426
346
284
284
898
3,725
133
431
444
164
217
999
4,180
178
650
562
133
185
1,073
4,170
193
552
637
150
173
1,059
4,694
158
684
773
172
262
1,095
4,295
171
542
613
145
183
1,179
5,010
176
671
611
208
322
1,306
4,901
201
752
643
156
246
1,282
4,889'
200
767
639
191
218
1,333
36
37
38
39
40
41
42
43
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,023
934
936
1,166
937
977
974
1,100
1,168
45
46
47
48
49
30
31
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,753
13
93
206
6
510
157
1,857
28
193
234
39
412
237
1,930
19
170
226
26
368
283
1,930
14
171
209
24
374
274
2,067
13
174
232
25
411
304
2,104
12
161
234
22
463
266
2,229
36
229
298
21
457
226
2,100
34
234
277
23
476
211
2,082'
14
236
313'
29
428
229
52
33
34
Asia
Japan
Middle East oil-exporting countries 2
2,982
1,016
638
2,755
881
563
2,915
1,158
450
2,853
1,107
408
2,994
1,168
446
3,029
963
437
2,955
934
441
3,090
1,032
421
3,095'
982
429'
55
36
Africa
Oil-exporting countries 3
437
130
500
139
401
144
419
126
425
136
425
137
435
122
386
95
405'
111
57
All other 4
257
222
238
225
250
273
328
290
341'
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
1989
1989
Transactions, and area or country
1987
1988
Jan.Oct.
Apr.
May
July
June
Aug.
Sept/
Oct."
17,115
15,084
22,097
20,939
19,588
17,040
22,350
20,988
U.S. corporate securities
STOCKS
249,122
232,849
1 Foreign purchases
2 Foreign sales
181,185
183,185
183,611
171,520
14,101
14,241
17,904
16,846
24,311
20,640
3 Net purchases, or sales ( - )
16,272
-2,000
12,090
-141
1,058
3,671
2,031
1,158
2,548
1,363
4 Foreign countries
16,321
-1,825
12,345
-134
1,060
3,689
2,047
1,141
2,600
1,340
1,932
905
-70
892
-1,123
631
1,048
1,318
-1,360
12,896
11,365
123
365
-3,350
-281
218
-535
-2,243
-954
1,087
1,238
-2,474
1,365
1,922
188
121
2,174
-148
-704
211
-2,529
4,056
-267
3,604
3,157
3,196
3,091
104
376
181
168
17
-125
-141
287
-66
120
-345
-28
-16
10
-7
-293
-123
-215
-76
-293
494
-75
391
206
784
763
418
-15
-155
131
-114
329
168
168
1,679
1,201
1,215
16
40
778
75
-79
12
-23
545
8
108
456
729
626
2
-34
-110
-251
-238
-64
-344
772
14
250
553
423
424
22
-11
1,459
-5
-65
37
64
893
-265
601
111
633
611
24
37
-107
-265
-117
226
-244
-34
-140
149
112
1,138
975
-6
193
-176
-255
-18
-17
17
-52
23
105,856
86,363
95,611
9,736
8,329
10,856
10,044
10,943
8,602
10,930
20 Foreign sales
78,312
58,395
69,541
5,270
8,776
9,043
7,526
9,281'
6,796
6,332
21 Net purchases, or sales ( - )
27,544
27,968
26,070
4,466
-447
1,813
2,518
1,662'
1,807
4,598
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
-48
-6
-1
50
-2
BONDS 2
19 Foreign purchases
22 Foreign countries
23
24
25
26
27
28
29
30
31
32
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
26,804
28,510
25,789
4,465
-570
1,690
2,550
1,686'
1,801
4,540
21,989
194
33
269
1,587
19,770
1,296
2,857
-1,314
2,021
1,622
16
-61
17,243
143
1,344
1,514
505
13,088
711
1,931
-178
8,900
7,686
-8
-89
16,332
380
-89
667
272
14,276
994
2,650
-356
5,924
3,719
21
225
3,102
27
135
51
90
2,252
115
219
3
990
608
4
33
-55
93
-170
9
-114
665
59
136
-100
-615
-722
0
5
2,132
6
-162
395
-110
1,881
-188
271
-613
83
-67
1,976
121
-53
-22
81
1,937
79
300
36
53
-25
3
103
-58'
-35
-121
96
13
-259'
76
62
43'
1,574
1,167
5
-17
1,461
78
-33
28
-27
1,372
155
233
20
-108
-179
-3
42
2,426
-41
113
30
74
1,950
175
247
135
1,553
1,263
0
4
740
-542
281
1
122
123
-32
-23
6
58
1
4
Foreign securities
1,081
-1,918
-10,482
-947
-1,322
-2,077
-748
-1,70c
-639
-1,361
95,458
94,377
75,211
77,128
83,549
94,031
6,686
7,633
7,748
9,070
9,111
11,188
7,595
8,343
9,488'
11,188'
8,476
9,115
10,043
11,404
-7,946
199,089
207,035
-7,221
217,932
225,153
-6,314
194,694
201,008
-196
15,525
15,721
-107
17,242
17,350
-1,524
21,016
22,540
-1,414
20,206
21,621
1,005'
24,092'
23,087'
-1,842
18,331
20,173
-890
21,260
22,150
43 Net purchases, or sales (—), of stocks and bonds . . . .
-6,865
-9,138
-16,796
-1,143
-1,430
-3,601
-2,163
-694'
-2,481
-2,251
44 Foreign countries
-6,757
-9,619
-16,686
-1,350
-1,633
-3,401
-2,315
-880'
-1,913
-1,913
-12,101
-4,072
828
9,299
89
-800
-7,632
-3,735
1,384
985
-54
-567
-17,249
-3,043
836
3,239
25
-494
-1,757
194
197
70
10
-64
-1,520
-555
-90
700
13
-180
-3,876
-699
27
1,191
3
-47
-2,370
-692
-76
805
12
7
-853'
-25C
313
327'
-4
-414
-2,088
-201
-61
414
-3
26
-2,535
655
218
-242
12
-21
-108
480
207
203
-200
152
37 Stocks, net purchases, or sales ( - ) 3
38
39
Foreign purchases
Foreign sales
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
45
46
47
48
49
50
Europe
Canada
Latin America and Caribbean
Africa
Other countries
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 securities sold abroad by U.S. corporations organized to finance direct investments
-111
186
-568
-338
abroad.
3. As a result of the merger of a U.S. and U.K. company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data above.
A68
International Statistics • February 1990
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1989
Country or area
1987
1989
1988
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct. p
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
25,587
48,868
45,247
29
7,043
-5,202
-1,317
21,979
4,616r
-2,150
30,889
48,206
44,667
291
5,520
-5,319
-773
22,406
5,699'
-3,399
3 Europe 2
4
Belgium-Luxembourg
5 Germany
6
Netherlands
7
Sweden
Switzerland 2
8
9
United Kingdom
10 Other Western Europe
Eastern Europe
11
12 Canada
23,716
653
13,330
-913
210
1,917
3,975
4,563
-19
4,526
14,353
923
-5,268
-356
-323
-1,074
9,674
10,786
-10
3,761
29,211
927
4,521
-804
1,091
2,232
15,011
6,254
-21
82
-1,814
-87
-693
-643
398
440
-1,298
74
-5
114
4,498
88
-179
-638
-69
-83
3,873
1,511
-5
157
-1,305
13
-1,106
-674
647
378
-133
-423
-6
-478
4,357
82
2,622
100
110
-361
1,024
786
-5
-533
15,191
413
2,503
1,304
241
-748
9,863
1,614
0
1,028
2,494
216
510
302
-50
374
339
802
0
-373
-2,268
90
137
-1,200
140
-187
-1,049
-199
0
150
13 Latin America and Caribbean
14 Venezuela
15 Other Latin America and Caribbean
16 Netherlands Antilles
17
18 Japan
19 Africa
20 All other
-2,192
150
-1,142
-1,200
4,488
868
-56
407
713
-109
1,130
-308
27,606
21,752
-13
1,786
8
184
-258
81
15,063
2,344
68
236
-133
-18
-231
117
1,743
2,624
32
350
-179
0
-78
-101
1,734
1,646
-3
-687
643
1
-14
656
-5,577
-7,780
66
1,332
839
71
104
665
-4,954
-5,360
-5
-477
-280
120
217
-617
7,118
3,009
-48
-603
23r
29
-506'
500
2,857''
2,402'
0
698
-1,439
72
34
-1,545
-96
1,330
13
240
21 Nonmonetary international and regional organizations
International
22
Latin America regional
23
-5,302
-4,387
3
661
1,106
-31
580
281
231
-262
-252
-21
1,523
1,340
70
117
-253
191
-544
-546
3
-427
-576
75
-1,083 r
-719 r
-228
1,249
1,158
160
Memo
24 Foreign countries 2
Official institutions
25
26
Other foreign 2
30,889
31,064
-176
48,206
26,624
21,582
44,667
23,991
20,676
291
-842
1,133
5,520
-1,068
6,588
-5,319
449
-5,768
-773
2,819
-3,592
22,406
9,957
12,449
5,699''
799'
4,900''
-3,399
-990
-2,409
-3,142
16
1,963
1
8,813
0
-471
0
-299
0
670
0
422
0
3,677
0
695r
0
-2,178
0
2 Foreign countries
77
28
2
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.
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, 1989
Rate on Dec. 31, 1989
6.0
10.25
49.0
12.47
10.5
June 1989
Oct. 1989
Mar. 1981
Dec. 1989
Oct. 1989
Month
effective
Month
effective
Month
effective
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Rate on Dec. 31, 1989
Country
Country
Country
France
Germany, Fed. Rep. of.
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
10.25
6.0
13.5
4.25
7.0
Oct. 1989
Oct. 1989
Mar. 1989
Dec. 1989
Oct. 1989
8.0
6.0
June 1983
Oct. 1989
8.0
Norway
Switzerland
United Kingdom 2
Venezuela
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
1989
Country, or type
1987
1988
1989
June
1
2
3
4
5
6
7
8
9
10
Eurodollars
United Kingdom
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan
July
Aug.
Sept.
Oct.
Nov.
Dec.
7.07
9.65
8.38
3.97
3.67
7.85
10.28
9.63
4.28
2.94
9.16
13.87
12.20
7.04
6.83
9.28
14.17
12.35
6.92
7.09
8.85
13.91
12.24
7.00
6.92
8.71
13.86
12.30
6.99
7.01
8.85
13.99
12.32
7.37
7.42
8.67
15.03
12.29
8.08
7.63
8.42
15.07
12.35
8.22
7.68
8.39
15.07
12.34
8.06
8.14
5.24
8.14
11.15
7.01
3.87
4.72
7.80
11.04
6.69
3.96
7.28
9.27
12.44
8.65
4.73
7.11
8.89
12.35
8.51
4.46
7.07
9.05
12.46
8.46
4.71
7.15
8.95
12.52
8.44
4.80
7.53
9.20
12.40
8.66
4.88
8.08
9.89
12.63
9.51
5.25
8.40
10.41
12.67
9.81
5.71
8.47
10.71
12.83
10.03
5.80
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 • February 1990
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar
1989
Country/currency
1987
1988
1989
July
1
2
3
4
5
6
Australia/dollar^
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/punt 2
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malaysia/ringgit
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 2
Aug.
Sept.
Oct.
Nov.
Dec.
70.137
12.649
37.358
1.3259
3.7314
6.8478
78.409
12.357
36.785
1.2306
3.7314
6.7412
79.186
13.236
39.409
1.1842
3.7673
7.3210
75.658
13.308
39.560
1.1891
3.7314
7.3527
76.345
13.570
40.310
1.1758
3.7314
7.4938
77.271
13.733
40.841
1.1828
3.7314
7.5872
77.421
13.140
39.197
1.1749
3.7314
7.2781
78.295
12.860
38.403
1.1697
3.7314
7.1138
78.586
12.241
36.544
1.1613
4.1825
6.7610
4.4037
6.0122
1.7981
135.47
7.7986
12.943
148.79
4.1933
5.9595
1.7570
142.00
7.8072
13.900
152.49
4.2963
6.3802
1.8808
162.60
7.8008
16.213
141.80
4.2699
6.4105
1.8901
163.84
7.8040
16.416
141.26
4.3504
6.5085
1.9268
166.26
7.8078
16.609
138.43
4.4219
6.5855
1.9502
169.03
7.8078
16.745
136.71
4.2817
6.3339
1.8662
165.88
7.8081
16.819
142.50
4.2619
6.2225
1.8300
164.97
7.8140
16.925
144.73
4.1231
5.9391
1.7378
160.32
7.8102
16.932
151.65
1,297.03
144.60
2.5186
2.0264
59.328
6.7409
141.20
1,302.39
128.17
2.6190
1.9778
65.560
6.5243
144.27
1,372.28
138.07
2.7079
2.1219
59.354
6.9131
157.53
1,367.39
140.42
2.6809
2.1318
57.537
6.9478
158.31
1,384.24
141.49
2.6825
2.1726
59.217
7.0480
161.15
1,404.18
145.07
2.6980
2.1992
59.144
7.1264
163.36
1,369.24
142.21
2.6945
2.1072
55.937
6.9502
159.08
1,343.83
143.53
2.7028
2.0652
56.301
6.9010
157.65
1,291.93
143.69
2.7032
1.9619
59.458
6.7021
152.34
2.1059
2.0385
825.94
123.54
29.472
6.3469
1.4918
31.753
25.775
163.98
2.0133
2.2773
734.52
116.53
31.820
6.1370
1.4643
28.636
25.312
178.13
1.9511
2.6215
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.9589
2.6909
669.84
118.73
34.764
6.4653
1.6281
25.816
25.771
162.68
1.9604
2.7247
671.13
120.64
36.276
6.5481
1.6605
25.685
25.912
159.47
1.9769
2.7882
672.73
122.14
39.572
6.6103
1.6865
25.737
26.012
157.15
1.9622
2.6403
673.86
118.77
40.018
6.4580
1.6302
25.739
25.868
158.74
1.9588
2.6295r
674.94
116.58
40.017
6.4306
1.6189
26.029
25.877
157.26
1.9183
2.5679
677.66
112.24
40.018
6.2920
1.5686
26.139
25.778
159.65
96.94
92.72
98.60
99.12
100.44
101.87
MEMO
31 United States/dollar 3
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
98.92
97.99
94.88
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
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
. ..
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL RELEASES—List
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables, details do not add to totals because
of rounding.
Published Semiannually, with Latest Bulletin Reference
SPECIAL TABLES—Published
Issue
December 1989
Page
A84
Issue
Anticipated schedule of release dates for periodic releases
Page
Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
December 31, 1988
March 31, 1989
June 30, 1989
September 30, 1989
August
December
January
February
1989
1989
1990
1990
A78
All
All
All
Terms of lending at commercial banks
August 1988
November 1988
February 1989
May 1989
January
April
June
November
1989
1989
1989
1989
All
All
A84
A73
Assets and liabilities of U.S. branches and agencies of foreign banks
September 30, 1988
December 31, 1988
March 31, 1989
June 30, 1989
May
June
August
November
1989
1989
1989
1989
All
A90
A84
A78
Pro forma balance sheet and income statements for priced service operations
September 30, 1987
March 31, 1988
March 31, 1989
June 30, 1989
February
August
September
February
1988
1988
1989
1990
A80
A70
All
A78
tables begin
Special
on page A72.
All
Special Tables • February 1990
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2
Consolidated Report of Condition, September 30, 1989
Millions of dollars
Banks with foreign offices 3 ' 4
Item
Banks with domestic
offices only
Total
Total
1 Total assets6
2 Cash and balances due from depository institutions
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
Currency and coin
5
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks
Foreign
Domestic
Over 100
3,207,227
1,854,651
429,598
1,480,646
966,354
386,222
328,281
235,754
85,087
n.a.
n.a.
34,391
97,887
18,389
117,469
1,867
n.a.
n.a.
20,870
94,569
163
118,285
83,221
70,954
12,266
13,520
3,318
18,227
64,473
29,617
21,618
7,999
20,787
3,171
10,897
28,054
<
n.a.
Under 100
<
n.a.
MEMO
9
Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United S t a t e s ) . . . .
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
12
U.S. Treasury securities and U.S. government agency and corporation
obligations
N
U.S. Treasury securities
14
U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
15
participation in pools of residential mortgages
All other
16
17 Securities issued by states and political subdivisions in the United States
18
Taxable
19
Tax-exempt
20
Other domestic debt securities
All holdings of private certificates of participation in pools of
21
residential mortgages
77
All other
Foreign debt securities
23
24 Equity securities
25
Marketable
76
Investments in mutual funds
27
Other
7.8
Less: Net unrealized loss
29
Other equity securities
30 Federal funds sold and securities purchased under agreements to resell
31
Federal funds sold
Securities purchased under agreements to resell
32
33 Total loans and lease financing receivables, gross
34
LESS: Unearned income on loans
35 Total loans and leases (net of unearned income)
36
LESS: Allowance for loan and lease losses
37
LESS: Allocated transfer risk reserves
38
EQUALS: Total loans and leases, net
Total loans, gross, by category
39 Loans secured by real estate
Construction and land development
40
41
Farmland
42
1 4 family residential properties
43
Revolving, open-end loans, extended under lines of credit
All other loans
44
45
Multifamily (5 or more) residential properties
46
Nonfarm nonresidential properties
47 Loans to depository institutions
48
To commercial banks in the United States
49 To other depository institutions in the United States
50 To banks in foreign countries
13,193
9,507
859,683
341,203
206,011
200,902
112,142
134,643
49,340
85,303
136,655
63,542
73,113
84,608
n a.
n a.
1,717
200
1,772
124
1,648
1,777
65,849
19,454
40,400
680
39,720
26,306
32,886
40,227
37,966
814
37,152
21,698
16,147
n a.
18,367
1,036
17,331
n a.
1,689
26,395
27,346
3,977
1,462
444
1,156
137
2,514
0
1,777
25,878
783
230
8
222
0
553
1,689
24,617
1,468
3,194
1,232
435
934
137
1,961
1,614
20,084
592
3,991
2,259
866
1,560
167
1,732
488
7,237
n a.
1,443
1,045
959
187
101
398
129,795
110,523
19,272
2,029,919
15,195
2,014,724
52,568
213
1,961,943
65,325
50,011
15,314
1,184,601
6,789
1,177,812
39,029
213
1,138,570
687
n.a.
n.a.
211,791
2,228
209,563
n.a.
n.a.
n.a.
64,638
n.a.
n.a.
972,810
4,561
968,250
n.a.
n.a.
n.a.
41,397
37,808
3,589
633,756
6,226
627,530
10,145
0
617,384
23,073
22,704
369
211 562
2,180
209,382
3.393
1
205,988
740,727
f
370,204
22,965
268,751
38,124
4,736
132,410
19,398
113,012
6,903
86,579
5,298
4,641
595
62
101,772
7,940
9,523
56,054
2,824
53,230
1,882
26,373
543
n a.
n a.
n a.
n.a.
n.a.
2,643,869
1,442,982
n.a.
552,131
239,086
33,076
358,772
n.a.
n.a.
137,509
50,289
87,220
2,866
950
1,916
116,598
n.a.
9 ;,505
2,654
95,851
n.a.
67,566
19,654
42,172
804
41,368
28,083
3,790
53,716
n a.
9,410
4,766
2,268
2,902
405
4,644
8,228
n.a.
n.a.
n.a.
56,069
n a.
n a.
n.a.
T
50,228
22,244
2,476
25,507
T
22,529
1,594
274
20,661
347,239
89,931
2,238
148,452
26,261
122,191
10,958
95,660
27,699
20,650
2,202
4,847
31,713
614,228
n.a.
n.a.
3,505
n.a.
n a.
5,529
431,678
349,526
82,151
911
328
583
227
101,549
22,033
79,516
549
63
486
5,302
330,129
327,493
2,636
362
264
98
7,347
140,146
139,796
350
1,413
n.a.
n.a.
18,837
42,405
n a.
n a.
1 181
n a.
n a.
385,003
119,758
265,245
162,006
47,037
114,969
13,289
n.a.
n.a.
148,717
n.a.
n.a.
180,561
69,966
110,595
42,436
2,755
39,681
61 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
67, Taxable
63
Tax-exempt
64 All other loans
65
Loans to foreign governments and official institutions
66
Other loans
67
Loans for purchasing and carrying securities
68
All other loans
41,974
1,346
40,628
120,671
n.a.
n a.
n a.
n.a.
25,551
817
24,734
108,443
30,763
77,680
n.a.
n.a.
303
121
182
46,864
29,413
17,451
n.a.
n.a.
25,248
696
24,552
61,579
1,350
60,229
17,786
42,443
14,610
464
14,146
10,245
230
10,014
1,571
8,444
1,813
65
1,748
1,984
n a.
n a.
n a.
n a.
69
70
71
72
73
74
75
76
77
36,029
37,652
46,796
12,718
2,967
28,344
n.a.
5,320
101,281
30,052
36,551
24,940
6,321
2,188
27,958
n.a.
3,019
74,938
3,516
18,831
26,536
17,719
n.a.
n.a.
n.a.
n.a.
38,312
n.a.
n.a.
5,386
943
15,171
3,918
730
369
n.a.
2,085
18,979
591
158
6,684
2,478
48
17
n.a.
216
7,363
51
5?,
53
54
55
56
57
58
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
59
Credit cards and related plans
Other (includes single payment and installment)
60
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Intangible assets
Other assets
T
1
|
1
|
1
A
n.a.
1
1
k
1
1
n.a.
1
I
•
Commercial Banks
A73
4.20—Continued
Banks with foreign offices
Total
Foreign
4
Domestic
Banks with domestic
offices only
Over 100
Under 10(
78 Total liabilities, limited-life preferred stock, and equity capital
3,207,227
1,854,651
n.a.
n.a.
966,354
386,222
79 Total liabilities7
80
Limited-life preferred stock
3,003,906
1,756,880
429,465
1,383,008
896,082
350,944
86
0
n. a.
n.a.
81 Total deposits
82
Individuals, partnerships, and corporations
83
U.S. government
84
States and political subdivisions in the United States
85
Commercial banks in the United States
86
Other depository institutions in the United States
87
Banks in foreign countries
88
Foreign governments and official institutions
89
Certified and official checks
90
All other 8
2,452,920
1,331,751
A
323,438
188,462
i
n.a.
n.a.
17,731
n.a.
91 Total transaction accounts
92
Individuals, partnerships, and corporations
93
U.S. government
94
States and political subdivisions in the United States
95
Commercial banks in the United States
96
Other depository institutions in the United States
97
Banks in foreign countries
98
Foreign governments and official institutions
99
Certified and official checks
100
All other
Federal funds purchased and securities sold under agreements to repurchase.
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and I B F s . .
All other liabilities
Total equity capital 9
134
135
136
137
138
139
341,313
312,687
533
23,084
1,743
978
n.a.
n.a.
2,229
58
n.a.
311,049
261,513
1,534
8,866
18,923
3,192
6,873
806
9,343
n.a.
207,041
182,083
1,127
10,669
6,185
1,238
122
20
5,597
n.a.
87,977
77,981
428
6,148
892
279
n.a.
n.a.
2,229
20
n.a.
237,187
190,117
1,515
6,421
18,923
3,192
6,872
804
9,343
n.a.
697,265
657,267
813
30,284
6,454
704
5,751
1,289
702
28
674
454
n.a.
130,633
111,356
1,098
5,031
6,185
1,225
122
20
5,597
n.a.
572,815
536,221
236
32,374
2,627
164
2,463
1,016
59
57
3
282
n.a.
47,446
41,572
416
2,047
891
270
n.a.
n.a.
2,229
20
253,336
234,706
105
16,937
851
n.a.
n.a.
700
n.a.
n.a.
n.a.
n.a.
38
205,514
135,343
70,171
n a.
89,647
28,065
16,448
n a.
63,757
97,771
786
n. a.
n. a.
n. a.
36,404
4,992
n.a.
n a.
n. a.
n.a.
204,727
n.a.
n.a.
21,698
53,243
23,074
n.a.
17,280
n.a.
n.a.
61,005
31,236
29,769
4,839
32,079
369
2,675
n.a.
15,259
70,190
3,080
1,417
1,664
650
1,176
17
173
n.a.
4,535
35,274
711
282
46,985
43,474
12,609
4,234
1,282
42,896
17,995
11,491
7,456
n.a.
17,468
1,282
1,188
1,054
24,149
9,905
n.a.
n.a.
269,599
167,996
101,595
n.a.
122,902
28,452
19,295
n.a.
83,551
203,235
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
MEMO
140
141
142
143
144
145
146
779,856
718,304
1,363
43,042
8,812
2,254
181
303
5,597
n.a.
n.a.
101 Demand deposits (included in total transaction accounts)
102
Individuals, partnerships, and corporations
103
U.S. government
104
States and political subdivisions in the United States
105
Commercial banks in the United States
106
Other depository institutions in the United States
Banks in foreign countries
107
108
Foreign governments and official institutions
109
Certified and official checks
110
Allother
111 Total nontransaction accounts
112
Individuals, partnerships, and corporations
113
U.S. government
114
States and political subdivisions in the United States
115
Commercial banks in the United States
116
U.S. branches and agencies of foreign banks
Other commercial banks in the United States
117
118
Other depository institutions in the United States
119
Banks in foreign countries
120
Foreign branches of other U.S. banks
121
Other banks in foreign countries
122
Foreign governments and official institutions
123
All other
124
125
126
127
128
129
130
131
132
133
4
1,008,314
918,781
2,348
39,150
25,377
4,481
7,575
1,260
9,343
n.a.
993
k
82
22,889
562
111,524
8,375
154 Number of banks
Footnotes appear at the end of table 4.22
246
n a.
205,868
14,546
n.a.
75,905
40,333
174,976
79,113
195,420
243,262
12,801
616,363
74,565
Quarterly averages
147 Total loans
148 Obligations (other than securities) of states and political subdivisions
in the United States
149 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
150
Money market deposit accounts (MMDAs)
151
Other savings deposits
152
Time certificates of deposit of $100,000 or more
153
All other time deposits
39,393
29,814
141,089
41,652
1,388
39,053
293,867
25,598
n.a.
134
119,608
72,945
256
119,325
4,485
74,009
649,222
934,587
n.a.
4,034
177,733
80,158
212,281
194,899
32,193
72,149
771,127
119,051
72,891
119,143
257,296
39,302
29,710
40,894
141,060
2,506
10,049
n.a.
All
Special Tables • February 1990
4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1'2,6
Consolidated Report of Condition, September 30, 1989
Millions of dollars
Members
Nonmembers
Item
Total
1 Total assets6
National
State
2,447,000
1,948,742
1,575,394
373,348
498,258
182,758
92,573
20,265
34,307
6,489
29,124
150,481
82,889
16,774
22,572
4,853
23,393
120,056
66,954
14,058
17,391
3,909
17,744
30,425
15,935
2,716
5,181
943
5,650
32,277
9,683
3,492
11,735
1,636
5,731
2,108,727
1,665,997
1,354,474
311,523
442,730
406,913
112,882
158,416
307,185
80,612
126,061
238,884
63,056
101,298
68,302
17,556
24,763
99,727
32,270
32,355
98,735
59,682
78,366
1,495
76,871
48,004
3,303
44,701
2,060
7,185
3,491
1,302
2,494
304
3,693
84,844
41,218
61,861
1,128
60,732
33,837
2,425
31,412
1,536
3,278
753
494
324
64
2,525
69,364
31,934
46,358
972
45,386
25,002
1,728
23,274
560
2,609
607
450
210
53
2,002
15,480
9,283
15,503
156
15,347
8,835
697
8,138
976
669
146
44
114
11
522
13,891
18,464
16,505
366
16,139
14,167
878
13,289
524
3,906
2,738
808
2,170
240
1,168
106,035
37,826
3,589
1,606,566
10,787
1,595,779
86,730
24,073
2,576
1,280,218
8,137
1,272,082
68,360
21,052
2,142
1,053,742
6,512
1,047,230
18,369
3,021
434
226,476
1,624
224,852
19,306
13,753
1,013
326,348
2,651
323,697
615,990
128,054
6,974
280,862
45,659
235,202
17,861
182,239
25,290
2,797
4,909
12,650
469,740
103,270
4,715
209,079
35,680
173,399
14,159
138,516
22,026
2,606
4,761
9,792
402,811
86,612
4,132
179,230
30,297
148,934
12,467
120,370
16,853
2,345
2,427
8,743
66,928
16,658
583
29,848
5,383
24,465
1,693
18,146
5,173
261
2,334
1,049
146,250
24,784
2,258
71,783
9,979
61,804
3,701
43,724
3,265
191
147
2,858
470,275
467,289
2,986
386,605
383,905
2,700
307,588
305,656
1,933
79,016
78,249
767
83,670
83,384
286
1,775
647
209
1,032
451
173
876
376
141
157
74
32
742
197
36
51 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
52 Credit cards and related plans
Other (includes single payment and installment)
53
54 Loans to foreign governments and official institutions
55 Obligations (other than securities) of states and political subdivisions in the United States
56 Taxable
57 Tax-exempt
58
59
Loans for purchasing and carrying securities
All other loans
60
329,278
70,009
110,668
1,580
39,858
1,159
38,699
70,243
19,357
50,887
257,794
51,550
67,965
1,498
33,532
931
32,601
63,230
17,546
45,684
218,670
49,166
56,696
1,008
24,842
696
24,147
44,755
11,190
33,564
39,124
2,384
11,269
490
8,690
235
8,454
18,475
6,355
12,120
71,484
18,458
42,703
83
6,326
229
6,097
7,013
1,811
5,202
61 Lease financing receivables
62 Customers' liability on acceptances outstanding
63 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
64
31,921
22,822
38,312
132,693
27,604
21,667
33,686
110,597
22,824
15,993
22,619
84,871
4,779
5,674
11,067
25,726
4,318
1,155
4,627
22,096
2 Cash and balances due from depository institutions
3 Cash items in process of collection and unposted debits
4 Currency and coin
5 Balances due from depository institutions in the United States
6
Balances due from banks in foreign countries and foreign central banks
7 Balances due from Federal Reserve Banks
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10 U.S. Treasury securities
11 U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
12
participation in pools of residential mortgages
N
All other
14 Securities issued by states and political subdivisions in the United States
IS
Taxable
16
Tax-exempt
17 Other domestic debt securities
18
All holdings of private certificates of participation in pools of residential mortgages
19
All other
20
21
Marketable
72
Investments in mutual funds
"M
Other . . .
75
Less: Net unrealized loss
26
27 Federal funds sold and securities purchased under agreements to resell
2.8 Federal funds sold
29
Securities purchased under agreements to resell
30 Total loans and lease financing receivables, gross
31
LESS: Unearned income on loans
32 Total loans and leases (net of unearned income)
33
34
35
36
37
38
39
40
41
47.
43
44
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1 4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers
45 Commercial and industrial loans
46
To U.S. addressees (domicile)
47
To non-U.S. addressees (domicile)
48 Acceptances of other banks"
49 Of U.S. banks
50 Of foreign banks
Commercial Banks A73
4.21—Continued
Members
Item
Nonmembers
Total
Total
National
State
65 Total liabilities and equity capital
2,447,000
1,948,742
1,575,394
373,348
498,258
4
2,279,089
1,819,278
1,471,686
347,592
459,812
67 Total deposits
Individuals, partnerships, and corporations
68
69
U.S. government
70 States and political subdivisions in the United States
71
Commercial banks in the United States
72 Other depository institutions in the United States
73
Banks in foreign countries
74
Foreign governments and official institutions
Certified and official checks
75
1,788,169
1,637,085
3,711
82,192
34,190
6,735
7,756
1,562
14,939
1,396,464
1,274,385
3,124
62,529
30,553
5,379
7,039
1,450
12,004
1,140,082
1,045,818
2,767
51,556
22,572
4,531
3,562
975
8,300
256,383
228,567
358
10,973
7,982
848
3,477
475
3,704
391,705
362,699
586
19,663
3,636
1,356
716
112
2,935
76 Total transaction accounts
77 Individuals, partnerships, and corporations
78
U.S. government
79
States and political subdivisions in the United States
Commercial banks in the United States
80
81
Other depository institutions in the United States
Banks in foreign countries
82
83 Foreign governments and official institutions
84
Certified and official checks
518,090
443,597
2,661
19,535
25,108
4,430
6,994
826
14,939
417,941
353,541
2,173
15,758
23,401
3,649
6,622
793
12,004
333,999
286,955
1,859
12,636
17,626
2,898
3,299
424
8,300
83,942
66,585
314
3,122
5,775
751
3,323
368
3,704
100,149
90,056
488
3,776
1,707
780
373
33
2,935
85 Demand deposits (included in total transaction accounts)
Individuals, partnerships, and corporations
86
87
U.S. government
88
States and political subdivisions in the United States
89 Commercial banks in the United States
Other depository institutions in the United States
90
91
Banks in foreign countries
Foreign governments and official institutions
92
Certified and official checks
93
367,820
301,473
2,614
11,451
25,107
4,417
6,994
824
14,939
301,689
243,588
2,131
9,511
23,400
3,641
6,621
793
12,004
236,062
194,234
1,817
7,471
17,626
2,891
3,299
424
8,300
65,627
49,354
314
2,040
5,775
751
3,323
368
3,704
66,131
57,885
483
1,941
1,707
775
373
32
2,935
1,270,080
1,193,488
1,049
62,657
9,082
868
8,214
2,305
761
85
677
736
978,524
920,844
951
46,771
7,153
527
6,625
1,730
418
70
347
658
806,083
758,863
907
38,920
4,946
305
4,640
1,633
264
41
223
551
172,441
161,982
44
7,851
2,207
222
1,985
97
154
30
124
107
291,556
272,644
99
15,887
1,929
340
1,589
576
344
14
329
79
265,732
31,236
29,769
26,538
85,323
23,443
2,676
17,280
87,209
230,387
24,416
15,585
24,270
67,636
22,288
1,759
15,154
76,473
181,569
21,044
12,877
18,135
58,221
16,571
1,647
13,200
55,461
48,818
3,373
2,708
6,135
9,415
5,717
112
1,954
21,012
35,345
6,820
14,184
2,267
17,687
1,155
917
2,126
10,736
167,910
129,464
103,708
25,756
38,446
1,564
89,880
61,468
24,099
11,690
645
70,243
46,186
15,590
6,358
591
58,334
39,921
12,640
5,829
55
11,909
6,264
2,950
529
919
19,637
15,283
8,509
5,332
12,409
9,232
6,811
2,421
3,177
297,342
153,104
468,732
314,224
36,678
146,159
1,420,349
237,662
118,079
351,413
239,561
31,808
113,310
1,094,775
195,578
88,876
297,954
203,195
20,479
95,336
904,020
42,084
29,203
53,459
36,366
11,330
17,973
190,755
59,680
35,025
117,319
74,663
4,870
32,849
325,574
1,550,949
40,143
1,233,827
33,864
1,013,345
24,924
220,482
8,941
317,122
6,279
150,470
116,643
97,312
19,331
33,827
294,027
152,004
314,563
500,558
234,604
117,076
241,140
378,766
192,844
88,648
204,438
314,595
41,759
28,428
36,702
64,171
59,423
34,928
73,423
121,792
2,752
1,557
1,306
251
1,195
66 Total liabilities
94 Total nontransaction accounts
95 Individuals, partnerships, and corporations
96
U.S. government
States and political subdivisions in the United States
97
98 Commercial banks in the United States
99
U.S. branches and agencies of foreign banks
Other commercial banks in the United States
100
101 Other depository institutions in the United States
102 Banks in foreign countries
103
Foreign branches of other U.S. banks
Other banks in foreign countries
104
105 Foreign governments and official institutions
106
107
108
109
110
111
112
113
114
Federal funds purchased and securities sold under agreements to repurchase 12
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
115 Total equity capital9
MEMO
116
117
118
119
170
121
122
123
174
125
126
127
128
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW accounts)
Total time and savings deposits
Quarterly averages
P9
130 Obligations (other than securities) of states and political subdivisions in the United States
131 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
132
133
134
135
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits
136 Number of banks
Footnotes appear at the end of table 4.22
All
Special Tables • February 1990
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities12-6
Consolidated Report of Condition, September 30, 1989
Millions of dollars
Members
Nonmembers
Item
Total
National
State
2,833,222
2,833,222
2,103,982
1,699,728
404,254
729,240
210,812
23,618
30,928
156,266
162,123
18,137
17,599
126,387
129,564
15,158
14,110
100,297
32,559
2,979
3,490
26,090
48,688
5,481
13,329
29,879
2,453,324
1,804,129
1,464,841
339,288
649,196
519,055
355,906
96,733
2,530
94,202
57,789
3,829
51,941
8,628
4,536
2,261
2,681
405
4,091
129,108
60,530
3,958
1,818,129
12,967
1,805,161
350,981
239,724
68,763
1,502
67,260
38,533
2,661
34,336
3,961
1,136
876
361
101
2,825
97,314
34,452
2,781
1,364,910
9,076
1,355,834
274,686
191,370
51,932
1,273
50,658
28,213
1,880
25,773
3,171
927
772
240
85
2,244
76,849
29,392
2,291
1,120,523
7,217
1,113,306
76,295
48,354
16,831
229
16,602
10,320
781
8,563
789
209
104
121
17
581
20,465
5,060
490
244,387
1,859
242,528
168,074
116,181
27,970
1,028
26,942
19,256
1,168
17,605
4,667
3,400
1,384
2,319
304
1,267
31,794
26,078
1,177
453,219
3,892
449,327
717,761
135,994
16,497
336,916
48,483
288,433
19,742
208,612
510,111
106,585
7,863
231,566
36,924
194,642
14,846
149,252
434,623
89,211
6,672
196,758
31,241
165,517
13,014
128,967
75,488
17,374
1,191
34,808
5,683
29,125
1,832
20,284
207,650
29,409
8,634
105,350
11,559
93,791
4,897
59,361
33,539
31,486
512,680
2,956
29,674
16,330
404,616
1,527
21,845
13,974
321,513
1,320
7,829
2,356
83,103
208
3,865
15,156
108,064
1,429
371,714
72,764
150,349
41,671
1,225
40,446
73,808
32,513
22,839
38,312
146,247
275,122
52,741
84,102
34,191
955
33,236
65,549
27,790
21,678
33,686
116,052
232,494
50,247
69,440
25,397
716
24,681
46,384
22,972
16,003
22,619
89,319
42,627
2,495
14,661
8,794
238
8,556
19,165
4,817
5,675
11,067
26,732
96,593
20,022
66,247
7,480
270
7,210
8,259
4,723
1,161
4,627
30,195
50 Total liabilities and equity capital.
2,833,222
2,103,982
1,699,728
404,254
729,240
51 Total liabilities4
2,630,034
1,960,737
1,585,142
375,595
669,297
52 Total deposits
53
Individuals, partnerships, and corporations
54
U.S. government
55
States and political subdivisions in the United States
56
Commercial banks in the United States
57
Other depository institutions in the United States . . .
58
Certified and official checks
59
All other
2,129,482
1,949,771
4,244
105,277
35,933
7,713
17,169
9,376
1,533,935
1,400,506
3,335
71,169
31,618
5,767
13,023
8,516
1,250,411
1,146,916
2,943
58,653
23,363
4,853
9,121
4,562
283,523
253,589
392
12,516
8,256
914
3,902
3,954
595,547
549,265
909
34,108
4,315
1,946
4,145
860
60 Total transaction accounts
61
Individuals, partnerships, and corporations
62
U.S. government
63
States and political subdivisions in the United States
64
Commercial banks in the United States
65
Other depository institutions in the United States . . .
66
Certified and official checks
67
All other
606,067
521,578
3,089
25,683
26,000
4,709
17,169
7,840
454,517
385,823
2,347
18,028
24,088
3,791
13,023
7,418
363,674
313,189
2,003
14,509
18,107
3,020
9,121
3,725
90,843
72,634
344
3,519
5,981
770
3,902
3,693
151,550
135,755
742
7,654
1,912
918
4,145
423
68 Demand deposits (included in total transaction accounts).
69
Individuals, partnerships, and corporations
70
U.S. government
71
States and political subdivisions in the United States ..
72
Commercial banks in the United States
73
Other depository institutions in the United States
74
Certified and official checks
75
All other
415,266
343,046
3,030
13,498
25,999
4,687
17,169
7,838
322,076
261,195
2,302
10,272
24,087
3,780
13,023
7,417
252,486
208,460
1,958
8,104
18,107
3,010
9,121
3,724
69,590
52,734
343
2,168
5,981
769
3,902
3,693
93,190
81,851
728
3,226
1,912
907
4,145
421
1,523,415
1,428,194
1,155
79,594
9,933
3,005
1,535
1,079,418
1,014,683
988
53,141
7,531
1,977
1,098
886,737
833,727
940
44,144
5,256
1,833
837
192,680
180,956
48
8,997
2,275
144
261
443,998
413,510
166
26,453
2,402
1,028
437
1 Total assets6
2 Cash and balances due from depository institutions
3
Currency and coin
Noninterest-bearing balances due from commercial banks .
4
Other
5
6 Total securities, loans, and lease financing receivables (net of unearned income)
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation obligations . .
Securities issued by states and political subdivisions in the United States
Taxable
Tax-exempt
Other debt securities
All holdings of private certificates of participation in pools of residential mortgages
All other
Equity securities
Marketable
Investments in mutual funds
Other
Less: Net unrealized loss
Other equity securities
Federal funds sold and securities purchased under agreements to resell 1
Federal funds sold
Securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and leases (net of unearned income)
Total loans, gross, by category
27 Loans secured by real estate
28
Construction and land development
Farmland
1-4 family residential properties
Revolving, open-end loans, and extended under lines of credit.
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Credit cards and related plans
Other (includes single payment installment)
Obligations (other than securities) of states and political subdivisions in the United States
Taxable
Tax-exempt
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
76 Total nontransaction accounts
77
Individuals, partnerships, and corporations
78
U.S. government
79
States and political subdivisions in the United States
80
Commercial banks in the United States
81
Other depository institutions in the United States . . .
82
All other
Commercial Banks
All
4.22—Continued
Members
Item
Nonmembers
Total
Total
83
84
85
86
87
88
89
90
91
232,011
25,264
16,361
24,555
67,912
22,299
1,807
15,154
78,218
182,758
21,629
13,480
18,363
58,468
16,581
1,688
13,200
56,872
49,253
3,635
2,880
6,192
9,444
5,719
119
1,954
21,346
36,801
7,388
15,072
2,633
18,586
1,161
1,041
2,126
13,527
203,188
143,245
114,586
28,659
59,943
18,821
8,891
2,212
963
166
502
44
1,697
18,009
8,682
2,185
953
131
502
44
1,662
12,813
5,770
1,860
766
129
309
44
970
5,1%
2,912
324
187
2
193
0
691
812
209
28
10
35
0
0
36
3,618
107,348
62,750
25,287
12,744
3,543
76,965
46,553
15,931
6,692
2,675
63,757
40,242
12,935
6,118
868
13,208
6,312
2,9%
574
75
30,383
16,197
9,356
6,052
12,543
9,239
6,817
2,422
3,304
336,734
182,918
609,821
355,875
38,067
185,211
1,714,216
254,659
130,090
405,015
257,360
32,293
129,022
1,211,859
209,287
98,385
340,711
217,479
20,874
108,218
997,926
45,372
31,705
64,304
39,881
11,419
20,804
213,933
82,075
52,827
204,806
98,516
5,774
56,189
502,357
1,756,817
1,316,476
1,078,683
237,794
440,341
190,803
132,765
110,502
22,263
58,038
333,329
181,714
355,457
641,618
251,584
129,051
258,670
432,073
206,564
98,127
218,544
357,139
45,020
30,924
40,125
74,934
81,745
52,662
%,787
209,545
12,801
92 Total equity capital9
State
268,812
32,653
31,432
27,188
86,498
23,460
2,849
17,280
91,744
Federal funds purchased and securities sold under agreements to repurchase 12
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
National
5,255
4,213
1,042
7,546
MEMO
93 Assets held in trading accounts 13
94
U.S. Treasury securities
95
U.S. government agency corporation obligations
96
Securities issued by states and political subdivisions in the United States
97
Other bonds, notes, and debentures
98
Certificates of deposit
99 Commercial paper
100 Bankers acceptances
101 Other
102 Total individual retirement accounts (IRA) and Keogh plan accounts
103 Total brokered deposits
104 Total brokered retail deposits
105 Issued in denominations of $100,000 or less
106 Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
107
108
109
110
Ill
112
113
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
Quarterly averages
114 Total loans
115 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
116
117
118
119
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits
120 Number of banks
1. Effective Mar. 31, 1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The " n . a . " for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due t o . " All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other banks" is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.
All
Special Tables • February 1990
4.31 Pro forma balance sheet for priced services of the Federal Reserve System1
Millions of dollars
Item
Short-term assets2
Imputed reserve requirement on clearing balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Items in process of collection
4,865.6
282.4
122.0
7.7
44.7
424.6
4,370.8
1,993.7
2,791.9
80.0
2,090.7
1,781.0
74.4
4,865.6
1.2
130.7
Total long-term liabilities
Total liabilities
Equity
Total liabilities and equity4
1. Details may not sum to totals because of rounding.
2. The imputed reserve requirement on clearing balances and investment in
marketable securities reflect the Federal Reserve's treatment of clearing balances
maintained on deposit with Reserve Banks by depository institutions. For
presentation of the balance sheet and the income statement, clearing balances are
reported in a manner comparable to the way correspondent banks report
compensating balances held with them by respondent institutions. That is,
respondent balances held with a correspondent are subject to a reserve requirement established by the Federal Reserve. This reserve requirement must be
satisfied with either vault cash or with nonearning balances maintained at a
Reserve Bank. Following this model, clearing balances maintained with Reserve
Banks for priced service purposes are subjected to imputed reserve requirements.
Therefore, a portion of the clearing balances held with the Federal Reserve is
classified on the asset side of the balance sheet as required reserves and is
reflected in a manner similar to vault cash and due from bank balances normally
shown on a correspondent bank's balance sheet. The remainder of clearing
balances is assumed to be available for investment. For these purposes, the
Federal Reserve assumes that all such balances are invested in three-month
Treasury bills.
The account "items in the process of collection" (CIPC) represents the gross
amount of Federal Reserve CIPC as of the balance sheet date, stated on a basis
comparable with a commercial bank. Adjustments have been made for intraSystem items that would otherwise be double-counted on a consolidated Federal
Reserve balance sheet; items associated with nonpriced items, such as items
263.1
121.9
5.8
33.8
456.9
Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
3,946.2
5,322.4
Total long-term assets
Total assets
Short-term liabilities
Clearing balances and balances arising from early credit
of uncollected items
Deferred available items
Short-term debt
218.4
1,601.6
57.2
5.9
11.3
2,051.8
217.9
1,598.1
62.4
6.6
11.0
2,969.6
Total short-term assets
Long-term assets3
Premises
Furniture and equipment
Leases and leasehold improvements
Prepaid pension costs
June 30, 1988
June 30, 1989
3,946.2
1.2
123.9
131.9
125.1
4,997.5
4,071.3
325.0
299.5
5,322.4
4,370.8
collected for government agencies; and items associated with providing fixed
availability or credit prior to receipt and processing of items. The cost base for
providing services that must be recovered under the Monetary Control Act
includes the cost of float (the difference between the value of gross CIPC and the
value of deferred availability items) incurred by the Federal Reserve during the
period, valued at the federal funds rate. The amount of float, or net CIPC,
represents the portion of gross CIPC that involves a financing cost.
3. Long-term assets on the balance sheet have been allocated to priced services
with the direct determination method, which uses the Federal Reserve's Planning
and Control System (PACS) to ascertain directly the value of assets used solely in
priced services operations and to apportion the value of jointly used assets
between priced services and nonpriced services. Also, long-term assets include an
estimate of the assets of the Board of Governors directly involved in the
development of priced services.
Long-term assets include amounts for capital leases and leasehold improvements and for prepaid pension costs associated with priced services. Effective
January 1, 1987, the Federal Reserve Banks implemented Financial Accounting
Standards Board Statement No. 87, Employer's Accounting for Pensions.
4. A matched-book capital structure has been used for those assets that are not
"self-financing" in determining liability and equity amounts. Short-term assets
are financed with short-term debt. Long-term assets are financed with long-term
debt and equity in a proportion equal to the ratio of long-term debt to equity for
the bank holding companies used in the model for the private sector adjustment
factor (PSAF).
A79
4.32 Pro forma income statement for priced services of the Federal Reserve System1
Millions of dollars
Quarter ending June 30
Item
1989
1988
Income services provided to depository institutions 2
180.7
165.2
Production expenses 3
141.7
122.9
39.0
42.3
Income from operations
Imputed costs 4
Interest on float
Interest on debt
Sales taxes
FDIC insurance
13.9
8.4
1.8
.4
24.6
15.8
14.5
Income from operations after imputed costs
Other income and expenses 5
Investment income
Earnings credits
5.2
8.1
2.1
.4
42.4
40.0
2.5
26.5
30.5
28.9
1.7
16.9
Income before income taxes
Imputed income taxes 6
28.1
5.7
9.1
11.2
19.0
8.2
Net income
8.2
MEMO
Targeted return on equity 6
Six months ending June 30
1989
1988
Income services provided to depository institutions 2
357.8
328.4
Production expenses 3
291.1
253.4
66.7
75.0
Income from operations
Imputed costs 4
Interest on float
Interest on debt
Sales taxes
FDIC insurance
25.3
16.8
3.7
,8
Income from operations after imputed costs
Other income and expenses 5
Investment income
Earnings credits
46.7
16.4
16.2
4.2
.8
80.7
74.3
Income before income taxes
6.3
26.3
37.6
37.4
20.0
59.6
56.2
3.4
40.8
Imputed income taxes 6
1US
14.5
Net income
14.5
26.3
16.4
16.4
MEMO
Targeted return on equity 6
1. The income statement reflects income and expenses for priced services.
Included in these amounts are the imputed costs of float, imputed financing costs,
and the income related to clearing balances.
Details may not add to totals because of rounding.
2. Income represents charges to depository institutions for priced services.
This income is realized through one of two methods: direct charges to an
institution's account or charges against accumulated earnings credits. Income
includes charges for per-item fees, fixed fees, package fees, explicitly priced float,
account maintenance fees, shipping and insurance fees, and surcharges.
3. Production expenses include direct, indirect, and other general administrative expenses of the Federal Reserve Banks for providing priced services. Also
included are the expenses of staff members of the Board of Governors working
directly on the development of priced services, which amounted to $0.4 million in
the second quarter and $0.9 million in the first six months for both 1989 and 1988.
4. Imputed float costs represent the value of float to be recovered, either
explicitly or through per-item fees, during the period. Float costs include those for
checks, book-entry securities, noncash collection, ACH, and wire transfers.
The following table depicts the daily average recovery of float by the Federal
Reserve Banks for the second quarter of 1989. In the table, unrecovered float
includes that generated by services to government agencies or by other central
bank services.
Float recovered through income on clearing balances represents increased
investable clearing balances as a result of reducing imputed reserve requirements
through the use of a deduction for float for cash items in process of collection
when calculating the reserve requirement. This income then reduces the float
required to be recovered through other means.
As-of adjustments and direct charges refer to midweek closing float and
interterritory check float, which may be recovered from depositing institutions
through adjustments to the institution's reserve or clearing balance or by valuing
the float at the federal funds rate and billing the institution directly.
Float recovered through per-item fees is valued at the federal funds rate and has
been added to the cost base subject to recovery in the second quarter of 1989
Total
float
876.5
Unrecovered
float
25.4
Float subject to recovery
851.1
Sources of float recovery
Income on clearing balances
102.1
As of adjustments
301.1
Direct charges
142.9
Per-item fees
305.0
Also included in imputed costs is the interest on debt assumed necessary to
finance priced-service assets and the sales taxes and FDIC insurance assessment
that the Federal Reserve would have paid had it been a private-sector firm.
5. Other income and expenses consist of income on clearing balances and the
cost of earnings credits granted to depository institutions on their clearing
balances. Income on clearing balances represents the average coupon-equivalent
yield on three-month Treasury bills applied to the total clearing balance maintained, adjusted for the effect of reserve requirements on clearing balances.
Expenses for earnings credits are derived by applying the average federal funds
rate to the required portion of the clearing balances, adjusted for the net effect of
reserve requirements on clearing balances.
6. Imputed income taxes are calculated at the effective tax rate derived from a
model consisting of the 25 largest bank holding companies. The targeted return on
equity represents the after-tax rate of return on equity that the Federal Reserve
would have earned had it been a private business firm, based on the bank holding
company model.
A80
Federal Reserve Board of Governors
ALAN GREENSPAN, Chairman
MANUEL H . JOHNSON, Vice Chairman
MARTHA R. SEGER
WAYNE D . ANGELL
OFFICE OF BOARD
DIVISION OF INTERNATIONAL
MEMBERS
J O S E P H R . C O Y N E , Assistant to the Board
D O N A L D J . W I N N , Assistant to the Board
B O B S T A H L Y M O O R E , Special Assistant to
LEGAL
the Board
DIVISION
J . V I R G I L M A T T I N G L Y , J R . , General Counsel
R I C H A R D M . A S H T O N , Associate General Counsel
O L I V E R I R E L A N D , Associate General Counsel
R I C K I R . T I G E R T , Associate General Counsel
S C O T T G . A L V A R E Z , Assistant General Counsel
M A R Y E L L E N A . B R O W N , Assistant to the General
Assistant
Director
DIVISION OF RESEARCH AND
OFFICE OF THE SECRETARY
W I L L I A M W . W I L E S , Secretary
J E N N I F E R J . J O H N S O N , Associate
BARBARA R . L O W R E Y , Associate
E D W I N M . T R U M A N , Staff Director
L A R R Y J . P R O M I S E L , Senior Associate Director
C H A R L E S J . S I E G M A N , Senior Associate Director
D A V I D H . H O W A R D , Deputy Associate Director
R O B E R T F . G E M M I L L , Staff Adviser
D O N A L D B . A D A M S , Assistant Director
P E T E R H O O P E R I I I , Assistant Director
K A R E N H . J O H N S O N , Assistant Director
RALPH W . SMITH, JR.,
Counsel
Secretary
Secretary
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
G R I F F I T H L . G A R W O O D , Director
G L E N N E . L O N E Y , Assistant Director
E L L E N M A L A N D , Assistant Director
D O L O R E S S . S M I T H , Assistant Director
DIVISION OF BANKING
SUPERVISION AND REGULATION
Staff Director
Associate Director
F R E D E R I C K M . S T R U B L E , Associate Director
W I L L I A M A . R Y B A C K , Deputy Associate Director
S T E P H E N C . S C H E M E R I N G , Deputy Associate Director
R I C H A R D S P I L L E N K O T H E N , Deputy Associate Director
H E R B E R T A . B I E R N , Assistant Director
J O E M . C L E A V E R , Assistant Director
R O G E R T . C O L E , Assistant Director
J A M E S I . G A R N E R , Assistant Director
J A M E S D . G O E T Z I N G E R , Assistant Director
M I C H A E L G . M A R T I N S O N , Assistant Director
R O B E R T S . P L O T K I N , Assistant Director
S I D N E Y M . S U S S A N , Assistant Director
L A U R A M . H O M E R , Securities Credit Officer
FINANCE
STATISTICS
M I C H A E L J . P R E L L , Director
E D W A R D C . E T T I N , Deputy Director
T H O M A S D . S I M P S O N , Associate Director
L A W R E N C E S L I F M A N , Associate Director
D A V I D J . S T O C K T O N , Associate Director
M A R T H A B E T H E A , Deputy Associate Director
P E T E R A . T I N S L E Y , Deputy Associate Director
M Y R O N L . K W A S T , Assistant Director
PATRICK M . P A R K I N S O N , Assistant Director
M A R T H A S . S C A N L O N , Assistant Director
J O Y C E K . Z I C K L E R , Assistant Director
L E V O N H . G A R A B E D I A N , Assistant Director
(Administration)
DIVISION OF MONETARY
AFFAIRS
D O N A L D L . K O H N , Director
D A V I D E . L I N D S E Y , Deputy Director
B R I A N F . M A D I G A N , Assistant Director
R I C H A R D D . P O R T E R , Assistant Director
N O R M A N D R . V . B E R N A R D , Special Assistant
to the Board
WILLIAM TAYLOR,
DON E . KLINE,
OFFICE OF THE INSPECTOR
BRENT L . BOWEN,
BARRY R . S N Y D E R ,
GENERAL
Inspector General
Assistant Inspector General
A81
and Official Staff
EDWARD W . KELLEY, JR.
JOHN P. LA WARE
OFFICE OF
STAFF DIRECTOR FOR
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
MANAGEMENT
Staff Director
Assistant Staff Director
W I L L I A M S C H N E I D E R , Special Assignment: Project
Director, National Information Center
P O R T I A W . T H O M P S O N , Equal Employment
Opportunity
Programs Officer
S. DAVID FROST,
THEODORE E . ALLISON,
Staff Director
EDWARD T. MULRENIN,
DIVISION OF HUMAN
MANAGEMENT
Director
Director
C . W I L L I A M S C H L E I C H E R , J R . , Associate Director
B R U C E J . S U M M E R S , Associate Director
C H A R L E S W . B E N N E T T , Assistant Director
J A C K D E N N I S , J R . , Assistant Director
E A R L G . H A M I L T O N , Assistant Director
J O H N H . P A R R I S H , Assistant Director
L O U I S E L . R O S E M A N , Assistant Director
F L O R E N C E M . Y O U N G , Assistant Director
DAVID L . ROBINSON,
Director
Associate Director
A N T H O N Y V . D I G I O I A , Assistant Director
J O S E P H H . H A Y E S , J R . , Assistant Director
F R E D H O R O W I T Z , Assistant Director
DAVID L . SHANNON,
CONTROLLER
Controller
Assistant Controller (Programs and
GEORGE E . LIVINGSTON,
STEPHEN J. CLARK,
Budgets)
DARRELL R . PAULEY,
Assistant Controller (Finance)
DIVISION OF SUPPORT
SERVICES
R O B E R T E . F R A Z I E R , Director
G E O R G E M . L O P E Z , Assistant
D A V I D L . W I L L I A M S , Assistant
Director
Director
OFFICE OF THE EXECUTIVE DIRECTOR FOR
INFORMATION RESOURCES
MANAGEMENT
Executive Director
Deputy Executive Director
ALLEN E . BEUTEL,
STEPHEN R . MALPHRUS,
DIVISION OF HARDWARE AND
SYSTEMS
SOFTWARE
Director
Assistant Director
Assistant Director
BRUCE M . BEARDSLEY,
DAY W . RADEBAUGH, JR.,
ELIZABETH B . RIGGS,
DIVISION OF APPLICATIONS
STATISTICAL SERVICES
Director
Assistant Director
Assistant Director
WILLIAM R . JONES,
RICHARD C . STEVENS,
ROBERT J. ZEMEL,
DEVELOPMENT
RESERVE
CLYDE H . FARNSWORTH, JR.,
RESOURCES
JOHN R . WEIS,
OFFICE OF THE
DIVISION OF FEDERAL
BANK OPERATIONS
AND
Associate
82
Federal Reserve Bulletin • February 1990
Federal Open Market Committee
FEDERAL OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN,
Chairman
WAYNE D . ANGELL
EDWARD G . BOEHNE
R O B E R T H . BOYKIN
E . G E R A L D CORRIGAN,
W . L E E HOSKINS
M A N U E L H . JOHNSON
EDWARD W . KELLEY, JR.
ALTERNATE
ROBERT P . BLACK
ROBERT P . FORRESTAL
Vice Chairman
JOHN P . LAWARE
M A R T H A R . SEGER
GARY H . S T E R N
MEMBERS
SILAS K E E H N
JAMES H . O L T M A N
ROBERT T . PARRY
STAFF
RICHARD W . L A N G , Associate
Economist
D A V I D E . L I N D S E Y , Associate
Economist
LARRY J . PROMISEL, Associate
Economist
A R T H U R J . R O L N I C K , Associate
Economist
HARVEY R O S E N B L U M , Associate
Economist
CHARLES J . S I E G M A N , Associate
Economist
THOMAS D . SIMPSON, Associate
Economist
L A W R E N C E S L I F M A N , Associate
Economist
D O N A L D L . K O H N , Secretary and Economist
N O R M A N D R . V . B E R N A R D , Assistant Secretary
GARY P . G I L L U M , Deputy Assistant Secretary
J . V I R G I L M A T T I N G L Y , J R . , General Counsel
E R N E S T T . PATRIKIS, Deputy General Counsel
M I C H A E L J . P R E L L , Economist
E D W I N M . T R U M A N , Economist
J O H N M . DAVIS, Associate Economist
R I C H A R D G . D A V I S , Associate Economist
P E T E R D . S T E R N L I G H T , Manager
SAM Y . CROSS, Manager for
FEDERAL ADVISORY
for Domestic Operations, System Open Market Account
Foreign Operations, System Open Market Account
COUNCIL
B . K E N N E T H W E S T , Seventh District
D A N W . M I T C H E L L , Eighth District
L L O Y D P . J O H N S O N , Ninth District
JORDAN L . H A I N E S , Tenth District
VACANCY, Eleventh District
P A U L H A Z E N , Twelfth District
W A L T E R J . C O N N O L L Y , JR., First District
W I L L A R D C . B U T C H E R , Second District
TERRENCE A . L A R S E N , Third District
THOMAS H . O ' B R I E N , Fourth District
FREDERICK D E A N E , JR., Fifth District
K E N N E T H L . ROBERTS, Sixth District
Secretary
Associate Secretary
HERBERT V . PROCHNOW,
W I L L I A M J . KORSVIK,
A83
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
WILLIAM E . ODOM,
Dearborn, Michigan, Vice Chairman
GEORGE H . BRAASCH, Chicago, Illinois
B E T T Y T O M C H U , Arcadia, California
C L I F F E . C O O K , Tacoma, Washington
JERRY D . C R A F T , Atlanta, Georgia
D O N A L D C. D A Y , Boston, Massachusetts
R.B. ( J O E ) D E A N , JR., Columbia, South Carolina
W I L L I A M C. D U N K E L B E R G , Philadelphia, Pennsylvania
JAMES F L E T C H E R , Chicago, Illinois
JAMES H E A D , Berkeley, California
ROBERT A . H E S S , Washington, D.C.
BARBARA K A U F M A N , San Francisco, California
THRIFT INSTITUTIONS ADVISORY
A . J. (JACK) K I N G , Kalispell, Montana
M I C H E L L E S . M E I E R , Washington, D.C.
L I N D A K. P A G E , Columbus, Ohio
SANDRA P H I L L I P S , Pittsburgh, Pennsylvania
V I N C E N T P. Q U A Y L E , Baltimore, Maryland
C L I F F O R D N. R O S E N T H A L , New York, New York
A L A N M. SILBERSTEIN, New York, New York
R A L P H E . S P U R G I N , Columbus, Ohio
D A V I D P. W A R D , Peapack, New Jersey
L A W R E N C E W I N T H R O P , Portland, Oregon
COUNCIL
D O N A L D B. SHACKELFORD, Columbus, Ohio, President
MARION O. S A N D L E R , Oakland, California, Vice President
CHARLOTTE C H A M B E R L A I N , Glendale, California
D A V I D L . H A T F I E L D , Kalamazoo, Michigan
L Y N N W. H O D G E , Greenwood, South Carolina
A D A M A. J A H N S , Chicago, Illinois
H . C. K L E I N , Jacksonville, Arkansas
E L L I O T T K . K N U T S O N , Seattle, Washington
J O H N W. L A I S L E , Oklahoma City, Oklahoma
P H I L I P E . L A M B , Springfield, Massachusetts
J O H N P A N C E T T I , New York, New York
CHARLES B. S T U Z I N , Miami, Florida
A84
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Consumer Handbook on Adjustable Rate Mortgages
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A85
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STAFF STUDIES:
Summaries Only Printed in the
Bulletin
155.
T H E F U N D I N G OF PRIVATE PENSION P L A N S ,
by Mark J.
Warshawsky. November 1987. 25 pp.
156. INTERNATIONAL T R E N D S FOR U . S . BANKS A N D B A N K ING M A R K E T S , by James V. Houpt. May 1988. 47 pp.
157. M 2 PER U N I T OF P O T E N T I A L G N P AS AN A N C H O R FOR
THE PRICE L E V E L , by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
158. T H E A D E Q U A C Y AND CONSISTENCY OF M A R G I N R E QUIREMENTS IN THE MARKETS FOR STOCKS A N D DERIVATIVE PRODUCTS, by Mark J. Warshawsky with the
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146. T H E R O L E OF THE P R I M E R A T E IN THE PRICING OF
BUSINESS L O A N S BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y
Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE M O N E T A R Y SERVICES (DIVISIA) I N DEXES O F THE M O N E T A R Y AGGREGATES, by Helen T .
Farr and Deborah Johnson. December 1985. 42 pp.
148. T H E MACROECONOMIC A N D SECTORAL E F F E C T S OF THE
E C O N O M I C RECOVERY T A X A C T : SOME SIMULATION
R E S U L T S , by Flint Brayton and Peter B. Clark. Decem-
ber 1985. 17 pp.
149. T H E O P E R A T I N G PERFORMANCE OF A C Q U I R E D FIRMS IN
B A N K I N G BEFORE A N D AFTER ACQUISITION, by Stephen
A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST A C C O U N T I N G M O D E L S IN B A N K I N G :
A R E E X A M I N A T I O N AND AN APPLICATION, by John T .
Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO D E R E G U L A T I O N : R E T A I L DEPOSIT PRICING FROM 1983 THROUGH 1985, by Patrick I. Mahoney,
Alice P. White, Paul F. O'Brien, and Mary M.
McLaughlin. January 1987. 30 pp.
1 5 2 . D E T E R M I N A N T S OF CORPORATE M E R G E R ACTIVITY: A
R E V I E W OF T H E L I T E R A T U R E , by Mark J. Warshawsky.
April 1987. 18 pp.
by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.
153. STOCK M A R K E T V O L A T I L I T Y ,
1 5 4 . T H E E F F E C T S ON CONSUMERS AND CREDITORS OF PROPOSED C E I L I N G S ON C R E D I T CARD INTEREST R A T E S , b y
Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
REPRINTS OF BULLETIN
ARTICLES
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.
Home Equity Lines of Credit. 6/88.
U.S. International Transactions in 1988. 5/89.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89
A86
Index to Statistical Tables
References
are to pages
A3-A79
although
the prefix
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20, 72-77
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, 72, 74, 76. (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, 73, 75, 77
Federal Reserve Banks, 10
Central banks, discount rates, 69
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 72, 74, 76
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 72,
74, 76
Consumer loans held, by type and terms, 39, 40
Loans sold outright, 19
Nondeposit funds, 17
Number by classes, 73, 75, 77
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, 72, 74, 76
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, 73, 75, 77
Ownership by individuals, partnerships, and
corporations, 22
"A"
is omitted
in this
index
Demand deposits—Continued
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, 73, 75, 77
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 Reserve System
Balance sheet for priced services, 78
Condition statement for priced services, 79
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, 79
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
A87
Foreigners
Claims on, 57, 59, 62, 63, 64, 66
Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68
GOLD
Certificate account, 10
Stock, 4, 56
Government National Mortgage Association, 33, 37, 38
Gross national product, 53
HOUSING, new and existing units, 51
INCOME and expenses, Federal Reserve System, 78-79
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, 72
Federal Reserve Banks, 10, 11
Federal Reserve System, 78-79
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, 72, 74, 76
Federal Reserve Banks, 4, 5, 7, 10, 11
Federal Reserve System, 78-79
Financial institutions, 26, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 48
Production, 48, 50
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 50
Mobile homes shipped, 51
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 53
OPEN market transactions, 9
PERSONAL income, 54
Prices
Consumer and producer, 46, 52
Stock market, 25
Prime rate, 23
Producer prices, 46, 52
Production, 46, 49
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 38, 74
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, 73
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, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21, 73, 75,
77
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, 72, 74, 76
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)
A88
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106 Richard N. Cooper
Richard L. Taylor
Richard F. Syron
Robert W. Eisenmenger
NEW YORK*
10045 Cyrus R. Vance
Ellen V. Futter
14240 Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
PHILADELPHIA
19105 Peter A. Benoliel
Gunnar E. Sarsten
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101 Charles W. Parry
John R. Miller
45201 To be announced
15230 Robert P. Bozzone
W. Lee Hoskins
William H. Hendricks
Vice President
in charge of branch
Buffalo
Cincinnati
Pittsburgh
RICHMOND*
23219 Hanne M. Merriman
Anne Marie Whittemore
Baltimore
21203 John R. Hardesty, Jr.
Charlotte
28230 William E. Masters
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
CHICAGO*
Detroit
ST. LOUIS
Little Rock
Louisville
Memphis
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
SAN FRANCISCO
Los Angeles
Portland
Salt Lake City
Seattle
John T. Keane
Robert P. Black
Jimmie R. Monhollon
30303 Larry L. Prince
Edwin A. Huston
35283 A. G. Trammell
32231 Lana Jane Lewis-Brent
33152 Victoria B. Jackson
37203 Caroline G. Theus
70161 Robert D. Apelgren
Robert P. Forrestal
Jack Guynn
60690 Marcus Alexis
Charles S. McNeer
48231 Phyllis E. Peters
Silas Keehn
Daniel M. Doyle
63166 H. Edwin Trusheim
Robert H. Quenon
72203 To be announced
40232 To be announced
38101 To be announced
Thomas C. Melzer
James R. Bowen
55480 Michael W. Wright
Delbert W. Johnson
59601 J. Frank Gardner
Roger Guffey
Henry R. Czerwinski
75222 Bobby R. Inman
Hugh G. Robinson
79999 To be announced
77252 To be announced
78295 To be announced
Robert H. Boykin
William H.Wallace
94120 Robert F. Erburu
Carolyn S. Chambers
90051 Yvonne B. Burke
97208 William A. Hilliard
84125 Don M. Wheeler
98124 Bruce R. Kennedy
Robert T. Parry
Carl E. Powell
Robert D. McTeer, Jr.11
Albert D. Tinkelenberg
John G. Stoides1
Gary H. Stern
Thomas E. Gainor
64198 Fred W. Lyons, Jr.
Burton A. Dole, Jr.
80217 Barbara B. Grogan
73125 John F. Snodgrass
68102 Herman Cain
Charles A. Cerino1
Harold J. Swart1
Donald E. Nelson
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvin K. Purcell
Robert J. Musso
Roby L. Sloan1
John F. Breen1
Howard Wells
Ray Laurence
John D. Johnson
Kent M. Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Executive Vice President.
A89
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
1
1
/
ALASKA
/
»
©
/
i M
M M
/ / / /0*
•Xs
LEGEND
—"" Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch
Territories
®
Federal Reserve Bank Cities
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL RESERVE
PUBLICATIONS
CONSUMER
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to 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 Refinancings, A Consumer's Guide to Mortgage Lock-Ins, and
A Consumer's Guide to Mortgage Settlement Costs.
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.
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.
@FedFRASER