Full text of Federal Reserve Bulletin : February 1991
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
VOLUME 77 •
NUMBER 2 •
FEBRUARY 1991
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
Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
81 CLEARING AND PAYMENT
SYSTEMS:
THE ROLE OF THE CENTRAL
BANK
This article develops a model of the payment system, with special reference to the
essential role of the central bank; discusses
the implications of the public policy and
supervisory roles of the central bank in the
payment system; and examines the role of
the central bank as operator of a largevalue, interbank payment mechanism.
92 INDUSTRIAL
PRODUCTION
Industrial production fell 1.7 percent in November after a decline of 0.9 percent in
October. Industrial capacity utilization
dropped 1.5 percentage points in November
to 80.9 percent, its lowest level since May
1987.
95
ANNOUNCEMENTS
Change in the discount rate.
Reduction in the reserve requirements on
nonpersonal time deposits and net Eurocurrency liabilities.
Appointment of new members to the Thrift
Institutions Advisory Council.
Amendment to Regulation H.
Proposal to require depository institutions
that originate or receive commercial automated clearinghouse (ACH) transactions
through the Federal Reserve Banks to establish electronic access to the Reserve
Banks for ACH services; interim amendments to Regulation CC pending adoption
of a final rule.
Changes in Board staff.
98 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on November 13, 1990, the
Committee adopted a directive that called
for a slight reduction in the degree of pressure on reserve positions. The directive
also called for giving weight to potential
developments that might require some
slight further easing during the intermeeting
period. Accordingly, slightly greater reserve restraint might be acceptable during
the intermeeting period or somewhat lesser
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 both M2 and M3 over the period from
September through December at annual
rates of about 1 to 2 percent.
105 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, 1990.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
A 7 i GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A82 BOARD OF GOVERNORS
AND
STAFF
A88 INDEX TO STATISTICAL
TABLES
A84 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A90 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A86 FEDERAL RESERVE
PUBLICATIONS
A 9 i MAP OF THE FEDERAL
SYSTEM
BOARD
RESERVE
Clearing and Payment Systems: The Role
of the Central Bank
Bruce J. Summers, Deputy Director, Division of
Reserve Bank Operations and Payment Systems,
prepared this article. An earlier version of this
paper was presented in Washington, D.C., at the
Central Banking Seminar of the International
Monetary Fund, November 6, 1990.
Two themes of the Central Banking Seminar are
directly relevant to consideration of payment system issues. One is the interdependencies of different
functions normally performed by a central bank. In
this regard, I know of no other aspect of the central
bank's responsibility that requires more cooperation
and coordination among the various central banking
disciplines than the payment system does. A second
theme of the seminar is the role of the central bank
in dealing with financial crises. Stress on a nation's
payment system is often one of the earliest and most
direct manifestations of financial crisis. Indeed, the
payment system may be a direct channel through
which liquidity and credit problems are transferred
from one participant in the financial system to
another. Such transfers have the potential to create
systemic liquidity and credit problems that are of
direct concern to the central bank. As a result,
central banks are increasingly focusing on proper
safeguards to allow payment system participants
not only to control their risk, but also to prevent the
contagion of systemic risk.
Because it has relevance for a range of central
bank disciplines and functions and because it can
become a focus of crisis management, the payment
system does indeed deserve a prominent place in
the thinking of central bankers. Yet, until the last
decade or so, interest in payment system issues has
NOTE. The author has benefited from comments made by
colleagues in the Federal Reserve System and in several
other central banks. Special appreciation is due to Jeffrey C.
Marquardt and Patrick M. Parkinson for the critical review
they have provided since the inception of the paper.
been of secondary importance on the central banking agenda. The payment system has traditionally
been almost exclusively the province of central
bank staff members with operations and automation
responsibilities, reflecting the view that the payment
system is essentially a mechanical process. Along
these lines, the literature on the payment system has
traditionally been slanted toward analyses of economic efficiency, with much of the literature framed
in the context of the economics of the firm. The
payment system has now entered the mainstream
for central bankers, although, admittedly, the degree of interest varies from country to country.
This paper has three main parts. First, to
provide a common frame of reference, I develop
a model of the payment system, with special
reference to the essential role of the central bank.
Payment Systems in Market Economies
The fifth Central Banking Seminar sponsored by the
International Monetary Fund was held as the Fund is
engaged in a major program of assistance to central
banks in Eastern Europe. Under the aegis of the IMF
Central Banking Department, central bankers from
several western countries have been helping their counterparts in Eastern Europe to adapt their organizations
and operations to functioning in a market economy. The
author is leading a team of experts from the Federal
Reserve as part of the IMF technical assistance mission
to the National Bank of Poland to help reform that
nation's payment system.
The significance of the payment system as an integral
part of a nation's financial structure has been highlighted
by the recent experiences of Eastern European central
banks. In a market economy, the payment system is the
conduit for executing economic choices. Without a
properly structured payment system, significant change
in the rest of the economy could not proceed. Also,
reform of core central banking functions, ranging from
monetary control to banking supervision and regulation,
could not effectively take place.
82
Federal Reserve Bulletin • February 1991
Glossary
Automated clearinghouse (ACH). A paperless payment
mechanism, which in the United States is capable of
processing both credit and debit transfers. In the United
States, the ACH is primarily used for low-value, recurring
payments made in connection with consumer transactions.
Clearing House Interbank Payments System (CHIPS).
A private credit transfer mechanism for large-value transactions operated by the New York Clearing House. CHIPS
transfers are primarily related to international transactions.
In 1990, the daily average number of funds transfers
processed by CHIPS was about 150,000, with a daily average value of about $890 billion. The approximately 130
CHIPS participants control their risk through a combination of bilateral net debit caps and aggregate net debit
limits. The CHIPS participants' positions are netted continually during the day, and net obligations are settled at
the end of the day through Fedwire transfers among 20
settlement participants. To help ensure end-of-day settlement in the event that a participant is not able to meet its
obligations, CHIPS has established a formal loss-sharing
agreement backed by dedicated collateral held on a custodial basis by the Federal Reserve Bank of New York.
Daylight overdrafts. Intraday extensions of credit made
by banks (including the central bank) when payment instructions of an account holder are honored even though
there are insufficient balances available in the account to
fund the transaction at the time it is made. Daylight overdrafts can become overnight loans if the account balance
cannot be brought back to zero or a positive position by
the close of the banking day.
Delivery versus payment. An arrangement in which the
exchange of value in fulfillment of an economic obligation, involving, for example, securities, foreign exchange,
Second, I discuss the implications of the public
policy and supervisory roles of the central bank
in the payment system. These implications include (1) the need to establish public policies to
guide the structure of newly developing private
clearing and settlement arrangements, in terms of
both their integrity and efficiency, and (2) the
need for supervision of private clearing arrangements, not only domestically, but also for crossborder systems, in close cooperation with foreign
central banks. Finally, I examine the role of the
central bank as operator of a large-value, interbank payment mechanism. Special attention is
given to the implications of the central bank's
or other financial instruments and their derivative products,
is synchronized so that final payment is received at delivery. The party owed funds thus avoids the risk of late payment or default on a payment.
Discount window or Lombard facility. A lending facility through which a central bank extends overnight credit,
generally for a short term.
Fedwire. An electronic facility operated by the Federal
Reserve Banks used for (1) credit transfers of reserve
balances among banks across the books of the Federal
Reserve Banks and (2) the transfer among banks of
book-entry U.S. government and agency securities in a
delivery-versus-payment environment on the books of the
Federal Reserve Banks. Fedwire funds transfers are considered final and irrevocable when the recipient of the
transfer is sent an advice of credit by the Federal Reserve.
In 1990, the daily average number of funds transfers on
Fedwire was about 255,000, with a daily average value
of about $790 billion; the daily average number of securities transfers was about 45,000, with a daily average
value of about $400 billion.
Payment system. A set of contractual arrangements and
operating facilities used to transfer value. Payment
systems can be distinguished by the degree of finality
provided. In some systems, such as Fedwire, the payments
are final-that is, they represent an irrevocable transfer
of value. In some other systems, the payments are
provisional—that is, they represent a transfer that can
be reversed because of the inability of the party making
the payment to fund the obligation. Systems that are
designed to process payments and provide for irrevocable transfers of value are better suited for large-value
transactions.
role as a source of intraday liquidity to the
financial system and to the "safety net" attributes associated with access to a large-value
transfer mechanism.
MODEL OF THE PAYMENT
SYSTEM
In the simplest terms, the payment system is the
apparatus through which obligations incurred as
a result of economic activity are discharged
through transfers of monetary value. The payment system is used primarily for simple day-today activities, such as retail transactions, that
Clearing and Payment Systems: The Role of the Central Bank
83
Model of the Payment System
Economic Activity
Trading in goods, services, andfinancialinstruments results in the assumption of an
obligation to perform on a contract (to supply or pay for goods, services, or financial
instruments). The contract may include specific terms regarding the timing and form
of payment.
Payment
Payment results in the discharge of the obligation with cash or a payment order leading
to the transfer of bank balances. Payment orders involve clearing and settlement.
Clearing
Transfer and recording of the payment instruction. Clearing of gross
payments is done transaction by transaction through the banking system. Gross payments or the underlying obligations that give rise to
the payments can be netted by specialized clearing organizations.
Settlement Actual transfer of value to a deposit account at the payee's bank based
on the payment instruction. If gross payments are settled, the value
is transferred for each payment instruction. Net payments are also
channeled through the banking system for settlement. The timing of
settlement can be any of the following:
• Immediate.
• Same day (end of day).
• Next day.
may be paid by using a very rudimentary, but
nonetheless very effective, payment mechanism,
such as cash.1 If the obligation is not discharged
immediately (or in "real time," to use technical
language) by using cash, then an alternative
payment instrument, such as a paper or electronic credit or debit order, must be used. For
payment orders, the process of discharging the
obligation can be divided conceptually into two
parts. The first part is the clearing process in
which payment information is conveyed from the
payor to the payee, probably through intermediary banks. The second part is settlement, in
which the actual transfer of value associated with
1. Although cash payments may appear rudimentary, they
actually embody essential features that are sought in more
sophisticated electronic payment mechanisms, including
large-value funds transfer systems. When an obligation is
discharged by using cash, and assuming there is confidence in
the government issuing the currency, the payment and final
settlement are simultaneous and immediate. Apart from the
physical restrictions that make cash payments practical only
for small-value transactions, much may be learned from the
principles embodied in the use of this form of payment. See
Goodfriend (1990).
the payment order is made, generally not with
cash but with a claim on a bank.
The payment system is also used to settle
complex and large-value transactions, such as
those arising from trading in financial instruments and their derivative products, and to transfer other "commodities." The markets for such
instruments are very efficient: In some cases,
assets are held for only a few hours or minutes.
The size of individual transactions may also be
very large. The average secondary market trade
in U.S. government securities, for example, is
about $9 million. These markets therefore have
rapid turnover of high-value transactions. Accordingly, while the model of clearing and settlement described here applies to large-value payments, the form the payment process takes has
become rather specialized, often involving clearing organizations that ensure that payment in
good funds is made against delivery for the
contract in question (delivery-versus-payment
systems) and that increasingly perform a multilateral netting of such contracts among those
trading in the instruments to reduce the total
84
Federal Reserve Bulletin • February 1991
value of individual deliveries and payments that
must be completed.2
In this simple model of the payment process
(shown in the box), economic activity gives rise
to an obligation to perform on a contract. In
many cases, the contract may specify the terms
regarding the form of payment, including both
timing and type of instrument used. As noted,
discharge of an obligation using payment methods other than cash involves clearing the payment order, including the transfer, processing,
and recording of payment instructions on the
books of the institutions holding the accounts of
the payor and the payee.
For most unspecialized transactions, each individual obligation is treated separately for purposes of clearing and settlement. When such
obligations are handled and recorded individually, they are known as gross transactions, which
receive gross settlement on the books of the
settlement entity. Specialized transactions, which
may include those for various classes of securities and equities and their derivative products,
rely on traditional payment mechanisms for final
settlement but increasingly involve the preliminary step of netting. Netting is a process in which
gross obligations between two (bilateral) or more
(multilateral) entities are settled by a single transfer of the net amount of funds or goods due from
each obligor. When properly performed, netting
reduces significantly the total value transferred
and the number of payment transactions. Properly executed, netting can also result in significant reduction of risk, as described below.
Settlement involves the actual transfer of value
based on payment instructions, whether gross or
net, on the books of private banking institutions,
through the use of bank balances, or on the books of
the central bank. Commercial banks serve the primary role in the settlement step of the process.
Banks are equipped to play the role of payment
intermediary for two reasons. First, they hold the
accounts of those engaged in economic activity. A
second reason, often overlooked, is that banks can
provide credit services to payors so that a payor's
obligation can be discharged even though it may not
have the funds available when the payment is due. If
2. See Parkinson (1990).
the payor is a good credit risk and agrees to the
bank's credit terms, then the bank will complete
settlement by transferring value even if the payor is
short of funds, thus greatly facilitating the payment
process. In essence, banks provide the liquidity to
allow the payment process to run smoothly. As
intermediaries, banks aggregate payments due to
and from each other and often settle payments
through their own intermediary, that is, through the
central bank.
The volume and value of payment transactions in a modern economy with well developed
financial markets have reached the level at
which central banks are increasingly relied
upon to provide final settlement among banks.
Central bank settlement can be immediate, occurring directly upon the processing of a credit
payment order, or same day, involving a delay
until the end of the banking day. 3 As will be
explained below, central banks may have a role
in providing liquidity support to commercial
banks by providing central bank credit either
intraday or at the end of the day, to ensure
completion of payments on schedule. Such liquidity support should be consciously managed
by the central bank because providing liquidity
can easily get out of hand.4 Short-term "daylight loans" to banks by the central bank, if not
repaid by the end of the day, become overnight
loans. Thus, a direct connection exists between
a central bank's decision to provide daylight
credit and the management of its discount or
Lombard facility.
THE PUBLIC POLICY AND
SUPERVISORY
ROLES OF THE CENTRAL
BANK
Although the role of central banks in the payment
system varies from country to country, they have
3. Some markets and central banks still rely on "next day"
settlement, in which the transfers of value nominally occur on
a given day but remain provisional—that is, they could be
reversed—until some specified time the next day. Next-day
settlement is particularly common in securities markets and is
being addressed by the Group of Thirty recommendation to
move all securities to same-day settlement.
4. As it has in the United States, where daylight overdrafts
on the books of the Federal Reserve Banks now total about
$70 billion for funds transfers and another $90 billion for
book-entry securities transfers.
Clearing and Payment Systems: The Role of the Central Bank
several common areas of concern regarding their
countries' payment systems as broadly defined,
including both clearing and settlement.
The Execution
of Monetary
Policy
One area of concern involves the relation between the payment system and the execution of
monetary policy. The result of the clearing and
settlement process is that an economic actor
obtains a bank deposit, which is one component
of "money," from another economic actor. The
link between economic activity and money occurs via the clearing and settlement process,
which in this manner can be seen as having a
fundamental role in the execution of central bank
policy.5 Accordingly, central banks should have
a special concern about clearing and payment
systems for broad reasons of monetary policy
implementation.
Stability
of the Financial
System
Another common area of concern among central
banks has to do with the stability of the financial
system. This concern leads directly to an interest
in the integrity of the payment system, that is,
the ability of the payment system to function
safely and efficiently even during times of financial stress. Such financial stress may be related to
generalized market factors, such as wide swings
in asset prices that create difficulties for the
"losers" in trading to meet their obligations. Or,
financial stress may be related to specific problems with a large participant in the payment
system, either a nonfinancial corporation or a
bank, to meet its own and, in the case of a bank,
possibly its customers' obligations.
5. Examples of the effects that malfunctions in the clearing
and settlement process, even those resulting from mundane
operational problems, may have for financial markets and
central bank policy are not hard to find. In August 1990, a
power outage on Wall Street led to disruptions in money
market operations, including Fedwire. These operating disruptions resulted in interest rate swings due to banks' inability to move balances efficiently. Similarly, in November 1985
an internal software problem at the Bank of New York
involving the securities transfer application led that bank to
incur massive daylight overdrafts with the Federal Reserve
and an overnight discount window loan of $23 billion.
85
As was noted earlier, the payment system is
one of the first places where financial stress can
manifest itself—through the inability of payment
system participants to meet their payment obligations. Serious problems involving one or several payment system participants, if contained,
should not pose a threat to the safe and efficient
functioning of the basic process. Such problems
are properly the concern of the central bank in its
bank supervisory role. Depending on the nature
of the problem, however, financial stress suffered
by one or more participants can translate into
systemic problems that threaten the overall viability of the payment system. The celebrated
case of the failure of Bankhaus Herstatt in 1974,
for example, illustrates how just one institution's
inability to discharge its payment obligations (in
this case payment of dollars against deutsche
marks in foreign exchange transactions) can seriously affect the positions of other payment
system participants.6 When the financial problems of one or several participants threaten the
viability of the entire process, the possibility of
systemic risk to the payment system becomes
real.
Efficient Operation
of the Payment
System
The efficient operation of the payment system is
another legitimate concern of the central bank
and is important on at least two counts. First, the
proper handling of payments is a resource-consuming activity that deserves attention on purely
economic grounds. In the United States, for
example, the annual cost of operating the domestic payment system is estimated at about $60
6. The 1974 Herstatt case has given rise to the term
"Herstatt risk," which describes the temporal dimension of
the credit risk assumed by the counterparty in a foreign
exchange deal when payment of one currency becomes final
some time before the payment of the second currency is
completed. Herstatt risk arises in part because the operating
schedules of national payment systems are not synchronized.
In addition, there is no mechanism today that offers the
benefits of concurrency that could be derived from a deliveryversus-payment mechanism. In the case of the U.S. dollar,
final settlement each day of roughly $425 billion in foreign
exchange is delayed up to fourteen hours (for deals originated
in the Far East) until the final settlement of CHIPS transfers
on the books of the Federal Reserve Bank of New York at
about 5:30 p.m. eastern time in the United States.
86
Federal Reserve Bulletin • February 1991
billion.7 If the payment process involves substantial participation by the private sector, then we
should have confidence that market forces will
tend to enhance the efficient operation of the
payment system. The introduction of newer technologies with high fixed investment costs, however, may entail some element of increasing
returns to scale in the payment processing aspects of clearing and settlement. To the extent
that returns to scale are increasing, the payment
process may exhibit natural monopoly characteristics. In the natural monopoly case, the central
bank needs to be knowledgeable about payment
processing operations and the behavior of the
natural monopolist that operates the system,
including the fees charged and the fairness of the
terms of access to the payment infrastructure.
The second reason for the central bank's concern about the efficiency of the payment system
is that its functioning has implications for the
efficiency of the underlying markets that it supports. Some of these markets, such as those for
certain financial instruments, are worldwide. The
location of the nucleus of activity for these
markets may depend at least in part on the
integrity and efficiency of the clearing and settlement process in different countries. Thus, countries that wish to play a role as financial centers
must be concerned about the efficient operation
of their payment systems.
Central Bank Payment
System
Operations
The actual operation of payment systems by
central banks encompasses a broad range of
experience. At one end of the spectrum is the
example of the United States, where the Federal
Reserve, through the twelve Federal Reserve
Banks, has been an active operator of both paper
and electronic payment mechanisms since the
passage of the Federal Reserve Act in 1913. It is
estimated that the Federal Reserve handles onethird of all checks cleared in the United States
and the majority of automated clearinghouse
(ACH) transactions. Moreover, the Federal Re-
7. This estimate does not include any imputed cost associated with the risks assumed by banks (including the central
bank) in granting credit as part of the payment process. See
Humphrey and Berger (1990).
serve handles about half of large-value funds
transfers and all book-entry securities transfers
of U.S. government and certain agency securities
over Fedwire. Since the passage of the Monetary
Control Act of 1980, the Federal Reserve has
established fees for providing payment services.
Payment services are offered in direct competition with the private sector, and the Federal
Reserve recovers the full costs of providing these
services, including the imputed costs of capital,
debt, and taxes that a private firm would incur.
Revenues generated from providing payment services now total nearly $800 million annually.
The Federal Reserve's dual role of competitor
in and regulator of the payment system has been
a difficult and almost chronically controversial
one. The Congress of the United States mandated a very active operational role for the
Federal Reserve in the payment system because
of conditions arising from the fractionalized U.S.
banking structure, in which true nationwide
banking does not exist even today, and because
of the geographic size and diversity of the nation.
The geography and legal environment in the
United States probably create a unique set of
conditions. The conditions that influence the
extent of a central bank's involvement in payment system operations can change with time,
however, so that the operating role of the central
bank should not necessarily be taken as a constant, but rather as a matter of policy choice
influenced by environmental factors.8
Conditions other than geography and banking
structure, however, may lead a central bank to
play a significant operating role in a nation's
payment system. For example, in some nations,
such as France, the central bank plays a major
operational role in the payment system on behalf
of the banking system. In this model, which is
probably influenced by economies of scale and
national preferences regarding the degree of direct governmental involvement in the management of national "utilities," the central bank is
the logical entity to provide the payment infrastructure.
At the other end of the spectrum of payment
system operations, a central bank may play a
8. See Johnson (1990).
Clearing and Payment Systems: The Role of the Central Bank
very minor role in the operation of its nation's
payment system. In Canada and the United
Kingdom, for example, payment processing is
largely carried out by private enterprises and is
governed by a ruling body composed of representatives of the financial services sector. The
central bank, while not directly involved in the
operations of the payment system, typically
plays a coordinating role in these arrangements
and, under certain terms and conditions, may
make its books available for the settlement of
payment transactions.
My purely personal point of view, which is
conditioned by more than a decade of involvement in the payment system, both as a practitioner and as a policy advisor, is that the benefits
of placing operations in the hands of the private
sector should not be underestimated. Indeed, in
virtually every other market for goods and services, the benefits of competition in ensuring a
continuous high standard of performance are
best attained through a free market approach.
Assuming for the moment that principles governing the safe operation of the payment process are
clearly laid out and that compliance with these
principles is adequately supervised by the central
bank, then, all other things equal, the process
should generally work best when ruled by competitive forces in a market environment.
I say "generally" because of the notable exception of the large-value payment mechanism
that provides immediate settlement on the books
of the central bank. This payment mechanism
may be considered an instrument of financial
policy and is therefore best controlled by the
central bank. It is virtually impossible for the
private sector to provide the same degree of
safety and liquidity for the transfer of money
balances that can be provided by the central
bank. Interbank systems for the transfer of large
amounts of funds are discussed later.
Supervision
Settlement
of Private
Systems
Clearing
and
The central bank's involvement in establishing
principles for, and, when necessary, in supervising and regulating private clearing and settlement
arrangements that support large-value transactions, is especially critical. I will not recount here
87
the financial, structural, and operational features
that should characterize these systems and in
which the central bank must have an essential
interest.9 Most important, however, are features
that commit the private participants in the specialized clearing systems, especially in multilateral clearing arrangements, to provide guarantees for the final settlement of the net positions
that arise from the clearing. Such guarantees
must be founded upon carefully constructed entrance criteria for participation in the arrangements. Moreover, members of such clearing arrangements must have the incentives and
capabilities to make their own credit judgements
about the parties with whom they will do business. In addition, concrete commitments are
needed in the form of loss-sharing arrangements
backed by either collateral or lines of credit to
ensure the liquidity and resources to guarantee
settlement in the event of default by one or more
participants.
A good deal of analysis is taking place in the
United States in both the Federal Reserve and
the private sector to refine the principles that
should govern private large-value transfer systems, including delivery-versus-payment systems. Recently, the Federal Reserve has given
regulatory approval for the operation of private
clearing arrangements for U.S. government securities (through the Government Securities
Clearing Corporation) and for mortgage-backed
securities (through the Participants Trust Company). An arrangement for dematerializing (that
is, converting from paper to book-entry form),
clearing, and settling commercial paper transactions has been started by the Depository Trust
Company. Finally, the members of CHIPS have
adopted a system of settlement guarantees for
that large-value funds transfer system.
The principles underlying the proper operation
of private clearing and settlement arrangements
are universal. Indeed, the central banks of the
Group of Ten (G-10) countries have recently
adopted international minimum standards to
guide the operation of cross-border and multi-
9. For an excellent review of these features, see the May
1988 address given by E. Gerald Corrigan at the Williamsburg
payments symposium sponsored by the Federal Reserve
Bank of Richmond. See Corrigan (1990).
88
Federal Reserve Bulletin • February 1991
currency interbank netting and clearing arrangements.10 The G-10 central banks have also recognized the need to oversee the operation of
significant interbank netting arrangements and
have established principles for cooperation
among themselves when such arrangements operate across borders.
Clearly, a component of the financial system as
important as the payment system should not go
unsupervised. Active involvement by the central
bank in developing the principles under which private clearing arrangements operate is the most important role in supervision of the payment system.
An important tool for ensuring compliance with
sound payment system principles is the regular
commercial bank examination process, in which
central banks or other governmental authorities
conduct safety and soundness inspections of individual banks. A bank's participation in a private
clearing arrangement can be scrutinized as part of
the commercial bank examination process, and
effective influence can be applied to the clearing
arrangement through the examination of the institutions that use it. In addition, the proper application
of sound payment system principles can be accomplished through supervision of the privately operated clearing organizations that adopt these principles for the processing of specialized payment
transactions. Although central bank settlement of
transactions processed through private clearing organizations provides a vehicle to ensure that such
arrangements employ sound payment system principles, the sole sanction of refusing to settle may be
disruptive for established systems. Consequently,
having more flexible supervisory tools available to
the central bank is desirable. Such supervisory
authority over clearing organizations might include
review and approval of their rules, rule writing authority, and cease-and-desist and removal powers to
address in a timely manner serious problems that
have implications for the safe and sound operation
of the payment system.
Finally, in an interdependent world where
goods, services, and financial instruments are
traded routinely across national borders, the
need for international payment mechanisms is
increasing dramatically. Such cross-border sys-
10. See Bank for International Settlements (1990).
tems may operate in many countries and time
zones, thus presenting central banks with a variety of challenges that can only be met through
cooperation in the development and execution of
payment policy. The international payment system, therefore, should be a focus of our attention
in the years ahead, as reflected in the recent
actions of the G-10 central banks to adopt minimum standards to guide the operation of crossborder interbank netting and clearing arrangements, along with principles of cooperation
among the central banks themselves for overseeing such arrangements.
THE ROLE OF THE CENTRAL
OPERATOR OF LARGE-VALUE
MECHANISMS
BANK AS
PAYMENT
Another aspect of the role of the central bank in
the payment system is, I believe, becoming increasingly important, if not essential. This role
involves the operation of a large-value, real-time
funds transfer mechanism to handle final settlement transfers on the books of the central bank.
Efficient financial markets are a prerequisite to
the development of modern financial systems. As
was noted earlier, the financial system is today
characterized by high volumes of large-value
transfers occurring each day. Experience has
shown (for example, in the Herstatt case and,
more recently, in the failure of Drexel, Burnham,
Lambert, Inc.), that the payment system is best
insulated from shocks that may have systemic
risk consequences, such as the inability of one or
more large participants to meet payment obligations, by minimizing temporal risk and establishing private settlement guarantees to maintain
confidence in the system. There is no surer way
to provide finality and certainty of actual settlement than through the irrevocable transfer of
value on the books of the central bank.
A large-value credit transfer mechanism run by
the central bank can be flexible enough to support many types of payments, including net settlement transfers generated by specialized clearing organizations. Further, the transfer of value
can occur through central bank operation of a
delivery-versus-payment system for a subset of
Clearing and Payment Systems: The Role of the Central Bank
financial instruments, for example, government
securities, in which gross transfers are settled as
they occur. Or, the central bank can offer its
real-time funds transfer capabilities to private
book-entry settlement systems to settle the net
positions of participants in these systems.
In summary, the availability of a final settlement vehicle that minimizes, to the theoretical
limit of eliminating, the time delay between the
initiation of a payment instruction and its final
settlement is becoming more and more important. There is, in my view, no substitute for a
central bank's playing the key role in governing, if not in operating, such a mechanism. Yet,
caution must be exercised lest a central bank
become the primary source of the intraday
liquidity needed for a smoothly functioning
payment process. Along these lines, a relevant
case study is our experience in the United
States with daylight overdrafts on the books of
the central bank occurring as a result of the
operation of a large-value funds transfer mechanism.
As was noted earlier, the practice of providing intraday credit as part of the payment
process is now recognized as a core banking
function. In the United States, the Federal
Reserve provides a huge amount of daylight
liquidity to the U.S. payment system. Nearly 40
percent of these daylight overdrafts are incurred by the ten largest overdrafters, while
approximately three-quarters are incurred by
the fifty largest overdrafters. There is also a
private-sector source of intraday credit through
CHIPS, with controls in place since October
1990 to help ensure timely end-of-day settlement should a participant with a large intraday
net debit position be unable to cover its obligations by the close of business.
Daylight credit is roughly analogous to the
short-term working capital requirements of
firms whose intraday patterns of receipts may
not exactly match their patterns of expenditures. A large, complex, market-oriented economy could not function effectively without a
certain amount of intraday liquidity to fund the
gaps that result from the difficulty associated
with synchronizing the timing of high volumes
of payment transactions. In the United States,
the central bank currently provides this liquid-
89
ity at no explicit cost. In Switzerland, in contrast, the central bank does not permit daylight
overdrafts, and banks have managed to conduct
their business without an intraday market. Yet,
again, in Japan the central bank provides no
intraday liquidity, but a private market for
daylight (morning and afternoon) credit has
emerged.
Daylight credit is a valuable commodity. Extensions of daylight credit, however, have the economic cost of exposing the lender to default risk.
For the central bank, a direct connection exists
between the extension of intraday credit and discount window or Lombard credit, because a borrower's inability to repay its daylight loan puts the
central bank in the position of having to consider
converting the loan to an overnight credit.
If something has value but is not priced, then it
tends to be overused and wasted. The current
high level of daylight overdrafts in the United
States and the resulting exposure of the Federal
Reserve to default risk suggest that intraday
credit is now being overused in the United
States. Accordingly, the Board of Governors
proposed in June 1989, and expects to implement
once a scheme for measuring daylight overdrafts
is adopted, an explicit fee for the use of daylight
credit extended by the Federal Reserve Banks.
The rationale for pricing daylight overdrafts is
two-fold. First, the Federal Reserve strongly
favors market solutions to resource allocation
problems. Second, we believe that the significant
amount of daylight credit currently supplied
should be controlled and reduced, without, however, disrupting the payment system. Charging a
relatively low fee should permit users of payment
services to make the adjustments necessary to
reduce gradually the amount of daylight overdrafts they incur while avoiding abrupt changes
in the supply of daylight credit.11
From a historical perspective, it seems clear to
me that the Federal Reserve had no intention whatsoever of providing large amounts of daylight credit,
priced or otherwise, when it began offering funds
transfer services early in its history. The origins of
11. The Federal Reserve Board has proposed phasing in a
charge of 25 basis points at an annual rate for daily average
daylight overdrafts as an appropriate starting point for daylight overdraft pricing.
90
Federal Reserve Bulletin • February 1991
the present-day Fedwire system date to 1918, and
the designers and operators of the early system
could not have anticipated the significant increase in
the value and velocity of payments. In fact, it was
not until the 1970s that the increase in the volume of
funds transfers resulted in the rapid intraday turnover of reserve balances, leading to material extensions of intraday credit. Accordingly, I think it
unlikely that the Federal Reserve would have positioned itself as a large provider of daylight credit had
the nature of the modern day phenomenon been
better understood when Fedwire was designed.
Consideration of the role of the central bank
as the operator of a large-value funds transfer
system leads naturally to the question of the
"safety net" attributes of this role. Access to
the payment system through clearing and settlement services provided by the central bank,
including perhaps central bank credit, is one
component of the safety net that central banks
and governments place under their financial
systems. In many countries, various implicit
and explicit forms of deposit insurance designed to ensure public confidence in depository institutions and the safety of their deposits
are also a component. Of course, the most
essential component of the safety net is the
emergency liquidity assistance that is available
through the central bank.
Like any other part of the safety net, access to
the payment system must be judiciously managed to ensure that it is not abused. Used properly, however, and in combination with the central bank's supervisory and regulatory oversight
of the banking system, access to the payment
system can be a useful regulatory tool in ensuring
that depository institutions do not fail prematurely. 12 In essence, the central bank gives financial
system participants confidence that the payments
they may receive from a troubled institution are
good value. With this confidence, they will be
willing to continue to deal with the troubled
institution, thus providing the time the bank
regulatory authorities need to work out an orderly solution to the problem. Without such
confidence, a troubled institution, by being fro-
12. See Board of Governors of the Federal Reserve System
(1990).
zen out of the payment system, would be isolated
and doomed to immediate failure.
SUMMARY
The payment system is now recognized as an
essential component of a smoothly operating
market economy supported by an efficient and
complex financial system. The central bank has
a proper role (1) in establishing public policy to
govern the structure of clearing and settlement
arrangements in the payment system; (2) in
supervising the payment system through the
clearing organizations and banking institutions
that play key roles in risk management; (3) in
providing settlement across its books; and (4) in
operating large-value payment mechanisms.
Much is to be gained by permitting private
entities to compete in the provision of payment
services to the public. Because of the critical
nature and "safety net" attributes of largevalue payment mechanisms, however, operation of such a mechanism, alone or in parallel
with similar privately operated mechanisms, is
properly a role of the central bank. Central
banks must take care in controlling the intraday
liquidity they provide to the financial system
and the payment system risk they absorb.
REFERENCES
Bank for International Settlements. Report of
the Committee on Interbank Netting Schemes of
the Central Banks of the Group of Ten Countries.
Basle: BIS, November 1990.
Board of Governors of the Federal Reserve
System. "The Federal Reserve in the Payments
System," Federal Reserve Bulletin, vol. 76 (May
1990), pp. 293-98.
Corrigan, E. Gerald. "Perspectives on Payment System Risk Reduction," in Humphrey,
U.S. Payment System, pp. 129-39.
Goodfriend, Marvin S. "Money, Credit, Banking, and Payment System Policy," in Humphrey,
U.S. Payment System, pp. 247-77.
Humphrey, David B., ed. The U.S. Payment
System: Efficiency, Risk and the Role of the
Federal Reserve. Boston: Kluwer Academic
Publishers, 1990.
Clearing and Payment Systems: The Role of the Central Bank
and Allen N. Berger. "Market
Failure and Resource Use: Economic Incentives to Use Different Payment Instruments,"
in Humphrey, U.S. Payment System, pp. 4592.
Johnson, Manuel H. Speech delivered at the
Annual Conference of the National Automated
91
Clearing House Association, Washington, D.C.,
May 2, 1990.
Parkinson, Patrick M. "Innovations in Clearing Arrangements: A Framework for Analysis."
Paper prepared for the Conference on Bank
Structure and Competition, Federal Reserve
Bank of Chicago, May 9, 1990.
92
Industrial Production and Capacity Utilization
Released for publication on December 14
Industrial production fell 1.7 percent in November
after a decline of 0.9 percent (revised) in October. A
20 percent drop of motor vehicle assemblies coupled with a sharp curtailment in output of related
parts and materials accounted for more than half of
the overall loss. In addition, production at utilities
fell 3.6 percent, owing mainly to unseasonably
warm weather. Elsewhere, industrial output declined noticeably for the third successive month.
Total industrial capacity utilization dropped 1.5 percentage points to 80.9 percent, its lowest level since
May 1987. At 107.5 percent of its 1987 annual
average, total industrial production in November
was 0.6 percent below its level of a year ago.
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Capacity and industrial production
Ratio scale, 1987 production = 100
All series are seasonally adjusted. Latest series, November.
Ratio scale, 1987 production = 100
93
1987 = 100
Percentage change from preceding month
1990
1990
Industrial production
NOV.P
Percentage
change,
Nov. 1989
to
Nov. 1990
-1.7
-.6
Aug. r
Sept/
Oct. r
Nov. p
Aug/
Sept/
Oct/
Total index
110.5
110.4
109.4
107.5
.1
-.1
-.9
Previous estimates
110.4
110.6
109.6
.0
.2
-.8
Major market groups
Products, total
110.9
111.1
110.1
108.4
.0
.1
-.8
-1.6
-.4
Consumer goods
Business equipment
Construction supplies
Materials
107.8
125.4
105.3
109.7
108.1
126.5
103.5
109.3
107.0
125.4
102.5
108.2
104.9
123.0
100.8
106.2
.3
.4
-1.3
.1
.3
.8
-1.7
-.4
-1.0
-.8
-.9
-1.0
-2.0
-1.9
-1.7
-1.8
-2.3
3.7
-5.8
-.7
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
111.1
113.5
108.1
102.4
111.4
111.0
113.6
107.6
103.7
110.8
110.1
112.3
107.2
102.6
109.1
108.2
109.5
106.6
102.5
105.1
.0
.1
-.1
-1.6
1.6
-.1
.0
-.4
1.2
-.5
-.8
-1.1
-.4
-1.0
-1.6
-1.7
-2.5
-.6
-.1
-3.6
-.6
-.5
-.7
1.3
-3.0
Percent of capacity
Capacity utilization
Average,
1967-89
Low,
1982
High,
1988-89
1989
1990
Nov.
Aug/
Sept/
Oct/
NOV.P
Capacity
growth,
Nov. 1989
to
Nov. 1990
Total industry
82.2
71.8
85.0
83.5
83.6
83.3
82.4
80.9
2.7
Manufacturing
Advanced processing
Primary processing
Mining
Utilities
81.5
81.1
82.3
87.3
86.8
70.0
71.4
66.8
80.6
76.2
85.1
83.6
89.0
87.2
92.3
83.0
81.7
86.1
87.1
86.2
82.8
81.4
85.9
89.2
87.9
82.5
81.5
84.7
90.4
87.4
81.6
80.7
83.8
89.6
85.9
80.0
78.9
82.4
89.6
82.7
3.2
3.5
2.5
-1.4
1.1
r Revised.
p Preliminary.
In market groups, output of consumer goods
other than motor vehicles was curtailed sharply
again in November. The production of goods for the
home, such as appliances and furniture, has weakened considerably since June, and clothing output
continued its downward trend evident throughout
this year. The output of consumer energy products,
particularly gasoline and electricity for residential
use, also declined sharply in November. The production of business equipment other than autos and
trucks was reduced about V4 percent in November,
after a decrease of about V2 percent in October. This
recent weakness has been concentrated in industrial
equipment; output in this sector had risen sharply,
on balance, between March and September. In
November, the production of construction supplies
dropped further and was nearly 7 percent below the
recent high levels reached early this year. Apart
from the decline in parts and materials for motor
vehicles, the most significant decreases in output of
materials occurred in the energy components, par-
NOTE. Indexes are seasonally adjusted,
ticularly in electricity generation and coal mining.
Among other materials, production of textiles fell
again, and output of basic metals edged down after
having declined sharply in the previous two months;
in contrast, production of paper materials continued
to be well maintained.
In industry groups, manufacturing output fell
1.7 percent in November; the factory utilization
rate fell 1.6 percentage points to 80 percent, its
lowest level since January 1987. Excluding motor
vehicles and parts, manufacturing output fell 0.8
percent in November, after a decline of 0.7
percent in October and a drop of 5.0 percent in
September. The utilization rate at mines was
unchanged in November, but the operating rate
for utilities fell sharply again.
For the second month, declines were widespread throughout manufacturing. Output of durable goods fell 2.5 percent in November; a
decrease of more than 8 percent in transportation
equipment accounted for about half the decline,
94 Federal Reserve Bulletin • February 1991
while production of furniture, lumber, and fabricated metals also dropped sharply. Output of
nondurable goods fell 0.6 percent in November,
and declines were somewhat less widespread
than those in durables.
Utilization in both primary and advanced
processing industries fell sharply in November.
The operating rate for primary processing now
stands at 82.4 percent, about the same as its
1967-89 average. The weakest primary processing industries are lumber and textiles, in
which utilization rates are well below their
longer-run averages. Most other primary processing industries still show above-average operating rates despite the recent declines. In
contrast, utilization for advanced processing
industries has fallen to 78.9 percent, more than
2 percentage points below its longer-run average. Rates for motor vehicles and parts, apparel, printing and publishing, and instruments
are all more than 4 percentage points below
their respective longer-run averages.
95
Announcements
CHANGE IN THE DISCOUNT
RATE
The Federal Reserve Board announced on December 18, 1990, a reduction in the discount rate
from 7 percent to 6V2 percent, effective Wednesday, December 19.
Action was taken against the background of
weakness in the economy, constraints on credit,
and slow growth in the monetary aggregates. The
reduction, in part, realigns the discount rate with
market interest rates.
In taking the action, the Board voted on requests submitted by the boards of directors of the
Federal Reserve Banks of Boston, New York,
Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, and Dallas. The Board subsequently approved similar requests by the
boards of directors of the Federal Reserve Banks
of Philadelphia, Cleveland, and San Francisco,
also effective December 19. The discount rate is
the interest rate that is charged depository institutions when they borrow from their District
Federal Reserve Banks.
REDUCTION IN THE RESERVE
REQUIREMENTS ON NONPERSONAL
TIME
DEPOSITS AND NET
EUROCURRENCY
LIABILITIES
The Federal Reserve Board announced on December 4, 1990, a reduction in reserve requirements on nonpersonal time deposits and on net
Eurocurrency liabilities.
There is currently a 3 percent reserve requirement on nonpersonal time deposits with an original maturity of less than eighteen months and on
net Eurocurrency liabilities. Both requirements
will be lowered to zero over coming weeks.
The Board has been reviewing these reserve
requirements for some time. Reserve requirements on nonpersonal time deposits and net
Eurocurrency liabilities were retained in the
Monetary Control Act of 1980, primarily to permit greater precision of monetary control when
policy focused on reserve aggregate targeting. In
subsequent years, as the Federal Reserve moved
away from the procedures in effect in the early
1980s, which required a broad reserve base,
reserve requirements on nonpersonal time accounts have become somewhat of an anachronism. Moreover, the current 3 percent requirement has placed depository institutions at a
disadvantage relative to other providers of
credit, spawning efforts to circumvent the requirement.
The Board took action at this time also in
response to mounting evidence that commercial
banks have been tightening their standards of
creditworthiness and the terms and conditions
for many types of loans. While much of this
tightening has been welcome from the standpoint
of safety and soundness, it has in recent months
begun to exert a contractionary influence on the
economy. This influence has been reflected in
slow growth in the broad monetary aggregates
and in bank credit.
Lower reserve requirements at any given level
of money market interest rates will reduce costs
to depository institutions, providing added incentive to lend to creditworthy borrowers, thus
countering, to some extent, the recent tightening
in credit terms.
The change will be implemented in two steps.
The reserve ratios will be reduced to 1.5 percent
in the reserve maintenance period that begins
December 13 and to zero in the following maintenance period beginning December 27. This
phase-in occurs at a time when there otherwise
would be a large seasonal need to provide reserves to depository institutions.
For small institutions that report and have
fixed required reserves on a quarterly basis, the
reduction will take place in the next quarterly
period starting January 17, 1991.
Currently, required reserves on nonpersonal
96
time deposits total about $11.7 billion and about
$1.9 billion on net Eurocurrency liabilities.
About $2 billion of these reserve requirements
are satisfied through vault cash holdings, with the
rest met by balances at the Reserve Banks.
No change was made by the Board in the current
level of reserve requirements on transaction accounts—3 percent on the first $40.4 million of net
transaction accounts and 12 percent on levels above
that amount. The "low reserve tranche" will be
raised to $41.1 million later this month.
A zero requirement has applied for many years
to nonpersonal time deposits with an original
maturity of eighteen months or more.
S&L Association, Chicago, Illinois; and Woodbury C. Titcomb, President and CEO, Peoples
Bancorp of Worcester, Inc. and Peoples Savings
Bank, Worcester, Massachusetts.
The other members of the Council are the
following: David L. Hatfield, President of Fidelity Federal Savings and Loan Association, Kalamazoo, Michigan; Lynn W. Hodge, President
and CEO of United Savings Bank Inc., Greenwood, South Carolina; Elliot K. Knutson, Chairman and CEO of Washington Federal Savings &
Loan Association, Seattle, Washington; and
John Wm. Laisle, President and CEO of MidFirst Bank SSB, Oklahoma City, Oklahoma.
APPOINTMENT OF NEW MEMBERS
THRIFT INSTITUTIONS ADVISORY
REGULATION
TO THE
COUNCIL
The Federal Reserve Board announced on December 21, 1990, the names of seven new members appointed to its Thrift Institutions Advisory
Council (TIAC) and designated a new President
of the Council for 1991.
The Council is an advisory group made up of
twelve representatives from thrift institutions.
The panel was established by the Board in 1980
and includes representatives from savings and
loan associations, savings banks, and credit
unions. The Council meets at least four times
each year with the Board of Governors to discuss
developments relating to thrift institutions, the
housing industry, mortgage finance, and certain
regulatory issues.
Marion O. Sandler, President/Chief Executive
Officer of World Savings and Loan Association,
Oakland, California, will serve as President.
The seven new members, named for two-year
terms that began January 1, are the following:
Daniel C. Arnold, Chairman and President of
Farm and Home Financial Corporation, Houston, Texas; James L. Bryan, President and CEO,
TEXINS Credit Union, Richardson, Texas;
Richard A. Larson, Chairman and CEO, West
Bend Savings Bank, West Bend, Wisconsin;
Preston Martin, Managing Director, WSGP Partners, L.P., San Francisco, California; Richard D.
Parsons, President and CEO, the Dime Savings
Bank of New York, New York City; Edmond M.
Shanahan, President and CEO, Bell Federal
H:
AMENDMENT
The Federal Reserve Board amended on December 20, 1990, its Regulation H (Membership in
the Federal Reserve System), concerning the
payment of dividends by state member banks.
The rule revises the way in which state member
banks calculate their dividend payment capacity
and brings the treatment of loan-loss reserves for
dividend payment purposes into line with current
regulatory reporting standards and generally accepted accounting principles (GAAP).
Portions of the rule have been made effective
immediately to allow state member banks to use
the new rule in calculating dividend payments for
1990.
The provisions of the Board's rule are consistent with a similar rule published for national
banks by the Office of the Comptroller of the
Currency on December 13, 1990.
PROPOSED
ACTIONS
The Federal Reserve Board issued for public
comment on December 19, 1990, a proposal to
require depository institutions that originate or
receive commercial automated clearinghouse
(ACH) transactions through the Federal Reserve
Banks to establish electronic access to the Reserve Banks for ACH services. Comments are
due by March 27, 1991.
The Federal Reserve Board issued for public
comment on December 5, 1990, interim amend-
97
ments it has adopted to Regulation CC (Availability of Funds and Collection of Checks) to
conform the regulation to a recent amendment to
the Expedited Funds Availability Act, pending
adoption of a final rule. Comment was requested
by January 11, 1991.
CHANGES
IN BOARD
STAFF
The Board of Governors announced a change,
effective December 17, 1990, in the name of the
Division of Federal Reserve Bank Operations to
Division of Reserve Bank Operations and Payment
Systems to appropriately reflect this Division's responsibilities for overseeing Reserve Bank activities
and developments in payment systems. It also announced, in the Division of Reserve Bank Operations and Payment Systems, the promotion of David
L. Robinson from Associate Director to Deputy
Director of Finance and Control and the assignment
of Bruce J. Summers from the Federal Reserve
Bank of Richmond to fill the position of Deputy
Director of Payments and Automation.
98
Record of Policy Actions
of the Federal Open Market Committee
MEETING
HELD ON NOVEMBER
Domestic
Policy
13,
1990
Directive
The information reviewed at this meeting suggested that economic activity was weakening in
the fourth quarter. A substantial decline in real
disposable income and falling consumer confidence pointed to some softening in consumer
demand, and advance indicators of business capital spending signaled considerable sluggishness
in investment expenditures. At the same time,
businesses appeared to be keeping a tight rein on
their inventories, partly through recent sharp
cuts in output. Industrial production had turned
down after rising moderately during the summer,
and recent declines in nonfarm payroll employment and average workweeks indicated some
emerging slack in labor markets. Broad measures
of prices continued to be boosted by the surge in
energy prices, but the trend in labor costs appeared to have improved slightly.
Total nonfarm payroll employment declined
further in October. Job losses were widespread
across industries but were particularly notable in
the manufacturing and construction sectors. Employment also contracted at wholesale and retail
trade establishments for the third straight month.
In October, the civilian unemployment rate held
steady at 5.7 percent while initial claims for
unemployment insurance rose steeply.
After rising moderately during the summer,
industrial production declined substantially in October. Part of the drop reflected a slower pace of
motor-vehicle assemblies; however, reductions in
output were widespread in other industries as
well, especially in those producing non-auto consumer goods and construction supplies. Total
industrial capacity utilization fell in October after
edging up on balance in the previous two quarters.
Consumer spending was estimated to have
leveled out in real terms over August and September, when a surge in energy prices caused a
substantial drop in real disposable income. Nevertheless, over the third quarter as a whole, the
pace of spending was substantially higher than in
the previous quarter. Major surveys of consumer
attitudes continued to indicate a sharp deterioration in consumer confidence. Total private housing starts edged lower in September; sales of new
and existing homes continued to weaken, and the
vacancy rate for rental apartments persisted at a
high level.
Shipments of nondefense capital goods rose on
balance over the August-September period; the
gain resulted in part from increases for office and
computing equipment. New orders for business
equipment pointed to a considerable softening in
spending for such goods in coming months. Nonresidential construction activity fell appreciably
in August and September, retracing the increases
recorded in the two previous months. Persisting
high vacancy rates for commercial properties in
many areas, financial pressures on builders and
their lenders, and the downward trend in construction permits and contracts suggested that
nonresidential building activity would remain
sluggish. Manufacturing inventories posted only
modest increases over the August-September
period, and the ratio of stocks to shipments
edged lower. At the retail level, non-auto inventories changed little on balance over July and
August, and inventory-sales ratios remained
within the range that had prevailed for an extended period.
The nominal U.S. merchandise trade deficit
widened slightly in August from the revised July
rate; for the two months combined, the deficit
was substantially higher than its average rate for
the second quarter. In August, a sharp increase
in the price of imported oil was only partly offset
by a decline in the quantity imported; the value
99
of non-oil imports was little changed from the
elevated July level. Exports picked up somewhat
in August but remained within the range recorded in the first half of the year. The performance of the major foreign industrial economies
had been mixed. In Western Germany and Japan,
the pace of economic activity remained robust in
the third quarter, and growth in France picked up
after a weak second quarter. In Canada and the
United Kingdom, by contrast, economic activity
appeared to be declining. Measures of consumer
price inflation had risen for almost all of the
major industrial countries, reflecting mainly the
effects of higher energy prices.
Producer prices of finished goods rose sharply
in October, boosted for the third consecutive
month by the effects of higher oil prices; food
prices also advanced and reversed their September decline. Producer prices of non-energy, nonfood finished goods increased in September and
October at about the moderate average pace
evident in previous months of the year. At earlier
stages of processing, the prices of metals and
some raw materials had fallen considerably, despite the depreciation of the dollar on foreign
exchange markets. Higher oil prices continued to
push up consumer prices, which rose in September at the elevated August rate. Excluding energy and food items, consumer inflation slowed a
little in September, but the rate of increase over
the first nine months of the year was appreciably
above the pace during 1989. The growth in total
compensation costs for private industry workers
decelerated in the third quarter, reflecting
smaller gains in wages and salaries. Measured on
a year-over-year basis, twelve-month changes in
total labor compensation had fallen a bit below
the rates recorded earlier in the year, when
increases in payroll taxes and the minimum wage
exerted their initial effect on labor costs. Average
annual earnings of production or nonsupervisory
workers were unchanged in October.
At its meeting on October 2, the Committee
adopted a directive that called for maintaining
the existing degree of pressure on reserve positions for at least a short period after the meeting.
It was presumed that some slight easing would be
implemented later in the intermeeting period,
assuming passage of a federal budget resolution
calling for a degree of fiscal restraint comparable
to that under consideration at the time of the
meeting and the absence of major unexpected
economic or financial developments. After such
an easing, the directive provided that slightly
greater reserve restraint might be acceptable
during the remainder of the intermeeting period
or somewhat lesser 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 about 4 and 2 percent respectively over
the period from September through December.
After the Committee meeting, open market
operations were directed initially at maintaining
unchanged reserve conditions. In late October,
against the background of a weakening economy
and in light of the conclusion of a budget agreement involving large reductions in the federal
deficit over the next several years, pressures on
reserve conditions were eased slightly. Over the
course of the intermeeting period, several technical adjustments also were made to assumed
levels of adjustment plus seasonal borrowing to
reflect the declines in seasonal borrowing activity
that typically occur during the autumn. Adjustment plus seasonal borrowing fell from about
$500 million in the reserve maintenance period
completed immediately after the October meeting to an average of roughly $250 million thus far
in the maintenance period ending the day after
this meeting. In the context of more cautious
reserve management policies at some banks and
some carryover of end-of-quarter pressures, the
federal funds rate generally remained near SlA
percent in the early part of the intermeeting
period. Subsequently, as end-of-quarter pressures receded, the funds rate edged down to 8
percent; late in the period, after the slight easing
of reserve conditions, the funds rate slipped
further to 73/4 percent or a bit below. Most other
market interest rates also declined over the intermeeting period; however, the reductions
tended to be greater for Treasury than for private
issues, reflecting increased demand for highgrade assets by investors concerned about credit
quality. Yields on Treasury bonds rose apprecia-
100 Federal Reserve Bulletin • February 1991
bly shortly after the October meeting when a
budget accord initially failed to receive congressional approval; they more than retraced these
increases as prospects for fiscal restraint grew
brighter, clearer signs of a softer economy
emerged, and investors sought higher-quality investments.
In foreign exchange markets, the tradeweighted value of the dollar in terms of the other
G-10 currencies declined considerably further
over the intermeeting period. The long budget
stalemate, indications of additional weakness in
the U.S. economy, concerns about the U.S.
financial system, and associated expectations of
an easing in U.S. monetary policy contributed to
the drop in the dollar. The decline was intensified
by signs that monetary policy remained restrictive in Japan and might tighten in Germany.
In October, M2 grew only slightly after two
months of relatively rapid expansion, while M3
was about unchanged. The sluggishness of M2 in
October owed partly to a contraction in its transactions and liquid savings components. The managed-liability components of M3 also were weak,
reflecting restrained asset growth at banks and
stepped-up thrift resolution activity around the
end of the quarter. Through October, expansion
of M2 was estimated to be somewhat below the
middle of the Committee's range for the year and
growth of M3 near the lower end of its range. The
expansion of total domestic nonfinancial debt
appeared to have been near the midpoint of its
monitoring range.
The staff projection was prepared against the
background of continuing uncertainties associated with the situation in the Persian Gulf region.
The staff continued to assume that no major
further disruption to world oil supplies would
occur and that oil prices would drop appreciably
in the first half of next year. The staff also
assumed continuing constraints on the supply of
credit, reflected in tighter terms and reduced
availability, in response to perceptions of increased credit risks in a relatively weak economy
and the problems facing many financial intermediaries. In the near term, higher energy costs
would damp real disposable income and consumer spending, and reduced credit availability
would be among the factors restraining outlays
for business equipment and spending for residen-
tial and nonresidential construction. In these
circumstances, a mild downturn in overall activity was projected for the near term, but growth
was expected to resume during the first half of
1991, aided in part by the assumed decline in oil
prices. The staff anticipated that exports would
grow relatively rapidly over the next several
quarters in association with continued expansion
on average in the economies of major foreign
industrial nations and the increased international
competitiveness of U.S. goods owing to the
dollar's depreciation over the past year. As business sales and orders improved, production
could be expected to pick up and business investment outlays to rise. The outlook for inflation
remained clouded by the uncertainties regarding
oil prices, but given the assumption of a sizable
decline in the latter and some increased slack in
resource utilization, the staff projected a slower
rise in prices and labor costs.
In the Committee's discussion of the economic
situation and outlook, members focused on the
growing indications of a softening economy. Some
key measures of business conditions suggested a
decline in the economy, and business and consumer
sentiment appeared to have deteriorated appreciably; however, the available data on recent developments were still limited, particularly with respect to
consumer and business capital spending, and as a
consequence were still inconclusive. Moreover,
some developments that typically can contribute to
a recession, such as a substantial buildup in inventories, did not seem to be a factor in the current
economic situation. Assuming lower oil prices in the
months ahead and given the outlook for further
strength in exports stemming especially from the
substantial decline that had occurred in the foreign
exchange value of the dollar, a relatively mild downturn followed by a limited rebound next year was
viewed as a reasonable expectation.
Many of the members noted that, while the
most likely outcome was a relatively mild and
brief downturn, there were risks of a more severe
or prolonged contraction in economic activity.
The substantial decline that had occurred in
business and consumer confidence likely reflected not only the course of events in the
Middle East, but perhaps also uncertainty about
developments in that area and their implications
for oil prices. A cutback in spending that more
Record of Policy Actions of the Federal Open Market Committee
fully reflected these attitudes could be greater
than currently appeared to be under way. Another source of risks that also could be contributing to the decline in confidence was the state of
the financial system, including concerns about
the condition of many financial institutions, a
curtailed supply of credit to many borrowers,
and more generally a widespread perception of
relatively fragile financial conditions. Bank loan
officers appeared to be reacting increasingly to
what they perceived as rising credit risks in a
softening economy; their incentives to restrict
their lending were strengthened by concerns
about the capital positions of their own banks
and the possibility that their institutions could
face a reduced availability or higher cost of
funds. To an important extent, banker attitudes
were being influenced by developments in the
real estate markets; further, or more widespread,
weakening in those markets would add to problem loans in bank portfolios and could foster
further cutbacks in bank lending activity more
generally. Financial institutions other than banks
also were experiencing funding and other difficulties, raising concerns that they might become
less willing suppliers of credit. For now, growth
in credit and related expansion in money were
sluggish but did not seem to be collapsing. Nonetheless, members remained concerned that supplies of credit might prove inadequate to the
needs of many qualified borrowers, thereby
deepening any downturn and impeding a satisfactory rebound in economic activity.
Members continued to report uneven conditions in different parts of the country and sectors
of the economy, but signs of some weakening in
business activity were increasing in most areas.
Moreover, in keeping with broad survey results,
contacts indicated that business and consumer
confidence had deteriorated in virtually all parts
of the country, including areas that were experiencing at least modest growth in overall business
activity. At the same time, conditions were reported to be generally favorable in agriculture,
export demands were growing, and on the whole
business inventories were indicated to be close to
desired levels, at least given current levels of
demand.
Members noted that the adverse effects of
sharply higher oil prices on disposable incomes
101
and consumer sentiment appeared among other
developments to have arrested the growth in real
consumer spending in recent months; retail sales,
notably of automobiles and other durables, were
expected to remain weak and possibly decline
over the next several months, although the prospective increase in federal excise taxes on certain luxury items might well boost sales of such
goods through year-end at the expense of sales
early next year. Members agreed that in the
absence of further disturbances in oil markets,
growth in real consumer spending could be expected to resume, especially if oil prices were to
decline; indeed, such growth was likely to provide a major impetus for some strengthening in
the economy next year. Net exports also appeared to be positioned to contribute to expanding business activity as a result of the substantial
declines that had occurred in the foreign exchange value of the dollar and sustained expansion in a number of major foreign industrial
countries. Business contacts reported that demands from abroad were continuing to buttress
manufacturing activity in many areas, although
there were indications of some slippage in such
demands from some countries. The prospects for
business investment remained less promising for
a number of reasons, including the uncertain
outlook for sales and profits and the weakness in
commercial construction associated with earlier
overexpansion. With regard to the outlook for
fiscal policy, the difficult and extended process of
securing the recent budget agreement and the
still massive deficits projected for the nearer term
appeared to have had an adverse effect at least
temporarily on attitudes, and perhaps as a consequence financial markets had not yet fully
recognized the appreciable degree of enforceable
restraint that was built into that agreement.
Turning to the outlook for inflation, members
referred to accumulating indications that the core
rate of inflation, excluding the discernible effects
of the surge in energy prices, might have stabilized. There were signs of diminished wage pressures in the aggregate data, and the latter were
confirmed by reports from several parts of the
country. In the context of reduced pressures on
productive resources, it now seemed more likely
that the effects of higher oil and import prices
would not be built into the general price and
102 Federal Reserve Bulletin • February 1991
wage structure. Nonetheless, members cautioned that an extended period probably would
be needed before substantial progress was
achieved in reducing inflation, given the strength
of inflationary expectations.
In the Committee's discussion of policy for the
intermeeting period ahead, all of the members
indicated that they favored or could support a
proposal calling for some slight immediate easing
of reserve conditions; one member expressed a
preference for somewhat greater easing while
another saw advantages in delaying the easing
move. The growing signs of a softening economy, the related vulnerability of many business
and financial firms to added financial strains, and
the increased reluctance of institutional lenders
to accommodate less than prime business borrowers suggested that the Committee should
remain especially alert during the weeks ahead to
signals that some further easing was appropriate.
The lack of significant monetary growth over the
course of recent months also was seen as pointing in the same direction. However, the weakness in the economy reflected in part an external
shock whose effects could not be entirely offset
without exacerbating a still substantial inflation,
and the dollar had been under considerable
downward pressure in the foreign exchange markets. In this situation, any easing needed to be
approached with caution. While there were some
differences in emphasis, the members agreed that
a limited degree of easing at this juncture would
provide some insurance against a deep and prolonged recession without incurring a substantial
risk in current circumstances of fostering intensified inflationary pressures.
In their discussion, members took account of a
staff analysis that pointed to weaker monetary
growth in the current quarter than had been
anticipated at the time of the previous meeting.
The slower expansion in M2 and M3 appeared to
reflect the tightening supply of credit through
depository institutions and the associated damping of asset expansion and funding needs at those
institutions. In addition, slower projected growth
in nominal GNP in the current quarter implied
reduced demands for money and credit. Some
members commented that the projected expansion of both M2 and M3 within the Committee's
ranges for the year suggested that monetary
policy on balance had been on an appropriate
course. However, the recent weakness in monetary growth was becoming a matter of increasing
concern and was an important consideration for
some members in their support of some easing of
reserve conditions.
In regard to possible intermeeting adjustments
in the degree of reserve pressure, most of the
members indicated a preference for retaining the
current bias in the directive toward potential
easing. In support of this view, it was noted that in
prevailing circumstances an intermeeting move, if
any, was more likely to be toward some easing
than the reverse. A few members questioned,
however, whether such a bias was desirable in
light of the slight easing that the members already
contemplated, especially since any additional
move would represent the third easing action by
the Committee in a relatively short period. In the
circumstances, it was understood that a tilt
toward ease in the directive would not imply any
commitment to a second easing action during the
intermeeting period; in particular, the potential
desirability of any additional easing would need to
be assessed in the light of market reactions to the
initial action, especially the behavior of the dollar
in the foreign exchange markets.
At the conclusion of the Committee's discussion, all of the members indicated their acceptance of a directive that called for a slight reduction in the degree of pressure on reserve
positions. The directive also called for giving
weight to potential developments that might require some slight further easing during the intermeeting period. Accordingly, slightly greater reserve restraint might be acceptable during the
intermeeting period or somewhat lesser 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.
At the conclusion of the meeting the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests a
weakening in economic activity. Total nonfarm payroll
employment declined further in October, reflecting
sizable job losses in manufacturing and construction;
the civilian unemployment rate held steady at 5.7
Record
of Policy Actions
percent. Industrial production declined sharply in October after rising moderately during the summer. Consumer spending is estimated to have flattened out in
real terms over August and September when a surge in
energy prices caused a substantial drop in real disposable income. Advance indicators of business capital
spending point to considerable softening in investment
in coming months. Residential construction weakened
further in the third quarter. The nominal U.S. merchandise trade deficit widened substantially in JulyAugust from its average rate in the second quarter as
imports strengthened. Markedly higher oil prices have
boosted consumer and producer prices in recent
months. The latest data on labor costs suggest some
slight improvement from earlier trends.
Most interest rates have fallen somewhat since the
Committee meeting on October 2. In foreign exchange
markets, the trade-weighted value of the dollar in
terms of the other G-10 currencies has declined considerably further over the intermeeting period.
In October, M2 grew only slightly after two months
of relatively rapid expansion, while M3 was about
unchanged. Through October, expansion of M2 was
estimated to be somewhat below the middle of the
Committee's range for the year and growth of M3 near
the lower end of its range. Expansion of total domestic
nonfinancial debt appears to have been near the midpoint of its monitoring 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 range it had established in February
for M2 growth of 3 to 7 percent, measured from the
fourth quarter of 1989 to the fourth quarter of 1990.
The Committee in July also retained the monitoring
range of 5 to 9 percent for the year that it had set for
growth of total domestic nonfinancial debt. With
regard to M3, the Committee recognized that the
ongoing restructuring of thrift depository institutions had depressed its growth relative to spending
and total credit more than anticipated. Taking account of the unexpectedly strong M3 velocity, the
Committee decided in July to reduce the 1990 range
to 1 to 5 percent. For 1991, the Committee agreed on
provisional ranges for monetary growth, measured
from the fourth quarter of 1990 to the fourth quarter
of 1991, of 2V2 to 6!/2 percent for M2 and 1 to 5
percent for M3. The Committee tentatively set the
associated monitoring range for growth of total domestic nonfinancial debt at 4Vi to 8V2 percent for
1991. The behavior of the monetary aggregates will
continue to be evaluated in the light of progress
toward price level stability, movements in their velocities, and developments in the economy and financial markets.
of the Federal
Open Market
Committee
103
In the implementation of policy for the immediate
future, the Committee seeks to decrease slightly 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 somewhat lesser
reserve restraint would be acceptable in the intermeeting period. The contemplated reserve conditions are
expected to be consistent with growth of both M2 and
M3 over the period from September through December at annual rates of about 1 to 2 percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Boehne, Boy kin, Hoskins, Kelley,
LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes
against this action: None.
At this meeting, the Committee reviewed its
practice of including a sentence in the operational paragraph of the directive that referred to
the possibility of a Committee consultation to be
called at the Chairman's discretion during an
intermeeting period in the event that the federal
funds rate fluctuated persistently outside a relatively wide range. That range had been set at 4
percentage points for many years and was a
legacy of now outdated operating procedures
that had been in place in the early 1980s. The
members agreed that under current procedures
the directive sentence in question served no real
purpose, at least in its present form, in terms of
providing guidance for holding intermeeting consultations. Such consultations are based on understandings that vary over time, depending on
surrounding circumstances. Accordingly, all of
the members favored or found acceptable a proposal calling for deletion of the sentence. The
members noted that the deletion would have no
implications for the implementation of monetary
policy or for the Committee's understandings or
procedures with respect to what reserve market,
financial, or economic conditions would call for
consultations between meetings.
At the conclusion of this discussion, the members
voted to delete the sentence incorporating the federal funds range from the operational paragraph.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Boehne, Boy kin, Hoskins, Kelley,
LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes
against this action: None.
105
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION
D
The Board of Governors is amending 12 C.F.R. Part
204, its Regulation D (Reserve Requirements of
Depository Institutions), requiring depository institutions to maintain reserves of 3 percent on their
nonpersonal time deposits with original maturities or
notice periods of less than one and one-half years.
Such time deposits are sometimes referred to as
"short-term nonpersonal time deposits." Also pursuant to section 19 of that Act, the Board's Regulation D requires any depository institution, including
a U.S. branch or agency of a foreign bank, to
maintain reserves of 3 percent on net balances owed
to a directly related foreign office or to foreign offices
of nonrelated depository institutions, on loans to
U.S. residents made by related foreign offices, and
on assets held by related foreign offices acquired
from domestic offices. Such reservable liabilities are
known as "Eurocurrency liabilities." The Board is
now amending its Regulation D to reduce the reserve
requirement on short-term nonpersonal time deposits
and Eurocurrency liabilities from the current level of
3 percent to zero percent. These reductions will be
phased in over two successive reserve maintenance
periods for depository institutions that report their
deposits weekly under Regulation D, and will be
effective at the beginning of the next quarterly period
for quarterly reporters.
Reserve requirements on transaction accounts
(generally 12 percent) and nonpersonal time deposits
with original maturities or notice periods of one and
one-half years or more (zero percent) are not being
changed. Reporting requirements and regulatory definitions also are not being changed.
Effective December 13, 1990,1 12 C.F.R. Part 204 is
amended as follows:
1. Compliance dates: (These compliance dates do not affect the
compliance dates for amendments to Regulation D concerning the low
reserve tranche and the deposit cutoff as announced at 55 Federal
Register 49,992 (1990). However, the amendments made by the Board
in this action to 12 C.F.R. 204.9(a) (1) supersede the amendments
made by the Board to that section on November 28, 1990 and
announced at 55 Federal Register 49,992 (1990). Reserves on shortterm nonpersonal time deposits and Eurocurrency liabilities for
weekly reporting depository institutions will be reduced from 3
percent to 1 1/2 percent effective with the weekly reporter reserve
maintenance period that begins on Thursday, December 13, 1990, and
Part 208—Reserve Requirements of Depository
Institutions
1. The authority citation for 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 204.2, footnote 2 in paragraph (c)(l)(i) is
revised to read as follows:
Section 204.2—Definitions.
2. A nonpersonal time deposit with a stated maturity
of one and one-half years or more may be treated as
having an original maturity of one and one-half years
or more only if it is subject to the minimum penalty
described in section 204.2(f)(3).
3. In section 204.3, the word "and" is added after the
semicolon in paragraph (a)(3)(i)(A); the colon and the
word "and" are removed at the end of paragraph
(a)(3)(i)(B) and a period is added; and paragraph
(a)(3)(i)(C) is removed.
4. In section 204.3, paragraph (c)(2) is revised to read
as follows:
will be reduced from 1 1/2 percent to zero percent effective with the
weekly reporter reserve maintenance period that begins on Thursday,
December 27, 1990. For quarterly reporting institutions, reserves on
these liabilities will be reduced to zero percent effective January 17,
1991, the beginning of the next quarterly period. (Required reserves
on nonpersonal time deposits and Eurocurrency liabilities for quarterly reporters total on the order of $450 million.) The Board believes
that this time period will be sufficient to provide the desired stimulus
promptly while minimizing the disruption to the financial markets
resulting from the reduction.
106 Federal Reserve Bulletin • February 1991
Section 204.3—Computation and maintenance.
(c) Computation of required reserves for institutions
that report on a weekly basis.
(!) * * *
(2) A reserve balance shall be maintained during a
given maintenance period based on the daily average net transaction accounts held by the depository institutions during the computation period
that began immediately prior to the beginning of
the maintenance period.
5. Section 204.9(a)(1), as revised in a final rule document published on December 4, 1990 (55 Federal
Register 49,992 (1990)), is hereby withdrawn. Section
204.9(a) is now revised to read as follows:
Section 204.9—Reserve requirement ratios.
Net transaction accounts 1
$0 to $41.1 million
over $41.1 million
Nonpersonal time deposits...
Eurocurrency liabilities
Reserve Requirement
3 percent of amount
$1,233,000 plus 12 percent of
amount over $41.1 million
0 percent
0 percent
1. Dollar amounts do not reflect the adjustment to be made by the
next paragraph.
(2) Exemption from reserve requirements. Each
depository institution, Edge or agreement corporation, and U.S. branch or agency of a foreign bank is
subject to a zero percent reserve requirements on an
amount of its transaction accounts subject to the low
reserve tranche in paragraph (a)(1) not in excess of
$3.4 million determined in accordance with section
204.3(a)(3) of this part.
FINAL RULE—AMENDMENT
TO REGULATION
H
The Board of Governors is amending 12 C.F.R. Parts
208 and 250, its Regulation H (Membership in the
Federal Reserve System), that will clarify the circumstances under which state member banks may pay
Part 208—Membership of State Banking
Institutions in the Federal Reserve System
1. The authority citation for Part 208 continues to read
as follows:
(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
dividends and will bring calculation of dividend payment capacity more closely into line with current
regulatory reporting standards and generally accepted
accounting principles (GAAP). The rule defines the
terms used in two statutory provisions that impose
capital and current earnings restrictions on the payment of dividends by national banks. These provisions, 12 U.S.C. §§ 56 and 60, are made applicable to
state member banks by section 9 of the Federal
Reserve Act.
Section 208.19(a) of this regulation will be effective
January 25, 1991. Section 208.19(b) will be effective
December 20, 1990, although a state member bank
may choose to apply the paragraph retroactively (see
transition provisions in section
208.19(b)(5)),
12 C.F.R. Parts 208 and 250 are amended as follows:
Authority: Sections 9, 11(a), 11(c), 19, 21, 25, and 26(a)
of the Federal Reserve Act, as amended (12 U.S.C.
321-338, 248(a), 248(c), 461, 481-486, 601, and 611,
respectively); sections 4 and 130) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1814 and
1823(j), respectively); section 7(a) of the International
Banking Act of 1978 (12 U.S.C. 3105); sections 907910 of the International Lending Supervision Act of
1983 (12 U.S.C. 3906 - 3909); sections 2, 12(b), 12(g),
12(i), 15B(c)(5), 17, 17A, and 23 of the Securities
Exchange Act of 1934 (15 U.S.C. 78b, 781(b), 781(g),
781(i), 78o-4(c)(5), 78q, 78q-l, and 78w, respectively);
section 5155 of the Revised Statutes (12 U.S.C. 36) as
amended by the McFadden Act of 1927; and sections
1101-1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. 3310 and
3331-3351).
2. Section 208.19 is added to read as follows:
Section 208.19—Payment of dividends.
(a) Capital limitations on payment of dividends. No
state member bank shall, during the time it continues
its banking operations, withdraw, or permit to be
withdrawn, either in the form of dividends or otherwise, any portion of its capital. If losses have at any
time been sustained by a state member bank that equal
or exceed its undivided profits then on hand, no
dividend shall be paid. No dividend shall be paid by a
state member bank while it continues its banking
operations, to an amount greater than its net profits
Legal Developments
then on hand, deducting therefrom its losses and bad
debts.
(1) Exceptions. Exceptions to the limitations contained in this paragraph (a) may be made only with
the prior approval of the Board and of at least
two-thirds of the shares of each class of stock
outstanding.
(2) Dividends on common and preferred stock. The
provisions of this paragraph (a) shall apply to the
payment of dividends on both common and preferred stock.
(3) "Bad debt." Under paragraph (a), bad debts
must be deducted from the net profits then on hand
in computing funds available for the payment of
dividends. The term "bad debt" includes matured
obligations due a bank on which the interest is past
due and unpaid for six months unless the debts are
well secured and in the process of collection. Obligations include every type of indebtedness owed to
the bank, including, for example, loans, investment
securities, time deposits in other depository institutions, and leases. The six-month period of default
may begin at any time, regardless of when the debt
matures.
(i) Matured debt. Whether a debt has matured for
the purposes of this subsection usually will be
determined by applicable contract law. Generally,
a debt is matured when all or a part of the
principal is due and payable as a result of demand,
arrival of the stated maturity date, or acceleration
by contract or by operation of law. Nevertheless,
any demand debt on which the payment of interest is six months past due will be considered
matured even though payment on the debt has not
been demanded. Installment loans on which any
payment is six months past due will be considered
matured even though acceleration of the total debt
may not have occurred.
(ii) Well-secured debt. A debt is well secured if it
is secured by collateral in the form of liens on, or
pledges of, real or personal property, including
securities, having realizable value sufficient to
discharge the debt in full, or by the guaranty of a
financially responsible party. If a loan that would
otherwise be considered a bad debt is partially
secured, that portion not properly secured will be
considered a bad debt.
(iii) Debt in process of collection. A debt is in the
process of collection if collection of the debt is
proceeding in due course, either through legal
action, including judgment enforcement procedures, or, in appropriate circumstances, through
collection efforts not involving legal action which
are reasonably expected to result in repayment of
the debt or in its restoration to current status. In
107
any case, the bank should have a plan of collection setting forth the reasons for the selected
method of collection, the responsibilities of the
bank and the borrower, and the expected date of
repayment of the debt or its restoration to current
status.
(iv) Debts of bankrupt or deceased debtors. A
claim duly filed against the estate of a bankrupt or
deceased debtor is considered as being in the
process of collection. The obligation is well secured if it meets the criteria set forth in paragraph
3(a)(ii) of this section or if the claim of the bank
against the estate has been duly filed and the
statutory period for filing has expired and the
assets of the estate are adequate to discharge all
obligations in full.
(v) Documentation. The bank must maintain in its
files documentation to support its evaluation of
the obligation. In addition, the bank must retain,
at a minimum, monthly progress reports on its
collection efforts, noting and explaining any deviation from the collection plan.
(4) "Undivided profits then on hand." For the
purpose of this section, the terms "undivided profits
then on hand" and "net profits then on hand" shall
have the same meaning, and shall be referred to
herein as "undivided profits then on hand."
(i) Allowance for loan and lease losses. When
calculating the amount of dividends a bank can
pay under 12 U.S.C. 56 and this paragraph, the
bank may not add the balance in its allowance for
loan and lease losses to its undivided profits for
the purpose of determining undivided profits then
on hand. The terms "allowance for loan and lease
losses" and "undivided profits" shall have the
same meaning as set forth in the instructions for
the Reports of Condition and Income.
(ii) Bad debts. When deducting its bad debts from
its undivided profits then on hand, a bank shall
first subtract the sum of its bad debts from the
balance of its allowance for loan and lease losses
account. If the sum of a bank's bad debts is
greater than its allowance for loan and lease
losses, the excess bad debt shall then be deducted
from the bank's undivided profits then on hand.
(iii) Surplus surplus. State member banks are
required to comply with state law provisions
concerning the maintenance of surplus funds in
addition to common capital. To the extent a bank
has capital surplus in excess of that required
under applicable state law, the bank has "surplus
surplus." Only that portion of the surplus surplus
that meets the following conditions may be transferred to the undivided profits account and be
available for the payment of dividends:
108 Federal Reserve Bulletin • February 1991
(A) The bank's board of directors approves the
transfer of funds from capital surplus to undivided profits; and
(B) The transfer has been approved by the
Board. The bank must be able to demonstrate
to the Board that the portion of the surplus
surplus to be transferred came from the earnings of prior periods, excluding earnings transferred as a result of stock dividends. Requests
for Board approval shall be submitted to the
appropriate Federal Reserve Bank. The bank
may consider the transfer to be approved if the
Board or the Reserve Bank does not notify the
bank within thirty days after the Reserve
Bank's receipt of the notice that the transfer has
been disapproved or that it is subject to continuing consideration.
(b) Earnings limitations on payment of dividends. A
state member bank may not pay a dividend if the total
of all dividends declared by the bank in any calendar
year exceeds the total of its net profits for that year
combined with its retained net profits of the preceding
two calendar years, less any required transfers to
surplus or to a fund for the retirement of any preferred
stock, unless the bank has received the prior approval
of the Board for the dividend under paragraph (b)(3) of
this section.
(1) Dividends on common and preferred stock. The
provisions of this paragraph (b) apply to the payment
of dividends on both preferred and common stock.
(2) "Netprofits." "Net profits" shall be equal to the
net income or loss as reported by a state member
bank in its Reports of Condition and Income. When
computing its "net profits" under this section, a
bank should not add its provisions for loan and lease
losses to, nor deduct net charge offs from, its
reported net income.
(3) Retained net profits.Retained net profits of any
period shall be equal to the net income or loss as
reported in the Reports of Condition and Income
less any common or preferred stock dividends declared or otherwise charged to the undivided profits
of the period for which retained net profits are
computed.
(4) Approval of dividends. A bank must request and
receive the approval of the Board before declaring a
dividend if the amount of all dividends (common and
preferred), including the proposed dividend, declared
by the bank in any calendar year exceeds the total of
the bank's net profits of that year to date combined
with its retained net profits of the preceding two
calendar years, less any required transfers to surplus
or a fund for the retirement of any preferred stock.
Requests for the Board's approval shall be submitted
to the appropriate Federal Reserve Bank.
(5) Effective date and transition provisions.
(i) For the purpose of computing "net profits"
pursuant to 12 U.S.C. 60, a state member bank
must apply paragraph (b)(2) of this section no later
than January 1, 1991. A bank may elect to use this
paragraph (b)(2) of this section to calculate net
profits for 1990, if it applies this provision on a full
calendar year to date basis.
(ii) Whether a bank chooses to use paragraph
(b)(2) of this section beginning as of January 1,
1990 or 1991, it may elect to apply the paragraph
(b)(2) to recalculate retained net profits for one or
both of the prior two years.
(iii) Once a bank has elected to calculate net
profits or retained net profits for a particular year
applying the provisions of paragraph (b)(2) of this
section, retained net profits and net profits for all
subsequent periods in the calculation must also be
calculated using paragraph (b)(2) of this section. If
a state member bank has elected to use paragraph
(b)(2) of this section for a particular year, the bank
may not change the method of calculation used for
that year during subsequent periods.
Part 250—Miscellaneous
Interpretations
1. The authority citation for Part 250 continues to read
as follows:
Authority: 12 U.S.C. 248(i).
2. Sections 250.101, 250.102, and 250.103 are redesignated as sections 208.125, 208.126, and 208.127 in Part
208.
3. Section 250.104 is removed.
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Eurocapital, S.A.
Madrid, Spain
Banco Europeo de Finanzas, S.A.
Madrid, Spain
Order Approving the Formation of Bank Holding
Companies
Eurocapital, S.A., ("Eurocapital") and its subsidiary,
Banco Europeo de Finanzas, S.A., ("BEF") both of
Legal Developments
Madrid, Spain, have applied for the Board's approval
under section 3(a)(1) of the Bank Holding Company
Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to acquire
65 percent of the voting shares of First Community
Trust Company, Inc., San Juan, Puerto Rico
("Bank"), and thereby become bank holding companies for purposes of the BHC Act.
Notice of the applications, affording interested parties an opportunity to submit comments, has been
given in accordance with section 3(b) of the BHC Act
(55 Federal Register 39,323 (1990)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the BHC Act
(12 U.S.C. § 1842(c)).
Eurocapital is a Spanish banking organization with
$250.3 million in assets. BEF, with assets of $224.0
million, is the 67th largest bank in Spain. BEF and its
subsidiaries operate only in Spain. Eurocapital's only
other subsidiary, Euroges Factoring, S.A., is a nonbanking company that engages in a variety of lending
and advisory activities in Portugal, and does not take
deposits. The Board has determined that Eurocapital
and BEF meet the requirements of section 211.23(b) of
Regulation K for the exemptions to the nonbanking
prohibitions of the BHC Act provided to qualifying
foreign banking organizations. 12 C.F.R. 211.23.
Bank, with total consolidated assets of $20.7 million, is the smallest of 18 commercial banking organizations in the San Juan, Puerto Rico market.1 This
acquisition constitutes the first entry into the United
States by Eurocapital and BEF. In view of the fact that
neither Eurocapital nor BEF engages in any activities
in the United States and based upon the facts of
record, the Board concludes that the proposed transaction will have no adverse effect on competition, and
will not increase the concentration of resources in any
relevant market.
Section 3(c) of the BHC Act requires in every case
that the Board consider the financial resources of the
applicant organization and the banking organization to
be acquired. The financial and managerial resources
and future prospects of Eurocapital and BEF and their
subsidiaries are generally satisfactory and consistent
with approval of this application. Considerations relating to the convenience and needs of the communities to be served are consistent with approval of these
applications.
1. The San Juan banking market is approximated by the San
Juan-Caguas Consolidated Metropolitan Statistical Area, with the
addition of the Arecibo MSA and the following towns: Aibonito,
Arroyo, Barranquitas, Ceiba, Ciales, Comerio, Guayama, Jayuya,
Lares, Maunabo, Morovis, Naguabo, Orocovis, Patillas, Salinas,
Utuado, and Yabucoa.
109
Based on the foregoing and all of the facts of record,
the Board has determined that these applications
should be, and hereby are, approved. The acquisition
of Bank 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
New York, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 17, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Kelley, La Ware, and Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Mitsui Manufacturers Bank
Los Angeles, California
Order for Public Meeting
On March 28, 1990, the Board approved an application
by The Mitsui Bank, Limited, Tokyo, Japan, and The
Taiyo Kobe Bank, Limited, Kobe, Japan, to acquire
Taiyo Kobe Bank and Trust Company, New York,
New York ("TKBTC"), as a nonbank trust company
under section 4 of the Bank Holding Company Act
("BHC Act").1 The Mitsui Order noted, however, that
Mitsui Manufacturers Bank, Los Angeles, California
("MMB"),2 had not implemented in all respects the
type of Community Reinvestment Act ("CRA") program outlined in the Joint Agency Policy Statement
regarding the CRA,3 and that there were significant
issues raised regarding the adequacy of MMB's CRA
performance.
Accordingly, the Board stated its intent to hold a
public meeting on MMB's CRA performance in connection with Mitsui Taiyo Kobe's application under
section 3 of the BHC Act to convert TKBTC back into
a bank after January 1, 1991 (the "TKBTC application"),4 unless the record developed on that application
over the next several months, in the Board's view,
resolved the issues regarding MMB's CRA performance.
1. The Mitsui Bank, Limited, 76 Federal Reserve Bulletin 381
(1990)(hereinafter, "Mitsui Order").
2. MMB is the United States subsidiary bank of The Mitsui Taiyo
Kobe Bank, Limited, Tokyo, Japan ("Mitsui Taiyo Kobe"), the
successor by merger of The Mitsui Bank and The Taiyo Kobe Bank.
3. 54 Federal Register 13,742 (1989).
4. On January 1, 1991, the interstate banking laws of New York and
California will permit commercial bank acquisitions by bank holding
companies located in these states.
110 Federal Reserve Bulletin • February 1991
As required under the Mitsui Order, TKBTC has
completed its divestiture of loans and deposits and has
represented that it is in compliance with the activities
limitations on trust companies contained in section
2(c)(2)(D) of the BHC Act. Accordingly, the conditions stated by the Board for processing the TKBTC
application have been completed and the time frame
for resolving the CRA issues discussed in the Mitsui
Order has been fulfilled.
Under the Board's policy statement regarding informal meetings in section 262.25(d) of the Board's Rules,
the Board may convene a public meeting to elicit
information, to clarify factual issues related to an
application, and to provide an opportunity for interested individuals to provide testimony. 12 C.F.R.
262.25(d). Having considered the record on this matter, the Board has determined that it is appropriate to
hold a public meeting on the issues regarding MMB's
performance under the CRA in connection with the
TKBTC application.5
Accordingly, it is hereby ordered that a public
meeting be held on the issues regarding MMB's record
of performance under the CRA in connection with the
TKBTC application.
It is further ordered that the Director of the Division
of Consumer and Community Affairs be designated as
the Presiding Officer of the public meeting.
It is further ordered that all persons wishing to give
testimony at the public meeting shall file with William
W. Wiles, Secretary of the Board, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551, a
written request to appear containing the following
information:
(i) the name and address of the person wishing to
appear;
(ii) a statement of the expected nature of the
testimony; and
(iii) the amount of time at the public meeting the
person is requesting.
All information must be received by the Secretary of
the Board on or before January 15, 1991.
It is further ordered that, on the basis of these
requests and taking into account the interests of the
persons requesting to appear, the Presiding Officer shall
schedule times for persons wishing to testify at a public
meeting that will commence on a date and at an
appropriate location in California to be announced
subsequently.
5. Submissions on MMB's performance under the CRA at the public
meeting may also be relevant to the Board's consideration of any
section 3 application involving MMB.
It is further ordered that the Presiding Officer shall
have the authority and discretion in conducting the
public meeting and prescribing all procedures incidental thereto to ensure that the public meeting proceeds
in a fair and orderly manner, including providing for
filing deadlines for written submissions and procedures for scheduling persons to participate at the
public meeting.
By order of the Board of Governors, effective
December 14, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Norwest Corporation
Minneapolis, Minnesota
Order Approving the Acquisition of a Bank Holding
Company
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
applied under section 3 of the BHC Act (12 U.S.C.
§ 1842) to acquire Chalfen Bankshares, Inc. ("Chalfen"), and thereby indirectly acquire First National
Bank in Anoka ("Bank"), both in Anoka, Minnesota.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (55 Federal Register 29,100 (1990)).
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.
Norwest, with total consolidated assets of $26.8
billion, operates 34 banking subsidiaries located in
Minnesota, Wisconsin, Illinois, Indiana, Arizona,
Iowa, Montana, Nebraska, North Dakota, and South
Dakota.1 Norwest is the second largest banking organization in Minnesota, controlling approximately $10.1
billion in deposits in Minnesota, representing 24.0
percent of the total deposits in commercial banking
organizations in the state. Chalfen is the 13th largest
banking organization in Minnesota, controlling approximately $183.9 million in deposits in Minnesota, representing 0.4 percent of the total deposits in commercial
banking organizations in the state. Upon consummation
of the proposed acquisition, Norwest would remain the
1. Asset data are as of June 30, 1990. State banking data are as of
December 31, 1989.
Legal Developments
second largest commercial banking organization in
Minnesota, controlling approximately $10.3 billion in
deposits in Minnesota, representing 24.5 percent of the
total deposits in commercial banking organizations in
the state. Consummation of the proposal would not
result in significantly adverse effects on the concentration of banking resources in Minnesota.
Both Norwest and Chalfen compete directly in the
Minneapolis-St. Paul banking market.2 Norwest is the
second largest commercial banking organization in the
market, controlling approximately $7.8 billion in deposits, representing 29.0 percent of the total deposits in
commercial banking organizations in the market.3 Chalfen is the 12th largest commercial banking organization
in the market, controlling approximately $183.9 million
in deposits, representing 0.7 percent of the total deposits in commercial banking organizations in the market.
The Minneapolis-St. Paul banking market is highly
concentrated.4 Upon consummation of this proposal,
Norwest would remain the second largest commercial
banking organization in the market, controlling approximately $8.0 billion in deposits, representing 29.7 percent of the total deposits in commercial banking organizations in the market. The Herfindahl-Hirschman
Index ("HHI") would increase by 40 points to 2284. If
50 percent of the deposits controlled by thrift institutions were included in the calculation of market concentration, Norwest and Chalfen would control 27.3
percent and 0.6 percent of total thrift-adjusted market
deposits, respectively.5 The HHI would increase by 35
2. The Minneapolis-St. Paul banking market is approximated by
Anoka, Hennepin, Ramsey, Washington, Carver, Scott and Dakota
Counties; Lent, Chisago Lake, Shafer, Wyoming and Franconia
Townships in Chisago County; Blue Hill, Baldwin, Orrock, Livonia
and Big Lake Townships and the City of Elk River in Sherburne
County; Monticello, Otsego, Buffalo, Frankfort, Rockford and Franklin Townships in Wright County; Lanesburgh Township in Le Sueur
County, Minnesota; and the Town of Hudson in St. Croix County,
Wisconsin.
3. Market share data are as of June 30, 1990, and reflect all
acquisitions in the Minneapolis-St. Paul banking market that the
Board has approved. See Norwest Corporation, 76 Federal Reserve
Bulletin 873 (1990); First Bank Systems, 76 Federal Reserve Bulletin
1051 (1990).
4. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 2, 1984), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Justice Department is likely to challenge a merger that increases
the HHI by more than 50 points unless other factors indicate that the
merger will not substantially lessen competition. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effects of limited-purpose lenders and other non-depository financial entities.
5. The Board previously has indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. Midwest Financial Group, 75 Federal Reserve
111
points to 2041 upon consummation of this proposal.
The two largest banking organizations in the Minneapolis-St. Paul banking market together control approximately 61.1 percent of total thrift-adjusted market
deposits. The third largest depository institution in the
market controls approximately 8.3 percent of total
thrift-adjusted market deposits. During the past two
years, the number of commercial banks in the market
has declined, although there are still over 100 bank and
thrift competitors in the market.
The Board has previously indicated that, in the
context of the structure of the Minneapolis-St. Paul
banking market, the acquisition of any depository
institution in the market by either of the two largest
firms in the market requires close scrutiny. The Board
has indicated that, under the conditions in the Minneapolis-St. Paul banking market, the acquisition by
these two banking organizations of a series of depository organizations with relatively small market shares
could, on a cumulative basis, lead to significant anticompetitive effects. Since 1989, Norwest has acquired
a banking organization and a thrift institution that
competed with Norwest in this market.6
The Board recognizes in this case that Chalfen is the
12th largest banking organization in the Minneapolis-St.
Paul banking market and controls less than one percent
of the deposits in the market. As noted above, consummation of this proposal would cause the thrift-adjusted
HHI for this market to increase by approximately 35
points. Because of changes in the Minneapolis-St. Paul
banking market since Norwest's 1989 acquisition, the
thrift-adjusted HHI following consummation of the
proposed transaction will increase by only 36 points to
2041 in comparison to the HHI prior to Norwest's 1989
acquisition. This increase is less than the level that would
likely give rise to a challenge of a bank acquisition on
competitive grounds under the Department of Justice
Merger Guidelines. This calculation takes into account
changes in the market share of other competitors in the
Minneapolis-St. Paul banking market that affect the concentration level and the HHI of the market.
In light of all the facts in this case, including the
number of competitors remaining in the market, the
size and location of Chalfen, other recent events in the
market and other facts of record, the Board does not
believe that the effect of the proposed acquisition on
competition in the Minneapolis-St. Paul banking market, viewed either as an individual acquisition or in the
Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve
Bulletin 381 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984). The Board believes that the record in this case
supports inclusion of thrift institutions on a 50 percent weighted basis
in the calculation of market share in this market.
6. See Norwest Corporation, 76 Federal Reserve Bulletin 873
(1990); Norwest Corporation, 75 Federal Reserve Bulletin 399 (1989).
112 Federal Reserve Bulletin • February 1991
context of other recent acquisitions by Norwest, would
be so significantly adverse as to warrant denial of this
proposal. The Board continues to believe, however,
that acquisitions by the leading firms in this market
require close scrutiny, and will consider whether a
series of acquisitions of depository institutions in this
market with relatively small market shares could, on a
cumulative basis, lead to significant anticompetitive
effects in this market.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the record of the subsidiary banks of both
Norwest and Chalfen under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The
CRA 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
moderate-income 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.
In this regard, the Board has received comments
from the Amalgamated Clothing and Textile Workers
Union ("Protestant") critical of the CRA performance
of Norwest.7 Protestant alleges that the record of performance by Norwest and its lead bank, Norwest Bank
Minnesota, N.A., Minneapolis, Minnesota ("NBM"),
demonstrates a failure to meet the credit needs of lowand moderate-income, minority, and farm communities,
and a failure to comply with other aspects of the CRA.8
7. The Board also has considered additional comments filed on this
application after the close of the comment period which raise substantially similar issues. Under the Board's rules, the Board may in its
discretion take into consideration the substance of such comments. 12
C.F.R. 262.3(e).
8. Protestant specifically alleges that Norwest has failed to meet the
credit needs of: Minnesota's low- and moderate-income communities
in Minneapolis-St. Paul and Duluth; the predominately minority
communities in Minneapolis-St. Paul; and Minnesota farming communities. Protestant asserts that Norwest has engaged in discriminatory
lending practices, reduced rural lending and increased farm foreclosures. Protestant also criticizes other aspects of Norwest's CRA
performance, including: insufficient participation in multifamily housing programs; an insufficient community marketing initiative and the
production of promotional materials that discourage farm and minority credit applicants; failure to meet with community groups; and
operation of branches with inconvenient business hours. Alleged
technical violations of the CRA include Norwest's failure to: delineate
reasonable local communities, include adverse comments in public
comment files, and produce requested home mortgage data. In a
general sense, Protestant alleges that Norwest uses capital raised
locally for investments made outside the midwestern region and that
Norwest inadequately monitors CRA compliance through its board of
directors.
The Board has carefully reviewed the CRA performance record of Norwest, Chalfen, and their bank
subsidiaries, as well as the comments of Protestant
and Norwest's response to those comments, 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
("Agency CRA Statement")^ 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. The Agency CRA Statement also suggests that
decisions by agencies to allow financial institutions to
expand will be made pursuant to an analysis of the
institution's overall CRA performance, and will be
based on the actual record of performance of the
institution.10
Initially, the Board notes that Norwest's subsidiary
banks, including NBM, and Chalfen's subsidiary
banks have received satisfactory ratings from their
primary regulators in the most recent examinations of
their CRA performance. The Agency CRA Statement
provides that, although CRA examination reports do
not provide conclusive evidence of an institution's
CRA record, these reports will be given great weight in
the applications process.11
The record in this application indicates that Norwest's subsidiary banks have delineated reasonable
local communities that do not exclude low- and moderate-income neighborhoods.12 NBM's delineated
community includes the seven-county MinneapolisSt. Paul metropolitan area and does not exclude any
low- and moderate-income neighborhoods in this area.
Duluth's delineated community includes Duluth and
Hermantown, and surrounding area within a 15-mile
radius of the bank's headquarters, including low- and
moderate-income neighborhoods. Norwest's Home
Mortgage Disclosure Act ("HMDA") data further
indicate that Norwest's loan policies do not discriminate against low- and moderate-income communities
in Minneapolis-St. Paul or Duluth.13
9. 54 Federal Register 13,742 (1989).
10. Id.
11. Id. at 13,745.
12. There is no evidence of record that Norwest's ability to meet the
credit needs of its local community has been restricted because of a
large amount of investments outside the midwestern region. In addition, recent CRA examinations have not revealed any evidence of
racially discriminatory lending practices.
13. For example, in 1989 Norwest increased the number of its
mortgage loans from its 1988 lending level, resulting in (taking into
account the number of owner-occupied units in those areas) 15.1
Legal Developments
113
The products and services that help meet the credit
needs of low- and moderate-income communities that
Norwest provides include mortgage and home improvement loans, a low-cost checking account, and
direct small business loans.14 In addition, Norwest
markets its credit products and services by radio,
television and newspapers, with its branches undertaking more targeted advertising in neighborhood publications.15
Norwest also participates in various governmentally-insured and assisted programs that benefit low- and
moderate-income areas. The Board notes that Norwest's subsidiaries continue to make FmHA-guaranteed loans and reduced rate loans to farmers.16 To help
meet the housing needs of low- and moderate-income
families, Norwest has invested in the Riverside Plaza,
a rental housing renovation project in Minneapolis.
Norwest has also made energy, home improvement
and home purchase loans through the Minnesota
Housing Finance Agency and has participated in multifamily housing initiatives, including city-sponsored
initiatives, through the Minneapolis Community Development Agency.
Norwest has implemented a Community Marketing
Initiative ("CMI") that requires each subsidiary bank
to develop an outreach program to provide for an
ongoing assessment of community financial service
needs. 17 NBM monitors compliance with the CRA
through its Community Affairs Officer who reports to
the NBM's board quarterly on CRA activities and
related issues. 18 NBM's board reviews its CRA plan,
considers input from community advisory groups,
ensures compliance with the technical requirements of
the CRA (including the CRA statement, community
delineation and other requirements) and monitors
NBM's performance.19
The Board believes that, on balance, the CRA
records of Norwest and NBM are consistent with
approval of this application. The Board expects Norwest to continue its record of improvement under the
CRA and the Board will consider the progress of
Norwest and NBM in future applications to expand
their deposit-taking operations. For the foregoing reasons, and based upon the overall CRA record of
Norwest and its subsidiary banks and other facts of
record, the Board concludes that convenience and
needs considerations, including the records of performance under the CRA of Norwest and Chalfen, are
consistent with approval of this application.20 The
Board also concludes that the financial and managerial
resources and future prospects of Norwest, Chalfen
and their subsidiaries are consistent with approval of
this application.
Based on all the foregoing and other facts of
record, the Board has determined that the application should be, and hereby is, 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 Minneapolis, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
December 27, 1990.
percent of all Norwest mortgage lending occurring in low- and
moderate-income areas in Minneapolis-St. Paul. Approximately 8
percent of the owner-occupied housing stock in the Minneapolis-St.
Paul area is located in low- and moderate-income areas. Similarly, 9.1
percent of all Norwest mortgage lending in Duluth in 1989 occurred in
low- and moderate-income areas, where approximately 10 percent of
the owner-occupied housing stock in the Duluth area is located in lowand moderate-income areas.
14. Norwest's Community Home Ownership Program is offered
through Norwest Mortgage, Inc., a nonbanking subsidiary that handles all of Norwest's mortgage lending. Norwest also offers Startline
as a low-cost checking account. Norwest's inner city branch locations
offer a full range of services and the business hours for its branch
banks generally are comparable for the Minneapolis-St. Paul area.
15. Norwest has directed a minority media advertisement campaign
to Minneapolis-St. Paul inner city residents and there is no evidence
that Norwest discourages credit applications from minority or rural
applicants.
16. For example, NBM originated $10 million in small farm loans in
1989. See also Norwest Corporation, 74 Federal Reserve Bulletin 568
(1988).
17. The CMI states that Norwest's board of directors is responsible
for reviewing the CRA plans of its subsidiary banks.
18. The Community Affairs Officer also attends bank officer meetings to provide training on CRA requirements and objectives.
Associate Secretary of the Board
Voting for this action: Governors Seger, Kelley, LaWare,
and Mullins. Voting against this action: Governor Angell.
Absent and not voting: Chairman Greenspan.
JENNIFER J. JOHNSON
19. NBM has indicated to the Office of the Comptroller of the
Currency that it will correct any problems regarding comments
maintained in its public files.
20. Protestant and other commenters have requested that the Board
hold a public hearing or meeting to assess further facts surrounding
Norwest's CRA performance. Generally under the Board's rules, the
Board may, in its discretion, hold a public hearing or meeting on an
application to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. 12 U.S.C.
§§ 262.3(e) and 262.25(d).
The Board has carefully considered these requests. In the Board's
view, the parties have had ample opportunity to present submissions,
and Protestant has submitted substantial written comments that have
been considered by the Board. In light of these facts, the Board has
determined that a public meeting or hearing is not necessary to clarify
the factual record in this application, or otherwise warranted in this
case. Accordingly, the requests for a public meeting or hearing on this
application are hereby denied.
114 Federal Reserve Bulletin • February 1991
Norwest Corporation
Minneapolis, Minnesota
Order Approving Acquisition of a Bank Holding
Company and its Bank Subsidiaries
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
applied under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the voting
shares of Wyoming National Bancorporation, Casper,
Wyoming ("WNB"), and thereby to indirectly acquire
its bank subsidiaries, all in Wyoming: Wyoming National Bank Casper, Casper; Wyoming National Bank
Cheyenne, Cheyenne; Wyoming National Bank Gillette, Gillette; Wyoming National Bank Kemmerer,
Kemmerer; Wyoming National Bank Lovell, Lovell;
and Wyoming National Bank Wheatland, Wheatland.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 23,805 (1990)). 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.
Section 3(d) of the BHC Act (12 U.S.C. § 1842(d))
("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, 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."1
Wyoming law authorizes financial institutions located in any state to acquire Wyoming financial institutions that have been chartered to do business in
Wyoming for at least three years.2 WNB and all of its
bank subsidiaries have been chartered to do business
in Wyoming for at least three years. Based on the
foregoing, the Board has determined that the proposed
acquisition is specifically authorized by the statute
laws of Wyoming and that Board approval of the
proposal is not barred by the Douglas Amendment.3
Norwest, with total consolidated assets of $27.8
billion, operates 36 banking subsidiaries located in
1. 12 U.S.C. § 1842(d). A bank holding company's home state is
that state in which the operations of the bank holding company's bank
subsidiaries were principally conducted on July 1, 1966, or the date on
which the company became a bank holding company, whichever is
later. Id.
2. Wyo. Stat. § 13-9-303 (1990).
3. The Banking Division of the Wyoming Department of Audit has
confirmed that the acquisition of WNB is authorized under Wyoming
law.
Minnesota, Wisconsin, Illinois, Indiana, Arizona,
Iowa, Montana, Nebraska, North Dakota, and South
Dakota.4 Norwest is the second largest commercial
banking organization in Minnesota, controlling approximately $13.6 billion in commercial bank deposits
in Minnesota, representing 26.0 percent of total deposits in commercial banking organizations in the state.
WNB, the second largest commercial banking organization in Wyoming, controls deposits of approximately $447.4 million, representing 10.4 percent of
total deposits in commercial banking organizations in
the state.
Norwest and WNB do not compete directly in any
banking market, and numerous potential entrants into
the relevant banking markets exist. Based on these
and all of the other facts of record, the Board believes
that consummation of the proposal would not have a
significantly adverse effect upon competition or the
concentration of banking resources in any relevant
banking market.
The financial and managerial resources and future
prospects of Norwest and WNB and their subsidiaries
are consistent with approval. Considerations relating
to the convenience and needs of the communities to be
served are also consistent with approval of this application.5
Accordingly, based on the foregoing and other
facts of record, the Board has determined that the
application should be, and hereby is, approved
subject to obtaining the required approval of the
appropriate state banking agency. The proposal shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later
than three months following the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve
Bank of Minneapolis, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
December 27, 1990.
Voting for this action: Governors Seger, Angell, Kelley,
LaWare, and Mullins. Absent and not voting: Chairman
Greenspan.
JENNIFER J. JOHNSON
Associate Secretary of the Board
4. Data are as of March 31, 1990.
5. The record of performance of Norwest under the Community
Reinvestment Act is discussed in the Board's Order approving Norwest's acquisition of Chalfen Bankshares, Inc., Anoka, Minnesota, 77
Federal Reserve Bulletin 110 (1991) (Order dated December 27, 1990).
Legal Developments
Orders Approved Under Section 4 of the Bank
Holding Company Act
Main Street Banks Incorporated
Covington, Georgia
Order Approving Application to Acquire a Savings
Association
Main Street Banks Incorporated, Covington, Georgia
("MSBI"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"),
has applied pursuant to section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23(a) of the
Board's Regulation Y (12 C.F.R. 225.23(a)), to acquire
all of the outstanding shares of Main Street Savings
Bank, F.S.B., Conyers, Georgia ("Main Street"), a de
novo federally chartered savings bank, pursuant to
section 225.25(b)(9) of the Board's Regulation Y
(12 C.F.R. 225.25(b)(9)).
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 47,392 (1990)). 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. 1
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). In making this determination, the Board
required that savings associations acquired by bank
holding companies conform their direct and indirect
activities to those permissible for bank holding companies under section 4 of the BHC Act. MSBI has
committed that, upon consummation, Main Street will
engage in only those activities permitted for bank
holding companies under section 4(c)(8) of the BHC
Act and Regulation Y.
In order to approve applications under section
4(c)(8) of the BHC Act, the Board is required to
determine that the performance of the proposed activities by MSBI "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).
1. The Community Bankers Association of Georgia submitted
comments regarding the proposal's compliance with state law but
subsequently withdrew those comments.
115
MSBI, with total consolidated assets of $185.9 million, operates two banking subsidiaries in Georgia.2
MSBI is the 22nd largest commercial banking organization in Georgia, controlling approximately $148.7
million in commercial bank deposits in Georgia, representing less than 1 percent of the total deposits in
commercial banking organizations in the state. Main
Street is the 52nd largest savings association in Georgia, with approximately $47.9 million in total deposits,
representing less than 1 percent of the total thrift
deposits in the state.3 Upon consummation of the
proposed acquisition, MSBI would become the 17th
largest commercial banking organization in Georgia,
controlling approximately $196.6 million in deposits,
representing less than 1 percent of total deposits in
commercial banking organizations in the state. In the
Board's view, consummation of this proposal would
not have a significantly adverse effect upon the concentration of banking organizations in Georgia.
MSBI and Main Street compete directly in the
Atlanta, Georgia, banking market.4 In the Atlanta
banking market, MSBI is the 19th largest depository
organization with $130 million in deposits, representing less than 1 percent of the total deposits held by
banks and savings associations operating in the market
("market deposits"). Main Street is the 78th largest
depository organization in the market, with $47.9
million in deposits, representing less than 1 percent of
market deposits. Upon consummation of this proposal, MSBI would become the 15th largest depository
organization in the market, with $177.9 million in
deposits, representing less than 1 percent of market
deposits.5
The
Herfindahl-Hirschman
Index
("HHI"), upon consummation, would decrease by 2
points to 1089.6 Based on these and other facts of
2. Asset data are as of September 30, 1990. State and market
banking data are as of December 31, 1989, and June 30, 1989,
respectively.
3. Main Street's parent, Prime Bancshares, Inc., Decatur, Georgia,
will organize a new federal thrift (Main Street) and cause Main Street
to acquire two branches located in Rockdale County, Georgia, from
DeKalb Federal Savings Bank (now known as Prime Bank, F.S.B.)
which is affiliated with Main Street. MSBI will then acquire Main
Street. Accordingly, the deposit data of Main Street and the competitive considerations in this Order reflect Main Street's operations in
Rockdale County upon consummation of the restructuring.
4. The Atlanta Metro Area banking market includes the counties of
Cherokee, Clayton, Cobb, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Rockdale, Coweta, and
Walton.
5. The pre-consummation market share data are based on calculations in which the deposits of Main Street and all other thrifts are
included at 50 percent. Upon consummation of the proposal, Main
Street would be affiliated with a commercial banking organization,
thus, on a pro forma basis, the deposits of Main Street are included at
100 percent, while the deposits of other savings associations continue
to be included at 50 percent.
6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated.
116 Federal Reserve Bulletin • February 1991
record, the Board concludes that the acquisition would
not have a significantly adverse effect on competition
in the Atlanta banking market.
The financial and managerial resources and future
prospects of MSBI and its bank subsidiaries and of
Main Street are consistent with approval. In assessing
the financial factors, the Board believes that bank
holding companies must maintain adequate capital at
savings associations that they propose to acquire.
Upon consummation, MSBI and its bank subsidiaries
would meet applicable capital requirements, and
MSBI will cause Main Street to meet all applicable
capital requirements. In this regard, MSBI has committed that Main Street will have Tier 1 capital,
excluding all intangible assets, of at least 3 percent of
its total assets upon consummation of the proposal. In
addition, MSBI commits that Main Street will meet all
current and future minimum capital ratios adopted for
savings associations by the Office of Thrift Supervision or the Federal Deposit Insurance Corporation.
The record does not indicate that consummation of
this proposal is likely to result in any significant
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices.
Georgia law states that no "bank," including a
federal savings bank, can be acquired by a bank
holding company unless it has been in existence and
continuously operating as a bank for a period of five
years or more.7 Under Georgia law, however, this
five-year requirement is satisfied if the "predecessor
institution" of the bank to be acquired has been
continuously operating or chartered to operate as a
bank for at least five years. The Georgia Department
of Banking and Finance has approved this transaction,
concluding that the predecessor institution to Main
Street, DeKalb Federal Savings Bank and the two
Rockdale County branches, satisfies the five-year longevity requirement for purposes of Georgia law.8
Based on the foregoing and all the facts of record
including the commitments made by MSBI set forth in
this Order, 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 MSBI's application to acquire Main
In such markets, the Justice Department is unlikely to challenge a
merger if the increase in the HHI is less than 100 points.
7. Ga. Code Ann. § 7-l-608(a)(2) (1989).
8. See Certificate of Approval from Robert M. Moler, Deputy
Commissioner, dated December 17, 1990, and transmittal letter.
DeKalb Federal Savings Bank was chartered in 1941 and has continuously operated its two Rockdale County branches since 1963 and
1981. The Georgia Department's approval also places certain conditions on Main Street's ability to branch or convert to a commercial
bank, and the Board expects Main Street to comply with the conditions of the state approval.
Street. Accordingly, the Board has determined that
the proposed application should be, and hereby is,
approved. This determination is subject to all of the
conditions set forth in the Board's Regulation Y,
including sections 225.4(d) and 225.23 (12 C.F.R.
225.4(d) and 225.23), 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,
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 Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1990.
Voting for this action: Governors Seger, Angell, Kelley,
LaWare, and Mullins. Absent and not voting: Chairman
Greenspan.
JENNIFER J. JOHNSON
Associate Secretary of the Board
The Mitsui Taiyo Kobe Bank, Limited
Tokyo,Japan
Order Approving Application to Engage in Various
Interest Rate and Currency Swap and Private
Placement Activities
The Mitsui Taiyo Kobe Bank, Limited, Tokyo, Japan
("Mitsui Taiyo Kobe"), 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)(3) of
the Board's Regulation Y (12 C.F.R. 225.23(a)(3)) to
engage de novo through its subsidiary, Mitsui Taiyo
Kobe Global Capital, Inc., New York, New York
("Company"),1 in the following activities:
(1) Intermediating in the international swap markets
by acting as originator and principal in interest rate
swap and currency swap transactions;
(2) Acting as an originator and principal with respect
to certain risk-management products such as caps,
1. Company will be two-thirds owned by Mitsui Taiyo Kobe and
one-third owned by Brown, Bramwell & Company, Inc. ("Brown,
Bramwell"), a newly-formed corporation which is wholly owned by
two individuals who will serve as officers of Company. Mitsui Taiyo
Kobe has committed that as long as Brown, Bramwell is a shareholder
of Company, Brown, Bramwell will not engage in any business or
make investments other than holding the stock of Company without
prior written consent of the Federal Reserve System.
Legal Developments
floors and collars, as well as options on swaps, caps,
floors and collars ("swap derivative products");
(3) Acting as a broker or agent with respect to the
foregoing transactions or instruments;
(4) Acting as adviser to institutional customers regarding financial strategies involving interest rate and
currency swaps and swap derivative products; and
(5) Through a subsidiary of Company, providing
services related to structuring and arranging, as
agent, the private placement of debt securities or
similar instruments that are incidental to the abovementioned swap activities.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 42,268 (1990)). 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.
With total consolidated assets equivalent to approximately $403 billion, Mitsui Taiyo Kobe is the second
largest banking organization in the world.2 In the
United States, Mitsui Taiyo Kobe owns a bank subsidiary in Los Angeles, California; two trust companies in
New York, New York; two agencies in Los Angeles,
California, and branches in Chicago, Illinois; New
York, New York; and Seattle, Washington.3 It engages
in securities brokerage activities through Mitsui Securities Company (USA), Inc., New York, New York.
Swap Activities
The Board previously has determined by order that the
proposed activities relating to swaps and swap derivative products are closely related to banking and
permissible for bank holding companies within the
meaning of section 4(c)(8) of the BHC Act. 4 Mitsui
Taiyo Kobe proposes to engage in these swap activities in accordance with all of the provisions and
conditions set forth in these orders.
Company appears to be capable of managing the
risks associated with the proposed activities. Mitsui
Taiyo Kobe, which has extensive experience in lending
and financing services worldwide, has undertaken to
2. Data are as of March 31, 1990.
3. Under the conditions in The Mitsui Bank, Limited, 76 Federal
Reserve Bulletin 381 (1990), Mitsui Taiyo Kobe will consolidate its
separate full-service branches in New York City, limited branches in
Chicago, and agency offices in Los Angeles by March, 1991. Mitsui
Taiyo Kobe has conformed the deposit-taking activities of its Washington branch as required by section 5 of the International Banking
Act and the Board's Order.
4. The SanwaBank, Limited, 77 Federal Reserve Bulletin 64 (1991);
The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768 (1990); The
Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582 (1989).
117
provide credit screening for all potential counterparties
of Company through its credit desk services in Tokyo.
In appropriate cases, Company will obtain a letter of
credit on behalf of, or collateral from, a counterparty.
In addition, Company will establish separate credit risk
exposure limits for each swap counterparty. Company
will monitor this exposure on an ongoing basis, in the
aggregate, and with respect to each counterparty. Senior management will be periodically informed of the
potential risk to which Company is exposed.
In order to manage the risk associated with adverse
changes in interest rates ("price risk"), Company will
match all the swaps and related instruments in which it
is principal and will hedge any unmatched positions
pending a suitable match. Company will not enter into
unmatched or unhedged swaps for speculative purposes. Company's management will set absolute limits
on the level of risk to which its swap portfolio may be
exposed. Company's exposure to price risk will be
monitored by both business management and internal
auditing personnel to guarantee compliance with the
risk limitations imposed by management. Auditing
personnel will report directly to senior management to
ensure that any violations of portfolio risk limitations
are reported and corrected.
With respect to the risk associated with the potential
for differences between the floating rate indices on two
matched or hedged swaps ("basis risk"), Company's
management will impose absolute limits on the aggregate basis risk to which Company's swaps portfolio
may be exposed. If the level of risk threatens to
exceed the limits at any time, Company will actively
seek to enter into matching transactions for its unmatched positions. Company's internal auditing staff,
together with management, will monitor compliance
with the management-imposed basis risk limits.5
In addition, Company intends to minimize operations risk through the recruitment and training of an
experienced bank-office support staff and the use of a
separate operational and data processing structure for
processing swap and hedging transactions.
In order to minimize any possible conflicts of interests between Company's role as a principal or broker
in swap transactions and its role as advisor to potential
counterparties, Company will disclose to each customer the fact that Company may have an interest as a
counterparty principal or broker in the course of
action ultimately chosen by the customer. Also, in any
case in which Company has an interest in a specific
5. In addition to price and basis risk, the value of a swap option is
subject to market expectations of the future direction and rate of
change in interest rates, or volatility risk. Company's management
will impose absolute limits on the level of volatility risk to which
Company's swap portfolio may be exposed.
118 Federal Reserve Bulletin • February 1991
transaction as an intermediary or principal, Company
will advise its customer of that fact before recommending participation in that transaction.6 In addition,
Company's advisory services will be offered only to
sophisticated institutional customers who would be
unlikely to place undue reliance on investment advice
received and better able to detect investment advice
motivated by self-interest.7
The Board has expressed its concerns regarding
conflicts of interests and related adverse effects that,
absent certain limitations, may be associated with
financial advisory activities. In order to address these
potential adverse effects, Mitsui Taiyo Kobe has committed that:
(i) Company's financial advisory activities will not
encompass the performance of routine tasks or
operations for a client on a daily or continuous
basis;
(ii) Disclosure will be made to each potential
client of Company that Company is an affiliate of
Mitsui Taiyo Kobe;
(iii) Company will not make available to Mitsui
Taiyo Kobe or any of Mitsui Taiyo Kobe's subsidiaries confidential information received from Company's clients, except with the client's consent;
and
(iv) Advice rendered by Company on an explicit
fee basis will be without regard to correspondent
balances maintained by a client of Company at
Mitsui Taiyo Kobe or any of Mitsui Taiyo Kobe's
depository subsidiaries.
Private Placement
Activities
Mitsui Taiyo Kobe also has applied to provide services
related to structuring and arranging, as agent, the
private placement of debt securities or similar instruments which are incidental to the above-mentioned
swap activities. The Board has previously determined
6. In any transaction in which Company arranges a swap transaction
between an affiliate and a third party, the third party will be informed
that Company is acting on behalf of an affiliate.
7. An institutional customer is defined by Mitsui Taiyo Kobe to be:
(1) a bank (acting in an individual or fiduciary capacity); an
insurance company; a registered investment company under the
Investment Company Act of 1940; or a corporation, partnership,
trust, proprietorship, organization or institutional entity with assets
exceeding $1,000,000 that regularly engages in transactions in
securities;
(2) an employee benefit plan with assets exceeding $1,000,000 or
whose investment decisions are made by a bank, insurance company or investment advisor registered under the Investment Advisers Act of 1940;
(3) a broker-dealer or options trader registered under the Securities
Exchange Act of 1934, or other securities, investment or banking
professional; or
(4) an entity all of the equity owners of which are institutional
customers.
by order that acting as agent in the private placement
of all types of securities is closely related to banking
and permissible for bank holding companies within the
meaning of section 4(c)(8) of the BHC Act. 8 Mitsui
Taiyo Kobe has committed that Company will conduct
its private placement activities in a manner consistent
with, and subject to, the prudential limitations relied
upon by the Board in approving this activity.9
Mitsui Taiyo Kobe has proposed to have its U.S.
affiliates, branches or agencies extend credit to an
issuer whose debt securities have been placed by the
placement subsidiary10 of Company where the proceeds would be used to pay the principal amount of the
securities at maturity. Mitsui Taiyo Kobe has committed that these extensions of credit will conform to the
limitations set forth in the Board's decision in J.P.
Morgan, including the requirement that a period of at
least three years elapse from the time of the placement
of the securities to the decision to extend credit, that
Mitsui Taiyo Kobe maintain adequate documentation
of these transactions and decisions, and that the extensions of credit meet prudent and objective standards, as well as the standards set out in section 23B of
the Federal Reserve Act. 11 The Federal Reserve Bank
of San Francisco will closely review loan documentation of U.S. affiliates to ensure that an independent
and thorough credit evaluation has been undertaken
with respect to the participation of the bank in these
credit extensions to issuers of securities privately
placed by an agent affiliated with the bank.
Mitsui Taiyo Kobe also has proposed to have the
placement subsidiary place securities with its parent
holding company or with a nonbank subsidiary of the
parent company consistent with the Board's ruling in
J.P. Morgan. In this regard, Mitsui Taiyo Kobe will
establish both individual and aggregate limits on the
investment by affiliates of the placement subsidiary in
any particular issue of securities that is placed by the
8. See, e.g., First Union Corporation, 76 Federal Reserve Bulletin
174 (1990); J.P. Morgan & Company Incorporated, 76 Federal
Reserve Bulletin 26 (1990); Bankers Trust New York Corporation, 75
Federal Reserve Bulletin 829 (1989).
9. See Bankers Trust New York Corporation, 73 Federal Reserve
Bulletin 138, 152-53 (1987) ("Bankers Trust"), as modified in The
Bank of Montreal, 74 Federal Reserve Bulletin 500 (1988) (quantitative
limitations unnecessary), Bankers Trust New York Corporation, 75
Federal Reserve Bulletin 829 (1989) (placement with "accredited
investors" as this term is defined in the Securities Act of 1933), The
Chase Manhattan Corporation, 76 Federal Reserve Bulletin 658
(1990) (placement of minimum denominations of $100,000), First
Eastern Corporation, 76 Federal Reserve Bulletin 764 (1990) (prohibition of director interlocks between Company and lead bank unnecessary), and The Toronto-Dominion Bank, 76 Federal Reserve Bulletin 573 (1990) (private placement activities by affiliates of foreign
banks).
10. The placement subsidiary will be a broker/dealer and member of
the National Association of Securities Dealers.
11. 12 U.S.C. § 371c-l.
Legal Developments
placement subsidiary and will establish appropriate
internal policies, procedures, and limitations regarding
the amount of securities of any particular issue placed
by the subsidiary that may be purchased by Mitsui
Taiyo Kobe and each of its nonbanking subsidiaries,
individually and in the aggregate.12 These policies and
procedures, as well as the purchases themselves, will
be reviewed by the Federal Reserve Bank of San
Francisco.
Financial Factors, Managerial Resources and Other
Considerations
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities of Mitsui Taiyo Kobe "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).
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources.13 In this
case, the primary capital ratio of Mitsui Taiyo Kobe,
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
Mitsui Taiyo Kobe's portfolio of equity securities
consistent with the principles in the Basle capital
framework, Mitsui Taiyo Kobe's capital ratio meets
United States standards.
Consummation of the proposal would provide added
convenience to Mitsui Taiyo Kobe's customers. In
addition, the Board expects that the de novo entry of
Mitsui Taiyo Kobe into the market for these services
in the United States would increase the level of
competition among providers of these services. Under
the framework established in this and prior decisions,
12. The limit established shall not exceed 50 percent of the issue
being placed. Additionally, in the development of these policies and
procedures, Mitsui Taiyo Kobe will incorporate, with respect to
placements of securities, the limitations established by the Board in
condition 12 of its order regarding aggregate exposure of Mitsui Taiyo
Kobe's U.S. subsidiaries and offices on a consolidated basis to any
single customer whose securities are underwritten or dealt in by the
placement subsidiary. J.P. Morgan & Company, Incorporated, The
Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp and Security Pacific Corporation, 75 Federal Reserve
Bulletin 192 (1989).
13. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve
Bulletin 155, 156 (1987).
119
consummation of this proposal is not likely to result in
any significant adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
Accordingly, the Board has determined that the performance of the proposed activities by Mitsui Taiyo
Kobe can reasonably be expected to produce public
benefits that would outweigh adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act.
Based on the above, the Board has determined to,
and hereby does, approve the application subject to the
commitments made by Mitsui Taiyo Kobe, as well as all
of the terms and conditions set forth in this order and in
the above-noted Board orders that relate to these
activities. The Board's determination is also subject to
all of the conditions set forth in Regulation Y, including
those in sections 225.4(d) and 225.23(b), and to the
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 San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
December 10, 1990.
Voting for this action: Governors Angell, Kelley, LaWare,
and Mullins. Absent and not voting: Chairman Greenspan
and Governor Seger.
JENNIFER J. JOHNSON
Associate Secretary of the Board
NCNB Corporation
Charlotte, North Carolina
Order Approving Application to Acquire a Savings
Association
NCNB Corporation, Charlotte, North Carolina
("NCNB"), 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 of the Board's Regulation Y (12 C.F.R.
225.23), to acquire De Novo NCNB Florida Federal
Savings Bank, IV, Tampa, Florida ("De Novo Savings"), a savings association, pursuant to section
225.25(b)(9) of the Board's Regulation Y (12 C.F.R.
120 Federal Reserve Bulletin • February 1991
225.25(b)(9)). De Novo Savings has been formed to
acquire the assets and assume the liabilities of two
branches of American Savings and Loan Association, Miami, Florida ("American"). NCNB has also
requested Board approval of its proposal under 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)) ("FIRREA"), to merge De Novo Savings
into one of NCNB's existing subsidiary banks,
NCNB National Bank of Florida, Tampa, Florida
(' 'NCNB-Florida''). 1
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 37,359 (1990)). 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.
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). 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. NCNB
has committed to conform all activities of De Novo
Savings to the requirements of section 4 of the BHC
Act and Regulation Y. In order to approve the application, the Board also is required by section 4(c)(8) of
the BHC Act to determine that the ownership and
operation of De Novo Savings by NCNB "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).
NCNB, with total consolidated assets of $69.2 billion, operates 16 banking subsidiaries located in North
Carolina, Georgia, Florida, Maryland, South Carolina,
Texas, and Virginia. NCNB is the fifth largest banking
organization in Florida, controlling approximately $9.5
billion in deposits in the state, representing 8.5 percent
of the total deposits in commercial banking organizations in Florida.2 The American branches to be acquired by NCNB control $24.0 million in deposits.
1. 12 U.S.C. § 1815(d)(3). Section 5(d)(3) of the FDI Act (the
"Oakar Amendment") permits the merger of a savings association
owned by a bank holding company into a subsidiary bank owned by
the same bank holding company under certain circumstances.
2. Asset data are as of September 30, 1990. State banking data are
as of June 30, 1990.
Upon consummation of the proposed transactions,
NCNB would remain the fifth largest commercial
banking organization in Florida. In the Board's view,
consummation of this proposal would not have a
significantly adverse effect on the concentration of
banking resources in Florida.
The two branches of American that NCNB is proposing to acquire operate in the Hernando County,
Florida banking market.3 NCNB does not currently
own or operate any depository institutions or depository institution branches in this market. Based on all
the facts of record, the Board has determined that
consummation of this proposal would not have a
significantly adverse effect on the concentration of
resources or on competition in any relevant banking
market.
The financial and managerial resources and future
prospects of NCNB and its bank subsidiaries are
consistent with approval. Upon consummation,
NCNB and its bank subsidiaries would meet all applicable regulatory capital requirements.
In connection with this application, the Board has
received comments from the Charlotte Reinvestment
Alliance, Charlotte, North Carolina ("Alliance"), and
Texas ACORN, Dallas, Texas, critical of the performance of NCNB's lead North Carolina bank, NCNB
National Bank of North Carolina, Charlotte, North
Carolina ("NCNB-North Carolina"), as well as that of
NCNB's lead Texas bank, NCNB Texas National
Bank ("NCNB-Texas"), Dallas, Texas, under the
Community Reinvestment Act (12 U.S.C. § 2901
et seq.) ("CRA"). The Board previously has indicated
that the terms and the purposes of the CRA and the
BHC Act require the Board to consider CRA performance in connection with its review of a section 4
application by a bank holding company to acquire a
savings association.4 Accordingly, in considering this
application, the Board has taken into account the
record of NCNB's subsidiary banks in meeting their
obligations under the CRA.
The Alliance contends that NCNB-North Carolina
has failed to meet the credit needs of its entire community, including low-income and minority neighborhoods. Specifically, the Alliance alleges:
3. The Hernando County market consists of Hernando County,
Florida.
4. Norwest Corporation, 76 Federal Reserve Bulletin 873, 876
(1990). The Board previously has determined that the CRA by its
terms does not apply to applications by bank holding companies to
acquire nonbanking companies under section 4(c)(8) of the BHC Act.
The Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). In this
regard, the Board notes that, unlike all other companies that may be
acquired by bank holding companies under section 4(c)(8) of the BHC
Act, savings associations are insured depository institutions, as that
term is defined in the CRA, and acquisitions of savings associations
are subject to review under the express terms of the CRA.
Legal Developments
(1) the bank is making few housing loans in Mecklenburg County's low-income and/or minority census tracts;
(2) branch office locations are not convenient for
low-income or minority residents;
(3) the CRA Statement and the public file are not
readily available for public inspection;
(4) NCNB officials did not contact the Alliance when
members approached NCNB about two loan requests; and
(5) NCNB maintains banking relationships with the
South African government.
With respect to NCNB-Texas, Texas ACORN alleges
that it is unable to obtain detailed information regarding CRA programs implemented by the bank. Additionally, in correspondence to the Alliance, other
organizations have raised concerns regarding the
mortgage lending practices of NCNB-Texas.
The Board has reviewed carefully the CRA performance record of NCNB's subsidiary banks as well as
the comments from Protestants 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").5 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. The
Agency CRA Statement explains that decisions by
agencies to allow financial institutions to expand will
be made pursuant to an analysis of the institution's
overall CRA performance, and will be based on the
actual record of performance of the institution.
In this regard, the record indicates that substantially
all of NCNB's subsidiary banks, representing substantially all of NCNB's assets, have received satisfactory
ratings from their primary regulators during the most
recent examinations of each bank's CRA performance.6
5. 54 Federal Register 13,742 (1989).
6. The Board notes that one bank subsidiary, representing a small
percentage of NCNB's assets, received a less than satisfactory CRA
performance rating in its most recent CRA examination. The subsidiary bank has taken steps to address the deficiencies in its CRA
performance and to improve performance, and has adopted a comprehensive CRA program that contains the elements of an effective CRA
policy as outlined in the Agency CRA Statement, including the
appointment of a CRA officer, conduct of needs assessment studies for
each low-income census tract within the subsidiary bank's delineated
community, and establishment of an officer call program. The record
does not show that the problems identified at this subsidiary bank
indicate chronic institutional deficiencies or a pattern of CRA deficiencies at other NCNB banks. In light of these and the other facts of
121
NCNB has adopted a corporate CRA policy that sets
out CRA-related goals for all NCNB banks. Elements
of the strategy for achieving these goals — community
needs assessment, product development, target marketing, training, management involvement, community
and economic development activities, and self-assessment — are tailored to each statewide market and are
detailed in the community investment policies for
NCNB subsidiary banks. Results are monitored at each
bank through quarterly meetings by a CRA Committee
of the bank's board of directors, and by a CRA Management Committee comprised of CRA coordinators
from each major market area and senior managers.
Reports on CRA developments at all of the NCNB
banks are also provided on a quarterly basis to the
parent holding company's CRA Subcommittee of its
board of directors by the corporate Director of Community Investment.
NCNB-North Carolina has received a satisfactory
rating from its primary regulator in the most recent
examination of its CRA performance. In addition, the
bank has in place the types of programs outlined in the
Agency CRA Statement as essential to any effective
CRA program. For example, NCNB-North Carolina
has worked with numerous local non-profit organizations involved with housing programs that benefit lowincome individuals such as the Charlotte-Mecklenburg
Housing Partnership, the Greenville Neighborhood
Project, the Neighborhood Housing Services of Charlotte, the Family Housing Services, the CharlotteMecklenburg Urban League and the Habitat for Humanity. The bank has provided assistance to these
groups by participating in loan pools, extending commercial loans and making donations. For example,
NCNB-North Carolina has made a $5 million commitment to the Charlotte-Mecklenburg Housing Partnership Loan Program, a program designed to benefit
individuals who earn between 45 and 67 percent of the
Department of Housing and Urban Development's
("HUD") median income for the Charlotte metropolitan statistical area ("MSA"). The bank also has provided a $200,000 line of credit to the Neighborhood
Housing Services of Charlotte to purchase, rehabilitate
and sell 25 homes to low- and moderate-income people
and has provided funding to the Habitat for Humanity
which resulted in the construction of almost 50 homes
for low-income families. Under the Adopt-A-House
Program, NCNB-North Carolina purchased land and
building materials while its employees provided labor to
build a home for a low-income family.
record, the Board believes that it is appropriate in this case to give
weight to the corrective measures undertaken by NCNB to improve
the CRA performance of this subsidiary bank.
122 Federal Reserve Bulletin • February 1991
Home Mortgage Disclosure Act ("HMDA") data for
1987 and 1988 show that NCNB-North Carolina's housing-related lending in low- and moderate-income areas
compares favorably with its lending in other areas.7 In
addition, NCNB-North Carolina's housing related lending in minority areas has been consistent with, or has
surpassed its lending in non-minority tracts having a
comparable income level, and its record in penetrating
minority communities compares quite favorably with
HMDA-reporting lenders as a whole.8 Similar patterns
are indicated for home improvement lending in both
years, with NCNB-North Carolina showing a stronger
penetration of minority communities in low- and moderate-income as well as middle-income areas, than
other lenders in the market. With regard to other loan
activity in low- and moderate-income census tracts
statewide, NCNB-North Carolina has made consumer
loans in an amount of $101.3 million and commercial
loans in an amount of $230.7 million since 1989, and has
purchased investments that aid in constructing and
improving municipal and public housing projects in an
amount that exceeded $70 million as of December 31,
1989. Analysis of NCNB-North Carolina's lending
practices in the market in which it operates does not
suggest a pattern of illegal racial or income bias.
NCNB-North Carolina, through its mortgage lending
subsidiary, NCNB Mortgage Corporation, offers several mortgage products that are designed to accommodate the needs of low- and moderate-income buyers.
The corporation participates in the Government Lowto Moderate-Income Program, which provides housing
credit at below-market interest rates, with no minimum
mortgage amount and assistance with closing costs. In
1989, a total of 74 loans, in an amount of $4 million,
were made under this program in North Carolina, and
at least $10.8 million in such loans were made throughout the states NCNB serves. The mortgage corporation
also participates in numerous state and county housing
authority programs which involve the issuance of mortgage revenue bonds to fund residential mortgage loans
to low- and moderate-income buyers. The corporation
promotes both programs by contacting realtors that do
business in low- and moderate-income areas. The cor7. In 1987 and 1988, NCNB-North Carolina's market share for
mortgage loans throughout the Charlotte MSA was 11 percent and 12
percent, respectively. The bank's market share in mortgages generated for low-and moderate-income census tracts for the same period
was 9 percent and 11 percent, respectively. In minority areas,
NCNB-North Carolina's market share for 1987 and 1988 was 21
percent and 16 percent, respectively.
8. In 1987, for example, the ratio of mortgage loans made by
NCNB-North Carolina in low- and moderate-income minority areas to
those made in non-minority areas in the same income bracket was 4 to
1, while that ratio for lenders in the aggregate was 1 to 1.5. In
middle-income neighborhoods, the ratio of NCNB's mortgage lending
in minority versus non-minority areas was 1 to 1.6 as compared to a
ratio of 1 to 4.5 for lenders as a whole.
poration also offers loans through the Federal Housing
Administration-insured loan program and the Veterans
Administration's guaranteed loan program.
NCNB-North Carolina's CRA efforts also are enhanced by the activities of NCNB Community Development Corporation, Charlotte, North Carolina
("CDC"), a non-profit subsidiary of NCNB-North
Carolina, which makes housing loans that benefit lowand moderate-income areas. CDC is presently developing a $10 million project for low-income housing in one
of the census tracts targeted by the Alliance. Upon
completion, the project will provide 105 new residential
units for low-income families. Approximately $600,000
has been loaned under this program. Another CDCsponsored project, financed by NCNB-North Carolina
and the city of Charlotte, received recognition for urban
development excellence from HUD. NCNB has taken
steps to obtain regulatory approval to establish a CDC
in Texas.
NCNB-North Carolina's branch offices appear to be
reasonably accessible to low- and moderate-income
residents. The bank operates 31 full service branches in
Mecklenburg County. While the Alliance has criticized
the number of branches in low- and moderate-income
neighborhoods, the record indicates that 11 of the
branches of NCNB-North Carolina, or 35 percent of its
branches, are located in the 38 low- and moderateincome census tracts in the county. NCNB-North
Carolina recently has undertaken several projects designed to improve and upgrade the access of low- and
moderate-income customers to NCNB branches. For
example, the bank's Beatties Ford branch, which is
located in the center of the largest minority-owned
retail business area in Mecklenburg County, was completely remodeled in late 1989 to provide customers
with an enlarged and modern branch facility. In January
1990, NCNB-North Carolina opened the North Graham
branch in a census tract with a 94 percent minority
population and a median income of $9,500 annually.
The branch is designed to offer check cashing and basic
banking services to residents of the community. The
Board notes that examination findings made no criticism of the convenience of branch locations or business
hours for less affluent segments of the community.
The Alliance has raised concerns regarding the availability of NCNB-North Carolina's CRA Notice and
CRA public file. In this application, NCNB-North
Carolina has an obligation under the Board's Regulation BB (12 C.F.R. 228) to provide to any member of
the public its CRA public file and CRA Notice upon
request. NCNB-North Carolina has established procedures to ensure that such information is readily available upon request and has trained branch management
and all public contact personnel in the technical requirements of the CRA. The record indicates that the bank's
Legal Developments
CRA record has been made available to representatives
of the Alliance upon their request. In response to
criticisms by the Alliance and Texas Acorn that NCNB
has failed to respond to requests to initiate a dialogue
regarding community needs, the record indicates that
NCNB has sought input from various community organizations, including the Alliance and Texas ACORN.
NCNB has incorporated feedback received from the
community into its business plans.
NCNB's lead Texas Bank, NCNB-Texas, was
formed in 1988 when NCNB purchased from the Federal Deposit Insurance Corporation the insolvent subsidiary banks of First RepublicBank Corporation
("First Republic").9 The acquisition of the remaining
subsidiaries of First Republic was completed in the
third quarter of 1989. Since completion of the acquisition, NCNB-Texas has begun to implement the types of
programs outlined in the Agency CRA Statement as
essential to any effective CRA program and has received a satisfactory rating from its primary regulator in
its most recent examination.
HMDA data for 1989 indicate that the number of
residential mortgage loans made by NCNB-Texas, and
its predecessor, First Republic, in low- and moderateincome minority and racially-mixed tracts served by the
bank, as a percentage of all mortgage loans in its
portfolio, was somewhat higher than that for lenders in
the aggregate in the Austin and Dallas MS As. 10 To date,
NCNB-Texas has originated or purchased $21 million
in mortgages in low- and moderate-income census
tracts, which constitutes an increase of over one-third
when compared to the volume of loans originated or
purchased by the bank in 1989. In addition, NCNBTexas has also committed to a $15 million participation
in various housing finance bond programs in Texas in
1990 and maintains agreements with Dallas civic groups
which set specific goals for housing and small business
lending in targeted communities. NCNB has indicated
that it will continue to implement its CRA program.
Based on these and other facts of record, the Board
believes that the record of performance under the CRA
is consistent with approval of this application. The
Board expects NCNB-Texas to continue to implement
9. The Trust Departments of NCNB's various subsidiary banks
maintain, in a fiduciary capacity, shares of a company doing business
in South Africa. These shares were included in the assets acquired
from First Republic; however, NCNB is not the beneficial owner of
the shares. Such a relationship is not, by itself, an indicator that the
banks are engaged in discriminatory practices, as is suggested by the
Alliance. The record indicates that NCNB's banks maintain policies
which prohibit discrimination. These policies are maintained at all
levels, and relate to, among other things, extensions of credit,
operations, employment and purchasing.
10. However, the number of residential mortgage loans made by
NCNB-Texas in all low- and moderate-income areas served by the
bank was smaller than that for lenders in the aggregate in the Austin,
Dallas, Houston and San Antonio MS As.
123
fully its CRA program and improve its record of CRA
performance, and will consider the progress of NCNBTexas in future applications. Consummation of this
proposal is not likely to result in any significant adverse
effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests,
or unsound banking practices. In light of the considerations discussed above, and 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 NCNB's application to acquire De Novo
Savings.11
Accordingly, the Board has determined that the
proposed application pursuant to section 4(c)(8) of the
BHC Act should be, and hereby is, approved.
The Board also has considered the request by NCNB
for approval of the merger of De Novo Savings into
NCNB-Florida pursuant to section 5(d)(3) of the FDI
Act. 12 Based on all of the facts of record, the Board has
determined that the proposed application under section
5(d)(3) of the FDI Act should be, and hereby is,
approved.
The approvals granted in this Order are subject to
NCNB's obtaining any other required approvals of the
appropriate federal and state banking agencies for the
11. The Alliance also has requested that the Board hold a public
hearing to assess further facts surrounding NCNB's CRA performance. Generally, under the Board's rules, the Board may, in its
discretion, hold a public hearing or meeting on an application to clarify
factual issues related to the application and to provide an opportunity
for testimony, if appropriate. 12 U.S.C. §§ 263.3(e) and 262.25(d). In
the Board's view, the Alliance has had ample opportunity to comment
and has submitted substantial written comments that have been
considered by the Board. In light of these facts, the Board has
determined that neither a public hearing or pubic meeting is necessary
to clarify the factual record in these applications, or otherwise
warranted in this case. Accordingly, Protestant's request for a public
hearing or public meeting on this application is hereby denied.
12. The proposed merger of De Novo Savings into NCNB-Florida
meets the requirements of section 5(d)(3) of the FDI Act. The record
shows that:
(1) the aggregate amount of the total assets of all depository
institution subsidiaries of NCNB is $69.2 billion, an amount which
is not less than 200 percent of the total assets of De Novo Savings,
which currently has approximately $24.0 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) American, the predecessor of De Novo Savings, had tangible
capital of less than 5 percent during the quarter preceding its
acquisition by NCNB;
(5) the transaction, which involves the merger of De Novo Savings,
a savings association located in Florida, into a bank subsidiary of
NCNB, a bank holding company whose banking subsidiaries'
operations are principally conducted in North Carolina, would
comply with the requirements of section 3(d) of the BHC Act if
De Novo Savings were a state bank which NCNB was applying to
acquire.
124 Federal Reserve Bulletin • February 1991
proposed transactions. The determination under section 4(c)(8) of the BHC Act 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 transactions approved in this Order shall be
made not later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Richmond, pursuant to delegated authority.
By order of the Board of Governors, effective
December 10, 1990.
Voting for this action: Governors Angell, Kelley, LaWare,
and Mullins. Absent and not voting: Chairman Greenspan
and Governor Seger.
JENNIFER J. JOHNSON
Associate Secretary of the Board
NCNB Corporation
Charlotte, North Carolina
Order Approving Application to Engage in Asset
Management, Servicing, and Collection Activities
NCNB Corporation, Charlotte, North Carolina
("NCNB"), 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)(3) of the Board's Regulation Y
(12 C.F.R. 225.23(a)(3)), to engage de novo in asset
management, servicing, and collection activities
through FRM, Inc., Dallas, Texas ("FRM").
FRM would provide asset management services to
the Resolution Trust Corporation ("RTC") and the
Federal Deposit Insurance Corporation ("FDIC"). In
addition, NCNB proposes to provide these services
both to unaffiliated third party investors that purchase
pools of assets that have been assembled by the RTC or
the FDIC from troubled financial institutions, and generally to unaffiliated financial institutions with troubled
assets.1
1. NCNB must obtain the prior approval of the Board before
providing asset management services in connection with pools of
assets that were not originated or held by financial institutions and
their affiliates.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 42,477 (1990)). 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(c)(8) of the
BHC Act.
NCNB, with total consolidated assets of $69.2 billion, is sixth largest banking organization in the nation.
NCNB operates eight subsidiary banks and engages
directly and through subsidiaries in a variety of permissible nonbanking activities.2
Under the proposal, FRM would not acquire an
ownership interest in the assets that it manages or in
the institutions for which it provides asset management services.3 In addition, FRM would not engage in
providing real property management or real estate
brokerage services as part of its proposed activities.4
The Board has previously approved many of the
activities encompassed within NCNB's proposed asset management activities on an individual basis. 5 In
addition, the Board has permitted bank holding companies to engage in asset management activities
through the Management Consignment Program of the
Federal Home Loan Bank Board in First Florida
Banks, Inc. ("First Florida").6
2. Data are as of September 30, 1990.
3. Asset management encompasses the liquidation (or other disposition) of loans and their underlying collateral, including real estate
and other assets acquired through foreclosure or in satisfaction of
debts previously contracted ("DPC property"). Specific individual
activities include: classifying and valuing loan portfolios; filing reviews of loan documentation; developing collection strategies; negotiating renewals, extensions, and restructuring agreements; initiating
foreclosure, bankruptcy, and other legal proceedings, where appropriate; and developing and implementing market strategies for the sale
or refinancing of individual loans and for the packaging and sale of
whole or securitized loan portfolios. In addition, NCNB would
conduct and review (either directly or through independent contractors) appraisals and environmental inspections; provide asset valuations; perform cash flow and asset review analyses; contract with and
supervise independent property managers; and lease (either directly
or through independent contractors) real estate and other DPC property. NCNB also would dispose of DPC property by developing and
implementing marketing strategies for the sale of DPC property, either
individually or packaged for investors or developers.
4. NCNB will contract with independent third parties to obtain
these services for assets under FRM's management.
5. The Board has previously determined that bank holding companies may engage in the following individual activities proposed by
NCNB pursuant to the Board's Regulation Y: servicing extensions of
credit (section 225.25(b)(1)); performing functions or activities permissible for trust companies (section 225.25(b)(3)); providing investment
or financial advice (section 225.25(b)(4)); providing management consulting to nonaffiliated depository institutions (section 225.25(b)(ll));
providing personal property and real estate appraisal activities (section 225.25(b)(13)); and operating a collection agency (section
225.25(b)(23)). The Office of the Comptroller of the Currency has also
indicated that asset management is a permissible activity for national
banks. See Memorandum from Paul Allan Schott, Chief Counsel, to
Emory W. Rushton, Deputy to the Director, RTC, dated October 18,
1990.
6. 74 Federal Reserve Bulletin 771 (1988). This program involved
corporations managing assets of failed financial institutions acquired
Legal Developments
In this regard, NCNB has made commitments to
address the concerns raised in First Florida regarding a
bank holding company's ability to control an institution
through the terms of an asset management agreement
without the necessary regulatory approvals. For example, NCNB has committed that it will not own the stock
of, or be represented on the board of directors of any
unaffiliated institution for which FRM provides asset
management services. In addition, NCNB has committed that FRM will not establish policies or procedures
of general applicability, and that FRM's services for
unaffiliated financial institutions would be limited to
asset management, servicing, and collection activities.7
Although the type of asset management activities
proposed by NCNB are the same as those previously
approved by the Board, NCNB proposes to make these
services available to a wider group of potential customers. Financial institutions and their affiliates, however,
would continue to be the originator of the assets to be
managed. Accordingly, NCNB would only manage
assets that its financial institution affiliates would have
authority to originate and own. In the Board's view, the
managed assets will be of the type that NCNB would
have expertise to manage and the public or private
ownership of the assets would not affect the nature of
the activity or diminish NCNB's ability to manage the
assets.
In light of the above, the Board believes that the
proposed activities are closely related to banking. The
Board is also required to determine that the performance of the proposed activity by NCNB is a proper
incident to banking—that is, whether the proposed
activity "can reasonably be expected to produce benefits, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices." 12 U.S.C.
§ 1843(c)(8).
Consummation of the proposal can reasonably be
expected to result in public benefits. NCNB's proposal
would facilitate the disposal of assets of financial institutions in receivership as well as financial institutions
with troubled financial assets. Moreover, the efficient
disposition of such assets can reasonably be expected
to produce benefits to the public. Since FRM will own
no equity in the institutions for which it provides asset
by the Federal Home Loan Bank Board. In addition, the Board also
permitted bank holding companies to provide asset management
services for thrifts managed by the Federal Savings and Loan Insurance Corporation.
7. NCNB will also provide its services for a limited period of time.
The Board notes that, while NCNB will manage assets on an ongoing
basis, the owner of the assets retains the right to make all final
decisions regarding asset dispositions and to terminate NCNB as an
asset manager.
125
management services or in the assets that it manages,
NCNB will assume no adverse financial risk from
engaging in the proposed activities. The Board also
believes that NCNB's de novo entry into the market
will increase competition for these services.
However, NCNB also seeks approval to acquire
institutions whose assets are being managed by FRM.
In First Florida, the Board expressed concern that a
bank holding company might obtain confidential information in the course of providing its asset management
services that would provide the bank holding company
with a competitive advantage over other institutions in
the bidding process for the failed institution under
management. The Board also noted that such information could give the managing bank holding company a
competitive advantage over the ultimate acquiror of the
failed institution in markets where they both compete.
To address these concerns, NCNB has committed
that it will establish and implement procedures to
preserve the confidentiality of information obtained in
the course of providing asset management services. 8
These procedures will prevent the use of information
obtained by FRM through its asset management activities in the course of preparing any bid that NCNB
may prepare to acquire the institution managed by
FRM, or to unfairly compete against the winning
bidder in the relevant market.
On the basis of all of the facts of record, the Board
concludes that potential adverse effects are outweighed
by the public benefits that would result from approval
of this application. There is also no evidence in the
record to indicate that consummation of this proposal is
likely to result in any significantly adverse effects, such
as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices. Accordingly, the Board has determined that the balance of public interest factors that it
must consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval. The financial
and managerial resources and future prospects of
NCNB and its subsidiaries, in the context of this
proposal, are also consistent with approval.
Based upon the foregoing and all of the other facts of
record, the Board has determined to approve, and
hereby does approve, this application. The Board's
determination is subject to all of the conditions set
forth in the Board's Regulation Y, including those in
sections 225.4(d) and 225.23(b), and to the Board's
authority to require modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with, and to prevent evasion of, the pro-
8. NCNB's procedures will be subject to review by the Federal
Reserve System.
126 Federal Reserve Bulletin • February 1991
visions 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
Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 24, 1990.
Voting for this action: Governors Seger, Angell, Kelley,
LaWare, and Mullins. Absent and not voting: Chairman
Greenspan.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Swiss Bank Corporation
Basle, Switzerland
Order Approving an Application to Engage in
Trading Options on Foreign Exchange and, Offering
Investment Advice on Financial and Non-Financial
Options and Futures Contracts, Securities, and
Interest Rate and Currency Swaps
Swiss Bank Corporation, Basle, Switzerland ("Applicant"), a foreign bank subject to the provisions of the
Bank Holding Company Act (the "BHC Act"), has
applied 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), for the
Board's approval to acquire control of SBC-O'Connor
Services, L.P., Chicago, Illinois ("Partnership"). Applicant would acquire control through a limited partnership interest representing 80 percent of the equity
of Partnership.1 O'Connor Partners, an affiliate of
O'Connor and Associates, Chicago, Illinois (O'Connor and Associates and its affiliates are collectively
referred to as "OCA"), a commodity trading organization, would acquire a general partnership interest
representing 20 percent of the equity of Partnership.
Applicant has also applied under section 4(c)(8) of the
BHC Act for the Board's approval for its wholly owned
subsidiary, SBX, Chicago, Illinois, to become the Specialist in options on the Swiss franc traded during the
day session of the Philadelphia Stock Exchange
("PHLX") and a registered options trader ("Trader")
with respect to options on the Deutsche mark, Japanese
yen, Swiss franc, British pound, Canadian dollar,
French franc, Australian dollar, and European Cur1. Applicant would acquire 79 percent directly and one percent
through its wholly owned subsidiary, SBC Acquisition Sub, Wilmington, Delaware.
rency Unit. Applicant has also applied for Partnership
to provide execution services to SBX and Applicant's
United States branches with respect to:
(i) over-the-counter options on foreign exchange,
U.S. government securities, and other money
market instruments which a bank may buy or sell
in the cash market for its own account, and
indices on such securities and instruments;
(ii) exchange-traded transactions in futures, options, and options on futures on foreign exchange,
U.S. government securities and other money market instruments which a bank may buy or sell in
the cash market for its own account, and indices
on such securities and instruments; and
(iii) spot and forward transactions in foreign exchange.
Notice of the application, affording interested persons
an opportunity to submit comments on the proposal,
has been published (55 Federal Register 29,896
(1990)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the BHC Act.
Applicant is the 28th largest banking organization in
the world, controlling total consolidated assets of
approximately U.S. $123.3 billion.2 Applicant has
branches in New York, New York; Chicago, Illinois;
and San Francisco, California; and agencies in Atlanta, Georgia; Miami, Florida; and Houston, Texas.
OCA is an integrated group of companies and partnerships engaged in trading derivative instruments
relating to debt and equity securities, oil, gas, silver,
and gold. OCA trades for its own account in these
instruments and does not offer investment advice to
third parties. Currently, the majority of OCA's activities are not permissible for bank holding companies
under section 4(c)(8) of the BHC Act.
In order to approve an application submitted pursuant to section 4(c)(8) of the BHC Act, the Board is
required to determine that the proposed activity is "so
closely related to banking as to be a proper incident
thereto." 12 U.S.C. § 1843(c)(8). In considering
whether a proposed new activity would be a proper
incident to banking, the Board must find that the
proposed acquisition "can reasonably be expected to
produce benefits to the public . . . that outweigh the
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).
2. All banking data are as of December 31, 1989.
Legal Developments
I. Investment Advice on Non-Financial Derivative
Contracts
Applicant proposes that Partnership would provide
advice to Applicant, its affiliates, and OCA with respect to trading in derivative instruments, such as
options, futures contracts, and warrants. Partnership
would advise Applicant and its affiliates on trading in
derivative instruments relating to bank-eligible securities and foreign exchange in the United States.3 In
addition to providing advice on these matters, Partnership also would provide advice to Applicant and its
foreign affiliates with respect to trading in derivative
instruments, such as options, warrants, or futures,
based on debt and equity securities outside of the
United States. Partnership also would give advice to
Applicant and affiliates with respect to interest rate
and currency swaps and swap derivative products.
Applicant also has proposed that Partnership provide advice to OCA and its affiliates on:
(1) trading debt and equity securities;
(2) trading options, futures, and options on futures
with respect to debt and equity securities, including
options on futures and futures contracts based on
indices of debt and equity securities; and
(3) trading options, futures, and options on futures
with respect to silver and gold.
Partnership also would give advice to OCA on
trading options and futures on oil and gas ("nonfinancial futures advice"). 4 Applicant maintains that
the computer system that monitors the trading of
options and futures based on bank-eligible securities
also may be used for profitable trading of options and
futures based on other types of commodities.
The Board has determined that the provision of
investment advice with respect to securities, futures
and options on futures on government securities, other
bank-eligible securities, and bullion is closely related
to banking. 12 C.F.R. 225.25(b)(4) and (b)(19). In
addition, the Board has permitted a bank holding
company to provide investment advice with respect to
futures and options on futures based on stock and
bond indices,5 and interest rate and currency swaps.6
The Board has not previously approved the provision
3. Trades for the account of Applicant, as opposed to its subsidiaries, would be maintained at its state-chartered branches in New York,
New York, and Chicago, Illinois. Partnership may execute some of
the trades on behalf of the branches. Partnership would not, however,
execute trades on behalf of foreign affiliates.
4. Neither Applicant nor any of its affiliates, including Partnership,
would execute or clear transactions on behalf of OCA or its affiliates.
5. The Long-Term Credit Bank of Japan, Limited, 74 Federal
Reserve Bulletin 573 (1988).
6. The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582
(1989).
127
of non-financial futures advice for bank holding companies pursuant to section 4(c)(8) of the BHC Act. As
outlined above, in order to approve this activity, the
Board must find that the activity is closely related to
banking and a proper incident thereto.
The Board believes that the record in this case
demonstrates that the provision of advice with respect
to non-financial futures and options is closely related
to banking. The Office of the Comptroller of the
Currency ("OCC") has found that the provision of
investment advisory services is within the "business
of banking."7 In this decision, the OCC determined
that advice on exchange-traded agricultural and other
commodity futures contracts would be permissible for
a national bank, since the contracts are financial
products, and that the provision of investment advice
was essentially the same as the advice given with
respect to financial futures contracts. The OCC's
position is that the provision of investment advice is
incidental to the bank's authority to purchase and sell
the instruments on behalf of its customers.8
The Board has permitted bank holding companies to
provide advice with respect to futures and options on
futures relating to bank-eligible securities, bullion, and
foreign exchange. 12 C.F.R. 225.25(b)(19). The Board
also has permitted bank holding companies to provide
investment advice relating to options and futures contracts based on broad based indices of stock and
bonds. The Hongkong and Shanghai Banking Corporation, Kellett, N.V., and HSBC Holdings, B.V., 76
Federal Reserve Bulletin 770 (1990). The provision of
investment advice with respect to investing in options
and futures based on non-financial instruments appears to be the functional equivalent of providing
advice with respect to options and futures based on
financial instruments, because, in each case, the bank
holding company subsidiary is furnishing advice with
respect to the trading of a financial instrument to a
sophisticated client.
The provision of investment advice to OCA and
Applicant appears not to present potential adverse
effects, such as unfair competition, undue concentration of resources, or conflicts of interests. Partnership
would provide this advice only to Applicant, its affiliates, and OCA. Partnership would not provide advice
to third parties without prior Board approval. OCA
and Applicant are sophisticated institutions that would
be qualified to evaluate the advice given by Partner7. See, OCC Interpretative Letter 494, dated December 20, 1989. In
this letter, the OCC determined that a national bank may provide
execution, clearing, and advisory services for customer transactions
in standardized, exchange-traded "nonfinancial" futures contracts
and options, such as futures on oil and agricultural products.
8. See, OCC Letter No. (date), reprinted in [1985-1987 Transfer
Binder] Fed. Banking Law Rep. (CCH) 11 85,535.
128
Federal Reserve Bulletin • February 1991
ship.9 Partnership would not execute or clear any
transactions on behalf of OCA.
Accordingly, the Board has determined, under the
facts and circumstances of this case, that the provision
of investment advice on financial and non-financial
futures, options, and options on futures to OCA and
Applicant is closely related to banking and a proper
incident to banking for purposes of section 4(c)(8) of
the BHC Act.
II. Execution Services on Behalf of Applicant and
SBX
Applicant has proposed that Partnership provide execution services to SBX and Applicant's United States
branches with respect to:
(i) over-the-counter options on foreign exchange,
U.S. government securities, and other money
market instruments, and indices on such securities and instruments;
(ii) exchange-traded transactions in futures, options, and options on futures on foreign exchange,
U.S. government securities and other money market instruments, and indices on such securities
and instruments; and
(iii) spot and forward transactions in foreign exchange.
The Board has recognized that commercial banks and
bank holding companies may combine the functions of
giving advice on foreign exchange transactions and
executing foreign exchange transactions.10 In addition,
the Board has permitted a bank holding company to
combine advice and execution services in transactions
on derivative instruments based on U.S. government
9. Under the Board's Regulation Y, a bank holding company may
offer investment advice on financial futures and options only to
"financial institutions and other financially sophisticated institutions
that have significant dealing or holding in the underlying commodities,
securities, or instruments." 12 C.F.R. 225.25(b)(19)(ii). OCA and
Applicant would qualify under this definition due to their extensive
trading activities.
In addition, the Board's Regulation Y requires that when a bank
holding company subsidiary offers investment advice, the subsidiary
be registered as a commodity trading advisor ("CTA") with the
Commodity Futures Trading Commission. This requirement does not
appear imperative in this application since OCA and Applicant would
be co-venturers in Partnership, and thus, in essence, would be
providing investment advice to themselves. Accordingly, registration
as a CTA does not appear necessary in this context. The Board has
permitted the provision of investment advice with respect to financial
futures without registration as a CTA. Security Pacific Corporation,
74 Federal Reserve Bulletin 820 (1988) ("Security Pacific"). The
customer base in Security Pacific was sophisticated institutional
customers. As previously noted, Partnership would not offer investment advice to third parties.
10. Banca Commerciale Italiana S.p.A., 76 Federal Reserve Bulletin 649 (1990); and 12 C.F.R. 225.25(b)(18) and (b)(19).
securities and other money market instruments.11 Finally, the Board has previously approved the combination of securities brokerage with investment advice. 12 Accordingly, the Board finds that the proposed
combination of foreign exchange and government securities advisory and execution services is closely
related to banking.
In order to approve the combination of these activities, the Board is required to determine that the activity
would be a proper incident to banking. Partnership
would provide execution services only to Applicant and
its affiliates. The provision of these services may be
expected to increase competition, since Partnership
would be facilitating Applicant's entry into these markets. In this case, the potential adverse effects, such as
conflicts of interests, or undue concentration of resources, are limited due to the fact that the services
would be provided solely to Applicant and SBX.
Accordingly, the Board has determined, under the
facts and circumstances of this case, that the combination of investment advice and execution services to
Applicant's U.S. branches and SBX is closely related
to banking and proper incident thereto for purposes of
section 4(c)(8) of the BHC Act.
III. Trading in Options on Foreign Exchange
Applicant has proposed that its wholly owned subsidiary, SBX, trade for its own account in options13 based
on foreign exchange by:
(i) acting as the Specialist in Swiss franc options
traded on the PHLX; and
(ii) acting as a registered options trader in options
on the Deutsche mark, Japanese yen, Swiss franc,
British pound, Canadian dollar, French franc,
Australian dollar, and European Currency Unit. 14
11. Security Pacific Corporation, 70 Federal Reserve Bulletin 238
(1984); Citicorp, 76 Federal Reserve Bulletin 664 (1990); and 12
C.F.R. 225.25(b)(18) and (b)(19).
12. PNC Financial Corp., 76 Federal Reserve Bulletin 396 (1989).
13. A currency option represents the contractual right, but not the
obligation, to purchase or sell a predetermined amount of currency at
a specific price at any time prior to a specific date. The option provides
a means of hedging foreign exchange risk and a means of investing in
foreign currency without incurring excessive risk. Other contracts
relating to foreign exchange are " s p o t " contracts, which are individual agreements for the immediate (within two days) purchase or sale of
currency, "forward" contracts, which are customized agreements for
the purchase or sale of a specific quantity of currency to be settled at
a predetermined future date, and futures contracts, which are standardized agreements for the purchase or sale of currency at a
pre-determined future date traded on commodity exchanges. Both
forward and futures contracts provide a means to establish a firm
exchange rate for an obligatory transaction at a later date.
14. In addition to its market-making functions on the PHLX,
Applicant has proposed that SBX execute and clear options based on
foreign exchange, and bank-eligible securities on behalf of Applicant
and its subsidiaries, including its U.S. branches. SBX's operations
would be integrated with the trading program of Applicant. These
services would appear to be permissible under section 4(a)(2)(A) of the
Legal Developments
SBX would execute and clear transactions for its
own account and for the accounts of affiliates.
The Board has approved most of these marketmaking activities in previous orders.15 The Board has
denied an application to act as a specialist with respect
to options on the French franc.16
As the sole Specialist in Swiss franc options designated by the PHLX, SBX would be obliged to make a
market, or bid and offer, for all traders who approach it
on the PHLX, but technically would not be obliged in
any way as to the price and quantity it bids and offers.17
Applicant maintains that Exchange rules generally prohibit a Specialist from speculating.18 Specialists generate profits from the spread between their bid and offer
quotations.19 The activities of a registered options
trader are similar to the activities of a Specialist.20
The Board has previously recognized that foreign
exchange activities have traditionally been conducted
by banks and are permissible activities under the BHC
Act.21 Banks act as market-makers in the interbank
BHC Act (12 U.S.C. § 1843(a)(2)(A)), which permits a bank holding
company subsidiary to furnish services to its affiliates.
15. Societe Generate, 75 Federal Reserve Bulletin 580 (1989)
("Societe Generate I") (approval of Specialist activities in Deutsche
marks); and Societe Generate, 76 Federal Reserve Bulletin 776 (1990)
("Societe Generate II") (approval of registered options trader activities in other currencies, except the French franc).
16. Companie Financiere de Suez and Banque Indosuez, 72 Federal
Reserve Bulletin 141 (1986) ("Banque Indosuez").
17. The Specialist is subject to evaluation quarterly by floor traders
of the Exchange and, therefore, may have an incentive to make what
traders would consider "good" bids and offers.
18. Exchange Rule 1020 prohibits a Specialist from engaging in
transactions for its own account unless those transactions "are
reasonably necessary to permit such specialist to maintain a fair and
orderly market."
19. A Specialist's activities consist of three basic functions:
(1) to use reasonable efforts to make a "fair and orderly" market in
Swiss francs and to engage, to a reasonable degree under existing
circumstances, in dealings for its own account when a lack of price
continuity or temporary supply/demand disparities exist;
(2) to collate and publish the best bids/offers for Swiss franc options;
and
(3) to act as agent for orders in Swiss franc options, in particular for
"limit orders" left on the Specialist's books.
20. A Trader in foreign exchange options deals for its own account
in order to maintain a "fair and orderly" market in certain options
when a lack of price continuity or temporary disparity in supply or
demand exists on options for which the Trader makes a market. SBX
would be obliged to make a market in the proposed foreign currency
options, or bid and offer, for all traders who approach it on the
Exchange, but would not be obliged in any way as to the price and
quantity it bids and offers. A Trader is permitted to "leave the floor,"
i.e., not trade, provided the Trader meets minimum trading levels
each quarter.
21. See Hongkong and Shanghai Banking Corporation, 75 Federal
Reserve Bulletin 217 (1989) (trading foreign exchange forwards, futures, options, and options on futures for its own account for other
than hedging purposes to a limited extent); and The Nippon Credit
Bank, Ltd., 75 Federal Reserve Bulletin 308 (1989) (engaging in foreign
exchange spot transactions).
In addition, in 1989, the Board approved the application of Societe
Generate to engage de novo in acting as the specialist in deutsche mark
options traded on the Exchange during the Exchange's day session.
Societe Generate I. In Societe Generate 1, the Board determined that
129
market, continually offering both bid and offer prices
on the currencies and contracts they trade. Through
their participation in the interbank market for foreign
currency options, banks have developed experience in
dealing, market-making and risk management, which
are essential elements of the proposed activities.
The Office of the Comptroller of the Currency
("OCC") has authorized national banks to deal in
foreign currency options as a Specialist and Trader on a
securities exchange.22 Banks are major participants in
all aspects of the foreign exchange markets and also act
as market-makers in various currencies.23 Their activities include trading for their own account as well as for
customers in virtually all foreign exchange markets and
instruments, including trading foreign currency options
on regulated exchanges as proposed here.24
The proposed activities would facilitate the development of the foreign exchange options market by
providing increased market liquidity and enhanced
opportunities for financial institutions to hedge foreign
exchange risk. In addition, the entry of Company into
the market for these services may be expected to
increase competition among Traders. Consummation
of the proposal also is likely to provide gains in
efficiency through linkage of the interbank foreign
exchange market with the market for exchange-traded
options on foreign exchange.
Because fluctuations in foreign exchange prices and
volatility can affect such profits, SBX would operate
pursuant to trading limits that would maintain its
exposure to limits adopted by Applicant and would be
constantly monitored by management. In addition,
SBX would carefully hedge its portfolio of foreign
exchange options in order to ensure compliance with
these limits.
With regard to the adverse effects that might stem
from the proposal, acting as a Specialist and Trader
involves the financial risk of adverse rate fluctuations.
In this case, Applicant has sought to minimize these
risks. First, the rules of the Exchange permit the
these activities would be permissible for a bank holding company
since the activities were functionally and operationally similar to
dealing in foreign currency.
22. See, Letter dated June 3, 1988, from J. Michael Shepherd,
Senior Deputy Comptroller for Corporate and Economic Programs, to
Republic National Bank of New York (acting as a registered options
trader on the PHLX with respect to Australian dollars, Canadian
dollars, British pounds, German marks, Swiss francs, French francs,
Japanese yen, and European Currency Unit); Letter, dated January
11, 1984, from Michael Patriarca, Deputy Comptroller for Multinational Banking, to H. Helmut Loring, Senior Vice President, Bank of
America, N.T. & S.A. (acting as a specialist on the PHLX with
respect to the French franc). The OCC found that these activities were
permissible for national banks, and relied upon representations that
the bank would have limited exposure to the losses of its subsidiary.
23. See The Hong Kong and Shanghai Banking Corporation,
Kellett, N.V., HSBC Holdings, B.V. and Marine Midland Banks,
Inc., 75 Federal Reserve Bulletin 217 (1989).
24. See Societe Generale II.
130
Federal Reserve Bulletin • February 1991
Specialist and Trader to set the price and quantity that
it will buy and sell in order to minimize its risk in an
adverse or volatile market. The Specialist or Trader is
required to deal for its own account as necessary to
maintain a "fair and orderly market." Under the rules
of the Exchange a Trader is permitted to leave the
trading floor, provided it has met the minimum trading
requirements for each quarter. Therefore, unlike the
Specialist, who is expected to trade at all times, a
Trader may refrain from dealing when potential profits
do not appear likely.
Second, Applicant states that the proposed activities are not speculative and that Exchange Rules are
intended to prohibit a Specialist or Trader from speculating.25 Rather, Specialists and Traders generate
profits from the spread between their bid and offer
quotations. Applicant states that SBX would be carefully hedged at all times and would operate pursuant to
trading limits that would limit its exposure to potential
losses. 26
Third, the record also shows that Applicant has
experience in trading foreign currency options on the
over-the-counter market and on exchanges, and hedging strategies. In this regard, SBX would institute a
computerized options risk-management system that
would include an ongoing analysis of risk exposure
and hedges; "what i f ' studies for different market
scenarios; continuous review of Company's compliance with its own internal limits; and back-office
surveillance of the firm's floor trading activities.27
Company would be a registered broker-dealer with the
Securities and Exchange Commission and hence subject to the net capital requirements applicable to
registered broker-dealers.
IV. Joint Venture Considerations
In prior decisions, the Board has expressed concern
that joint ventures could potentially lead to a matrix of
relationships between co-venturers that could break
25. Exchange Rule 1014 provides that a Specialist and a Trader
should not enter into transactions for its own account unless those
transactions "are reasonably calculated to contribute to the maintenance of a fair and orderly market." In addition, Rule 1015 states that
no member of the Exchange should enter into a transaction which is
"excessive in view of his financial resources or in view of the market
for such security."
26. Applicant has not proposed to engage in pit arbitrage activities.
See Citicorp, 68 Federal Reserve Bulletin 776 (1982). Company would
purchase and sell foreign exchange options as a market maker, and
seek to profit from a disparity between bid and offer prices. Company
would fully hedge these positions.
27. The Board believes that the circumstances of this case are
distinguishable from the situation in Companie Financiere de Suez
and Banque Indosuez, 72 Federal Reserve Bulletin 141 (1986). Since
that decision, the market for options has expanded and the involvement of banks has become more widespread.
down the legally mandated separation of banking and
commerce, create the possibility of conflicts of interest, and other adverse effects that the BHC Act was
designed to prevent, or impair or give the appearance
of impairing the ability of the banking organization to
function effectively as an independent and impartial
provider of credit.28 Further, joint ventures must be
analyzed carefully for any possible adverse effects on
competition and on the financial condition of the
banking organization involved in the proposal.
In prior cases involving joint ventures between bank
holding companies and firms generally engaged in
securities activities not authorized for bank holding
companies, the Board has relied on a series of commitments to address these potential adverse effects.
These commitments are designed to separate the activities of the joint venture from those of the nonbanking co-venturer, Wells Fargo. In this case, Applicant
has made a number of commitments similar to those
that the Board has relied upon in other cases. The
commitments are designed to ensure a separation
between the joint venture and OCA's activities related
to dealing in derivative instruments. Under the circumstances of this case, and in view of the fact that
OCA does not offer its services to customers and that
the Partnership would not offer investment advice to
unaffiliated third parties, the Board finds these commitments are sufficient to address its concerns about
potential adverse effects associated with the joint
venture.
The financial and managerial resources of Applicant
are considered consistent with approval. Based on
consideration of all the relevant facts, the Board
concludes that the balance of the public interest factors that it is required to consider under section 4(c)(8)
is favorable. Accordingly, based on all the facts of
record, and subject to the conditions of this Order, the
Board has determined that the proposed application
should be, and hereby is, approved.
The Board's determination is subject to all the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of 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,
28. See Amsterdam-Rotterdam,
N.V., 70 Federal Reserve Bulletin
835 (1984); The Fuji Bank, Limited, 75 Federal Reserve Bulletin 577
(1989); Wells Fargo & Company, 76 Federal Reserve Bulletin 465
(1990) ("Wells Fargo").
Legal Developments
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1990.
Voting for this action: Governors Seger, Angell, Kelley,
La Ware, and Mullins. Absent and not voting: Chairman
Greenspan.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Comerica Incorporated
Detroit, Michigan
Order Approving Applications to Acquire and Merge
Bank Holding Companies
Comerica Incorporated, Detroit, Michigan ("Comerica"), 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 3 of
the BHC Act (12 U.S.C. § 1842) to acquire:
(1) Plaza Commerce Bancorp, San Jose, California
("Plaza Commerce"), and thereby indirectly acquire Plaza Bank of Commerce, San Jose, California; and
(2) InBancshares, City of Industry, California, and
thereby indirectly acquire Bank of Industry, City of
Industry, California.1
Comerica also has applied under section 4 of the BHC
Act to acquire Plaza Commerce's sole nonbanking
subsidiary, Plaza Realty Advisors, San Jose, California ("Plaza Realty"), and thereby engage through
Plaza Realty in arranging and brokering residential,
commercial, and construction loans, and other exten-
1. In the event that Comerica is unable to acquire all the voting
shares of Plaza Commerce, Comerica has requested Board approval
to acquire 24.9 percent of its voting shares. The Board has approved
the acquisition by a bank holding company of less than a controlling
interest in a bank and Comerica has offered a number of commitments
that the Board has previously found helpful in determining that an
investing bank holding company will not be able to exercise a
controlling influence over another bank for purposes of the BHC Act.
See First Community Bancshares, Inc., 77 Federal Reserve Bulletin
000 (1991) and Board Orders cited therein.
Bank of Industry has a direct investment in a real estate project
known as Chino Hills pursuant to authority granted by the State of
California. Comerica has committed to divest this interest within two
years of consummation of this proposal and not to expand the
activities of this project during the two-year period.
131
sions of credit, 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 interested parties an opportunity to submit comments, has been
published (55 Federal Register 28,828 (1990)). 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.
Section 3(d) of the BHC Act (12 U.S.C. §
1842(d)), the Douglas Amendment, prohibits the
Board from approving an application by a bank
holding company to acquire control of any bank
located outside the bank holding company's home
state unless such acquisition "is specifically authorized by the statute laws of the State in which such
bank is located, by language to that effect and not
merely by implication." 2 Comerica's home state is
Michigan, and California is the home state of the
subsidiary banks to be acquired.3
Effective January 1, 1991, the California interstate
banking statute expressly authorizes bank holding
companies located in other states to acquire existing
California banks and bank holding companies, if there
is substantial reciprocity between California law and
the law of the home state of the acquiring out-of-state
bank holding company.4 The laws of Michigan provide
for similar reciprocal out-of-state acquisitions by expressly authorizing out-of-state bank holding companies to acquire Michigan banking institutions, if the
laws of the acquiring out-of-state bank holding company's home state permit reciprocal acquisitions by
Michigan bank holding companies and these laws are
not unduly restrictive in administering such reciprocity.5 Accordingly, Michigan law meets the substantial
reciprocity requirement of California law and California law expressly authorizes the proposed acquisi-
2. 12 U.S.C. § 1842(d).
3. A bank holding company's home state is that state in which the
total deposits of the bank holding company's subsidiary banks were
largest on July 1, 1966, or on the date the bank holding company
became a bank holding company, whichever date is later.
4. Cal. Fin. Code §§ 3753, 3756 (West 1989). Substantial reciprocity
exists if:
(i) California bank holding companies may acquire banking institutions located in the home state of the acquiring out-of-state
bank holding company on terms and conditions substantially the
same as acquisitions made by the acquiring out-of-state bank
holding company in its home state; and
(ii) California bank holding companies making acquisitions in the
home state of the acquiring out-of-state bank holding company
have substantially all the powers and capabilities under the laws
of the home state of the acquiring out-of-state bank holding
company. Cal. Fin. Code § 3751(j) (West 1989).
5. Mich. Stat. Ann. § 23.710(130b(4)) (Callaghan Supp. 1990).
California law does not impose unduly restrictive conditions on
acquisitions by Michigan bank holding companies and the Michigan
Financial Institutions Bureau has approved Comerica's proposed
acquisitions of Plaza Commerce and InBancshares.
132 Federal Reserve Bulletin • February 1991
tions.6 In light of the foregoing, the Board believes that
approval of the proposal is not barred by the Douglas
Amendment.
Comerica is the second largest banking organization
in Michigan, operating four subsidiary banks with total
deposits of $10.8 billion, representing approximately
13.2 percent of the total deposits in commercial banks
in Michigan.7 Comerica also controls commercial
banking organizations in Ohio and Texas. Plaza Commerce is the 34th largest commercial banking organization in California, operating a single subsidiary bank
with deposits of $447 million, representing less than
one percent of the total deposits in commercial banks
in California. InBancshares is the 80th largest commercial banking organization in California, controlling
a single subsidiary bank with deposits of $200 million,
representing less than one percent of the total deposits
in commercial banking organizations in California.
Consummation of the proposals would not result in an
adverse effect on the concentration of banking resources in California or Michigan.
Comerica does not compete directly with either
Plaza Commerce or InBancshares in any banking
market. Plaza Commerce and InBancshares compete
directly in the San Francisco banking market.8 In that
market, Plaza Commerce controls deposits of $447
million and InBancshares controls deposits of $88
million, each representing less than one percent of the
total deposits in commercial banks in the market.
Upon consummation of the proposals, the HerfindahlHirschman Index ("HHI") would increase by less
than one point to 1732.9 Accordingly, consummation
of the proposals would not result in a significantly
6. Michigan law also requires an out-of-state applicant to agree to
limit the interest rate charged for certain consumer loans to Michigan
residents borrowing within Michigan and to have a satisfactory record
under the Community Reinvestment Act. Mich. Stat. Ann.
§ 23.710(130b(ll) and (12)) (Callaghan Supp. 1990). These requirements, however, do not impair the substantial reciprocity of the
Michigan statute and the Office of the California Superintendent of
Banks has confirmed that Michigan law is substantially reciprocal with
California law.
7. Deposit data are as of September 30, 1990. State ranking data are
as of June 30, 1990.
8. The San Francisco banking market is approximated by the San
Francisco-Oakland-San Jose RMA adjusted to include the city of
St. Helena, California.
9. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is above 1000 is considered to be moderately concentrated. In
such markets, the Department is likely to challenge a merger that
increases the HHI by more than 100 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 more than 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.
adverse effect on competition in any relevant banking
market. Consummation also would not result in a
significant adverse effect on probable future competition in any relevant banking market. In addition, the
financial and managerial resources and future prospects of Comerica, Plaza Commerce, InBancshares,
and their subsidiary banks 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 the subsidiary banks of Comerica under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) (the "CRA"). The CRA
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.10
In this regard, the Board has received comments
from the Community Coalition for Reinvestment,
Grand Rapids, Michigan ("Protestant"), that generally criticize the record of performance of Comerica
Bank, N.A. ("Bank"), in meeting the credit needs of
low- and moderate-income communities, including
small businesses, in the Grand Rapids area.11 Comerica has submitted a detailed response to these comments.12
The Board has carefully reviewed the CRA performance of Comerica, Plaza Commerce and InBancshares and their bank subsidiaries, as well as the
Protestant's comments and Comerica's response to
those comments, in light of the CRA, Board regulations, and the Statement of the Federal Financial
Supervisory Agencies Regarding the Community Re-
10. 12 U.S.C. § 2903.
11. Protestants specifically allege the following deficiencies in
Bank's CRA performance:
(i) patterns of racially discriminatory lending practices in 1987-88
Home Mortgage Disclosure Act data;
(ii) failure to provide basic banking services and an insufficient
number of banking locations;
(iii) insufficient marketing of banking services; and
(iv) insufficient residential and home improvement lending.
12. Representatives of both Bank and Comerica have met privately
with Protestant several times in an effort to clarify the CRA issues
presented. Although the parties were unable to resolve all of their
differences, Comerica has implemented a substantial number of Protestant's suggestions. Bank and Comerica have offered to continue to
work with Protestant to address their concerns. Other commenters to
these applications have withdrawn their comments.
Legal Developments
investment Act ("Agency CRA Statement").13 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 applications process to review an institution's CRA compliance and performance. The Agency CRA Statement
also suggests that decisions by agencies to allow
financial institutions to expand will be made pursuant
to an analysis of the overall CRA performance of the
institution.
Initially, the Board notes that the subsidiary banks
of Plaza Commerce, InBancshares, and Comerica,
including Bank, have received satisfactory ratings
from their primary regulators in the most recent examinations of their CRA performance. In this regard,
the Agency CRA Statement provides that, while CRA
examination reports do not provide conclusive evidence of an institution's CRA record, the federal
supervisory agencies will accord such reports great
weight in the applications process.14 The Board also
notes that, in accordance with the terms of a previous
Board Order, Comerica submits quarterly reports to
the Federal Reserve Bank of Chicago detailing the
CRA efforts of Comerica' lead subsidiary bank.15
In addition, the Board notes that Comerica and its
subsidiary banks, including Bank, have implemented
policies, of the types outlined in the Agency CRA
Statement, that contribute to an effective CRA program. For example, Comerica has established a program to supervise and review the CRA programs of its
subsidiary banks.16 Comerica's vice-chairman, the organization's second-ranking officer, is charged with
CRA program oversight responsibility. Comerica has
also designated a vice-president to serve as Corporate
CRA Corporate Officer and, with a CRA staff, to
coordinate the CRA activities of Comerica and its
subsidiary banks.17
13. 54 Federal Register 13,742 (1989).
14. 54 Federal Register at 13,745.
15. Comerica Incorporated, 74 Federal Reserve Bulletin 809 (1988).
16. Pursuant to Comerica's CRA policy, each of Comerica's subsidiary banks prepares a quarterly report to Comerica's corporate
CRA committee that records and evaluates the reporting bank's CRA
efforts.
17. Comerica's CRA committee, composed of both CRA officers
and senior officers in Comerica's substantive lending areas, monitors
Comerica's efforts to meet community needs and initiates and reviews
CRA policy initiatives. To implement such policy and assist its
subsidiary banks in meeting their CRA responsibilities, Comerica
provides guidance to each of its subsidiary banks through senior
on-site personnel (or, in the case of Bank, through on-site personnel in
each region that Bank serves). In addition, the CRA Statements of
Comerica's subsidiary banks describe the types of credit offered, the
methods for performing community credit needs, and list the types of
community projects that the Comerica has funded.
133
Bank ascertains community credit needs through
direct forms of community contact. Bank employs its
officer call program to gather information on the credit
needs of low- to moderate-income individuals and
small businesses in the community. As noted below,
Bank officers and employees learn more about community credit needs by participating in community and
civic organizations. Bank also has implemented programs to train bank managers to develop effective
relationships with local communities and community
organizations.
Bank and its management participate with several
community organizations in programs that are designed to develop housing and consumer credit for
low- and moderate-income and minority residents
of the Grand Rapids area. A senior management
official of Bank serves on the Board of the Local
Initiatives Support Coalition, a nonprofit organization that invests in the housing efforts of community
development corporations and assists and raises
funds for such community development corporations. 18
Bank provides basic banking services and credit to
low- and moderate-income individuals in its community, offering basic checking accounts, savings accounts and check cashing services at prices comparable to or lower than its Grand Rapids competitors.
Banking services are also provided from locations
within low- and moderate-income communities. Two
of Bank's ten branches in the Grand Rapids area are in
downtown Grand Rapids, and Comerica has indicated
that it will investigate the feasibility of placing ATMs
in central city Grand Rapids to better meet the needs
of that community.19
The record also shows that Bank markets its products and services through general circulation media.
Comerica has stated that Bank will advertise in newspapers that directly serve the minority community of
Grand Rapids. In addition, Bank has developed a
bilingual Spanish-English brochure describing Bank's
home improvement lending services. Through its own
Speaker's Bureau and the Grand Rapids Chamber of
Commerce, Bank also participates in a series of seminars and presentations to educate low-income and
minority individuals and the small business community about obtaining business or mortgage financing
and related products.
18. In addition, Bank provides financial assistance to the Inner City
Christian Federation, a Grand Rapids community organization that
rehabilitates inner-city housing. Bank has also assisted the Grand
Rapids Neighborhood Improvement Program in the development of a
consumer mortgage lending pool and a survey concerning basic
banking needs and services.
19. The two central city branch locations in Grand Rapids are
located on bus lines and are adjacent to free parking.
134 Federal Reserve Bulletin • February 1991
The Board notes that, in the past, there have been
some disparities in the residential mortgage and
home improvement loan data for Bank's lending to
borrowers in low- and moderate-income areas. 20
However, Comerica has stated that it recognizes
these disparities and has taken steps to address them.
In order to better meet the mortgage and home
improvement credit needs of its community, Comerica has introduced several credit products specifically appropriate to low- and moderate-income borrowers in Grand Rapids. These include home
improvement and home equity loans for land contract holders, fixed rate term home equity loans, and
a secured credit card.21 Comerica has also liberalized
loan underwriting standards applicable to conventional mortgage products for low- and moderateincome borrowers.22
For the foregoing reasons, and based upon all of
the facts of record, the Board concludes that the
records of performance under the CRA of Comerica
and its subsidiary banks, including steps taken by
Comerica to enhance its record of performance under
the CRA, are consistent with approval of these
applications. Accordingly, the Board concludes that
convenience and needs considerations are consistent
with approval.23
20. In the "Report on Loan Discrimination" submitted to Congress
by the Board on October 13, 1989 pursuant to section 1220 of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (the "Report"), the Board generally reviewed various public
studies of mortgage lending in Atlanta, Cleveland, Detroit and Boston.
The Report noted that, while these studies appeared to indicate that
disparities existed in home mortgage lending between minority and
non-minority areas, they did not draw definitive conclusions about the
existence or extent of racial discrimination in mortgage lending and
did not account for certain factors other than discrimination in lending
that might account for these disparities—including differences in
demand for mortgage loans, differences in the types of mortgage
products offered by depository and nondepository institutions, and
the tendency of nondepository lenders to dominate the minority
mortgage loan market.
21. In 1989, Comerica made 23 home improvement or home equity
loans totalling $312,000 in the central city of Grand Rapids identified
by the Protestant. In the first six months of 1990, Comerica has made
approximately the same number and amount of such loans in the
central city (24 for $299,000) as it made in all of 1989.
22. In 1989, Comerica made 27 loans totalling $2.3 million in the
central city of Grand Rapids defined by the Protestant, an increase of
$1 million or 87 percent over Comerica's lending in this area in 1988.
Comerica projects that in 1990, 34 loans totalling $1.7 million will be
made on properties located in the central city.
23. Protestant also has requested that the Board hold a public
hearing or meeting to assess further facts surrounding Bank's CRA
performance. Generally under the Board's rules, the Board may, in its
discretion, hold a public hearing or meeting on an application to clarify
factual issues related to the application and to provide an opportunity
for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25.(d).
The Board has carefully considered the Protestant's request for a
public meeting or hearing in this case. In the Board's view, the parties
have had ample opportunity to present submissions, and have submitted substantial written comments that have been considered by the
Board. In light of these facts, the Board has determined that a public
meeting or hearing is not necessary to clarify the factual record in
Comerica has also applied to acquire all the voting
shares of Plaza Realty, and through Plaza Realty
engage in arranging and brokering residential, commercial, and construction loans, and other extensions of credit. The Board 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 Comerica's acquisition of Plaza Realty 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 any significantly adverse effects, such
as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices. Accordingly, the Board has determined that the balance of the public interest factors it
must consider under section 4(c)(8) of the BHC 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. In granting this approval,
the Board has relied upon Comerica's commitments
and representations, and this approval is conditioned
upon Comerica obtaining all required State approvals.
The transactions 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 Chicago, acting pursuant to delegated authority. The determination as to the nonbanking activities
approved in this case is 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 3, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
these applications, or is otherwise warranted in this case. Accordingly, Protestant's request for a public meeting or hearing on these
applications is hereby denied.
Legal Developments
Firstar Corporation
Milwaukee, Wisconsin
Order Approving Acquisition of a Bank Holding
Company and Banking and Nonbanking Subsidiaries
135
Effective January 1, 1991, the Iowa regional interstate banking statute expressly authorizes regional
bank holding companies, defined as bank holding
companies located in the mid western region, to acquire Iowa banks or bank holding companies. 5
Firstar is located in a state within the designated
midwestern region, and thus is authorized to acquire
an Iowa bank.6 In light of the foregoing, the Board
believes that approval of the proposal is not barred
by the Douglas Amendment.7
Firstar operates 42 banking subsidiaries located in
Wisconsin, Minnesota, Illinois and Arizona. Firstar
is the largest banking organization in Wisconsin,
operating 26 subsidiary banks with total deposits of
approximately $5.5 billion, representing approximately 14.7 percent of the total deposits in commercial banks in the state. 8 BOI, which operates 12
banking subsidiaries in Iowa, is the second largest
banking organization in the state, controlling approximately $2.1 billion in deposits, representing approximately 7.7 percent of the total deposits in commercial banks in the state. Consummation of this
proposal would not result in an adverse effect on the
concentration of banking resources in Wisconsin or
Iowa.
Firstar
Corporation,
Milwaukee,
Wisconsin
("Firstar"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied for the Board's approval under
section 3(a)(3) of the BHC Act (12 U.S.C.
§ 1842(a)(3)) to acquire Banks of Iowa, Inc., Des
Moines, Iowa ("BOI"), and thereby indirectly acquire BOI's subsidiary banks.1 Firstar also has applied for the Board's approval under section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) to acquire
the nonbanking subsidiaries of BOI.2
Notice of the applications, affording interested
persons an opportunity to submit comments, has
been duly published (55 Federal Register 38,581
(1990)). 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.
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."3 Firstar's
home state is Wisconsin and BOI's home state is
Iowa. 4
Firstar does not compete directly with BOI in any
banking market. Accordingly, consummation of this
proposal would not result in a significantly adverse
effect on competition in any relevant banking market.
Consummation also would not result in a significantly
adverse effect on probable future competition in any
relevant banking market.
The financial and managerial resources and future
prospects of Firstar, BOI, and their subsidiary banks
1. BOI's subsidiary banks are: United Bank & Trust, Ames, Iowa;
First National Bank, Burlington, Iowa; Cedar Falls Trust & Savings
Bank, Cedar Falls, Iowa; Merchants National Bank of Cedar Rapids,
Cedar Rapids, Iowa; Council Bluffs Savings Bank, Council Bluff,
Iowa; First Bank, National Association, Davenport, Iowa; Valley
National Bank, Des Moines, Iowa; Central Trust and Savings Bank,
Eldridge, Iowa; Henry County Savings Bank, Mount Pleasant, Iowa;
Union Bank and Trust Company, Ottumwa, Iowa; and Montgomery
County National Bank of Red Oak, Red Oak, Iowa.
2. Firstar proposes to acquire the following nonbanking subsidiaries
of BOI, all located in Des Moines, Iowa: Banks of Iowa Credit
Corporation ("BICC") and through BICC engage in purchasing and
handling nonperforming loans; Banks of Iowa Capital Corporation
("BICAP") and through BICAP engage in asset liquidation; and
Banks of Iowa Computer Services, Inc. ("BICS") and through BICS
engage in providing data processing services and facilities for BOI, its
subsidiary banks and nonaffiliated financial institutions. These activities are authorized for bank holding companies pursuant to sections
225.25(b)(1) and (b)(7) of the Board's Regulation Y (12 C.F.R.
225.25(b)(1) and (b)(7)).
3. 12 U.S.C. § 1842(d).
4. 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.
5. Iowa Stat. Ann. §§ 524.1852 and 524.1851.9 (West 1990). "Midwestern region" means the states of Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. Iowa Stat. Ann. §§
524.1851.6. Iowa law also incorporates by reference the Douglas
Amendment's test for determining the state in which the regional bank
holding company is located. Iowa Stat. Ann. § 524.1851.10.
6. However, Iowa law prohibits acquisitions by regional bank
holding companies under the following circumstances:
(i) the acquiring regional bank holding company would have, in
the aggregate, more than 35 percent of the sum of the total time
and demand deposits in all state and national banks and savings
and loan associations located in Iowa;
(ii) all existing bank subsidiaries of the acquiring regional bank
holding company do not satisfy applicable capital requirements;
(iii) the acquiring regional bank holding company has not been in
existence for at least three years;
(iv) the Iowa bank holding company to be acquired has not been
in existence for at least three years; and
(v) each of the subsidiary banks of the Iowa bank holding
company to be acquired has not been in existence for at least five
years. Iowa Stat. Ann. §§ 524.1802.2 and 524.1855. In light of the
facts of record, the Board concludes that none of these circumstances prohibit the proposed transaction.
7. The Office of the Iowa Superintendent of Banking has indicated
that the proposed acquisition is authorized under Iowa law.
8. All banking data are as of December 31, 1989.
136
Federal Reserve Bulletin • February 1991
are consistent with approval. The Board also finds
that considerations relating to the convenience and
needs of the communities to be served are consistent
with approval.
Firstar has also applied, pursuant to section 4(c)(8)
of the BHC Act, to acquire three nonbanking subsidiaries of BOI, BICC, BICAP and BICS. The Board
has determined by regulation that each of these
activities is permissible for bank holding companies
under section 4(c)(8) of the BHC Act and Firstar
proposes to conduct these activities in accordance
with the Board's regulations.
In light of the facts of record, the Board concludes
that Firstar's acquisition of BICC, BICAP and BICS
would not significantly affect competition in any
relevant market. Furthermore, there is no evidence
in the record to indicate that consummation of this
proposal is likely to result in any significantly adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices. 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.
Based on the foregoing and other facts of record,
the Board has determined that the applications
should be, and hereby are, approved. This approval
is conditioned, however, upon Firstar obtaining all
required State approvals. 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
Chicago, pursuant to delegated authority. The determination as to Firstar's nonbanking activities is
subject to all of the conditions contained in the
Board's 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 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 14, 1990.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Kelley, LaWare, and Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Orders Issued Under Bank Merger Act
Plaza Merger Company
Miami, Florida
Plaza Bank of Miami
Miami, Florida
Order Approving Merger of Banks
Plaza Merger Company, Miami, Florida, has applied
under section 18(c) of the Federal Deposit Insurance
Act (12 U.S.C. § 1828(c)) (the "Bank Merger Act"),
to merge with and into Plaza Bank of Miami, Miami,
Florida ("Plaza Bank"), a state member bank.1 Plaza
Merger Company also has applied for membership in
the Federal Reserve System pending consummation of
the proposed merger.2
Notice of these applications, affording interested
persons an opportunity 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 transaction 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 merger application and all comments received in
light of the factors set forth in section 18(c) of the Bank
Merger Act.
Plaza Bank is one of the smaller commercial banking
organizations in Florida, controlling total deposits of
$46.8 million, representing less than one percent of
total deposits in commercial banks in the state.3 Plaza
Merger Company has been created solely to facilitate
the acquisition by its shareholders of all the voting
shares of Plaza Bank, and it is a shell non-operating
institution. The merger of Plaza Merger Company with
and into Plaza Bank will not have a significantly
adverse effect on competition or increase the concentration of banking resources in any relevant banking
market.
1. Plaza Bank will be the surviving bank, and will keep its name,
title, and charter. Plaza Bank, currently a state member bank, will
remain a member of the Federal Reserve System.
2. In connection with this transaction, the shareholders of Plaza
Merger Company have filed a notice under the Change in Bank
Control Act (12 U.S.C. § 1817(j)) to acquire 100 percent of the voting
shares of Plaza Bank (55 Federal Register 31,107 (1990)). The merger
and membership applications that are the subject of this Order have
been filed to facilitate these shareholders' acquisition of Plaza Bank.
Concurrently with this Order, the Board has determined not to
disapprove the Change in Bank Control Act notice filed by the Plaza
Merger Company shareholders.
3. Banking data are as of June 30, 1990.
Legal Developments
The financial and managerial resources of Plaza
Bank, and considerations relating to the convenience
and needs of the community to be served, are consistent with approval. Based upon the foregoing and
other considerations reflected in the record, the Board
believes that consummation of the transaction would
be consistent with the public interest.
Plaza Merger Company also has applied under section 9 of the Federal Reserve Act (12 U.S.C. § 321
et seq.) for membership in the Federal Reserve System
pending consummation of the contemplated merger.
The Board has considered the factors it is required to
consider when approving applications for membership
pursuant to section 9 of the Federal Reserve Act
(12 U.S.C. § 322) and finds those factors 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. This transaction shall not
be consummated before the thirtieth day following the
effective date of this Order, or later than three months
after the effective date of this Order, 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 19, 1990.
Voting for this action: Governors Seger, Angell, Kelley,
LaWare, and Mullins. Absent and not voting: Chairman
Greenspan.
JENNIFER J. JOHNSON
Associate
ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY,
ACT CFIRREA
137
Secretary of the Board
AND
ENFORCEMENT
ORDERS'')
Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and
the General Counsel 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.
Bank Holding Company
American Bancshares of
Arkansas, Inc.,
Charleston, Arkansas
Arvest Bank Group, Inc.,
Bentonville, Arkansas
BankAmerica Corporation,
San Francisco, California
Seafirst Corporation,
Seattle, Washington
BankAmerica Corporation,
San Francisco, California
Barnett Banks, Inc.,
Jacksonville, Florida
Acquired
Thrift
First America Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Albert Pike Branch)
First America Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Siloam Springs
Branch)
Benjamin Franklin
Federal Savings &
Loan Association,
Portland, Oregon
Frontier Savings
Association,
Las Vegas, Nevada
Haven Federal Savings
and Loan Association,
F.A.,
Winter Haven, Florida
Surviving
Bank(s)
Approval
Date
American State Bank,
Charleston,
Arkansas
December 7, 1990
First National Bank
of Siloam Springs,
Siloam Springs,
Arkansas
December 7, 1990
Seattle First
National Bank,
Seattle, Washington
December 28, 1990
Bank of America
Nevada,
Reno, Nevada
Barnett Bank of Polk
County,
Lakeland, Florida
December 14, 1990
December 7, 1990
138
Federal Reserve Bulletin • February 1991
FIRREA Orders—Continued
Bank Holding Company
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
Bright Financial Services, Inc.,
Flora, Indiana
Business Bank of America, Inc.,
Wichita, Kansas
Carolina First Corporation,
Greenville, South Carolina
Emprise Financial
Corp.—Hutchinson,
Wichita, Kansas
First Citizens BancShares, Inc.,
Raleigh, North Carolina
First Commercial Corporation,
Little Rock, Arkansas
Lafayette Bancorporation,
Lafayette, Indiana
Nebraska Bancorporation, Inc.,
Alliance, Nebraska
Ozark Bancshares,
Ozark, Arkansas
PNC Financial Corp.,
Pittsburgh, Pennsylvania
Acquired
Thrift
Surviving
Bank(s)
Approval
Date
Community Federal
Savings and Loan
Association,
St. Louis, Missouri
Hometown Federal
Savings Bank,
Delphi, Indiana
(Burlington, Delphi,
Lafay ette-Greenbu sh,
and Rossville Branches)
First Federal Savings
Bank of Kansas,
Wellington, Kansas
(Wichita Branch)
American Federal Bank,
F.S.B.,
Greenville, South
Carolina (2 Branches)
First Federal Savings
Bank of Kansas,
Wellington, Kansas
(Lindsborg Branch)
Mutual Savings and Loan
Association, Inc.,
Charlotte, North
Carolina
First America Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Russellville Branch)
Hometown Federal
Savings Bank,
Delphi, Indiana
(Brookston and
Lafayette-Teal Road
Branches)
FirsTier Savings Bank,
Omaha, Nebraska
The Boatmen's
National Bank of
St. Louis,
St. Louis, Missouri
Bright National Bank,
Flora, Indiana
December 14, 1990
Citizens Bank and
Trust Company,
Abilene, Kansas
December 14, 1990
Carolina First Bank,
Greenville, South
Carolina
December 28, 1990
Emprise Bank, N.A.,
Hutchinson,
Kansas
December 14, 1990
First-Citizens Bank &
Trust Company,
Raleigh, North
Carolina
First National Bank
of Russellville,
Russellville,
Arkansas
Lafayette Bank and
Trust Company,
Lafayette, Indiana
December 14, 1990
First America Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Ozark Branch)
First Federal Savings and
Loan Association of
Pittsburgh,
Pittsburgh,
Pennsylvania
December 14, 1990
December 7, 1990
December 14, 1990
Alliance National
Bank and Trust
Company,
Alliance, Nebraska
Bank of Ozark,
Ozark, Arkansas
December 14, 1990
Pittsburgh National
Bank,
Pittsburgh,
Pennsylvania
December 28, 1990
December 7, 1990
Legal Developments
139
FIRREA Orders—Continued
Simmons First National
Corporation,
Pine Bluff, Arkansas
St. Mary Holding Corporation,
Franklin, Louisiana
Tescott Bancshares, Inc.,
Tescott, Kansas
Vista Bancorporation,
Van Buren, Arkansas
West-Ark Bancshares, Inc.,
Clarksville, Arkansas
APPLICATIONS
APPROVED
Surviving
Bank(s)
Acquired
Thrift
Bank Holding Company
First America Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Bella Vista, Fort
Smith-South, Rogers
and Springdale
Branches)
Terrebonne Savings and
Loan Association,
Houma, Louisiana
First Federal Savings
Bank of Kansas,
Wellington, Kansas
(Salina Branch)
First America Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Van Buren and Alma
Branches)
First American Savings
Bank, F.S.B.,
Fort Smith, Arkansas
(Booneville Branch)
Approval
Date
Simmons First
National Bank,
Pine Bluff,
Arkansas
December 7, 1990
The St. Mary Bank &
Trust Co.,
Franklin, Louisiana
The Bank of Tescott,
Tescott, Kansas
December 7, 1990
December 14, 1990
Citizens Bank &
Trust Co.,
Van Buren,
Arkansas
December 7, 1990
Arkansas State Bank,
Clarksville,
Arkansas
December 7, 1990
UNDER BANK HOLDING COMPANY
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant(s)
Central Bancshares of the South, Inc.,
Birmingham, Alabama
Bank(s)
Plaza National Bank,
Dallas, Texas
^date^
December 20, 1990
140 Federal Reserve Bulletin • February 1991
Section 4
BankAmerica Corporation,
San Francisco, California
Barnett Banks, Inc.,
Jacksonville, Florida
First Commercial Corporation,
Little Rock, Arkansas
Provident Bancorp, Inc.,
Cincinnati, Ohio
Simmons First National Corporation,
Pine Bluff, Arkansas
U.S. Bancorp,
Portland, Oregon
APPLICATIONS
APPROVED
Effective
date
Bank(s)
Applicant(s)
BAN Interim Federal Savings Bank,
Las Vegas, Nevada
Barnett Federal Savings and Loan
Association, F.A.,
Winter Haven, Florida
First Commercial Savings and Loan,
Russellville, Arkansas
Suburban Federal Savings and Loan
Association,
Covington, Kentucky
Simmons First Federal Savings and
Loan Association,
Pine Bluff, Arkansas
Credco of Washington, Inc.,
Solana Beach, California
UNDER BANK HOLDING COMPANY
December 14, 1990
December 6, 1990
December 7, 1990
December 21, 1990
December 7, 1990
December 7, 1990
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.
Section 3
Applicant(s)
Arvada Bank Holding Company,
Arvada, Colorado
B & G Investment Company,
San Antonio, Texas
CBT Corporation, Inc.,
Big Timber, Montana
Chandler Bancshares, Inc.,
Chandler, Minnesota
Clear Lake Investors, Inc.,
Clear Lake, Iowa
Community Trust Financial
Services Corporation,
Hiram, Georgia
First Bancorp of Durango, Inc.,
Durango, Colorado
Reserve
Bank
Bank(s)
The First National Bank
of Arvada,
Arvada, Colorado
First State Bank,
Bandera, Texas
Citizens Bank and Trust
Company,
Big Timer, Montana
State Bank of Chandler,
Chandler, Minnesota
Clear Lake Bank and
Trust Company,
Clear Lake, Iowa
Community Trust Bank,
Hiram, Georgia
First National Bank of
Durango,
Durango, Colorado
Effective
date
Kansas City
November 30, 1990
Dallas
November 30, 1990
Minneapolis
November 29, 1990
Minneapolis
November 29, 1990
Chicago
December 18, 1990
Atlanta
November 26, 1990
Kansas City
November 28, 1990
Legal Developments
141
Section 3—Continued
Applicant(s)
First Belleville Bancshares, Inc.,
Belleville, Kansas
First Commerce Bancshares,
Inc.,
Lincoln, Nebraska
Stuart Family Partnership,
Lincoln, Nebraska
Catherine Stuart Schmoker
Family Partnership,
Lincoln, Nebraska
James Stuart, Jr. Family
Partnership,
Lincoln, Nebraska
The Scott Stuart Family
Partnership,
Lincoln, Nebraska
First Michigan Bank
Corporation,
Holland, Michigan
First National BancShares, Inc.,
Williston, North Dakota
First of Searcy, Inc.,
Searcy, Arkansas
First State Bancshares, Inc.,
Farmington, Missouri
Fourth Financial Corporation,
Wichita, Kansas
FSB Bancorp, Inc.,
Pound, Wisconsin
Geneva State Company,
Geneva, Nebraska
Glasgow Bancshares
Corporation,
Glasgow, Kentucky
Harleysville National
Corporation,
Harleysville, Pennsylvania
Johnson Heritage Bancorp, Ltd.
Racine, Wisconsin
Bank(s)
Reserve
Bank
Effective
date
Scandia State Bank,
Scandia, Kansas
First National McCook
Company,
McCook, Nebraska
Kansas City
December 19, 1990
Kansas City
December 14, 1990
Maynard-Allen State
Bank,
Portland, Michigan
First National Bank &
Trust Co. of Williston,
Willi ston, North Dakota
Citizens Bancshares of
Beebe, Inc.,
Beebe, Arkansas
First State Bank of St.
Francois County,
Bonne Terre, Missouri
American State Bank and
Trust Company,
Great Bend, Kansas
Farmers State Bank
of Pound,
Pound, Wisconsin
The Geneva State Bank,
Geneva, Nebraska
Bowling Green Bank &
Trust Company,
National Association,
Bowling Green,
Kentucky
Citizens National Bank
of Lansford,
Lansford, Pennsylvania
Biltmore Bank Corp.,
Phoenix, Arizona
Chicago
November 23, 1990
Minneapolis
December 12, 1990
St. Louis
November 30, 1990
St. Louis
November 29, 1990
Kansas City
November 30, 1990
Chicago
December 7, 1990
Kansas City
December 13, 1990
St. Louis
November 28, 1990
Philadelphia
November 27, 1990
Chicago
November 27, 1990
142 Federal Reserve Bulletin • February 1991
Section 3—Continued
Applicant(s)
Jones Holding Company, Ltd.,
Albany, Texas
Key Centurion Bancshares, Inc.,
Charleston, West Virginia
Keystone Financial, Inc.,
Harrisburg, Pennsylvania
Krause Financial, Inc.,
Winnebago, Minnesota
Mascouten Bancorp, Inc.,
Beardstown, Illinois
Morton Financial Corporation,
Morton, Texas
Mountaineer Bankshares of West
Virginia, Inc.,
Martinsburg, West Virginia
Peotone Bancorp, Inc.,
Peotone, Illinois
Terrapin Bancorp, Inc.,
Elizabeth, Illinois
Philippine National Bank,
Manila, Philippines
Pinnacle Banc Group, Inc.,
Oak Brook, Illinois
SCB Financial Corporation,
Smith Center, Kansas
Scott County Bancorp, Inc.,
Winchester, Illinois
SNB Financial Corporation,
Summerville, South Carolina
South Florida Bank Holding
Corporation,
Fort Myers, Florida
Reserve
Bank
Bank(s)
Effective
date
Albany Bancshares, Inc.,
Albany, Texas
First National Bank of
Albany,
Albany, Texas
Spectrum Financial
Corporation,
Wheeling, West
Virginia
Ambassador Bank of
the Commonwealth
(In Organization),
Allentown,
Pennsylvania
First National Bank in
Winnebago,
Winnebago, Minnesota
The First National Bank
of Beardstown,
Beardstown, Illinois
South Plains National
Bank,
Levelland, Texas
The First National Bank
of Cameron,
Cameron, West Virginia
Founders Bancorp, Inc.,
Scottsdale, Arizona
Dallas
December 14, 1990
Richmond
December 13, 1990
Philadelphia
November 28, 1990
Minneapolis
November 26, 1990
Chicago
November 30, 1990
Dallas
November 30, 1990
Richmond
December 18, 1990
Chicago
December 18, 1990
Century Holding
Corporation,
San Francisco,
California
The Berwyn National
Bank,
Berwyn, Illinois
Lull and Rush Agency,
Lebanon, Kansas
Founders Bancorp, Inc.,
Scottsdale, Arizona
Summerville National
Bank,
Summerville, South
Carolina
South Florida Bank,
Fort Myers, Florida
San Francisco
November 19, 1990
Chicago
December 14, 1990
Kansas City
November 30, 1990
St. Louis
December 18, 1990
Richmond
December 7, 1990
Atlanta
November 21, 1990
Legal Developments
143
Section 3—Continued
Applicant(s)
Sterling Bancorp,
Baltimore, Maryland
Sun Financial Corporation,
Earth City, Missouri
Valley Bancorporation,
Appleton, Wisconsin
Waterford Bancshares, Inc.,
Waterford, Wisconsin
Wells Fargo and Company,
San Francisco, California
Reserve
Bank
Bank(s)
Sterling Bank & Trust
Company,
Baltimore, Maryland
E Corporation,
Earth City, Missouri
Exchange State Bank of
LaCrosse,
LaCrosse, Wisconsin
Waterford Bank,
Waterford, Wisconsin
Citizens Holdings,
Anaheim, California
Effective
date
Richmond
November 27, 1990
St. Louis
December 18, 1990
Chicago
November 30, 1990
Chicago
November 28, 1990
San Francisco
November 30, 1990
Section 4
Applicant(s)
Banque Nationale de Paris,
Paris, France
Caisse Nationale de Credit
Agricole, S.A.,
Paris, France
NCNB Corporation,
Charlotte, North Carolina
Nebraska Bancorporation, Inc.
Alliance, Nebraska
TSB Bancorp, Inc.,
Woodland, Georgia
Valley National Bancorp,
Wayne, New Jersey
Nonbanking
Activity/Company
BAII Capital Markets,
Inc.,
New York, New York
Locasuez America, Inc.,
New York, New York
NCNB Life Insurance
Company,
Dallas, Texas
NCNB Texas Life
Insurance Company,
Dallas, Texas
ANB Savings Bank,
F.S.B.,
Alliance, Nebraska
Georgia Home Lending
Corporation,
Peachtree City, Georgia
Mayflower Financial
Corporation,
Livingston, New Jersey
Reserve
Bank
Effective
date
San Francisco
December 7, 1990
Chicago
November 23, 1990
Richmond
December 20, 1990
Kansas City
December 14, 1990
Atlanta
November 21, 1990
New York
December 14, 1990
144 Federal Reserve Bulletin • February 1991
Sections 3 and 4
Nonbanking
Activity/Company
Applicant(s)
Johnson International Bancorp,
Ltd.,
Racine, Wisconsin
APPLICATIONS
APPROVED
Johnson Heritage
Bancorp, Ltd.,
Racine, Wisconsin
Johnson Heritage Trust
Company,
Racine, Wisconsin
UNDER BANK MERGER
Reserve
Bank
Chicago
Effective
date
November 27, 1990
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(s)
American Trust and Savings,
Dubuque, Iowa
Bank of Lakeview,
Lakeview, Michigan
The Ohio Bank,
Findlay, Ohio
PENDING CASES INVOLVING
GOVERNORS
Midland Savings Bank,
FSB,
Des Moines, Iowa
Morley Branch of
Independent Bank West Michigan,
Rockford, Michigan
The Citizens Community
Bank,
Mt. Blanchard, Ohio
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.
State of Illinois v. Board of Governors, No. 90-C-6863
(N.D. Illinois, filed November 27, 1990). Action
seeking to restrain the Board from providing state
examination materials in response to a Congressional subpoena. On December 12, 1990, the court
issued a temporary restraining order preventing the
Board and the Chicago Reserve Bank from providing documents relating to the state examination in
response to the subpoena.
Reserve
Bank
Bank(s)
Effective
date
Chicago
December 14, 1990
Chicago
November 30, 1990
Cleveland
November 29, 1990
Citicorp v. Board of Governors, No. 90-4124 (2d
Circuit, filed October 4, 1990). Petition for review of
Board order requiring Citicorp to terminate certain
insurance activities conducted pursuant to Delaware
law by an indirect nonbank subsidiary. The Delaware Bankers Association and the State of Delaware
have intervened on behalf of petitioners, and insurance trade associations have intervened on behalf of
the Board in the action.
Stanley v. Board of Governors, No. 90-3183 (7th
Circuit, filed October 3, 1990). Petition for review of
Board order imposing civil money penalties on five
former bank holding company directors.
Sibille v. Federal Reserve Bank of New York and
Board of Governors, No. 90-CIV-5898 (S.D. New
York, filed September 12, 1990). Appeal of denial of
Freedom of Information Act request.
Legal Developments
Kuhns v. Board of Governors, No. 90-1398 (D.C. Cir.,
filed July 30, 1990). Petition for review of Board
order denying request for attorney's fees pursuant
to Equal Access to Justice Act. Oral argument is
scheduled for February 15, 1991.
May v. Board of Governors, No. 90-1316 (D.C. Cir.,
filed July 27, 1990). Appeal of District Court order
dismissing plaintiffs action under Freedom of Information and Privacy Acts. Board's motion for summary affirmance filed October 12, 1990.
Burke v. Board of Governors, No. 90-9509 (10th
Circuit, filed February 27, 1990). Petition for review
of Board orders assessing civil money penalties and
issuing orders of prohibition.
BancTEXAS Group, Inc. v. Board of Governors, No.
CA 3-90-0236-R (N.D. Texas, filed February 2,
1990). Suit for preliminary injunction enjoining the
Board from enforcing a temporary order to cease
and desist requiring injection of capital into plaintiffs subsidiary banks under the Board's source of
strength doctrine. District court granted preliminary
injunction on June 5, 1990, in light of MCorp v.
Board of Governors, 900 F.2d 852 (5th Cir. 1990).
Rutledge v. Board of Governors, No. 90-7599 (11th
Cir., filed August 21, 1990). Appeal of district court
grant of summary judgment for defendants in tort
suit challenging Board and Reserve Bank supervisory actions. Board's brief filed November 27, 1990.
Kaimowitz v. Board of Governors, No. 90-3067 (11th
Cir., filed January 23, 1990). Petition for review of
Board order dated December 22, 1989, approving
application by First Union Corporation to acquire
Florida National Banks. Petitioner objects to approval on Community Reinvestment Act grounds.
Babcock and Brown Holdings, Inc. 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. Awaiting scheduling of oral argument.
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
First State Bank of Maple Park
Maple Park, Illinois
The Federal Reserve Board announced on December 27, 1990, the issuance of Cease and Desist Orders
against the First State Bank of Maple Park, Maple
145
Consumers Union of U.S., Inc. v. Board of Governors, No. 90-5186 (D.C. Cir., filed June 29, 1990).
Appeal of District Court decision upholding amendments to Regulation Z implementing the Home
Equity Loan Consumer Protection Act. Oral argument scheduled for February 20, 1991; the Board's
brief was filed December 14, 1990.
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. Oral argument was held
on October 11, 1990. On December 10, the Justice
Department filed a brief on behalf of the Board and
the Office of the Comptroller of the Currency in
response to a request from the court regarding an
issue in the case.
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 a bank holding company now in bankruptcy. On May 15, 1990, the Fifth
Circuit vacated the district court's order enjoining
the Board from proceeding with enforcement actions based on section 23A of the Federal Reserve
Act, but upheld the district court's order enjoining
such actions based on the Board's source-ofstrength doctrine. 900 F.2d 852 (5th Cir. 1990). On
December 10, the Solicitor General filed a petition
for certiorari in the Supreme Court on behalf of the
Board, and MCorp filed a cross-petition for certiorari.
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, 900 F.2d 852 (5th Cir. 1990).
White v. Board of Governors, No. CU-S-88-623-RDF
(D. Nev., filed July 29, 1988). Age discrimination
complaint. Board's motion to dismiss or for summary judgment pending.
Park, Illinois, and Bruce Madden and Joe A. Pruess,
institution-affiliated parties of the First State Bank of
Maple Park, Maple Park, Illinois.
Nathaniel L. Singleton
New York, New York
The Federal Reserve Board announced on December 6, 1990, the issuance of an Order of Prohibition
146
Federal Reserve Bulletin • February 1991
against Nathaniel L. Singleton, a former officer of the
Manufacturers Hanover Trust Company, New York,
New York.
WRITTEN AGREEMENTS
RESERVE
BANKS
APPROVED BY
FEDERAL
Smyrna Bank & Trust Co.
Smyrna, Georgia
The Federal Reserve Board announced on December 28, 1990, the execution of a Written Agreement
between the Federal Reserve Bank of Atlanta, the
Commissioner of the Department of Banking and
Finance of the State of Georgia, and the Smyrna Bank
& Trust Co., Smyrna, Georgia.
Citizens First Bancorp, Inc.
Glen Rock, N e w Jersey
U B A F Arab American Bank
N e w York, N e w York
The Federal Reserve Board announced on December 28, 1990, the execution of a Written Agreement
between the Federal Reserve Bank of New York and
Citizens First Bancorp, Inc., Glen Rock, New Jersey.
The Federal Reserve Board announced on December 28, 1990, the execution of a Written Agreement
between the Federal Reserve Bank of New York and
the UBAF Arab American Bank, New York, New
York.
A1
Financial and Business Statistics
WEEKLY REPORTING COMMERCIAL BANKS
CONTENTS
Domestic Financial
Statistics
MONEY STOCK AND BANK CREDIT
A3
A4
A5
A6
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
POLICY INSTRUMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY AND CREDIT AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities-All commercial banks
COMMERCIAL BANKING INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals, partnerships,
and corporations
FINANCIAL MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market-Selected statistics
A26 Selected financial institutions —Selected assets
and liabilities
FEDERAL FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U. S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers —Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues-State and local
governments and corporations
A35 Open-end investment companies - Net sales
and asset position
A35 Corporate profits and their distribution
A35 Total nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies-Assets and
liabilities and business credit
2
Federal Reserve Bulletin • February 1991
Domestic Financial Statistics — Continued
REAL ESTATE
A37 Mortgage markets
A3 8 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
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 STATES
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 BYNONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A65 Liabilities to unaffiliated foreigners
A66 Claims on unaffiliated foreigners
Domestic Nonfinancial
Statistics
SECURITIES HOLDINGS AND TRANSACTIONS
SELECTED 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
International
Statistics
A67 Foreign transactions in securities
A68 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE RATES
A69 Discount rates of foreign central banks
A69 Foreign short-term interest rates
A70 Foreign exchange rates
All Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
SUMMARY STATISTICS
SPECIAL TABLES
A55
A56
A56
A56
U.S. international transactions-Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
All
Assets and liabilities of commercial banks,
June 30, 1990
A78 Assets and liabilities of U.S. branches and agencies
of foreign banks, September 30, 1990
Money Stock and Bank Credit
A3
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Annual rates of change, seasonally adjusted in percent 1
1989
1990
1990
Monetary and credit aggregates
Q4
Ql
Q2
Q3
July
Aug.
Sept.
Oct.
Nov.
5.1
5.0
7.2
4.0
2.4
2.5
-3.9
8.5
-1.4
-.9
-1.0
7.0
-1.4
-1.5
2.0
8.8
-8.2
-10.1
-5.8
6.4
8.6
8.6
5.2
13.1
6.7
6.0
13.0
14.6
-9.4
-8.3
-5.2
6.9
3.4
1.0
7.1
4.5
5.1
7.1
2.0
3.1
7.3
4.8
6.4
2.9
2.7
6.1
3.5
3.2
1.1
1.1
6.9'
4.1
3.1
1.7'
2.6'
7.4'
-.6
1.9
1.3'
2.6'
7.8'
10.2'
6.4
4.6'
3.1'
8.6'
9.1'
5.3'
.8'
6.5'
6.7'
-3.1'
.1'
-1.3'
-1.5
5.1
3.8
-1.4
-1.7
n.a.
n.a.
7.7
-16.6
6.9
-10.4
3.1
-7.2'
2.8
-4.3'
2.7
-1.1'
5.2
-2.6'
4.0'
-18.C
1.2'
-7.6'
-3.1
-3.1
7.2
12.3
11.3
2.7
9.5
9.1
7.8
-1.1
5.1
10.6
12.0
-2.7
3.9
9.4
15.3
-.8'
3.7
8.8
18.9
5.4'
1.2
12.0
6.5
-10.2
4.9
4.5
8.2
-13.9
7.9
1.3'
20.4'
-7.7
-.6
1.6
3.5
-.9
.2
4.7
-2.5
-28.6
1.3
5.7
-3.3
-24.7
.5
2.6
-7.1
-30.2'
-2.3
-10.4
-12.8'
-31.3'
-.5
-12.6
-15.3
-35.6'
-1.1
-5.5
-4.1
-29.3'
-6.5
1.8
-7.7'
-26.3
-13.7
-10.1
-18.3'
-37.4'
-5.0
.9
-5.9
-39.6
Money market mutual funds
20 General purpose and broker-dealer
21 Institution-only
29.1
3.3
19.8
10.2
1.3
11.7
13.1
21.9
11.9
17.9
32.3
56.2
21.4
22.1
9.8
38.2
-4.9
3.0
Debt components4
22 Federal
23 Nonfederal
10.4'
6.4
6.8
6.<y
9.7'
6.1 r
14.3r
5.3'
13.8'
6.0'
18.6'
5.5'
11.1'
5.3'
6.2
4.8
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 y
11 In M3 only 6
12
13
14
15
16
17
18
19
components
Time and savings deposits
Commercial banks
Savings
MMDAs
Small-denomination time
Large-denomination time •
Thrift institutions
Savings
MMDAs
Small-denomination time 7
Large-denomination time 8
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 regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, money market
deposit accounts (MMDAs), savings and small-denomination time deposits
(time deposits—including retail RPs—in amounts of less than $100,000), and
balances in both taxable and tax-exempt general purpose and broker-dealer
money market mutual funds. Excludes individual retirement accounts (IRA)
and Keogh balances at depository institutions and money market funds. Also
excludes all balances held by U.S. 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 all depository institutions, term Eurodollars held by U.S. residents at foreign branches of U.S. banks worldwide and at all
n.a.
n.a.
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. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
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.
6. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents,
and 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. 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.
8. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
9. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
A4
DomesticNonfinancialStatistics • February 1991
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
1990
1990
Factors
Sept.
Oct.
Nov.
Oct. 17
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
285,966
284,920
288,202
284,709
283,846
284,370
288,154
287,417
287,829
288,500
233,704
2,797
234,588
1,050
238,788
2,405
234,224
1,451
234,623
0
234,880
0
238,926
1,274
238,618
784
238,323
3,719
238,368
3,799
6,377
930
0
6,366
284
0
6,343
163
0
6,377
365
0
6,362
0
0
6,343
0
0
6,343
121
0
6,343
121
0
6,343
146
0
6,343
232
0
240
419
5
752
40,742
11,064
8,518
20,198
62
331
18
704
41,517
11,061
8,566
20,254
43
163
25
482
39,791
11,060
10,018
20,321
44
333
15
580
41,320
11,062
8,518
20,251
27
318
20
914
41,582
11,061
8,518
20,265
104
295
31
665
42,052
11,060
8,732
20,279
40
212
24
654
40,560
11,060
10,018
20,302
86
177
25
502
40,762
11,060
10,018
20,314
7
147
24
365
38,757
11,059
10,018
20,325
51
133
25
328
39,221
11,059
10,018
20,337
272,891
525
274,662
529
278,216
552
275,467
525
274,829
530
274,533
536
275,712
548
277,697
551
278,922
556
280,094
555
6,358
258
5,544
250
5,543
250
5,505
241
4,931
255
6,274
249
6,519
245
5,471
313
5,375
229
4,894
213
2,017
279
2,024
309
1,948
240
2,274
259
1,945
225
2,039
524
2,019
245
1,884
227
1,929
254
1,960
238
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities 1 ' 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions 2
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks
9,905
9,375
9,380
9,332
9,162
9,346
10,164
9,103
9,014
9,228
33,513
32,108
33,472
30,936
31,812
30,940
34,081
33,562
32,952
32,732
End-of-month figures
Wednesday figures
1990
1990
Sept.
Oct.
Nov.
Oct. 17
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
284,364
288,586
291,580
285,482
281,627
288,586
286,140
293,685
286,528
290,979
234,373
0
237,763
0
242,633
2,352
233,484
2,532
232,764
0
237,763
0
237,943
0
238,423
5,490
238,258
2,519
238,849
5,167
6,377
0
0
6,343
0
0
6,342
270
0
6,377
737
0
6,343
0
0
6,343
0
0
6,343
0
0
6,343
846
0
6,343
91
0
6,342
453
0
77
423
5
1,832
41,277
11,063
8,518
20,227
297
262
33
918
42,972
11,060
10,018
20,279
97
7
26
486
39,367
11,059
10,018
20,348
49
323
16
785
41,177
11,061
8,518
20,251
23
314
27
401
41,755
11,061
8,518
20,265
297
262
33
918
42,972
11,060
10,018
20,279
6
198
22
1,001
40,627
11,060
10,018
20,302
407
163
28
1,084
40,902
11,059
10,018
20,314
8
138
22
215
38,934
11,059
10,018
20,325
29
128
26
433
39,551
11,059
10,018
20,337
271,905
527
275,043
544
279,507
552
275,292
530
274,779
535
275,043
544
276,392
551
278,525
556
279,991
555
280,137
552
7,638
360
7,607
297
5,495
264
6,244
201
5,547
283
7,607
297
5,9%
236
5,334
198
3,272
215
4,742
242
1,942
374
2,039
1,777
1,935
213
2,274
302
1,945
202
2,039
1,777
2,019
224
1,884
234
1,929
210
1,960
229
9,606
9,995
9,515
9,015
8,917
9,995
8,902
8,818
8,832
9,082
31,820
32,642
35,525
31,452
29,263
32,642
33,200
39,526
32,925
35,448
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
34
35
36
U.S. government securities 1, 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
Treasury
39
40
Foreign
41
Service-related balances and
adjustments
42
Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks
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. Beginning with the May 1990 Bulletin, this table has been revised to
correspond with the H.4.1 statistical release.
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
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash4
Surplus vault cash 5
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
1987
1988
1989
1990
Dec.
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
37,691
26,675
24,449
2,226
62,141
61,094
1,046
777
93
483
37,837
28,204
25,909
2,295
63,746
62,699
1,047
1,716
130
1,244
35,436
29,812
27,374
2,439
62,810
61,888
922
265
84
20
32,771
29,812
27,461
2,351
60,232
59,269
962
1,335
244
875
33,878
29,632
27,318
2,314
61,197
60,423
774
881
311
346
32,946
30,457
27,9%
2,460
60,943
60,081
862
757
389
280
32,448
30,843
28,280
2,563
60,728
59,860
868
927
430
127
33,303
30,622
28,149
2,473
61,452
60,544
909
624
418
6
32,127r
31,516
28,925
2,591
61,052r
60,206
847r
410
335
18
33,399
31,086
28,662
2,424
62,061
61,098
963
230
162
24
Biweekly averages of daily figures for weeks ending
1990
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4 ,
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 8
Aug. 8
Aug. 22
Sept. 5
Sept. 19
Oct. 3
Oct. 17
Oct. 31
Nov. 14
Nov. 28
Dec. 12
32,389
30,597
27,974
2,623
60,363
59,599
764
908
429
419
32,463
31,379
28,815
2,565
61,277
60,367
910
1,124
432
38
32,477
30,229
27,720
2,509
60,197
59,304
893
638
430
8
34,316
30.291
27,976
2,315
62.292
61,546
746
705
410
5
32,389
31,222
28,565
2,657
60,954
59,832
1,122
516
424
9
32,833
31,673
29,171
2,502
62,004
61,021
984
401
345
13
31,365'"
31,422
28,756
2,666
60,12r
59,471
65(y
397
307
26
33,821
30,653
28,293
2,361
62,114
61,132
982
282
195
25
32,865
31,633
29,124
2,510
61,989
61,005
984
193
140
25
34,174
30,294
28,025
2,269
62,199
61,510
689
130
87
25
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
and includes other off-balance sheet "as-of" adjustments.
3. Total "lagged" vault cash held by those depository institutions currently
subject to reserve requirements. 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. All vault cash held during the lagged computation period by "bound"
institutions (i.e., those whose required reserves exceed their vault cash) plus the
amount of vault cash applied during the maintenance period by "nonbound"
institutions (i.e., those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
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 1991
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Banks1
Averages of daily figures, in millions of dollars
1990, week ending Monday 2
Maturity and source
1
2
3
4
5
6
7
8
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
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
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 3
Aug. 27
Sept. 3
Sept. 10
Sept. 17
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Oct. 22
84,057
19,697
87,664
19,572
95,172
17,839
91,246
18,103
79,956
17,796
81,974
16,572
91,217
15,376
86,843
17,561
78,536
18,933
39,306
16,386
36,237
17,206
38,524
17,452
38,249
17,425
37,308
16,585
31,985
16,960
36,441
19,050
37,361
19,576
34,698
19,784
17,044
25,459
18,639
24,590
16,370
22,600
14,524
23,224
16,336
21,774
15,586
19,072
19,495
20,207
18,854
21,599
16,492
22,747
32,102
14,649
33,258
14,612
33,378
13,833
32,726
13,415
31,776
12,863
29,621
13,021
31,139
12,308
32,559
12,002
31,762
12,526
48,340
15,970
51,861
16,310
52,564
17,741
51,336
17,243
46,590
17,230
49,163
14,620
50,017
15,420
47,434
15,690
45,415
16,937
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.
2. Beginning with the August Bulletin data appearing are the most current
available. To obtain data from May 1, 1989, through April 16, 1990, contact the
Division of Applications Development and Statistical Services, Financial Statement Reports Section, (202) 452-3349.
3. 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
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
Extended credit 2
Adjustment credit
and
Seasonal credit
After 30 days of borrowing 3
First 30 days of borrowing
On
1/2/91
Effective
date
Previous
rate
On
1/2/91
Effective
date
Previous
rate
On
1/2/91
Effective
date
Previous
rate
6 Vi
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
7
6 Vi
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
7
8.05
12/27/90
12/27/90
12/27/90
12/27/90
12/27/90
12/27/90
8. 15
6'/>
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
7
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
12/19/90
6 16
7
8.05
12/27/90
12/27/90
12/27/90
12/27/90
12/27/90
12/27/90
Effective date
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
12/13/90
8. 15
Range of rates for adjustment credit in recent years 4
Effective 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
6-616
616
6V1-I
1
1-1 Vi
IV4
73/4
8
8 - 8 Vi
m
m-WA
9Vi
F.R.
Bank
of
N.Y.
6
616
m
1
1
71/4
71/4
73/4
8
816
m
9 Vi
9V2
10
10
10-10Vi
10 Vi
10^-11
11
11-12
12
11
11
12
12
12-13
13
12-13
12
11-12
11
13
13
13
12
11
11
10 1 6
1016
Effective date
F.R.
Bank
of
N.Y.
Effectiv
Range (or
level)—
All F.R.
Banks
—July 28
1980-—July
29
Sept. 26
Nov. 17
Dec. 5
10-11
10
11
12
12-13
10
10
11
12
13
1984—Apr.
9
13
Nov. 71
76
Dec. ?4
816-9
9
816-9
816
8
9
9
1981-—May
—May
13-14
14
13-14
13
12
14
14
13
13
12
1985—May 20
74
716-8
IVi
7
10
Apr. 71
July 11
Aug. 71
??
1-1 Vi
1
6V2-I
6
516-6
5V6
7
7
616
6
516.
5V6
1987—Sept. 4
11
51/6-6
6
6
6
9
11
6-616
616
6V2
6V2
1989—Feb. ?4
77
616-7
7
1
1
In effect Jan 2,
616
Nov.
Dec.
5
8
2
6
4
1982--- J u l y
20
23
2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
Aug.
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 l/i 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
1116-12
1116
11-1 \Vi
11
1116
1116
11
11
1016
1016
10-1016
10
916-10
9!6
9-9V2
9
816-9
m~9
8W
10
10
9V2
9Vi
9
9
9
816
816
1986—Mar.
1988—Aug.
IVi
m
816
8
716
616
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 1991
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval 2
Net transaction
Depository institution requirements
after implementation of the
Monetary Control Act
Percent of
deposits
Effective date
3
12
12/18/90
12/18/90
0
12/27/90
0
12/27/90
accounts3,4
1. Reserve requirements in effect on Jan. 31, 1991. 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 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); and (2) net other transaction
accounts. The exemption applies only to 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).
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. 18,
1990 for institutions reporting quarterly and Dec. 25, 1990 for institutions
reporting weekly, the amount was increased from $40.4 million to $41.1 million.
5. The reserve requirements on nonpersonal time deposits with an original
maturity of less than 1-1/2 years were reduced from 3 percent to 1-1/2 percent on
the maintenance period that began December 13, 1990, and to zero for the
maintenance period that began December 27, 1990, for institutions that report
weekly. The reserve requirement on nonpersonal time deposits with an original
maturity of 1-1/2 years or more has been zero since October 6, 1983.
6. For institutions that report quarterly, the reserves on nonpersonal time
deposits with an original maturity of less than 1-1/2 years were reduced from 3
percent to zero on January 17, 1991.
7. The reserve requirements on Euroccurrency liabilities were reduced from 3
percent to zero in the same manner and on the same dates as were the reserves on
nonpersonal time deposits with an original maturity of less than 1-1/2 years (see
notes 5 and 6).
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1990
Type of transaction
1987
1989
1988
Apr.
May
June
July
Aug.
Sept.
Oct.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
?
4
5
6
7
8
9
Treasury bills
Gross purchases
Exchange
Redemptions
Others within 1 year
Gross purchases
Maturity shift
Exchange
Redemptions
1 to 5 years
Gross purchases
18,983
6,051
239,740
9,029
8,223
587
241,876
2,200
14,284
12,818
231,211
12,730
5,796
0
17,286
0
3,365
0
22,894
0
1,732
0
16,279
0
287
0
16,159
0
4,264
68
21,912
0
631
0
19,041
0
846
0
19,271
0
3,659
300
21,504
-20,388
70
2,176
0
23,854
-24,588
0
327
0
28,848
-25,783
500
0
0
993
-4,304
0
0
0
4,387
-2,771
0
50
0
1,314
0
0
0
0
1,321
-3,577
0
0
0
3,235
-4,550
0
0
0
1,010
0
0
0
0
1,934
0
0
5,485
800
-17,720
22,515
1,436
490
-25,534
23,250
100
0
-739
4,081
0
0
-3,607
2,521
0
0
-1,314
0
0
0
-1,234
3,577
0
0
-2,188
4,200
0
0
-1,010
0
0
0
-1,677
0
13
Maturity shift
Exchange
10,231
452
-17,975
18,938
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
2,441
0
-3,529
950
1,579
175
-5,946
1,797
287
29
-2,231
1,934
0
0
-254
223
0
0
-530
0
0
0
0
0
0
0
-87
0
0
0
-697
0
0
0
0
0
0
0
-256
0
18
19
70
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,858
0
0
500
1,398
0
-188
275
284
0
-1,086
600
0
0
0
0
0
0
-250
250
0
0
0
0
0
0
0
0
0
0
-350
350
0
0
0
0
0
0
0
0
37,170
6,803
9,099
18,863
1,562
2,200
16,617
13,337
13,230
5,896
0
0
3,365
0
0
1,782
0
0
287
0
0
4,264
68
0
631
0
0
846
0
0
Matched transactions
?S
26 Gross purchases
950,923
950,935
1,168,484
1,168,142
1,323,480
1,326,542
97,970
98,643
121,596
121,218
107,896
110,042
95,144
95,787
113,647
110,635
120,036
120,280
117,247
122,873
Repurchase
agreements2
77 Gross purchases
28 Gross sales
314,621
324,666
152,613
151,497
129,518
132,688
6,409
7,832
3,959
3,959
11,242
11,242
13,106
11,447
26,700
23,764
31,996
34,932
19,844
19,844
11,234
15,872
-10,055
5,146
2,987
3,928
2,590
4,121
-2,060
6,472
0
0
276
0
0
587
0
0
442
0
0
78
0
0
0
0
0
0
0
0
33
0
0
37
0
0
0
0
0
34
Repurchase
agreements2
33 Gross purchases
34 Gross sales
80,353
81,350
57,259
56,471
38,835
40,411
2,595
3,104
2,314
2,314
3,221
3,221
4,697
4,137
7,130
5,944
7,394
8,580
5,913
5,913
35 Net change in federal agency obligations
-1,274
198
-2,018
-587
0
0
527
1,149
-1,186
-34
36 Total net change in System Open Market
Account
9,961
16,070
-12,073
4,559
2,987
3,928
3,117
5,270
-3,247
6,438
10
FL
1?
All maturities
72 Gross purchases
?3 Gross sales
24 Redemptions
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
DomesticNonfinancialStatistics • February 1991
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Account
Oct. 31
Nov. 7
Wednesday
End of month
1990
1990
Nov. 14
Nov. 21
Nov. 28
Sept. 28
Oct. 31
Nov. 30
Consolidated condition statement
ASSETS
11,060
10,018
551
11,060
10,018
551
11,059
10,018
552
11,059
10,018
548
11,059
10,018
533
11,063
8,518
533
11,060
10,018
551
11,059
10,018
532
591
0
0
0
6,343
0
225
0
0
0
6,343
0
598
0
0
0
6,343
846
168
0
0
0
6,343
91
183
0
0
0
6,342
453
505
0
0
0
6,377
0
591
0
0
0
6,343
0
131
0
0
0
6,342
270
115,218
91,582
30,963
237,763
0
237,763
115,399
91,582
30,963
237,943
237,943
115,878
91,582
30,963
238,423
5,490
243,913
115,713
91,382
31,163
238,258
2,519
240,777
116,204
91,482
31,163
238,849
5,167
244,016
111,828
91,582
30,963
234,373
0
234,373
115,218
91,582
30,963
237,763
0
237,763
119,763
91,707
31,163
242,633
2,352
244,985
244,697
244,511
251,699
247,379
250,994
241,255
244,697
251,728
5,992
853
6,398
853
9,743
856
6,033
860
5,565
860
8,358
844
5,992
853
6,235
862
35,669
6,227
33,206
6,583
33,240
6,866
33,359
4,684
33,360
5,160
34,454
6,006
35,669
6,227
33,579
4,859
315,067
313,180
324,033
313,940
317,550
311,031
315,067
318,871
255,860
257,191
259,319
260,768
260,885
252,738
255,860
260,243
34,546
7,607
297
1,777
35,116
5,996
236
224
41,712
5,334
198
234
34,943
3,272
215
210
37,570
4,742
242
229
33,834
7,638
360
374
34,546
7,607
297
1,777
37,359
5,495
264
213
44,226
41,572
47,478
38,641
42,784
42,206
44,226
43,331
4,986
5,515
8,417
5,698
3,569
3,680
3,609
3,587
4,799
3,850
5,783
4,021
6,481
3,569
5,783
3,807
308,641
307,958
318,824
308,694
312,318
305,446
308,641
313,163
2,402
2,243
1,781
2,402
2,243
577
2,402
2,243
564
2,407
2,243
595
2,407
2,243
582
2,399
2,243
943
2,402
2,243
1,781
2,404
2,243
1,062
33 Total liabilities and capital accounts
315,067
313,180
324,033
313,940
317,550
311,031
315,067
318,871
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
239,933
237,884
241,046
240,993
244,045
234,926
240,993
246,728
1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
1 Bought outright
8
Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
Bonds
11
12
Total bought outright 2
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other
20 Total assets
0
LIABILITIES
71 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
24
Foreign—Official accounts
25
Other
26 Total deposits
77 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
U.S. Treasury and agency securities
41
300,234
44,375
255,860
301,4%
44,304
257,191
302,487
43,168
259,319
303,438
42,669
260,768
304,187
43,302
260,885
296,914
44,176
252,738
300,234
44,375
255,860
304,591
44,349
260,243
11,060
10,018
0
234,782
11,060
10,018
0
236,113
11,059
10,018
0
238,242
11,059
10,018
0
239,691
11,059
10,018
0
239,808
11,063
8,518
0
239,808
11,060
10,018
0
234,782
11,059
10,018
0
239,166
42 Total collateral
255,860
257,191
259,319
260,768
260,885
252,738
255,860
260,243
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
1.19 FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holding
Millions of dollars
Type and maturity groupings
Wednesday
End of month
1990
1990
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
Sept. 28
Oct. 31
Nov. 30
Within 15 days
16 days to 90 days
91 days to 1 year
429
379
51
0
225
71
154
0
598
484
114
0
168
156
12
0
183
175
8
0
505
284
221
0
429
379
51
0
131
80
50
0
5 Acceptances—Total
6
Within 15 days
16 days to 90 days
7
91 days to 1 year
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
237,763
13,747
54,970
71,899
59,484
13,126
24,536
237,943
8,334
58,614
73,848
59,484
13,126
24,536
238,428
14,628
52.572
74,081
59,484
13,126
24,536
240,777
13,622
57,145
71,703
60,349
13,221
24,736
244,015
13,450
57,634
74,625
60,349
13,221
24,736
234,373
7,099
60,033
69,835
59,700
13,170
24,536
237,763
13,747
54,970
71,899
59,484
13,126
24,536
242,633
3,841
63,974
77,288
59,572
13,221
24,736
6,343
99
705
1,710
2,516
1,125
188
6,343
0
819
1,695
2,516
1,125
188
6,344
94
780
1,698
2,557
1,025
188
6,434
445
519
1,698
2,557
1,025
188
6,795
714
604
1,668
2,595
1,025
188
6,377
200
525
1,709
2,634
1,120
188
6,343
99
705
1,710
2,516
1,125
188
6,342
261
604
1,668
2,595
1,025
188
2
3
4
9 U.S. Treasury securities—Total
10 Within 15 days 1
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
16 Federal agency obligations—Total
17 Within 15 days 1
18
16 days to 90 days
19 91 days to 1 year
21
Over 5 years to 10 years
1. 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 because of rounding,
A12
DomesticNonfinancialStatistics • February 1991
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1990
Item
1986
Dec.
1987
Dec.
1988
Dec.
1989
Dec.
Apr.
2
3
4
5
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 6
7
8
9
10
Nonborrowed reserves
^
Nonborrowed reserves plus extended credit
Required reserves 8
Monetary base 9
July
Aug.
58.02
58.59
60.59
60.03
60.28
59.78
59.73
59.32
59.75
57.20
57.50
56.65
241.43
57.82
58.30
57.55
258.06
58.88
60.12
59.55
275.24
59.77
59.79
59.11
284.95
58.65
60.05
59.38
293.54
58.45
59.32
58.82
294.40
58.85
59.20
58.96
296.28
58.56
58.84
58.46
297.86
58.82
58.95
58.88
301.12
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
6 Total reserves7
June
Sept.
Oct.
60.08
59.61
Nov.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1 Total reserves3
May
59.46 59.20
59.46 59.22
59.17 58.76
304.78 306.55r
59.78
59.55
59.57
58.81
307.70
Not seasonally adjusted
59.46
60.07
62.22
61.67
61.05
58.74
59.61
59.47
59.21
58.64
58.94
58.09
245.17
59.30
59.78
59.03
262.00
60.50
61.75
61.17
279.54
61.40
61.42
60.75
289.45
59.42
60.82
60.15
293.35
57.41
58.28
57.78
293.52
58.73
59.07
58.84
297.37
58.71
58.99
58.61
299.90
58.29
58.41
58.34
301.46
59.24r
60.04
59.19 58.83r
59.20
58.85
58.90 58.40
303.56 305.00
59.81
59.83
59.08
308.73
59.81
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 10
11 Total reserves11
12
13
14
15
16
17
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 12
Excess reserves 13
Borrowings from the Federal Reserve
59.56
62.14
63.75
62.81
62.51
60.23
61.20
60.94
60.73
58.73
59.04
58.19
247.62
1.37
.83
61.36
61.85
61.09
266.06
1.05
.78
62.03
63.27
62.70
283.00
1.05
1.72
62.54
62.56
61.89
292.55
.92
.27
60.88
62.29
61.62
296.87
.90
1.63
58.90
59.77
59.27
297.03
.96
1.33
60.32
60.66
60.42
300.99
.77
.88
60.19
60.47
60.08
303.39
.86
.76
59.80
59.93
59.86
304.99
.87
.93
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 reflect adjustments for discontinuities or "breaks" associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted,
break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. 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.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves, the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
61.05
62.06
60.83 60.64
60.83 60.66
60.54
60.21
307.21 308.85
.91
.85
.62
.41
61.45
61.83
61.86
61.10
312.71
.96
.23
8. To adjust required reserves for discontinuities because of regulatory changes
in reserve requirements, a multiplicative procedure is used to estimate what
required reserves would have been in past periods had current reserve requirements been in effect. Break-adjusted required reserves includes required reserves
against transactions deposits and nonpersonal time and savings deposits (but not
reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all those weekly reporters whose vault cash
exceeds their required reserves) the break-adjusted difference between current
vault cash and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. After the introduction of CRR, currency and vault cash
figures are measured over the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1990
Itenr
1986
Dec.
1987
Dec.
1988
Dec.
1989
Dec.
Aug.
Sept.'
Oct.'
Nov.
822.1
3,319.8
4,096.1
4,960.2
10,313.6
820.0
3,320.2
4,091.6
4,954.0
10,357.8
822.6
3,316.4
4,085.8
n.a.
n.a.
Seasonally adjusted
724.7
2,814.2
3,494.5
4,135.4
7,636.2
750.4
2,913.2
3,678.7
4,338.9
8,345.1
787.5
3,072.4
3,918.3
4,676.1
9,107.6
180.6
6.5
302.1
235.5
196.7
7.0
287.0
259.7
211.8
7.5
287.0
281.3
221.9
7.4
279.7
285.7
238.4
8.0
277.9
291.6
241.5
8.3
279.7
292.6
244.0
8.4
276.8
290.9
244.8
8.4
277.2
292.2
2,089.6
680.3
2,162.8
765.5
2,284.9
845.9
2,426.8
822.6
2,489.5
788.1'
2,497.7
776.3
2,500.2
771.4
2,493.8
769.4
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts
14 Small time deposits'
15 Large time deposits 10,
155.8
377.7
366.3
289.8
178.3
356.4
388.1
326.9
192.0
350.2
447.5
368.2
188.5
351.5
528.6
401.5
195.8
374.6
571.2
396.3'
196.6
376.0
575.1
391.7
197.9
376.4
584.9
389.2
197.8
376.9
586.6
388.9
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits'
Large time deposits'"
214.3
193.3
489.9
150.0
236.6
167.4
529.7
161.9
235.9
150.1
583.5
172.9
220.5
132.2
613.7
156.8
220.5
131.0
580.2
127.8'
219.3
131.2
576.5
125.0
216.8
130.1
567.7
121.1
215.9
130.2
564.9
117.1
Money market mutual funds
70 General purpose and broker-dealer
21 Institution-only
208.7
83.8
222.0
89.0
240.9
87.1
312.4
102.3
335.9
114.0
341.9
116.1
344.7
119.8
343.3
120.1
1,806.1
5,830.1
1,957.9
6,387.2
2,114.2
6,993.4
2,268. 1'
7,522.3'
2,438.9'
7,817.8'
2,461.5
7,852.1
2,474.3
7,883.5
n.a.
n.a.
1
?
4
5
Ml components
Currency 3
7 Travelers checks
8 Demand deposits
9 Other checkable deposits 6
Nontransactions
in
11 In M3 only8
components
i?
n
16
17
18
19
Debt components
??
23 Nonfederal debt
794.8
3,221.6
4,044.3
4,881.2
9,790.4'
815.9'
3,305.3
4,093.4'
4,933.6'
10,256.6'
Not seasonally adjusted
74
75
76
71
28
79
30
31
32
Ml components
Currency
Travelers checks 4
Demand deposits
Other checkable deposits 6
Nontransactions
31
34 In M3 only 8
components
740.5
2,826.5
3,508.8
4,151.4
7,619.0
766.4
2,925.6
3,692.7
4,355.2
8,329.1
804.5
3,085.2
3,932.5
4,692.9
9,093.2
812.1
3,234.5
4,058.3
4,898.9
9,775.9'
813.7
3,305.4
4,093.6'
4,928.1'
10,203.2'
818.1
3,312.3
4,092.2
4,954.8
10,263.3
816.7
3,316.8
4,090.9
4,953.7
10,319.0
825.1
3,320.5
4,095.6
n.a.
n.a.
183.0
6.0
314.0
237.5
199.3
6.5
298.6
262.0
214.8
6.9
298.9
283.8
225.3
6.9
291.6
288.4
239.2
8.9
276.5
289.0
240.8
8.8
277.9
290.6
242.6
8.4
277.6
288.0
245.6
8.0
280.0
291.5
2,086.0
682.3
2,159.2
767.0
2,280.7
847.3
2,422.4
823.8
2,491.7
788.2'
2,494.3
779.9
2,500.1
774.1
2,495.5
775.1
35
36
37
38
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts
Small time deposits'
Large time deposits 10 '
154.4
379.8
366.1
289.2
176.9
359.0
387.3
325.8
190.6
353.2
446.0
366.9
187.2
355.0
526.4
399.8
196.3
372.9
572.2
397.0r
196.0
374.4
575.6
393.1
197.9
375.2
584.4
390.4
197.7
379.1
585.1
389.3
39
40
41
42
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits'
Large time deposits 10
212.7
192.9
489.8
150.7
234.9
167.5
529.1
162.9
234.2
150.6
582.4
174.2
219.0
132.8
612.3
158.3
221.0
131.2
580.6
127.2'
219.0
131.2
575.5
125.2
217.7
130.3
567.8
122.3
215.8
130.7
565.0
118.8
Money market mutual funds
43 General purpose and broker-dealer
44 Institution-only
208.0
84.4
221.5
89.6
240.5
87.6
312.2
102.9
334.9
113.2
340.9
113.2
342.9
117.0
344.3
121.3
Repurchase agreements and Eurodollars
45 Overnight
46
82.3
164.3
83.2
197.1
83.3
227.7
77.4
178.0
82.7
166.7'
81.6
163.8
83.9
160.9
77.8
162.3
1,803.9
5,815.1
1,955.6
6,373.5
2,111.8
6,981.4
2,422.4'
7,780.8'
2,444.5
7,818.8
2,459.3
7,859.7
Debt components
47 Federal debt
48 Nonfederal debt
For notes see following page.
2,265.9'
7,509.9'
n.a.
n.a.
A14
DomesticNonfinancialStatistics • February 1991
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 Money 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 ail 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 depository institutions ana overnight Eurodollars issued to U.S.
residents by foreign branches of U.S. banks worldwide, money market deposit
accounts (MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both
taxable and tax-exempt general purpose and broker-dealer money market mutual
funds. Excludes individual retirement accounts (IRA) and Keogh balances at
depository institutions and money market funds. Also excludes all balances held
by U.S. commercial banks, money market funds (general purpose and brokerdealer), 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 all depository 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. Data are derived from 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, term Eurodollars of U.S. residents,
and money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and Eurodollars held
by institution-only money market funds.
9. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
1.22
A15
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1990
Bank group, or type of customer
1987
1988
1989
May
Apr.
July
Aug.
Sept.
Seasonally adjusted
DEBITS TO
Demand deposits
All insured banks
1
2
Major New York City banks
3
Other banks
4 ATS-NOW accounts 4
5 Savings deposits 5
June
217.116.2
104.496.3
112,619.8
2,402.7
526.5
226,888.4
107,547.3
119,341.2
2,757.7
579.2
272.793.1
121.894.2
150,898.9
3,501.8
636.6
274,403.6
124,988.2
149,415.4
3,993.3
583.1
273,186.2
123,314.6
149,871.6
4,165.6
601.1
301,578.2
131,042.7
170,535.5
4,004.2
566.6
301,589.9
130,590.7
170,999.2
4,163.7
608.8
309.441.0
133,491.9
175.949.1
4,478.9
592.0'
287,546.5
131,920.3
155,626.2
3,763.3
543.7
612.1
2,670.6
357.0
13.8
3.1
641.2
2,903.5
376.8
14.7
3.1
781.0
3,401.6
481.5
18.3
3.5
780.8
3,551.5
472.5
19.7
3.0
791.9
3,590.9
482.5
20.5
3.2
866.2
3,742.8
544.6
19.5
2.9
865.5
3,838.3
543.8
20.5
3.1
888.6
3,777.5
562.3
21.9
3.1
826.2
3,827.6
496.3
18.3
2.8
DEPOSIT TURNOVER
Demand deposits 3
All insured banks
6
7
Major New York City banks
8
Other banks
9 ATS-NOW accounts 4
10 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
16 Savings deposits
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
271,957.3
122,241.8
149,715.5
3.496.5
2.790.6
635.8
276.077.5
125.750.6
150,326.9
4,285.8
2,848.4
646.8
282,747.7
125,532.4
157,215.3
4,066.2
3,016.4
592.6
302,181.4
130,332.7
171,848.6
4,098.2
2,992.1
567.8
302,826.4
130,100.1
172,726.3
4,108.9
3,033.8
640.3
321,168.8
137.460.3
183.708.4
4.274.0
3.171.1
598.1
263,881.4
121,343.4
142,538.0
3,868.9
2,786.5
538.5
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
779.0
3,415.4
477.8
18.3
8.3
3.5
784.4
3,564.6
474.7
20.5
7.9
3.4
834.7
3,796.3
514.3
20.3
8.4
3.1
866.5
3,797.6
546.6
20.1
8.2
2.9
864.8
3,777.5
547.1
20.4
8.3
3.3
938.3
4,109.2
594.8
21.1
8.6
3.1
760.6
3,607.3
454.9
19.0
7.5
2.8
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
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 1991
1.23 LOANS AND SECURITIES
All Commercial Banks1
Billions of dollars; averages of Wednesday figures
1989
1990
Category
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
Commercial and industrial
5
6
Bankers acceptances h e l d 3 . . .
7
Other commercial and
industrial
8
U.S. addressees 4 .
9
Non-U.S. addressees
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables
19 All other loans
2,588.8
2,594.4
2,614.3
2,635.6
2,646.7
2,653.8
2,669.4
2,684.7
2,707.8
2,708.5
2,710.9
2,714.2
3%. 1
180.8
2,011.9
641.6
7.4
404.7
180.4
2,009.3
637.9
7.3
414.5
180.5
2,019.4
638.8
7.6
422.3
180.1
2,033.2
644.4
7.6
427.3
180.0
2,039.4
649.0
7.5
430.6
178.3
2,045.0
648.6
7.6
438.5
177.9
2,053.0
651.6
7.9
440.6
177.8
2,066.4
651.7
7.6
441.3
179.2
2,087.3
653.1
7.3
447.1
179.4
2,082.0
651.6
7.7
451.6
176.9
2,082.5
649.5
7.6
452.0
175.2
2,087.0
652.4
7.9
634.2
628.8
5.4
761.1
375.8
38.8
630.6
623.1
7.6
765.9
378.3
39.3
631.2
625.4
5.8
774.7
379.5
40.0
636.8
630.6
6.2
379.9
37.1
641.5
635.5
6.0
786.9
378.8
36.1
641.0
636.4
4.5
794.6
379.8
34.8
643.7
638.8
4.9
800.1
378.4
35.3
644.2
641.6
2.6
808.0
378.3
38.8
645.7
643.2
2.5
811.9
380.1
46.0
643.9
641.1
2.8
814.7
381.1
43.1
641.9
638.8
3.1
820.7'
381.2
41.4
644.5
640.1
4.4
824.1
380.3
39.9
33.0
30.7
32.5
30.9
32.9
30.8
33.8
30.6
33.9
30.4
33.9
30.0
34.4
29.5
34.8
29.3
35.7
29.2
36.1
29.1
36.1
29.2
35.5
29.5
40.1
8.9
3.6
31.8
46.5
38.6
8.1
3.2
32.1
42.5
38.9
7.8
3.1
32.1
40.7
38.4
8.4
3.0
32.4
43.3
38.2
8.8
3.2
32.4
41.8
37.9
8.7
3.2
32.7
40.7
37.4
7.4
3.2
32.4
43.3
36.5'
7.0
3.2
32.8
46.(y
35^
8.0
3.2
32.9
51.4'
35.2'
7.9
3.2
32.9
47.1'
34.6'
8.9
3.1
33.3
44.5'
34.4
8.2
3.1
33.0
46.6
781.8
Not seasonally adjusted
20 Total loans and securities2
2,596.8
2,600.1
2,616.7
2,629.9
2,647.0
2,653.4
2,669.5
2,678.9
2,701.4
2,707.1
2,711.0
2,716.0
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
24
Commercial and industrial . . . . .
Bankers acceptances h e l d 3 . . .
25
Other commercial and
26
industrial
27
U.S. addressees 4
Non-U.S. addressees 4
28
Real estate
29
Individual
30
Security
31
32
Nonbank financial
institutions
Agricultural
33
34
State and political
subdivisions
Foreign banks
35
Foreign official institutions
36
37
Lease financing receivables . . . .
38
All other loans
397.2
181.8
2,017.9
641.6
7.5
406.4
180.9
2,012.8
636.4
7.4
419.0
180.3
2,017.3
639.5
7.7
423.8
179.7
2,026.4
646.0
7.4
427.2
179.4
2,040.4
653.3
7.3
429.6
177.7
2,046.1
652.7
7.5
435.6
177.2
2,056.7
654.0
7.8
438.1
176.4
2,064.4
652.1
7.3
442.1
179.3
2,080.0
650.6
7.4
446.1
179.6
2,081.4
647.7
7.8
448.6
177.7
2,084.7
647.1
7.8
452.1
176.2
2,087.7
649.6
8.0
634.0
628.8
5.2
761.9
380.3
37.9
629.1
624.1
4.9
766.0
381.8
37.8
631.8
627.0
4.8
772.1
378.7
39.5
638.6
633.9
4.7
779.1
376.6
38.1
645.9
641.3
4.6
784.9
376.0
38.5
645.2
640.6
4.6
793.5
377.3
35.3
646.2
641.8
4.4
800.0
376.7
37.4
644.8
640.3
4.5
808.7
376.7
38.8
643.1
638.7
4.5
813.6
380.3
45.3
639.9
635.3
4.6
816.9
383.0
42.1
639.3
634.6'
4.7'
822.1
382.3
40.5
641.7
636.7
5.0
826.0
381.7
38.6
34.1
30.6
33.2
30.4
32.5
29.9
33.0
29.5
33.7
29.5
33.9
29.7
34.7
29.8
34.9'
30.0
35.5
30.0
35.6
30.0
35.7
30.0
35.8
29.8
39.7
8.7
3.6
31.9
47.7
39.5
8.2
3.2
32.5
43.9
39.3
7.8
3.1
32.3
42.7
38.6
7.8
3.0
32.4
42.2
38.2
8.4
3.2
32.5
42.3
37.8
8.7
3.2
32.7
41.4
37.2
7.6
3.2
32.3
43.8
36.2
7.1
3.2
32.5
44^
35.7'
7.9
3.2
32.7
45.3'
35.2'
8.1
3.2
32.8
46.7'
34.6'
9.2
3.1
33.2
47.<r
34.2
8.3
3.1
33.0
47.5
1. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1990
1989
Source
Seasonally adjusted
1 Total nondeposit funds 2
—
2 Net balances due to related foreign offices 3 —
3 Borrowings from other than commercial banks
in United States
Domestically chartered banks
4
5
Foreign-related banks
Not seasonally adjusted
Total nondeposit funds 2
—
7 Net balances due to related foreign offices 3
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 5
n
Other 6
14 Foreign-related banks 6
Dec.
Jan.
Feb.
Mar.
Apr.
May'
June'
July'
Aug/
Sept/
Oct/
Nov.
257.3
7.4
258.1
10.9
267.6
14.7
271.4
17.4
267.8r
16.7'
269.6
24.6
271.2
14.9
282.4
16.9
283.4
16.9
281.5
19.4
290.8
28.4
292.8
28.6
249.9
200.4
49.4
247.2
196.9
50.4
252.9
201.4
51.5
254.0
198.4
55.6
251.l r
192.9
58.2r
245.0
187.8
57.3
256.2
197.8
58.5
265.5
203.4
62.0
266.6
202.8
63.8
262.1
198.6
63.5
262.4
197.1
65.3
264.2
196.1
68.2
250.7
9.7
-19.2
28.9
254.6
10.5
-14.5
25.0
270.8
14.3
-11.1
25.4
277.2
16.2
-11.5
27.7
270.6r
14.4
-10.6
25.0
278.2
26.4
-1.3
27.7
276.1
15.6
-6.1
21.7
277.9
14.9
-5.9
20.8
282.5
17.1
-3.5
20.5
277.7
20.1
-4.3
24.4
285.8
27.9
-1.0
28.9
290.7
29.5
.7
28.8
241.0
194.0
244.1
192.9
256.4
203.3
261.0
204.3
256.2r
197.0
251.7
193.6
260.5
199.5
263.0
200.5
265.5
202.3
257.6
195.5
257.9
194.1
261.2
196.2
191.5
2.5
47.0
190.3
2.7
51.2
199.6
3.7
53.1
199.8
4.5
56.8
193.3
3.7
59.2r
190.2
3.4
58.2
196.4
3.2
61.0
197.6
2.9
62.5
198.7
3.6
63.2
191.5
4.0
62.1
190.8
3.3
63.8
193.2
2.9
65.0
464.3
462.7
462.7
460.4
460.6
460.3
457.3
460.2
455.1
455.1
454.7
455.2
452.7
452.2
454.0
451.8
450.7
451.4
445.5
446.9
441.5
442.7
439.5
439.9
21.1
19.6
20.2
23.2
17.8
22.0
19.2
16.7
21.2
20.0
18.6
25.2
20.4
20.9
14.9
15.2
33.2
23.5
28.2
31.0
21.9
20.9
26.9
19.3
MEMO
15
16
17
18
Gross large time deposits
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
Seasonally adjusted
Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes 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 $1(X),000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-Ioan notes at commercial banks. Averages of daily data.
A18
DomesticNonfinancialStatistics • February 1991
Last-Wednesday-of-Month Series1
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars
1990
Account
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct/
Nov.
2,796.0
563.9
389.8
174.1
31.8
2,200.4
187.4
2,013.0
636.4
767.6
381.7
227.3
2,809.2
571.2
398.0
173.2
30.2
2,207.8
187.5
2,020.3
642.4
774.0
378.6
225.3
2,821.2
576.8
405.9
170.8
26.0
2,218.5
191.6
2,026.9
646.2
781.6
375.5
223.6
2,838.3
582.5
412.6
169.9
23.9
2,231.9
190.6
2,041.3
653.3
786.7
377.5
223.8
2,845.9
585.9
416.9
169.0
21.4
2,238.7
192.8
2,045.9
650.9
796.7
377.3
220.9
2,870.9
587.7
419.9
167.8
23.7
2,259.6
202.7
2,056.9
654.1
801.3
378.5
222.9
2,876.4
587.5
420.1
167.4
27.2
2,261.6
199.9
2,061.7
648.7
810.2
377.7
225.0
2,895.8
595.8
427.1
168.7
29.2
2,270.7
198.4
2,072.4
646.3
813.3
382.2
230.6
2,885.6
600.4
432.2
168.2
21.3
2,263.9
188.8
2,075.1
646.7
817.4
383.9
227.1
2,924.3
602.8
436.2
166.6
27.3
2,294.2
205.0
2,089.1
649.0
823.7
382.3
234.1
2,918.6
601.0
435.7
165.3
24.8
2,292.8
204.7
2,088.2
649.8
825.9
382.5
230.0
218.9
24.6
28.0
89.9
224.9
29.5
27.8
91.6
212.9
32.0
27.7
80.0
211.6
31.6
28.5
80.0
239.9
27.8
29.9
100.6
222.9
32.0
28.9
86.1
214.1
30.1
28.7
79.5
211.0
30.3
30.2
77.4
217.6
33.9
29.2
80.9
224.2
29.9
29.3
85.4
220.1
33.2
32.7
78.4
29.6
46.8
30.8
45.2
27.4
45.8
26.3
45.2
32.0
49.7
27.6
48.3
27.4
48.4
27.5
45.6
27.2
46.4
28.6
50.9
28.6
47.2
ALL COMMERCIAL BANKING
INSTITUTIONS 2
1
2
3
4
5
6
7
8
9
10
11
12
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
Mother
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
218.1
212.9
209.1
206.0
199.5
211.1
207.1
216.3
216.9
223.8
220.5
20 Total assets/total liabilities and capital
3,233.0
3,247.0
3,243.2
3,255.9
3,285.4
3,304.9
3,297.5
3,323.1
3,320.1
3,372.4
3,359.2
21
22
23
24
25
26
27
2,247.1
612.2
540.8
1,094.2
552.8
221.8
211.4
2,262.4
616.6
546.3
1,099.5
542.2
229.3
213.2
2,251.3
594.3
551.8
1,105.3
545.4
230.8
215.7
2,257.3
601.0
548.7
1,107.5
564.7
218.0
215.8
2,293.1
618.4
554.4
1,120.3
548.2
227.8
216.2
2,280.6
599.6
556.3
1,124.7
578.7
227.2
218.4
2,289.7
591.5
561.3
1,136.8
564.4
224.3
219.1
2,295.2
590.5
565.7
1,139.0
576.2
231.7
220.0
2,298.1
596.3
563.5
1,138.3
564.7
236.8
220.5
2,327.9
613.2
570.1
1,144.6
586.2
238.2
220.0
2,316.2
599.1
572.8
1,144.3
566.0
257.3
219.6
414.7
421.2
423.8
427.8
430.0
433.8
438.9
444.3
442.9
452.4
450.0
180.9
180.2
179.0
178.6
177.2
177.6
175.9
180.8
178.9
177.7
175.8
2,557.9
536.2
376.6
159.6
31.8
1,989.9
150.0
1,839.9
513.8
735.9
381.7
208.5
2,566.3
543.1
384.4
158.7
30.2
1,993.0
148.5
1,844.6
518.3
741.1
378.6
206.5
2,570.5
547.2
391.2
156.0
26.0
1,997.3
148.3
1,849.0
519.4
747.8
375.5
206.3
2,581.8
551.5
397.6
154.0
23.9
2,006.4
149.1
1,857.3
523.4
751.8
377.5
204.6
2,585.1
557.5
404.0
153.5
21.4
2,006.2
144.4
1,861.7
520.4
761.2
377.3
202.8
2,602.9
557.3
405.5
151.9
23.7
2,021.9
153.6
1,868.3
519.2
765.3
378.5
205.3
2,610.3
556.8
405.5
151.4
27.2
2,026.3
151.6
1,874.7
516.9
773.5
377.7
206.7
2,627.6
565.5
413.0
152.5
29.2
2,032.9
151.3
1,881.6
513.4
776.1
382.2
209.9
2,616.0
568.7
416.9
151.8
21.3
2,026.0
142.4
1,883.6
513.3
780.2
383.9
206.1
2,649.6
569.7
419.6
150.0
27.3
2,052.6
160.6
1,892.0
514.1
785.8
382.3
209.8
2,636.8
568.6
420.2
148.4
24.8
2,043.4
154.6
1,888.8
511.6
787.6
382.5
207.1
195.7
22.7
28.0
88.5
199.9
27.5
27.8
90.2
187.3
29.8
27.7
78.5
186.8
29.8
28.5
78.7
210.7
26.6
29.8
99.2
194.8
30.8
28.8
84.1
186.5
28.8
28.7
78.1
184.2
28.1
30.2
75.8
190.4
32.2
29.2
78.9
192.1
28.5
29.3
83.7
190.7
31.4
32.7
76.5
27.6
28.9
28.7
25.7
25.6
25.7
24.6
25.2
30.0
25.1
25.9
25.2
25.6
25.3
25.1
25.0
25.2
25.0
26.7
23.9
26.2
23.9
19 Other assets
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30 Loans and securities
31
Investment securities
32
U.S. government securities
33
Other
34 Trading account assets
Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
41
All other
42 Total cash assets
43
Reserves with Federal Reserve Banks.
44
Cash in vault
45
Cash items in process of collection . . .
Demand balances at U.S. depository
46
institutions
47
Other cash assets
143.6
140.2
136.4
133.8
136.3
141.8
138.4
144.3
149.1
151.7
153.0
49 Total assets/liabilities and capital
2,897.2
2,906.5
2,894.2
2,902.4
2,932.0
2,939.6
2,935.3
2,956.1
2,955.5
2,993.4
2,980.6
50
51
52
53
54
55
56
2,164.5
601.9
537.9
1,024.7
405.3
119.9
207.5
2,179.9
606.3
543.4
1,030.2
394.2
123.1
209.3
2,169.4
584.5
548.8
1,036.1
393.1
119.9
211.8
2,174.6
591.2
545.7
1,037.6
405.4
110.5
212.0
2,210.6
608.3
551.4
1,050.9
391.7
117.3
212.3
2,197.8
589.0
553.3
1,055.4
409.9
117.2
214.6
2,207.7
581.1
558.3
1,068.2
395.6
116.8
215.3
2,213.3
579.9
562.7
1,070.7
403.5
123.2
216.1
2,218.1
585.1
560.4
1,072.5
395.0
125.8
216.7
2,249.6
602.3
567.0
1,080.3
399.6
128.0
216.2
2,239.6
588.5
569.5
1,081.6
393.3
132.0
215.8
51.1
684.8
51.4
689.7
52.0
695.8
53.1
698.7
54.0
707.2
55.0
710.3
56.1
717.4
57.4
718.8
58.1
722.1
60.4
725.4
60.9
726.7
48 Other assets
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 BANKS 1
Millions of dollars, Wednesday figures
1990
Account
Oct. 10
1 Cash and balances due from depository institutions
...
2 Total loans, leases, and securities, net
3 U.S. Treasury and government agency
4
Trading account
5
Investment account
6
Mortgage-backed securities
All other maturing in
7
One year or less
8
Over one through five years
9
Over five years
10 Other securities
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 Federal funds sold 3
19
To commercial banks
20
To nonbank brokers and dealers in securities
21
Toothers
22 Other loans and leases, gross
23
Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions . . .
All other
Lease financing receivables
LESS: Unearned income . . . .
Loan and lease reserve 4
Other loans and leases, net
All other assets
47 Total assets
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
Nontransaction balances
Individuals, partnerships, arid 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 5
Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities) 6
MEMO
70
71
72
73
74
75
76
77
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less . .
Loans sold outright to affiliates—total 8
Commercial and industrial
Other
'
Nontransaction savings deposits (including M M D A s ) . . .
109,008
1,311,358'
Oct. 24
Oct. 31'
Nov. 7
Nov. 14
Nov. 21
Nov. 28
120,151
103,111
97,192'
106,680
98,474
124,953
106,130
107,613
1,305,240
1,309,663
1,301,088'
1,316,233
1,305,927
1,311,348
1,304,787
1,299,204
183,410'
17,595
165,815'
81,588'
184,346'
18,494
165,853'
81,428'
184,952'
18,718
166,234'
81,807'
182,603'
16,108
166,495'
82,126'
184,040
16,141
167,899
82,075
184,961
16,783
168,178
82,124
183,743
15,538
168,205
82,013
183,668
16,186
167,482
82,192
180,844
14,279
166,565
81,576
15,612
41,030
27,584'
61,667'
1,055
15,603
41,105
27,716'
61,372'
1,140
60,232'
31,800
3,784
28,016
28,432'
9,998
15,243
41,623
27,561'
60,996'
1,079
59,917'
31,751
3,773
27,979
28,165'
9,905
15,250
41,484
27,635'
60,949'
1,166
59,783'
31,675
3,795
27,880
28,108'
9,043
15,149
41,599
29,076
61,046
1,376
59,670
31,480
3,792
27,689
28,189
9,340
15,159
41,685
29,210
60,533
1,364
59,170
31,170
3,797
27,373
28,000
9,410
15,020
41,855
29,317
60,421
1,406
59,015
30,958
3,752
27,206
28,057
9,178
15,254
41,420
28,615
60,108
1,406
58,702
30,648
3,646
27,002
28,054
8,368
15,271
41,281
28,438
60,107
1,529
58,578
30,464
3,649
26,816
28,113
8,729
70,955
74,692
73,147
77,845
47,901
52,350
51,168
55,811
18,164
18,136
17,504
16,997
4,207
4,890
4,476
5,037
1,016,988' 1,015,627 1,018,761 1,017,252'
989,851'
991,332
989,580'
988,208
318,187'
318,505'
317,782'
316,951'
1,606
1,646
1,598
1,671
316,581'
316,136'
316,907'
315,28c
314,938'
315,376'
314,73c
313,890'
1,643'
1,531'
1,406
1,391'
80,832
58,287
17,947
4,599
1,021,008
993,614
319,538
1,574
317,964
316,406
1,558
74,018
50,220
18,586
5,212
1,017,118
989,776
319,682
1,520
318,162
316,700
1,462
77,276
55,293
17,663
4,320
1,020,866
993,458
318,953
1,488
317,464
315,821
1,643
72,837
50,154
18,131
4,552
1,019,986
992,632
318,888
1,338
317,549
316,090
1,460
71,300
48,111
19,054
4,134
1,018,332
991,005
317,473
1,384
316,089
314,669
1,421
60,612'
31,881
3,811
28,070
28,730'
10,185
381,372'
32,122
349,250'
173,70C
48,312'
20,907'
3,698
23,707
14,540
6,137
21,823'
1,400
23,790'
27,408
4,350
34,386
978,251'
143,003'
1,563,369
225,330'
179,819'
6,068
1,898
21,827'
6,187
753
8,777
81,621
755,127'
719,084'
28,217
1,020
6,013
794
297,385
120
8,065'
289,200'
99,044'
381,856'
32,285
349,572'
173,438'
49,820'
21,667'
4,374
23,779
13,944
6,140'
21,781'
1,483
22,793'
27,419
4,329
34,922
976,376
140,773
1,566,165
233,486'
185,454'
6,392
1,394
24,637
6,405
670
8,534
80,466
755,424'
719,05C
28,597
1,006
5,966
805
291,914
0
5,195'
286,718'
99,970'
,458,506
1,461,260
104,863
104,904
382,690'
32,854
349,836'
173,514'
50,987'
23,286'
4,336
23,365
14,008
6,151
21,797'
1,490
22,912'
27,429
4,310
35,333
979,118
137,608'
382,274'
32,559
349,716'
173,662'
50,59C
23,678'
3,847
23,065
13,898
6,166
21,647'
1,357
22,069'
27,400
4,302
35,410
977,539'
135,742'
382,756
32,695
350,060
173,631
51,743
23,097
4,555
24,090
14,407
6,127
21,743
1,310
22,359
27,394
4,249
35,785
980,974
140,046
383,308
32,676
350,632
172,654
50,644
22,576
3,993
24,076
12,958
6,065
21,611
1,352
21,501
27,342
4,232
35,881
977,005
139,382
384,187
32,803
351,384
172,754
51,623
22,947
4,378
24,298
14,020
6,046
21,676
1,431
22,768
27,408
4,224
35,910
980,731
139,846
384,923
32,864
352,059
172,993
51,320
23,636
4,159
23,524
13,062
5,930
21,555
1,492
22,470
27,354
4,214
35,965
979,807
141,796
383,925
32,939
350,986
173,364
51,260
23,744
4,208
23,308
14,020
5,858
21,415
1,402
22,288
27,326
4,196
35,911
978,224
143,368
1,550,381'
1,534,023'
1,562,959
1,543,784
1,576,148
1,552,714
1,550,185
221,772'
178,278'
6,003
1,382
21,875
5,763
749
7,722
79,176
755,012'
718,661'
28,447
1,011
6,087
807
289,362
0
11,878
277,485
100,891'
208,206'
168,271'
6,045
1,469
18,538'
5,218
662
8,004
77,582
754,187'
717,852'
28,507
1,015
6,010
802
289,006'
0
23,855'
265,151'
100,721'
224,812
179,827
6,844
2,117
20,547
6,069
565
8,842
79,396
755,116
718,860
28,352
1,018
6,086
799
295,929
179
23,601
272,150
103,011
213,880
173,796
5,825
1,427
18,678
5,668
648
7,839
80,723
756,352
720,373
28,476
1,009
6,056
439
287,438
0
9,345
278,093
100,993
234,321
188,752
5,757
1,593
23,771
6,024
538
7,886
79,712
756,440
720,510
28,471
1,003
6,007
450
300,180
227
9,558
290,395
100,736
221,678
178,123
7,201
2,070
19,568
5,769
590
8,356
79,698
754,987
718,959
28,642
1,014
5,925
447
288,497
0
13,132
275,366
103,750
217,214
173,928
6,427
1,038
19,915
5,335
638
9,934
78,354
753,989
717,988
28,675
1,019
5,862
445
290,571
0
16,243
274,328
105,434
1,446,214'
1,429,703'
1,458,265
1,439,386
1,471,389
1,448,610
1,445,562
104,695
104,397
104,759
104,104
104,623
1,271,176
1,019,033
206,728
15,224
278
152
125
290,208
1,267,456
1,017,776
206,049
15,104
263
140
123
289,582
104,167
104,319
,273,377' 1,271,657' 1,273,67C 1,269,222'
,018,115' 1,015,940' 1,017,818' 1,016,628'
208,432
206,618' ' 208,035'
207,296'
14,217
14,855
14,357
13,784
286
288
286
284
141
142
140
139
146
146
146
145
287,918'
289,107
289,384
290,426
1. Beginning Jan. 6, 1988, the "Large b a n k " reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated traAsfpr risk reserve.
5. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion
Oct. 17
1,274,883
1,020,457
208,544
15,483
280
138
142
288,629
1,273,245
1,018,341
208,196
15,421
277
136
140
290,268
1,273,243
1,019,901
207,538
15,376
281
150
131
291,347
or more on Dec. 31, 1977, see table 1.13.
6. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
8. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
DomesticNonfinancialStatistics • February 1991
1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN NEW YORK CITY1
Millions of dollars, Wednesday figures
1990
Account
Oct. 3
1
Cash balances due from depository institutions
2 Total loans, leases, and securities, net2
Securities
3 U.S. Treasury and government agency
4
Trading account 3
i
Investment account
6
Mortgage-backed securities 4
All other maturing in
/
One year or less
8
Over one through five years
9
Over five years
10 Other securities 3
11 Trading account 3
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 3
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Loans and leases
Federal funds sold
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net 6
All other assets
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
9
69 Residual (total assets minus total liabilities)
Oct. 10
Oct. 17
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
23,707
28,792
21,257
20,882
21,704
22,020
26,393
20,970
23,816
223,394
217,602
218,316
213,658
220,234
214,241
217,372
214,147
213,274
0
0
23,519
11,916
0
0
23,480
11,866
0
0
23,658
12,035
0
0
23,485
11,685
0
0
24,195
11,850
0
0
24,249
11,841
0
0
24,189
11,968
0
0
23,299
11,789
0
0
22,785
11,425
2,137
4,779
4,687
0
0
13,095
6,097
613
5,483
6,998
0
2,151
4,778
4,686
0
0
13,049
6,067
620
5,447
6,982
0
2,148
4,795
4,680
0
0
12,987
6,030
618
5,411
6,957
0
2,374
4,823
4,603
0
0
12,853
5,916
614
5,302
6,936
0
2,338
5,017
4,990
0
0
12,781
5,859
616
5,242
6,922
0
2,361
5,076
4,971
0
0
12,569
5,632
607
5,025
6,936
0
2,297
4,923
5,000
0
0
12,438
5,528
606
4,922
6,911
0
2,319
4,1%
4,995
0
0
12,234
5,307
592
4,715
6,927
0
2,335
4,034
4,990
0
0
12,160
5,254
597
4,658
6,905
0
24,177
16,194
6,168
1,815
177,926
172,188
57,068
148
56,920
56,209
711
62,354
4,329
58,024
19,878
17,340
6,340
2,884
8,116
4,737
164
4,398
314
5,936
5,738
1,844
13,478
162,604
60,862
18,621
11,227
5,908
1,486
178,388
172,633
56,716
141
56,575
55,971
604
62,465
4,334
58,130
20,004
18,848
6,927
3,563
8,358
4,380
150
4,395
402
5,272
5,754
1,833
14,102
162,452
61,171
19,262
12,161
6,094
1,006
178,362
172,618
56,837
161
56,676
56,045
630
62,613
4,344
58,270
19,940
18,554
6,929
3,462
8,163
4,413
164
4,311
406
5,379
5,744
1,834
14,119
162,409
58,652'
15,640
9,218
5,481
942
177,614
171,863
57,291
164
57,126
56,475
651
62,522
4,356
58,166
20,016
17,595
6,523
2,966
8,106
4,440
160
4,293
275
5,271
5,751
1,831
14,104
161,679
54,255'
19,082
13,450
5,136
496
180,168
174,436
58,210
153
58,056
57,430
626
62,369
4,364
58,005
19,969
18,572
6,438
3,642
8,492
5,284
153
4,343
199
5,336
5,732
1,810
14,183
164,176
56,300
16,102
9,289
5,792
1,021
177,349
171,628
57,715
145
57,571
56,961
609
62,498
4,359
58,139
19,956
17,566
5,818
3,098
8,649
4,327
169
4,318
232
4,845
5,722
1,810
14,217
161,322
56,490
17,323
11,743
4,970
609
179,504
173,760
58,052
138
57,914
57,169
745
62,626
4,363
58,263
20,013
17,917
5,741
3,323
8,852
4,952
168
4,337
308
5,386
5,744
1,809
14,273
163,422
56,951
16,022
9,403
5,912
706
178,682
172,930
57,837
141
57,6%
57,103
594
62,912
4,371
58,541
20,011
17,756
5,960
3,261
8,535
4,112
172
4,331
367
5,433
5,752
1,810
14,281
162,592
57,408
15,229
9,273
5,306
650
179,167
173,429
57,158
142
57,016
56,474
542
62,6%
4,372
58,325
19,886
18,228
6,5%
3,347
8,285
4,951
172
4,328
276
5,734
5,738
1,809
14,258
163,100
59,626
307,963
307,566
298,225'
288,796'
298,238
292,751
300,716
292,525
296,716
46,530
32,124
868
198
4,853
4,832
598
3,058
49,726
35,093
582
122
5,193
5,053
542
3,140
46,493
32,725
594
153
5,379
4,522
619
2,501
43,428
30,746
577
183
4,632
3,955
538
2,797
45,437
31,968
641
294
4,482
4,752
419
2,882
43,309
31,030
632
121
3,729
4,442
510
2,846
47,383
34,376
536
179
4,392
4,839
390
2,670
44,282
31,332
626
235
3,692
4,628
454
3,315
46,534
32,590
777
102
4,009
4,119
494
4,443
8,646
113,013
105,366
5,391
128
1,612
516
72,747
0
2,262
70,486
41,425
8,648
112,888
105,156
5,485
124
1,586
537
70,874
0
911
69,963
40,210
8,431
113,086
105,355
5,522
122
1,548
537
63,691
0
2,534
61,156
41,546'
8,278
112,095
104,268
5,630
119
1,546
532
58,722
0
5,486
53,236
41,332'
8,406
112,559
104,752
5,631
119
1,527
530
62,290
0
5,010
57,279
44,093
8,589
112,428
104,926
5,695
117
1,526
164
63,075
0
1,979
61,0%
40,220
8,528
113,004
105,448
5,753
112
1,523
167
66,637
0
2,074
64,563
40,048
8,598
112,350
104,749
5,916
112
1,404
170
59,714
0
2,489
57,224
42,603
8,376
112,076
104,444
5,980
118
1,362
170
61,164
0
3,158
58,006
43,764
282,362
282,346
273,247'
263,855'
272,785
267,623
275,601
267,548
271,914
25,601
25,219
24,978
24,941
25,452
25,128
25,115
24,977
24,802
216,182
179,569
35,699
1,746
215,384
178,855
35,626
1,764
215,179
178,534
36,222
1,846
213,852
177,514
35,328
1,862
216,338
179,362
35,893
1,791
215,162
178,344
35,415
2,051
215,969
179,342
35,244
2,235
214,874
179,341
34,950
2,386
213,472
178,527
34,817
2,191
MEMO
70
71
72
73
Total loans and leases (gross) and investments adjusted 2 ' 10
Total loans and leases (gross) adjusted 1
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 allocated transfer risk reserve.
FRASER
Digitized for
7. Includes trading account securities.
8. Includes federal funds purchased and securities sold under agreements to
repurchase.
9. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
10. Exclusive of loans and federal funds transactions with domestic commercial banks.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
1990
1 Cash and due from depository institutions . .
2 Total loans and securities
3 U.S. Treasury and government agency
securities
4 Other securities.
5 Federal funds sold 2
6
To commercial banks in the United States
7
To others
8 Other loans, gross
9
Commercial and industrial
10
Bankers acceptances and commercial
paper
11
All other
12
U.S. addressees
13
Non-U.S. addressees
14
Loans secured by real estate 3
15
To financial institutions
16
Commercial banks in the United States.
17
Banks in foreign countries
18
Nonbank financial institutions
19
To foreign governments and official
institutions
20
For purchasing and carrying securities . . .
21
All other 3
22 Other assets (claims on nonrelated parties) .
23 Net due from related institutions
24 Total assets
25
Deposits or credit balances due to other
than directly related institutions — .
26
Transaction accounts and credit balances 4
27
Individuals, partnerships, and
corporations
28
Other
29
Nontransaction accounts
30
Individuals, partnerships, and
corporations
31
Other
32
Borrowings from other than directly
related institutions
33
Federal funds purchased 6
34
From commercial banks in the
United States
35
From others
36
Other liabilities for borrowed money
37
To commercial banks in the
United States
38
To others
39 Other liabilities to nonrelated parties
40 Net due to related institutions
41 Total liabilities
Oct. 3
Oct. 10
Oct. 17'
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
14,691
159,203
15,098
162,092'
15,072
160,433
14,164
161,954
17,374
163,673
16,515
162,167
17,455
167,122
14,711
164,016
15.292
167,729
10,740
7,415
8,628
7,589
1,039
132,420
76,316'
10,869
7,372
10,405'
8,155
2,250'
133,446'
76,374'
10,961
7,332
8,125
5,505
2,620
134,015
76,270
11,061
7,235
8,425
5,331
3,094
135,233
76,920
11,296
7,480
7,600
4,334
3,266
137.297
77.665
11,752
7,599
4,304
2,267
2,037
138,512
77,877
12,068
7,626
9,174
6,449
2,725
138,254
78,198
11,157
7,618
6,078
4,471
1,607
139,163
78,940
11,161
7,639
8,905
6,418
2,487
140,024
79,544
2,577'
73,739'
72,355'
1,384
24,974
26,279'
2,558'
73,816'
72,424'
1,392
25,135
26,987'
19,588'
2,179
5,220
2,426
73,844
72,477
1,367
25,332
2,840
74,080
72,658
1,422
25,307
29,354
21,356
2,728
5,270
2,579
75,086
73.666
1,420
25,492
30,376
22,374
2,730
5,272
2,682
75,195
73,660
1,535
25,700
30,787
23,195
2,416
5,176
2,694
75,504
73,939
1,565
25,585
30,539
23,424
5,287
2,895
76,045
74,509
1,536
25,769
30,277
23,343
1,769
5,165
3,020
76,524
74,860
1,664
26,003
30,274
23.293
1.697
5.284
201
3,144'
1,506
30,708
10,165
214,767
207
3,287'
1,456
31,430
9,989
218,611
194
2,360
1,637
31,344
11.004
217,852
194
1,893
1,565
31,960
219,091
199
1,561
2,004
33,200
12,980
227,228
204
1,582
2,362
33,593
13,286
225,563
213
1,371
2,348
33,227
12,766
230,570
216
1,581
2,380
33,917
12,985
225,629
207
1,609
2,387
33.742
10,456
227,221
47,134'
4,260'
46,240'
4,429
46.005
4,297
45,559
4,128
45,527
4,054
45,359
3,913
45.048
3,999
44,904
4,313
44,701
4,405
2,868'
1,392'
42,874
2,932
1,497
41,811'
2,863
1,434
41,708
2,648
1,480
41,431
2,734
1,320
41,473
2,685
1,228
41,446
2,690
1,309
41.049
2,987
1,326
40,591
2,929
1,476
40,296
33,549
9,325
32,962
8,849'
32,861
8,847
32,145
9,286
32,040
9,433
31,902
9,544
31,566
9,483
31,195
9,396
30,961
9,335
104,904
53,347
108,607'
52,620'
108,372
50,847
113,640
53,611
118.298
55,695
116,939
52,248
117,215
52,394
116,206
44,106
110,249
44,281
27,516
25,831
51,557
25,505
27,115'
55,987
25.013
25,834
57,525
24,515
29,096
60,029
29,047
26,648
62,603
25,489
26,759
64,691
23,535
28,859
64,821
22,070
22,036
72,100
21,228
28,063
23,494
30,737'
31,992
214,767
29,388
26,599
31,747
32,017
31.014
26,511
31,932
31,542
217,852
32,794
27,235
31,926
27,965
219,091
35,334
27,269
32,964
30,438
227,228
36,065
28,626
33,096
30,166
225,563
35,830
28,991
33,056
35,250
230,570
38,703
33,397
33,463
31,057
225,629
38,432
27,536
33,598
38,672
227,221
134,542
116,249
135,267
116,971
136,965
118,189
136,705
117,354
137,249
117,555
136,202
117,427
138,018
119,218
18,616'
2,358
5,305
MEMO
42 Total loans (gross) and securities adjusted 7 .
43 Total loans (gross) adjusted
132,998'
114,843'
218,611
134,349'
116,108'
28,222
20,386
2,609
5,227
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
11,010
1,828
23,053
65,968
separate component of Other loans, gross. Formerly, these loans were included in
"All o t h e r " , 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 1991
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1989
1985
Dec.
1986
Dec.
1987
Dec.
1990
1988
Dec.
June
Sept.
Dec.
Mar.
June
1 AU holders—Individuals, partnerships, and
corporations
321.0
363.6
343.5
354.7
329.3
337.3
352.2
328.7
334.3
2
3
4
5
6
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
38.6
201.2
88.3
3.7
22.8
33.0
185.9
86.6
2.9
21.0
33.7
190.4
87.9
2.9
22.4
33.8
202.5
90.3
3.1
22.5
34.1
183.3
86.6
3.0
21.7
34.9
186.5
86.4
3.1
23.5
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
t
1
1
I
n.a.
Weekly reporting banks
1989
1985
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1986
Dec.
1990
1988
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
168.6
195.1
183.8
198.3
182.2
186.6
196.7
183.7
186.3
185.1
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
30.5
108.7
42.6
3.6
12.9
25.4
99.8
42.4
2.9
11.7
26.3
101.6
43.0
2.8
12.9
27.6
108.8
44.1
3.0
13.2
25.6
100.1
42.4
2.8
12.8
25.0
101.7
43.3
2.9
13.3
27.0
100.0
43.1
2.8
12.3
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types
of depositors in each category are described in the June 1971 Bulletin, p. 466.
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.
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.
1987
Dec.
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 .
3. 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
1990
1985
Dec.
Instrument
1986
Dec.
1987
Dec.
1988
Dec.
1989
Dec.
May
June
July
Aug.
Sept.
Oct.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
298,779
329,991
358,056
457,297
529,055
538,686
537,023
545,849
546,691
559,593'
557,731
78,443
101,072
102,844
160,094
187,084
186,155
191,463
199,466
199,099
205,093
203,987
1
2
3
4
5
6
Financial companies
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper4
Total
Bank-related (not seasonally
adjusted) 3
Nonfinancial companies
1,602
2,265
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
135,320
151,820
173,980
194,537
212,210
209,203
202,101
202,829
202,217
204,065
204,273
44,778
85,016
40,860
77,099
43,173
81,232
43,155
102,666
n.a.
129,761
n.a.
143,328
n.a.
143,459
n.a.
143,554
n.a.
145,375
n.a.
150,435'
n.a.
149,471
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
68,413
64,974
70,565
66,631
62,972
54,766
53,750
52,006
52,324
50,469
52,093
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
9,086
8,022
1,064
9,433
8,510
924
9,000
7,632
1,368
9,972
8,639
1,332
9,628
8,395
1,233
9,944
7,895
2,049
9,366
7,944
1,421
9,189
7,868
1,321
0
937
56,279
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,066
52,473
0
1,291
44,475
0
1,507
42,271
0
1,571
40,806
0
1,560
40,821
0
1,333
39,770
0
1,145
41,760
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,984
14,410
37,237
15,651
13,683
33,638
13,993
12,727
28,046
14,801
12,511
26,438
13,691
12,186
26,129
13,188
12,221
26,915
12,723
11,889
25,856
12,408
13,238
26,447
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 panel is revised every January and currently has
about 100 respondents. The current 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
1988— Feb.
May
July
Aug.
Nov.
1989—Feb.
2
11
14
11
28
10
24
June 5
July 31
1990— Jan. 8
1988
1989
1990
Average
rate
Rate
8.50
9.00
9.50
10.00
10.50
11.00
11.50
11.00
10.50
10.00
9.32
10.87
10.01
1988—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
8.75
8.51
8.50
8.50
8.84
9.00
9.29
9.84
10.00
10.00
10.05
10.50
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Average
rate
1989—Jan. ...
Feb. ..
Mar. ..
Apr. .
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec.
10.50
10.93
11.50
11.50
11.50
11.07
10.98
10.50
10.50
10.50
10.50
10.50
Average
rate
1990—Jan.
Feb.
Mar.
Apr.
...
..
.
.
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec.
10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
A24
1.35
DomesticNonfinancialStatistics • February 1991
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1990
Instrument
1987
1988
1990, week ending
1989
Aug.
Sept.
Oct.
Nov.
Nov. 2
Nov. 9
Nov. 16
Nov. 23
MONEY MARKET RATES
1 Federal funds 1 ' 2 ' 3
2 Discount window borrowing 2 ' 11
Commercial paper 3 ' 5
3
1-month
3-month
4
5
6-month
Finance paper, directly placed 3 - 4,6
6
1-month
3-month
7
6-month
8
Bankers acceptances 3 ' 4 '
9
3-month
10 6-month
Certificates of deposit, secondary
market 3 ' 8
11
1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month 3,9
U.S. Treasury bills
Secondary market 3,4
15
3-month
16
6-month
17
1-year
Auction average 4,12
18
3-month
19
6-month
20
1-year
6.66
5.66
7.57
6.20
9.21
6.93
8.13
7.00
8.20
7.00
8.11
7.00
7.81
7.00
8.17
7.00
7.97
7.00
7.94
7.00
7.80
7.00
6.74
6.82
6.85
7.58
7.66
7.68
9.11
8.99
8.80
7.99
7.88
7.77
8.09
7.96
7.83
8.04
7.98
7.81
7.84
7.91
7.74
7.85
7.84
7.71
7.89
7.87
7.72
7.87
7.88
7.70
7.79
7.85
7.68
6.61
6.54
6.37
7.44
7.38
7.14
8.99
8.72
8.16
7.88
7.69
7.46
7.98
7.74
7.50
7.92
7.80
7.50
7.64
7.75
7.42
7.73
7.70
7.44
7.78
7.79
7.47
7.73
7.73
7.41
7.49
7.71
7.37
6.75
6.78
7.56
7.60
8.87
8.67
7.75
7.64
7.83
7.70
7.85
7.67
7.82
7.58
7.71
7.58
7.78
7.58
7.74
7.48
7.80
7.51
6.75
6.87
7.01
7.07
7.59
7.73
7.91
7.85
9.11
9.09
9.08
9.16
7.98
7.97
7.99
7.99
8.08
8.06
8.06
8.07
8.03
8.06
8.05
8.06
7.92
8.03
7.95
8.04
7.89
7.95
7.94
7.95
7.93
7.98
7.95
7.95
7.86
7.95
7.87
7.98
7.83
7.97
7.87
7.99
5.78
6.03
6.33
6.67
6.91
7.13
8.11
8.03
7.92
7.45
7.38
7.26
7.36
7.32
7.24
7.17
7.16
7.06
7.06
7.03
6.85
7.11
7.08
6.93
7.08
7.05
6.88
7.07
7.03
6.84
7.07
7.03
6.82
5.82
6.03
6.33
6.68
6.92
7.17
8.12
8.04
7.91
7.44
7.36
7.37
7.38
7.33
7.25
7.19
7.20
7.01
7.07
7.04
6.81
7.12
7.13
n.a.
7.07
7.05
n.a.
7.05
7.02
n.a.
7.08
7.05
6.81
6.77
7.42
7.68
7.94
8.23
8.39
8.59
7.65
8.10
8.26
8.47
8.71
8.85
8.96
8.53
8.57
8.55
8.50
8.52
8.49
8.45
7.78
8.06
8.22
8.44
8.64
8.75
8.86
7.76
8.08
8.27
8.51
8.79
8.89
9.03
7.55
7.88
8.07
8.33
8.59
8.72
8.86
7.31
7.60
7.74
8.02
8.28
8.39
8.54
7.41
7.75
7.95
8.22
8.49
8.64
8.77
7.35
7.65
7.81
8.13
8.39
8.53
8.67
7.30
7.59
7.70
8.00
8.24
8.35
8.51
7.29
7.58
7.69
7.96
8.19
8.30
8.47
8.64
8.98
8.58
8.97
9.11
8.93
8.60
8.84
8.73
8.56
8.53
7.14
8.17
7.63
7.36
7.83
7.68
7.00
7.40
7.23
6.99
7.21
7.32
7.18
7.48
7.43
7.23
7.43
7.49
6.75
7.22
7.18
7.00
7.30
7.29
6.38
7.15
7.24
6.80
7.23
7.15
6.80
7.23
7.13
9.91
9.38
9.68
9.99
10.58
9.96
10.18
9.71
9.94
10.24
10.83
10.20
9.66
9.26
9.46
9.74
10.18
9.79
9.84
9.41
9.63
9.89
10.41
10.29
10.02
9.56
9.77
10.09
10.64
10.28
10.03
9.53
9.77
10.06
10.74
10.23
9.85
9.30
9.59
9.88
10.62
10.07
10.00
9.47
9.71
10.05
10.76
10.11
9.95
9.38
9.67
9.97
10.75
10.15
9.85
9.30
9.58
9.88
10.64
10.03
9.78
9.25
9.53
9.80
10.52
10.03
8.37
3.08
9.23
3.64
9.05
3.45
8.97
3.65
9.05
3.85
9.10
4.01
8.88
3.91
8.96
4.03
8.90
4.02
8.80
3.84
8.90
3.90
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
U.S. Treasury notes and bonds
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
30-year
Composite 14
Over 10 years (long-term)
State and local notes and bonds
Moody's series 15
Aaa
Baa
Bond Buyer series 16
Corporate bonds
Seasoned issues 17
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utitity bonds'
MEMO: Dividend/price ratio 19
Preferred stocks
Common stocks
1. The daily effective federal funds rate is a weighted average of rates on
trades through N.Y. brokers.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Quoted on a discount basis.
5. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
6. An average of offering rates on paper directly placed by finance companies.
7. Representative closing yields for acceptances of the highest rated money
center banks.
8. An average of dealer offering rates on nationally traded certificates of
deposit.
9. Bid rates for Eurodollar deposits at 11 a.m. London time.
10. One of several base rates used by banks to price short-term business loans.
11. Rate for the Federal Reserve Bank of New York.
12. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
13. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
14. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower"bond.
15. General obligation based on Thursday figures; Moody's Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
18. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
19. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
A23
Selected Statistics
1990
1987
1988
1989
Mar.
May
Apr.
June
July
Aug.
Sept.
Oct.
Nov.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance
6 Standard & Poor's Corporation
(1941-43 = 10)1
161.78
195.31
140.52
74.29
146.48
149.97
180.83
134.09
72.22
127.41
180.13
228.04
174.90
94.33
162.01
186.26
226.14
175.08
92.99
143.14
185.61
226.86
173.54
91.92
138.57
191.35
234.85
173.53
93.29
142.94
196.68
242.42
177.37
93.65
147.93
196.61
245.86
173.18
89.85
143.11
181.45
226.73
147.41
85.81
128.14
173.22
216.81
136.95
83.30
118.59
168.05
208.58
131.99
87.27
108.01
172.21
212.81
132.96
89.69
113.76
287.00
265.88
323.05
338.47
338.18
350.25
360.39
360.03
330.75
315.41
307.12
315.29
7 American Stock Exchange
(Aug. 31, 1973 = 50?
316.78
295.08
356.67
360.77
353.32
353.82
361.62
359.09
333.49
318.53
296.67
294.88
188,922
13,832
161,386
9,955
165,568
13,124
149,240
15,133
140,062
13,961
163,486
14,005
153,634
12,421
160,490
12,529
174,446
15,881
142,054
11,668
159,590
11,294
149,916
10,368
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
31,990
32,740
34,320
30,760
31,060
31,600
31,720
32,130
30,350
29,640
28,650
27,820
Free credit balances at brokers4
11 Margin-account
12 Cash-account
4,750
15,640
5,660
16,595
7,040
18,505
6,525
16,510
6,465
15,375
6,215
15,470
6,490
15,625
6,385
17,035
7,140
16,745
7,285
16,185
7,245
15,820
7,300
17,025
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8 , 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
0
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 1991
1.37 SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1990
1989
Account
1987
1988
Dec.
Jan.
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept.
n.a.
n.a.
n.a.
n.a.
SAIF-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed
securities
4
Contra-assets to
mortgage assets 1 .
5 Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage loans 2 .
8 Cash and investment
securities
9 Other 3
1,250,855
1,350,500
1,249,055
1,236,517
1,225,087
1,223,350
1,210,351
1,197,828
1,174,632
1,162,605
721,593
764,513
733,729
727,559
721,450
717,687
715,416
708,538
691,244
689,700
201,828
214,587
170,532
169,414
167,260
167,683
166,167
165,725
159,172
157,113
42,344
23,163
57,902
37,950
33,889
61,922
25,457
32,150
58,685
24,162
31,911
57,321
22,729
31,770
56,821
23,073
31,069
56,805
21,991
30,931
56,639
21,977
30,352
55,658
20,344
28,753
55,171
23,390
28,482
54,655
3,467
3,056
3,592
2,251
2,279
2,476
2,229
1,766
1,976
1,966
169,717
122,462
186,986
129,610
166,053
116,955
160,519
116,206
157,314
115,480
162,313
113,341
153,346
112,071
152,393
108,904
155,688
106,924
149,368
108,643
10 Liabilities and net worth . 1,250,855
1,350,500
1,249,055
1,236,517
1,225,087
1,223,350
1,210,351
1,197,828
1,174,632
1,162,605
932,616
249,917
116,363
133,554
21,941
n.a.
971,700
299,400
134,168
165,232
24,216
n.a.
945,656
252,230
124,577
127,653
27,556
23,612
933,835
252,942
121,732
131,210
26,987
22,754
926,439
248,135
120,633
127,502
28,096
22,417
929,910
246,875
117,489
129,386
25,997
20,568
916,069
246,646
115,620
131,026
27,352
20,296
902,642
241,983
114,047
127,936
28,767
24,361
890,497
230,169
109,733
120,436
25,166
28,805
884,963
222,441
106,127
116,314
26,746
28,455
11
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
SAIF-insured federal savings banks
17 Assets
284,270
425,966
498,522
583,063
581,983
595,644
593,345
570,795
583,392
587,521
18 Mortgages
19 Mortgage-backed
securities
20
Contra-assets to
mortgage assets 1 .
21 Commercial loans
22 Consumer loans
23
Contra-assets to nonmortgage loans .
24 Finance leases plus
interest
25 Cash and investment . . .
26 Other
161,926
230,734
283,844
331,503
330,366
332,995
333,300
317,985
323,516
327,330
45,826
64,957
70,499
76,765
77,016
80,059
81,030
77,781
78,001
78,033
9,100
6,504
17,6%
13,140
16,731
24,222
13,548
18,143
28,212
12,309
20,310
20,310
11,615
20,244
20,244
11,844
20,366
20,365
11,590
20,324
20,324
10,798
19,713
32,407
10,200
19,683
32,745
13,849
19,815
33,308
27 Liabilities and net worth .
28
29
30
31
32
33
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
678
889
1,193
949
986
1,001
908
707
970
999
591
35,347
24,069
880
61,029
35,412
1,101
64,538
39,981
n.a.
70,742
45,444
n.a.
70,054
46,238
n.a.
76,158
46,371
n.a.
72,618
46,180
n.a.
70,999
44,840
n.a.
75,081
47,723
n.a.
71,795
45,996
284,270
425,966
498,522
583,063
581,983
595,644
593,345
570,795
583,392
587,521
203,1%
60,716
29,617
31,099
5,324
15,034
298,197
99,286
46,265
53,021
8,075
20,218
360,547
108,448
57,032
51,416
9,041
22,716
418,555
126,398
63,516
62,882
9,770
25,986
419,246
124,171
63,026
61,145
10,347
25,723
433,000
126,253
63,550
62,703
9,435
24,169
429,469
126,240
63,120
63,120
9,982
23,505
413,009
123,415
61,057
62,358
10,307
21,138
427,379
121,721
60,666
61,055
8,889
21,944
432,387
119,998
61,442
58,556
9,508
22,373
Financial Markets A23
1.37—Continued
1989
Account
1987
1990
1988
Dec.
Jan.
Feb.
Mar.
Apr.
Credit unions
May
June
July
34 Total assets/liabilities
and capital
174,593
183,688
183,301
186,119
192,718
193,208
195,020
195,302
194,523
35
36
114,566
60,027
120,666
63,022
120,489
62,812
122,885
63,234
126,690
66,028
127,250
65,958
128,648
66,372
128,142
67,160
127,564
66,959
113,191
73,766
39,425
159,010
104,431
54,579
122,608
80,272
42,336
167,371
109,653
57,718
122,332
80,041
42,291
166,629
109,818
56,811
121,968
79,715
42,253
168,609
111,246
57,363
121,660
79,407
42,253
175,942
115,714
60,228
122,616
80,205
42,411
175,745
115,554
60,191
123,205
80,550
42,655
176,701
116,402
60,299
123,968
81,063
42,905
178,127
116,717
61,408
124,343
81,063
43,280
176,360
115,305
61,056
Federal
State
37 Loans outstanding..
38
Federal
39
State
40 Savings
41
Federal
42
State
Aug.
Sept.
4
Life insurance companies 5
43 Assets
44
45
46
47
48
49
50
51
52
53
54
Securities
Government
United States 6
State and local
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans . . . .
Other assets
1,044,459
1,166,870
1,299,756
84,426
57,078
10,681
16,667
569,199
472,684
96,515
203,545
34,172
53,626
89,586
84,051
58,564
9,136
16,351
660,416
556,043
104,373
232,863
37,371
54,236
93,358
77,297
52,517
9,028
15,752
764,521
638,907
125,614
254,215
39,908
57,439
106,376
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 " O t h e r " (line 9).
4. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Data are no longer available on a monthly basis for life insurance companies.
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. SAIF-insured institutions: Estimates by the OTS for all institutions
insured by the SAIF and based on the OTS thrift Financial Report.
SAIF-insured federal savings banks: Estimates by the OTS for federal savings
banks insured by the SAIF and based on the OTS thrift Financial Report.
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
DomesticNonfinancialStatistics • February 1991
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
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 (-)) .
Other
Fiscal
year
1988
Fiscal
year
1989
Fiscal
year
1990
1990
June
July
Aug.
Sept.
Oct.
Nov.
908,166
666,675
241,491
1,063,318
860,627
202,691
-155,152
-193,952
38,800
990,701
727,035
263,666
1,144,020
933,109
210,911
-153,319
-206,074
52,755
1,031,463
749,809
281,654
1,251,850
1,026,785
225,065
-220,387
-276,976
56,589
110,614
83,717
26,897
121,719
105,759
15,960
-11,105
-22,042
10,937
72,357
50,446
21,911
98,280
79,833
18,447
-25,924
-29,388
3,464
78,486
56,284
22,202
131,206
89,717
41,489
-52,719
-33,432
-19,287
102,874
78,542
24,332
82,026
80,613
1,413
20,848
-2,071
22,919
78,711
58,751
19,960
110,173
91,261
18,912
-31,462
-32,510
1,048
72,819
47,843
24,976
120,869
99,421
21,448
-48,050
-51,578
3,528
166,139
-7,962
-3,025
141,806
3,425
8,088
264,453
818
-44,884
23,520
-20,916
8,501
24,230
9,862
-8,168
47,329
2,433
2,957
-2,595
17,832
-421
32,265
4,720
-5,523
46,776
12,533
-11,259
44,398
13,023
31,375
40,973
13,452
27,521
40,155
7,638
32,517
34,618
5,470
29,148
24,756
6,369
18,387
22,323
4,453
17,869
40,155
7,638
32,517
35,435
7,607
27,828
22,902
5,495
17,406
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 A3 3
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Source or type
year
1989
Fiscal
year
1990
1990
H2
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
1 All sources
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund .
5
Nonwithheld
6
Refunds
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
10
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 5
990,701
1,031,462
449,330
527,574
470,329
548,977
102,874
78,711
72,819
445,690
361,386
32
154,839
70,567
466,884
390,480
32
149,189
72,817
200,300
179,600
4
29,880
9,186
233,572
174,230
28
121,563
62,251
218,706
193,296
3
33,303
7,898
243,087
190,219
30
117,675
64,838
46,664
30,806
40,691
37,777
27,156
27,505
17,420
1,562
3,863
950
1,606
1,956
117,015
13,723
110,017
16,510
56,409
7,250
61,585
7,259
52,269
6,842
58,830
8,326
18,868
1,524
3,691
2,077
2,132
837
359,416
380,047
157,603
200,127
162,574
210,476
31,010
26,598
33,723
152,407
195,269
30,480
25,144
31,209
1
0
0
332,859
353,891
144,983
184,569
18,504
22,011
4,546
21,795
21,635
4,522
3,032
10,359
2,262
16,371
13,279
2,277
1,947
7,909
2,260
19,017
12,929
2,278
2,638
186
344
0
0
1,082
373
2,098
416
34,386
16,334
8,745
22,839
35,345
16,707
11,500
27,470
19,299
8,107
4,054
10,809
16,814
7,918
4,583
10,235
16,799
8,667
4,451
13,704
18,153
8,096
6,442
12,222
2,774
1,273
875
2,934
3,011
1,528
1,065
4,203
2,953
1,354
845
5,494
OUTLAYS
1,144,020
1,251,850
554,089
565,425
587,448
640,982
82,026
110,173
120,869
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology .
Energy
Natural resources and environment
Agriculture
303,559
9,574
12,838
3,702
16,948
299,335
13,760
14,420
2,470
17,009
11,998
150,496
2,627
5,852
1,966
9,072
6,911
148,098
6,567
6,238
2,221
7,022
9,619
149,613
5,971
7,091
1,449
9,183
4,132
152,733
6,770
6,974
1,216
7,343
7,450
21,497
1,957
1,132
-357
1,517
67
24,990
779
1,616
505
1,409
1,651
29,868
4,994
1,231
269
3,103
1,903
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . .
Education, training, employment, and
social services
29,091
27,608
5,361
67,495
29,495
8,466
19,836
14,922
2,690
4,129
12,953
1,833
22,295
14,982
4,879
38,672
13,754
3,987
12,018
8,590
2,780
912
4,276
2,494
1,325
36,694
37,479
18,083
18,663
19,537
2,730
3,660
3,120
25,339
162,322
67,950
29,488
175,997
78,475
4,804
8,623
10,206
5,491
28,339
12,819
5.235
29,973
13,758
14,864
4,963
4,760
n.a.
87,927
-18,935
15,217
4,983
4,916
n.a.
91,155
-17,688
1,208
717
1,406
n.a.
15,697
-4,320
2,899
983
1,227
n.a.
14,744
-3,222
4,033
1,050
1,875
n.a.
15,138
-2,775
18 All types
16,182
29 Health
30 Social security and medicare
31 Income security
48,390
317,506
136,031
58,101
346,383
148,299
23,360
149,017
64,978
24,078
162,195
70,937
32
33
34
35
36
37
30,066
9,422
9,124
n.a.
169,317
-37,212
29,112
10,076
10,822
n.a.
183,790
-36,615
15,797
4,361
5,137
14,891
4,801
3,858
78,317
-18,771
86,009
-18,131
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest 6
i
Undistributed offsetting receipts'
0
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.
0
2,608
519
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
D o m e s t i c Financial Statistics •
F e b r u a r y 1991
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1988
1990
1989
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
2,614.6
2,707.3
2,763.6
2,824.0
2,881.1
2,975.5
3,081.9
3,175.5
3,266.1
2 Public debt securities
3
Held by public
4
Held by agencies
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
676.7
2,953.0
2,245.2
707.8
3,052.0
2,329.3
722.7
3,143.8
2,368.8
775.0
3,233.3
n.a.
n.a.
12.4
12.2
.2
22.9
22.6
.3
22.7
22.3
.4
24.0
23.6
.5
23.7
23.5
.1
22.5
22.4
.1
29.9
29.8
.2
31.7
31.6
.2
5 Agency securities
6
Held by public
7
Held by agencies
n.a.
n.a.
n.a.
2,586.9
2,669.1
2,725.6
2,784.6
2,829.8
2,921.7
2,988.9
3,077.0
3,161.2
9 Public debt securities
10 Other debt 1
2,586.7
.1
2,668.9
.2
2,725.5
.2
2,784.3
.2
2,829.5
.3
2,921.4
.3
2,988.6
.3
3,076.6
.4
3,160.9
.4
11 MEMO: Statutory debt limit
2,800.0
2,800.0
2,800.0
2,800.0
2,870.0
3,122.7
3,122.7
3,122.7
3,195.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement
United States.
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
1990
1989
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues
Government
Public
Savings bonds and notes
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 Treasury s
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors
1986
1988
1989
Q4
Q1
Q2
Q3
2,214.8
2,431.7
2,684.4
2,953.0
2,953.0
3,052.0
3,143.8
3,233.3
2,212.0
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
2,931.8
1.945.4
430.6
1.151.5
348.2
986.4
163.3
2,931.8
1.945.4
430.6
1.151.5
348.2
986.4
163.3
6.8
6.8
6.8
.0
107.6
575.6
6.8
.0
115.7
695.6
115.7
695.6
705.1
3,121.5
2,028.0
453.5
1,192.7
366.8
1,093.5
164.3
36.4
36.4
.0
120.1
758.7
3,210.9
2,092.8
482.5
6.6
6.6
.0
3,029.5
1.995.3
453.1
1.169.4
357.9
1,034.2
163.5
37.1
37.1
.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
2.8
2.8
21.3
21.2
21.2
22.4
22.3
22.4
403.1
211.3
477.6
1,602.0
589.2
238.4
1,858.5
193.8
107.3
87.1
313.6
707.8
228.4
2,015.8
180.6
14.4
107.9
93.8
337.1
707.8
228.4
2,015.8
180.6
14.4
107.9
93.8
337.1
722.7
219.3
2,115.1
203.5
28.0
105.6
68.8
262.8
1,731.4
201.5
14.6
104.9
84.6
284.6
95.0
338.0
775.0
231.4
2,135.5
n.a.
n.a.
n.a.
n.a.
n.a.
92.3
70.4
263.4
506.6
101.1
71.3
299.7
569.1
109.6
79.2
362.2
593.9
117.7
93.8
393.4
674.3
117.7
93.8
393.4
674.3
119.9
95.0
386.9
754.9
n.a.
392.7
n.a.
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
.0
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.
1987
222.6
11.8
118.0
182.0
31.3
108.0
1,218.1
377.2
1,118.2
161.3
36.0
36.0
.0
122.2
779.4
121.6
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 and the
Treasury Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A3 3
Transactions1
Millions of dollars, daily averages
1990
1990
Item
Nov. 7
Nov. 14
Nov. 21
Nov. 28
Oct. 24
Oct. 31
27,777
31,295
41,282
31,851
32,271
33,320
33,378
27,030
24,794
10,986
14,882
23,708
22,529
11,436
12,318
36,001
21,988
10,381
10,897
41,958
22,988
20,174
15,097
34,487
26,240
20,286
20,234
28,980
24,388
12,856
15,643
31,293
25,151
9,189
10,697
3,856
422
1,751
3,843
605
413
4,784
481
364
4,677
789
660
4,498
765
819
4,598
471
717
3,915
461
283
9,897
1,189
7,206
1,215
7,805
955
9,557
1,590
10,145
1,171
7,323
1,512
7,194
1,648
9,209
1,482
75,446
73,747
67,902
65,864
73,890
80,247
81,064
71,264
66,297
2,339
6,854
2,207
4,566
2,373
3,112
1,543
4,655
1,705
5,792
2,027
5,550
2,062
3,946
1,885
4,409
1,519
5,921
41,206r
45,269'
42,739'
37,568
35,421
46,658
51,821
52,453
43,923
43,410
3,760
5,418
4,517
6,054
3,688
6,520
3,656
5,309
3,318
4,106
3,923
5,356
4,099
5,766
4,020
4,889
3,901
4,433
3,139
4,770
4,237r
3,694'
4,451
2,736
3,969
2,792
4,826
4,187
4,632
5,142
6,801
1,198
463
925
7,731
1,306
523
873
8,957
1,545
839
1,231
9,571
1,232
697
873
9,516
1,464
360
912
9,604
1,385
501
795
9,438
1,003
345
698
6,902
2,048
629
1,171
10,420
1,651
646
2,031
12,866
1,467
625
917
10,013
1,126
1,169
1,137
7,724
47
58
21
31
113
45
81
53
96'
29
38
150
88
28
54
79
148
21
45
11
87
24
22
26
47
93
72
110
24
27
6
100
17
8,519
1,462
7,607
999
8,427'
721
7,351
1,786
9,089
354
6,966
1,051
7,350
567
7,717
1,541
13,008
1,270
9,531
604
6,793
1,142
Oct.
Oct. 3
Oct. 10
Aug.
Sept.
30,568r
31,495r
31,726'"
32,983'
25,797'
32,863'
24,493r
13,735'
15,468'
29,379'
22,872'
9,707'
10,850
29,841r
25,903'
11,386
13,365
33,909
28,914
11,437
13,472
30,186
32,493'
12,709
15,301
4,015
560
789
4,535
449
531
4,397
534
836
5,630
492
733
4,365
651
879
6,992
1,415
9,146
1,149
9,005
1,247
11,595
1,313
73,122'
66,107'
71,015
1,685
3,884
1,773
5,081
2,007
4,834
44,005r
38,197r
3,679
4,523
3,742
5,214
4,595
1,696
691
1,381
10,284
Oct. 17
IMMEDIATE TRANSACTIONS 2
By type of security
U.S. government securities
Bills
Coupon securities
Maturing in less than 3.5 years ..
2
3
Maturing in 3.5 to 7.5 years
Maturing in 7.5 to 15 years
4
5
Maturing in 15 years or more
Federal agency securities
Debt
6
Maturing in less than 3.5 years ..
7
Maturing in 3.5 to 7.5 years
Maturing in 7.5 years or more ..
8
Mortgage-backed
Pass-throughs
9
10
All others
1
By type of counterparty
Primary dealers and brokers
11 U.S. government securities
Federal agency
12
Debt securities
13
Mortgage backed securities .
Customers
14
U.S. government securities
Federal agency
15
Debt securities
16
Mortgage-backed securities .
FUTURE AND FORWARD
TRANSACTIONS 4
By type of deliverable security
U.S. government securities
17 Bills
Coupon securities
18
Maturing in less than 3.5 years ..
19
Maturing in 3.5 to 7.5 years
20
Maturing in 7.5 to 15 years
21
Maturing in 15 years or m o r e —
Federal agency securities
Debt
22
Maturing in less than 3.5 years ..
23
Maturing in 3.5 to 7.5 years
24
Maturing in 7.5 years or more ..
Mortgage-backed
25
Pass-throughs
26
All others
143
37
191'
10,948
274
OPTION TRANSACTIONS 6
By type of underlying securities
U.S. government securities
Bills
Coupon securities
28
Maturing in less than 3.5 years ..
29
Maturing in 3.5 to 7.5 years
30
Maturing in 7.5 to 15 years
31
Maturing in 15 years or m o r e . . . .
Federal agency securities
Debt
32
Maturing in less than 3.5 years ..
33
Maturing in 3.5 to 7.5 years
34
Maturing in 7.5 years or more ..
Mortgage-backed
35
Pass-throughs
36
All others
27
11
3
60
30
19
108
68
63
21
25
55
177
693
297
315
2,880
956
309
190
1,918
715
223
182
2,152
1,124
306
179
2,142
679
216
243
1,880
704
257
274
2,612
433
133
140
2,704
798
234
72
1,417
600
183
225
2,206
774
345
304
2,410
673
174
91
2,067
634
279
212
2,956
2
0
7
3
0
6
6
0
0
1
0
0
20
0
0
1
0
0
0
0
0
5
0
0
14
0
0
7
0
3
0
0
0
0
0
0
524
0
383
7
482
268
3
927
0
370
0
371
2
390
2
289
0
653
0
354
0
178
0
1
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. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes securities such as CMOs, REMICs; IOs, and POs.
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. government securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put and call options, whether
arranged on an organized exchange or in the over-the-counter market and include
options on futures contracts on U.S. government and federal agency securities.
A32
DomesticNonfinancialStatistics • February 1991
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Millions of dollars
1990
1990
Item
Aug.
Sept.
Oct.
Oct. 3
Oct. 10
Oct. 17
Oct. 24
Positions
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
2
NET IMMEDIATE3
By type of security
U.S. government securities
1 Bills
Coupon securities
2 Maturing in less than 3.5 years
3 Maturing in 3.5 to 7.5 years
4 Maturing in 7.5 to 15 years
5 Maturing in 15 years or more
Federal agency securities
Debt
6 Maturing in less than 3.5 years
7 Maturing in 3.5 to 7.5 years
8 Maturing in 7.5 years or more
Mortgage-backed
9 Pass-throughs
10 All others4^.
Other money market instruments
11 Certificates of deposit
12 Commercial paper
13 Bankers' acceptances
3,664
3,258
-499
2,025
3,775
2,556
6,284
7,055
13,564
11,531
12,165
5,395
-352
-2,645 -5,090
-5,740 -7,271
-12,241 -14,195
-2,016
-5,885
-7,044
-15,377
-1,071
-5,570
-7,591
-14,173
-495
-6,369
-6,629
-15,057
-3,553
-5,172
-7,396
-15,085
-3,097
-5,884
-6,662
-15,399
-1,326
-6,250
-7,253
-16,483
4,103
-7,004
-5,500
-14,403
2,471
-8,212
-5,479
-8,074
2,349
-6,707
-7,103
-10,259
6,978
-4,482
-8,381
-9,951
6,815
4,136
1,422
2,396
4,047
1,797
2,128
4,169
1,737
4,115
4,269
1,698
2,593
4,672
1,780
2,612
4,185
1,845
4,961
4,464
1,827
4,898
3,314
1,512
4,640
5,015
1,702
5,145
4,240
1,532
4,673
4,222
1,608
4,494
4,318
1,627
4,376
16,696
0
16,330
0
17,886
0
13,311
0
17,770
0
22,122
0
19,287
0
14,324
0
20,915
0
22,783
0
21,498
0
19,486
0
3,129
7,489
1,193
2,953
7,307
954
2,559
6,423
1,214
3,210
7,590
873
2,889
7,484
1,122
2,568
6,093
1,017
2,171
4,769
1,195
2,327
6,845
1,668
2,066
6,352
1,609
2,265
6,436
1,584
1,985
5,774
1,460
1,674
5,641
1,048
-15,495 -11,881
FUTURE AND FORWARD5
By type of deliverable security
U.S. government securities
14 Bills
Coupon securities
15 Maturing in less than 3.5 years
16 Maturing in 3.5 to 7.5 years
17 Maturing in 7.5 to 15 years
18 Maturing in 15 years or more
Federal agency securities
Debt
19 Maturing in less than 3.5 years
20 Maturing in 3.5 to 7.5 years
21 Maturing in 7.5 years or more
Mortgage-backed
22 Pass-throughs
23 All others
Other money market instruments
24 Certificates of deposit
25 Commercial paper
26 Bankers' acceptances
-17,120
-12,607
-13,769
-18,581
-18,855
-19,207
-15,303
-14,015
-5,726
-7,454
-616
-1,728
327
-2,405
-573
-1,403
143
90
-685
-1,541
-982
-2,256
-1,124
-1,984
-913
-1,103
-935
-1,671
-981
-751
-170
-1,696
-1,067
-2,323
-705
-1,559
-1,096
-3,342
-742
-1,050
-814
-3,103
-2,104
-258
-1,948
-3,999
-1,818
-816
-2,101
-7,468
-1,491
-821
-1,782
-5,326
-1,336
-1,232
-1,160
-4,677
167
71
-52
132
76
100
166
96
118
141
58
256
109
79
163
123
115
22
264
176
71
180
29
156
77
86
2
99
24
42
42
48
-78
37
38
-78
-7,823
0
-7,683'
0
-8,186'
0
-4,044'
0
-8,024
0
-11,615
0
-8,961
0
-5,919
0
-10,863
0
-13,126
0
-11,766
0
-9,589
0
47,770
-3
0
56,474
0
0
86,147
0
0
70,761
0
0
79,981
0
0
86,674
0
0
92,928
0
0
91,599
0
0
104,748
0
0
92,247
0
0
84,906
0
0
68,405
0
0
Financing6
27
28
29
30
31
32
33
34
35
36
Reverse repurchase agreements
Overnight and continuing
Term
Reverse repurchase agreements
Overnight and continuing
Term
Securities borrowed
Overnight and continuing
Term
Securities lent
Overnight and continuing
Term
Collateralized loans
Overnight and continuing
Term
MEMO: Matched book7
Reverse repurchases
Overnight and continuing
Term
Repurchases
39 Overnight and continuing
40 Term
37
38
157,064
229,319
159,515
219,855
175,353
226,083
175,098
213,308
169,662
222,431
166,622
225,827
177,104
230,502
188,134
231,045
167,660
243,113
186,630
227,169
155,006
222,034
171,250
207,174
234,871
189,882r
235,588
174,627r
248,211
183,745'
239,083
170,528
243,629
178,474
246,194
181,163
256,061
191,173
250,874
189,835
246,770
206,851
266,824
200,587
179,908
239,695
244,198
181,378
45,914
13,686
50,783
18,003
50,122
19,182
50,103
18,270
51,733
18,440
49,279
18,916
48,948
19,965
50,536
19,798
48,173
21,814
46,334
22,141
47,273
22,257
48,897
21,987
18,951
446'
22,156
1,046'
20,897
621'
22,899
356
22,640
475
20,840
659
19,962
765
19,286
697
18,468
5,411
18,584
465
19,204
691
18,950
1,430
5,058
691
4,870
863
4,421
1,101
4,694
665
4,757
553
4,206
1,169
3,954
1,820
4,652
1,048
3,849
1,153
5,036
1,075
3,916
1,302
4,832
821
100,242
184,789
102,856
178,083
110,533
179,414
111,606
171,794
109,117
177,459
105,657
177,937
112,100
184,982
114,796
180,545
100,814
194,837
115,686
184,261
96,976
173,933
109,101
165,374
131,250
148,876
137,034
137,764
141,338
142,489
139,980
132,135
140,387
140,675
138,181
139,076
142,267
147,304
145,099
147,338
129,508
159,324
141,554
154,490
99,732
163,100
132,446
140,003
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Data for positions and financing are averages
of close-of-business Wednesday data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as CMOs, REMICs, IOs, and POs.
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
delivery. Forward contracts for U.S. government securities and for federal
agency debt securities are included when the time to delivery is more than five
business days. Forward contracts for mortgage-backed securities are included
when the time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without a requirement for advance notice by either party; term
agreements have a fixed maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns listed above. The reverse repurchase and repurchase
numbers are not always equal due to the "matching" of securities of different
values or types of collateralization.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A3 3
Debt Outstanding
Millions of dollars, end of period
1990
1987
1986
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department'
4
Export-Import Bank 2,3
5 Federal Housing Administration
6
Government National Mortgage Association participation
certificates'
7
Postal Service 6
8 Tennessee Valley Authority
9
United States Railway Association 6
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14
Farm Credit Banks 8
15
Student Loan Marketing Association
16 Financing Corporation 10
17
Farm Credit Financial Assistance Corporation 11
18 Resolution Funding Corporation
1988
1989
June
July
Aug.
Sept.
20
21
22
23
24
Lending to federal and federally sponsored
Export-Import Bank
Postal Service
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other Lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
341,386
381,498
411,805
422,261
420,529
421,554
421,308
36,958
33
14,211
138
37,981
13
11,978
183
35,668
8
11,033
150
35,664
7
10,985
328
42,015
7
11,150
394
41,978
7
11,150
281
42,323
7
11,150
316
42,420r
7
11,346
357
42,685
7
11,346
382
2,165
3,104
17,222
85
1,615
6,103
18,089
0
0
6,142
18,335
0
0
6,445
17,899
0
0
6,148
24,316
0
0
6,148
24,392
0
0
6,948
23,902
0
0
6,948
23,762'
0
0
6,948
24,002
0
270,553
88,758
13,589
93,563
62,478
12,171
0
0
0
303,405
115,727
17,645
97,057
55,275
16,503
1,200
0
0
345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,407
136,087
26,148
116,064
54,864
28,705
8,170
847
4,522
380,245
123,021
31,049
117,964
53,451
32,392
8,170
1,172
13,026
378,551
119,692
27,716
118,356
53,175
32,218
8,170
1,172
18,052
379,231
118,380
27,589
119,248
54,015
32,605
8,170
1,172
18,052
378,388
116,336
27,985
118,826
54,382
33,376
8,170
1,261
18,052
n.a.
117,120
n.a.
119,775
56,788
n.a.
n.a.
n.a.
23,055
157,510
152,417
142,850
134,873
157,685
162,443
166,017
173,318
180,538
14,205
2,854
4,970
15,797
85
11,972
5,853
4,940
16,709
0
11,027
5,892
4,910
16,955
0
10,979
6,195
4,880
16,519
0
11,144
5,898
4,880
14,936
0
11,144
5,898
4,880
15,012
0
11,144
6,698
4,880
14,522
0
11,340
6,698
4,880
14,382r
0
11,340
6,698
4,880
14,622
0
65,374
21,680
32,545
59,674
21,191
32,078
58,496
19,246
26,324
53,311
19,265
23,724
51,901
19,168
49,758
52,171
19,066
54,272
52,211
19,043
57,519
52,049
19,042
64,927r
52,324
18,966
71,708
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. OIF-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.
n.a.
307,361
MEMO
19 Federal Financing Bank debt13
Oct.
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 Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
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.
14. 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.
A34
DomesticNonfinancialStatistics • February 1991
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1990
Type of issue or issuer,
or use
1987
1 All issues, new and refunding1
1988
1989
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
102,407
114,522
113,646
8,582
12,032
13,625
8,731
10,035
13,930
8,521
9,961
Type of issue
2 General obligation
3 Revenue
30,589
71,818
30,312
84,210
35,774
77,873
3,386
5,196
3,166
8,866
4,426
9,199
2,847
5,884
3,358
6,677
3,763
10,167
3,435
5,086
3,024
6,937
Type of issuer
4 State
5 Special district and statutory authority
6 Municipalities, counties, and townships
10,102
65,460
26,845
8,830
74,409
31,193
11,819
71,022
30,805
1,387
4,366
2,243
1,003
7,485
3,544
1,090
8,556
3,977
1,442
5,670
1,742
1,610
6,692
2,195
2,317
8,188
3,425
1,470
4,521
2,530
1,337
5,879
2,745
7 Issues for new capital, total
56,789
79,665
84,062
7,744
10,486
10,974
7,442
9,346
12,713
8,043
9,098
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
9,524
3,677
7,912
11,106
7,474
18,020
15,021
6,825
8,496
19,027
5,624
24,672
15,133
6,870
11,427
16,703
5,036
28,894
1,054
1,215
991
2,664
232
2,426
1,694
1,375
1,232
2,628
681
2,155
2,612
1,592
2,159
2,199
693
4,366
2,212
789
719
2,012
434
2,688
1,389
931
1,015
3,508
495
3,161
1,472
920
687
3,995
674
4,965
1,614
1,043
731
1,343
386
2,926
1,009
727
1,301
1,992
540
4,392
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
1.46 NEW SECURITY ISSUES
SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.
U.S. Corporations
Millions of dollars
1990
Type of issue or issuer,
or use
1987
1988
1989
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
1 Ail issues1
392,261
410,713
376,171
21,199
15,346
25,204
28,900
19,975
13,750'
14,535'
19,262
2 Bonds2
325,753
352,912
318,300
17,405
13,590
22,853
26,027
17,728
12,942'
14,109'
18,300
Type of offering
3 Public, domestic
4 Private placement, domestic 3
5. Sold abroad
209,377
92,070
24,306
202,034
127,700
23,178
180,913
114,629
22,758
15,498
n.a.
1,907
12,669
n.a.
921
19,703
n.a.
3,150
22,816
n.a.
3,211
14,423
n.a.
3,305
11,746'
n.a.
1,196
12,20C
n.a.
1,909'
16,600
n.a.
1,700
60,657
49,773
11,974
22,991
7,340
173,018
70,575
62,089
10,075
19,528
5,952
184,692
76,345
49,307
10,105
17,059
8,503
156,983
3,396
263
386
317
704
12,340
3,612
683
194
435
500
8,167
2,580
1,171
927
1,004
326
16,845
3,812
2,999
1,001
2,561
411
15,243
1,838
1,728
270
703
137
13,052
861'
223
500
835
35
10,488'
2,246'
117
533
1,000
268
9,945'
2,804
446
187
831
242
13,790
12 Stocks2
66,508
57,802
57,870
3,794
1,756
2,351
2,873
2,247
808
426
962
Type
13 Preferred
14 Common
15 Private placement
10,123
43,225
13,157
6,544
35,911
15,346
6,194
26,030
25,647
1,028
2,767
n.a.
193
1,564
n.a.
665
1,686
n.a.
310
2,563
n.a.
350
1,897
n.a.
145
663
n.a.
100
326'
n.a.
550
412
n.a.
13,880
12,888
2,439
4,322
1,458
31,521
7,608
8,449
1,535
1,898
515
37,798
9,308
7,446
1,929
3,090
1,904
34,028
521
552
0
533
0
2,188
253
666
0
219
0
619
86
706
22
471
380
686
265
748
21
0
29
1,799
348
507
0
173
0
862
125
251
71
139
0
218
0
172
0
39
0
215
60
194
7
297
0
400
6
7
8
9
10
11
16
17
18
19
20
21
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1990
Item
1988
1989
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
INVESTMENT COMPANIES1
1 Sales of own shares 2
271,237
306,445
28,817
29,788
27,431
28,301
29,444
29,227
23,387
27,511
2 Redemptions of own shares 3
3 Net sales
267,451
3,786
272,165
34,280
23,777
5,040
27,306
2,482
23,337
4,094
23,340
4,961
22,933
6,511
24,837
4,390
21,053
2,334
23,112
4,399
4 Assets4
472,297
553,871
549,638
542,061
574,302
582,190
586,526
554,722
535,787
538,283
5 Cash position 5
6 Other
45,090
427,207
44,780
509,091
50,454
499,184
55,213
486,848
52,741
521,560
49,861
532,329
48,944
537,582
51,103
503,619
51,128
484,659
51,832
486,451
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.
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
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
Account
1987
1988
1989
1990
1989
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3'
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
308.3
275.3
126.9
148.4
98.2
50.2
337.6
316.7
136.2
180.5
110.0
70.5
311.6
307.7
135.1
172.6
123.5
49.1
349.6
331.1
142.1
189.1
115.3
73.8
327.3
335.1
148.3
186.7
119.1
67.6
321.4
314.6
140.8
173.8
122.1
51.7
306.7
291.4
127.8
163.6
125.0
38.6
290.9
289.8
123.5
166.3
127.7
38.6
296.8
2%. 9
129.9
167.1
130.3
36.8
306.6
299.3
133.1
166.1
133.0
33.2
300.7
318.5
139.1
179.4
135.1
44.3
7 Inventory valuation
8 Capital consumption adjustment
-19.4
52.4
-27.0
47.8
-21.7
25.5
-22.5
40.9
-43.0
35.2
-23.1
29.9
-6.1
21.4
-14.5
15.6
-11.4
11.3
-.5
7.7
-19.8
2.0
SOURCE. Survey of Current Business (Department of Commerce).
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
Industry
1989
1990
1990
1991
1991
Q2
Q3
Q4
QL
Q2
Q3
Q4
QL
1 Total nonfarm business
507.40
533.91
546.67
502.05
514.95
519.58
532.45
535.49
534.86
532.84
557.92
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
82.56
101.24
83.70
108.60
83.01
110.57
82.44
98.47
83.60
102.40
83.41
108.47
86.35
105.02
84.34
110.82
82.67
111.81
81.42
106.74
82.79
108.28
9.21
9.81
9.38
9.24
9.24
9.38
9.58
9.84
9.98
9.84
10.24
6.26
6.73
5.85
6.30
9.02
6.14
6.62
10.82
6.35
5.81
6.84
5.78
6.36
8.89
5.78
6.80
5.75
5.69
6.45
9.35
6.33
6.66
9.36
5.84
5.60
10.05
5.76
6.48
7.31
6.63
6.22
11.03
6.51
44.81
21.47
229.28
43.99
22.97
243.39
45.72
22.16
252.04
46.37
21.72
225.39
44.44
20.75
233.50
44.66
21.15
234.25
43.37
22.34
243.66
42.62
21.65
244.37
43.63
23.85
241.51
46.34
24.05
244.02
47.33
24.43
261.08
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
I. Anticipated by business.
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • February 1991
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
1989
Account
1985
1986
1990
1987
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
1
2
3
4
Accounts receivable, gross 2
Consumer
Business
Real estate
Total
5
6
Less:
Reserves for unearned income
Reserves for losses
7
8
9
111.9
157.5
28.0
297.4
134.7
173.4
32.6
340.6
141.1
207.4
39.5
388.1
139.1
243.3
45.1
427.5
143.9
250.9
47.1
441.9
146.3
246.8
48.7
441.8
140.8
256.0
48.9
445.8
137.9
262.9
52.1
452.8
138.6
274.8
55.4
468.8
140.9
275.4
57.7
474.0
39.2
4.9
41.5
5.8
45.3
6.8
51.0
7.4
52.2
7.5
52.9
7.7
52.0
7.7
51.9
7.9
54.3
8.2
55.1
8.6
Accounts receivable, net
All other
253.3
45.3
293.3
58.6
336.0
58.3
369.2
75.1
382.2
81.4
381.3
85.2
386.1
91.6
393.0
92.5
406.3
95.5
410.3
102.8
Total assets
298.6
351.9
394.2
444.3
463.6
466.4
477.6
485.5
501.9
513.1
LIABILITIES
10
11
Bank loans
Commercial paper
18.0
99.2
18.6
117.8
16.4
128.4
11.3
147.8
12.1
149.0
12.2
147.2
14.5
149.5
13.9
152.9
15.8
152.4
15.6
148.6
12
13
14
15
16
17
Other short-term
Long-term
Due to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
12.7
94.4
17.5
117.5
28.0
137.1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
41.5
32.8
44.1
36.4
52.8
31.5
56.9
133.6
58.1
36.6
59.8
140.5
63.5
38.8
60.3
145.1
61.8
39.8
63.8
147.8
62.6
39.4
70.5
145.7
61.7
40.7
72.8
153.0
66.1
41.8
82.0
156.6
68.7
41.6
18
Total liabilities and capital
298.6
351.9
394.2
444.3
463.6
466.4
477.6
485.5
501.9
513.1
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
1990
type
1
2
3
4
5
6
7
8
9
10
11
12
13
Total
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
May
June
July
Aug.
Sept.
Oct.
205,992
234,578
258,504
266,859
273,786
277,616
283,043
285,654
287,921
36,139
25,075
36,957
28,199
39,139
29,674
698
39,245
30,635
622
39,716
30,491
642
38,931
30,623
800
38,610
30,707
987
38,470
30,607
946
39,150
30,487
902
33,074
6,8%
9,918
0
29,896
9,429
9,892
0
31,815
9,495
10,043
0
33,158
9,929
9,722
0
34,429
9,812
9,707
650
37,082
9,791
9,597'
863
35,258
10,698
9,477
679
n.a.
30,070
5,578
8,329
n.a.
32,357
5,954
9,312
n.a.
n.a.
22,097
43,493
24,875
57,658
n.a.
n.a.
27,074
68,112
1,247
28,878
72,715
1,597
29,575
74,916
1,547
30,210
76,316
1,760
30,942
78,714
1,703
30,453
79,158
1,655
31,303
80,833
1,724
18,103
21,162
19,081
23,590
18,700
25,250
19,869
25,677
20,077
26,089
19,974
26,809
20,538
26,495
20,740
26,670
18,170
17,042
Net change (during period)
14
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
33,866
22,434
22,580
4,480
6,927
3,830
5,427
2,611
2,267
9,925
2,056
819
1,386
n.a.
n.a.
2,182
1,475
-26
-305
520
-40
471
-144
20
-785
132
158
-321
84
187
-141
-100
-41
680
-120
-44
7,158
250
1,293
2,288
377
983
716
940
605
0
224
57
-69
0
1,919
67
151
0
1,343
434
-321
0
1,271
-118
-16
650
2,653
-21
-110
213
-1,823
907
-120
-184
n.a.
n.a.
2,174
5,271
2,777
9,752
n.a.
n.a.
2,201
9,187
526
351
3,243
-49
696
2,201
-50
636
1,400
213
731
2,398
-57
-488
444
-48
850
1,675
69
2,245
3,498
-65
4,119
979
3,796
-16
565
1,169
427
208
412
-103
721
564
-314
202
175
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
1.53
A37
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1990
Item
1987
1988
1989
May
June
July
Aug.
Sept.
Oct.
Nov.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional mortgages on new homes
1
2
3
4
5
6
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)
/ OTS series 3
8 HUD series 4
137.0
100.5
75.2
27.8
2.26
8.94
150.0
110.5
75.5
28.0
2.19
8.81
159.6
117.0
74.5
28.1
2.06
9.76
162.1
119.7
75.0
28.1
2.41
9.87
149.8
111.8
76.4
26.9
1.96
9.80
163.5
120.9
75.3
28.0
1.93
9.75
161.5
118.3
74.5
27.2
2.07
9.75
156.6
114.8
74.7
27.2
1.78
9.60
146.1
105.1
73.5
26.9
1.80
9.68
151.5
111.2
75.0
27.1
1.68
9.61
9.31
10.17
9.18
10.30
10.11
10.21
10.28
10.19
10.13
10.12
10.08
9.94
10.11
10.12
9.90
10.18
9.98
10.11
9.90
9.86
10.16
9.44
10.49
9.83
10.24
9.71
10.23
9.77
10.18
9.54
10.11
9.48
10.28
9.63
10.24
9.65
10.23
9.66
9.81
9.46
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
95,030
21,660
73,370
101,329
19,762
81,567
104,974
19,640
85,335
112,791
20,723
92,068
112,855
20,830
92,025
113,378
21,059
92,319
113,507
21,101
92,406
113,718
21,364
92,354
114,216
21,495
92,721
115,085
21,530
93,555
Mortgage transactions (during period)
14 Purchases
20,531
23,110
22,518
1,630
1,802
2,304
2,134
2,123
2,077
2,078
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,960
534
2,089
853
2,215
874
2,302
761
2,073
644
1,849
92
2,426
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage
commitments7
15 Issued (during period)
16 To sell (during period)
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of periodf
17 Total
18 FHA/VA
19 Conventional
12,802
686
12,116
15,105
620
14,485
20,105
590
19,516
19,874
556
19,319
19,979
550
19,429
20,127
546
19,581
20,564
541
20,023
20,508
536
17,810
Mortgage transactions (during period)
20 Purchases
21 Sales
76,845
75,082
44,077
39,780
78,588
73,446
6,064
5,792
5,856
5,546
4,527
4,248
5,417
4,808
5,798
5,707
n.a.
5,734''
n.a.
5,280
Mortgage
commitments10
22 Contracted (during period)
71,467
66,026
88,519
8,502
11,183
5,851
5,646
6,643
n.a.
n.a.
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 Asso-
ciation 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. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation as well as whole loans.
10. 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 1991
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1989
Type of holder, and type of property
1987
1988
1990
1989
Q2
Q3
Q4
Q1
Q2
1 All holders
2,971,019
3,264,348
3,540,084
3,402,082
3,473,550
3,540,084
3,601,132
3,657,741
2 1- to 4-family
3 Multifamily
4 Commercial
5
1,958,400
272,500
651,323
88,797
2,186,292
289,128
702,113
86,816
2,404,311
305,582
744,856
85,336
2,287,645
299,449
728,212
86,777
2,347,566
302,374
737,299
86,311
2,404,311
305,582
744,856
85,336
2,450,291
310,273
755,857
84,710
2,492,784
314,360
765,489
85,109
1,657,937
592,449
275,613
32,756
269,648
14,432
1,826,668
669,237
317,585
33,158
302,989
15,505
1,919,243
763,533
368,567
37,990
340,285
16,691
1,891,210
715,262
338,799
36,022
324,083
16,358
1,913,914
742,0%
355,084
37,201
333,272
16,539
1,919,243
763,533
368,567
37,990
340,285
16,691
1,924,635
783,100
376,616
39,202
350,473
16,809
1,924,617
803,660
388,018
40,271
358,367
17,003
860,467
602,408
106,359
150,943
757
205,021
12,676
21,644
160,874
9,828
29,716
924,606
671,722
110,775
141,433
676
232,825
15,299
23,583
184,273
9,671
37,846
910,254
669,220
106,014
134,370
650
245,456
13,827
27,195
194,871
9,563
45,476
938,714
687,000
110,067
140,977
670
237,234
12,814
25,232
189,623
9,565
41,824
932,373
683,148
108,447
140,0%
682
239,445
13,290
26,372
190,152
9,632
43,157
910,254
669,220
106,014
134,370
650
245,456
13,827
27,195
194,871
9,563
45,476
892,022
658,440
103,860
129,103
619
249,513
14,173
28,182
197,621
9,537
45,808
867,640
639,985
101,112
125,944
599
253,317
14,479
29,155
200,139
9,544
47,104
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
200,570
26
26
0
42,018
18,347
8,513
5,343
9,815
209,472
23
23
0
41,176
18,422
9,054
4,443
9,257
202,056
24
24
0
40,711
18,391
8,778
3,885
9,657
205,809
24
24
0
41,117
18,405
8,916
4,366
9,430
209,472
23
23
0
41,176
18,422
9,054
4,443
9,257
216,059
22
22
0
41,125
18,419
9,199
4,510
8,997
230,511
21
21
0
41,027
18,433
9,351
4,418
8,826
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
6,087
2,850
3,237
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603
6,424
2,827
3,597
103,309
95,714
7,595
31,467
1,851
29,616
20,121
17,382
2,739
6,023
2,900
3,123
107,052
99,168
7,884
30,943
1,821
29,122
20,650
17,659
2,992
6,087
2,850
3,211
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603
6,355
2,977
3,291
112,353
103,300
9,053
29,325
1,197
28,128
19,823
16,772
3,051
6,792
3,041
3,243
114,592
105,026
9,566
30,517
1,957
28,559
20,126
16,918
3,208
44 Mortgage pools or trusts 6
45
Government National Mortgage Association
46
1- to 4-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation
49
1- to 4-family
50
Multifamily
Federal National Mortgage Association
51
52
1- to 4-family
53
Multifamily
54
Farmers Home Administration 5
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
0
63
61
810,887
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
0
38
40
943,932
369,867
358,142
11,725
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
864,885
353,759
342,545
11,214
245,242
238,446
6,796
196,501
188,774
7,727
85
23
0
26
36
899,435
361,291
349,838
11,453
257,938
251,232
6,706
208,894
200,302
8,592
82
22
0
26
35
943,932
369,867
358,142
11,725
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
981,265
378,292
366,300
11,992
281,736
274,084
7,652
246,391
237,916
8,475
75
20
0
25
31
1,011,982
384,289
372,051
12,237
291,863
283,822
8,041
259,664
250,663
9,002
71
18
0
23
30
59 Individuals and others 7
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
402,064
242,053
75,458
63,192
21,361
426,223
258,639
78,663
68,037
20,884
467,438
292,967
82,899
70,861
20,711
443,931
273,757
79,681
69,618
20,875
454,392
283,445
80,689
69,387
20,871
467,438
292,%7
82,899
70,861
20,711
479,172
301,573
84,873
72,136
20,589
490,631
310,747
86,468
72,868
20,548
6 Selected financial institutions
7
Commercial banks 2
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
IS
16
17
18
19
20
21
22
Savings institutions 3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies 4
23 Federal and related agencies
24 Government National Mortgage Association
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration
28
1- to 4-family
29
Multifamily
30
Commercial
Farm
31
32
33
34
35
36
37
38
39
40
41
42
43
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
5. Farmers Home Administration-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, amounts outstanding, end of period
1990
Holder, and type of credit
1988
1989
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Seasonally adjusted
1 Total
2
3
4
5
Automobile
Revolving
Mobile home
Other
664,701
716,624
717,869
720,445
720,835
724,485
724,601
729,329
732,385
735,222
736,687
284,556
174,057
25,201
180,887
290,770
197,110
22,343
206,401
289,629
199,927
22,633
205,680
290,932
202,263
22,708
204,543
288,936
203,965
22,702
205,232
288,931
207,153
22,815
205,585
287,168
208,362
22,733
206,338
286,791
212,138
22,795
207,605
285,283
214,492
22,976
209,635
285,261
216,804
22,672
210,484
284,477
218,362
22,484
211,364
Not seasonally adjusted
6 Total
674,719
727,561
717,062
713,138
715,801
720,045
722,953
727,196
734,511
737,260
737,345
343,865
140,832
90,875
42,638
57,228
3,935
48,188
339,418
139,115
90,127
37,904
54,771
3,803
51,924
334,645
137,857
89,556
37,302
54,095
3,792
55,891
337,576
138,174
89,689
37,207
53,606
3,928
55,621
339,328
138,384
89,913
37,347
53,301
4,024
57,748
335,998
138,642
90,137
37,382
52,902
4,192
63,700
339,124
138,796
90,631
36,804
52,503
4,396
64,942
342,987
139,496
91,306
37,231
52,399
4,722
66,370
344,941
140,890
91,311
36,682
51,358
4,723
67,355
344,887
141,329
91,488
36,047
50,787
4,718
68,089
7
8
9
10
11
12
13
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings institutions
Gasoline companies
Pools of securitized assets
..
324,792
146,212
88,340
48,302
63,399
3,674
n.a.
14
15
16
17
By major type of credit3
Automobile
Commercial banks
Finance companies
Pools of securitized assets 2
284,328
123,392
97,245
n.a.
290,421
126,613
82,721
18,191
288,036
127,149
80,227
18,931
286,539
126,289
79,523
19,563
286,220
126,483
79,295
19,406
287,140
127,056
78,927
20,151
287,254
126,988
78,273
21,043
287,479r
126,986
77,716
21,692
288,221
128,079
77,205
21,562
289,255
128,937
78,116
21,239
287,805
128,167
78,033
20,785
18 Revolving
19 Commercial banks
20
Retailers
21
Gasoline companies
22
Pools of securitized assets 2
183,909
123,020
43,697
3,674
n.a.
208,188
130,956
37,967
3,935
22,977
200,147
124,821
33,378
3,803
26,204
199,937
122,024
32,794
3,792
29,542
201,783
124,039
32,721
3,928
29,403
204,854
125,433
32,857
4,024
30,913
206,820
122,116
32,884
4,192
36,076
209,582
124,569
32,325
4,396
36,786
213,119
125,967
32,735
4,722
38,194
214,853
126,995
32,212
4,723
39,606
216,266
127,927
31,601
4,718
40,798
25,143
9,025
7,191
22,283
9,155
4,716
22,726
9,162
5,410
22,426
9,142
5,178
22,484
9,231
5,168
22,610
9,295
5,224
22,644
9,296
5,266
22,873r
9,443
5,328
23,033
9,541
5,358
22,815
9,396
5,423
22,713
9,356
5,400
181,339
69,355
41,776
4,605
n.a.
206,669
77,141
53,395
4,671
7,020
206,153
78,286
53,478
4,526
6,789
204,236
77,190
53,156
4,508
6,786
205,314
77,823
53,711
4,486
6,812
205,441
77,544
54,233
4,490
6,684
206,235
77,598
55,103
4,498
6,581
207,252'
78,126
55,752
4,479
6,464
210,138
79,400
56,933
4,496
6,614
210,337
79,613
57,351
4,470
6,510
210,561
79,437
57,896
4,446
6,506
23 Mobile home
24
Commercial banks
25
Finance companies
26 Other
27
Commercial banks
28
Finance companies
29
Retailers
30
Pools of securitized assets 2
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. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
A40
DomesticNonfinancialStatistics • February 1991
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1990
Item
1987
1988
1989
Apr.
May
June
July
Aug.
Sept.
Oct.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 2
48-month new car
24-month personal
120-month mobile home 3
Credit card
Auto finance companies
New car
Used car
10.45
14.22
13.38
17.92
10.85
14.68
13.54
17.78
12.07
15.44
14.11
18.02
n.a.
n.a.
n.a.
n.a.
11.82
15.41
14.09
18.14
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.89
15.46
14.09
18.18
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.73
14.60
12.60
15.11
12.62
16.18
12.21
16.02
12.23
16.03
12.58
16.00
12.68
15.96
12.62
15.98
12.34
16.03
12.57
16.12
53.5
45.2
56.2
46.7
54.2
46.6
54.2
46.5
54.5
46.1
54.8
46.2
54.9
46.2
54.8
46.2
54.3
46.1
54.6
46.1
93
98
94
98
91
97
87
96
87
96
87
95
86
96
86
96
85
95
85
95
11,203
7,420
11,663
7,824
12,001
7,954
12,089
8,105
12,064
8,169
12,108
8,296
12,125
8,401
11,939
8,415
11,837
8,403
11,917
8,423
OTHER TERMS 4
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
Flow of Funds
1.57
A41
F U N D S R A I S E D I N U . S . CREDIT M A R K E T S
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1990
1989
Transaction category, sector
1985
1986
1987
1988
1989
QI
Q2
Q3
Q4
Qr
Q2'
Q3
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors..
848.1
836.9
687.0
760.8
678.2'
746.9r
666.8'
678.8'
620.2'
762.1
624.6
708.6
By sector and instrument
7 U.S. government
3 Treasury securities
4
Agency issues and mortgages
223.6
223.7
-.1
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
151.6r
150.0
1.6'
147.3
148.5
-1.2
100.1
95.0
5.1
msr
166.8
7.1'
185.0
189.6
-4.6
247.6
218.1
29.6
228.7
223.4
5.4
286.7
288.0
-1.3
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
Multifamily residential
11
1?
Commercial
Farm
13
624.5
451.2
135.4
73.5
242.2
156.8
29.8
62.2
-6.6
621.9
465.8
22.7
126.8
316.3
218.7
33.5
73.6
-9.5
542.1
453.2
49.3
79.4
324.5
234.9
24.4
71.6
-6.4
603.3
459.2
49.8
102.9
306.5
231.0
16.7
60.8
-2.1
526.6'
379.8'
30.4
73.7'
275.7
218.0
16.4
42.7
-1.5
599.6'
412.8
39.7
58.2
314.9
225.5
23.1
68.6
-2.3
566.7'
390.1
28.7
86.5
275.0
211.3
21.4
41.5
.9
504.9
369.2
34.1
62.7
272.4
221.0
11.8
40.9
-1.3
435.2'
347.0'
19.1
87.4'
240.5
214.3
9.5
19.9
-3.2
514.5
366.2
13.0
44.6
308.6
237.3
21.9
50.7
-1.4
395.8
331.4
21.9
66.9
242.7
225.4
-4.3
24.6
-3.0
422.0
294.0
25.9
38.1
230.0
207.9
.0
23.0
-.9
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
173.3
82.5
40.6
14.6
35.6
156.1
58.0
66.9
-9.3
40.5
88.9
33.5
10.0
2.3
43.2
144.1
50.2
39.8
11.9
42.2
146.8'
39.1
39.9
20.4
47.4'
186.8'
38.2
55.9
32.3
60.4'
176.5'
36.9
45.1
39.5
55.(y
135.6'
37.1
50.8
16.9
30.9
88.2'
44.1
7.7
-6.9
43.3'
148.3
14.6
19.6
69.7
44.4
64.4
9.8
6.5
-6.0
54.1
128.0
27.7
10.5
17.5
72.2
19
70
71
By borrowing sector
State and local governments
Households
Nonfinancial business
Nonfarm noncorporate
Corporate
624.5
90.9
284.5
249.1
-14.5
129.3
134.3
621.9
36.2
293.0
292.7
-16.3
99.2
209.7
542.1
48.8
302.2
191.0
-10.6
77.9
123.7
603.3
45.6
314.9
242.8
-7.5
65.7
184.6
526.6r
29.6
285.0'
211.9
1.6
50.8
159.5
599.6'
40.1
293.4'
266.1'
4.7
71.0
190.3
566.7'
33.3
264.0'
269.4
-5.0
56.9
217.4
504.9
28.6
290.8
185.4
-2.1
40.2
147.3
435.2'
16.5
291.8'
126.9^
8.9
35.0
83.1'
514.5
9.0
300.0
205.4
4.3
38.4
162.8
395.8
14.9
270.2
110.7
-6.1
25.5
91.3
422.0
20.5
283.4
118.1
3.9
24.3
89.9
26 Foreign net borrowing in United States
77
78
Bank loans n.e.c
79
Open market paper
30
U.S. government loans
1.2
3.8
-2.8
6.2
-6.0
9.7
3.1
-1.0
11.5
-3.9
4.5
7.4
-3.6
2.1
-1.4
6.3
6.9
-1.8
8.7
-7.5
10.9
5.3
-.1
13.3
-7.5
3.2
2.5
3.2
16.9
-19.4
-6.9
11.5
-3.2
-6.6
-8.7
30.4
8.1
3.7
20.7
-2.1
16.9
-1.0
-4.3
22.2
.1
-3.5
28.3
-6.7
-16.5
-8.6
41.1
27.0
-2.1
23.0
-6.9
26.3
1.6
2.7
27.3
-5.3
31 Total domestic plus foreign
849.3
846.6
691.5
767.1
689. r
750.1'
659.9'
709.2'
637.1'
758.6
665.7
734.9
??
?3
74
25
Financial sectors
201.3
285.1
300.2
247.6
205.5
356.6
154.1
123.9
187.3
198.5
172.5
214.3
101.5
20.6
79.9
1.1
154.1
15.2
139.2
-.4
171.8
30.2
142.3
-.8
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
194.0
70.0
124.0
.0
128.8
22.5
106.3
.0
124.8
13.2
111.6
.0
156.4
-4.7
161.1
.0
176.2
14.5
161.7
.0
183.7
17.3
166.4
.0
167.4
17.9
149.4
.0
99.7
50.9
.1
2.6
32.0
14.2
131.0
82.9
.1
4.0
24.2
19.8
128.4
78.9
.4
-3.2
27.9
24.4
127.8
51.7
.3
1.4
54.8
19.7
54.5
36.8
.0
1.8
26.9
-11.0
162.6
52.3
.3
1.0
50.1
58.9
25.3
28.5
.0
-.1
10.1
-13.1
-.9
26.7
.3
2.0
11.0
-41.0
30.9
39.6
-.4
4.2
36.3
-48.8
22.3
37.7
-.7
-2.2
9.4
-21.8
-11.2
64.1
.8
-.7
-44.7
-30.7
46.9
39.5
-1.4
1.7
37.3
-30.3
By sector
43 Total
201.3
285.1
300.2
247.6
205.5
356.6
154.1
123.9
187.3
198.5
172.5
214.3
44
45
46
47
48
49
50
51
52
53
21.7
79.9
99.7
-4.9
16.6
17.3
1.5
57.7
-.1
11.5
14.9
139.2
131.0
-3.6
15.2
20.9
4.2
54.7
.8
39.0
29.5
142.3
128.4
6.2
14.3
19.6
8.1
40.8
.3
39.1
44.9
74.9
127.8
-3.0
5.2
19.9
1.9
67.7
3.5
32.5
25.2
125.8
54.5
-1.4
6.2
-14.1
-1.4
46.3
-1.9
20.8
70.0
124.0
162.6
-11.1
9.4
60.8
-4.1
68.8
-1.8
40.6
22.5
106.3
25.3
2.5
2.9
-16.3
.0
40.4
-2.8
-1.4
13.2
111.6
-.9
3.5
16.5
-44.7
-2.3
23.5
-3.1
5.7
-4.7
161.1
30.9
-.7
-3.9
-56.2
.7
52.6
.1
38.2
14.5
161.7
22.3
-4.9
-12.8
-15.8
-8.3
29.8
-.5
34.7
17.3
166.4
-11.2
-7.9
-32.6
-52.7
5.9
27.8
-2.0
50.3
17.9
149.4
46.9
-14.4
-22.7
-38.0
1.2
87.1
-1.5
35.3
32 Total net borrowing by financial sectors . . .
33
34
35
36
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
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
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 1991
1.57—Continued
1989
Transaction category, sector
1985
1986
1987
1988
1990
1989
Ql
Q2
Q3
Q4
Qlr
Q2'
Q3
All sectors
54
55
56
57
58
59
60
61
62
63
Total net borrowing
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
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
1,050.6
1,131.7
991.7
1,014.7
894.5'
1,106.7'
814.0'
833.0'
824.4'
957.1
838.2
949.2
324.2
135.4
128.2
242.2
82.5
40.3
52.8
45.0
369.5
22.7
212.8
316.4
58.0
69.9
26.4
56.1
317.5
49.3
165.7
324.9
33.5
3.2
32.3
65.5
277.2
49.8
161.5
306.7
50.2
39.4
75.4
54.4
302.6'
30.4
115.8'
275.7
39.1
41.5
60.6
28^
341.3
39.7
113.0
315.2
38.2
60.2
99.3
228.9
28.7
126.5
275.0
36.9
41.9
42.9
33.2'
298.7'
34.1
97.6
272.7
37.1
56.5
48.5
-12.2
341.4
19.1
125.9'
240.1
44.1
7.5
51.6
-5.4'
423.8
13.0
110.5
307.9
14.6
10.6
62.7
14.0
412.5
21.9
158.0
243.5
9.8
3.7
-27.7
16.5
454.0
25.9
79.2
228.7
27.7
15.0
82.1
36.6
14.4
.0
-7.9
10.4
-5.9
-14.3
20.7
-22.7
-7.3
21.5
-40.5
18.8
833.7
209.3
836.9
215.0
694.9
152.8
750.4
147.1
701.6'
196.7'
627.6'
192.4
740.6
226.2
665.1
269.2
689.8
267.9
-4.8
50.5
-11.9
53.1
-57.9
-69.0
9.9
1.2
76.5
-26.0
-48.0
.3
21.7
51.7
-63.7
-74.0
8.4
2.0
684.1'
157.5'
99.9r
761.2'
161.6
646.1'
79.4
External corporate equity funds raised in United States
66
67
68
69
10
71
Total net share issues
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
17.2
86.8
10.9
-124.2
-63.7'
-165.8'
-43.0'
-61.0'
84.4
-67.2
-84.5
13.6
3.7
159.0
-72.2
-85.0
11.6
1.2
73.9
-63.0
-75.5
14.6
-2.1
1.1
-125.3
-129.5
3.3
.9
41.3
-105.1'
-124.2
2.4'
16.7
1.0
-166.8'
-172.3
1.0'
4.5
34.0
-77.C
-98.7
4.3'
17.4
57.9
—I I 8 . Y
-146.3
-.1'
27.5
72.4
-57.6'
-79.3
4.5'
17.2
Flow of Funds
1.58
A43
D I R E C T A N D I N D I R E C T S O U R C E S O F F U N D S TO C R E D I T M A R K E T S
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1990
1989
Transaction category, or sector
1985
1986
1988
1987
1989r
Ql
Q2'
Q3'
Q4'
Ql'
Q2'
Q3
666.8
678.8
620.2
762.1
624.6
708.6
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
848.1
836.9
687.0
760.8
678.2
746.9'
By public agencies and foreign
2 Total net advances
U.S. government securities
3
4
Residential mortgages
5
FHLB advances to thrifts
Other loans and securities
6
202.0
45.9
94.6
14.2
47.3
280.2
69.4
136.3
19.8
54.7
248.8
70.1
139.1
24.4
15.1
210.7
85.2
86.3
19.7
19.4
187.6
30.7
137.9
-11.0
30.0
312.8
83.1
126.0
58.9
44.8
15.5
-103.3
119.7
-13.1
12.1
218.3
115.7
127.7
-41.0
15.8
203.8
27.1
178.3
-48.8
47.1
233.7
16.9
182.1
-21.8
56.5
313.3
93.5
210.6
-30.7
39.8
283.0
97.3
181.7
-30.3
34.2
17.8
103.5
18.4
62.3
9.7
153.3
19.4
97.8
-7.9
169.3
24.7
62.7
-9.4
112.0
10.5
97.6
-2.4
125.3
-7.3
72.1
-.2
188.2
8.1
116.7
-6.0
28.0
-1.6
-4.9
-9.3
126.4
-31.2
132.4
5.7
158.4
-4.6
44.2
33.6
184.0
-6.7
22.8
42.7
165.8
39.7
65.0
30.9
150.5
23.7
77.9
101.5
1.2
154.1
9.7
171.8
4.5
119.8
6.3
151.0
10.9
194.0
3.2
128.8
-6.9
124.8
30.4
156.4
16.9
176.2
-3.5
183.7
41.1
167.4
26.3
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
748.8
278.2
135.4
40.6
91.8
216.9
14.2
720.5
300.1
22.7
89.7
115.9
212.0
19.8
614.5
247.4
49.3
66.9
120.2
155.2
24.4
676.2
192.1
49.8
91.3
161.3
201.4
19.7
652.5
271.9
30.4
66.1
96.5
176.6
-11.0
631.3'
258.2
39.7
36.8
122.6
232.9'
58.9
773.3
332.2
28.7
91.1
113.0
195.2
-13.1
615.7
183.0
34.1
65.6
105.1
186.9
-41.0
589.7
314.3
19.1
70.6
45.5
91.5
-48.8
701.1
406.9
13.0
56.8
77.2
125.4
-21.8
536.1
318.9
21.9
71.4
10.5
82.7
-30.7
619.3
356.7
25.9
35.5
26.2
144.7
-30.3
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21
Commercial banking
22
Savings institutions
23
Insurance and pension funds
24
Other finance
578.0
188.4
87.9
150.1
151.6
730.0
198.1
107.6
160.1
264.2
528.4
135.4
136.8
179.7
76.6
562.3
156.3
120.4
198.7
86.9
511.1
177.3
-90.9
177.9
246.8
474.1'
180.4
16.5'
182.1'
95.1
600.9
345.9
623.4
160.9
183.7
184.3
- 4 2 . 3 -135.8 -201.9
205.1
188.1
136.1
294.2
436.0
161.9
326.9
187.9
-56.4
138.0
57.3
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
32
Other, net
578.0
212.1
99.7
266.1
19.7
10.3
131.7
104.4
730.0
277.1
131.0
321.8
12.9
1.7
119.9
187.3
528.4
162.8
128.4
237.1
43.7
-5.8
135.4
63.9
562.3
229.2
127.8
205.3
9.3
7.3
177.6
11.0
511.1
225.2
54.5
231.4
-9.9
-3.4
140.5
104.2
474.1'
140.9'
162.6
170.6'
-14.1'
-12.6
162.3'
35.1'
600.9
267.4
25.3
308.2
-35.4
13.9
123.2
206.4
345.9
284.4
-.9
62.3
30.4
-19.9
82.6
-30.8
623.4
208.0
30.9
384.6
-20.6
5.0
193.9
206.3
326.9
117.0
22.3
187.6
45.3
11.9
120.3
10.0
241.7
18.3
-11.2
234.6
11.6
-15.4
179.5
58.9
418.6
78.4
46.9
293.3
125.6
16.2
142.0
9.5
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36
Corporate and foreign bonds
37
Open market paper
38
Other
270.5
157.8
37.7
3.8
51.6
19.6
121.5
27.0
-19.9
52.9
9.9
51.7
214.6
86.0
61.8
23.3
15.8
27.6
241.7
129.0
53.5
-9.4
36.4
32.2
195.9
134.3
28.4
.7
5.4
27.1
319.7'
199.8'
56.7
-16.5'
47.3'
32.5'
197.7
136.2
5.1
9.4
17.8
29.2
268.9
196.8
39.0
-4.7
21.4
16.4
-2.8
4.3
12.8
14.6
-64.6
30.1
396.5
281.2
.9
28.4
43.3
42.7
283.3
185.7
9.2
14.1
43.2
31.1
247.6
244.2
12.2
-19.1
-29.8
40.1
39 Deposits and currency
40
Currency
41
Checkable deposits
42
Small time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
222.8
12.4
41.4
138.5
7.2
7.4
17.7
-1.7
297.5
14.4
96.4
120.6
43.2
-3.2
20.2
5.9
179.3
19.0
-.9
76.0
28.9
37.2
21.6
-2.5
232.8
14.7
12.9
122.4
20.2
40.8
32.9
-11.2
241.3
11.7
1.5
100.5
85.2
23.1
14.9
4.4
182.2'
17.8
-33.<r
30.7'
39.4
68.5
35.4'
23.5
290.6
12.8
-41.7
99.0
119.2
61.1
29.8
10.4
261.8
6.0
14.7
163.1
116.7
-23.8
13.7
-28.6
230.6
10.1
65.8
109.1
65.6
-13.4
-19.2
12.4
141.6
25.9
-10.9
112.0
72.8
-22.2
-34.8
-1.3
41.2
22.9
-4.1
9.4
5.8
-7.4
14.6
.0
117.3
32.0
13.1
38.3
120.9
-78.2
-15.7
7.0
47 Total of credit market instruments, deposits, and
currency
493.3
419.0
393.9
474.5
437.2
502.0'
488.3
530.7
227.7
538.1
324.4
364.9
23.8
77.2
82.0
33.1
101.3
110.7
36.0
86.0
106.4
27.5
83.2
106.9
27.2
78.3
62.2
41.7
75.1'
102.6'
2.3
77.7
-40.3
30.8
56.2
162.8
32.0
105.7
23.6
30.8
46.6
68.1
47.1
45.1
76.6
38.5
67.6
203.5
-124.2
-63.7 -165.8'
-43.0
-61.0
14.9
-4.8
50.5
-11.9
34.0
57.9
- 7 7 . 0 -118.9
-14.1
6.1
-28.9 -67.1
72.4
-57.6
76.9
-62.1
53.1
-57.9
63.4
-68.2
76.5
-26.0
114.7
-64.2
51.7
-63.7
41.8
-53.7
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
52
Mutual fund shares
53
Other equities
54 Acquisitions by financial institutions
55 Other net purchases
17.2
86.8
10.9
84.4
-67.2
46.9
-29.7
159.0
-72.2
50.9
35.9
73.9
-63.0
32.0
-21.2
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.
1.0
1.1
41.3
-125.3 -105.1 -166.8'
-.2
-2.9
17.2
-121.4 -80.9 -165.6'
418.6
241.7
106.3
125.8
-215.8 -158.9
176.8
201.9
294.4
129.8
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 1991
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1989
1990
Q2
Ql
Q3
Q4
Ql'
Q2'
Q3
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
6,804.5
7,646.3
8,343.9
9,0%.0
9,267.7
9,438.7r
9,605.1'
9,805.2'
9,975.7
10,136.3
10,309.4
By sector and instrument
2 U.S. government
Treasury securities
i
4
Agency issues and mortgages
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,117.8
2,095.2
22.6
2,155.7
2,133.4
22.3
2,165.7
2,142.1
23.6
2,206.1'
2,180.7
25.4'
2,269.4'
2,245.2
24.2'
2,360.9
2,329.3
31.6
2,401.7
2,368.8
32.9
2,470.2
2,437.6
32.6
5 Private domestic nonfinancial sectors
b
Debt capital instruments
/
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
Farm
U
5,204.1
3,485.2
655.5
542.6
2,287.1
1,490.2
213.0
478.1
105.9
5,831.0
3,962.7
679.1
669.4
2,614.2
1,720.8
246.2
551.4
95.8
6,383.6
4,427.9
728.4
748.8
2,950.7
1,943.1
270.0
648.7
88.9
6,978.2
4,886.4
790.8
851.7
3,243.8
2,173.9
286.7
6%.4
86.8
7,112.0r
4,989.1
798.6
866.3'
3,324.2
2,229.0
293.1
716.2
86.0
7,273.<y
5,091.4
804.9
887.9
3,398.6
2,287.6
298.3
725.9
86.8
7,399.0'
5,189.9
816.4
903.5
3,470.0
2,347.6
301.2
734.9
86.3
7,535.8'
5,283.3'
821.2
925.4'
3,536.6
2,404.3
304.4
742.6
85.3
7,614.8
5,355.5
822.4
936.5
3,5%.6
2,450.0
307.8
754.1
84.7
7,734.6
5,443.2
826.7
953.3
3,663.3
2,512.8
306.5
759.4
84.5
7,839.2
5,523.0
836.3
%2.8
3,724.0
2,569.3
306.6
763.9
84.2
14
15
16
11
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,718.9
601.8
602.3
72.2
442.6
1,868.2
659.8
666.0
62.9
479.6
1,955.7
693.2
673.3
73.8
515.3
2,091.9
743.5
713.1
85.7
549.6
2,122.9'
741.7
725.6
%.l
559.4
2,181.6'"
756.7
740.3
110.1
574.5'
2,209.1'
771.0
750.7
113.3
574.1'
2,252.6'
790.6
763.0
107.1
591.9'
2,259.3
774.3
756.3
126.0
602.6
2,291.4
783.3
761.8
128.7
617.6
2,316.2
794.4
762.6
131.8
627.4
19
20
21
11
2i
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
5,204.1
473.9
2,296.0
2,434.2
173.4
898.3
1,362.4
5,831.0
510.1
2,5%. 1
2,724.8
156.6
997.6
1,570.6
6,383.6
558.9
2,879.1
2,945.6
145.5
1,075.4
1,724.6
6,978.2
604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5
7,112.0r
612.4
3,257.9
3,241.7'
136.7
1,163.9
1,941.0
7,273.0'
619.9
3,330.7'
3,322.5
139.5
1,177.6
2,005.3
7,399.0'
629.9
3,411.4'
3,357.6
139.2
1,183.0
2,035.5'
7,535.8'
634.1
3,501.8'
S^OO.C
139.2
1,195.9
2,064.8
7,614.8
634.3
3,544.5
3,436.1
138.2
1,206.5
2,091.4
7,734.6
636.8
3,619.8
3,478.0
140.7
1,212.4
2,124.8
7,839.2
645.1
3,698.1
3,4%. 1
141.8
1,213.9
2,140.4
236.7
71.8
27.9
33.9
103.0
238.3
74.9
26.9
37.4
99.1
244.6
82.3
23.3
41.2
97.7
253.9
89.2
21.5
49.9
93.2
254.0
90.4
21.6
54.4
87.5
252.2
92.1
21.5
52.7
85.8
257.7
94.2
22.6
57.5
83.4
261.5'
94.5
21.4
63.0
82.6'
260.4
102.1
19.0
59.3
80.0
271.7
107.5
19.3
65.1
79.8
277.3
108.0
20.0
71.5
77.8
7,041.1
7,884.7
8,588.5
9,349.9
9,521.7
9,690.8r
9,862.8'
10,066.8'
10,236.1
10,408.0
10,586.6
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
JO
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
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan B a n k s . . .
43 Total, by sector
44
45
46
47
48
49
50
51
52
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
1,213.2
1,529.8
1,836.8
2,084.4
2,191.3
2,234.1
2,263.8
2,322.4
2,356.3
2,403.4
2,455.2
632.7
257.8
368.9
6.1
580.5
204.5
2.7
32.1
252.4
88.8
810.3
273.0
531.6
5.7
719.5
287.4
2.7
36.1
284.6
108.6
978.6
303.2
670.4
5.0
858.2
366.3
3.1
32.8
322.9
133.1
1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8
1,140.8
364.3
771.5
5.0
1,050.5
458.6
3.5
32.2
392.5
163.8
1,169.5
369.0
795.6
5.0
1,064.6
466.1
3.5
33.8
399.4
161.9
1,203.6
370.4
828.2
5.0
1,060.2
472.7
3.5
34.1
398.8
151.1
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,286.1
376.0
905.2
5.0
1,070.2
491.7
3.2
33.2
409.1
132.9
1,328.0
378.9
944.2
5.0
1,075.3
508.2
3.5
34.8
402.5
126.3
1,372.9
381.1
986.8
5.0
1,082.3
518.0
3.1
34.9
408.5
117.9
1,213.2
1,529.8
1,836.8
2,084.4
2,191.3
2,234.1
2,263.8
2,322.4
2,356.3
2,403.4
2,455.2
263.9
368.9
580.5
79.2
106.2
98.9
4.4
261.2
5.6
25.0
278.7
531.6
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
670.4
858.2
81.8
131.1
139.4
16.7
378.8
7.3
103.1
353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7
369.3
771.5
1,050.5
73.3
140.0
170.1
17.8
464.3
11.1
173.8
374.0
795.6
1,064.6
75.7
141.2
167.9
17.7
478.0
10.6
173.5
375.4
828.2
1,060.2
77.0
144.0
155.7
17.5
481.2
10.0
174.9
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
4%. 2
10.1
184.4
381.0
905.2
1,070.2
73.4
140.8
137.1
15.4
500.3
10.1
193.1
383.8
944.2
1,075.3
73.3
133.0
125.8
16.6
511.1
9.8
205.7
386.1
986.8
1,082.3
70.2
126.0
114.8
17.4
529.9
9.5
214.5
12,592.4
12,811.4
13,041.8
3,642.0
822.4
1,530.3
3,599.9
774.3
808.6
594.5
820.5
3,724.8
826.7
1,569.0
3,666.7
783.3
815.9
596.3
828.7
3,838.1
836.3
1,588.8
3,727.1
794.4
817.6
611.7
828.0
All sectors
54 Total credit market debt
8,254.4
9,414.4
10,425.3
11,434.3
55
56
57
58
59
60
61
62
2,227.0
655.5
818.9
2,289.8
601.8
662.4
358.5
640.5
2,620.0
679.1
1,031.7
2,617.0
659.8
729.0
384.9
693.1
2,933.9
728.4
1,197.4
2,953.8
693.2
729.5
437.9
751.1
3,211.1
790.8
1,358.9
3,247.2
743.5
768.9
513.4
800.5
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
11,713.0' 11,925.0' 12,126.6' 12,389.1'
3,291.5
798.6
1,415.2
3,327.7
741.7
779.5
543.0
815.7
3,330.3
804.9
1,446.1
3,402.1
756.7
795.6
562.2
827.1'
3,404.7'
816.4
1,470.5
3,473.6
771.0
807.4
569.6
813.5'
3,513.7'
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4'
Flow of Funds
1.60
A45
SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1990
1989
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1985
1986
1987
1988
Ql'
Q2r
Q3 r
Q4'
Ql'
Q2r
Q3
10,136.3 10,309.4
6,804.5
7,646.3
8,343.9
9,096.0
9,267.7
9,438.7
9,605.1
9,805.2
9,975.7
1,474.0
435.4
518.2
88.8
431.6
1,779.4
509.8
678.5
108.6
482.4
2,006.6
570.9
814.1
133.1
488.6
2,199.7
651.5
900.4
152.8
495.1
2,256.0
665.0
927.2
163.8
500.0
2,263.5
642.7
954.4
161.9
504.5
2,317.4
668.6
991.1
151.1
506.6
2,379.3
682.1
1,038.4
141.8
517.0
2,419.9
679.2
1,077.7
132.9
530.2
2,503.1
706.1
1,127.6
126.3
543.1
2,574.2
727.4
1,178.2
117.9
550.7
7 Total held, by type of lender
8
U.S. government
9
Sponsored credit agencies and mortgage pools . . .
10
Monetary authority
11
Foreign
1,474.0
248.6
659.8
186.0
379.5
1,779.4
255.3
835.9
205.5
482.8
2,006.6
240.0
1,001.0
230.1
535.5
2,199.7
217.6
1,113.0
240.6
628.5
2,256.0
212.9
1,151.1
235.4
656.6
2,263.5
211.5
1,157.8
238.4
655.7
2,317.4
207.8
1,193.5
227.6
688.5
2,379.3
207.1
1,238.2
233.3
700.6
2,419.9
216.2
1,274.0
224.4
705.2
2,503.1
228.1
1,315.0
237.8
722.1
2,574.2
235.3
1,356.8
240.8
741.4
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
632.7
236.7
810.3
238.3
978.6
244.6
1,098.4
253.9
1,140.8
254.0
1,169.5
252.2
1,203.6
257.7
1,249.3
261.5
1,286.1
260.4
1,328.0
271.7
1,372.9
277.3
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
6,199.9
1,791.6
655.5
517.3
1,185.1
2,139.3
88.8
6,915.6
2,110.1
679.1
606.6
1,288.5
2,339.8
108.6
7,560.4
2,363.0
728.4
674.3
1,399.0
2,528.7
133.1
8,248.5
2,559.7
790.8
765.6
1,560.2
2,724.9
152.8
8,406.5
2,626.5
798.6
776.5
1,594.9
2,773.7
163.8
8,596.9
2,687.6
804.9
797.7
1,631.5
2,837.0
161.9
8,749.0
2,736.1
816.4
814.5
1,657.7
2,875.3
151.1
8,936.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
9,102.3
2,962.8
822.4
847.5
1,680.1
2,922.4
132.9
9,233.0
3,018.6
826.7
863.3
1,691.8
2,958.9
126.3
9,385.3
3,110.6
836.3
872.6
1,697.7
2,986.0
117.9
Private financial intermediation
21 Credit market claims held by private financial
institutions
?? Commercial banking
73
Savings institutions
24
Insurance and pension funds
25
Other finance
5,289.4
1,989.5
1,191.2
1,365.3
743.4
6,018.0
2,187.6
1,297.9
1,525.4
1,007.1
6,564.5
2,323.0
1,445.5
1,705.1
1,091.0
7,128.6
2,479.3
1,567.7
1,903.8
1,177.9
7,269.9
2,501.4
1,570.6
1,954.4
1,243.5
7,424.6
2,549.0
1,561.0
1,999.0
1,315.6
7,507.8
2,599.6
1,530.3
2,031.6
1,346.2
7,662.7
2,656.6
1,480.7
2,081.6
1,443.8
7,747.2
2,680.4
1,461.5
2,121.7
1,483.6
7,813.2
2,720.7
1,408.4
2,169.1
1,515.0
7,913.6
2,751.6
1,372.7
2,211.5
1,577.8
?6 Sources of funds
71
Private domestic deposits and RPs
28
Credit market debt
5,289.4
2,926.1
580.5
6,018.0
3,199.0
719.5
6,564.5
3,354.2
858.2
7,128.6
3,599.1
986.1
7,269.9
3,627.7
1,050.5
7,424.6
3,679.1
1,064.6
7,507.8
3,742.5
1,060.2
7,662.7
3,824.3
1,073.0
7,747.2
3,847.5
1,070.2
7,813.2
3,833.5
1,075.3
7,913.6
3,845.2
1,082.3
?9
30
31
37
33
1,782.9
5.6
25.8
1,289.3
462.1
2,099.5
18.6
27.5
1,398.5
655.0
2,352.1
62.3
21.6
1,527.8
740.3
2,543.5
71.5
29.0
1,692.5
750.5
2,591.7
59.3
13.5
1,737.3
781.5
2,680.9
49.4
34.4
1,770.0
827.2
2,705.1
55.0
30.3
1,785.7
834.0
2,765.5
61.6
25.6
1,826.0
852.3
2,829.5
63.4
16.7
1,860.8
888.6
2,904.4
66.3
32.1
1,907.8
898.2
2,986.1
95.4
36.6
1,941.7
912.4
Private domestic nonfinancial investors
34 Credit market claims
35
U.S. government securities
36 Tax-exempt obligations
37
Corporate and foreign bonds
38 Open market paper
39 Other
1,491.0
803.3
231.5
37.1
135.2
283.8
1,617.0
848.7
212.6
90.5
145.1
320.1
1,854.1
936.7
274.4
114.0
178.5
350.4
2,106.0
1,072.2
340.9
100.4
218.0
374.4
2,187.1
1,100.0
348.8
126.4
225.8
386.0
2,236.9
1,122.9
353.8
128.2
236.7
395.3
2,301.5
1,171.3
363.1
131.1
239.3
396.8
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,425.3
1,264.1
362.8
154.1
229.6
414.7
2,495.1
1,296.9
368.1
157.6
247.7
424.8
2,554.0
1,357.4
371.3
156.9
237.6
430.8
40 Deposits and currency
41
Currency
47
Checkable deposits
43
Small time and savings accounts
44
Money market fund shares
45
Large time deposits
46
Security RPs
47
Deposits in foreign countries
3,116.8
171.9
420.3
1,831.9
225.6
339.9
108.3
18.8
3,410.1
186.3
516.6
1,948.3
268.9
336.7
128.5
24.8
3,583.9
205.4
515.4
2,017.1
297.8
373.9
150.1
24.3
3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1
3,864.2
220.7
494.2
2,168.9
342.7
430.8
191.1
15.8
3,926.2
226.4
495.0
2,189.3
362.1
435.7
196.9
20.7
3,979.0
224.4
486.1
2,224.4
391.0
440.0
200.9
12.1
4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6
4,095.8
234.4
501.3
2,289.8
436.7
431.5
188.3
13.9
4,092.6
242.7
510.7
2,288.1
426.3
417.9
190.5
16.4
4,108.9
247.2
500.2
2,292.3
456.7
409.0
186.9
16.6
48 Total of credit market instruments, deposits, and
currency
4,607.8
5,027.2
5,438.0
5,938.2
6,051.2
6,163.0
6,280.5
6,420.7
6,521.1
6,587.7
6,663.0
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
20.9
85.3
385.1
22.6
87.0
501.3
23.4
86.8
597.8
23.5
86.4
700.1
23.7
86.5
715.9
23.4
86.4
705.1
23.5
85.8
743.5
23.6
85.7
762.3
23.6
85.1
768.6
24.0
84.6
788.4
24.3
84.3
836.7
MEMO: Corporate equities not included above
52 Total market value
2,823.9
3,360.6
3,325.0
3,619.8
3,730.5
4,069.7
4,395.4
4,378.9
4,170.2
4,336.2
3,769.7
53
54
Mutual fund shares
Other equities
240.2
2,583.7
413.5
2,947.1
460.1
2,864.9
478.3
3,141.6
486.3
3,244.2
514.8
3,555.0
543.9
3,851.5
555.1
3,823.8
550.3
3,620.0
587.9
3,748.3
547.3
3,222.4
55
56
Holdings by financial institutions
Other holdings
800.3
2,023.6
974.6
2,385.9
1,039.5
2,285.5
1,176.1
2,443.7
1,237.2
2,493.3
1,343.0
2,726.8
1,478.5
2,917.0
1,492.3
2,886.6
1,440.4
2,729.8
1,558.3
2,778.0
1,334.2
2,435.4
7
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
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3 - 6 or 8-11.
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 21Aine 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 1991
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1990
Measure
1987
1988
1989
Mar.
Apr.
May
June
July
Aug.
Sept.'
Oct.
Nov.
1 Industrial production (1987 = 100)'
100.0
105.4
108.1
108.9
108.8
109.4
110.1
110.4
110.5'
110.4
109.4'
107.5
Market groupings
Products, total (1987 = 100)
Final, total (1987 = 100)
Consumer goods (1987 = 100)
Equipment (1987 = 100)
Intermediate (1987 = 100)
Materials (1987 = 100)
100.0
100.0
100.0
100.0
100.0
100.0
105.3
105.6
104.0
107.6
104.4
105.6
108.6
109.1
106.7
112.3
106.8
107.4
110.1
110.7
107.5
114.9
108.2
107.1
109.8
110.4
107.2
114.7
108.0
107.3
110.5
111.2
107.4
116.2
108.3
107.7
110.9
111.7
107.8
116.8
108.3
108.8
110.9
111.7
107.5
117.2
108.4
109.6
110.9
111.9'
107.8
117.2'
107.9'
109.7'
111.1
112.3
108.1
117.8
107.1
109.3
110.1
111.4
107.0'
117.0r
106.3
108.2'
108.4
109.4
104.9
115.3
105.2
106.2
100.0
105.8
108.9
109.8
109.5
110.3
110.8
111.1
111.1
111.0
110.1'
108.2
2
3
4
5
6
7
Industry
groupings
8 Manufacturing (1987 = 100)
Capacity utilization (percent) 2
9
Manufacturing
10 Construction contracts (1982 = 100)3
81.4
83.9
83.9
82.9
82.5
82.8
83.0
83.0
82.8'
82.5
81.6'
80.0
164.8
166.4
169. r
157.0
147.0
155.0
153.0
148.0
146.0
166.0
167.0
166.0
11
12
13
14
15
16
17
18
19
20
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production- worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 5
Retail sales®
123.9
101.5
96.6
91.7
133.3
234.3
226.4
183.8
231.6
213.6
128.0
103.7
98.6
93.7
138.2
253.2
244.6
196.5
252.2
228.0
131.7
105.3
99.6
94.6
142.7
272.7
258.9
203.1
270.1
240.6
133.5
103.8
97.6
92.4
146.0
285.8
268.6
204.6
283.9
248.7
133.6
103.4
97.5
92.3
146.2
286.4
269.9
203.9
283.6
246.3
134.1
103.5
97.4
92.1
147.0
287.5
271.2
205.8
284.4
246.1
134.4
103.4
97.3
92.0
147.4
288.7
272.8
206.8
285.8
248.9
134.3
103.1
97.2
92.0
147.3
290.1
274.4
206.9
286.9'
250.1
134.1
102.8
96.9
91.7
147.3
290.8'
274.5'
206.7
287.6'
250.2
134.1
102.4
96.6
91.2
147.4
292.2
276.4
207.0
288.7
252.4
133.9'
101.8'
96.3
90^
147.4
292.2
274.9
206.0
288.7
252.9'
133.6
100.7
95.2
89.8
147.3
293.0
274.5
202.6
289.5
252.5
21
22
Prices 7
Consumer (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
113.6
105.4
118.3
108.0
124.0
113.6
128.7
117.2
128.9
117.2
129.2
117.7
129.9
117.8
130.4
118.2'
131.6
119.2
132.7
120.3
133.5
122.3
133.8
122.9
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76
(April 1990), pp. 187-204.
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 latest month are preliminary and the
prior three months have been revised. See "Recent Developments in Industrial
Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp.
411-35.
Selected Measures
2.11
A47
LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1990
Category
1987
1988
1989
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
185,010
186,837
188,601
189,844
189,983
190,122
190,275
190,411
190,568
190,717
190,854
2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries
5
Agriculture
122,122
119,865
123,893
121,669
126,077
123,869
127,061
124,886
127,159
125,004
126,981
124,836
126,906
124,767
126,810
124,660
127,134
124,967
126,976
124,784
126,773
124,616
109,232
3,208
111,800
3,169
114,142
3,199
114,983
3,133
115,045
3,305
115,041
3,348
114,867
3,085
114,521
3,137
114,717
3,181
114,545
3,167
114,071
3,190
7,425
6.2
62,888
6,701
5.5
62,944
6,528
5.3
62,524
6,770
5.4
62,783
6,653
5.3
62,824
6,447
5.2
63,141
6,814
5.5
63,369
7,003
5.6
63,601
7,069
5.7
63,434
7,073
5.7
63,741
7,355
5.9
64,081
102,200
105,584
108,573
110,177
110,617
110,829
110,740
110,613
110,612'
110,434'
110,167
19,024
717
4,967
5,372
24,327
6,547
24,236
17,010
19,403
721
5,125
5,548
25,139
6,676
25,600
17,372
19,611
722
5,302
5,703
25,807
6,814
26,889
17,726
19,190
734
5,256
5,809
26,141
6,823
27,969
18,255
19,167
738
5,286
5,833
26,164
6,838
28,094
18,497
19,148
744
5,270
5,846
26,205
6,844
28,225
18,547
19,131
745
5,229
5,841
26,225
6,842
28,287
18,440
19,084
735
5,194
5,846
26,222
6,852
28,387
18,293
19,019'
736
5,176'
5,870'
26,214'
6,851'
28,440'
18,306'
18,949'
735
5,095'
5,874'
26,137'
6,847'
28,463'
18,334'
18,749
742
5,033
5,870
26,057
6,836
28,543
18,337
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
Domestic Nonfinancial Statistics • February 1991
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1989
Q4
1990
Ql
Q2
1989
Q3r
Output (1987 = 100)
Q4
1990
Ql
Q2
1989
Q3
Q4
Capacity (percent of 1987 output)
1990
Ql
Q3r
Q2
Utilization rate (percent)
1 Total industry
108.1
108.3
109.4
110.4
129.5
130.3
131.2
132.1
83.5
83.1
83.4
2 Manufacturing
108.7
109.2
110.2
111.1
131.1
132.1
133.2
134.2
82.9
82.6
82.8
82.7
3
Primary processing
106.1
106.4
106.3
107.5
123.4
124.2
124.9
125.7
85.9
85.7
85.1
85.6
4
5
6
7
8
9
10
11
12
13
Advanced processing
Durable
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
109.9
110.0
104.8
105.3
104.5
106.4
121.9
110.1
99.1
110.5
110.4
105.1
106.1
107.1
104.6
124.4
111.1
91.5
112.1
112.4
102.3
107.4
107.5
107.1
126.7
112.2
102.6
112.7
113.5
101.3
112.0
114.2
108.9
128.6
112.4
103.7
134.7
135.2
122.3
126.9
131.5
120.2
150.1
136.0
132.0
135.8
136.2
123.2
127.2
131.9
120.4
151.6
137.4
132.5
137.0
137.2
124.1
127.3
132.0
120.6
153.2
138.8
133.5
138.2
138.3
125.0
127.4
132.1
120.9
154.9
140.2
134.5
81.6
81.3
85.7
83.0
79.5
88.5
81.2
81.0
75.1
81.4
81.0
85.3
83.4
81.2
86.9
82.1
80.9
69.0
81.8
81.9
82.5
84.3
81.4
88.8
82.7
80.8
76.9
81.5
82.1
81.1
87.9
86.4
90.1
83.0
80.2
77.2
106.7
111.6
113.6
114.5
132.5
133.4
134.3
135.2
80.6
83.6
84.6
84.7
14
15
16
17
18
19
Nondurable
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
107.1
100.3
104.2
108.9
106.2
106.8
107.7
101.1
103.9
109.9
111.7
109.9
107.5
102.4
104.5
109.9
116.3
106.0
107.9
101.1
107.2
110.6
117.2
110.0
125.9
115.5
113.3
132.1
123.7
121.0
126.9
116.0
113.9
133.4
126.1
121.1
128.0
116.6
114.7
134.7
128.4
121.1
129.0
117.1
115.5
135.9
130.6
121.1
85.0
86.9
92.0
82.5
85.8
88.3
84.8
87.2
91.2
82.4
88.6
90.8
84.0
87.9
91.1
81.6
90.6
87.5
83.6
86.4
92.9
81.3
89.7
90.9
100.6
110.6
111.8
101.3
105.7
108.4
102.5
107.8
111.0
103.4
110.6
112.8
116.1
125.7
120.8
115.7
126.0
121.1
115.2
126.4
121.6
114.8
126.7
122.1
86.7
88.0
92.6
87.6
83.9
89.5
88.9
85.3
91.3
90.0
87.3
92.4
Latest cycle 3
1989
Low
Nov.
July
Aug/
Sept/
Oct/
Nov.P
80.9
20 Mining
21 Utilities
22 Electric
Previous cycle 2
High
Low
High
83.6
1990
Apr.
May
June
Capacity utilization rate (percent)
23 Total industry
89.2
72.6
87.3
71.8
83.5
83.1
83.4
83.7
83.8
83.6
83.3
82.4
24 Manufacturing
88.9
70.8
87.3
70.0
83.0
82.5
82.8
83.0
83.0
82.8
82.5
81.6
80.0
25
Primary processing
92.2
68.9
89.7
66.8
86.1
85.0
84.9
85.5
86.0
85.9
84.7
83.8
82.4
26
27
28
29
30
31
32
33
34
35
Advanced processing
Durable
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation
equipment
87.5
88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4
72.0
68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1
86.3
86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0
71.4
65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5
81.7
81.4
85.7
82.6
79.1
88.0
81.9
81.0
75.0
81.5
81.2
83.4
83.6
80.8
87.9
82.3
80.5
71.9
82.0
82.1
81.9
83.4
79.9
88.8
82.8
81.0
77.9
81.9
82.4
82.0
86.0
83.6
89.8
82.9
81.0
80.7
81.7
82.2
83.1
86.6
83.7
90.9
83.1
80.3
76.6
81.4
82.1
80.4
89.9
89.6
90.5
83.1
80.3
75.1
81.5
81.9
79.7
87.1
86.0
88.9
82.7
80.0
79.8
80.7
80.8
78.7
84.6
83.4
86.6
82.0
78.7
76.9
78.9
78.6
75.2
84.0
83.2
85.1
81.2
78.1
63.1
77.0
66.6
81.1
66.9
80.2
84.6
84.5
84.5
85.4
84.4
84.3
83.6
82.9
36
il
38
39
40
41
Nondurable
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
87.9
92.0
96.9
87.9
102 0
96.7
71.8
60.4
69.0
69.9
50 6
81.1
87.0
91.7
94.2
85.1
90 9
89.5
76.9
73.8
82.0
70.1
63 4
68.2
85.2
86.0
91.9
83.1
88 0
90.3
84.2
86.7
92.0
82.2
90 8
88.2
83.9
88.1
90.7
81.1
90 9
86.4
83.8
88.8
90.6
81.6
90 0
87.9
84.0
88.0
93.5
81.5
90 5
91.3
83.7
85.7
92.2
81.7
82.6
83.9
91.4
80.3
81.9
82.5
91.7
80.0
91.0
83.2
85.3
92.9
80.8
88 9
90.3
89.7
87.8
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
87.1
86.2
90.7
89.2
84.5
90.3
88.7
84.7
90.7
88.8
86.8
92.9
90.5
86.6
91.9
89.2
87.9
93.0
90.4
87.4
92.3
89.6
85.9
90.7
89.6
82.7
87.3
42 Mining
43 Utilities
44
Electric
1. These data also appear in the Board's G.17 (419) release. For address, see
inside front cover. For a detailed description of the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76
(June 1990), pages 411-35.
2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.
Selected Measures
2.13 INDUSTRIAL PRODUCTION
A49
Indexes and Gross Value1
Monthly data are seasonally adjusted
1987
Groups
portion
1990
1989
1989
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct/
Nov."
Index (1987 = 100)
MAJOR MARKET
100.0
108.1
108.1
108.6
107.5
108.5
108.9
108.8
109.4
110.1
110.4
110.5
110.4
109.4
107.5
? Products
Final products
4
Consumer goods
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied g o o d s . . .
11
Other
Appliances, A/C, and TV
1?
Carpeting and furniture
N
Miscellaneous home goods . . .
14
15
Nondurable consumer goods
Foods
and tobacco
16
Clothing
17
18
Chemical products
19
Paper products
Energy
?0
Fuels
71
Residential utilities
22
60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
108.6
109.1
106.7
107.9
106.9
105.7
101.2
113.3
108.7
108.7
106.7
101.5
114.5
106.4
104.2
101.6
109.4
114.3
106.7
102.8
108.1
108.9
109.4
107.4
105.7
102.4
98.4
92.8
108.0
108.2
108.4
102.0
100.4
117.1
107.8
105.8
100.1
111.3
118.1
108.0
103.0
109.8
109.7
110.3
108.3
106.8
104.5
100.1
92.6
112.6
111.2
108.6
101.0
102.0
117.1
108.7
106.4
99.4
110.3
116.9
115.2
100.5
120.7
108.4
108.5
106.0
99.4
85.2
66.3
62.1
73.3
113.6
110.6
108.4
103.7
116.2
107.8
105.5
100.6
112.7
116.2
107.9
105.1
109.0
109.4
109.7
107.0
106.2
99.3
92.7
86.9
102.3
109.4
111.6
107.8
104.7
118.2
107.2
106.2
99.6
112.0
117.6
101.5
106.6
99.6
110.1
110.7
107.5
110.8
109.3
107.7
100.5
120.0
111.6
112.0
108.1
105.9
118.0
106.6
105.8
97.0
111.0
116.4
103.1
101.8
103.6
109.8
110.4
107.2
107.3
102.4
95.8
87.7
109.3
112.2
111.2
104.4
107.5
117.3
107.1
105.6
96.0
113.5
118.1
104.1
101.6
105.0
110.5
111.2
107.4
109.3
107.0
105.6
96.8
120.4
108.9
111.1
103.6
107.6
117.5
106.9
105.2
96.4
113.0
118.6
104.1
98.2
106.3
110.9
111.7
107.8
112.1
112.2
112.9
103.8
128.3
111.2
112.0
107.5
107.8
117.2
106.6
104.4
95.7
112.8
118.3
105.3
102.6
106.3
110.9
111.7
107.5
108.3
106.7
104.8
98.0
116.1
109.5
109.5
100.2
106.0
116.9
107.3
105.1
95.6
112.4
120.3
106.7
104.6
107.5
110.9
111.9
107.8
107.4
104.6
101.5
97.2
108.8
109.3
109.6
101.9
104.9
116.8
107.9
105.7
94.6
114.3
119.3
109.0
106.0
110.0
111.1
112.3
108.1
110.0
111.7
113.0
111.5
115.4
109.9
108.7
100.6
104.5
115.9
107.6
105.1
94.2
113.6
121.0
108.1
105.6
109.0
110.1
111.4
107.0
106.6
106.9
107.2
104.3
112.2
106.5
106.3
94.6
103.9
114.5
107.1
105.4
92.9
113.3
119.9
106.3
103.8
107.2
108.4
109.4
104.9
99.6
92.7
84.2
80.7
90.2
105.3
105.1
95.1
100.8
113.5
106.3
104.8
92.3
113.5
120.5
102.2
100.6
102.8
Equipment, total
Business equipment
Information processing and related ..
Office and computing
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
112.3
119.1
121.7
137.2
113.8
123.8
103.9
116.5
97.4
93.7
92.3
112.0
118.7
123.5
141.0
113.4
117.0
98.0
117.8
96.7
99.9
89.4
112.9
119.9
124.0
142.7
112.8
123.4
97.6
118.5
96.6
100.3
91.6
111.8
118.0
124.0
142.7
113.5
111.4
69.6
118.7
97.5
98.3
91.6
113.3
120.1
124.7
144.3
113.4
122.7
91.7
117.4
97.6
100.1
94.3
114.9
122.2
126.0
147.2
113.9
130.6
104.5
117.8
97.5
106.0
92.9
114.7
121.6
126.4
149.3
114.2
126.2
95.2
117.6
97.3
114.3
89.7
116.2
123.5
126.8
148.9
115.5
132.5
105.7
119.6
97.6
118.6
91.3
116.8
124.4
126.2
150.6
115.3
137.4
112.3
118.5
97.6
119.5
92.8
117.2
125.0
125.7
152.7
116.0
135.5
103.6
117.6
97.8
116.2
90.0
117.2
125.4
117.8
126.5
117.0
125.4
115.3
123.0
152*2
154^5
153.9
152.8
135.4
140.5
137.6
125.9
97.7
106.9
93.4
97.3
107.4
91.8
97. i
107.1
89.0
96.6
109.7
14.7
6.0
8.7
106.8
106.1
107.3
107.3
107.0
107.5
107.9
107.4
108.2
108.0
107.9
108.0
108.4
108.2
108.5
108.2
107.3
108.9
108.0
106.4
109.1
108.3
105.5
110.2
108.3
106.0
109.8
108.4
106.7
109.5
107.9
105.3
109.7
107.1
103.5
109.5
106.3
102.5
109.0
105.2
100.8
108.3
39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
107.4
111.6
109.0
114.7
110.2
112.1
105.3
99.8
103.8
106.4
107.6
101.4
99.9
104.3
107.0
110.8
105.7
115.3
109.4
108.6
104.9
96.1
104.6
105.8
108.4
101.9
100.5
104.5
106.9
110.4
102.5
115.8
109.5
109.3
104.3
95.8
103.7
103.8
110.4
102.7
99.0
110.0
106.2
109.4
96.5
116.5
109.7
108.5
105.4
94.6
105.0
105.8
110.9
101.2
101.1
101.4
107.1
110.8
102.8
117.6
108.7
109.9
105.8
96.2
105.3
107.3
108.8
101.7
102.1
100.9
107.1
110.9
104.5
117.6
108.1
107.5
105.2
94.9
103.0
107.5
108.7
102.0
101.2
103.4
107.3
110.9
103.2
117.4
108.9
110.2
106.1
95.6
106.0
107.4
109.8
101.8
100.3
104.6
107.7
112.5
108.5
118.1
109.6
109.2
105.2
97.4
104.5
105.4
109.8
101.1
100.1
102.9
108.8
113.8
108.5
119.1
111.8
113.6
106.1
99.4
104.8
107.3
108.8
102.1
101.2
103.9
109.6
114.0
108.1
119.2
112.4
115.5
107.8
100.2
109.0
108.5
109.9
103.3
103.3
103.4
109.7
114.9
110.4
119.4
113.1
116.3
106.8
97.8
106.9
108.0
109.3
103.0
102.1
104.9
109.3
113.9
108.7
119.7
111.3
115.4
106.7
96.9
109.4
106.6
110.0
103.2
100.3
108.8
108.2
112.6
106.2
118.8
110.1
113.0
105.9
95.2
108.2
105.9
109.8
102.3
100.4
106.1
106.2
109.6
97.0
118.0
108.6
112.9
105.6
93.7
108.8
105.7
109.2
100.6
99.0
103.7
97.3
95.3
108.2
108.3
108.4
108.6
108.9
109.1
108.6
109.0
108.9
109.2
109.0
109.2
109.2
109.5
109.5
109.7
110.0
110.2
110.6
110.8
110.7
110.9
110.3
110.5
109.4
109.6
108.2
108.6
1 Total index
71
74
75
76
77
78
79
IN
11
17
33
14
15
36
17
18
19
40
41
47
41
44
45
46
47
48
49
50
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
Intermediate products, total
Construction supplies
Business supplies
Durable goods materials
Durable consumer parts
Other
Basic metal materials
Nondurable goods materials
Textile materials
Pulp and paper materials
Chemical materials
Other
Energy materials
Converted fuel materials
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts . . .
51 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy
97.5
107.4
107.3
107.7
106.6
107.6
108.0
107.8
108.4
109.1
109.3
109.4
109.2
108.3
106.4
24.5
23.3
106.8
106.7
107.9
107.3
108.8
107.5
108.4
105.8
107.8
107.6
107.5
108.0
107.9
107.5
107.6
107.9
107.5
108.3
107.6
107.8
108.2
107.8
107.0
106.2
12.7
120.6
120.7
122.1
122.8
122.9
124.0
124.2
125.3
125.6
127.2
127.8
128.0
127.3
126.8
120.8
110.4
118.2
108.4
12.0
28.4
116.2
109.6
115.0
108.9
116.2
108.4
114.0
108.1
116.2
109.2
118.2
109.1
117.2
109.4
119.4
110.2
120.2
111.4
120.5
112.1
121.1
112.3
121.9
111.6
A50
Domestic Nonfinancial Statistics • February 1991
2.13—Continued
Groups
SIC
code
1987
proportion
1989
1990
1989
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct/
Nov/
Index (1987 = 100)
MAJOR INDUSTRY
1 Total index.
100.0
108.1
108.1
108.6
107.5
108.5
108.9
108.8
109.4
110.1
110.4
110.5
110.4
109.4
107.5
84.4
26.7
57.7
108.9
106.4
110.1
108.9
106.2
110.1
108.8
105.3
110.4
108.1
106.2
109.0
109.6
106.9
110.9
109.8
106.0
111.7
109.5
105.9
111.3
110.3
106.1
112.4
110.8
107.0
112.6
111.1
107.9
112.5
111.1
108.0
112.5
111.0
106.7
112.9
110.1
105.7
112.1
108.2
104.3
110.0
Durable
Lumber and products . . .
24
Furniture and fixtures . . .
25
Clay, glass, and stone
products
32
33
Primary metals
331,2
Iron and steel
Raw steel
Nonferrous
333-6,9
Fabricated metal
34
products
35
Nonelectrical machinery.
Office and computing
357
machines
36
Electrical machinery
Transportation
37
equipment
Motor vehicles and
371
parts
Autos and light trucks.
Aerospace and miscellaneous transportation equipment.. 372-6,9
Instruments
38
Miscellaneous
39
manufacturers
47.3
2.0
1.4
110.9
103.0
105.3
110.1
104.8
104.4
110.4
106.4
105.1
108.6
106.0
105.1
110.7
104.3
104.8
111.9
105.0
105.9
111.1
103.3
107.6
112.6
101.7
108.0
113.4
102.0
108.7
113.4
103.6
108.0
113.5
100.5
106.7
113.6
99.9
105.5
112.3
98.8
103.5
109.5
94.7
101.4
2.5
3.3
1.9
.1
1.4
108.0
109.2
109.3
108.5
109.0
108.2
104.8
104.1
100.6
105.8
108.6
102.6
100.3
97.6
105.8
110.0
105.0
104.6
109.9
105.6
108.0
107.9
110.6
109.0
104.0
107.7
105.4
106.1
105.9
104.3
105.1
106.4
106.7
104.9
105.9
106.4
106.2
105.5
107.6
107.1
106.1
109.5
110.3
111.8
108.3
106.0
110.3
110.6
113.9
109.8
106.6
114.6
118.3
118.5
109.4
104.0
111.1
113.6
111.6
107.5
103.7
107.9
110.2
112.8
104.8
103.3
107.1
110.0
114.6
103.0
5.4
8.6
107.2
121.8
106.9
122.9
106.3
123.8
105.1
123.7
105.6
124.2
105.5
125.2
105.0
125.7
107.1
126.9
106.7
127.5
107.7
128.3
107.9
128.8
106.5
128.7
105.6
127.9
103.1
127.1
2.5
8.6
137.2
109.5
141.0
110.1
142.7
110.1
142.7
110.1
144.3
111.0
147.3
112.3
149.3
111.3
149.0
112.4
150.6
112.8
152.7
112.2
152.2
112.5
154.5
112.5
153.8
111.1
152.8
110.5
9.8
107.2
102.8
104.4
94.7
103.5
107.9
105.1
109.0
111.0
109.3
107.9
111.0
108.9
99.8
4.7
2.3
104.9
105.0
99.0
97.6
98.7
99.0
76.8
65.7
94.1
91.8
103.5
106.7
95.8
94.6
104.0
104.3
108.0
111.6
102.7
103.8
101.0
107.5
103.9
85.5
5.1
3.3
109.3
116.4
106.3
115.6
109.6
114.8
111.0
116.0
111.9
116.2
111.9
115.7
113.4
115.8
113.5
116.5
113.8
115.0
115.2
116.9
114.1
117.5
114.2
118.4
113.5
118.5
112.8
117.7
1.2
114.9
117.0
116.4
117.0
118.1
118.6
118.6
119.1
119.6
120.4
121.8
120.7
120.0
119.0
Nondurable
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing . .
Chemicals and products .
Petroleum products
Rubber and plastic
products
Leather and products . . .
20
21
22
23
26
27
28
29
37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3
106.4
105.5
99.7
101.9
104.3
103.2
108.5
108.5
106.1
107.3
107.4
98.8
99.3
103.7
104.1
109.6
109.8
109.3
106.7
108.0
98.5
99.8
102.6
103.4
109.6
107.6
104.3
107.5
106.8
101.3
100.6
102.4
103.8
110.7
109.9
108.6
108.3
107.4
102.3
103.0
102.1
105.0
112.1
110.5
112.0
107.2
107.1
100.0
99.8
99.8
102.8
111.4
109.5
109.1
107.5
107.0
98.8
100.9
98.7
105.3
112.0
110.3
106.8
107.4
106.8
97.2
102.7
99.2
104.0
112.8
109.2
104.6
107.6
106.1
95.6
103.6
99.3
104.2
112.0
110.3
106.5
108.1
107.1
98.5
102.9
99.2
107.8
111.4
110.4
110.5
108.1
107.7
96.3
100.4
98.8
106.5
110.9
111.1
110.2
107.6
107.4
95.7
100.0
97.6
107.5
111.2
110.1
109.4
107.2
107.5
95.2
98.5
96.8
106.0
111.0
109.8
108.6
106.6
106.8
96.0
97.0
95.9
106.6
110.3
109.8
106.3
30
31
3.0
.3
108.9
103.7
109.1
99.4
110.1
103.0
110.7
104.3
109.1
102.9
109.8
103.3
109.0
102.6
110.9
103.5
112.8
102.0
110.9
102.5
112.0
99.6
110.5
98.3
110.5
94.7
108.0
91.8
10
11,12
13
14
7.9
.3
1.2
5.7
.7
100.5
141.4
105.7
95.5
113.9
101.2
145.9
108.1
95.5
115.8
100.1
155.5
103.5
94.0
119.7
101.7
144.8
114.1
94.4
121.2
101.0
143.4
111.9
94.1
120.0
101.1
141.4
112.9
94.6
116.5
102.9
152.7
114.2
95.7
120.2
102.2
148.7
110.0
96.0
119.9
102.2
156.7
113.5
94.6
121.1
104.0
164.8
118.5
95.5
121.8
102.4
155.7
110.2
95.8
120.1
103.7
164.9
116.8
95.5
120.7
102.6
159.9
114.7
95.3
116.1
102.5
160.3
110.8
95.9
116.5
7.6
6.0
1.6
107.1
108.1
103.0
108.3
109.5
103.9
116.1
116.3
115.6
106.8
108.3
101.2
104.0
107.1
92.3
106.2
109.7
93.3
106.7
109.7
95.5
107.1
110.3
95.2
109.7
113.1
97.4
109.7
112.1
100.7
111.4
113.6
103.3
110.8
112.8
103.6
109.1
491.3PT
492,3PT
105.1
107.0
98.2
79.8
109.2
109.4
109.3
109.9
110.5
110.2
110.3
110.7
110.8
111.0
82.0
108.1
107.9
107.7
107.1
108.6
108.7
108.3
109.1
109.5
109.5
2 Manufacturing
3 Primary processing . .
4 Advanced processing
23
24
25
26
27
28
29
30
31
32
33
34 Mining
35 Metal
36 Coal
37 Oil and gas extraction
38 Stone and earth minerals . .
39 Utilities...
40
Electric.
41 Gas . . . .
111.0
102.0
SPECIAL AGGREGATES
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
Gross value (billions of 1982 dollars, annu il rates)
MAJOR MARKET
44 Products, total
1734.8
45 Final
46 Consumer goods .
47 Equipment
48 Intermediate
1350.9 1,480.1 1,482.8 1,492.5 1,447.9 1,488.3 1,507.5 1,493.9 1,506.0 1,523.4 1,508.7 1,516.3 1,528.1 1,513.0 1,468.2
833.4
884.6 889.0 898.6 864.3 888.6 893.4 883.9 885.9 893.8 886.0 885.9 893.4 883.0 854.9
517.5
595.5 593.8 594.0 583.6 599.8 614.1 610.0 620.1 629.6 622.7 630.4 634.7 630.0 613.4
384.0
409.7 414.1 413.0 415.7 415.0 415.1 412.3 416.2 413.6 414.9 413.1 410.7 414.1 407.9
1,889.8 1,896.9 1,905.5
1,863.6 1,903.3 1,922.6
1. These data also appear in the Board's G. 17 (419) release. For requests see
address inside front cover.
A major revision of the industrial production index and the capacity
1,906.2 1,922.2
1,937.0 1,923.5
1,929.5 1,938.8 1,927.1
1,876.1
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
Selected Measures
2.14
A51
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1990
Item
1987
1988
1989
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,535
1,024
511
1,456
994
462
1,339
932
407
1,739
985
754
1,297
974
323
1,232
912
320
1,108
813
295
1,065
802
263
1,108
796
312
1,082
780
302
1,050
762
288
992
737
255
920
708
212
4 Started
5
1-family
6
2-or-more-family
1,621
1,146
474
1,488
1,081
407
1,376
1,003
373
1,568
1,099
469
1,488
1,154
334
1,307
996
311
1,216
898
318
1,206
897
309
1,189
889
300
1,153
875
278
1,131
836
295
1,106
859
247
1,033
856
177
987
591
397
919
570
350
850
535
315
892
571
321
900
575
325
887
567
320
876
559
317
857
546
311
849
540
309
833
529
304
815
517
298
792
504
288
773
501
272
1,669
1,123
546
1,530
1,085
445
1,423
1,026
396
1,443
1,031
412
1,351
1,041
310
1,378
1,037
341
1,295
942
353
1,363
1,008
355
1,295
946
349
1,300
981
319
1,314
954
360
1,324
974
350
1,256
908
348
233
218
198
195
200
193
189
191
191
184
195
181
188
672
366
675
367
650
362
613
365
606
366
558
363
533
363
536
360
550
354
541r
351r
530
345
509
339
491
334
104.7
113.3
120.4
125.0
126.9
119.4
130.0
125.0
125.0
118.7r
118.5
112.9
121.8
127.9
139.0
148.3
151.7
150.9
144.6
153.4
150.6
150.4
149.8'
145.3
143.4
157.5
3,530
3,594
3,439
3,520
3,400
3,400
3,330
3,300
3,330
3,330
3,500
3,170
3,050
85.6
106.2
89.2
112.5
93.0
118.0
96.3
120.0
95.2
118.3
96.3
119.5
95.6
117.8
95.6
118.7
97.5
121.1
98.3
122.0
97.1
120.5
94.4
116.7
92.9
115.9
7 Under construction, end of period 1 .
8
1-family
9
2-or-more-family
10 Completed
12
2-or-more-family
13 Mobile homes shipped
Merchant builder activity in
1-family units
15 Number for sale, end of period 1
Price (thousands of dollars)2
Median
16
Units sold
Average
17
Units sold
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold
(thousands of dollars)2
20 Average
Value of new construction (millions of dollars)
CONSTRUCTION
21 Total put in place
410,209
422,076
432,068
445,959
455,571
457,272
444,737
443,805
441,088
441,313
441,197
428,930
22 Private
23
Residential
24
Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other.
28
Public utilities and other
319,641
194,656
124,985
327,102
198,101
129,001
333,514
196,551
136,963
338,078
200,149
137,929
343,118
203,013
140,105
347,366
206,868
140,498
338,780
200,234
138,546
333,992
196,055
137,937
329,556
189,462
140,094
333,207
188,545
144,662
325,434
185,768
139,666
319,574
181,199
138,375
13,707
55,448
15,464
40,366
14,931
58,104
38,688
18,506
59,389
17,848
41,220
19,680
57,376
17,706
43,167
21,072
58,748
16,964
43,321
21,086
57,210
17,646
44,556
21,039
55,765
18,227
43,515
20,847
54,698
18,379
44,013
20,405
56,581
19,272
43,836
23,680
57,117
19,762
44,103
20,315
55,585
19,864
43,902
19,990
53,972
20,275
44,138
90,566
4,327
26,958
5,519
53,762
94,971
3,579
30,140
4,726
56,526
98,551
3,520
29,502
4,969
60,560
107,881
3,838
31,901
5,192
66,950
112,453
3,886
37,018
5,559
65,990
109,906
5,099
32,374
4,996
67,437
105,957
5,057
29,714
4,979
66,207
109,813
5,459
30,658
5,504
68,192
111,532
5,868
30,311
3,958
71,395
108,106
5,066
28,775
4,501
69,764
115,763
5,047
31,865
4,790
74,061
109,356
5,105
31,140
3,355
69,756
29 Public
30
Military
31
Highway
32
Conservation and d e v e l o p m e n t . . .
33
Other
17,278
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 1991
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)
1989
1989
1990
Nov.
Nov.
Change from 1 month earlier
1990
Index
level
Nov.
1990
1990
Dec.
Mar.
June
Sept.
July'
Aug/
Sept.
Oct.
Nov.
CONSUMER PRICES2
(1982-84=100)
1
2
3
4
5
6
All items
4.7
6.3
4.9
8.5
3.5
7.9
.4
.8
.8
.6
.3
133.8
5.6
19.0
5.3
3.1
6.2
5.5
3.9
4.7
3.4
5.7
11.4
14.8
7.5
7.8
7.2
2.1
-2.0
3.9
.7
5.5
3.7
Energy items
All items less food and energy
Commodities
Services
5.6
4.8
4.4
2.9
5.1
42.7
5.7
2.9
7.2
.4
-.7
.6
.3
.7
.3
4.3
.5
.0
.8
.2
5.6
.3
.4
.3
.4
4.5
.3
.2
.3
.5
.5
.3
.0
.4
134.0
110.9
138.2
125.4
145.5
PRODUCER PRICES
(1982=100)
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
4.6
4.5
7.7
4.4
4.0
7.0
4.2
38.4
3.9
3.2
5.0
12.4
-5.3
4.2
2.0
7.1
10.6
24.7
3.5
4.0
.3
-3.8
-14.3
5.4
2.3
11.7
.6
137.4
2.2
5.3
.1
.3
.0
-.2
.3
1.1
.7
9.0
.1
.2
1.6
-.9
13.8
.6
.8
1.1
.9
8.0
.0
-.2
.5
.8
.1
.6
.2
122.9
125.1
89.4
130.8
124.7
12
13
Intermediate materials 3
Excluding energy
2.9
1.7
5.6
1.8
-.4
-1.0
2.5
1.0
-.4
.7
13.4
4.0
-.1
.2
1.3
.2
1.9
.6
1.6
.4
.2
.2
118.2
122.2
14
15
16
Crude materials
Foods
Energy
Other
1.8
22.3
-1.0
-1.2
35.5
.4
19.2
13.2
-15.3
9.1
.5
4.0
-10.2
-39.2
13.2
-7.9
296.0
8.7
.6
.4
.7
-.9
25.0
1.5
-1.8
12.4
-.1
1.1
18.7
-1.7
-1.7
-10.3
-2.3
108.6
104.2
134.8
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
GROSS N A T I O N A L PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1990
1989
Account
1987
1988
1989
Q3
Q4
Ql
Q2
GROSS NATIONAL PRODUCT
1 Total
4,515.6
4,873.7
5,200.8
5,238.6
5,289.3
5,375.4
5,443.3
By source
2 Personal consumption expenditures
3
Durable goods
4
Nondurable goods
5
Services
3,009.4
423.4
1,001.3
1,584.7
3,238.2
457.5
1,060.0
1,720.7
3,450.1
474.6
1,130.0
1.845.5
3,484.3
487.1
1,137.3
1,859.8
3,518.5
471.2
1,148.8
1,898.5
3,588.1
492.1
1,174.7
1,921.3
3,622.7
478.4
1,179.0
1.965.3
699.5
671.2
444.9
133.7
311.2
226.3
747.1
720.8
488.4
139.9
348.4
232.5
771.2
742.9
511.9
146.2
365.7
231.0
775.8
746.9
518.1
147.0
371.0
228.9
762.7
737.7
511.8
147.1
364.7
225.9
747.2
758.9
523.1
148.8
374.3
235.9
759.0
745.6
516.5
147.2
369.3
229.1
28.3
32.3
26.2
29.8
28.3
23.3
28.9
25.0
24.1
-11.8
26.2
-17.0
13.4
13.0
-114.7
449.6
564.3
-74.1
552.0
626.1
-46.1
626.2
672.3
-49.3
623.7
673.0
-35.3
642.8
678.1
-30.0
661.3
691.3
-24.9
659.7
684.6
921.4
381.3
540.2
962.5
380.3
582.3
1.025.6
400.0
625.6
1,027.8
399.2
628.6
1,043.3
399.9
643.4
1,070.1
410.6
659.6
1.086.4
421.9
664.6
4.487.3
1.788.4
780.5
1,007.9
2,292.4
434.9
4.847.5
1,935.1
860.2
1,074.9
2.488.6
450.0
5,172.5
2,072.7
906.7
1,166.1
2,671.2
456.9
5,209.7
2.090.2
922.1
1,168.1
2.693.3
455.0
5,264.3
2,085.9
907.4
1,178.6
2,747.5
455.9
5,387.2
2,111.0
919.9
1.191.2
2.791.3
473.0
5,429.9
2,146.6
930.1
1,216.4
2,834.2
462.5
28.3
22.9
5.4
26.2
19.9
6.4
28.3
11.9
16.4
28.9
6.6
22.2
25.0
13.2
11.9
-11.8
-21.6
9.8
13.4
.0
13.4
3,845.3
4,016.9
4,117.7
4,129.7
4,133.2
4,150.6
4,155.1
3.660.3
3,984.9
4,223.3
4.232.1
4,267.1
4.350.3
4,411.3
2.686.4
2,249.7
419.4
1,830.3
436.6
227.2
209.4
2,905.1
2,431.1
446.6
1,984.5
474.0
248.5
225.5
3,079.0
2,573.2
476.6
2,096.6
505.8
263.9
241.9
3.095.2
2.586.6
479.9
2.106.7
508.6
265.1
243.5
3.128.6
2.612.7
486.7
2,126.0
515.9
268.4
247.5
3.180.4
2,651.6
497.1
2.154.5
528.8
276.0
252.8
3.232.5
2,696.3
505.7
2.190.6
536.1
279.7
256.4
323.4
280.6
42.8
354.2
310.5
43.7
379.3
330.7
48.6
368.1
329.5
38.7
381.7
336.0
45.7
404.0
346.6
57.4
401.7
350.8
51.0
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Exports
16
Imports
17 Government purchases of goods and services . .
18
Federal
19
State and local
By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
26 Change in business inventories
27
Durable goods
28
Nondurable goods
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
30 Total
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises . .
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
38 Proprietors'income 1
39
Business and professional
40
Farm 1
13.7
16.3
8.2
5.8
4.1
5.5
4.3
42 Corporate profits 1
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment
308.3
275.3
-19.4
52.4
337.6
316.7
-27.0
47.8
311.6
307.7
-21.7
25.5
306.7
291.4
21.4
290.9
289.8
-14.5
15.6
296.8
296.9
-11.4
11.3
306.6
299.3
-.5
7.7
46 Net interest
328.6
371.8
445.1
456.2
461.7
463.6
466.2
41 Rental income of persons 2
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
-6.1
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A53
A54
2.17
Domestic Nonfinancial Statistics • February 1991
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1990
1989
Account
1987
1988
1989
Q3
Q4
Ql
Q2
Q3'
PERSONAL INCOME AND SAVING
1
Total personal income
2 Wage and salary disbursements
Commodity-producing industries
4
Manufacturing
5 Distributive industries
Service industries
6
7 Government and government enterprises
8 Other labor income
9 Proprietors' income 1
10 Business and professional 1
Farm 1
11
1? Rental income of persons
N Dividends
14 Personal interest income
15 Transfer payments
16 Old-age survivors, disability, and health insurance benefits . . .
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
3,766.4
4,070.8
4,384.3
4,402.8
4,469.2
4,562.8
4,622.2
4,678.5
2,249.7
649.9
490.3
531.8
648.5
419.4
2,431.1
696.4
524.0
572.0
716.2
446.6
2,573.2
720.6
541.8
604.7
771.4
476.6
2,586.6
722.3
543.2
607.1
777.4
479.9
2,612.7
721.4
540.9
614.6
790.0
486.7
2,651.6
724.6
541.2
627.0
802.9
497.1
2,696.3
731.1
548.1
637.3
822.2
505.7
2,734.2
735.3
551.8
642.7
844.9
511.3
209.4
323.4
280.6
42.8
13.7
91.8
501.3
549.9
282.9
225.5
354.2
310.5
43.7
16.3
102.2
547.9
587.7
300.5
241.9
379.3
330.7
48.6
8.2
114.4
643.2
636.9
325.3
243.5
368.1
329.5
38.7
5.8
115.7
655.2
641.8
328.3
247.5
381.7
336.0
45.7
4.1
118.2
664.9
655.9
334.1
252.8
404.0
346.6
57.4
5.5
120.5
670.5
680.9
347.2
256.4
401.7
350.8
51.0
4.3
122.9
678.0
686.7
347.6
260.0
397.9
355.6
42.4
8.4
124.9
685.3
696.4
351.1
172.9
194.1
212.8
214.0
215.8
222.9
224.1
228.6
3,766.4
4,070.8
4,384.3
4,402.8
4,469.2
4,562.8
4,622.2
4,678.5
571.6
591.6
658.8
659.5
669.6
675.1
696.5
709.5
3,194.7
3,479.2
3,725.5
3,743.4
3,799.6
3,887.7
3,925.7
3,969.1
LESS: Personal outlays
3,102.2
3,333.6
3,553.7
3,588.8
3,625.5
3,696.4
3,730.6
3,802.6
22 EQUALS: Personal saving
92.5
145.6
171.8
154.5
174.1
191.3
195.1
166.5
15,759.4
10,310.7
10,946.0
2.9
16,302.4
10,578.3
11,368.0
4.2
16,550.2
10,678.5
11,531.0
4.6
16,578.5
10,739.9
11,538.0
4.1
16,546.0
10,688.2
11,541.0
4.6
16,575.9
10,692.1
11,586.0
4.9
16,554.2
10,672.5
11,564.0
5.0
16,560.8
10,710.1
11,511.0
4.2
19
LESS: Personal tax and nontax payments
20 EQUALS: Disposable personal income
21
MEMO
Per capita (1982 dollars)
73
Gross national product
Personal consumption expenditures
74
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
555.5
656.1
691.5
692.4
674.8
664.8
679.3
665.9
78
79
30
31
662.6
92.5
83.2
-19.4
751.3
145.6
91.4
-27.0
779.3
171.8
53.0
-21.7
776.0
154.5
53.9
-6.1
786.4
174.1
39.8
-14.5
795.0
191.3
36.7
-11.4
806.7
195.1
40.5
-.5
772.2
166.5
26.5
-19.8
303.2
183.8
322.1
192.2
346.4
208.0
351.6
215.9
356.5
216.0
356.7
210.3
359.7
211.4
365.5
213.8
-107.1
-158.2
51.0
-95.3
-141.7
46.5
-87.8
-134.3
46.4
-83.6
-131.7
48.1
-111.6
-150.1
38.5
-130.2
-168.3
38.1
-127.3
-166.0
38.6
-106.4
-145.7
39.3
Gross private saving
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
Capital consumption
allowances
1?
33 Noncorporate
34 Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
35
36
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
544.9
627.8
674.4
676.1
671.8
665.6
676.1
661.0
699.5
-154.6
747.1
-119.2
771.2
-96.8
775.8
-99.7
762.7
-90.9
747.2
-81.6
759.0
-82.9
759.7
-98.7
-10.6
-28.2
-17.0
-16.2
-3.0
.7
-3.2
-4.9
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1990
Item credits or debits
Not seasonally adjusted
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
1989
1988
1987
-162,315
-128,862
-110,035
-159,500
250,266
-409,766
-3,530
5,326
9,964
-4,299
-10,276
- i 26,986
320,337
-447,323
-5,452
1,610
16,971
-4,261
-10,744
-ii4,864
360,465
-475,329
-6,319
-913
26,783
-3,758
-10,963
Q3
Q4
Ql
Q2'
Q3"
-27,591
-31,620
-29,803
89,349
-119,152
-1,114
17
6,839
-909
-26,692
-27,926
-28,746
91,738
-120,484
-1,776
561
7,900
-889
-3,742
-21,668
-17,922
-26,283
96,262
-122,545
-1,287
1,995
7,292
-983
-2,402
-22,485
-20,987
-23,102
96,758
-119,860
-1,382
-999
7,364
-865
-3,501
-25,585
-29,989
-29,752
96,159
-125,911
-1,648
2,455
7,465
-1,078
-3,027
-2,621
-379
997
2,969
1,185
574
-47
-659
12 Change in U.S. official reserve assets (increase, - ) .
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary F u n d .
16
Foreign currencies
9,149
-3,912
-5,996
-3,202
-3,177
371
1,739
0
0
-25,293
0
0
0
0
0
0
-509
2,070
7,588
127
1,025
-5,064
-535
471
-25,229
-211
337
-6,122
-204
-23
-2,975
-247
234
-3,164
-216
363
8
1,368
17 Change in U.S. private assets abroad (increase, - ) .
18
Bank-reported claims 3
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net
-73,092
-42,119
5,324
-5,251
-31,046
-83,232
-56,322
-2,847
-7,846
-16,217
-102,953
-50,684
1,391
-21,938
-31,722
-38,654
-21,269
1,877
-9,623
-9,639
-45,496
-32,658
47
-4,109
-8,776
36,713
52,353
1,202
-7,496
-9,346
-31,284
-13,639
-1,550
-11,247
-4,848
-27,811
-7,603
45,210
43,238
1,564
-2,503
3,918
-1,007
39,515
41,741
1,309
-710
-319
-2,506
8,823
333
1,383
332
4,940
1,835
13,003
12,771
190
-350
-251
643
-7,016
-7,342
569
412
-820
-8,203
-5,897
-521
-381
-1,278
165
-126
5,541
2,442
346
1,089
1,918
-254
13,642
12,008
134
234
1,539
-273
173,260
89,026
2,863
-7,643
42,120
46,894
181,926
70,235
6,664
20,239
26,353
58,435
205,829
61,199
2,867
29,951
39,568
72,244
61,133
27,845
-2,175
76,336
36,674
1,732
5,671
10,793
21,466
-24,786
-32,264
290
-835
2,486
5,537
19,954
4,897
1,317
3,614
2,890
7,236
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 4
Other U.S. liabilities reported by U.S. banks 3
Other foreign official assets
28 Change in foreign private assets in United States (increase,
+)
29
30
31
32
33
t
U.S. bank-reported liabilities 5
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
12,618
10,470
12,375
493
94
-913
-19,295
38,829
32,288
' •' 453
-1,543
7,631
0
0
0
0
0
0
0
0
6,790
-8,404
22,443
-2,469
-4,953
6,117
3,560
21,780
2,804
28,711
-435
-5,303
22,443
2,484
2,558
18,976
29,699
6,790
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)
38
39
9,149
-3,912
-25,293
-5,996
-3,202
-3,177
371
1,739
47,713
40,225
8,491
13,353
-7,428
-7,822
4,452
13,408
-9,956
-2,996
10,713
4,532
-1,379
2,953
208
-1,251
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A56
3.11
International Statistics • February 1991
U.S. FOREIGN TRADE1
Millions of dollars; monthly data are seasonally adjusted.
1990
Item
1987
1988
1989
Apr.
May
June
July
Aug.
Sept/
Oct."
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
254,073
322,427
363,812
32,058
32,774
34,221
32,125
32,549
32,010
34,774
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
Customs value
406,241
440,952
473,211
39,364
40,543
39,561
41,244
42,283
41,337
46,385
-152,169
-118,526
-109,399
-7,306
-7,770
-5,340
-9,119
-9,734
-9,326
-11,611
2
Trade balance
Customs value
3
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 Trade"
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1990
Type
1
Total
2 Gold stock, including Exchange
Stabilization Fund 1
1987
1988
1989
May
June
July
Aug.
Sept.
Oct.
Nov. p
83,059
45,798
47,802
74,609
77,028
77,298
77,906
78,909
80,024
82,852
11,078
11,057
11,059
11,065
11,065
11,064
11,065
11,063
11,060
11,059
3
Special drawing rights 2 ' 3
10,283
9,637
9,951
10,396
10,490
10,699
10,780
10,666
10,876
11,059
4
Reserve position in International
Monetary Fund
11,349
9,745
9,048
8,764
8,449
8,686
8,890
8,881
9,066
8,871
5
Foreign currencies 4
13,088
17,363
44,551
46,803
47,294
47,457
48,174
49,414
51,850
52,070
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1990
Assets
1987
1988
1989
May
1 Deposits
Assets held in custody
2 U.S. Treasury securities
3 Earmarked gold 3
July
Aug.
Sept.
Oct.
Nov.
p
244
347
589
309
368
279
337
360
297
264
195,126
13,919
232,547
13,636
224,911
13,456
253,691
13,460
255,651
13,433
256,585
13,422
261,051
13,412
261,321
13,419
266,749
13,415
272,399
13,389
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 at face value.
June
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.
Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS
A57
Balance Sheet Data1
Millions of dollars, end of period
1990
Asset account
1987
1988
1989
Apr.
May
June
July
Aug.
Sept.
Oct.
All foreign countries
1 Total, all currencies
7 Claims on United States
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
518,618
505,595
545,366
535,886
541,439
524,010
531,418
551,346'
546,140
552,510
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
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
177,104
133,573
17,965
25,566
307,470
118,835
90,812
16,217
81,606
182,224
140,751
15,647
25,826
306,058
116,640
90,422
16,172
82,824
179,258
138,384
15,166
25,708
293,627'
108,464
85,780
16,220'
83,163
174,583
133,682
15,239
25,662
304,674'
115,353
85,911
16,264'
87,146
178,236
137,558
14,500
26,178
313,831'
121,705'
88,768'
16,157'
87,201
182,555
140,865
14,157
27,533
311,254
123,359
83,162
16,379
88,354
177,539
135,536
13,145
28,858
319,318
129,570
81,883
16,335
91,530
38,064
36,756
45,956
51,312
53,157
51,125'
52,161'
59,279'
52,331
55,653
12 Total payable in U.S. dollars
350,107
357,573
382,717
360,224
362,991r
350,110'
346,335'
357,970'
360,195
362,409
n 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
70
Public borrowers
21 Nonbank foreigners
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
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
169,996
129,162
17,209
23,625
168,419
84,930
43,814
11,191
28,484
173,887
135,211
14,818
23,858
167,493'
83,381
44,449
10,912
28,751r
171,551
133,167
14,575
23,809
158,452'
76,410
42,918
10,956
28,168'
166,294
128,066
14,375
23,853
157,910'
79,241
38,815
10,652
29,202'
169,714
131,994
13,513
24,207
163,152'
82,564'
40,733'
10,939'
28,916'
173,978
135,068
13,416
25,494
163,799'
84,378
39,419'
11,166
28,836
168,956
129,850
12,441
26,665
168,345
90,462
37,267
11,201
29,415
15,656
16,432
21,843
21,809
21,611
20,107
22,131
25,104'
22,418'
25,108
11 Other assets
22 Other assets
United Kingdom
23 Total, all currencies
158,695
156,835
161,947
173,127
177,947
167,885
175,254
184,933
178,484
184,660
74 Claims on United States
75
Parent bank
76
Other banks in United States
Nonbanks
77
78 Claims on foreigners
79
Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
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
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
42,366
37,572
1,262
3,532
111,175
41,613
35,224
3,980
30,358
43,247
39,089
747
3,411
114,800
43,358
35,730
3,943
31,769
39,904
35,924
730
3,250
108,080
38,068
34,194
3,740
32,078
40,418
36,564
894
2,960
114,254
41,181
35,085
3,619
34,369
40,092
36,140
1,037
2,915
118,423
43,581
37,623
3,757
33,462
42,568
39,042
717
2,809
114,869
44,408
34,094
3,639
32,728
39,862
35,904
694
3,264
122,203
47,390
35,480
3,521
35,812
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
47
Public borrowers
43
Nonbank foreigners
44 Other assets
10,477
10,358
15,078
19,586
19,900
19,901
20,582
26,418
21,047
22,595
100,574
103,503
103,427
107,483
110,186
100,887
103,047
107,192
107,117
110,231
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
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
39,091
35,663
1,041
2,387
60,165
32,885
14,141
3,131
10,008
39,374
36,712
521
2,141
63,025
34,441
14,635
3,114
10,835
36,158
33,509
552
2,097
57,802
30,050
14,625
2,942
10,185
36,230
33,716
681
1,833
58,278
31,220
13,621
2,839
10,598
35,979
33,585
721
1,673
60,390
32,976
14,570
2,896
9,948
37,991
36,024
460
1,507
59,817'
33,990
13,212'
2,866
9,749
35,429
33,145
419
1,865
63,720
37,069
13,571
2,790
10,290
5,575
5,019
7,961
8,227
7,787
6,927
8,539
10,823
9,309'
11,082
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48
Other banks in United States
49
50 Claims on foreigners
51
Other branches of parent bank
5?
53 Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
160,321
170,639
176,006
150,767
154,851
154,354
145,813
150,695
153,234
153,497
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
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
102,184
65,084
15,902
21,198
41,467
13,306
18,499
4,490
5,172
105,617
69,807
14,079
21,731
42,147
12,917
19,947
4,350
4,933
107,244
72,115
13,603
21,526
39,812
11,906
18,492
4,393
5,021
99,918
64,748
13,412
21,758
38,393
11,785
16,761
4,307
5,540
103,521
68,507
12,625
22,389
39,595
12,031
17,543
4,554
5,467
106,574
70,145
12,539
23,890
39,573
11,638
18,076
4,818
5,041
106,977
70,845
11,605
24,527
38,062
12,152
15,994
4,876
5,040
4,841
6,926
7,633
7,116
7,087
7,298
7,502
7,579
7,087
8,458
151,434
163,518
170,780
145,994
149,467
149,943
140,966
146,103
149,233
148,862
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shefl" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
A58
International Statistics • February 1991
3.14—Continued
1990
Apr.
May
June
July
Aug.
Sept.
Oct.
All foreign countries
57 Total, all currencies
518,618
505,595
545,366
535,886
541,439
524,010
531,418
551,346'
546,140
552,510
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
30,929
161,390
87,606
20,355
53,429
28,511
185,577
114,720
14,737
56,120
23,500
197,239
138,412
11,704
47,123
24,113
168,669
109,642
11,782
47,245
25,452
169,791
109,831
10,272
49,688
23,504
169,769
113,151
9,092
47,526
21,805
163,275
105,401
9,454
48,420
22,917
167,410
109,818
10,264
47,328
21,977
172,747
117,217
8,976
46,554
22,091
167,569
113,064
7,984
46,521
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
304,803
124,601
87,274
19,564
73,364
21,496
270,923
111,267
72,842
15,183
71,631
20,584
296,850
119,591
76,452
16,750
84,057
27,777
313,446
120,405
77,875
20,683
94,483
29,658
315,058
120,722
78,681
19,710
95,945
31,138
299,951
113,653
73,896
17,637
94,765
30,786
314,503
119,476
78,19C
19,468'
97,369
31,835
321,365'
124,393'
79,485'
17,801'
99,686'
39,654'
317,339
125,517
75,353'
17,475'
98,994'
34,077
327,139
131,173
75,687
18,436
101,843
35,711
69 Total payable in U.S. dollars
361,438
367,483
396,613
368,626
369,505
358,681
355,782
365,928'
364,940
363,931
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
26,768
148,442
81,783
18,951
47,708
24,045
173,190
107,150
13,468
52,572
19,619
187,286
132,563
10,519
44,204
19,601
157,579
103,252
10,415
43,912
20,579
157,851
103,389
8,855
45,607
18,928
158,173
106,818
7,741
43,614
16,519
150,943
98,928
7,884
44,131
17,588
155,171
103,355
8,791
43,025
17,219
158,892
109,323
7,501
42,068
17,024
153,344
104,617
6,486
42,241
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
177,711
90,469
35,065
12,409
39,768
8,517
160,766
84,021
28,493
8,224
40,028
9,482
176,460
87,636
30,537
9,873
48,414
13,248
178,035
84,090
29,207
11,909
52,829
13,411
177,888
84,415
28,265
11,480
53,728
13,187
168,642
78,646
27,434
9,066
53,496
12,938
174,616
81,332
28,045
10,613
54,626
13,704
177,484'
84,157'
28,945'
9,710'
54,672'
15,685'
175,860
85,438
26,576
9,346
54,500
12,969
178,969
89,763
23,564
9,689
55,953
14,594
United Kingdom
81 Total, all currencies
158,695
156,835
161,947
173,127
177,947
167,885
175,254
184,933
178,484
184,660
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
26,988
23,470
13,223
1,536
8,711
24,528
36,784
27,849
2,037
6,898
20,056
36,036
29,726
1,256
5,054
20,535
33,931
23,339
1,841
8,751
21,846
33,755
23,179
1,847
8,729
19,672
32,291
23,158
1,615
7,518
17,795
32,320
21,952
1,626
8,742
18,703
33,365
23,399
1,535
8,431
17,542
35,483
25,461
1,765
8,257
17,557
32,171
22,013
1,430
8,728
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
98,689
33,078
34,290
11,015
20,306
9,548
86,026
26,812
30,609
7,873
20,732
9,497
92,307
27,397
29,780
8,551
26,579
13,548
103,362
28,581
31,026
10,829
32,926
15,299
106,138
29,193
31,580
11,409
33,956
16,208
99,279
26,506
28,575
10,263
33,935
16,643
107,533
28,944
32,420
11,314
34,855
17,606
109,372
28,967
34,647
9,902
35,856
23,493
106,496
30,487
30,113
9,578
36,318
18,963
114,959
32,357
33,870
10,788
37,944
19,973
93 Total payable in U.S. dollars
102,550
105,907
108,178
109,708
110,595
101,530
104,372
108,532
107,216
108,064
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks
24,926
17,752
12,026
1,308
4,418
22,063
32,588
26,404
1,752
4,432
18,143
33,056
28,812
1,065
3,179
17,936
30,386
22,446
1,553
6,387
19,012
29,666
22,339
1,456
5,871
17,233
28,160
22,190
1,325
4,645
14,831
27,967
21,208
1,175
5,584
15,758
28,779
22,423
1,228
5,128
15,502
30,368
23,963
1,471
4,934
15,237
26,895
20,334
1,035
5,526
99 To foreigners
100
Other branches of parent bank
Banks
101
102
Official institutions
103
Nonbank foreigners
104 Other liabilities
55,919
22,334
15,580
7,530
10,475
3,953
47,083
18,561
13,407
4,348
10,767
4,173
50,517
18,384
12,244
5,454
14,435
6,462
54,371
18,799
11,233
6,703
17,636
7,015
55,163
18,589
11,007
7,264
18,303
6,754
49,672
16,199
9,911
5,305
18,257
6,465
54,591
17,408
11,251
6,515
19,417
6,983
55,252
17,347
13,042
5,463
19,400
8,743
54,679
18,560
11,116
5,324
19,679
6,667
57,639
20,797
10,465
5,751
20,626
8,293
Bahamas and Caymans
105 Total, all currencies
160,321
170,639
176,006
150,767
154,851
154,354
145,813
150,695
153,234
153,497
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
110
Nonbanks
885
113,950
53,239
17,224
43,487
953
122,332
62,894
11,494
47,944
678
124,859
75,188
8,883
40,788
524
101,024
55,311
8,544
37,169
528
103,655
57,136
6,991
39,528
535
103,592
58,880
5,984
38,728
548
95,904
51,415
6,228
38,261
553
100,622
56,092
7,039
37,491
553
104,211
62,276
5,398
36,537
560
103,545
62,474
4,959
36,112
111 To foreigners
112
Other branches of parent bank
113
Banks
114 Official institutions
115
Nonbank foreigners
116 Other liabilities
43,815
19,185
10,769
1,504
12,357
1,671
45,161
23,686
8,336
1,074
12,065
2,193
47,382
23,414
8,823
1,097
14,048
3,087
46,741
22,446
8,617
1,247
14,431
2,478
48,410
25,535
8,154
962
13,759
2,258
47,613
24,184
8,969
960
13,500
2,614
47,010
24,560
8,120
999
13,331
2,351
46,922
24,965
7,469
943
13,545
2,598
46,237
24,781
7,519
731
13,206
2,233
46,867
25,864
6,794
703
13,506
2,525
152,927
162,950
171,250
146,259
149,707
149,680
140,377
145,670
148,589
147,749
117 Total payable in U.S. dollars
Summary Statistics
A59
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1990
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
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
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1988
1989
Apr.
May
June
July
Aug.
Sept/
Oct. p
304,132
312,457
307,820
308,397
309,541
312,309
321,418r
323,848
327,724
31,519
103,722
36,481
76,985
36,642
69,454
36,747
72,322
37,471
71,804
38,604
72,690
40,501r
72,803
39,857
72,472
42,424
72,457
152,429
523
15,939
179,264
568
19,159
179,476
3,596
18,652
177,092
3,620
18,616
178,016
3,644
18,606
178,740
3,668
18,607
185,534
3,692
18,888
189,333
3,717
18,469
190,555
3,741
18,547
123,752
9,513
10,030
151,887
1,403
7,548
133,417
9,482
8,740
153,338
1,030
6,453
141,102
7,809
9,066
142,899
895
6,047
142,405
6,550
9,147
141,490
1,074
7,731
146,928
6,961
10,200
136,325
946
8,183
149,454
8,415
9,972
135,705
917
7,848
152,777
11,083
11, W
137,008
1,697
7,665
156,432
10,171
11,421
136,383
1,383
8,058
161,620
8,903
11,203
137,063
1,230
7,707
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; zero coupon bonds are included at
current value.
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 data and on data reported to the Treasury Department by
banks (including Federal Reserve Banks) and securities dealers in the United
States and on the 1984 benchmark survey of foreign portfolio investment 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
1990
1989
Item
1 Banks' own liabilities
2 Banks' own claims
3
Deposits
Other claims
4
5 Claims of banks' domestic customers 2
1986
29,702
26,180
14,129
12,052
2,507
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1987
55,438
51,271
18,861
32,410
551
1988
74,980
68,983
25,100
43,884
364
Dec.
Mar.
June
Sept.
67,805
65,127
20,491
44,636
3,507
63,105
60,999
21,456
39,543
1,190
68,086
66,652
20,256
46,396
1,501
69,485
67,804
23,734
44,070
2,519
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 1991
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1990
Holder and type of liability
1987
1988
1989
Apr.
May
June
July
Aug/
Sept/
Oct."
1 All foreigners
618,874
685,339
736,627
702,923
715,613
707,464
719,673
737,811
741,610
742,340
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5
Other.
6
Own foreign offices 4
470,070
22,383
148,374
51,677
247,635
514,532
21,863
152,164
51,366
289,138
577,247
22,080
168,735
67,650
318,782
547,193
21,096
148,984
65,990
311,123
552,438
20,578
151,063
65,367
315,430
544,1%
20,365
151,525
64,646
307,660
554,328
19,723
154,590
66,157
313,859
570,197
20,708
156,678
74,268
318,542
571,786
22,259
158,913
65,908
324,706
574,099
20,699
158,635
71,606
323,160
148,804
101,743
170,807
115,056
159,380
91,100
155,730
83,649
163,175
88,908
163,267
90,082
165,344
91,883
167,614
93,038
169,823
91,464
168,241
94,971
16,776
30,285
16,426
39,325
19,526
48,754
18,132
53,948
18,531
55,737
17,865
55,320
17,599
55,862
16,983
57,593
17,198
61,162
17,751
55,519
7 Banks' custody liabilities5
8
U.S. Treasury bills and certificates 6
9
Other negotiable and readily transferable
instruments 7
10 Other
11 Nonmonetary international and regional
organizations
4,464
3,224
4,772
5,727
4,558
5,018
4,112
4,290
5,206
4,507
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
IS
Other 3
2,702
124
1,538
1,040
2,527
71
1,183
1,272
3,156
%
927
2,133
3,781
52
2,025
1,704
2,913
28
773
2,112
3,619
29
1,416
2,174
2,790
46
1,038
1,707
2,330
244
1,303
783
3,894
142
1,165
2,588
3,472
438
885
2,149
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates 6
18 Other negotiable and readily transferable
instruments 7
19 Other
1,761
265
698
57
1,616
197
1,947
190
1,645
174
1,399
147
1,322
148
1,959
1,095
1,311
479
1,034
248
1,497
0
641
0
1,417
2
1,740
17
1,463
8
1,253
0
1,159
15
819
45
817
15
782
5
9
20 Official institutions
120,667
135,241
113,466
106,0%
109,069
109,275
111,294
113,304
112,328
114,881
21 Banks' own liabilities
22
Demand deposits
23
Time deposits 2
24
Other 3 .
28,703
1,757
12,843
14,103
27,109
1,917
9,767
15,425
31,092
2,196
10,495
18,401
33,864
2,066
10,939
20,859
33,395
1,644
11,178
20,572
33,378
1,613
10,179
21,586
34,858
1,516
11,510
21,831
36,465
1,914
11,120
23,431
35,892
2,498
11,129
22,265
37,637
2,124
11,212
24,301
25 Banks' custody liabilities5
26
U.S. Treasury bills and certificates 6
27
Other negotiable and readily transferable
instruments 7
28
Other
91,965
88,829
108,132
103,722
82,373
76,985
72,231
69,454
75,674
72,322
75,896
71,804
76,437
72,690
76,839
72,803
76,436
72,472
77,244
72,457
2,990
146
4,130
280
5,028
361
2,605
173
3,158
195
3,650
443
3,5%
150
3,685
351
3,676
289
4,361
427
29 Banks10
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other 3
35
Own foreign offices 4
'....
414,280
459,523
514,721
492,708
503,137
496,903
507,154
524,485
529,414
522,627
371,665
124,030
10,898
79,717
33,415
247,635
409,501
120,362
9,948
80,189
30,226
289,138
454,206
135,425
10,325
90,557
34,543
318,782
426,048
114,925
9,864
68,703
36,357
311,123
432,438
117,009
9,673
71,159
36,177
315,430
424,810
117,151
9,503
73,243
34,405
307,660
433,739
119,881
9,224
74,888
35,770
313,859
449,069
130,527
9,7%
77,981
42,750
318,542
450,940
126,234
10,415
80,745
35,074
324,706
449,986
126,826
8,984
80,573
37,268
323,160
36 Banks' custody liabilities5
37
U.S. Treasury bills and certificates 6
38 Other negotiable and readily transferable
instruments 7
39
Other
42,615
9,134
50,022
7,602
60,514
9,367
66,660
9,374
70,699
11,578
72,093
13,502
73,415
13,964
75,416
13,855
78,474
13,009
72,641
13,646
5,392
28,089
5,725
36,694
5,124
46,023
5,437
51,850
5,616
53,504
5,757
52,833
5,760
53,690
5,366
56,195
6,187
59,278
5,921
53,074
40 Other foreigners
79,463
87,351
103,669
98,391
98,848
%,268
97,112
95,732
94,662
100,325
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 3
67,000
9,604
54,277
3,119
75,396
9,928
61,025
4,443
88,793
9,463
66,757
12,573
83,500
9,114
67,318
7,069
83,692
9,232
67,953
6,506
82,389
9,220
66,687
6,481
82,941
8,937
67,155
6,849
82,333
8,755
66,274
7,304
81,060
9,205
65,873
5,981
83,004
9,153
65,964
7,888
45 Banks' custody liabilities5
46
U.S. Treasury bills and certificates 6
47
Other negotiable and readily transferable
instruments 7
48
Other
12,463
3,515
11,956
3,675
14,877
4,551
14,891
4,632
15,157
4,834
13,879
4,630
14,170
5,081
13,400
5,285
13,602
5,504
17,321
8,621
6,898
2,050
5,929
2,351
7,958
2,368
8,350
1,909
8,293
2,030
7,205
2,044
7,083
2,007
7,113
1,001
6,518
1,580
6,687
2,013
7,314
6,425
7,203
7,183
7,282
6,429
5,909
5,713
6,346
5,6%
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
1990
Area and country
1987
1988
1989
Apr.
May
June
July
Aug.
Sept.
Oct."
1
618,874
685,339
736,627
702,923
715,613
707,464
719,673
737,81 V
741,610'
742,340
2 Foreign countries
614,411
682,115
731,855
697,195
711,055
702,446
715,560
733,521r
736,404'
737,834
3
4
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
231,912
1,155
10,022
2,200
285
24,777
6,772
672
14,599
5,316
1,559
903
5,494
1,284
34,199
1,012
111,811
529
8,598
138
591
237,453
1,233
10,611
1,415
570
26,903
7,578
1,028
16,169
6,613
2,401
2,407
4,364
1,491
34,496
1,818
102,362
1,474
13,563
350
608
229,675
1,549
10,128
2,244
464
24,263
8,798
879
14,138
7,731
1,454
2,354
4,230
1,689
33,244
1,459
99,376
1,599
12,239
446
1,392
236,551
1,373
9,507
2,152
314
23,103
8,030
860
16,347
8,166
1,582
2,359
4,535
1,655
35,260
1,641
104,624
1,934
11,423
158
1,529
234,112
1,531
10,047
2,411
387
23,566
8,076
833
16,779
7,617
2,420
3,082
4,391
1,769
34,780
1,596
98,530
2,169
12,360
75
1,695
235,872
1,498
10,564
2,581
485
23,111
7,580
877
17,114
5,968
1,793
3,073
4,922
1,586
33,809
1,654
100,861
2,436
14,367
257
1,335
245,188'
1,544
11,537'
2,238
463r
24,201r
7,605r
923'
17,117
6,209'
2,192
2,934
4,447'
1,495
34,545'
1,897
108,181'
2,272
14,057'
56
1,275'
244,127'
1,436'
12,126'
2,055
392
29,116'
7,835'
1,435'
16,351
5,385'
1,951
2,992
4,343'
833
34,637'
1,634
104,646'
2,043
13,165'
240'
1,515'
243,693
1,401
12,207
1,984
660
29,151
8,439
993
16,983
6,082
1,875
2,970
5,312
1,719
34,585
1,452
100,950
1,753
13,649
234
1,294
Belgium-Luxembourg
6
7
8
9
10
11
1?
13
14
IS
16
17
18
19
70
71
77
23
Italy
United Kingdom
Yugoslavia
Other Western Europe
U.S.S.R
Other Eastern Europe 2
30,095
21,062
18,865
19,485
19,900
19,956
20,056
21,122
20,796
19,626
75 Latin America and Caribbean
?6
71
7H
79
30
British West Indies
31
Chile
3?
33
Cuba
34
35
36
37
38
Netherlands Antilles
39 Panama
40
41
47
43
Other
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
271,146
7,804
86,863
2,621
5,314
113,840
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
310,948
7,304
99,341
2,884
6,334
138,263
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,361
1,984
2,284
9,468
6,206
309,109
8,235
90,331
2,807
6,729
143,264
3,418
4,404
9
1,334
1,451
224
15,085
6,460
4,749
1,703
2,575
9,673
6,659
315,674
8,346
98,658
2,514
6,088
142,129
3,517
4,471
10
1,367
1,473
215
15,116
6,806
4,540
1,532
2,560
9,717
6,614
312,782
7,993
99,255
3,072
6,110
137,069
3,449
4,508
11
1,368
1,473
224
16,141
6,628
4,544
1,473
2,529
10,292
6,645
316,603
8,163
98,292
2,824
6,083
142,702
3,540
4,474
15
1,349
1,523
221
16,057
6,375
4,388
1,405
2,560
9,830
6,803
320,004'
7,844'
101,635'
2,656'
6,329'
141,998'
3,491'
4,344
11
1,348
1,496'
213
16,325'
6,429'
4,648'
1,369
2,531
10,435'
6,901'
325,425'
7,981
108,264
2,739
6,058'
140,089'
3,135
3,926'
10
1,348
1,517
217
16,486
6,929
4,632
1,362
2,514
11,105'
7,113'
328,180
7,717
110,263
2,487
5,895
140,794
3,170
4,284
49
1,314
1,485
219
16,465
7,126
4,592
1,360
2,512
11,351
7,094
44
121,288
147,838
156,201
131,027
129,147
126,265
134,138
137,766
137,064'
137,019
1,162
21,503
10,180
582
1,404
1,292
54,322
1,637
1,085
1,345
13,988
12,788
1,895
26,058
12,248
699
1,180
1,461
74,015
2,541
1,163
1,236
12,083
13,260
1,773
19,588
12,416
780
1,281
1,243
81,184
3,215
1,766
2,093
13,370
17,491
1,844
15,440
12,277
1,013
1,560
1,311
65,581
2,120
1,193
1,595
11,626
15,466
1,785
15,174
12,896
1,148
1,192
1,227
62,101
2,049
1,191
1,973
13,049
15,362
1,871
11,006
12,369
966
1,520
1,202
62,367
2,121
1,329
2,125
13,076
16,313
1,890
12,611
13,316
909
1,377
1,122
66,293
2,157
1,314
2,745
14,039
16,366
2,319
12,639
13,823
806
1,130
1,125
68,664
2,316
1,350
2,233
14,928
16,433
2,105
12,468'
13,826
1,035
1,398
939
69,105'
2,566'
1,340
1,626
14,047'
16,609
2,163
12,242
13,556
953
1,261
921
67,923
2,442
1,274
1,448
16,405
16,432
Oil-exporting countries
Other
3,945
1,151
194
202
67
1,014
1,316
3,991
911
68
437
85
1,017
1,474
3,823
686
78
205
86
1,121
1,648
3,722
595
111
236
70
936
1,775
3,778
646
86
241
66
1,016
1,722
3,650
592
81
318
41
890
1,728
3,412
583
95
239
38
873
1,584
4,638'
1,505
77
332
43
1,072
1,609'
4,152'
970
93
393
44
966
1,687'
4,148
1,099
87
234
45
1,051
1,631
All other
4,070
3,327
744
6,165
5,293
872
4,564
3,867
697
4,176
3,469
707
6,005
5,250
755
5,680
5,052
628
5,480
4,892
588
4,803
4,122
681
4,840
4,109
732
5,169
4,371
797
4,464
2,830
1,272
362
3,224
2,503
589
133
4,772
3,825
684
263
5,727
4,147
1,123
457
4,558
3,393
912
253
5,018
3,883
920
215
4,112
2,981
812
319
4,290'
3,150
569'
571
5,206'
3,982'
668
556
4,507
3,392
627
487
24 Canada
China
45
46
47
48
49
50
51
57
53
54
55
56
57
58
59
60
61
6?
63
64
65
66
Thailand
Middle-East oil-exporting countries 3
Other
67 Nonmonetary international and regional
68
69
70
International
Latin American regional
Other regional 6
1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. Comprises Bulgaria, Czechoslovakia, 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 1991
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
1990
Area and country
1987
1988
1989
Apr.
May
June
July
Aug.
Sept.'
Oct."
1 Total
459,877
491,165
533,992
488,844
489,028
489,245
488,294
494,983r
493,191
493,635
2 Foreign countries
456,472
489,094
530,553
484,452
484,443
485,050
484,019
491,339'
487,996
490,228
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
116,928
483
8,515
483
1,065
13,243
2,329
433
7,936
2,541
455
261
1,823
1,977
3,895
1,233
65,706
1,390
1,152
1,255
754
119,024
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921
105,154
592
6,330
750
1,025
16,087
2,476
622
4,230
2,027
918
381
1,726
2,206
4,826
1,120
55,604
1,121
970
1,322
820
103,615
420
6,765
1,004
931
16,224
3,045
597
4,758
1,968
761
407
1,897
2,711
4,999
1,138
52,333
1,128
786
945
800
102,394
337
5,611
590
1,035
14,794
2,870
514
5,133
2,041
745
540
2,084
2,614
5,249
1,230
53,577
1,095
804
754
777
102,363
399
6,744
503
1,112
13,746
2,595
529
4,615
1,749
692
543
2,125
3,362
4,297
1,186
54,804
1,070
960
565
765
106,453'
287
6,672'
676
1,177
14,288
2,939
610
4,498'
1,636'
716
427'
2,100'
3,407'
3,712'
1,434
58,63c
1,029
694'
624
897'
105,483
373
5,617
674
%2
14,423
3,408
686
4,674
2,219
744
412
2,312
2,447
3,928
1,377
57,830
1,120
697
940
640
103,699
262
5,122
489
814
13,750
3,242
729
5,070
1,711
732
452
2,373
2,567
3,485
1,371
58,226
1,226
722
889
466
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 2
22
U.S.S.R
23
Other Eastern Europe
25,368
18,889
15,450
15,234
16,355
16,492
16,391
15,431
15,455
16,172
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 4
36 Jamaica 4
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
24 Canada
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
214,264
11,826
66,954
483
25,735
55,888
5,217
2,944
1
2,075
198
212
24,637
1,306
2,521
1,013
910
10,733
1,612
230,392
9,270
77,921
1,315
23,749
68,709
4,353
2,784
1
1,688
197
297
23,376
1,921
1,740
771
928
9,647
1,726
200,361
8,025
63,937
443
21,849
67,706
3,715
2,649
0
1,527
207
260
14,734
1,759
1,733
721
886
8,405
1,805
205,853
7,689
70,508
774
21,793
67,564
3,630
2,624
0
1,503
206
260
14,529
1,630
1,643
679
876
8,251
1,693
208,825
7,600
66,913
1,830
20,699
74,590
3,453
2,5%
0
1,523
188
258
14,665
1,722
1,598
683
842
8,136
1,527
199,793
7,166
67,041
1,988
20,180
66,428
3,490
2,541
1
1,515
196
262
14,689
1,873
1,491
661
843
8,064
1,364
204,007'
7,111
67,865
2,443
18,906
70,980'
3,430
2,700
2
1,507
207'
243'
14,953'
1,632'
1,491'
644'
834
7,642'
1,417'
211,769
7,204
71,529
3,736
18,649
73,873
3,265
2,563
0
1,498
215
254
15,366
1,821
1,555
649
796
7,274
1,523
221,193
7,028
71,900
3,691
18,626
81,996
3,372
2,544
0
1,487
211
262
15,359
3,310
1,463
667
793
7,102
1,384
44
106,096
130,881
157,444
155,553
150,172
148,963
158,028
157,944
147,452
141,713
968
4,592
8,218
510
580
1,363
68,658
5,148
2,071
496
4,858
8,635
762
4,184
10,143
560
674
1,136
90,149
5,213
1,876
848
6,213
9,122
634
2,776
11,128
621
651
813
111,270
5,323
1,344
1,140
10,149
11,594
674
1,890
8,965
588
560
746
117,560
5,011
1,221
1,073
8,376
8,891
517
1,941
9,563
579
599
738
108,245
5,186
1,351
1,202
9,577
10,674
537
1,946
9,271
802
801
777
107,671
5,128
1,357
1,279
10,816
8,576
554
1,583
9,434
852
814
738
114,663
5,515
1,342
1,242
12,318
8,971
586
2,026
9,473
628
836
785
114,973
5,614
1,369
1,245
10,657
9,752
542
1,710
9,026
867
826
698
106,388
5,679
1,333
1,279
10,430
8,673
639
1,061
8,028
506
892
688
101,907
5,362
1,206
1,444
11,278
8,703
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 6
63
Other
4,742
521
542
1,507
15
1,003
1,153
5,718
507
511
1,681
17
1,523
1,479
5,890
502
559
1,628
16
1,648
1,537
5,953
491
596
1,632
19
1,705
1,509
5,913
488
587
1,639
20
1,665
1,515
5,787
469
565
1,573
21
1,649
1,511
5,567
421
544
1,560
20
1,604
1,418
5,567'
449
539
1,571
19
1,586
1,403'
5,545
430
542
1,594
20
1,536
1,424
5,601
411
534
1,576
19
1,510
1,551
64 Other countries
65
Australia
66
All other
3,129
2,100
1,029
2,413
1,520
894
2,354
1,781
573
2,195
1,551
644
2,535
1,657
878
2,590
1,712
878
1,878
1,422
456
1,938
1,304
634
2,292
1,868
424
1,850
1,416
433
67 Nonmonetary international and regional
organizations 7
3,404
2,071
3,439
4,393
4,585
4,195
4,275
3,644'
5,195
3,407
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, Hungary, Poland,
and Romania.
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1990
Type of claim
2 Banks' own claims on foreigners
3
Foreign public borrowers
4
Own foreign offices
5
Unaffiliated foreign banks
6
Deposits
7
Other
8
All other foreigners
9 Claims of banks' domestic c u s t o m e r s 3 . . .
11
1987
1988
1989
Apr.
May
488,844
51,355
274,354
125,318
72,633
52,685
37,818
489,028
50,804
275,178
125,908
72,566
53,342
37,138
June
July
Aug/
488,294
47,570
275,275
128,481
73,114
55,367
36,969
494,983
46,742
273,978
137,740
79,619
58,121
36,523
Sept r
555,030
548,135
497,635
538,689
592,401
459,877
64,605
224,727
127,609
60,687
66,922
42,936
491,165
62,658
257,436
129,425
65,898
63,527
41,646
533,992
60,073
295,980
134,854
78,184
56,670
43,084
37,758
3,692
47,524
8,289
58,409
12,834
58,890
15,499
61,839
14,707
26,696
25,700
30,983
27,451
29,961
7,370
13,535
14,591
15,940
17,171
23,107
19,596
12,753
12,930
12,812
40,909
45,565
45,675
489,245
49,139
280,016
121,706
68,309
53,397
38,384
Oct."
493,191
48,145
278,826
125,219
71,820
53,399
41,001
493,635
45,706
280,568
124,929
71,136
53,793
42,432
Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States
39,272
41,517
40,222
40,973 r
44,579
45,872
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
1989
1987
Maturity; by borrower and area
1988
June
1 Total
232,295
235,130
233,184
237,648
213,670
208,862
By borrower
2 Maturity of 1 year or less 2
3
Foreign public borrowers
4
All other foreigners
5 Maturity over 1 year 2
6
Foreign public borrowers
7
All other foreigners
160,555
24,842
135,714
71,740
39,103
32,637
163,997
25,889
138,108
71,133
38,625
32,507
172,634
26,562
146,071
60,550
35,291
25,259
177,896
23,483
154,413
59,752
35,822
23,931
160,087
22,725
137,362
53,584
30,050
23,533
159,150
20,371
138,778
49,712
28,332
21,380
61,784
5,895
56,271
29,457
2,882
4,267
59,027
5,680
56,535
35,919
2,833
4,003
55,909
6,282
57,991
46,224
3,337
2,891
53,912
5,886
52,989
57,766
3,225
4,118
48,368
5,694
46,719
51,744
3,165
4,396
49,449
5,754
44,336
51,182
2,991
5,437
6,737
1,925
56,719
4,043
1,539
777
6,696
2,661
53,817
3,830
1,747
2,381
4,666
1,922
47,547
3,613
2,301
501
4,121
2,353
45,818
4,142
2,633
684
4,407
2,702
37,668
5,479
2,764
564
4,201
2,819
33,623
5,866
2,739
464
8
9
10
11
12
13
14
15
16
17
18
19
By area
Maturity of 1 year or less 2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of over 1 year 2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
n.a.
2. Remaining time to maturity.
3. Includes nonmonetary international and regional organizations.
A63
A64
3.21
International Statistics • February 1991
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2
Billions of dollars, end of period
1988
Area or country
iys6
1989
1990
iyo /
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
386.5
382.4
354.0
346.3
346.1
340.0
346.2
338.3
334.4
322.9
333.2r
156.6
8.4
13.6
11.6
9.0
4.6
2.4
5.8
70.9
5.2
25.1
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
148.7
9.5
10.3
9.2
5.6
2.9
1.9
5.2
67.6
4.9
31.6
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9
145.4
8.6
11.2
10.2
5.2
2.8
2.3
5.1
65.6
4.0
30.5
145.1
7.8
10.8
10.6
6.1
2.8
1.8
5.4
64.5
5.1
30.2
146.4
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.7
5.9
31.0
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2
147.1
6.6
10.5
11.2
6.0
3.1
2.1
6.3
64.0
4.8
32.6
140.1
6.2
10.3
11.2
5.5
2.7
2.3
6.4
59.9
5.2
30.4
144.4r
6.5
11.1
11.2
4.5
3.8r
2.4
5.6
62.1
5.1
32.1
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
26.1
1.7
1.7
1.4
2.3
2.4
.9
5.8
2.0
1.5
3.0
3.4
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
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
21.1
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
1.1
1.1
2.1
1.9
21.0
1.5
1.1
1.1
2.4
1.4
.4
6.9
1.2
1.0
2.1
2.1
20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6
23.1
1.5
1.1
1.1
2.6
1.7
.4
8.3
1.3
1.0
2.0
2.1
22.6
1.5
1.1
.9
2.7
1.4
.8
7.9
1.4
1.1
1.9
1.9
23.0
1.6
1.0
.8
2.8
1.5
.6
8.5
1.6
.7
1.9
2.0
25 OPEC countries 3
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
19.4
2.2
8.7
2.5
4.3
1.8
17.4
1.9
8.1
1.9
3.6
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
16.1
1.5
7.5
1.9
3.4
1.6
16.2
1.5
7.4
2.0
3.5
1.9
17.1
1.3
7.0
2.0
5.0
1.7
15.5
1.2
6.1
2.1
4.3
1.8
15.4
1.2
6.0
2.0
4.4
1.8
14.4
1.1
6.0
2.3
3.3
1.7
31 Non-OPEC developing countries
99.6
97.8
87.2
85.3
85.9
83.4
81.2
77.5
68.8
66.5
66.4 r
9.5
25.3
7.1
2.1
24.0
1.4
3.1
9.5
24.7
6.9
2.0
23.5
1.1
2.8
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
8.5
22.8
5.7
1.9
18.3
.7
2.7
7.9
22.1
5.2
1.7
17.7
.6
2.6
7.6
20.9
4.9
1.6
17.2
.6
2.9
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.5
17.5
4.3
1.8
12.8
.5
2.7
5.1
16.0
3.7
1.7
13.0
.5
2.4
4.9
15.0
3.6
1.8
13.1
.5
2.4
1 Total
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4
France
5 Germany
6
Italy
7
Netherlands
Sweden
8
Switzerland
9
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.4
4.9
1.2
1.5
6.7
2.1
5.4
.9
.7
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.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
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2
.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1
.2
3.9
3.6
.6
6.2
1.8
3.9
1.5
1.2
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 4
.7
.9
.1
1.6
.6
.9
.0
1.3
.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
.4
.9
.0
1.0
.4
.9
.0
.9
.5
.9
.0
.9
.4
.9
.0
.8
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other
3.5
.1
2.0
1.4
3.2
.3
1.8
1.1
3.1
.4
1.8
1.0
3.6
.7
1.8
1.1
3.5
.7
1.7
1.1
3.4
.6
1.7
1.1
3.5
.8
1.7
1.1
3.5
.7
1.6
1.3
3.4
.8
1.4
1.3
3.0
.4
1.4
1.2
2.9
.4
1.3
1.2
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Others 6
61.5
22.4
.6
12.3
1.8
4.0
J
ll'l
9.2
.0
54.5
17.3
.6
13.5
1.2
3.7
J
1L2
7.0
.0
47.3
12.9
.9
11.9
1.2
2.6J
48.5
15.8
1.1
12.0
.9
2.2J
40.1
8.5
2.2
8.5
2.3
1.4
41.9r
8.9^
4.0
9.0
2.2
1.5
lo!7
7.8
.0
36.6
5.5
1.7
8.9
2.3
1.4
.1
9.7
7.0
.0
42.9
9.3
.9
10.9
2.6
1.3
9.6
6.8
.0
43.1
11.0
.7
10.8
1.0
1.9
I
10.4
7.3
.0
49.2
11.4
1.3
15.3
1.1
1.5
10J
7.0
.0
44.2
11.0
.9
12.9
1.0
2.5
J
9^6
6.1
.0
9i8
8.0
.0
10^0
7.0
.0
9^0
7.2
.0
66 Miscellaneous and unallocated 7
19.8
23.2
26.7
22.6
25.0
27.4
28.5
29.8
33.2
35.1
40.0
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
1990
1989
Type, and area or country
25,587
1
? Payable in dollars
3 Payable in foreign currencies
By type
4
5
6
Payable in dollars
Payable in foreign currencies
7 Commercial liabilities
8 Trade payables
9
Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
By area or country
Financial liabilities
1?
13
14
15
16
17
18
Belgium-Luxembourg
Netherlands
Switzerland
United Kingdom
19
Canada
70
71
77
73
74
75
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
77
78
29
Japan
Middle East oil-exporting countries 2
30
31
Africa
Oil-exporting countries 3
32
All other 4
Commercial liabilities
33
34
35
36
37
38
39
Belgium-Luxembourg
United Kingdom
40
Canada
41
47
43
44
45
46
47
Latin America and Caribbean
Brazil
British West Indies
Venezuela
48
49
50
Middle East oil-exporting countries
51
52
Oil-exporting countries 3
53
1986
All other 4
2,3
1987
28,302
32,938
Mar.
June
Sept.
Dec.
Mar.
June
38,513
38,460
36,523
38,429
38,518
39,872
34,229
4,289
35,072
4,799r
21,749
3,838
22,785
5,517
27,320
5,618
32,706
5,806
33,372
5,088
31,685
4,838
33,585
4,845
12,133
9,609
2,524
12,424
8,643
3,781
14,507
10,608
3,900
18,744
14,648
4,096
18,427
14,551
3,875
17,117
13,289
3,829
18,380
14,478
3,902
17,802
14,589
3,213
19,786
16,098'
3,688r
13,454
6,450
7,004
12,140
1,314
15,878
7,305
8,573
14,142
1,737
18,431
6,505
11,926
16,712
1,719
19,768
7,094
12,674
18,058
1,711
20,034
6,510
13,524
18,821
1,213
19,406
6,902
12,503
18,397
1,009
20,050
7,373
12,676
19,107
943
20,716
7,275
13,440
19,639
1,076
20,086
6,849^
13,237
18,975
1,111
7,917
270
661
368
542
646
5,140
8,320
213
382
551
866
558
5,557
9,962
289
359
699
880
1,033
6,533
13,854
320
224
561
874
954
10,721
12,575
357
257
618
835
938
9,402
11,197
308
242
590
853
799
8,207
11,622
340
258
523
946
541
8,742
10,925
333
217
482
865
529
8,212
12,026
347
156
601
934
667
8,759
399
360
388
616
626
575
573
476
345
1,944
614
4
32
1,146
22
0
1,189
318
0
25
778
13
0
839
184
0
0
645
1
0
677
189
0
0
471
15
0
1,262
165
7
0
661
17
0
1,367
186
7
0
743
4
0
1,268
157
17
0
635
6
0
1,814
237
0
0
1,096
5
0
2,508
249
0
0
1,717
4
0
1,805
1,398
8
2,451
2,042
8
3,312
2,563
3
3,591
2,825
1
3,863
3,100
12
3,878
3,130
2
4,814
3,963
2
4,483
3,445
3
4,848
3,846
5
1
1
4
1
2
0
5
3
3
2
4
2
2
0
3
0
3
1
67
100
4
2
97
97
100
102
55
4,446
101
352
715
424
385
1,341
5,516
132
426
909
423
559
1,599
7,305
158
455
1,699
587
417
2,065
7,834
122
552
1,373
667
446
2,585
7,778
114
535
1,190
688
447
2,709
8,319
137
806
1,183
548
531
2,703
8,883
178
871
1,362
699
621
2,618
9,133
233
881
1,143
688
583
2,925
8,304
295
928
959
606
607
2,435r
1,405
1,301
1,217
1,163
1,133
1,189
1,067
1,124
1,260
924
32
156
61
49
217
216
864
18
168
46
19
189
162
1,090
49
286
95
34
217
114
1,253
35
426
103
31
250
114
1,673
34
388
541
42
235
131
1,086
27
305
113
30
220
107
1,187
41
308
100
27
304
154
1,304
37
516
116
18
241
85
1,277
22
412
106
29
285
119
5,080
2,042
1,679
6,565
2,578
1,964
6,915
3,094
1,385
7,318
3,059
1,520
7,045
2,708
1,482
7,086
2,674
1,442
7,038
2,772
1,401
6,885
2,624
1,393
6,970
3,088
1,125
619
197
574
135
576
202
700
272
762
263
648
255
844
307
753
263
885
277
980
1,057
1,328
1,499
1,642
1,077
1,031
1,517
1,390
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).
1988
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 1991
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1989
Type, and area or country
1986
1987
1990
1988
Mar.
June
Sept.
Dec.
Mar.
June
1 Total
36,265
30,964
33,874
31,873
34,088
31,738
31,085
29,488
31,077'
2 Payable in dollars
3 Payable in foreign currencies
33,867
2,399
28,502
2,462
31,494
2,381
29,514
2,359
31,871
2,217
29,513
2,225
28,706
2,379
27,334
2,154
28,772'
2,304
26,273
19,916
19,331
585
6,357
5,005
1,352
20,363
14,894
13,765
1,128
5,470
4,656
814
21,739
15,642
14,543
1,099
6,097
5,320
777
19,734
14,594
13,680
914
5,140
4,202
938
21,617
16,500
15,581
919
5,117
4,380
737
18,827
12,143
11,278
866
6,684
5,822
862
17,388
10,435
9,460
975
6,953
6,199
754
16,286
10,458
9,564
893
5,828
5,140
688
17,521r
9,898'
8,801'
1,097
7,623
6,929
694
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
9,992
8,783
1,209
10,600
9,535
1,065
12,136
11,061
1,075
12,139
10,877
1,262
12,471
11,039
1,432
12,912
11,427.
1,485
13,697
12,084
1,612
13,202
11,610
1,593
13,556
11,865
1,691
14
15
9,530
462
10,081
519
11,630
505
11,632
507
11,911
560
12,414
498
13,047
650
12,630
573
13,043
513
10,744
41
138
116
151
185
9,855
9,531
7
332
102
350
65
8,467
10,169
18
203
120
348
218
8,929
9,018
22
193
112
384
241
7,769
8,616
161
176
149
297
68
7,468
7,253
166
166
120
292
111
6,169
6,861
28
153
195
303
95
5,850
6,727
22
199
507
315
123
5,358
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
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
9,179
133'
141'
93'
332
137'
8,136'
23
Canada
4,808
2,844
2,325
2,175
2,568
2,356
1,934
1,803
1,993
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
9,291
2,628
6
86
6,078
174
21
7,012
1,994
7
63
4,433
172
19
8,139
1,846
19
47
5,742
151
21
7,504
2,183
25
49
4,826
117
25
9,319
1,875
33
78
6,923
114
31
8,315
1,699
33
70
6,125
105
36
7,428
1,516
7
224
5,268
94
20
6,903
1,599
4
79
4,806
152
21
5,431'
920
3
84
4,027'
153
20
31
32
33
Asia
Japan
Middle East oil-exporting countries
1,317
999
7
879
605
8
844
574
5
895
571
8
995
525
8
801
440
7
831
439
8
763
416
7
815
473
6
34
35
Africa
Oil-exporting countries 3
85
28
65
7
106
10
89
8
80
8
75
8
140
12
67
11
62
8
All other 4
28
33
155
52
40
27
195
23
41
3,725
133
431
444
164
217
999
4,180
178
650
562
133
185
1,073
5,170
189
670
667
212
344
1,323
5,094
214
786
689
164
264
1,301
5,290
205
770
675
413
231
1,371
5,423
220
824
688
396
222
1,396
6,160
241
948
689
478
305
1,570
6,025
219
957
690
450
270
1,690
6,118
207
902
661
475
235
1,654
36
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
934
936
983
1,124
1,181
1,278
1,058
1,091
1,108
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,857
28
193
234
39
412
237
1,930
19
170
226
26
368
283
2,239
36
230
298
22
461
227
2,118
34
234
277
23
485
213
2,100
13
238
314
30
438
229
2,131
10
270
232
33
508
188
2,161
57
323
286
36
508
146
2,046
22
242
226
38
524
187
2,199
17
283
230
46
593
220
52
53
54
Asia
Japan
Middle East oil-exporting countries
2,755
881
563
2,915
1,158
450
2,979
946
446
3,113
1,042
437
3,143
998
430
3,299
1,177
406
3,513
1,185
508
3,249
1,061
432
3,38c
1,046
424'
55
56
Africa
Oil-exporting countries
500
139
401
144
434
122
394
95
407
111
398
87
418
107
425
89
391'
98
57
All other 4
222
238
331
297
350
381
386
367
360
44
45
46
47
48
49
50
51
Canada
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
1990
1990
Transactions, and area or country
1988
1989
Jan.Oct.
Apr.
May
June
July
Aug.
Sept/
Oct."
17,447
16,080
20,653
21,950
8,812
11,318
11,631
15,430
U.S. corporate securities
STOCKS
181,185
183,185
1 Foreign purchases
213,535
203,537
147,085
160,375
2 Foreign sales
BONDS
9,998
-13,290
-899
-2,486
-372
1,367
-1,297
-2,506
-3,799
10,232
-13,356
-937
-2,543
-336
1,315
-1,334
-2,452
-3,756
-3,350
-281
218
-535
-2,243
-954
1,087
1,238
-2,474
1,365
1,922
188
121
471
-708
-830
167
-3,274
3,729
-845
3,089
3,531
3,586
3,340
131
268
-7,587
-1,055
-212
-382
-2,450
-3,016
395
-1,348
-1,766
-2,676
-2,328
-41
-334
-666
-85
6
-25
-221
-99
-212
-27
116
-55
-92
-2
-91
-1,048
-189
-57
-20
-347
-200
-101
90
-593
-904
-750
0
13
-590
32
-66
-83
-198
-114
88
-14
-85
243
212
-7
30
-12
-25
-41
-30
-170
252
174
-90
-36
1,056
851
13
211
-1,379
-175
-119
-107
-253
-637
330
-234
187
-69
22
16
-186
-1,160
-148
2
-48
-126
-718
210
-218
-437
-712
-737
1
-135
-1,417
-160
-87
-61
-211
-690
156
-357
-559
-1,515
-1,133
-31
-35
-176
-234
66
38
57
-37
52
37
-55
-43
2
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales ( - )
...
22 Foreign countries
23
24
25
26
27
28
29
30
31
32
33
34
35
36
18,211
18,584
-2,000
4 Foreign countries
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean .
Middle East 1
Other Asia
Japan
Africa
Other countries
Nonmonetary international and
regional organizations
15,231
17,717
-1,825
3 Net purchases, or sales ( - )
5
6
7
8
9
10
11
12
13
14
15
16
17
18
11,457
12,356
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean .
Middle East 1
Other Asia
Japan
Africa
Other countries
Nonmonetary international and
regional organizations —
86,381
120,540
97,458
8,355
8,467
12,572
10,923
11,846'
7,484
8,741
58,417
86,510
83,686
7,643
6,347
8,456
7,558
12,41 1'
9,354
7,412
27,964
34,031
13,772
712
2,120
4,116
3,365
-564 r
-1,870
1,329
28,506
33,678
14,221
705
2,195
4,084
3,327
—534r
-1,900
1,565
17,239
143
1,344
1,514
505
13,084
711
1,931
-178
8,900
7,686
-8
-89
19,848
372
-238
850
-165
18,459
1,116
3,686
-182
9,063
6,331
56
91
9,222
311
-200
16
496
8,432
1,879
3,346
123
-146
-202
90
-294
864
-58
-40
-2
59
1,013
353
411
-2
-993
-1,044
48
24
781
108
-39
33
83
495
198
508
251
440
331
8
9
3,380
293
82
37
186
2,761
292
578
-120
11
-131
2
-59
1,996
54
33
37
570
1,145
70
273
17
999
930
-4
-24
760'
-40
172
-15'
-346
776
91
-103
-178'
-986
-632
-1
-118
-819
-103
3
-71
0
-275
-87
-208
-65
-692
-871
5
-34
708
-74
-29
35
-84
412
127
198
-4
588
361
2
-53
-542
353
-449
6
-76
32
39
30
-237
-31
Foreign securities
37 Stocks, net purchases, or sales ( - ) 3
-1,959
-13,097
-7,348
-869
-2,422
-2,756
-1,117
-135'
442
-190
38
39
75,356
77,315
109,789
122,886
105,091
112,439
8,368
9,237
9,785
12,207
11,027
13,783
11,376
12,493
12,374r
12,510r
7,526
7,083
9,392
9,582
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
-7,434
218,521
225,955
-6,049
234,215
240,264
-18,680
247,499
266,179
-1,830
20,184
22,015
-1,867
25,879
27,746
-2,030
25,658
27,688
-400
23,367
23,767
48 r
29,826r
29,778'
-599
25,746
26,346
-2,793
35,280
38,073
43 Net purchases, or sales ( - ) , of stocks and bonds
-9,393
-19,145
-26,028
-2,699
-4,289
-4,786
-1,517
-87'
-157
-2,983
Foreign purchases
Foreign sales 3
44 Foreign countries
-9,873
-19,178
-24,060
-2,849
-4,085
-4,333
-1,547
-531'
-432
-2,179
45
46
47
48
49
50
-7,864
-3,747
1,384
979
-54
-571
-17,811
-4,180
426
2,540
93
-246
-8,842
-5,308
-6,412
-2,935
-96
-468
-666
-1,797
-171
-341
-28
154
-1,888
-721
252
-1,403
6
-331
-3,646
-219
418
-1,073
8
180
-383
-328
-222
-201
-83
-330
-1,297'
167'
-64'
606'
-8
65'
-78
-4
-401
-323
12
362
-750
-881
229
-6%
4
-85
480
33
-1,968
150
-205
-453
30
275
-804
Europe
Canada
Latin America and Caribbean
Asia
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 securi-
444
ties sold abroad by U.S. corporations organized to finance direct investments
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 1991
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1990
Country or area
1988
1990
1989
Jan.Oct.
Apr.
May
June
July
Aug.
Sept.
Oct."
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
48,832
54,269
7,896
3,224
-2,744
3,554
5,488
4,609
936'
-583
2 Foreign countries 2
48,170
52,367
8,123
4,215
-3,154
3,249
5,331
3,968
1,293'
-999
3 Europe 2
4
Belgium-Luxembourg
5
Germany
6
Netherlands
Sweden . . h
7
8
Switzerland 2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
14,319
923
-5,268
-356
-323
-1,074
9,640
10,786
-10
3,761
36,286
1,048
7,904
-1,141
693
1,097
20,198
6,508
-21
701
12,155
167
3,498
610
150
-87
-806
8,597
17
-4,247
6,150
458
633
749
264
422
2,271
1,344
6
110
-3,787
115
306
-263
-254
-189
-3,545
43
0
-1,752
2,587
270
-1,061
313
-34
-19
1,894
1,223
0
367
3,643
179
-1
196
133
-799
1,051
2,884
0
1,418
-2,128
-395
1,424
1,253
-266
-128
-3,776
-251
11
1,177
5,021'
-95
633
956
-33'
548
1,599
1,407
0
-868
263
82
581
-454
163
617
-1,759
1,033
0
-637
13
14
15
16
17
18
19
20
713
-109
1,130
-308
27,603
21,750
-13
1,786
490
311
-297
475
13,335
1,719
116
1,439
9,931
-100
2,933
7,098
-9,934
-11,198
327
-108
2,134
-49
-35
2,218
-3,880
-6,111
-4
-294
478
71
610
-204
2,026
2,234
-8
-110
914
48
1,021
-154
-1,086
-469
52
416
1,934
-1
1,060
874
-1,672
161
17
-9
1,319
0
295
1,023
3,304
2,376
57
239
-1,953
-49
-1,157
-747
-1,751
-2,092
151
692
4,676
-1
591
4,086
-5,071
-3,938
83
-313
661
1,106
-31
1,902
1,473
231
-227
219
-94
-991
-528
74
410
403
25
305
462
-109
158
-25
25
641
444
25
-357
-154
-75
416
355
-59
48,170
26,624
21,546
52,367
26,835
25,532
8,123
11,291
-3,167
4,215
5,066
-851
-3,154
-2,384
-770
3,249
924
2,325
5,331
724
4,607
3,968
6,794
-2,826
1,963
1
8,148
-1
-519
-0
668
0
-188
0
-439
0
-2,095
0
-365
0
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin America regional
Memo
24 Foreign countries
25
Official institutions
26
Other foreign 2
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
1,293'
3,799'
-2,506'
241
0
-999
1,221
-2,220
-1,247
0
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange Rates
A69
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on Dec. 31, 1990
Rate on Dec. 31, 1990
Rate on Dec. 31, 1990
Country
Country
Month
effective
6.5
10.5
11.72
10.5
Oct. 1989
Nov. 1989
Dec. 1990
Oct. 1989
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
Percent
Month
effective
9.25
6.0
12.5
6.0
7.25
Nov. 1990
Oct. 1989
May 1990
Aug. 1990
Nov. 1989
Month
effective
8.0
Norway
Switzerland
United Kingdom
6.0
June 1983
Oct. 1989
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
1990
Country, or type
1
?
3
4
5
6
7
8
9
10
Eurodollars
United Kingdom
Germany
Switzerland
Netherlands
France
Belgium
Japan
1988
1989
1990
June
July
Aug.
Sept.
Oct.
Nov.
Dec/
7.85
10.28
9.63
4.28
2.94
9.16
13.87
12.20
7.04
6.83
8.16r
14.73
13.00r
8.41r
8.71
8.23
14.95
13.76
8.24
8.71
8.09
14.92
13.58
8.17
8.81
7.99
14.95
13.13
8.36
8.71
8.07
14.88
12.63
8.39
8.11
8.06
14.02
12.58
8.51
7.88
8.04
13.57
12.36
8.79
8.39
7.87
13.75
11.95
9.17
8.65
4.72
7.80
11.04
6.69
4.43
7.28
9.27
12.44
8.65
5.39
8.57
10.20
12.IT
9.70
7.75
8.26
9.94
11.33
9.63
7.41
8.16
9.91
11.38
9.30
7.68
8.44
10.03
11.49
9.30
8.02
8.42
10.24
10.65
9.04
8.37
8.39
9.92
11.40
8.89
8.26
8.73
9.88
12.42
9.03
8.35
9.27
10.14
13.45
9.81
8.27
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, CD rate.
A70
International Statistics • February 1991
3.28 FOREIGN EXCHANGE RATES'
Currency units per dollar
1990
Country/currency
1
2
3
4
5
6
2
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/punt
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
1988
1989
1990
July
Aug.
Sept.
Oct.
Nov.
Dec.
78.409
12.357
36.785
1.2306
3.7314
6.7412
79.186
13.236
39.409
1.1842
3.7673
7.3210
78.069
11.331
33.424
1.1668
4.7921
6.1899
79.076
11.520
33.715
1.1570
4.7339
6.2339
80.871
11.044
32.280
1.1448
4.7339
6.0033
82.512
11.044
32.282
1.1583
4.7342
5.9961
80.060
10.719
31.373
1.1600
4.7339
5.8117
77.290
10.451
30.647
1.1635
4.9714
5.6946
77.019
10.539
31.014
1.1603
5.2352
5.7735
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
3.8300
5.4467
1.6166
158.59
7.7899
17.492
165.76
3.8386
5.4924
1.6375
160.59
7.7704
17.412
163.75
3.7051
5.2680
1.5702
154.82
7.7707
17.347
170.86
3.7113
5.2575
1.5701
154.93
7.7647
17.860
170.91
3.6187
5.1032
1.5238
153.17
7.7722
18.074
176.04
3.5644
5.0020
1.4857
152.27
7.7951
18.098
180.18
3.6341
5.0895
1.4982
156.08
7.8034
18.127
177.77
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
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
1,199.65
149.04
2.7051
1.8452
59.147
6.2925
143.93
1,157.07
147.46
2.6956
1.7692
61.294
6.0810
138.71
1,172.87
138.44
2.6959
1.7699
62.077
6.0735
139.18
1,141.62
129.59
2.6995
1.7180
61.129
5.8241
134.41
1,117.04
129.22
2.6949
1.6761
61.120
5.79%
130.87
1,129.26
133.89
2.7030
1.6904
59.574
5.8717
132.82
2.0133
2.2770
734.52
116.53
31.820
6.1370
1.4643
28.636
25.312
178.13
1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.8134
2.5885
710.64
101.%
40.078
5.9231
1.3901
26.918
25.609
178.41
1.8193
2.6253
718.75
100.41
40.018
5.9470
1.3924
27.163
25.706
180.98
1.7905
2.5734
718.26
%.90
40.007
5.7754
1.3076
27.291
25.579
190.13
1.7671
2.5712
717.87
98.49
39.953
5.7663
1.3069
27.302
25.376
187.94
1.7257
2.5445
717.76
95.59
40.285
5.6411
1.2818
27.288
25.130
194.56
1.7100
2.5247
717.03
94.07
40.355
5.5633
1.2569
27.245
25.078
196.42
1.7275
2.5395
718.58
95.75
40.244
5.6338
1.2814
27.162
25.208
192.19
98.60
89.09
89.68
86.55
86.10
83.43
82.12
83.35
MEMO
31 United States/dollar 3
92.72
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
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
c
e
p
r
*
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when about
half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000 when
the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
. . .
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obliga-
tions 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.
STATISTICAL RELEASES—List Published Semiannually,
with Latest BULLETIN Reference
Issue
Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Published Irregularly,
December 1990
Page
A92
with Latest BULLETIN Reference
Title and Date
Issue
Page
Assets and liabilities of commercial banks
September 30, 1989
December 31, 1989
March 31,1990
June 30, 1990
February
June
January
February
1990
1990
1991
1991
A72
A72
A72
A72
March
September
December
December
1990
1990
1990
1990
A79
A73
A72
A77
August
September
December
February
1990
1990
1990
1991
A72
A78
A82
A78
February
March
September
October
1990
1990
1990
1990
A78
A88
A82
A72
Terms of lending at commercial banks
November 1989
February 1990
May 1990
August 1990
Assets and liabilities ofU. S. branches and agencies of foreign banks
December 31, 1989
March 31,1990
June 30,1990
September 30, 1990
Pro forma balance sheet and income statements for priced service operations
June 30,1989
September 30,1989
March 31, 1990
June 30, 1990
Special tables
follow.
A72
Special Tables • February 1991
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2
Consolidated Report of Condition, June 30, 1990
Millions of dollars
Banks with foreign offices
Item
1 Total assets6
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
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
Banks with domestic
offices only
Total
Total
Foreign
Domestic
Over 100
Under 100
3,343,383
1,916,755
442,696
1,530,236
1,049,743
376,885
314,780
222,912
84,702
n.a.
n.a.
32,851
85,525
19,834
105,141
1,619
n.a.
n.a.
20,445
82,898
179
117,771
83,083
70,373
12,710
12,406
2,628
19,655
66,951
32,192
23,358
8,834
19,932
2,156
12,671
24,917
<>
n.a.
i
n.a.
1
1
1
MEMO
9
Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
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
13
U.S. Treasury securities
14
U.S. government agency and corporation obligations
15
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
16
All other
17
Securities issued by states and political subdivisions in the United States
18
Other domestic debt securities
19
All holdings of private certificates of participation in pools of
residential mortgages
20
All other domestic debt securities
21
Foreign debt securities
22 Equity securities
23
Marketable
24
Investments in mutual funds
2.5
Other
26
Less: Net unrealized loss
27
Other equity securities
28 Federal funds sold and securities purchased under agreements to resell
29
Federal funds sold
30
Securities purchased under agreements to resell
31 Total loans and lease financing receivables, gross
32
LESS: Unearned income on loans
33 Total loans and leases (net of unearned income)
34
LESS: Allowance for loan and lease losses
35
LESS: Allocated transfer risk reserves
36
EQUALS: Total loans and leases, net
Total loans, gross, by category
37 Loans secured by real estate
38
Construction and land development
39
Farmland
40
1-4 family residential properties
41
Revolving, open-end loans, extended under lines of credit
42
All other loans
43
Multifamily (5 or more) residential properties
44
Nonfarm nonresidential properties
45 Loans to depository institutions
46
To commercial banks in the United States
47
To other depository institutions in the United States
48
To banks in foreign countries
14,124
9,128
934,613
335,939
217,044
225,943
115,462
154,401
46,949
107,452
162,791
69,054
93,737
89,637
n.a.
n.a.
1,687
415
1,456
1,756
74,603
32,849
31,413
26,308
43,130
50,606
37,410
21,563
18,418
n.a.
16,938
n.a.
1,936
26,129
29,681
3,858
1,060
164
1,048
152
2,798
157
1,600
27,782
836
257
13
244
0
579
1,779
24,529
1,899
3,022
804
151
804
152
2,219
1,319
20,243
409
3,771
2,270
896
1,567
193
1,500
459
7,166
n.a.
1,262
939
881
163
104
323
149,482
131,956
17,526
2,085,222
13,985
2,071,236
49,771
255
2,021,211
77,344
63,508
13,836
1,205,024
5,815
1,199,209
34,755
253
1,164,201
638
n.a.
n.a.
211,129
1,499
209,630
n.a.
n.a.
n.a.
76,706
n.a.
n.a.
993,895
4,316
989,579
n.a.
n.a.
n.a.
49,671
46,209
3,462
676,921
6,165
670,757
11,757
1
658,999
22,466
22,239
228
203,276
2,006
201,270
3,259
1
198,011
800,808
f
400,928
25,427
4
T
1
I
T
1
n.a.
n.a.
298,950
39,473
5,288
149,891
22,681
127,210
7,844
96,455
6,904
6,323
525
56
100,930
7,738
9,679
55,409
3,046
52,363
1,948
26,156
399
n.a.
n.a.
n.a.
n.a.
n.a.
2,763,965
1,493,413
n.a.
593,273
251,868
34,823
409,822
n.a.
n a.
157,395
47,841
109,553
2,993
892
2,101
137,838
n.a.
87,218
n a.
76,290
33,263
32,870
28,064
3,714
53,538
n.a.
i,891
4,270
1,941
2,778
449
4,621
8,064
n.a.
51,966
n.a.
n.a.
n.a.
44,663
21,401
1,771
21,491
18,868
1,103
147
17,618
375,501
87,632
2,163
170,435
29,512
140,923
11,358
103,912
25,795
20,298
1,624
3,872
32,217
618,390
n a.
n a.
2,971
n.a.
n.a.
5,834
432,758
350,442
82,316
957
267
689
318
103,285
23,351
79,935
560
26
534
5,517
329,473
327,092
2,381
397
241
156
8,150
145,904
145,558
346
1,088
n.a.
n.a.
18,233
39,728
n.a.
n.a.
926
n.a.
n.a.
388,953
123,039
265,914
162,204
48,472
113,732
16,690
n.a.
n.a.
145,515
n.a.
n.a.
187,637
72,451
115,186
39,112
2,116
36,995
59 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
60
61
62 All other loans
63
Loans to foreign governments and official institutions
64
Other loans
65
Loans for purchasing and carrying securities
66
All other loans
37,013
1,092
35,921
115,970
n a.
n a.
n a.
n.a.
22,093
626
21,467
104,706
25,193
79,514
n.a.
n.a.
246
88
158
41,709
23,620
18,089
n.a.
n.a.
21,847
538
21,309
62,997
1,573
61,425
14,602
46,823
13,372
408
12,964
9,444
128
9,316
1,466
7,850
1,549
59
1,490
1,819
n.a.
n.a.
n.a.
n.a.
67
68
69
70
71
72
73
74
75
36,934
49,841
49,356
16,208
2,812
23,802
n.a.
8,722
113,897
30,880
48,299
26,769
8,627
2,381
23,399
n.a.
4,993
85,962
4,025
24,650
26,855
23,619
n.a.
n.a.
n.a.
n.a.
33,309
n.a.
n.a.
5,473
1,365
16,188
5,339
376
388
n.a.
3,468
21,055
581
178
6,399
2,243
55
14
n.a.
261
6,879
49
50
51
52
53
54
55
56
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)
57
Credit cards and related plans
58
Other (includes single payment and installment)
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
n.a.
<
1
1
•
1
1
•
I
T
1
n.a.
1
1
?
Commercial Banks
A73
4.20—Continued
Banks with foreign offices
Total
Foreign
Banks with domestic
offices only
Domestic
Over 100
Under 10
,343,383
1,916,755
n. a.
n.a.
1,049,743
376,885
77 Total liabilities
78 Limited-life preferred stock
,128,309
83
1,813,706
0
442,487
n.a.
1,427,396
n.a.
971,899
81
342,704
1
79 Total deposits
80 Individuals, partnerships, and corporations
81 U.S. government
82 States and political subdivisions in the United States
83 Commercial banks in the United States
84 Other depository institutions in the United States
85 Banks in foreign countries
86 Foreign governments and official institutions
87 Certified and official checks
88 All other 8
,573,067
1,381,905
330,005
196,108
1,051,900
965,357
2,577
37,843
22,708
5,402
6,337
1,085
10,590
n.a.
856,985
792,141
1,652
44,631
9,111
2,679
161
272
6,338
n.a.
334,176
306,573
579
22,691
1,218
912
n.a.
n.a.
2,156
48
n.a.
318,952
268,854
1,648
9,713
18,027
3,589
5,787
744
10,590
n.a.
222,788
195,541
1,342
11,854
6,363
1,204
137
9
6,338
n.a.
85,788
75,918
477
6,338
636
244
n.a.
n.a.
2,156
18
n.a.
240,481
193,000
1,632
7,117
18,027
3,589
5,783
743
10,590
n.a.
732,948
696,503
929
28,130
4,681
424
4,257
1,813
551
9
542
341
n.a.
136,991
116,421
1,321
5,216
6,359
1,189
137
9
6,338
n.a.
634,198
5%,600
310
32,777
2,749
232
2,517
1,475
24
20
4
262
n.a.
44,872
39,399
466
1,962
635
236
n.a.
n.a.
2,156
18
248,388
230,655
102
16,352
582
n.a.
n.a.
668
n.a.
n.a.
n.a.
n.a.
29
201,337
134,803
66,535
n.a.
92,037
23,502
17,555
n a.
74,230
103,049
795
n.a.
n a.
n. a.
35,822
6.426
n a.
n a.
n a.
n.a.
200,542
n.a.
n.a.
23,139
56,215
18,077
n.a.
22,869
n.a.
n.a.
63,247
31,368
31,879
4,929
28,829
388
1,917
n.a.
15,604
77,763
3,015
1,337
1,677
528
833
14
121
n.a.
4,017
34,179
1,040
681
359
53,823
51,185
18,757
4,6%
1,263
50,397
18,901
13,147
3,485
n.a.
18,155
1,090
998
872
76 Total liabilities, limited-life preferred stock, and equity capital
7
89 Total transaction accounts
90 Individuals, partnerships, and corporations
91 U.S. government
92 States and political subdivisions in the United States
93 Commercial banks in the United States
94 Other depository institutions in the United States
95 Banks in foreign countries
96 Foreign governments and official institutions
97 Certified and official checks
98 All other
99 Demand deposits (included in total transaction accounts)
100 Individuals, partnerships, and corporations
101 U.S. government
102 States and political subdivisions in the United States
103 Commercial banks in the United States
104 Other depository institutions in the United States
105 Banks in foreign countries
106 Foreign governments and official institutions
107 Certified and official checks
108 All other
109 Total nontransaction accounts
110 Individuals, partnerships, and corporations
111 U.S. government
112 States and political subdivisions in the United States
113 Commercial banks in the United States
114
U.S. branches and agencies of foreign banks
115
Other commercial banks in the United States
116 Other depository institutions in the United States
117 Banks in foreign countries
118
Foreign branches of other U.S. banks
119
Other banks in foreign countries
120 Foreign governments and official institutions
121 All other
122
123
124
125
126
127
128
129
130
131
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 capital9
132
133
134
135
136
137
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
>
>
n.a.
n.a.
19,835
n. a.
23,328
11,341
n.a.
n a.
n.a.
267,599
167,508
100,091
n. a.
121,698
23,905
19,593
n.a.
93,851
214,991
MEMO
138
139
140
141
142
143
144
n.a.
n.a.
Footnotes appear at the end of table 4.22
22,243
751
110,904
9,661
126
194,587
86,147
237,782
182,521
31,912
77,364
811,419
131,135
79,338
293
125,342
5,113
83,713
719,994
37,349
29,085
141,066
39,471
1,408
39,485
289,304
%2,968
661,974
197,012
22,384
79,193
13,414
84,886
n.a.
40,686
193,830
83,484
184,293
262,763
129,995
77,993
125,989
288,361
37,185
28,593
39,140
141,023
2,647
9,598
n.a.
n.a.
n.a.
Quarterly averages
145 Total loans
146 Obligations (other than securities) of states and political subdivisions
in the United States
147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
148 Money market deposit accounts (MMDAs)
149 Other savings deposits
150 Time certificates of deposit of $100,000 or more
151 All other time deposits
152 Number of banks
n.a.
,480
235
n.a.
n.a.
A74
4.21
Special Tables • February 1991
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6
Consolidated Report of Condition, June 30, 1990
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,579,980
2,029,334
1,634,297
395,037
550,646
184,722
93,731
21,544
32,338
4,783
32,326
150,998
83,559
17,658
20,285
3,510
25,985
121,387
68,657
14,785
16,100
2,697
19,148
29,611
14,902
2,873
4,185
814
6,837
33,725
10,172
3,887
12,053
1,273
6,341
2,229,701
1,737,521
1,406,655
330,866
492,180
442,988
116,003
201,189
332,408
80,768
159,266
258,933
64,526
126,096
73,475
16,243
33,171
110,580
35,235
41,922
117,734
83,455
68,824
47,871
3,099
44,773
2,308
6,793
3,074
1,047
2,371
345
3,719
100,288
58,979
52,532
34,417
2,244
32,172
1,937
3,488
729
510
294
75
2,759
79,789
46,307
39,761
25,012
1,809
23,203
804
2,734
568
430
187
49
2,166
20,498
12,672
12,771
9,405
435
8,970
1,132
754
162
80
107
26
592
17,446
24,476
16,291
13,454
854
12,600
371
3,305
2,344
537
2,077
270
961
126,377
46,209
3,462
1,670,817
10,480
1,660,336
103,005
29,500
2,380
1,309,895
7,787
1,302,108
78,959
25,483
2,017
1,075,036
6,272
1,068,764
24,047
4,017
364
234,859
1,515
233,344
23,371
16,709
1,082
360,921
2,693
358,228
674,451
127,105
7,451
320,326
52,193
268,132
19,201
200,367
26,621
2,149
3,928
13,666
512,275
101,408
4,855
240,884
40,435
200,449
14,888
150,240
21,946
1,946
3,753
10,186
437,081
84,885
4,274
205,628
34,013
171,615
13,075
129,218
15,453
1,780
1,833
9,246
75,194
16,523
581
35,256
6,421
28,834
1,813
21,022
6,493
165
1,921
940
162,176
25,697
2,596
79,442
11,759
67,683
4,313
50,128
4,675
204
175
3,480
475,377
472,649
2,727
388,311
386,211
2,100
309,932
308,300
1,632
78,379
77,911
469
87,065
86,438
627
1,484
508
237
799
305
160
674
253
134
125
53
26
685
202
78
49 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
50 Credit cards and related plans
51
Other (includes single payment and installment)
52 Loans to foreign governments and official institutions
53 Obligations (other than securities) of states and political subdivisions in the United States
54
55
56 Other loans
57
Loans for purchasing and carrying securities
58
333,152
72,451
115,186
1,701
35,218
945
34,273
70,741
16,068
54,673
246,382
41,823
70,782
1,636
29,533
759
28,774
65,261
15,143
50,118
207,172
39,603
59,676
1,188
21,920
548
21,372
45,557
9,266
36,291
39,210
2,220
11,107
448
7,612
211
7,402
19,703
5,877
13,826
86,769
30,628
44,404
65
5,686
186
5,499
5,480
925
4,555
59 Lease financing receivables
60 Customers' liability on acceptances outstanding
61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
62
32,328
18,024
33,309
147,533
27,867
16,847
28,943
123,967
23,199
13,002
17,916
93,252
4,668
3,845
11,027
30,715
4,461
1,176
4,366
23,566
1 Total assets6
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
12
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
13
Mother
14 Securities issued by states and political subdivisions in the United States
15 Other domestic debt securities
16
All holdings of private certificates of participation in pools of residential mortgages
17
All other
18 Foreign debt securities
19 Equity securities
20
Marketable
21
Investments in mutual funds
T>
Other
23
Less: Net unrealized loss
24
Other equity securities
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Federal funds sold and securities purchased under agreements to resell 10
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
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 finance agricultural production and other loans to farmers
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
46 Acceptances of other banks 11
47
Of U.S. banks
48
Of foreign banks
Commercial Banks A73
4.21—Continued
Members
Item
Total
Total
National
State
63 Total liabilities and equity capital
2,579,980
2,029,334
1,634,297
395,037
64 Total liabilities4
2,399,295
1,891,717
1,525,064
366,653
65 Total deposits
66 Individuals, partnerships, and corporations
67 U.S. government
68 States and political subdivisions in the United States
69 Commercial banks in the United States
70 Other depository institutions in the United States
71 Banks in foreign countries
72 Foreign governments and official institutions
73 Certified and official checks
1,908,885
1,757,499
4,229
82,475
31,819
8,081
6,498
1,357
16,928
1,477,853
1,357,727
3,571
61,442
28,294
6,295
5,907
1,258
13,360
1,211,322
1,115,610
3,124
51,526
5,319
3,249
914
9,781
266,531
242,117
447
9,916
6,494
976
2,659
344
3,579
74 Total transaction accounts
75 Individuals, partnerships, and corporations
76 U.S. government
77 States and political subdivisions in the United States
78 Commercial banks in the United States
79 Other depository institutions in the United States
80 Banks in foreign countries
81 Foreign governments and official institutions
82 Certified and official checks
541,740
464,395
2,990
21,567
24,390
4,793
5,923
754
16,928
433,346
367,628
2,451
17,040
22,468
4,053
5,638
710
13,360
348,480
297,718
2,132
14,319
17,714
3,317
3,056
443
9,781
84,866
69,910
319
2,721
4,754
735
2,582
266
3,579
83 Demand deposits (included in total transaction accounts)
84 Individuals, partnerships, and corporations
85 U.S. government
86 States and political subdivisions in the United States
87 Commercial banks in the United States
88 Other depository institutions in the United States
89 Banks in foreign countries
90 Foreign governments and official institutions
91 Certified and official checks
377,472
309,422
2,953
12,333
24,386
4,778
5,919
752
16,928
307,696
248,785
2,419
10,275
22,465
4,045
5,637
709
13,360
242,437
197,359
2,101
8,673
17,714
3,310
3,056
443
9,781
65,259
51,427
318
1,602
4,751
735
2,581
266
3,579
1,367,145
1,293,104
1,239
60,907
7,430
656
6,774
3,288
575
29
546
603
1,044,507
990,099
44,402
5,826
240
5,586
2,243
269
19
250
548
862,843
817,892
992
37,207
4,086
73
4,013
2,002
192
9
184
471
181,664
172,207
128
7,195
1,740
167
1,573
241
77
10
67
77
263,789
31,368
31,879
28,067
85,043
18,465
1,917
22,869
93,127
224,332
21,488
16,319
25,586
64,642
17,289
1,405
19,622
80,611
168,245
17,927
14,001
18,149
53,030
13,419
1,344
18,037
59,554
56,086
3,561
2,317
7,437
11,612
3,870
60
1,585
21,057
180,685
137,617
109,233
28,383
1,621
104,220
70,086
31,904
8,182
718
80,998
53,407
21,761
4,306
623
67.185
46,243
18,285
4,099
95
13,813
7,164
3,476
207
23,722
17,455
14.186
3,269
325,722
165,485
531,052
307,862
37,024
161,077
1,531,413
260,086
128,195
395,783
229,103
31,341
123,570
1,170,157
215,117
96,026
336,046
195,919
19,734
104,115
968,886
44,969
32,169
59,737
33,184
19,455
201,271
1,624,942
35,798
1,275,589
30,191
1,047,980
22,187
227,609
8,004
164,079
125,963
106,141
19,821
323,826
161,477
310,282
551,124
258,580
124,732
231,004
415,018
213,337
93,442
196,746
344,967
45,243
31,290
34,257
70,051
2,882
1,589
1,332
257
92 Total nontransaction accounts
93 Individuals, partnerships, and corporations
94 U.S. government
95 States and political subdivisions in the United States
96 Commercial banks in the United States
97
U.S. branches and agencies of foreign banks
98
Other commercial banks in the United States
99 Other depository institutions in the United States
100 Banks in foreign countries
101
Foreign branches of other U.S. banks
102
Other banks in foreign countries
103 Foreign governments and official institutions
104
105
106
107
108
109
110
111
112
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
113 Total equity capital®
MEMO
114
115
116
117
118
119
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
120
121
122
123
124
125
126
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
127 Total loans
128 Obligations (other than securities) of states and political subdivisions in the United States . . .
129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
Nontransaction accounts
130 Money market deposit accounts (MMDAs)
131 Other savings deposits
132 Time certificates of deposits of $100,000 or more
133 All other time deposits
134 Number of banks
Footnotes appear at the end of table 4.22
1,120
21,800
11,606
A76
Special Tables • February 1991
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2-6
Consolidated Report of Condition, June 30, 1990
Millions of dollars
Members
Nonmembers
Item
1 Total assets6
2 Cash and balances due from depository institutions
Currency and coin
3
4
Noninterest-bearing balances due from commercial banks
5
Other
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
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
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 resell1"
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
25 Loans secured by real estate
26
Construction and land development
27
Farmland
28
1-4 family residential properties
29
Revolving, open-end loans, and extended under lines of credit
30
All other loans
31 Multifamily (5 or more) residential properties
32
Nonfarm nonresidential properties
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
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
Total
National
State
2,956,864
2,178,639
1,752,964
425,674
778,226
209,639
24,806
161,250
18,972
129,607
15,840
31,643
3,132
48,389
5,833
31,317
17,575
13,822
3,754
13,742
153,517
124,703
99,945
24,758
28,814
2,568,899
1,871,495
1,512,990
358,505
697,404
558,449
406,829
85,762
57,803
3,557
54,249
8,055
4,013
1,928
2,534
449
4,042
148,843
68,448
3,690
1,874,093
12,486
1,861,607
377,166
274,799
58,840
39,452
2,458
36,994
4,075
1,080
864
328
112
2,9%
112,857
39,244
2,488
1,390,089
8,617
1,381,472
295,533
219,060
44,851
28,411
1,952
26,459
3,210
863
729
214
80
2,347
86,769
33,231
2,079
1,137,604
6,915
1,130,689
81,634
55,739
13,989
11,040
505
10,535
865
217
135
113
32
648
26,088
6,013
409
252,485
1,702
250,783
181,283
132,030
26,922
18,352
1,099
17,255
3,980
2,933
1,064
2,206
337
1,046
35,986
29,204
1,202
484,004
3,869
480,134
775,381
134,844
17,130
375,735
55,239
320,495
21,149
226,523
551,792
104,676
8,001
262,870
41,719
221,152
15,590
160,655
467,894
87,325
6,813
222,728
34,983
187,746
13,626
137,401
83,899
17,351
1,188
40,142
6,736
33,406
1,964
23,254
223,588
30,168
9,129
112,864
13,521
99,343
5,559
65,868
33,098
31,899
515,105
2,411
27,801
16,446
404,864
1,211
19,188
14,268
322,545
1,042
8,613
2,179
82,319
169
5,297
15,453
110,241
1,200
372,263
74,567
152,182
36,767
1,004
35,763
74,261
32,909
18,038
33,309
160,288
262,210
42,772
85,660
30,093
782
29,312
67,613
28,059
16,859
28,943
129,034
219,682
40,444
71,344
22,384
568
21,815
47,265
23,336
13,012
17,916
97,356
42,528
2,329
14,316
7,709
213
7,4%
20,348
4,723
3,847
11,027
31,678
110,053
31,795
66,521
6,674
222
6,451
6,648
4,850
1,179
4,366
31,253
48 Total liabilities and equity capital
2,956,864
2,178,639
1,752,964
425,674
778,226
49 Total liabilities4
2,741,999
2,027,699
1,633,270
394,429
714,300
50 Total deposits
51
Individuals, partnerships, and corporations
52
U.S. government
53
States and political subdivisions in the United States
54
Commercial banks in the United States
55
Other depository institutions in the United States
56
Certified and official checks
57
Mother
2,243,061
2,064,072
4,807
105,165
33,037
8,993
19,085
7,903
1,610,215
1,479,443
3,792
69,790
29,087
6,617
14,300
7,186
1,316,744
1,212,547
3,300
58,351
22,292
5,571
10,503
4,180
293,471
266,8%
492
11,439
6,795
1,046
3,797
3,006
632,846
584,629
1,015
35,375
3,950
2,376
4,785
717
58 Total transaction accounts
59
Individuals, partnerships, and corporations
60
U.S. government
61
States and political subdivisions in the United States
62 Commercial banks in the United States
63
Other depository institutions in the United States
64
Certified and official checks
65
All other
627,528
540,314
3,467
27,906
25,025
5,037
19,085
6,695
468,579
398,733
2,635
19,363
23,028
4,167
14,300
6,354
376,891
322,917
2,276
16,235
18,046
3,411
10,503
3,503
91,688
75,815
359
3,128
4,982
756
3,797
2,851
158,949
141,581
832
8,543
1,998
870
4,785
341
66 Demand deposits (included in total transaction accounts)
67 Individuals, partnerships, and corporations
68
U.S. government
69
States and political subdivisions in the United States
70
Commercial banks in the United States
71
Other depository institutions in the United States
72
Certified and official checks
73
All other
422,344
348,820
3,419
14,295
25,021
5,014
19,085
6,690
326,659
265,236
2,600
10,989
23,024
4,157
14,300
6,353
257,554
210,584
2,242
9,275
18,046
3,401
10,503
3,503
69,105
54,652
358
1,714
4,979
756
3,797
2,850
95,685
83,585
819
3,306
1,996
857
4,785
337
1,615,533
1,523,758
1,340
77,260
8,012
3,956
1,208
1,141,636
1,080,710
1,158
50,427
6,059
2,450
832
939,853
889,629
1,024
42,116
4,246
2,160
677
201,783
191,081
134
8,310
1,813
290
155
473,897
443,048
183
26,833
1,952
1,506
376
74 Total nontransaction accounts
75
Individuals, partnerships, and corporations
76
U.S. government
77
States and political subdivisions in the United States
78
Commercial banks in the United States
79 Other depository institutions in the United States
80
All other
Commercial Banks
All
4.22—Continued
Members
Item
81
82
83
84
85
86
87
88
89
Nonmembers
Total
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
90 Total equity capital9
Total
National
State
266,804
32,705
33,557
28,596
85,876
18,479
2,039
22,869
97,144
225,825
22,158
17,142
25,813
64,948
17,300
1,433
19,622
82,166
169,303
18,321
14,665
18,331
53,288
13,428
1,365
18,037
60,811
56,522
3,837
2,477
7,482
11,660
3,872
67
1,585
21,355
40,979
10,547
16,415
2,783
20,928
1,179
606
3,246
14,978
214,865
150,939
119,694
31,245
63,926
25,161
9,970
2,792
1,101
267
987
47
2,873
6,167
23,822
9,792
2,605
1,082
244
962
46
2,705
6,043
15,497
5,972
2,405
785
31
347
46
1,464
4,123
8,325
3,821
200
297
213
615
0
1,242
1,921
1,340
178
187
19
23
25
1
167
124
122,376
71,176
32,902
9,054
87,945
53,676
22,005
4,535
72,756
46,431
18,462
4,265
15,188
7,245
3,543
270
34,431
17,500
10,897
4,519
23,848
17,470
14,197
3,273
6,379
363,071
194,569
672,118
347,334
38,432
200,562
1,820,717
276,035
139,794
448,675
245,283
31,841
139,366
1,283,556
227,850
105,213
377,987
208,654
20,141
117,037
1,059,190
48,185
34,581
70,688
36,629
11,700
22,328
224,366
87,036
54,775
223,444
102,051
6,591
61,1%
537,161
1,821,953
1,353,495
1,108,862
244,633
468,459
204,765
142,130
119,362
22,768
62,635
361,011
190,070
349,422
692,148
274,462
136,139
247,072
467,798
226,004
102,487
209,450
386,842
48,458
33,652
37,622
80,956
86,549
53,931
102,350
224,350
12,480
5,075
4,059
1,016
7,405
MEMO
91 Assets held in trading accounts 13
92
U.S. Treasury securities
93
U.S. government agency corporation obligations
94
Securities issued by states and political subdivisions in the United States
95
Other bonds, notes, and debentures
%
Certificates of deposit
97
Commercial paper
98
Bankers acceptances
99
Other
100 Total individual retirement accounts (IRA) and Keogh plan accounts
101 Total brokered deposits
102 Total brokered retail deposits
103 Issued in denominations of $100,000 or less
104 Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
105
106
107
108
109
110
111
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
112 Total loans
113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
Nontransaction accounts
114
Money market deposit accounts (MMDAs)
115
Other savings deposits
116 Time certificates of deposit of $100,000 or more
117 All other time deposits
118 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 to." 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 " i s 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.
A78
Special Tables • February 1991
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19901
Millions of dollars
All states 2
Item
1 Total assets4
New York
California
Illinois
Total
including
IBF's
IBF's
only3
Total
including
IBF's
IBF's
only 3
Total
including
IBF's
IBF's
only
Total
including
IBF's
IBF's
only
583,759
259,369
424,933
206,844
85,598
26,136
45,396
16,198
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5 Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States . .
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
8
Other depository institutions in United States
(including their IBFs)
9 Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central
banks
12 Balances with Federal Reserve Banks
527,776
143,790
202,337
118,410
383,598
118,875
162,662
96,508
78,191
8,682
18,915
7,938
45,022
14,109
15,426
12,677
1,573
23
72,441
6
n.a.
50,558
1,512
17
60,727
6
n.a.
41,426
28
1
4,469
0
n.a.
3,834
5
1
6,479
0
n.a.
5,112
63,435
47,769
53,180
38,896
3,900
3,782
5,835
4,924
9,006
2,788
7,547
2,530
569
52
644
188
68,612
1,462
67,846
1,416
55,670
1,320
55,076
1,274
4,110
70
4,105
70
7,579
68
7,565
68
67,149
1,141
66,430
n.a.
54,350
949
53,802
n.a.
4,040
74
4,035
n.a.
7,511
45
7,497
n.a.
13 Total securities and loans
311,961
71,903
206,789
55,925
60,331
9,726
27,207
2,309
46,266
9,805
14,148
n.a.
40,688
9,492
12,313
n.a.
3,626
60
1,200
n.a.
1,371
192
564
n.a.
14 Total securities, book value
15 U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures and corporate stock
(including state and local securities)
6,370
n.a.
6,110
n.a.
162
n.a.
21
n.a.
30,090
14,148
25,086
12,313
3,404
1,200
1,158
564
21,466
13,810
4,085
3,571
4,080
2,483
205
1,392
20,053
12,926
3,671
3,456
3,828
2,286
200
1,342
756
521
180
55
246
191
5
50
214
144
9
61
0
0
0
0
265,868
173
265,696
57,791
36
57,755
166,223
121
166,102
43,645
33
43,612
56,744
38
56,705
8,530
3
8,527
25,843
7
25,836
1,745
0
1,745
41,669
56,989
36,895
31,674
5,221
635
27,942
10,137
9,399
737
21,758
41,467
26,604
22,297
4,307
429
19,062
6,167
5,544
623
13,060
10,384
7,490
7,042
449
136
6,160
3,353
3,258
95
4,199
3,283
2,569
2,124
445
35
1,259
569
549
20
86
20,008
355
19,653
7,793
0
17,805
325
17,480
1,013
36
14,826
282
14,544
5,591
0
12,895
252
12,643
826
49
2,845
62
2,783
996
0
2,808
62
2,746
148
0
714
11
703
711
0
690
11
680
27
137,809
118,364
19,445
1,904
388
1,516
14,881
257
14,624
20
1
19
80,246
65,428
14,818
1,257
300
956
12,445
148
12,297
20
1
19
30,775
28,049
2,726
366
28
338
1,690
98
1,592
0
0
0
17,074
16,597
477
219
0
218
319
10
309
0
0
0
14,312
12,955
11,628
10,549
477
396
116
104
2,800
2,593
11
335
2,193
2,083
10
303
600
86
0
0
0
242
0
0
50,560
26,236
17,787
8,450
7,945
n.a.
n.a.
n.a.
37,881
19,290
11,812
7,477
6,401
n.a.
n.a.
n.a.
8,421
5,733
4,943
790
1,004
n.a.
n.a.
n.a.
3,493
950
948
1
440
n.a.
n.a.
n.a.
24,323
55,983
7,945
57,031
18,591
41,335
6,401
44,182
2,688
7,407
1,004
7,221
2,543
374
440
771
55,983
n.a.
41,335
n.a.
7,407
n.a.
n.a.
57,031
n.a.
44,182
n.a.
7,221
n.a.
52 Total liabilities4
583,759
259,369
424,933
206,844
85,598
26,136
45,396
16,198
53 Liabilities to nonrelated parties
510,925
227,212
387,092
185,277
77,514
23,963
30,369
10,374
18 Federal funds sold and securities purchased under
agreements to resell
19 U.S. branches and agencies of other foreign banks
20
Commercial banks in United States
Other
21
22 Total loans, gross
Less: Unearned income on loans
23
24 Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including IBFs)
28
U.S. branches and agencies of other foreign banks . . .
29
Other commercial banks in United States
30 Other depository institutions in United States (including
IBFs)
31
Banks in foreign countries
Foreign branches of U.S. banks
32
33
Other banks in foreign countries
34 Other financial institutions
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37 Non-U.S. addressees (domicile)
38 Acceptances of other banks
39 U.S. banks
40
Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities (secured and
unsecured)
43 All other loans
44 All other assets
45
Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
47
48
Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions 5
Net due from head office and other related depository
50
institutions
51
Net due from establishing entity, head offices, and other
related depository institutions
374
n.a.
771
U.S. Branches and Agencies
A79
4.30—Continued
Millions of dollars
All states 2
80 Demand deposits (included in transaction accounts
and credit balances)
81
Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
83
Non-U.S. addressees (domicile)
84
Commercial banks in United States (including IBF)s.
85
U.S. branches and agencies of other foreign banks
86
Other commercial banks in United States
87
Banks in foreign countries
88
Foreign branches of U.S. banks
89
Other banks in foreign countries
90
Foreign governments and official institutions
(including foreign central banks)
91
All other deposits and credit balances
92
Certified and official checks
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94
Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
96
Non-U.S. addressees (domicile)
97
Commercial banks in United States (including IBFs).
98
U.S. branches and agencies of other foreign banks
99
Other commercial banks in United States
100 Banks in foreign countries
101
Foreign branches of U.S. banks
102
Other banks in foreign countries
103 Foreign governments and official institutions
(including foreign central banks)
104
All other deposits and credit balances
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109 Commercial banks in United States (including IBFs).
110
U.S. branches and agencies of other foreign banks
111
Other commercial banks in United States
112 Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries
115
Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
Total
excluding
IBF's
IBF's3
only
Total
excluding
IBF's
IBF's
only 3
Total
excluding
IBF's
IBF's3
only
Total
excluding
IBF's
73,636
55,066
41,211
13,855
11,959
5,608
6,351
2,209
398
1,811
173,075
16,391
364
16,027
51,800
46,829
4,971
94,680
6,379
88,301
60,626
44,678
36,639
8,039
9,871
5,326
4,545
2,072
398
1,675
154,294
10,172
364
9,809
47,501
43,254
4,247
87,105
5,853
81,251
4,077
3,042
1,107
1,935
751
16
735
17
0
17
10,081
281
0
281
3,352
2,839
513
5,936
420
5,516
3,208
2,576
1,603
973
618
229
389
2
0
2
1,742
30
0
30
642
519
123
1,049
92
957
1,184
2,769
449
10,125
80
n a.
888
2,724
393
9,437
80
n.a.
222
23
22
513
0
3
1
7
21
0
n.a.
8,256
5,411
4,086
1,325
277
81
196
1,230
24
1,206
n.a.
7,088
4,457
3,532
925
272
80
191
1,135
24
1,111
n a.
307
261
223
37
1
0
1
17
0
17
n.a.
n.a.
228
216
212
5
0
0
0
2
0
2
359
531
449
321
510
393
2
4
22
1
1
7
7,409
4,986
3,873
1,113
180
16
165
1.012
24
988
6,488
4,264
3,430
834
175
15
161
921
24
897
228
185
160
25
0
0
0
16
0
16
216
205
200
5
0
0
0
2
0
2
n.a.
n.a.
n. a.
299
484
449
261
473
393
2
2
22
1
1
7
65,381
49,656
37,125
12,530
11,682
5,527
6,155
979
374
606
53,538
40,221
33,106
7,114
9,599
5,246
4,353
938
374
564
3,770
2,781
884
98
750
16
735
0
0
0
2,980
2,360
1,392
968
618
229
388
0
0
0
n. a.
173,075
16,391
364
16,027
51,800
46,829
4,971
94,680
6,379
88,301
10,125
80
n a.
n. a.
154,294
10,172
364
9,809
47,501
43,254
4,247
87,105
5,853
81,251
9,437
80
n a.
n.a.
n.a.
n.a.
1
1
219
19
568
2,213
826
2,237
n a.
n. a.
"V.
67 Transaction accounts and credit balances
(excluding IBFs)
68
Individuals, partnerships, and corporations
69
U.S. addressees (domicile)
70
Non-U.S. addressees (domicile)
71 Commercial banks in United States (including IBFs).
72
U.S. branches and agencies of other foreign banks
73
Other commercial banks in United States
74
Banks in foreign countries
75
Foreign branches of U.S. banks
76
Other banks in foreign countries
77
Foreign governments and official institutions
(including foreign central banks)
78
All other deposits and credit balances
79 Certified and official checks
Illinois
California
II
54 Total deposits and credit balances
55 Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58 Commercial banks in United States (including IBFs).
59
U.S. branches and agencies of other foreign banks
60
Other commercial banks in United States
61
Banks in foreign countries
62
Foreign branches of U.S. banks
63
Other banks in foreign countries
64
Foreign governments and official institutions
(including foreign central banks)
65
All other deposits and credit balances
66
Certified and official checks
New York
10,081
281
0
281
3,352
2,839
513
5,936
420
5,516
513
0
n a.
1,742
30
0
30
642
519
123
1,049
92
957
21
0
A80
Special Tables • February 1991
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1990'—Continued
Millions of dollars
All states 2
Item
117 Federal funds purchased and securities sold under
agreements to repurchase
118 U.S. branches and agencies of other foreign banks
119 Other commercial banks in United States
120 Other
121 Other borrowed money
122 Owed to nonrelated commercial banks in United States
(including IBFs)
123 Owed to U.S. offices of nonrelated U.S. banks
124 Owed to U.S. branches and agencies of
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
126 Owed to foreign branches of nonrelated U.S. banks . . .
127 Owed to foreign offices of nonrelated foreign banks
128 Owed to others
129 All other liabilities
130 Branch or agency liability on acceptances executed
and outstanding
131 Other liabilities to nonrelated parties
132 Net due to related depository institutions 5
133 Net due to head office and other related depository
institutions
134 Net due to establishing entity, head office, and other
related depository institutions 5
New York
California
Illinois
Total
including
IBF's
IBF's
only3
Total
including
IBF's
IBF's
only 3
Total
including
IBF's
IBF's
only 3
Total
including
IBF's
IBF's
only 3
77,004
16,360
28,228
32,415
133,148
6,280
2,212
379
3,689
40,986
55,195
10,980
17,668
26,547
76,585
3,461
973
240
2,248
21,896
14,289
3,600
6,550
4,139
39,409
1,692
697
84
911
11,329
6,911
1,744
3,593
1,575
15,310
1,108
532
55
521
7,239
71,797
25,841
15,023
2,226
36,653
13,156
4,846
847
25,481
8,209
6,704
730
8,318
3,891
3,118
469
45,956
25,209
2,283
22,926
36,142
12,797
24,073
1,723
22,351
1,889
23,498
16,302
1,426
14,876
23,630
4,000
15,221
866
14,356
1,829
17,271
4,611
548
4,063
9,317
5,974
4,569
548
4,020
56
4,426
4,128
292
3,836
2,865
2,649
4,121
292
3,829
0
54,061
6,871
40,392
5,626
9,657
860
3,197
285
31,497
22,564
n.a.
6,871
23,726
16,666
n.a.
5,626
6,327
3,330
n.a.
860
915
2,282
n. a.
285
5,823
72,835
32,157
37,841
21,567
8,084
2,173
15,027
72,835
n.a.
37,841
n.a.
8,084
n.a.
15,027
n.a.
n.a.
32,157
n.a.
21,567
n.a.
2,173
n.a.
5,823
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
139 Predetermined interest rates
140
Floating interest rates
141 Commercial and industrial loans with remaining maturity
of more than one year
142 Predetermined interest rates
143 Floating interest rates
2,696
1,156
1
2,368
918
1
97
176
0
91
60
2,084
1,510
325
76
72,527
40,731
31,796
40,103
20,395
19,708
17,584
11,259
6,325
9,488
5,505
3,983
65,282
21,277
44,005
n.a.
40,143
12,546
27,597
n.a.
13,191
4,285
8,906
n.a.
7,586
3,454
4,133
0
n. a.
U.S. Branches and Agencies
A81
4.30—Continued
Millions of dollars
All states 2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months ..
Total
excluding
IBFs
t
1
n.a.
19,013
All states 2
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
150 Number of reports filed6
IBFs
only 3
1
1
68,348
36,584
14,067
California
n.a.
17,697
New York
IBFs
only 3
13,323
45,268
n.a.
45,771
256
IBFs
only 3
51,344
81,656
555
0
Illinois
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
4,179
2,471
t
2,903
1,203
986
n.a.
\
723
IBFs
only 3
t
1,526
n.a.
173
California
Total
including
IBFs
Total
including
IBFs
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation " n . a . " indicates
Total
excluding
IBFs
IBFs
only 3
79,443
43,732
16,699
New York
Illinois
Total
including
IBFs
IBFs
only
11,532
4,184
1,158
1,367
564
n.a.
24,493
131
n.a.
0
10,168
54
n.a.
0
0
Total
including
IBFs
IBFs
only 3
that no IBF data re reported for that item, either because the item is not an eligible
IBF asset or liability or because that level of detail is not reported for IBFs. From
December 1981 through September 1985, IBF data were included in all applicable
items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agencyu report, available through
the G. 11 statistical release, gross balances were included in total assets and total
liabilities. Therefopre, total asset and total liability figures in this table are not
comparable to those in the G. 11 tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A82
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN,
Chairman
MARTHA R . SEGER
WAYNE D . ANGELL
OFFICE OF BOARD MEMBERS
DIVISION OF INTERNATIONAL FINANCE
Assistant to the Board
DONALD J . W I N N , Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
D I A N E E . WERNEKE, Special Assistant to the Board
EDWIN
M .
LARRY
J.
JOSEPH
R.
COYNE,
LEGAL DIVISION
General Counsel
Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI R . TIGERT, Associate General Counsel
SCOTT G . ALVAREZ, Assistant General Counsel
MARYELLEN A . B R O W N , Assistant to the General Counsel
J.
VIRGIL MATTINGLY, J R . ,
RICHARD
M .
ASHTON,
OFFICE OF THE SECRETARY
WILLIAM
W.
JENNIFER
J.
BARBARA
R.
Secretary
Associate Secretary
LOWREY, Associate Secretary
WILES,
JOHNSON,
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
Director
Assistant Director
ELLEN M A L A N D , Assistant Director
DOLORES S . SMITH, Assistant Director
GRIFFITH
GLENN
E.
L.
GARWOOD,
LONEY,
DIVISION OF BANKING
SUPERVISION AND REGULATION
Staff Director
D O N E . KLINE, Associate Director
FREDERICK M . STRUBLE, Associate Director
WILLIAM A . RYBACK, Deputy Associate Director
STEPHEN C . SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
HERBERT A . BIERN, Assistant Director
JOE M . CLEAVER, Assistant Director
ROGER T . COLE, Assistant Director
JAMES I . GARNER, Assistant Director
JAMES D . GOETZINGER, Assistant Director
MICHAEL G . MARTINSON, Assistant Director
ROBERT S . PLOTKIN, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
L A U R A M . HOMER, Securities Credit Officer
WILLIAM TAYLOR,
Staff Director
Senior Associate Director
CHARLES J . SIEGMAN, Senior Associate Director
D A V I D H . H O W A R D , Deputy Associate Director
ROBERT F . GEMMILL, StaffAdviser
DONALD B . ADAMS, Assistant Director
DALE W . HENDERSON, Assistant Director
PETER HOOPER I I I , Assistant Director
KAREN H . JOHNSON, Assistant Director
RALPH W . SMITH, JR. , Assistant Director
TRUMAN,
PROMISEL,
DIVISION OF RESEARCH AND STATISTICS
Director
Deputy Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
D A V I D J . STOCKTON, Associate Director
MARTHA BETHEA, Deputy Associate Director
PETER A . TINSLEY, Deputy Associate Director
M Y R O N L . KWAST, Assistant Director
PATRICK M . PARKINSON, Assistant Director
MARTHA S . SCANLON, Assistant Director
JOYCE K . ZICKLER, Assistant Director
LEVON H . GARABEDIAN, Assistant Director
(Administration)
MICHAEL
J.
PRELL,
EDWARD
C.
ETTIN,
DIVISION OF MONETARY AFFAIRS
Director
Deputy Director
BRIAN F . MADIGAN, Assistant Director
RICHARD D . PORTER, Assistant Director
NORMAND R . V . BERNARD, Special Assistant to the Board
DONALD
DAVID
L.
E.
KOHN,
LINDSEY,
OFFICE OF THE INSPECTOR GENERAL
BRENT
L.
BOWEN,
BARRY
R.
SNYDER,
Inspector General
Assistant Inspector General
A83
EDWARD W . KELLEY, JR.
JOHN P. LAWARE
DAVID W . MULLINS, JR.
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
S . DAVID FROST, StaffDirector
WILLIAM SCHNEIDER, Special Assignment:
THEODORE E . ALLISON,
Project Director, National Information Center
Equal Employment Opportunity
Programs Officer
PORTIA W . THOMPSON,
DIVISION OF HUMAN RESOURCES
MANAGEMENT
DAVID L . SHANNON, Director
JOHN R . WEIS, Associate Director
ANTHONY V. DIGIOIA, Assistant Director
JOSEPH H . HAYES, JR. , Assistant Director
FRED HOROWITZ, Assistant Director
OFFICE OF THE CONTROLLER
Controller
STEPHEN J . CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R . PAULEY, Assistant Controller (Finance)
GEORGE E . LIVINGSTON,
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
OFFICE OF THE EXECUTIVE DIRECTOR FOR
INFORMATION RESOURCES MANAGEMENT
ALLEN E . BEUTEL, Executive Director
STEPHEN R . MALPHRUS, Deputy Executive Director
MARIANNE M . EMERSON, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DIVISION OF HARDWARE AND SOFTWARE
SYSTEMS
Director
Assistant Director
RIGGS, Assistant Director
BRUCE M . BEARDSLEY,
D A Y W . RADEBAUGH, JR.,
ELIZABETH B .
DIVISION OF APPLICATIONS DEVELOPMENT AND
STATISTICAL SERVICES
WILLIAM R . JONES, Director
ROBERT J. ZEMEL, Associate Director
Po KYUNG KIM, Assistant Director
RAYMOND H . MASSEY, Assistant Director
RICHARD C . STEVENS, Assistant Director
StaffDirector
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, IK., Director
DAVID L . ROBINSON, Deputy Director (Finance
and
Control)
BRUCE J . SUMMERS,
Deputy Director (Payments and
Automation)
CHARLES W . BENNETT, Assistant Director
JACK DENNIS, JR. , Assistant Director
EARL G . HAMILTON, Assistant Director
JOHN H . PARRISH, Assistant Director
LOUISE L . ROSEMAN, Assistant Director
FLORENCE M . YOUNG, Assistant Director
84
Federal Reserve Bulletin • February 1991
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
ALAN GREENSPAN,
Chairman
WAYNE D . ANGELL
ROBERT P. BLACK
ROBERT P. FORRESTAL
E . GERALD CORRIGAN,
SELAS KEEHN
EDWARD W . KELLEY, JR.
JOHN P. LA WARE
Vice Chairman
DAVID W . MULLINS, JR.
ROBERT T. PARRY
MARTHA R . SEGER
ALTERNATE MEMBERS
ROGER GUFFEY
W . LEE HOSKINS
THOMAS C . MELZER
JAMES H . OLTMAN
RICHARD F. SYRON
STAFF
DONALD L . KOHN, Secretary and Economist
NORMAND R . V . BERNARD, Assistant Secretary
GARY P. GILLUM, Deputy Assistant Secretary
J . VIRGIL MATTINGLY, JR., General Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J . PRELL, Economist
EDWIN M . TRUMAN, Economist
JOHN M . DAVIS, Associate Economist
RICHARD G . DAVIS, Associate Economist
RICHARD W . LANG, Associate Economist
DAVID E . LINDSEY, Associate Economist
LARRY J . PROMISEL, Associate Economist
ARTHUR J . ROLNICK, Associate Economist
HARVEY ROSENBLUM, Associate Economist
CHARLES J . SIEGMAN, Associate Economist
THOMAS D . SIMPSON, Associate Economist
DAVID J . STOCKTON, Associate Economist
PETER D . STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY COUNCIL
B. KENNETH WEST, Seventh District
DAN W. MITCHELL, Eighth District
LLOYD P. JOHNSON, Ninth District
JORDAN L. HAINES, Tenth District
IRA STEPANIAN, First District
CHARLES S. SANFORD, JR., Second District
TERRENCE A. LARSEN, Third District
JOHN B. MCCOY, Fourth District
EDWARD E. CRUTCHFIELD, Fifth District
RONALD G. STEINHART, Eleventh District
E.B. Robinson, Jr., Sixth District
PAUL HAZEN, Twelfth District
Secretary
Associate Secretary
HERBERT V. PROCHNOW,
WILLIAM J . KORSVIK,
A85
CONSUMER ADVISORY COUNCIL
JAMES W . HEAD, Berkeley, California, Chairman
LINDA K . PAGE, Columbus, Ohio, Vice Chairman
VERONICA E. BARELA, Denver, Colorado
GEORGE H. BRAASCH, Oakbrook, Illinois
ToYE L. BROWN, Boston, Massachusetts
CLIFF E. COOK, Tacoma, Washington
R.B. (JOE) DEAN, JR., Columbia, South Carolina
DENNY D. DUMLER, Denver, Colorado
WILLIAM C . DUNKELBERG, Philadelphia, P e n n s y l v a n i a
JAMES FLETCHER, C h i c a g o , Illinois
GEORGE C. GALSTER, Wooster, Ohio
E. THOMAS GARMAN, Blacksburg, Virginia
DONALD A. GLAS, Hutchinson, Minnesota
DEBORAH B . GOLDBERG, W a s h i n g t o n , D . C .
MICHAEL M . GREENFIELD, St. L o u i s , Missouri
JOYCE HARRIS, Madison, Wisconsin
JULIA E. HILER, Marietta, Georgia
HENRY JARAMILLO, B e l e n , N e w M e x i c o
BARBARA KAUFMAN, San Francisco, California
KATHLEEN E. KEEST, Boston, Massachusetts
COLLEEN D. MCCARTHY, Kansas City, Missouri
MICHELLE S . MEIER, W a s h i n g t o n , D . C .
BERNARD F. PARKER, JR., Detroit, M i c h i g a n
OTIS PITTS, JR., M i a m i , Florida
VINCENT P. QUAYLE, Baltimore, Maryland
CLIFFORD N . ROSENTHAL, N e w York, N e w York
ALAN M . SILBERSTEIN, N e w York, N e w York
NANCY HARVEY STEORTS, D a l l a s , T e x a s
DAVID P. WARD, Chester, New Jersey
SANDRA L . WILLETT, B o s t o n , Massachusetts
THRIFT INSTITUTIONS ADVISORY COUNCIL
MARION O. SANDLER, Oakland, California, President
LYNN W . HODGE, Greenwood, South Carolina, Vice President
DANIEL C. ARNOLD, Houston, Texas
JAMES L. BRYAN, Richardson, Texas
DAVID L . HATFIELD, K a l a m a z o o , M i c h i g a n
RICHARD A. LARSON, West Bend, Wisconsin
PRESTON MARTIN, San Francisco, California
RICHARD D. PARSONS, New York, New York
ELLIOT K. KNUTSON, Seattle, Washington
JOHN WM. LAISLE, Oklahoma City, Oklahoma
WOODBURY C. TITCOMB, Worcester, Massachusetts
EDMOND M . SHANAHAN, C h i c a g o , Illinois
A86
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551 or telephone (202) 452-3244 or FAX
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD:
A
(202) 452-3102. When a charge is indicated, payment should
MULTICOUNTRY MODEL, May 1984.590 pp. $14.50 each.
accompany request and be made payable to the Board of
WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp.
Governors ofthe Federal Reserve System. Payment from foreign INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r 1 9 8 6 .
residents should be drawn on a U.S. bank.
440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.
December 1986. 264 pp. $10.00 each.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1984.120 pp.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY-
SIS AND POLICY ISSUES. August 1990.608 pp. $25.00 each.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1 9 8 8 - 8 9 .
FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or
$2.50 each in the United States, its possessions, Canada,
and Mexico. Elsewhere, $35.00 per year or $3.00 each.
CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
BANKING AND MONETARY STATISTICS. 1 9 1 4 - 1 9 4 1 . (Reprint o f
Part I only) 1976. 682 pp. $5.00.
ANNUAL STATISTICAL DIGEST
1974-78.
1981.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1980. 305 pp.
1982. 239 pp.
1983. 266 pp.
1984. 264 pp.
1985. 254 pp.
1986. 231 pp.
1987. 288 pp.
1988. 272 pp.
1989.256 pp.
$10.00 per copy.
$ 6.50 per copy.
$ 7.50 per copy.
$11.50 per copy.
$12.50 per copy.
$15.00 per copy.
$15.00 per copy.
$15.00 per copy.
$25.00 per copy.
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES
OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico.
Elsewhere, $35.00 per year or $.80 each.
THE FEDERAL RESERVE ACT and other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
ANNUAL PERCENTAGE RATE TABLES (Truth in L e n d i n g - R e g -
ulation Z) Vol. I (Regular Transactions). 1969.100pp. Vol.
II (Irregular Transactions). 1969. 116 pp. Each volume
$2.25; 10 or more of same volume to one address, $2.00
each.
Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.
Federal Reserve Regulatory Service. Looseleaf; updated at least
monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
three Handbooks plus substantial additional material.)
$200.00 per year.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
Federal Reserve Glossary
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancing
Home Mortgages: Understanding the Process and Your Rights
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know About
Home Equity Lines of Credit
PAMPHLETS FOR FINANCIAL INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable
for banks, bank holding companies, and creditors.
Limit of 50 copies
The Board of Directors' Opportunities in Community
Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
Rates for subscribers outside the United States are as follows The Right to Financial Privacy Act
and include additional air mail costs:
Signature Rules in Community Property States: Regulation B
A87
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
STAFF STUDIES:
Summaries Only Printed in the
Bulletin
Studies and papers on economic andfinancial subjects that are of
general interest. Requests to obtain single copies ofthejull text
or to be added to the mailing list for the series may be sent to
Publications Services.
Staff Studies 114-145 are out of print.
157. M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
159. N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e Liang
and Donald Savage. February 1990. 12 pp.
160. BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1 9 9 0 . 3 5 pp.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , by
Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN-
DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr
and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
RESULTS, by Flint Brayton and Peter B. Clark. December
1 9 8 5 . 17 pp.
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, by Stephen
A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, by John T.
Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION : RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Maty M. McLaughlin.
January 1987. 30 pp.
152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, by Carolyn D . Davis and
Alice P. White. September 1987. 14 pp.
1 5 4 . THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,
by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
1 5 5 . THE FUNDING OF PRIVATE PENSION PLANS, b y Mark J.
Warshawsky. November 1987. 25 pp.
156. INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
REPRINTS OF Bulletin ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
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.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
U.S. International Transactions in 1989. 5/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
A88
Index to Statistical Tables
References are to pages A3-A81 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19,20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20, 72-77
Domesticfinancecompanies, 36
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 78-81
Automobiles
Consumer installment credit, 39,40
Production, 49, 50
BANKERS acceptances, 9,23,24
Bankers balances, 18-20, 72, 74, 76, (Seealso Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 57, 78-81
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, 78-79
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20, 78-81
Commercial and industrial loans, 16, 18, 19, 20, 21, 72, 74,
76,78-81
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, 27, 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
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 Batiks (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
Treasuryfinancingof surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6,17,19,20,21,24,28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39, 40
Paper, 23,24
Financial institutions
Loans to, 19,20,21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 41,43, 44,45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 78-81
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4,10, 19, 20
Foreign exchange rates, 70
Foreign trade, 56
A89
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, 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
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
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
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
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)
A90
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
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
Jane G. Pepper
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101 John R. Miller
A. William Reynolds
45201 Kate Ireland
15230 Robert P. Bozzone
W. Lee Hoskins
William H. Hendricks
23219 Anne Marie Whittemore
Henry J. Faison
21203 John R. Hardesty, Jr.
28230 Anne M. Allen
Robert P. Black
Jimmie R. Monhollon
30303 Larry L. Prince
Edwin A. Huston
35283 Roy D. Terry
32231 Hugh H.Brown
33152 Dorothy C. Weaver
37203 Shirley A. Zeitlin
70161 James A. Hefner
Robert P. Forrestal
Jack Guynn
60690 Charles S. McNeer
Richard G. Cline
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 Katherine H. Smythe
Thomas C. Melzer
James R. Bowen
55480 Delbert W. Johnson
Gerald A. Rauenhorst
59601 James E.Jenks
Gary H. Stern
Thomas E. Gainor
64198 Fred W. Lyons, Jr.
Burton A. Dole, Jr.
80217 Barbara B. Grogan
73125 Ernest L. Hollo way
68102 Herman Cain
Roger Guffey
Henry R. Czerwinski
75222 Hugh G. Robinson
Leo E. Linbeck, Jr.
79999 W. Thomas Beard, in
77252 Gilbert D. Gaedcke, Jr.
78295 Roger R. Hemminghaus
Robert D. McTeer, Jr.
To be announced
94120 Robert F. Erburu
Carolyn S. Chambers
90051 Yvonne B. Burke
97208 William A. Hilliard
84125 D.N.Rose
98124 Bruce R. Kennedy
Robert T. Parry
Carl E. Powell
Buffalo
Cincinnati
Pittsburgh
RICHMOND*
Baltimore
Charlotte
Culpeper Communications
Vice President
in charge of branch
James O. Aston
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Albert D. Tinkelenberg1
John G. Stoides1
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
Donald E. Nelson
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L.Sloan1
Karl W. Ashman
Howard Wells
Ray Laurence
John D. Johnson
Kent M.Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, in 1
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.
A91
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
~ ~
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Federal Reserve Statistical Releases
Available on the Commerce Department's
Electronic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U.S. Department of
Commerce's electronic bulletin board. Computer
access to the releases can be obtained by sub-
scription. For further information regarding a
subscription to the electronic bulletin board,
please call (703) 487-4630. The releases transmitted to the electronic bulletin board, on a regular
basis, are the following:
Reference
Number
Statistical release
Frequency of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H. 8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H.10
Foreign Exchange Rates
Weekly/Monday
H. 15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z.7
Flow of Funds
Quarterly
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and the
payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rul-
U.S.
MONETARY
POLICY AND FINANCIAL
MARKETS
U.S. Monetary Policy and Financial Markets by AnnMarie Meulendyke offers an in-depth description of
the way monetary policy is developed by the Federal
Open Market Committee and the techniques employed
to implement policy at the Open Market Trading Desk.
Written from her perspective as a senior economist in
the Open Market Function at the Federal Reserve
Bank of New York, Ann-Marie Meulendyke describes
the tools and the setting of policy, including many of
the complexities that differentiate the process from
simpler textbook models. Included is an account of a
day at the Trading Desk, from morning informationgathering through daily decisionmaking and the execution of an open market operation.
The book also places monetary policy in a broader
ings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation
CC, Regulation J, the Expedited Funds Availability
Act and related statutes, official Board commentary on
Regulation CC, and policy statements on risk reduction in the payment system.
For domestic subscribers, the annual rate is $200 for
the Federal Reserve Regulatory Service and $75 for
each Handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the Service and $90 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to the 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.
context, examining first the evolution of Federal Reserve monetary policy procedures from their beginnings in 1914 to the end of the 1980s. It indicates how
policy operates most directly through the banking
system and the financial markets and describes key
features of both. Finally, the book turns its attention to
the transmittal of monetary policy actions to the U.S.
economy and throughout the world.
The book is $5.00 a copy for U.S. purchasers and
$10.00 for purchasers outside the United States. Copies are available from the Public Information Department, Federal Reserve Bank of New York, 33 Liberty
Street, New York, N.Y. 10045. Checks must accompany orders and should be payable to the Federal
Reserve Bank of New York in U.S. dollars.
@FedFRASER