Full text of Federal Reserve Bulletin : January 1980
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VOLUME 6 6 •
NUMBER 1 •
JANUARY 1980
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler
Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman
Michael J. Prell, Staff Director
The FEDERAL R E S E R V E B U L L E T I N 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. Direction for the art work is provided by Mack R. Rowe. Editorial support is
furnished by the Economic Editing Unit headed by Mendelle T. Berenson.
Table of Contents
L
above the Federal Reserve discount rate in
addition to permitting any state to reimpose
its state usury limits by enacting overriding
legislation, before the Senate Committee on
Banking, Housing, and Urban Affairs, December 17, 1979.
THE COMPETITIVE EFFECTS OF
INTERSTATE
BANKING
Discussion of the theory and evidence on
the question of interstate banking.
9
INDUSTRIAL
PRODUCTION
Output increased about 0.3 percent in December.
10
STATEMENTS
TO
CONGRESS
Governor Nancy H. Teeters offers the
Board's comments on S. 2002, a bill that
would require use of the actuarial method
in computing rebates of unearned finance
charges on transactions scheduled to be
paid in more than 36 installments; the actuarial method, as required by the bill, is basically fair, but the Board believes a more
comprehensive approach to the regulation
of consumer credit is preferable to further
p i e c e m e a l legislation, b e f o r e the Subcommittee on Consumer Affairs of the Senate Committee on Banking, Housing, and
Urban Affairs, December 11, 1979.
12
18
20
29
Governor Teeters reports on the Board's
enforcement activities relating to the Equal
Credit Opportunity Act and the Fair Housing Act and gives the background of the exa m i n a t i o n p r o c e d u r e s f o r enforcing t h e
a c t s , b e f o r e the S e n a t e C o m m i t t e e on
Banking, Housing, and Urban Affairs, December 21, 1979.
ANNOUNCEMENTS
Adjustment of interest rate ceilings to help
the small saver.
Issuance of information statement for the
guidance of those affected by the Community Reinvestment Act.
The Federal Reserve Banks had gross current earnings of about $10 billion in 1979.
Governor Henry C. Wallich comments on a
wide range of i s s u e s concerning international financial conditions including (1)
the functioning of foreign exchange markets, (2) the Federal Reserve's role in encouraging U.S. exports, (3) developments
affecting the international financial system,
and (4) the financial implications of higher
oil prices, before the Subcommittee on International Finance of the Senate Committee on Banking, Housing, and Urban Affairs, December 14, 1979.
Issuance of policy statement on divestiture
of nonbanking activities by bank holding
companies.
Vice Chairman Frederick H. Schultz presents the views of the Board on S. 1988, a
bill to grant additional lender groups the authority, now limited to national banks, to
set loan rates up to 1 percentage point
Adoption of amendments to Regulation H
establishing uniform standards for bank
recordkeeping, confirmation, and other policies and procedures. (See Legal Developments.)
Results of semiannual country exposure
lending survey, which show little increase
in international lending by U.S. banks.
Adoption of policy statements calling for
coordinated action among federal bank supervisors as to examination, supervision,
and corrective actions of bank holding companies and commercial banks.
Adoption of a report of condition required
quarterly by U.S. branches and agencies of
foreign and Puerto Rican banks.
quarter of 1978 to the fourth quarter of 1979
within the Committee's ranges for that period; it was recognized that persistence of recent relationships might result in growth of
M-2 at about the upper limit of its range.
Specifically, the Committee instructed the
Manager to restrain expansion of bank reserves to a pace thought to be consistent
with growth on the average in November
and December at an annual rate of about 5
percent in M-l and 8V2 percent in M-2, provided that in the period before the next regular meeting the f e d e r a l f u n d s r a t e remained generally within a range of I I V 2 to
15V2 percent.
Public availability of quarterly reports of
the financial condition of Edge corporations.
Publication of Annual Statistical
Digest,
1974-1978; Flow of Funds Accounts, 19491978; and "Federal Reserve Glossary."
Proposed amendment of criteria applied in
considering applications for formation of
o n e - b a n k holding c o m p a n i e s ; p r o p o s e d
clarification and simplification of the regulation dealing with check collection and
wire transfers; proposed policy statement
that would prohibit insiders in state member banks from profiting personally from
sales of life insurance in connection with
credit transactions; recommended policy
statement concerning disclosure of enforcement actions against financial institutions;
and proposed revisions of Regulation F to
conform with recent rulings of the Securities and Exchange Commission.
49
LEGAL
DEVELOPMENTS
Amendments to Regulations H, Q, and Z;
bank holding company and bank merger orders; and pending cases.
Ai
FINANCIAL AND BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
Changes in Board staff.
Admission of five banks to membership in
the Federal Reserve System.
A69 GUIDE TO TABULAR PRESENTATION
AND STATISTICAL RELEASES
A70 BOARD OF GOVERNORS AND STAFF
RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At the meeting on November 20, 1979, the
Committee agreed that in the conduct of
open market operations over the remainder
of 1979, the Manager for Domestic Operations should continue to restrain expansion
of bank reserves in pursuit of the Committee's objective of decelerating growth of
M-l, M-2, and M-3 over the fourth quarter
of 1979 to rates that would hold growth of
these monetary aggregates from the fourth
AH FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISOR Y COUNCILS
A73 FEDERAL RESERVE BANKS,
AND OFFICES
BRANCHES,
A74 FEDERAL RESERVE BOARD
PUBLICATIONS
A76 INDEX TO STATISTICAL
TABLES
A78 MAP OF FEDERAL RESERVE
SYSTEM
The Competitive Effects of Interstate Banking
Stephen A. Rhoades of the Board's Division of
Research and Statistics prepared this article.
Interstate banking is a development now emerging in the U.S. banking system that could have
profound implications for all facets of the system's structure. Elements of interstate banking
already exist, and they are likely to become more
significant. Interstate banking is of special interest now because the International Banking Act of
1978 directed the President, in consultation with
the regulatory agencies, to evaluate the appropriateness of the restriction on interstate banking in
the McFadden Act of 1927. The President probably will send recommendations to the Congress
during 1980.
Traditional economic theory suggests that the
removal or even the reduction of the restrictions
on interstate banking would foster competition.
The extent to which this reduction in barriers to
entry results in a more competitive market structure will depend heavily on the extent to which
entry is de novo. According to the empirical evidence, on the other hand, when states have
eased restrictions on expansion, market entry
has tended to occur primarily by acquisition; this
process has had an adverse effect on market
structure. Because of the potential for interstate
banking to change the U.S. banking structure
significantly and the generally low probability of
reversing structural changes in an industry, an
examination of the experiences with intrastate
banking under existing merger policy is useful.
In this context, structural changes mean
changes in the competitive environment that
directly or ultimately affect the number and size
distribution of competitors. For example, technological changes may increase the scale of operations required to operate efficiently so that
smaller firms cannot survive and the number of
firms in the industry will decline—the recent experience of the brewing industry. Or the demand
for a product may, for some reason, grow rapidly
and induce new firms to enter the industry, as in
the fast-food industry. Finally, unimpeded merger activity like that prevalent in the steel,
tobacco, petroleum, and automobile industries in
the late nineteenth and early twentieth centuries
can rapidly reduce the number of firms in an
industry. A primary reason for concern with industry structure is that theory indicates that
structure influences the degree of competition
and performance of an industry. Moreover, a
large body of empirical evidence demonstrates
that structure affects price and profit performance.
This article reviews the major influences on
the banking structure during the 1960s and 1970s
and argues that interstate banking is likely to
have an even more important effect. It then suggests that while simple microeconomic theory
supports the reduction in restrictions on interstate banking, the experience of individual states
in reducing restrictions on bank expansion has
not had a procompetitive effect on banking structure. It concludes that this seemingly perverse
result can probably be attributed to the fact that
much of the bank expansion takes place by merger and acquisition rather than de novo.
LEGISLATION
AND THE COURTS
Beginning with the passage of the Bank Merger
Act of 1960, legislative and judicial actions in the
1960s had considerable influence on banking
structure. That act became law after a decade of
debate over whether to apply the existing antitrust laws explicitly to banking or to incorporate
similar competitive standards into the existing
banking laws. Taking the latter approach, the law
required the bank regulatory agencies, for the
first time, to weigh the possible* competitive
effects of proposed mergers and acquisitions in
deliberating on applications. This legislative
mandate was reinforced by amendments to the
Bank Merger and Bank Holding Company Acts
in 1966. Strong judicial support for the emphasis
2
Federal Reserve Bulletin • January 1980
on competition in banking was provided by the
Supreme Court's 1963 decision in the Philadelphia National Bank case. 1 In addition to emphasizing the importance of competition, the
Court also indicated that the antitrust laws apply
to banking and took a hard line against horizontal
mergers. The Court said that section 7 of the
Clayton Act
. . . does require that the forces of competition
be allowed to operate within the broad framework of governmental regulation of the industry.
The fact that banking is a highly regulated industry critical to the nation's welfare makes the
play of competition not less important but more
so . . .
The Court found a horizontal merger to be illegal
if it
. . . produces a firm controlling an undue percentage share of the relevant market, and results
in a significant increase in the concentration of
firms in that market, [because it] is so inherently
likely to lessen competition substantially . . .
The effect of the 1960 legislation and subsequent court decision was to bar banks from
making significant horizontal mergers that would
have directly changed market structure. Instead,
banks have engaged in market-extension mergers—that is, mergers with firms that operate in
other geographic markets.
BANK HOLDING
COMPANIES
The second significant influence on banking
structure in recent years has been the evolution
of the bank holding company in the 1970s. This
influence stems from the mechanism that bank
holding companies have provided for geographic
expansion of banking organizations that otherwise would not have been possible, especially in
states with restrictive branching laws. Thus,
Florida, Texas, and Missouri, which are among
those states that have either unit-banking or limited-branching laws, have experienced the greatest expansion by bank holding companies. The
growing importance of the multibank holding
company is illustrated in table 1. Between 1968
and 1977, the number of multibank holding companies increased from 71 to 306, while the number of banks they controlled increased from 629
to 2,301.
The bank holding company has been an important vehicle for bank expansion, at least through
merger and acquisition, during the past decade.
Table 2 shows that acquisitions by bank holding
companies increased dramatically, from 25 in
1967 to 341 in 1973. Similarly, the percentage of
all bank mergers and acquisitions accounted for
by bank holding companies rose from 16 percent
to 74 percent. While multibank holding companies accounted for 27.0 percent of the nation's
banking offices and 34.6 percent of total U.S.
1. Offices and deposits of banks affiliated with all registered multibank holding companies,
selected years, 1956-77
Banking offices
Year-end
Multibank holding
companies (number)1
Bank affiliates
(number)
47
42
48
58
65
71
86
111
1383
1813
251
276
289
298
306
428
426
468
561
603
629
723
895
1,106
1,401
1,815
2,122
2,264
2,296
2,301
1956
1960
1965 .
.
1966
1967
1968
1969
1970
1971 , , ,
1972 . , ,
1973
1974
1975
1976
1977
Deposits
Number2
Percent
of U.S.
banking offices
Amount
(millions
of dollars)
1,211
1,463
1,954
2,363
2,688
2,891
3,397
4,155
5,665
7,536
9,328
11,009
12,160
12,040
12,863
5.8
6.2
6.7
7.8
8.6
8.9
10.1
11.8
15.4
19.7
23.1
25.8
27.2
26.2
27.0
14,843
18,274
27,560
41,081
29,827
57,634
62,574
78,064
129,492
192,448
239,148
287,381
297,472
286,533
324,626
Percent
of U.S.
banking deposits
7.5
8.0
8.3
11.6
12.6
13.2
14.3
16.2
24.0
31.2
35.1
38.4
37.8
34.2
34.6
1. Separate bank groups only. When a subsidiary bank is also a registered bank holding company, only one is included in the total.
2. Banking offices equal the sum of banks plus branches plus facilities.
3. Statistics for 1971 and 1972 are taken from Gregory E. Boczar, The Growth of Multibank Holding Companies, Staff Economic Studies 85
(Board of Governors of the Federal Reserve System, 1976). This is the only available source for those years of a breakout of multibank holding
companies from all registered bank holding companies.
Competitive
2. Acquisitions by bank holding companies
and bank mergers, 1967-77
Bank acquisitions by bank holding
companies
Year
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
Bank mergers
(number)
Number
Percent of all
mergers and acquisitions
25
33
102
146
154
229
341
200
98
78
88
16.1
20.6
41.3
50.5
59.7
66.6
74.0
62.0
63.6
48.4
54.3
130
127
145
143
104
115
120
123
56
83
74
SOURCE. Bank merger approvals by the Comptroller of the Currency and the Federal Deposit Insurance Corporation are reported annually in their respective Annual Reports. Bank mergers and bank
holding company acquisitions approved by the Federal Reserve Board
a r e r e p o r t e d m o n t h l y i n t h e FEDERAL RESERVE B U L L E T I N .
banking deposits in 1977 (table 1), they accounted for a disproportionately large 54.3 percent of
all approved bank mergers and acquisitions. This
expansion activity has affected state banking
structure. Over the period 1968-73, acquisitions
by bank holding companies increased statewide
concentration—as measured by the percentage
of deposits accounted for by the five largest
banking organizations—in 24 states. Nationally,
acquisitions by bank holding companies from
1968 through 1973 resulted in a concentration
level (defined as the percentage of all U.S. bank
deposits accounted for by the 100 largest banking
organizations) that was 2.3 percentage points
higher than it otherwise would have been.
INTERSTATE
BANKING
While legislation, court decisions, and the bank
holding company movement continued to shape
banking structure, interstate banking emerged in
the 1970s as a potentially more important influence.
Although the McFadden Act of 1927 expressly
prohibits interstate banking, major banking organizations have established a significant nationwide presence during the past decade. They have
done so through institutions that do not perform
the basic banking function of accepting deposits
and so do not violate the law. Domestic banks
have expanded nonbank activities by bank holding companies, expanded loan production offices, and broadened the activity of Edge Act
Effects of Interstate Banking
3
corporations. Moreover, the offices of foreign
banks form a de facto interstate network.
The nonbanking activities of bank holding
companies probably constitute the most extensive interstate presence of large banking organizations. The 1970 amendments to the Bank
Holding Company Act, which brought one-bank
holding companies under the same regulations as
multibank holding companies, significantly limited the ability of bank holding companies to
expand in nonbanking areas. The amendments
required the Board of Governors of the Federal
Reserve System to rule on the permissibility of
entry by bank holding companies into nonbanking activities; since then the Board has
approved 19 such activities by regulation or order. As tables 3 and 4 show, bank holding companies have expanded rapidly into these permissible activities during the 1970s, through
either de novo entry or acquisition of existing
firms. The most extensive acquisition activity
has been directed toward local-market, consumer-oriented industries; thus bank holding
companies have acquired many of the largest
mortgage banking firms in the country and a significant number of sizable consumer finance
companies (table 3). The extensive national coverage achieved in this manner is illustrated by the
fact that Citicorp has 229 consumer finance offices and mortgage outlets in 55 cities. Moreover,
including loan production offices and Edge Act
corporations, Citicorp now has about 400 offices
in 38 states and the District of Columbia; Bank of
America has 350 offices in 41 states; and Manufacturers Hanover Trust Company has 190 offices in 18 states.
Another facet of interstate expansion involves
the rapid growth of U.S. activities of foreign
banks, recently discussed in the BULLETIN.2
Standard banking assets (total assets minus
claims on related institutions and assets arising in
the process of clearing payments) of U.S. offices
of foreign banks increased from $22 billion in
May 1973 to $110 billion in October 1979. About
half of the 150 foreign banks that now operate
U.S. offices have offices in more than one state.
While the expansion of foreign banks in the
United States has not matched the broad geographic spread of domestic multibank holding
companies through their nonbank subsidiaries,
the foreign bank activity appears to have brought
4
Federal Reserve Bulletin • January 1980
3. Number of approved acquisitions of nonbank firms by bank holding companies, by activity, 1971-77
Activity
Mortgage banking
Consumer finance1
Factoring
Insurance agencies
Insurance underwriting
Trust activities
Leasing
Community development
Financial advice
Data processing
Others
Total
1971
1972
1973
1974
1975
1976
1977
2
2
0
0
0
1
1
0
0
0
0
6
11
26
4
13
0
1
1
0
0
1
2
59
34
231
3
25
13
4
8
0
5
6
3
332
33
160
2
34
13
1
4
0
11
6
0
264
13
8
0
33
13
3
3
0
1
4
4
82
3
58
2
26
17
3
14
0
1
4
10
138
12
14
2
10
8
1
5
2
9
16
16
95
Total
108
499
13
141
64
14
36
2
27
37
35
976
1. Includes commercial finance.
the interstate banking issue into focus. A major
reason was the lack of equity in the treatment of
U.S. and foreign banks with respect to interstate
expansion of banking offices that existed until the
passage of the International Banking Act of 1978.
This act limited the interstate expansion of domestic deposit-taking by foreign banks, and it
"grandfathered" offices existing or applied for
before July 27, 1978. It also directed the administration to study the McFadden Act. The issue of
interstate banking has also been highlighted by
the increasing provision of banking services by
nonbank financial institutions and retailers,
which are not subject to geographic constraints.
4. De novo entry of bank holding companies
into nonbank activities, 1971-771
Year
Number of entries
71
251
495
542
297
309
471
2,436
1971
1972
1973
1974
1975
1976
1977
Total
1. The figures do not necessarily reflect the initial entry of a holding
company into a nonbank activity through formation of a new company. Many of these entries involve simply setting up an additional
office of a nonbank subsidiary—for instance, a consumer finance or
mortgage banking concern—that the bank holding company already
owns.
A
CONFLICT
The indirect effects on banking structure of bank
holding company expansion, foreign bank operations in the United States, and loan production
offices are probably more significant than their
direct effects because all have contributed, in
one way or another, to a set of conditions that
make political ratification of interstate banking
more likely in the near future. Should this tendency be ratified or halted? Simple theory suggests that lowering barriers to entry will be procompetitive. The experience in banking, in
which entry frequently occurs by merger and acquisition, a factor that theory does not take into
account, indicates that lowered barriers to entry
generally will not result in procompetitive
changes in structure.
THEORY
By prohibiting banks in one state from establishing banking operations in another state, the
McFadden Act created major barriers to entry in
banking. The concept of barriers to entry has a
solid foundation in microeconomic theory. Indeed, the simple model of pure competition,
which offers the most efficient possible allocation
of an economy's resources, rests on the assumption, among others, of no barriers to the entry
and exit of resources. When this condition is violated, the pricing and output solution of a market
no longer reflects optimum allocative efficiency
but instead approximates the solution suggested
by an oligopoly model.
The simple models of microeconomic theory
imply that when barriers to entry into a market
exist, firms in that market will earn relatively
high profits. These profits reflect the monopoly
accorded the established firms by the protection
from the threat of entry or actual entry that
would alter the structure of their market to a
more competitive configuration—that is, one
with more competitors and lower concentration.
Starting with the theoretical models and their implications, students of industrial organization
have developed an analytical framework to test
Competitive
for the effect of barriers to entry in real-world
markets. These studies are almost unanimously
consistent with theory in concluding that barriers
to entry are an important element of market
structure. That is, such barriers along with other
elements of market structure have a significant
effect on prices and profits. Thus, in a classic
study of 20 manufacturing industries, rates of return were found to be significantly greater in industries with very high barriers to entry than in
other industries. 3 Even in connection with the
banking industry, for which the studies have
been fewer and narrower in scope, the evidence,
although not so consistent, suggests that higher
barriers to entry result in less competition. In a
recent study, unit banks operating in states that
permit branch banking were found to earn lower
profits and to pay higher interest on time and savings deposits than unit banks in unit-banking
states. 4 This finding suggests that branching,
which is characterized by lower barriers to entry,
results in relatively desirable competitive performance.
EVIDENCE ON THE DESIRABILITY
INTERSTATE BANKING: MARKET
OF
LEVEL
Unfortunately, the case for unrestricted interstate banking is not so clear-cut as theory and
supporting evidence make it appear. Specifically, there is enough relevant, though scattered,
evidence to cause skepticism regarding the competitive and other structural effects of interstate
banking. Although the studies outlined below do
not focus on the issue of interstate banking, they
raise some doubts about the competitive effects—indeed, they have been selected for that
reason.
A major argument for interstate banking is that
eliminating barriers to entry between states will
permit the geographic expansion of banks
beyond their state borders. This policy is expected to bring new entrants into local banking
markets, and thus has the potential for increasing
the number of competitors and for spurring deconcentration of local markets.
An early study to test this proposition within
states investigated changes in the structure of
local banking markets in New York and Virginia,
which liberalized their banking laws in 1960 and
Effects of Interstate Banking
5
1962 respectively. 5 The study focused on
changes in the number of banking organizations
and in concentration between June 1961 and June
1969 in six metropolitan areas in New York and
five in Virginia. The data revealed that both the
number of organizations and the market concentration increased in about the same number of
markets as they decreased. These findings do not
confirm the procompetitive structural effect that
is generally anticipated from a liberalization of
branching laws and the increased geographic expansion permitted by a reduction in barriers to
entry.
A study of the number of firms and concentration in 213 standard metropolitan statistical area
markets and 233 county markets between 1966
and 1975 found that more markets experienced
structural changes that enhanced competition
than changes that reduced it. 6 Procompetitive
changes occurred most frequently in markets
that were relatively highly concentrated in 1966,
probably in reflection of a simple statistical phenomenon. Of particular interest, procompetitive
structural changes tended to be somewhat greater in markets in unit-banking and statewidebranching states than in limited-branching states.
To examine the effects of actual geographic expansion of banks in a state on its local-market
structure over the period 1960-76, an index of
that expansion was used as an indicator of which
states have experienced geographic expansion
by banking organizations, rather than the
branching laws, because states with similar
branching laws may have very different experiences. 7 This difference is most notable in unitbanking states: some (Texas, for example) permit multibank holding companies while others
(Illinois, for example) do not. Statistical tests
were used to determine whether observed
changes in market structure were statistically
significant and to hold constant other factors that
might affect market structure. The analysis focused on 154 SMS A markets and 129 county
markets. Like the earlier study, the data revealed
that the majority of local markets experienced
decreases in concentration. The test results do
not, however, indicate that geographic expansion lowers local-market concentration. In other
words, markets in states with a substantial level
of geographic expansion by banks do not tend to
have greater decreases in concentration than do
6
Federal Reserve Bulletin • January 1980
markets in states with little or no geographic expansion. Because, quite naturally, states experiencing the greatest geographic expansion during
the period 1960-76 are those with statewidebranching and those that permit multibank holding companies, the results of the study do not
support the notion that branching or other forms
of expansion will yield more competitive market
structure.
An attempt was made to determine whether
mergers and branching laws affected changes in
the structure of local banking markets between
1966 and 1972.8 A multivariate regression analysis, which accounted for factors other than mergers and laws, focused on 228 SMS A markets.
Test results indicated that markets in unit-banking states experienced smaller increases or larger
decreases in concentration than did markets in
statewide-branching states. Furthermore, the
study revealed that markets in states that permit
multibank holding companies experienced a
greater increase in concentration than markets in
other states. Both findings are contrary to the
view that broader powers of branching or of other
geographic expansion for banks will result in
markets that are more competitively structured.
These four studies, taken together, suggest
that the pieces of evidence that cast doubt on the
procompetitive effects of various forms of expansion are not isolated exceptions. While these
studies focused on the structural effects of expansion, a large body of evidence supports a
relationship between market structure and pricing performance. Thus one can infer from the
findings that price and profit performance in markets will not improve and may worsen in the
wake of bank expansion in its present form. This
review is not exhaustive, and there is probably
other, similar evidence that is indirect but relevant to the issue of the competitive effects of interstate banking. In any event, skepticism regarding the procompetitive effects of interstate
banking under existing bank merger laws is clearly warranted.
EVIDENCE:
STATE AND NATIONAL
LEVELS
While part of the case for interstate banking is
the public benefit that could be derived from increased market competition, there is the possi
bility of an adverse effect: an increase in nationwide concentration (defined as the share of all
bank deposits accounted for by the 100 or 200
largest banks). While its implications cannot be
analyzed with the traditional models of economic
theory because it does not involve specific markets, increasing aggregate concentration raises
broad and important questions. Experience with
changes in concentration at the state level may
be indicative of the kind of change that could be
expected at the national level.
Subsequent to the liberalization of branching
laws in New York and Virginia, between 1961
and 1969, statewide concentration increased. 9
For example, the share of total deposits accounted for by the three largest banks in the state increased 2.4 percentage points in New York and
14.2 percentage points in Virginia. Thus the
anticipated adverse effect of liberalization did
materialize.
In an attempt to determine the effect of acquisitions by bank holding companies on nationwide
concentration, it was found that over the period
1968-73 the share of deposits accounted for by
the 100 largest banking organizations declined
2.0 percentage points, from 49.0 to 47.0 percent.
However, it was estimated that the decline
would have been 2.3 percentage points greater in
the absence of these acquisitions. Results at the
state level are also useful. During the period
1957-68, statewide concentration increased in
only 3 of 15 unit-banking states, 7 of 16 limitedbranching states, and 13 of 20 statewide-branching states. During the period 1968-73, concentration was found to have risen in 8 of 15 unit-banking states, 8 of 16 limited-branching states, and
12 of 20 statewide-branching states. The tendency for statewide concentration to increase more
often in statewide-branching states than in other
states is all the more impressive because these
states started the period with generally higher
levels of concentration. 1 0
The data in the study of changes in statewide
(three-bank) and local-market concentration reveal that during the period 1960-77, 14 out of 20
states experiencing geographic expansion had increases in statewide concentration. 11 In contrast,
only 12 of 28 nonexpansion states experienced
such increases. Moreover, many of the states
with a high level of geographic expansion experienced dramatic declines in the number of bank-
Competitive
ing organizations in the state between 1960 and
1977—for example, declines from 181 to 86
(North Carolina), 374 to 176 (New York), and
690 to 379 (Pennsylvania).
Another study tested the linked-oligopoly
hypothesis, which suggests that competition in a
market is adversely affected when the leading
firms meet in other markets. 12 The results of the
analysis support the hypothesis that the greater
the extent to which leading firms in a market
meet each other in other markets, the lower will
be competition. That is, changes in rank (mobility and turnover) of leading banks in a market—
the measure of rivalry—were relatively low in
markets when the leading firms met in a relatively large number of other markets. Since such intermarket linkages are established through
branching and bank holding company systems,
the loss of competition due to these linkages may
be one of the costs associated with extensive
geographic operations by individual banks. Data
indicate that the extent of these intermarket linkages increased substantially between 1968 and
1974. For example, in 1968 at least two of the top
five banks in 26 percent of the SMSA markets
met in at least one other SMSA market; by 1974
that proportion was 59 percent. Or from another
perspective, in 1968 there were 1,161 meeting
points in SMSAs between two firms that were
among the top five in a given SMSA; by 1974
there were 2,025 such meeting points.
The findings of all of these studies are consistent with commonsense expectations: intermarket expansion of banks will result in higher
Effects of Interstate
Banking
7
statewide concentration. To the extent that
linked oligopoly is important, the expansion may
result in a reduction in rivalry at the local-market
level as well. From this experience, one might
reasonably expect that at least one adverse effect
of interstate banking will be an increase in the
concentration of ownership of U.S. banking resources.
SUMMARY
AND
CONCLUSION
At present, serious discussion is heard in policy
circles about easing the restrictions on interstate
banking embodied in the McFadden Act of 1927
that pose an artificial barrier to the entry of firms.
Economic theory generally supports a reduction
of barriers to entry of any kind (for example,
quotas and tariffs) because that reduction should
foster more competitive market structure and
performance. However, some evidence based on
the experience of individual states with widely
varying laws on bank entry and branching suggests that lowered barriers to entry for banks
have an adverse effect on both local-market and
state structure. This result probably is attributable not to lower barriers per se, but rather to
policy in connection with market-extension
mergers. Thus under existing merger laws a reduction in restrictions on interstate banking is
unlikely to have a favorable effect on localmarket banking structure, and it is almost certain
to increase the concentration of U.S. banking resources.
•
Footnotes appear on page 8.
8
Federal Reserve Bulletin • January 1980
FOOTNOTES
1. United States vs. Philadelphia National Bank, 374 U.S.
2.
3.
4.
5.
(1963). The quotes below appear on pp. 372, 363.
Sydney J. Key and James M. Brundy, "Implementation
of the International Banking Act," Federal Reserve Bulletin, vol 65 (October 1979), pp. 785-96.
Joe S. Bain, Barriers to New Competition (Harvard University Press, 1956).
Donald T. Savage and Stephen A. Rhoades, "The Effect
of Branch Banking on Pricing, Profits, and Efficiency of
Unit Banks," paper presented at the Conference on Bank
Structure and Competition, Federal Reserve Bank of
Chicago, May 1979.
Bernard Shull, "Multiple Office Banking and the Structure of Banking Markets: The New York and Virginia
Experience," in Federal Reserve Bank of Chicago, Pro-
6. Samuel H. Talley, Recent Trends in Local Banking Mar-
ket Structure, Staff Economic Studies 89 (Board of Governors of the Federal Reserve System, 1977).
7. Stephen A. Rhoades, Geographic Expansion of Banks
and Changes in Banking Structure, Staff Studies 102
(Board of Governors of the Federal Reserve System,
1979).
8. Arnold A. Heggestad and Stephen A. Rhoades, "An
Analysis of Changes in Bank Market Structure," Atlantic Economic Journal, vol. 4 (Fall 1976), pp. 64-69.
9. Shull, "Multiple Office Banking."
10. Talley, Recent Trends.
11. Rhoades, Geographic Expansion.
12. Arnold A. Heggestad and Stephen A. Rhoades, "MultiMarket Interdependence and Local Market Competition
ceedings of a Conference on Bank Structure and Com-
in Banking," Review of Economics and Statistics, vol.
petition (1972), pp. 30-40.
60 (November 1978), pp. 523-32.
9
Industrial Production
Released for publication January 16
Industrial production increased in December by
an estimated 0.3 percent, after declines of 0.3
percent in November and 0.1 percent in October.
The production of autos, trucks, and related
products continued to drop in December, while
the output of equipment, consumer nondurable
goods, and materials for nondurable goods
increased.
Total industrial production, at 152.2 percent of
the 1967 average, was 0.3 percent higher than
in December 1978. Industrial production had advanced during the first quarter of 1979 and then
had fallen somewhat, mainly as a result of strikes
and shortages of motor vehicle fuel. After a partial recovery, total production fluctuated slightly
below the March high for the balance of the year.
This lack of further growth in total output was
due in large part to a decrease of more than 20
percent in the output of motor vehicles and parts.
Output of consumer goods was about unchanged in December. Auto assemblies, at an annual rate of 6.8 million units, were about 6 percent below the 7.2-million-unit rate in November. A further substantial decline in assemblies is
scheduled for January. Production of consumer
nondurable goods, such as food and clothing, increased 0.6 percent in December. Output of business equipment rose 1.0 percent, and production
of defense and space equipment continued to advance. Output of construction supplies declined
MATERIALS OUTPUT .
MATERIALS:
BUSINESS
EQUIPMENT
Nondurable
CONSUMER
GOODS
CONSUMER GOODS:
Durable , /
Nondurable
/CONSTRUCTION
SUPPLIES
lOO
1967=100
180
Annual rate, millions of units
MANUFACTURING:
160
Nondurable
140
120
100
1980
Federal Reserve indexes, seasonally adjusted. Latest figures Decernber. Auto sales and stocks include imports.
1979
Nov. p
Dec. e
July
Aug.
Sept.
151.8
149.4
146.6
148.9
149.3
148.8
172.1
159.6
156.3
155.6
152.2
149.9
147.3
149.1
147.7
149.7
173.8
159.5
155.6
155.8
.1
-.3
-.3
-.7
-.9
-.6
-.1
-.1
.1
.7
-.8
-.7
-1.0
-1.7
-6.2
.2
.1
.8
.6
-1.0
.5
.8
1.1
1.0
2.9
.3
1.2
-.5
-.6
.2
e Estimated.
160
PRODUCTS OUTPUT
1979
Industrial production
p Preliminary.
Seasonally adjusted, ratio scale, 1967 = 100
TOTAL INDEX
Percentage change from preceding month
1967 = 100
Total
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Intermediate products
Construction supplies
Materials
again in December and is now almost 2 percent
below the level of a year earlier.
Production of nondurable goods materials rose
0.8 percent in December, reflecting gains in the
production of textiles, paper, and chemicals.
Output of durable goods materials was about unchanged in December, after a decline of 1.2 percent in November, and production of energy
materials edged off.
NOTE. Indexes are seasonally adjusted.
Oct.
Nov.
Dec.
-.1
-.3
-.3
-.1
.4
-.3
-1.1
— .1
.1
.1
-.3
-.1
-.1
-.5
-2.0
.3
.2
.0
-.1
-.5
.3
.3
.5
.1
-1.1
.6
1.0
-.1
-.4
.1
Percentage
change
12/78
to
12/79
.3
.6
.8
-1.6
-8.7
1.6
4.2
-.3
-1.7
-.3
10
Statements to Congress
Statement by Nancy H. Teeters, Member, Board
of Governors of the Federal Reserve System, before the Subcommittee on Consumer Affairs of
the Committee on Banking, Housing, and Urban
Affairs, U.S. Senate, December 11, 1979.
Mr. Chairman, I am glad to appear before your
subcommittee today to offer the Board's comments on S. 2002, a bill that would require the
use of the actuarial method in computing rebates
of unearned finance charges in transactions
scheduled to be paid in more than 36 installments.
The Board supports the principle of curing
abuses that arise from the application of the Rule
of 78s in long-term transactions. The Board,
however, has serious reservations about whether
this problem should be addressed on a piecemeal
basis or by a more comprehensive approach.
Further, the Board questions whether this problem is an appropriate area for federal preemption
or is better left to the states under a revised Uniform Consumer Credit Code or other comprehensive model act. We hope that these hearings
will shed enough light on the problems associated with the Rule of 78s that it will be taken care
of at the state level so that the Congress need not
act.
The actuarial method of computing rebates required by the bill is basically fair to both the
creditor and the consumer. It is based upon the
same actuarial principles that are used to compute the annual percentage rate for Truth in
Lending purposes, and its application in computing a rebate to the consumer of unearned finance
charges upon early prepayment will yield the annual percentage rate disclosed. Under the alternative sum-of-the-digits method commonly used
for computing rebates, the so-called Rule of 78s,
the finance charge is earned sooner than under
the actuarial method. As a result, when a note is
repaid in full before maturity, a creditor has
earned more finance charge under the Rule of 78s
than would have been the case if the actuarial
method were used. Although with respect to
early prepayments there is some justification for
a creditor's receiving a greater yield than the actuarial method produces when a note is prepaid,
on longer-term transactions the disparity becomes abusive.
Disclosure is often recommended as an alternative to regulation, but regulating rebate methods through disclosure is ineffective. There is no
indication that consumers shop for rebate methods. All the methods are mathematically complicated, and it is hard to imagine that most consumers could distinguish between the actuarial
method and the Rule of 78s. You may recall that
the Truth in Lending Simplification and Reform
Act recognizes this and requires only disclosure
of whether a rebate will be made without further
distinctions.
One of the Board's reservations about the bill
is whether 36 installments is the proper demarcation between long- and short-term transactions.
The Board recommends that a more natural demarcation along industry lines be used. For example, if all auto credit requires fewer than a certain number of installments and mobile home
credit is generally granted on longer terms, a natural demarcation exists. Compliance costs are
cut because neither segment of the industry has
to learn both methods.
At a more significant level, since replacing the
Rule of 78s with the actuarial method reduces the
creditor's effective yield on notes prepaid before
maturity, the question arises whether the applicable rate ceiling should be adjusted to reflect the
changed rebate method. Historically, consumer
credit rate ceilings as well as methods of rebate
have been set by state law. Adjusting the rate
ceiling to keep from cutting creditor yield would,
however, involve preempting not only the rebate
methods specified by state law but also the state
rate ceilings.
The Board has considered alternative methods
11
of achieving the result sought by S. 2002. Instead
of prohibiting the Rule of 78s, a possible alternative would be requiring that contracts that exceed a specified maturity be written on an interest-bearing basis, that is, creditors could charge
the annual percentage rate on the balance outstanding. This is the method of computing
charges used by most credit unions, and it does
away with any need for rebates. The problem
with this approach is that many state laws are
constructed around an "add-on" or "discount"
method of computing rates. Under many of these
statutes the contract between the creditor and
debtor provides for repayment of a total sum
comprising principal and interest to be repaid. If
a note is paid off early, some rebate of unearned
finance charges is needed, and so state laws
specify rebate methods. Therefore, any federal
action in this area involves a significant preemption of state law as well as difficult technical
problems. Interest-bearing contracts have one
distinct advantage, however. While consumers
may not be able to distinguish between actuarial
rebates and rebates under the Rule of 78s, the
growing number of creditors switching to interest-bearing c o n t r a c t s and away from precomputed contracts suggests that consumers
prefer the interest-bearing approach. It is fairer,
and easier for the consumer to understand.
A discussion of the technical problems of the
bill and the alternatives as they relate to existing
state law illustrates the Board's serious concern
with any piecemeal legislation. With some exceptions, state law tends to be anachronistic and
disorderly. Each segment of the industry tends to
have its own law regulating rates and practices.
For example, a bank engaged in extending a full
range of consumer credit services in Massachusetts would have to take into account and comply
with the following state laws:
1. The Massachusetts Retail Instalment Sales
of Motor Vehicles A c t - M . G . L . A . c . 225B.
2. The Massachusetts Insurance Premium Finance Agency A c t - M . G . L . A . c . 255C.
3. The Massachusetts Retail Instalment Sales
and Services A c t - M . G . L . A . c . 255D.
4. The Massachusetts Small Loan Rate Provisions—M.G.L. A.c. 140 Sections 96-114A; and
the Small Loan Rate Order issued under these
provisions.
5. The Massachusetts Open-End Credit Interest Rate Provisions—M.G.L.A.c. 140 Section
114B.
6. The Massachusetts Second Mortgage A c t M.G.L.A.c. 140 Sections 90A-90E.
7. The Massachusetts Truth In Lending A c t M.G.L.A.c. HOC.
8. The Massachusetts Uniform Commercial
Code—M.G.L.A.c. 106.
9. Provisions found in Chapter 255 of the General Laws (a chapter entitled "Mortgages, Conditional Sales and Pledges of Personal Property
and Liens Thereon"), including: Section 12C—
Consumer Note Requirements; Section 12E—Liability of Credit Cardholders; Section 12F—
Holder in Due Course Provisions; Section 12G—
Limitations on the Charges for Credit Life Insurance; and Sections 13I-13J—Repossession Provisions.
10. The Massachusetts Fair Credit Reporting
A c t - M . G . L . A . c . 93 Section 49; and the new
Debt Collection Regulations of the Massachusetts Attorney General (CMR citation not yet assigned).
11. The Massachusetts Provisions Regarding
Cancellation of Home Solicitation Sales—
M.G.L.A.c. 93 Section 48.
12. The M a s s a c h u s e t t s Act Regarding the
Regulation of Business Practices for Consumer
Protection—M.G.L.A.c. 93A.
13. The Regulations of the Massachusetts Attorney General relating to Unfair and Deceptive
Practices—940 CMR 3.00.
14. The Regulations of the M a s s a c h u s e t t s
Commission Against Discrimination relating to
Discrimination in Credit—804 CMR 7.00.
In addition, the following federal statutes and
regulations would apply:
1. Regulation Z (Truth in Lending, Fair Credit Billing, and Consumer Leasing Acts). Massachusetts has been determined by the Board to
be exempt from the federal Truth in Lending
law because it has a substantially similar law
that has adequate provisions for enforcement.
2. Regulation B (Equal Credit Opportunity
Act).
3. Fair Housing Act.
4. Fair Credit Reporting Act.
5. Fair Debt Collection Practices Act.
6. Real Estate Settlement Procedures Act.
12
Federal Reserve Bulletin • January 1980
7. Regulation C (Home Mortgage Disclosure
Act).
8. Regulation E (Electronic Fund Transfer
Act).
9. Federal Trade Commission Holder in Due
Course Rule.
Given the surfeit of legislation and regulation,
the Board feels that it is time to consider a more
Statement by Henry C. Wallich, Member, Board
of Governors of the Federal Reserve System, before the Subcommittee on International Finance
of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, December 14, 1979.
I am pleased to be able to testify before this subcommittee on international financial conditions.
The wide range of issues on which you asked me
to comment can be grouped under four headings:
(1) the functioning of foreign exchange markets,
(2) the Federal Reserve's role in encouraging
U.S. exports, (3) developments affecting the international financial system, and (4) the financial
implications of higher oil prices. I have organized
my testimony accordingly.
FOREIGN EXCHANGE
MARKETS
On behalf of the Senate Committee on Banking,
Housing, and Urban Affairs, in the spring of this
year, the Federal Reserve conducted a survey of
major U.S. banks' foreign exchange activity during the period of exchange market turbulence
from September 15 to November 15, 1978. The
survey sought information on banks' daily positions, daily trading volume, and profits, and on
banks' internal monitoring of their traders' positions. The survey covered, on a consolidated
basis, the 15 U.S. banks that do the largest
amount of foreign currency business. It also covered the U.S. agencies and branches of five leading foreign banks.
The staff of the Federal Reserve Board analyzed the results of the survey, and I am submitting the staff report for the record. I will briefly summarize its main conclusions:
comprehensive approach to the regulation of
consumer credit. The Board makes no firm recommendation on whether federal or state law or
a cooperative venture is the better approach at
this time, but suggests that further piecemeal legislation will spawn additional regulatory burdens
that will add to creditor costs, will tend to raise
the amounts charged debtors, and in the end will
be a disservice to debtors as a group.
•
1. The daily data for the two-month period
present a picture of bank position-taking that is
consistent with that presented by the regular
Treasury Foreign Currency Reports on bank positions as of the close of business each Wednesday.
2. Banks' net positions and daily changes in
those net positions were generally small when
compared with their gross foreign currency positions, with their outstanding exchange contracts,
and with their overall volume of exchange-market transactions.
3. Statistical tests show essentially no correlation between banks' positions and dollar exchange rates during the period.
4. The volume of exchange-market transactions by this group of banks, both with banks and
with nonbanks, was fairly stable over the period.
No statistical evidence exists of a relationship
between the volume of transactions and decreases in the value of the dollar.
5. A significant positive correlation is apparent between the variability of dollar exchange
rates and the volume of trading. However, statistical tests were generally unable to provide evidence that higher volume "caused" greater exchange-rate variability.
6. About half of the respondent banks reported that they had no formal limits on positions
taken during the day (so-called daylight limits).
Of those banks that did have daylight limits,
none reported a change in those limits during the
period.
7. Quarterly foreign exchange trading profits
of the banks generally rose over the period 197678. This appears to have been related to the increase in variability of exchange rates over that
period.
Statements
The reason why banks appear to be able to
make greater foreign exchange profits when markets are volatile than when markets are calm
seems to lie in the nature of these banks' role in
the exchange markets.
These banks are all active dealers. As dealers,
their role is to stand ready to take short-term positions or "make a market" in foreign currencies
in order to accommodate quickly temporary imbalances between supply and demand by other
market participants—exporters, importers, international investors. To make a profit from taking a
position, a dealer has to buy at a price lower than
that at which he sells. The better a dealer can
anticipate future price movements, the more favorably can he position himself to take advantage of those movements. And the more rapidly
he can turn over a position of given profitability,
the greater his total profits.
Bank dealers in the foreign exchange market
make profits by taking small positions and turning them over frequently. Since volume, or turnover, seems to be positively correlated with exchange-rate volatility, and since dealers are better able to anticipate short-run price movements
than are other market participants, it is perhaps
not surprising that greater profits tend to be associated with periods of greater exchange-rate volatility.
The subcommittee has asked about foreign exchange reporting requirements abroad. The
banking authorities of all major countries require
commercial banks in their countries to report at
some regular interval on their foreign currency
positions. Many countries impose some formal
limits on banks' foreign currency positions, either for prudential (bank safety) reasons or for
exchange control or balance of payments reasons. The United States and Canada have no
such limits, and in October of this year the
United Kingdom abolished its remaining exchange controls, including limits on bank positions. In most countries, commercial banks are
required to report their positions at least on a
monthly basis; in a few countries, reports are
filed weekly, and in Switzerland any transaction
in Swiss francs that exceeds $5 million equivalent must be reported daily. Details in the required reports vary considerably: some countries
require data on each bank's combined spot and
to Congress
13
forward position in the home currency against all
foreign currencies taken together (France); others require spot and forward positions to be reported separately, and identification currency by
currency (Belgium, Germany, Switzerland, the
United Kingdom, Japan, Canada, and the United
States). In countries with strict exchange controls, banks may be required to identify whether
forward foreign exchange sales are with residents or nonresidents (Belgium).
The U.S. information on banks' foreign exchange positions is as comprehensive as that of
any country. Weekly data are collected from all
U.S. banks that have more than $10 million in
outstanding foreign exchange contracts, as well
as from U.S. agencies and branches of foreign
banks. Assets and liabilities, as well as exchange
contracts bought and sold, in eight foreign currencies are covered by the survey, and both
home offices and foreign branches of U.S. banks
must report. The United States is the only country with extensive and timely reporting on overseas branch activity. In addition, on a monthly
basis, U.S. banks must provide data on the maturity structure of their foreign exchange positions.
Switzerland and the United Kingdom are the
only major countries that regularly collect information on the volume of individual bank transactions. The Federal Reserve has conducted periodic surveys of turnover (1966, 1969, 1977) in the
U.S. market and will conduct another survey in
March 1980. These surveys provide concrete information on the magnitude of the market and
the importance of various types of transactions.
All major central banks, however, have reasonably good current impressions of the "condition
of the market" and the relative volume of trading
based on frequent discussions between commercial banks and the operating desks of the respective central banks. The New York Trading
Desk, for example, has direct phone links with
more than 40 banks in the United States, and it
talks with traders in a number of other banks.
The subcommittee has asked about the impact
on exchange markets of Rule no. 8 of the Financial Accounting Standards Board (FASB). This
rule requires U.S. corporations to value, for public reporting purposes, their net monetary assets
or liabilities denominated in foreign currencies at
current market rates and to identify so-called
14
Federal Reserve Bulletin • January 1980
translation gains or losses as a separate part of
net income.
When first promulgated, FASB-8 was the
source of considerable controversy—it was alleged to have caused corporations to engage in
forward exchange market contracts to cover liabilities denominated in certain currencies, particularly Swiss francs, which had appreciated substantially against the dollar. It was alleged that
corporations engaged heavily in such transactions, resulting in downward pressure on the dollar, in order to avoid large foreign exchange
translation losses, even if the covering transactions did not make sense from an economic view.
Whatever the merits of the rule—it has some, in
my view, upon which I will be glad to elaborate—
it remains controversial and is currently being
restudied by the FASB. However, the rule is no
longer a major source of concern in the exchange
market, in part, apparently because the market
has become accustomed to it and, in part, because many corporations appear to be less concerned about reporting translation losses. Therefore, corporations reportedly are undertaking
fewer foreign exchange transactions solely to
cover their "accounting exposure."
THE FEDERAL RESERVE
AND U.S.
EXPORTS
U.S. exports have increased at a rapid pace this
year, reflecting, in part, the improved U.S. competitive position arising from the depreciation
of the dollar in 1977 and 1978 and from the expansion of economic activity abroad. From the
fourth quarter of 1978 to the fourth quarter of this
year we expect an increase of 25 percent in exports of manufactures and other nonagricultural
goods. The increase has in part reflected higher
prices for exports, but volume has increased at
least 10 percent. Agricultural exports have also
risen. The strength of our export industries this
past year, and the prospect of further growth
next year, do not suggest that these industries
have been at a disadvantage in their access to
credit from U.S. financial institutions.
Federal Reserve policies are not designed to
channel funds to the financing of U.S. export industries or other particular sectors of the economy—a philosophy that is not universally held
abroad. Federal Reserve policy is designed to
promote financial stability externally and internally. Such policies can help to avoid the wide
gyrations in exchange rates that may disrupt international trade and finance and can provide an
environment for sound long-term financial planning by all U.S. companies, including exporters.
With respect to measures to facilitate bank financing of U.S. trade, the Federal Reserve in
June revised its regulations for Edge Corporations to increase the ability of these corporations
to provide international banking services more
effectively, in accordance with the congressional
mandate of the International Banking Act.
One change permits Edge corporations to finance the production of goods for export, whereas previously Edges were restricted to financing
only the transportation, storage, and actual exporting of goods sold abroad.
A second change permits Edge corporations
to establish domestic branches. By providing an
alternative organizational form through which
banks can conduct multistate Edge Act business,
the Board sought to increase the flexibility of
banks—especially regional banks and smaller
banks that might have limited amounts of capital
to invest in Edge corporations—to provide international banking services. Only recently have
banks begun to apply for Board approval of domestic branches of Edge corporations, so that it
will be some time before the impact of this
change can be properly assessed.
The Board is still studying a third change that
was proposed for public comment: the establishment of a special class of customers (Qualified Business Entities) all of whose transactions
could be presumed to be international, or incidental to their international activities, and therefore not subject to the transaction-by-transaction
screening that has been applied to operations of
Edge corporations. Most of the concerns about
this concept have centered on the possibility that
it would unduly expand the domestic banking
activities of Edge corporations. Data are needed
on the number and characteristics of companies
that might be qualified under various types of
guidelines, and judgments will be required on
the operational problems that might be encountered under various definitions. The Federal Reserve is currently studying this concept in light
Statements
of the substantial number of comments received
on the proposal.
There is, frankly, very little the Federal Reserve can do to promote the establishment of
Edge corporations. The procedures are relatively
simple. Nevertheless, there are statutory standards to be met, and, as in all chartering functions
of a banking nature, the Board must satisfy itself
about the reputation, expertise, and integrity of
the organizers and owners. As of now, all Edge
corporations are owned by banks. There are no
legal impediments to their ownership by nonbanking interests. Nor has much interest been
expressed by such groups in the past. Of course,
ownership of an Edge corporation by a nonbanking firm would raise some of the same kinds
of policy issues present when such firms own
commercial banks.
INTERNATIONAL
FINANCIAL
SYSTEM
DEVELOPMENTS
One aspect of the international financial system
that has received increased attention from policymakers over the past year has been the Eurocurrency or Xenocurrency markets. While the
Eurocurrency markets are linked to domestic financial markets and are subject to the influences
of monetary policy through the impact of policy
on interest rates, they do pose some problems for
monetary policy. My judgment is that these
problems have been of only moderate significance to date, but their significance is increasing.
Let me identify some of the ways in which the
Eurocurrency markets complicate the execution
of monetary policy. The existence of the Eurocurrency markets lessens the precision of domestic monetary control. Monetary authorities
could, in principle, act in such a way as to provide for the desired growth of bank liquidity, taking account of both the domestic and the Eur o c u r r e n c y m a r k e t s . One p r o b l e m that the
Federal Reserve would encounter in following
such an approach is that we cannot gauge well
the extent to which growth in the Eurocurrency
markets affects spending in the United States.
Dollars held or borrowed by nonbanks (U.S. or
foreign) in the Eurodollar market could be spent
anywhere in the world, not just in the United
to Congress
15
States. On the other hand, it is likely that growth
in the nondollar portions of the Eurocurrency
markets could stimulate spending in the United
States, at least marginally. Other monetary authorities, in Germany in particular, face similar
uncertainties.
Perhaps an even more serious problem in carrying out a monetary policy that takes explicit
account of the Eurocurrency markets would arise
because of the uneven effects of a restrictive
policy on the domestic and the Eurocurrency
markets. Those smaller domestic banks and their
c u s t o m e r s that h a v e less a c c e s s to t h e Eurocurrency markets than have the large international banks and their U.S. and foreign customers would absorb a disproportionate share of
the burden of a restrictive policy. This inequity,
in turn, could undermine support for an appropriate counterinflationary monetary policy. This
was one of the reasons why in its October 6 actions the Board included Eurodollar borrowings
as subject to the 8 percent marginal reserve requirement on increases in managed liabilities.
Moreover, if monetary authorities focus exclusively on the growth of domestic monetary aggregates, ignoring the effects of the more rapid
growth of liabilities to nonbanks that is occuring
in the Eurocurrency markets, they may facilitate
more expansionary and more inflationary conditions than they intend, or may be aware of. Indeed, there is a risk that, over time, as the Eurocurrency markets expand relative to domestic
markets, control over the aggregate volume of
money may increasingly slip from the hands of
central banks. Consequently, the Federal Reserve in its examination of redefinition of the
U.S. monetary aggregates has considered the
possibility of including some p o r t i o n of Eurocurrency liabilities to nonbanks. It would also
be prudent to have available additional instruments for controlling the Eurocurrency markets
such as we have for controlling domestic monetary aggregates—one of the principal reasons for
seriously considering the need for reserve requirements against Eurocurrency deposits on an
international basis.
With regard to international discussions of the
Eurocurrency markets and what might be done
to control their growth, I believe that there has
been some progress. It is now more generally
16
Federal Reserve Bulletin • January 1980
recognized that these markets potentially present
not only prudential problems but also monetary
policy problems. Countries have been studying
different techniques for coping with the markets
but are not yet agreed on the need for, or the
nature of, effective measures.
Another aspect of the international financial
system that has received increased attention
over the past year has been the phenomenon of
diversification of official reserves. We do not believe that such a process has accelerated during
1979. However, some tendency toward a multicurrency reserve system is obvious. Against this
background, attention is being given to the possible role of an International Monetary Fund
(IMF) Substitution Account in encouraging the
evolution of a system based on special drawing
rights.
FINANCIAL
IMPLICATIONS
OF HIGHER OIL PRICES
The average price of imported oil is now more
than 70 percent higher than it was at the end of
last year. It appears likely that the price of Organization of Petroleum Exporting Countries' oil
will increase further in 1980. Recent events in
Iran and other Middle E a s t e r n oil-producing
countries have underscored once again the vulnerability not only of the U.S. economy but also
of the economies of other oil-importing countries
to supply disruptions and to the adverse economic effects of higher oil prices.
The higher oil prices already experienced in
1979 are causing great difficulties. They have
contributed to the global acceleration of inflation
this year and to the slowdown of real economic
growth of the economies of the developed countries now expected in 1980. They are undermining the current-account positions of oil-importing c o u n t r i e s and forcing s o m e of t h e s e
countries to incur rapidly rising debts.
Additional price increases in 1980 would compound the pressures on developing countries and
industrial countries alike. The combined currentaccount deficit for the non-OPEC developing
countries in 1979 is likely to be about $10 billion
larger than in 1978 and could i n c r e a s e substantially further in 1980. The size of the increase
in 1980 will depend to a large extent on OPEC
pricing decisions.
As the OPEC surplus rises to new heights, it is
appropriate to ask oil producers whether they
fully realize the impacts on developing countries
of their pricing decisions. Some non-oil developing countries will be able to increase their international borrowings or their exports and thus
sustain a continuing flow of both oil and non-oil
imports, but many countries will be forced to
curtail imports in order to make ends meet.
Lower-income developing countries, in general,
must rely on official sources of finance—multilateral and bilateral—and may obtain bank credit
only as part of cofinancing arrangements. However, it is the developing countries with higher
income levels that will account for the bulk of the
enlarged deficits.
As a general principle, I believe that many
countries will have to place greater emphasis
than in the past on adjustment of their economies
to the higher oil bills rather than on financing enlarged deficits. It will probably be necessary, and
also highly desirable, to have the IMF play a
greater role in assisting countries to make the
necessary policy adjustments. It would be desirable if banks encouraged countries to turn to the
IMF and if countries went to the IMF before the
deterioration in their external financial condition
became extreme.
If the IMF is to play this role, it must have
adequate financial resources. The Congress now
has before it legislation that would lead to an increase in the size of the U.S. quota in the IMF by
50 percent; quotas of most other members would
increase by a similar percentage. These increases
were negotiated before the 1979 increases in oil
prices. Although the IMF now is in a fairly comfortable position to increase the scale of its lending, it would be highly desirable for the Congress
to act promptly to increase the U.S. quota so that
the IMF can play the more active role that will be
required over the next several years.
There will, of course, be a major role for the
commercial banks in financing the increased current-account deficits of oil-importing countries,
but it is not clear just what the size of that role
will be nor how lending will be shared among
banks. In recent years some developing countries have been able to add to their reserve asset
Statements
holdings, and it may be that they will draw on
these assets to help pay for needed imports. Alternatively, if bank credits are readily available,
oil-importing countries may step up their borrowing from banks.
In the year and a half ending last June, a great
surge occurred in international lending by nonU.S. banks, which increased their outstanding
loans to non-oil developing countries by $30 billion, while U.S. banks were adding only $5 billion of such loans to their portfolios. U.S. banks'
share of the total loans outstanding to these
countries fell from about one-half of the total to
less than 40 percent. This shift in the composition of international lending is clear evidence that
large foreign banks have become increasingly
competitive with the major American banks in
the provision of international financial services.
Whereas in the early 1970s it was unusual to see
a major syndicated Eurodollar bank credit that
did not have a U.S. bank participating in the
management group, today it is not uncommon for
syndicated credits to be arranged without any
U.S. bank participation.
The strong competition from European and
Japanese banks has resulted in borrowers paying
reduced interest margins (or spreads) over
LIBOR (the London Interbank Offer Rate). It
has been argued that the reduction in spreads in
Eurobanking has reflected a change from the uncertainties of the post-Herstatt era in the perception of risk as well as increased competition.
If this is the case, it might now be reasonable to
expect a widening of those spreads once again.
Risks today are higher because of pressures
stemming from rapidly rising oil prices and higher debt burdens of some countries. In addition,
there is an increased awareness of political risks
in international lending.
In fact, it would be desirable to see a widening
of interest margins on Euroloans not only to allow for increased recognition of risk but also to
permit banks to earn a suitable return on capital.
The low spreads on Eurocurrency loans in recent
years have tended to lower the return on capital
to U.S. banks, even though to some extent the
reduced spreads may have been offset by larger
income from fees or from collateral business.
The impact of low spreads has been particularly
strong on U.S. banks, whose capital ratios are
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17
higher than those of many of their European and
Japanese competitors. U.S. banks, therefore, require a higher return on assets in order to obtain
the same return on capital. In this light, the lessened participation by U.S. banks in Eurocurrency lending in an era of very narrow margins appears to me to have been sensible and
prudent.
A further essential element of prudent banking
practice is the diversification of loan and investment portfolios. This principle of diversification
underlies the system of country risk evaluation
now in use by U.S. bank supervisors. That system has already been described in other testimony before this subcommittee, and I shall not review it here.
You have asked whether there is some critical
percentage that in my view should serve as a
maximum exposure for a U.S. bank in any foreign country. There are, I believe, sound reasons
for not establishing a single maximum figure. Positions and capabilities of individual commercial
banks differ widely. Moreover, risk has many dimensions that cannot be captured in a single figure. Risk exposure may be quite different for
long-term and for short-term credits; exposure
will vary depending on the type of security or
collateral; and it will be greatly dependent on the
economic and political conditions of the country.
Moreover, too often a maximum may in practice
tend to become a minimum as well.
Statutory limits on the volume of credit that a
bank may extend to a single borrower vary. The
limit for national banks is 10 percent of capital.
For other banks it depends on the laws of individual states; it is 25 percent for loans to foreign
governments by banks chartered in New York
State. These limits apply to credit risk rather
than to country risk and do not limit the total
credit that a bank might extend to a single country. The decision on exposure in a country is one
that must be made by the management of a bank
in light of the full range of factors affecting its
banking business. As relative exposure rises, a
bank should review its position carefully and
continually. In my judgment, exposures as high
as 25 percent or more of capital to a foreign country would warrant continual review by bank management, and for many countries the percentage
should be much lower. Indeed, it is inherent in
18
Federal Reserve Bulletin • January 1980
the new system for country risk evaluation that
individual banks are to direct increased attention
to their exposure to individual countries as such
exposure rises.
•
Statement by Frederick H. Schultz, Vice Chairman, Board of Governors of the Federal Reserve
System, before the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate, December 17, 1979.
ly recommends against tying ceiling rates to the
Federal Reserve discount rate. The Board believes that a more effective long-range solution to
rate ceilings should continue to be sought—for
national as well as state banks and other institutions. While a majority of the Board feels that S.
1988 can be supported as a stopgap measure, we
urge that a more appropriate reference rate than
the Federal Reserve discount rate be selected,
and that a sufficient differential above that rate be
specified to allow more adequate flexibility in
various credit markets.
Many members of the Congress are understandably reluctant to preempt state laws or constitutional provisions. The Board also feels that
corrective action at the state level would be the
most desirable way to redress the counterproductive effects of state usury laws. Quite a few
states, in fact, have already revised their usury
or other lending statutes since the beginning
of this year, although some revisions have been
outdated by subsequent market developments.
Further state action would await the next legislative sessions or, as in Arkansas, the process of
constitutional amendment.
S. 1988 would immediately address the market
dislocations due to rate ceilings in any state. As
noted earlier, it also would honor state prerogatives by enabling legislatures to reject the
rate flexibility provisions of this bill through passage of a new state law reaffirming existing regulations. In the view of the majority of the Board,
this approach would provide adequate preservation of state authority to regulate lending practices. But some members of the Board have
strong reservations about endorsing legislation
that would further encroach upon state powers.
The proposed bill would peg the maximum
permissible lending rate at one percentage point
above the discount rate on 90-day commercial
paper prevailing in the Federal Reserve district
in which a lending institution is located. The
Board recognizes that this formulation has applied to national banks since 1933. Nevertheless,
we have strong reservations about it, and I would
I am pleased to appear before the Senate Banking Committee today to present the views of the
Federal Reserve Board on S. 1988. This bill
would grant additional lender groups the authority, now limited to national banks, to set loan
rates up to one percentage point above the Federal Reserve discount rate regardless of any state
law stipulating a lower ceiling. In addition, it
would permit any state to reimpose its state usury limits by enacting overriding legislation. Another provision of the bill, also subject to state
override, specifies that rates paid on deposits
would be exempt from state usury regulation.
The Board has long been concerned about the
adverse impact that usury ceilings can have on
the availability of funds in local credit markets,
and has frequently stated its opposition to such
artificial constraints. In general, regulatory limits
on loan charges tend either to have little or no
effect (when market-determined rates are at or
below the ceiling) or to be counterproductive
(when market-determined rates are above the
ceiling). When nominal market interest rates are
high, as at present, usury ceilings typically distort credit flows by inducing lenders to channel
funds into assets or geographic areas less affected by ceilings. Nonprice lending terms in restrained markets may be tightened severely to
compensate for the relatively low nominal interest rates that can be charged, and credit may become totally unavailable except to the most highly qualified borrowers.
Because of the Board's view that credit markets function most effectively when allowed to
operate as freely as possible, we support in principle the removal of impediments posed by usury
laws. Nevertheless, serious concern has been expressed by some Board members about federal
preemption of state law. Also, the Board strong
Statements
like to invite your further reflection upon the advisability of indexing loan rate ceilings to the discount rate.
The Federal Reserve discount rate is a shortterm rate; by comparison, many of the target
credit markets of the proposed bill involve longterm lending, such as home mortgage loans, as
well as shorter-term credit. It is unusual for interest rates across maturity categories to be patterned in such a way that a one-percentage-point
markup over the discount rate would provide
much practical relief from usury ceilings in all
markets. Even now, with the discount rate at a
historically high 12 percent, a one-percentagepoint markup would leave the ceiling lending rate
below average home mortgage rates in many
areas. Moreover, the discount rate is an administered rate, not a market rate, and may not always
closely reflect levels or movements even of
short-term market rates. In general, we feel it unwise to single out a tool of monetary policy for a
purpose, such as indexing, that is not directly
policy related.
As you know, other bills enacted or now under
consideration by the Congress deal with restrictive state usury ceilings in somewhat different
ways than S. 1988. The recently enacted Public
Law 96-104, which in effect applies only to Arkansas, pegs permissible rates for business and
agriculture loans of $25,000 or more to the discount rate but allows for a five-percentage-point
differential. A provision in the proposed Financial Institutions Deregulation Act would remove
usury ceilings on home mortgage loans altogether for a broad spectrum of lenders. In contrast to
these approaches, the indexing formulation of S.
1988 provides relatively little relief from state
usury ceilings. We suggest as an alternative that
outright removal of ceilings be considered, or if a
ceiling is to be maintained, that a market rate of
medium or long maturity be used as a reference
rate, and that a markup be established to allow
more rate flexibility in the target credit markets.
In this connection, I would observe that experience with floating-rate usury ceilings in several
states has shown that even a market rate of appropriate maturity may not always perform the
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19
pegging function in a fully satisfactory manner.
Illinois, for instance, had employed a ceiling for
residential mortgage loans that was 2 l h percentage points above an index of long-term U.S. government securities yields. However, yields required by lenders on home mortgage loans in
unconstrained markets subsequently rose above
this floating ceiling, and the volume of home
mortgage lending in Illinois was curtailed. Consequently, in November of this year, the Illinois
legislature suspended any ceilings on home mortgage rates through the end of 1981.
I would also note that the sponsors of S. 1988
have emphasized the goal of equalizing competition among national banks and other depositary institutions. The Board shares the view
that, in principle, similarly situated lenders should
operate in similar regulatory environments. The
bill would achieve partial competitive equality,
inasmuch as the provisions now applicable to
national banks would be extended to all federally insured state-chartered commercial and mutual
savings banks, all federally insured savings and
loan associations, certain federally insured credit
unions, and all small business investment companies. However, various lenders not covered by
the proposal would remain without relief, including all life insurance companies, all mortgage
bankers, and some credit unions.
In summary, because of the distortions in local credit markets that result from unreasonably
low interest rate limitations, the Board strongly
endorses efforts to remove the restraints of usury
ceilings altogether. We would urge the states to
reevaluate their usury laws in light of recent experience with historically high market rates and
are pleased to note that many states have been
and are doing so. In view of the pressing need for
some relaxation of usury ceilings and the time
lapse before the scheduled opening of legislative
sessions in several states, the majority of Board
members supports S. 1988—subject to modification in order to incorporate a more appropriate
reference rate than the Federal Reserve discount
rate—as an interim measure until the states themselves or the Congress can provide a more satisfactory solution.
•
Additional statement
follows.
20
Federal Reserve Bulletin • January 1980
Statement by Nancy H. Teeters, Member, Board
of Governors of the Federal Reserve
System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, December 21, 1979.
I am pleased to appear before this committee to
report on the Board's enforcement activities relating to the E q u a l Credit O p p o r t u n i t y Act
(ECOA) and the Fair Housing Act. In order to
give the committee a more complete understanding of the Board's current posture with respect to
the enforcement of fair lending laws, a brief discussion of the background of the Board's activities in this area may be useful.
In March 1977 the Board adopted an enhanced
specialized program for enforcing all of the consumer and civil rights laws applicable to state
member banks. This program ran for a two-year
experimental period. In February 1979 the Board
made this program, with some enhancing modifications, permanent. In adopting the program, the
Board issued the following statement to indicate
its commitment to the enforcement of the antidiscrimination laws:
The Board believes that any type of discrimination prohibited by the civil rights laws is detrimental to the nation and to society. The Board is
convinced that such discriminatory practices by
banks not only are illegal but are not in the best
interests of the banks, the communities they
serve, or the individuals residing in those communities. The Board will investigate thoroughly
each complaint of discrimination it receives regarding a state member bank as well as any indication of noncompliance revealed during an
examination of a state member bank. In any instance of unlawful discrimination, the bank will
be accountable for appropriate remedies and
penalties as provided for in the applicable laws
and will be required to take prompt action to
correct the violation.
BACKGROUND OF THE BOARD S
ENFORCEMENT PROGRAM
The Board has been involved in the implementation of fair lending laws through the examination
process since enactment of the Fair Housing Act
in 1968. The Board was also involved in the
earliest stages of implementation of ECOA because of its rulemaking authority under that act.
It was given the responsibility for developing
regulations that prohibit unlawful discrimination
in the credit-granting process. Regulation B,
which implements ECOA, is applicable to all extenders of business and consumer credit, including banks, credit unions, finance companies, savings and loan associations, and retailers. Since it
has been necessary to amend and interpret Regulation B from time to time, the Board's involvement in rulemaking is a continuing one.
Before establishing the separate consumer affairs and civil rights enforcement program in
1977, the Board had Fair Housing and ECOA enforcement procedures in place, although these
procedures were not as comprehensive or forceful as they are today.
Although your request for testimony focuses
on the Board's enforcement of fair mortgage
lending laws, it is necessary, in order to put the
Board's activities in a more complete context, to
understand the scope of the consumer and civil
rights enforcement program. This program covers the following laws and regulations:
1. The Fair Credit Reporting Act.
2. The Fair Debt Collection Practices Act.
3. The Fair Housing Act (Title VIII of the
Civil Rights Act).
4. The Real E s t a t e S e t t l e m e n t P r o c e d u r e s
Act.
5. Regulation B (the Equal Credit Opportunity Act).
6. Regulation C (the Home Mortgage Disclosure Act).
7. Regulation E (the Electronic Fund Transfer Act).
8. Regulation H (national flood insurance
provisions).
9. Regulation Q (Interest on Deposits).
10. Regulation Z (the Truth in Lending, Fair
Credit Billing, and Consumer Leasing Acts).
11. Regulation A A (Unfair or Deceptive Acts
or Practices by Banks and Consumer Complaints).
12. Regulation BB (the Community Reinvestment Act).
13. Right to Financial Privacy (the Financial
Institutions Regulatory and Interest Rate Control
Act).
As can be seen, several in this list relate directly to fair mortgage lending, that is, the Fair
Statements
Housing Act and Regulation B, while others,
such as Regulations C and BB, have a less direct,
but growing, relationship.
With the growth in this area of its responsibility, the Board decided in March 1977 that a specialized enforcement program was necessary.
The framework that was established at that time
provided for consumer affairs and civil rights examinations that resulted in an examination report
separate from the usual commercial examination
report. The program also established the educational-advisory service to aid member banks in
understanding the regulations' requirements, as
well as more formalized complaint investigation
procedures. To aid the examiners, special training schools were conducted.
After a year's experience, the Board conducted a preliminary review of the consumer affairs enforcement program. This review showed
that, although examinations frequently revealed
procedural violations, they had not been so successful in uncovering evidence of banks engaging
in violations of Regulation B and the Fair Housing Act that involved actual discrimination. It
was felt that revisions of the existing procedures
were warranted. The examination process was
analyzed in order to isolate aspects that could be
improved and to develop ways to strengthen the
program.
To supplement research on this question, the
Board engaged an outside expert to study the
Board's procedures and materials for enforcing
the ECOA and Fair Housing Act and to make
recommendations for changes. The consultant's
report, which was delivered in May 1978, suggested a redirection of emphasis in the System's
enforcement efforts with respect to the detection
of credit discrimination.
A System task force was convened for the purpose of revising and redrafting the examination
procedures based on these suggestions as well as
suggestions made by representatives of interested
civil rights groups who participated in the review. The recommendations and changes resulting from this exhaustive study were substantial
and were incorporated in the final compliance
program approved by the Board in February
1979. The examination procedures and work papers were revised to reflect the more substantive
approach to consumer affairs examinations. As
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21
part of the package, the Board approved a comprehensive proposal that included the following:
1. A Compliance Handbook detailing examination and investigation procedures.
2. A mandatory examination frequency schedule that requires more frequent monitoring of
poorly performing banks.
3. Strengthened complaint investigation procedures that require on-site investigations in certain circumstances.
4. Appointment of civil rights specialists in
each of the Reserve Banks.
5. D e s i g n a t i o n of t h r e e a t t o r n e y s on the
Board's staff as civil rights specialists.
6. Development of career ladders for consumer affairs examiners that are comparable to
those of commercial examiners.
An important aspect of the program is the educational-advisory service, which is available to
all member banks, including national banks. On
request, a representative from the Reserve Bank
will visit the bank and explain any aspect of the
consumer and civil rights laws and regulations
with which the bank needs assistance. The visit
is therefore tailored to the bank's need and is
particularly u s e f u l when new legislation is
passed.
The complaint investigation procedures have
been revised to require prompt, thorough responses to complaints, particularly those that allege credit discrimination. When a complaint alleging discrimination is received, the Reserve
Banks are instructed to designate an individual to
respond to the complainant or acknowledge the
complaint within 15 days of receipt. The Reserve
Bank requests a specific response to the complaint from the state member bank within 10
days. The Reserve Bank also contacts the complainant to obtain any information or clarification
considered useful to the investigation. Based on
the preliminary information, the Reserve Bank
determines whether an on-site investigation is
necessary. When the investigation is concluded,
the complainant is again contacted and informed
of the findings.
An on-site investigation occurs when any of
the following appear to be present:
1. Discrimination on a prohibited basis.
2. Inconsistent treatment of applicants.
3. Examination reports, correspondence, or
22
Federal Reserve Bulletin • January 1980
other information that indicates a history of discrimination.
4. A review of the bank's internal policies,
procedures, and rules concerning the complaint
that reveals evidence of discrimination.
Briefly, the additions to the examination procedures that were made when the program became final include:
1. The authority to interview people who are
not affiliated with the bank.
2. Analysis of the demographics of a bank's
community to determine the impact of lending
policies on that community.
3. Comparing borrower characteristics and
loan terms for disparate treatment.
4. Geocoding loans to determine if unwarranted disparities in geographic distribution of
loans exist.
Examiners are to perform whatever analysis is
necessary to reach a conclusion regarding whether prohibited discrimination is taking place. Under the revised program, the examination or investigation will continue until a conclusion is
reached on every aspect of a bank's compliance
posture, including discrimination.
The establishment of a career path for consumer affairs examiners was an important step
helping to fulfill the objectives of the enforcement program. In order to attract and retain a
qualified corps of examiners, it was necessary to
eliminate the disparity in pay and status that existed in some Reserve Banks between consumer
examiners and commercial bank examiners largely because of the newness of the separate consumer compliance program. The program approved by the Board mandated that each Reserve
Bank develop a career ladder for the consumer
affairs examiners that parallels the opportunities
available for commercial examiners.
In order to implement the approved package it
was necessary to provide the resources needed
to complete the additional examination steps.
Based on information received from nine field
tests, it was determined that the field staff should
be increased from approximately 70 examiners to
138 examiners and 22 civil rights specialists in order to complete successfully the objectives of the
proposed program, which now includes the Community Reinvestment Act.
A survey was conducted in June 1979 to determine the staffing levels at each Reserve Bank.
The survey showed that 116 of the 138 budgeted
examiner positions had been filled, and all of the
budgeted 22 civil rights specialist positions had
been filled.
The Compliance Handbook was distributed to
the examination staff and to state member banks
as a form of educational assistance. The Compliance Handbook includes a plain-English explanation of the regulations' requirements. It
also specifies examination and investigation procedures and includes extensive checklists.
Bankers may find the Handbook useful guidance in establishing their own programs for compliance.
TRAINING
The Board emphasized specialized examiner
training as part of the 1977 compliance program.
For example, in 1979 the Board conducted two
schools for consumer affairs examiners at which
58 examiners were trained. Training aids included case studies, which incorporate actual banktype documentation, work papers, and fact situations. Instructors for the schools are examiners
from the Reserve Banks, review examiners and
attorneys from the Board staff, and attorneys
from other agencies, such as the Justice Department. The attorneys provide a thorough background of the history of civil rights laws. This
background includes an analysis of pertinent issues in specific court cases and their effect on
civil rights legislation.
Upon adoption of the new enforcement program, the Board's staff conducted a series of
three regional seminars at the Reserve Banks to
apprise the field staff of the new procedures.
Attorneys from the Justice Department have
addressed groups of Board and Reserve Bank
staff, both at the regular examiner's school and at
special seminars, on such matters as the history
of civil rights litigation. The lectures were comprehensive and discussed various aspects of discrimination, including the effects test analysis.
These presentations were instrumental in developing the expertise of Board and Reserve Bank
staff members and contributed to the training of
the Board's civil rights specialists.
The Board also rotates examiners from the Reserve Banks to work with Board staff as an aid to
Statements
their development. In addition, the Board's staff
communicates frequently with System examiners to inform them of current developments.
I have just described the background of the development of the Board's compliance program. I
will now describe the Board's role in utilizing the
effects test as a tool for enforcing the fair lending
laws in those banks for which it has responsibility.
THE EFFECTS
TEST
Title VII of the Civil Rights Act of 1964 prohibits
the use of employment practices that discriminate against job applicants or current employees
on the basis of race, color, religion, sex, or national origin. In interpreting the act, the Supreme
Court has determined that an employment practice that is applied evenhandedly and without intent to discriminate nevertheless may be illegal if
it has a disproportionately adverse effect upon a
so-called protected class. The technique of identifying discrimination by looking at disparate impact rather than improper intention is commonly
known as the effects test.
The generally accepted understanding of the
effects test, as it evolved in the courts, consists
of a three-stage analysis. The first stage is obtaining evidence that a policy has a disproportionate
impact on a protected class. Once this has been
established, a determination must be made as to
whether a business need exists, which justifies
the utilization of the questionable policy. Finally,
a determination must be made as to whether
some alternative policy might serve the same
business need and have less impact on the protected class.
The Compliance Handbook includes an extensive discussion of the effects test. The Handbook
addresses discrimination in marketing practices,
explicitly addresses neighborhood discrimination, and provides guidance on the effects test by
setting forth the general principle of the effects
test and providing a number of specific examples
of practices that may have discriminatory effects.
Even though we have enhanced training and
have provided guidance on the effects test, making an effects test determination can be extremely difficult because the development of the statis
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23
tical data is not an easy process. A determination
regarding a justifiable business necessity is an
even more troublesome task because it involves
complex, judgmental issues.
The Supreme Court had no difficulty deciding
that the requirement of a high school education
for promotion from laborer to coal handler at an
electric p o w e r plant in N o r t h Carolina disqualified blacks at a "substantially higher rate"
than whites, that the requirement was not "significantly related to successful job performance," and that, consequently, it was impermissible. But that was a clear-cut case.
One example of the difficulty of determining
whether a business need is supportable is the
question of whether consideration of income as a
standard of creditworthiness is justifiable. On the
average, whites have greater income than blacks,
men have larger incomes than women, married
persons have more income than singles, middleaged persons have more than those of other ages,
persons of Northern European descent have
more than those with ancestors from Asia, and
wage earners have more than welfare recipients.
Thus, consideration of income—which is a basic
part of judging creditworthiness for many creditors—probably disqualifies members of most of
the E C O A " p r o t e c t e d " c l a s s e s at a " s u b stantially higher rate" than middle-aged, white,
Anglo Saxon males who are married. According
to this line of reasoning, consideration of income, when subjected to an effects test analysis,
could be suspect under the ECOA.
A small, but nevertheless significant, number
of creditors (particularly among those using computerized credit-scoring systems) do not consider the amount of an applicant's income in determining creditworthiness. They either do not find
income to be predictive of ability or of willingness to repay or find other factors to be more predictive. Based on this evidence, the experience
of those creditors indicates that income, in certain instances, may not be "significantly related"
to creditworthiness. A bank examiner, however,
would have a difficult time determining whether,
for a particular bank, there is a justifiable business necessity to consider income, or whether
consideration of income is "significantly related" to creditworthiness.
In 1976 w h e n the C o n g r e s s e x p a n d e d the
Equal Credit Opportunity Act's coverage, brief
24
Federal Reserve Bulletin • January 1980
statements in the Senate and House reports expressed the congressional intent that the effects
test be used to detect credit discrimination. The
Senate report accompanying the 1976 ECOA
amendments merely states: " I n determining the
existence of discrimination . . . courts or agencies
are free to look at the effects of a creditor's
practices as well as the creditor's motives or
conduct in individual transactions." The House
report says essentially the same thing.
The effects test was developed in the context
of contested litigation, with each side presenting
witnesses and offering evidence. Preparing for
and conducting each trial take months, sometimes years. It would be difficult to imagine the
resources needed for examiners to conduct such
searching investigations for each of the approximately 12,000 federal credit unions, 14,000 commercial banks, 4,000 savings and loan associations, and 475 mutual savings banks in this
country that are subject to the ECOA.
I am not suggesting that the agencies are unable to make any effects test determinations. We
can and have. For example, we have said in Regulation B that a creditor may not discount an applicant's alimony or pension income because of
the adverse effect that such a policy would have
upon women and the elderly.
When a bank chooses, for example, to ration
credit by extending credit only to its current customers, we can only warn the bank of a potential
effects test problem. Such a problem might exist,
for example, in a bank whose depositors consisted primarily of white customers in a relatively
integrated market area. We do not have the time
or resources to perform an effects test analysis as
comprehensively as that undertaken during litigation. Nor are we in a position to judge in all
cases whether the policy is justified by business
necessity.
The Board does not presently contemplate
amending Regulation B to provide guidelines regarding the effects test. The Compliance Handbook explains the effects test in some detail and
provides specific examples of practices that have
a discriminatory impact. Copies of the Handbook have been distributed to all state member
banks. The Board views the Handbook as an effective means of providing guidance regarding
prohibited, illegal practices.
Frequently, the Handbook is more useful than
a regulation because of its flexibility. It communicates in what we believe to be plain English; it
provides a narrative explanation of the nature
and background of certain requirements; it may
be amended more easily than a regulation; and,
most important, it could ultimately be backed
by the Board's enforcement authority just as a
regulation would be. For these reasons, we fail to
see a compelling argument for adopting regulatory changes to achieve objectives that are already being met.
The effects test still remains a useful tool for
detecting the more subtle forms of credit discrimination despite the difficulties in analyzing it. We
will continue to use the effects test as a tool
for identifying potentially discriminatory practices. But in the credit arena as in the area of
employment practices, the effects test will remain largely a matter for the courts to apply.
EXAMINA TION P ROC ED URES
Analysis of the implications of a bank's lending
policies and practices requires a complex evaluation of i n f o r m a t i o n f r o m a great variety of
sources. This information comes from court cases that establish precedent on particular issues; it
comes from the Census Bureau or local government bodies, which provide data about the residents of a bank's community; it comes from the
bank in the form of written lending policies or in
interviews; it comes from residents in the community; and finally, it comes from observations
made by the examiner. A discussion of the more
salient aspects of the examination procedures for
discrimination may be useful.
The initial focus is the bank's articulated lending policy. It is essential to establish the "articulated standards" of a bank's lending policy for
two reasons. First, to make the determination
that the bank's standards are nondiscriminatory,
the examiner has to know what standards the
bank says it uses. Next, the examiners must determine whether the standards are applied in a
nondiscriminatory fashion.
The standards are first reviewed to determine
if they are either overly subjective or so vague
that they cannot accurately predict risk. For example, a factor that gives more weight to professional e m p l o y m e n t s t a t u s might h a v e a dis-
Statements
proportionate adverse impact on women or
minorities and, at the same time, bear little relationship to willingness or ability to repay.
When examining real estate loans, the examiner is particularly alert to underwriting criteria,
which, while not demonstrably related to mortgage risk, can severely limit the amount and type
of credit available in older, integrated areas.
Such restrictive criteria might include arbitrary
cutoff points for age of property and structural
criteria such as minimum number of square feet,
type of heating, and minimum setback. Census
data regarding housing characteristics reveal that
inner city housing is typically older, has fewer
square feet, and is more likely to be affected by
restrictive underwriting criteria than housing in
the suburbs. An age cutoff of 20 years, for example, will have the effect of automatically
denying a loan to many applicants who seek to
buy property in the inner city.
The examiners have been instructed to consider the implications of such lending policies as the
use of the remaining economic life of real estate
as an underwriting criterion. An estimate of the
remaining economic life of a piece of property
can be a highly arbitrary number that might be
used in an improper fashion. We have always interpreted economic life as a carefully considered
value that should accurately reflect the condition
of a parcel of real estate. When used properly,
remaining economic life can be a more precise
indicator of value than an adjective describing
the condition of property.
Alternative approaches, such as an adjective
describing the condition of a piece of property,
may also be used in a subjective fashion and may
lead to abuse. For these reasons, we caution examiners to be very precise in analyzing loan underwriting criteria. We also identify for the examiners those criteria, such as age of property,
that are clearly impermissible.
For this and other reasons, it is important for
the examiner to become familiar with the housing
and demographic characteristics of a b a n k ' s
community. Earlier this year, the System's examiners were provided with census data for each
standard metropolitan statistical area that was
tracted as of the 1970 census. Using the bank's
community delineation contained in its Community Reinvestment Act statement, the examiner
is then able to develop a better understanding of
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25
the potential impact a bank's lending standards
may have on its community.
Since 1970 census data may, in many cases,
give an outdated and incomplete picture of a
bank's current community, the examiners have
been instructed to conduct interviews outside the
bank, when necessary, to get a better idea of current neighborhood composition. These interviews are to be undertaken with community
groups, neighborhood housing groups, local minority leaders, and city officials. The interviews
outside the bank become particularly crucial for
banks in rural areas where no census data are
available.
Interviews outside the bank are useful for purposes other than obtaining current demographic
information. Interviews provide an opportunity
for examiners to ascertain how the community
perceives the bank is performing its lending function. In addition, interviews with persons outside
the bank are likely to be a useful source of information regarding such practices as "pre-screening" or "steering" of customers to or away from
certain financial institutions.
The bank's loan application activity is then analyzed to determine the proportional representation of the various segments of the community in
the bank's accepted and rejected loan application
files. By utilizing monitoring data, when available, to identify applicants who are members of
protected classes, the examiner reaches a preliminary conclusion as to whether the bank's lending policies have a disproportionate impact on
protected classes in the bank's community.
If the examiner reaches a preliminary conclusion that discrimination is present, the examiner then tests the validity of that conclusion by
analyzing the treatment of individual applicants.
A determination is made whether exceptions to
the loan policy are justified and if there appears
to be any pattern to the exceptions that might favor one class at the expense of another.
Once the examiner has arrived at a final conclusion regarding the existence of discrimination,
the findings are reviewed with management of
the bank being examined. The results are then
summarized and placed in the examination report. The examiners are instructed to put all significant findings in the open section of the examination report. Consequently, findings regarding
effects test issues are placed in the open section
26
Federal Reserve Bulletin • January 1980
of the report regardless of whether they are substantiated or potential problems.
Every attempt is made to correct violations
during the examination process, or in subsequent
correspondence or follow-up examinations. The
cease-and-desist order is the final enforcement
vehicle the Board can utilize. This year, the
Board issued two cease-and-desist orders that
dealt with consumer matters, both of which involved ECOA violations. One of these orders required the bank to conduct a file search and to
release from liability any applicant whose signature had been illegally required on a mortgage instrument.
GEOGRAPHIC DISTRIBUTION
OF LOANS
In those institutions that are subject to the Home
Mortgage Disclosure Act, the examiners analyze
information contained in the HMDA statement.
By reviewing the bank's annual record of mortgage lending by census tract, the examiner can
gain some impressions regarding the geographic
distribution of mortgage and home improvement
loans and the impact that might have on protected classes within the community. This information is useful for assessments under the Community Reinvestment Act as well as the Fair
Housing Act and ECOA.
When necessary to arrive at a final assessment
of a bank's lending performance, the geographic
distribution of loans that are not covered by the
requirements of the HMDA is also considered by
the examiner. These loans include all types of
non-real-estate credit and all loans made by
banks that are not subject to the HMDA reporting requirements. The analysis is quite time consuming but can be made by manually geocoding
loans on a map. The focus is essentially the
same; to determine if credit is being wrongfully
denied in low income or in racially integrated
areas.
PRESCREENING
Examiners determine if prescreening exists by
analyzing a bank's procedures for interviewing
applicants and observing some of these interviews taking place. Examiners also gain a great
deal of information by interviewing people outside the bank.
One method of determining the existence of
prescreening that has been suggested is that of
"testing." Briefly, testing is a procedure that involves sending two financially comparable credit
applicants, one of which is a member of a protected class, to the same institution. The treatment given one applicant is compared with the
experience of the other to determine if the member of the protected class was wrongfully denied
or discouraged from applying for credit.
A task force of the Examination Council is
presently reviewing the feasibility and desirability of testing. Because the issue affects all the
agencies whose supervised institutions make
mortgage loans, the Examination Council provides a logical forum in which to explore this
matter.
ADOPTION OF DATA COLLECTION
S YSTEMS
A question has been raised as to whether Regulation B should be amended to require more comprehensive data notation. In the event that a
change in the existing monitoring requirements
of Regulation B is deemed advisable, it would be
inappropriate to make the additional requirements a part of Regulation B. This is because the
regulation currently covers all creditors, many of
which, such as mortgage bankers, are not subject
to routine examinations. It would be unnecessarily burdensome to subject those creditors to additional recordkeeping requirements when the information may never be used. Under Regulation
B the Board has authority to institute an enhanced data collection system, applicable to state
member banks, under a separate regulation should
that prove to be the proper action.
Some other agencies have developed their own
data notation packages. The Board is currently
studying the experiences of those agencies in
their respective supervised institutions to evaluate the effectiveness and feasibility of the
agencies' systems. The methodologies of the
three agencies appear to be variations of the
same central theme. The data collection is mandatory and identifies not only the personal characteristics of the applicant but certain characteristics of the property and the credit extension as
Statements
well. The examiners then use these "data logs"
to generate a profile of the bank's lending policy
and compare the treatment of applicants generally with that afforded members of protected
classes.
The quality and quantity of data available to
the examiners of other agencies, because of enhanced data collection, may prove to be better
than that available to ours. That is why we are
closely monitoring their experiences. The difference between the types of comparisons made
possible under these mandatory recordkeeping
requirements and those made by the System's
examiners, however, appears to be more one of
form than of substance. When the monitoring data
presently called for are available, the Federal Reserve examiners are able to identify loans to
members of protected classes. The examiners
are also instructed to determine the bank's articulated lending standards by sampling and interviewing techniques. Examiners look for disparate treatment of protected classes by analyzing
loan applications and making comparisons with
the bank's articulated lending standards. The
type of comparisons made and the type of data
analyzed by examiners from the different agencies therefore appear to be the same.
One major difference appears to be the format
in which these data are organized. When mandatory recordkeeping exists, the burden is on the
loan officer to collect and organize the data for
the examiners. Under the Board's procedures
the burden is placed on the examiner to collect
and organize the data.
Our experience has suggested that the magnitude of the problem may not justify the expense associated with additional recordkeeping
requirements. Only a very small proportion of the
residential mortgages outstanding are held by
state member banks. In fact, in dismissing the
suit brought by the Urban League against the
Board, the Court noted that the mortgage loans
held by state member banks "account even in
the aggregate for only a miniscule percentage of
home mortgage loans." Procedures adopted by
the other agencies may not be cost effective
when applied to state member banks.
The Board will continue to evaluate the methodology and results of the data collection efforts
of other agencies. To the extent that the current
procedures can be materially enhanced by the
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27
adoption of mandatory recordkeeping requirements, the Board will consider doing so.
MONITORING
FIELD
EXPERIENCES
We have been asked whether the Board would
consider maintaining data on patterns of violations, on effects test situations, on narratives to
accompany the citation of violations, and on the
frequency and effectiveness of making contacts
outside the banks.
The Board currently analyzes this kind of information on a case-by-case basis. In addition,
our system is designed to accumulate data on the
numbers of violations. While the accumulation of
data on additional categories might be very useful, our experience indicates that an automated
system does not have the capacity to summarize
meaningfully any narrative information. An alternative would be to collect this information
manually from each of the 1,000 examination reports prepared every year, but our experience
suggests that doing so would be unduly cumbersome.
We are nearing the completion of a revision of
our data system. We have attempted to accommodate the need for more qualitative information
in the data system and will consider broadening
the categories. However, because the data system compiles only numerical information, the inclusion of narrative information in the computerized data system would not be workable.
REGULATION
B ENFORCEMENT
GUIDELINES
A question has also been raised as to the status
of the interagency Regulation B Enforcement
Guidelines. New draft Guidelines have been prepared based upon the public comments. The new
draft has been field tested by each of the agencies
participating in its development. The results of
the field tests are being compiled. A task force
will reconvene shortly to determine if additional
revisions will be necessary to accommodate any
problems in implementation that were identified.
There is no fixed timetable for completion of the
Guidelines. However, we anticipate that they
will be considered by the Examination Council
and the agencies early next year.
•
29
Announcements
ADJUSTMENT
OF INTEREST
RATE
CEILINGS
Regulatory moves designed to help the small saver—including a new two-and-one-half-year certificate tied to the yield on Treasury securitieswere announced on December 14, 1979, by the
Federal Home Loan Bank Board, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, and the National Credit Union Administration.
The changes, which went into effect January 1,
will also increase the ability of federally insured
depositary institutions to compete for funds with
market instruments that are not subject to interest rate ceilings.
The announcement represents a further adjustment of interest rate ceilings that began earlier
this year. When announcing small-saver actions
effective last July 1, the agencies said they
planned to consult near the end of the year to
determine whether further changes in ceilings
would be appropriate.
The new measures are as follows.
1. To replace the existing four-year floatingrate time deposit with a new floating-rate certificate with a maturity of two and one-half years or
more tied to the yield on Treasury securities maturing in two and one-half years. For thrift institutions (savings and loan associations and mutual
savings banks), the ceiling rate will be 50 basis
points below the two-and-one-half-year Treasury
rate, while for banks the ceiling rate will be 75
basis points below the Treasury rate. Federal
credit unions may offer the same variable ceiling
rate as do thrift institutions on share certificates
of 90 days or more. There are no minimum deposit requirements, and compounding of interest
will be permitted.
The ceiling will be established monthly for new
deposits based on the rate announced by the
Treasury three business days before the begin-
ning of each month. Recently, the yield on Treasury securities that mature in two and one-half
years has averaged approximately 11.20 percent.
Thus, the comparable ceiling for thrift institutions, were the new certificate available, would
be 10.70 percent and for banks, 10.45 percent.
After compounding, the effective yield on this instrument would be 11.46 percent and 11.18 percent for thrift institutions and banks respectively. The ceiling rate that is established monthly
will apply to all new deposits issued throughout
the month. The ceiling on outstanding deposits of
this type will not change during the life of the
deposit.
The new certificate replaces the four-year variable-rate deposit that was established effective
last July 1. All fixed-rate ceilings remain in effect, however.
2. To increase by lU of a percentage point the
ceiling on deposits maturing in 90 days to 1 year.
The new nominal ceiling for commercial banks is
53/4 percent, while thrift institutions may pay up
to 6 percent.
3. To permit banks to pay the same rate as
thrift institutions when individual retirement account/Keogh and governmental unit funds are
deposited in the new two-and-one-half-year or
more certificates. Banks also may pay the same
as thrift institutions on IRA/Keogh and governmental unit deposits of $10,000 or more placed in
26-week money market certificates regardless of
the level of the Treasury bill rate. However, the
thrift institutions' differential on such certificates
when the Treasury bill rate is below 9 percent
continues to apply for other depositors of 26week money market certificates.
The new actions were taken by the individual
agencies after consultations required by law. The
agencies also indicated that they plan to monitor
future deposit flows among depositary institutions on a continuing basis.
30
Federal Reserve Bulletin • January 1980
INFORMATION STATEMENT RE
COMMUNITY REINVESTMENT
ACT
The Federal Reserve Board on January 3, 1980,
issued an information statement for the guidance
of those affected by the Community Reinvestment Act (CRA).
The CRA requires the Board and other federal
supervisors of financial institutions to encourage
banks and other lenders to meet the credit needs
of the local communities where they are chartered, within the bounds of safe and sound
banking. The federal regulators are required by
the act to assess the records of institutions that
they supervise in meeting the credit needs of the
communities and to take the records of the institutions into account when they are acting on applications from lenders to expand their activities.
The CRA is aimed particularly at encouraging
financial institutions to give special attention to
the needs of low- and moderate-income areas in
meeting the credit needs of the communities in
which they operate. In October 1978 the Federal
Reserve, together with other federal supervisors
of financial institutions, issued regulations to implement the CRA.
The Board's statement, which is directed to
state-chartered commercial banks that are members of the Federal Reserve System and to bank
holding companies, has been forwarded to the
Federal Financial Institutions Examination
Council for its consideration.
The Board said it is working to simplify its procedures for handling applications that are
protested by community groups, or others, on
CRA grounds. The Board said that it
. . . expects to develop a procedural guide for
members of the public participating in CRA matters. The procedures are, of necessity, subject to
change as more experience is acquired, and all
procedures will be coordinated as far as possible
with those adopted by other federal agencies
charged with supervision of financial institutions.
Meanwhile, the Board said it has adopted a
policy of encouraging meetings between applicants and protesting parties to help solve
problems by facilitating communication, in connection with the Board's view that communication with community members is an important
part of a bank's efforts to ascertain the community's
credit needs.
The Board noted that it has received protests
suggesting that a lending institution has a poor
lending record because it is not returning as
much in the form of loans to community members as it receives in deposits from that
community. In this connection, the Board stated
the following:
Although CRA is directed at the problem of
meeting sound community credit needs, it was
not intended to establish a regulatory influence
on the allocation of credit. In implementing the
Act the Board has acted on the belief that banks
are in the best position to assess the credit needs
of their own local communities and the Board
believes that meetings with community groups
can be an integral part of the process. . . .
The Board believes that there are many reasons why a particular neighborhood may
generate more deposits than loan requests, or
more requests than deposits, and that disparity
in a particular local area between credit granted
and deposit totals is not prima facie evidence of
discrimination. . . .
However the Board views as a serious matter
disparities in lending to different areas that do
not appear to be fully attributable to safety and
soundness considerations or to factors beyond a
bank's control.
The Board's statement included these other
principal points:
1. When faced with evidence of such disparities, the Board will inquire closely into the
bank's efforts to ascertain credit needs and to
make the community aware of its credit services
and also into any policies or practices that may discourage credit applications from, or discriminate
against, parts of the bank's community.
2. The Board expects banks to offer throughout their communities the types of loans they say
in their CRA statement that they offer.
3. The Board will give weight to concerted efforts by lenders to improve low- and moderateincome areas of communities.
4. In some cases the Board may give weight to
commitments for future action, as it has long
done in considering what effect the approval or
disapproval of an application would have on the
banking convenience and needs of a community.
5. When this is done, the Board, in considering future applications, will review a bank's
Announcements
record closely to determine if the bank is meeting
its c o m m i t m e n t s .
6. Just as the Board e x p e c t s that a bank will
c o m m u n i c a t e responsibly with all segments of its
c o m m u n i t y , it also expects that community organizations filing p r o t e s t s will investigate
complaints and d o c u m e n t t h e m .
7. With respect to the Federal R e s e r v e ' s policy of trying to improve communication b e t w e e n
lending institutions and their communities by
bringing them together to consider protests: First,
even if a protest is withdrawn, the Board has an
obligation to consider the applicant's C R A record; second, any decision to negotiate is up to the
parties involved; and third, the Board will not
necessarily a p p r o v e an agreement b e t w e e n the
parties.
T h e Board does not e n d o r s e agreements to allocate credit.
T h e Board said it w e l c o m e s suggestions for the
i m p r o v e m e n t of its p r o c e s s e s for handling C R A
protests and other matters.
T h e B o a r d ' s statement follows:
The Board of Governors of the Federal Reserve System is issuing this statement for the
guidance of applicants, community groups, and
other persons interested in the Community Reinvestment Act of 1977 (CRA or the Act). On the
basis of its experience during the first year of operation under CRA, the Board is working to
simplify its procedures for protested applications, and it expects to develop a procedural
guide for members of the public participating in
CRA matters. The procedures are, of necessity,
subject to change as more experience is acquired, and all procedures will be coordinated as
far as possible with those adopted by the other
federal agencies charged with supervision of financial institutions.
CRA was enacted against a background of
concern for unfair treatment of prospective borrowers and unwarranted geographic differences
in the pattern of lending. The act requires the
Board to encourage banks to meet the credit
needs of the local communities in which they are
chartered consistent with the safe and sound operation of those banks, to assess the banks'
records of meeting those credit needs, and to
take their records into account in the Board's
evaluation of various applications to expand the
banks' activities or those of their parent holding
companies.
Although CRA is directed at the problem of
meeting sound community credit needs, it was
not intended to establish a regulatory influence
on the allocation of credit. In implementing the
act, the Board has acted on the belief that banks
are in the best position to assess the credit needs
of their own local communities and the Board
believes that meetings with community groups
can be an integral part of the process. The first
assessment factor in the Board's CRA regulation
stresses a bank's activities to ascertain the credit
needs of its community, including communication with community members. More recently
the Board has adopted, as a regular procedure
for applications that are protested on substantive CRA grounds, a policy of encouraging
meetings between applicants and protestants,
one purpose of which is to facilitate communication between the parties.
Several community organizations have submitted materials to the Board suggesting that
particular lending institutions have poor lending
records because they do not return to particular
neighborhoods in loans as much as they accept
from those neighborhoods in deposits. The
Board believes that there are many reasons why
a particular neighborhood may generate more
deposits than loan requests, or more requests
than deposits, and that disparity in a particular
local area between credit granted and deposit
totals is not prima facie evidence of discrimination. The Board is more concerned with the
lender sensitivity to the needs of each area.
Banks may sometimes fail to recognize the
credit needs of creditworthy borrowers in the
banks' communities. For example, in its investigations to date, the Board has found some
evidence of disparity in banks' housing-related
lending to low- and moderate-income neighborhoods compared with higher income areas.
Factors affecting housing demand and considerations of safety and soundness do not appear
to account fully for the extent of these disparities.
The Board expects banks to offer types of
credit listed on their CRA statements throughout
their communities. In assessing banks' records,
the Board views favorably the record of a bank
that has defined its community reasonably and
that offers credit that appears to help meet credit
needs in its entire community. The Board will
also give favorable weight to bank leadership in
concerted efforts to improve low- and moderateincome areas in their communities. However,
the Board views as a serious matter disparities in
lending to different areas that do not appear to
be fully attributable to safety and soundness
considerations or to factors beyond a bank's
control. When faced with evidence of such disparities, the Board will inquire closely, both into
the bank's efforts to ascertain credit needs and
to make the community aware of its credit services and into any policies or practices of the
bank that may discourage credit applications
31
32
Federal R e s e r v e Bulletin • January 1980
from, or discriminate against, parts of the bank's
community.
In acting upon applications covered by CRA,
the Board considers a bank's CRA record as a
part of the convenience and needs aspect to be
evaluated along with other relevant factors. Following its longstanding policy, the Board may in
some circumstances give weight to commitments for future actions as part of its
consideration of convenience and needs. Such
commitments are not viewed as part of the CRA
record but may be weighed with it, and they are
considered an important aspect of the Board's
role in encouraging improved performance.
When such commitments are offered by an applicant to outweigh adverse aspects in a CRA
record, the Board will consider the likelihood
that they will be accomplished and in future applications and examinations will review closely
an applicant's performance on previous CRA
commitments.
The Board has been working to simplify and
streamline its procedures for protested applications and expects to produce a guide for
community organizations that are interested in
CRA matters. In the meantime System staff is
available to advise parties on procedural requirements. Just as the Board expects banks to
communicate responsibly with all segments of
their community, it expects community organizations to investigate and document their
complaints, and to bring those complaints to the
attention of the banks involved before protesting
an application. The Board further expects all
parties to an application to observe the Board's
procedural rules, and cautions all parties against
ex parte communications—private communications to Board Members without other parties
present. Direct communication on protested cases with Members of the Federal Reserve Board
must be in writing and will be part of the record.
As a part of its revised procedure when a protest is considered substantive, the Board now
asks that applicants and protestants meet together with Reserve Bank staff to attempt to clarify
the issues between them. These meetings have
been useful in helping the staff to plan the direction of its investigation and to identify areas or
questions meriting special attention. In addition,
when particular differences among the parties
have arisen from misunderstanding of the facts
or of another party's position, these meetings
have helped resolve those differences.
Of five protested applications that the System
has acted upon, three protests have been resolved by negotiation, and agreements reached
in negotiations played a role in the Board's decision on a fourth. There are, however, several
aspects of this process that merit special atten
tion. First, the withdrawal of a protest does not
alter the Board's obligation to assess the CRA
record of an applicant carefully. Second, while
the Board reasonably expects all parties to use
these meetings to explain and clarify their positions, any decision to negotiate is entirely within
the parties' discretion. Finally, even if parties
agree, the Board need not approve their agreement.
In particular, the Board does not endorse
agreements to allocate credit. The Board is
aware that many banks have on their own initiative adopted special-purpose credit programs, or
pilot programs to test new credit offerings. The
Board does not wish to discourage these efforts.
However, the Board will closely scrutinize any
agreements to ascertain that they are not inconsistent with the safety and soundness of the bank
involved, and do not establish a preference for
credit extensions inconsistent with evenhanded
treatment of borrowers throughout the community.
In designing procedures to accomplish the
act's objectives, the Board appreciates the useful comments it has received from banking
organizations and community groups, and it welcomes additional suggestions. The Board
believes that the applications process can encourage communication between banks and
their communities and help insure that sound
credit needs are met within the capacity of depositary lending institutions.
FEDERAL RESERVE
BANK
EARNINGS
Preliminary figures indicate that gross current
earnings of the Federal R e s e r v e Banks a m o u n t e d
to $10,312 billion during 1979, an increase of 22.0
percent f r o m a year earlier. Current expenses for
the 12 Reserve Banks and their branches totaled
$694 million—6.3 percent above 1978.
A s s e s s m e n t for expenditures of the Board of
G o v e r n o r s amounted to $50 million, and net deductions in the profit-and-loss account a m o u n t e d
to $153 million, primarily because of a net loss of
$154 million on sales of U . S . government securities.
N e t earnings before p a y m e n t s to the Treasury
totaled $9,415 billion. P a y m e n t s to the Treasury
as interest on Federal R e s e r v e notes a m o u n t e d
to $9,279 billion; statutory dividends to m e m b e r
banks, $67 million; and additions to R e s e r v e
Bank surplus, $69 million.
U n d e r the policy adopted by the Board of Gov-
Announcements
ernors at the end of 1964, all net earnings after
the statutory dividend to member banks and additions to surplus to bring the surplus to the level
of paid-in capital were paid to the U.S. Treasury
as interest on Federal Reserve notes.
Compared with 1978, gross earnings were up
$1,857 billion mainly because of an increase of
$1,705 billion on U.S. government securities.
Earnings of the Federal Reserve System are derived primarily from interest paid on U.S.
government securities that the Federal Reserve
has acquired through open market operations,
one of the tools of monetary policy.
DIVESTITURE DEADLINE FOR
NONBANKING A CTIVITIES
The Federal Reserve Board on December 13,
1979, emphasized that it will regard as an "extremely serious matter"—possibly resulting in
civil penalties or referral for prosecution—any
violation of the Bank Holding Company Act resulting from failure by affected bank holding
companies to comply with a December 31, 1980,
deadline for divestiture of nonbanking activities.
The Board's message was contained in a policy statement directed to certain companies that
became bank holding companies by virtue of the
1970 amendments to the Bank Holding Company
Act. These are one-bank holding companies that
acquired nonbank activities between June 30,
1968, and December 30, 1970. The 1970 amendments generally require that unless these companies drop their bank holdings they must either
divest such nonbank subsidiaries, or get Board
approval to keep them, by December 31, 1980.
The policy statement concerns companies that
have not yet complied fully with the 1980 requirements of the act.
In earlier statements, the Board advised these
companies to submit their plans for complying
with the law. The Board is concerned about the
companies that have failed to respond or have
responded only partially and stressed that it has
no authority to extend the 1980 deadline or to
make exceptions.
Thus, the Board noted, for companies subject
to the 1980 divestiture provisions of the act, retention by a bank holding company of any non
33
banking subsidiaries or activities for which the
company has not received approval by the Federal Reserve beyond December 31, 1980, will be
a violation of the act.
The Board's statement continued:
The Board will regard any violation of section
4 of the BHCA resulting from failure to divest or
obtain approval for retention prior to December
31, 1980, as an extremely serious matter. . . .
The Board intends to enforce the provisions of
the BHCA by taking appropriate actions, including initiation of cease-and-desist proceedings,
. . . assessment of civil money penalties, or referral for criminal prosecution . . . against the
bank holding company, as well as its officers and
directors. Generally, the severity of a violation
will not be mitigated because a bank holding
company has an application for retention . . .
pending at the Board December 31, 1980, or has
appealed the Board's action on an application.
The Board said that it would act as expeditiously as possible on all applications and requests concerning the 1980 deadline, but it reminded companies that applications to keep subsidiaries might be denied, and that companies
should therefore allow sufficient time for divestiture if denial occurs.
COUNTR YEXPOSURELENDING
SURVEY
International lending by U.S. banks with sizable
foreign banking operations, as of June 30, 1979,
increased little in the first half of 1979, according
to a report on December 14, 1979, by the Office
of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, and the Federal
Reserve Board. The report was based on a semiannual survey covering foreign offices of 128
U.S. banking organizations with significant foreign banking operations.
The results concerned lending by the U.S.
banks across borders and lending in a currency
other than that of the borrower. If increased activity of U.S. banks with the foreign offices of
other U.S. banks is deducted, the figures show
virtually no net growth.
Cross-border and nonlocal currency lending to
less-developed countries that are not members of
the Organization of Petroleum Exporting Coun-
34
Federal Reserve Bulletin • January 1980
tries increased slightly, from $52.2 billion to
$54.4 billion. However, this increase was offset
by a decline in such business with developed
countries. In addition, the survey indicated that
local currency lending to local borrowers by foreign offices of U.S. banks increased $3 billion in
the first six months of 1979, to a total of $61 billion.
Such placements of deposits are usually for very
short periods.
For most other groups of countries, short-term
claims accounted for slightly less than half of the
total claims, a l t h o u g h the p r o p o r t i o n varied
among countries.
Type of
Types of Loans
The survey concentrated on data involving lending from a bank's offices in one country to residents of another country and lending in a currency other than that of the borrowers. These are
known as cross-border and cross-currency loans.
Cross-border and cross-currency loans are
those most closely associated with country risk;
such claims totaled $221 billion in June 1979.
Claims on residents of Switzerland and the Group
of Ten (G-10) developed countries represent 41
percent of this total. Another 22 percent represents claims on residents of "other developed
countries" and "offshore banking centers." 1
Claims on residents of developing countries that
are not members of OPEC constitute 25 percent
of total claims.
In addition, the banks reported $61 billion in
local currency claims that were held by their foreign offices on residents of the country in which
the office was located. An example would be
mark claims on German residents held by the
German branch of the reporting U.S. bank. To a
large extent, these local currency claims were
matched by $51 billion in local currency liabilities due local residents.
Maturities
More than two-thirds of the reported cross-border and cross-country claims had a maturity of
one year or less. Only $17 billion in claims had a
maturity in excess of five years. Short-term
claims are especially prominent in the G-10 countries and the offshore banking centers where a
large volume of interbank lending takes place.
1. Countries in which multinational banks conduct a large
international money market business.
Borrower
Businesses with other banks accounted for the
largest amount, equaling $120 billion. Most of the
claims on banks were on those located in the
G-10 countries and the offshore banking centers.
Lending to the private nonbank sector totaled
$62 billion, and l o a n s to the public sector
amounted to $39 billion. This last category included foreign central banks and commercial
nonbank enterprises owned by government. The
distribution by type of borrower varied significantly from country to country.
Guarantees
The cross-border and cross-currency claims that
are guaranteed by residents of another country
are reallocated from the country of residence of
the borrower to another country in two major
ways. First, claims on a bank branch located in
one country when the head office is located in
another country are allocated to the country of
the head office. Since a branch is legally a part of
the parent, claims on a branch are treated as
being guaranteed by the head office. Second,
claims on a borrower in one country that are formally guaranteed by a resident of another country are allocated to the latter country. These reallocations are thought to provide a better approximation of country exposure in the banks' portfolios than the unadjusted figures.
Most of the shifts are accounted for by the
transfer of claims on branches (and, when guaranteed, subsidiaries) of banks to their head offices ($44 billion of $57 billion). In general, the
reallocations primarily affect the offshore banking centers and some of the developed countries.
For example, claims on the offshore banking centers decreased from $31 billion to $8 billion and
claims on the United Kingdom decreased from
$36 billion to $19 billion. For most less-devel-
Announcements
oped countries, a relatively small portion of
claims is externally guaranteed. The total for
claims on foreigners by country of guarantor is
about $196 billion, or $25 billion less than the total for claims by country of borrower. This results from U.S. residents guaranteeing about $29
billion in claims on foreign residents and foreigners guaranteeing about $5 billion in claims on
U.S. residents.
Commitments
to
Provide Funds for
Foreigners
The survey also provides information on contingent claims on foreigners. The banks were asked
to report only those contingent claims when the
bank had a legal obligation to provide funds. The
amounts total $68 billion, 77 percent of that total
being on the private sector, including banks.
The second policy statement approved by the
Board deals with c o r r e c t i v e a c t i o n s by the
agencies. It calls for the following procedures.
1. A federal bank regulatory agency initiating
a formal enforcement action against a bank holding company or a commercial bank will notify the
other two agencies.
2. Review by a committee composed of the directors of bank supervision of the three agencies
of any differences of view among the agencies on
actions to be taken. Unresolved differences will
be referred to the Examination Council members
of the bank supervisory agencies.
3. Arrangements for notification, by the Federal Reserve and Federal Deposit Insurance Corporation, to the appropriate state supervisory authority of intent to institute a formal corrective
action against a bank holding company or statechartered bank.
REGULATION
POLICY
STATEMENTS
FOR BANK
SUPERVISORS
The Federal Reserve Board has adopted two policy statements calling for coordinated action among
federal bank supervisors with respect to certain
examination, supervision, and corrective actions
affecting bank holding companies and commercial
banks. The statements were recommended to the
Board and to the other federal bank supervisors
by the Federal Financial Institutions Examination
Council.
One policy statement, concerning inspection
of bank holding companies and examination of
subsidiary banks, would require coordinated inspections and examinations of at least the bank
holding company and its lead bank in the case of
(1) any bank holding company with consolidated
assets of more than $10 billion; (2) any bank
holding company or lead bank of a bank holding
company in the two least favorable rating categories of the five-category uniform rating systems for bank and bank holding companies used
by the agencies; and (3) any bank holding company or lead bank of a bank holding company in the
third, or middle, category of these rating systems if the institution's financial condition appears to have worsened significantly since it was
inspected or examined.
35
H:
AMENDMENTS
The Federal Reserve Board has adopted amendments to rules announced in July establishing
uniform standards for bank recordkeeping, confirmation, and other procedures in making securities transactions for trust departments and other bank customers.
The Board's revised Regulation H (Membership of State Banking Institutions in the Federal
Reserve System), effective January 1, 1980, includes the following provisions:
1. Recordkeeping. The following records of
securities transactions must be kept by banks for
three years, in a manner forming an adequate
record for audit: itemized daily records of purchases and sales; account records for customers;
and a separate record of each order to purchase
or sell securities.
2. Alternative confirmation
requirements.
When the bank uses a broker, the bank may send
customers the bank's confirmation or a copy of
the broker's confirmation within five days from
the time the bank executes the transaction or receives confirmation from the broker. Confirmation may not be required in certain cases
when the customer and the bank agree to a different arrangement.
When the bank exercises investment discretion as agent for the customer, the bank must
36
Federal Reserve Bulletin • January 1980
provide quarterly reports to the customer. In
such cases the bank must identify separately its
fees in transactions in government securities for
customers. Dealer markups need not be disclosed.
3. Policies and procedures. Banks making securities transactions for customers must establish written policies and procedures, including:
Policies and procedures relating to supervision of
officers and employees, the equitable allocation
of securities, and the equitable matching of buyand-sell orders; and requirements for bank employees involved in securities transactions for
customers to report their own securities transactions quarterly, with the exception of their transactions in U.S. government securities.
4. Exemptions. A bank that is in compliance
with the rules of the Municipal Securities Rulemaking Board with respect to transactions in municipal securities is deemed to be in compliance
with the Board's recordkeeping and confirmation
requirements. In addition, the Board's rules exempt the securities activities of foreign branches
of banks, and exempt banks that normally make
200 or fewer securities transactions a year for
customers, not counting transactions in U.S. government securities, from certain recordkeeping
requirements.
UNIFORM REPORT OF CONDITION
The Federal Financial Institutions Examination
Council on December 27, 1979, announced adoption of a report of condition to be required quarterly from U.S. branches and agencies of foreign
and Puerto Rican banks.
The quarterly reports of condition will be
made to the federal bank supervisory agencies to
implement a part of the International Banking
Act of 1978.
The first reports will be filed for the quarter
that ends June 30, 1980, and must be submitted
within one month of that date. Further reports
will be filed 30 days after the end of each calendar quarter.
The reports will serve supervisory and informational needs of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board. These
agencies share, under the International Banking
Act, federal supervisory responsibility for foreign bank branches and agencies in the United
States.
All reports will be sent to the Federal Reserve,
which will collect them and act as processing
agent on behalf of the three federal supervisory
agencies.
The new uniform report of condition for foreign bank branches and agencies will replace reports of condition now being submitted to the
federal supervisory agencies and is patterned after the condition report required quarterly of all
U.S. banks.
EDGE CORPORATION
REPORTS OF CONDITION
The Federal Reserve Board on December 20,
1979, announced that beginning with reports for
the end of 1979 most details of the quarterly report of the financial condition of Edge corporations with banking functions will be made public.
Edge corporations are companies engaged in
international banking and financial operations.
They are required to file quarterly reports of their
condition with the Federal Reserve. The Board's
decision to make their condition reports public
places these reports on the same footing in this
respect as a recently adopted report of condition
for U.S. branches and agencies of foreign banks.
The Federal Financial Institutions Examination
Council has adopted a new quarterly condition
report for the foreign branches and agencies that
will be made available to the public, in most details on an individual office basis, on implementation in mid-1980. The Council will shortly announce details of the new condition report for
foreign branches and agencies. (See item above.)
The quarterly condition reports of Edge corporations filed with the Federal Reserve will similarly be made available, on an individual office
basis, on request. Previously, condition reports
of Edge corporations with banking functions
have been made available in aggregate form but
not for individual Edge corporations.
The annual reports of income that Edge corporations must also file with the Federal Reserve
will not be made available to the public.
The Board's decision with respect to the condition reports of banking Edge corporations does
Announcements
not affect the confidential treatment of similar
data concerning nonbanking Edge companies
(which are essentially holding companies for foreign investments).
The condition reports of Edge corporations for
periods earlier than the last quarter of 1979 will
continue to be held confidential.
NEW
PUBLICATIONS
The Annual Statistical Digest, 1974-1978 is designed as a compact source of economic—and
especially financial—data. The object is to lighten the burden of assembling time series by providing a single source of historical continuations
of the statistics carried regularly in the F E D E R A L
R E S E R V E B U L L E T I N . The Digest also offers, at
least once a year, a continuation of series that
formerly appeared regularly in the B U L L E T I N , as
well as certain special, irregular tables, which the
B U L L E T I N also once carried. The domestic nonfinancial series included are those for which the
Board of Governors is the primary source.
This issue of the Digest covers, in general, the
years 1974 through 1978. It serves to maintain
the historical series first published in Banking
and Monetary Statistics, 1941-70, and continued
with the earlier issues of the Digest—for 197175, 1972-76, and 1973-77.
Copies of the Digest are available from Publications Services, Board of Governors of the
Federal Reserve System, Washington, D.C.
20551. The price is $10.00 per copy.
Flow of Funds Accounts, 1949-1978 is a statistical publication that presents the complete set of
flow of funds accounts in annual form: year-total
flows and year-end outstanding amounts of assets and liabilities. It complements the current
quarterly releases as an historical basebook and
summarizes the full quarterly history that is published as a whole only in computer data tape
form. The publication replaces the last preceding
annual volume, Flow of Funds Accounts, 19461975 (December 1976).
Copies are available from Publications Services,
Board of Governors of the Federal Reserve System, Washington, D.C. 20551. The cost for single
copies is $1.75 or for 10 or more sent to one address, $1.50 each.
37
A new "Federal Reserve Glossary" defines
terms commonly used in banking, finance, and
Federal Reserve System operations. Copies may
be obtained without charge from Publications
Services, Room MP-510, Board of Governors of
the Federal Reserve System, Washington, D.C.
20551.
PROPOSED A CTIONS
The Federal Reserve Board on December 13,
1979, proposed for public comment a policy
statement designed to help maintain the safety
and soundness of the banking system—particularly of small community banks—and to facilitate
the change of o w n e r s h i p of such b a n k s by
amending the criteria applied in considering applications for formations of one-bank holding
companies. The Board asked for comment through
January 31, 1980.
The Federal Reserve Board on December 14,
1979, proposed for comment a clarification and
simplification of the portions of its Regulation J
(Collection of C h e c k s and O t h e r I t e m s and
Transfer of Funds) dealing with check collection
and wire transfers. The Board asked for comment by February 15, 1980.
The Federal Reserve Board published for comment on December 18, 1979, a policy statement
that would prohibit insiders in state member
banks from profiting personally from sales of life
insurance in connection with credit transactions.
The Board asked for comment through March
31, 1980.
The Federal Financial Institutions Examination Council recommended on December 14,
1979, adoption of a policy statement concerning
disclosure of enforcement actions against financial institutions supervised by the agencies on
the council. The council requested action by the
agencies by January 11, 1980.
The Federal Reserve Board on December 20,
1979, proposed for public comment revisions to
bring the Board's Regulation F (Securities of
Member State Banks) into conformity with recent rule revisions by the Securities and Exchange C o m m i s s i o n and also p r o p o s e d simplification of Regulation F. The Board asked for
comment by March 1, 1980.
38
Federal Reserve Bulletin • January 1980
CHANGES
IN BOARD
STAFF
The Federal Reserve Board has announced the
following staff changes.
George E. Livingston, Acting Assistant Controller has been appointed Assistant Controller,
effective December 16, 1979. Mr. Livingston, who
joined the staff of the Board in 1969, holds a
B.A. from Syracuse University and an M.B.A.
from American University.
Michael J. Prell, Deputy Associate Director,
Division of Research and Statistics, has been
named Associate Director, effective December
16, 1979.
Robert A. Eisenbeis, Deputy Associate Director, Division of Research and Statistics, has been
promoted to Senior Deputy Associate Director,
effective December 16, 1979.
John D. Smith, Assistant Director, Division of
Support Services, retired on December 31, 1979.
The Board also has announced the resignations of Kenneth A. Guenther, Assistant to the
Board, and Anne Geary, Assistant Director, Division of Consumer and Community Affairs.
S YSTEM
MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period December 11, 1979, through January 10,
1980:
Florida
Tampa
Exchange Bank and
Trust Company of Florida
Oregon
Aumsville
Santiam Valley Bank
Florence . . Oregon Pacific Banking Company
Utah
Bountiful . . . . Rocky Mountain State Bank
of Bountiful
Tremonton
Golden Spike State Bank
39
Record of Policy Actions of the
Federal Open Market Committee
MEETING HELD ON NOVEMBER 20, 1979
1. Domestic Policy Directive
The information reviewed at this meeting suggested that real output
of goods and services was falling in the current quarter following a
stronger rebound in the third quarter than had been anticipated at
the time of the Committee's meeting on October 6. Average prices,
as measured by the fixed-weight price index for gross domestic business product, appeared to be rising at a pace close to the annual rate
of 10 percent in the first three quarters of the year.
Staff projections suggested a further contraction in economic activity during the first half of 1980 and an upturn later in the year. The
rise in average prices was projected to moderate slightly as the year
progressed, and the rate of unemployment was expected to increase
substantially.
Retail sales fell considerably in October, after having expanded
rapidly during the third quarter in both constant and current dollars.
Sales of new automobiles fell sharply in October and weakened further in early November.
The index of industrial production changed little in October and
remained near its midyear level. Nonfarm payroll employment rose
substantially after three months of limited gains, but the rate of
unemployment edged up to 6.0 percent.
Private housing starts declined in October to an annual rate of 1.76
million units, compared with an average rate of 1.83 million units in
both the second and third quarters, and building permits for new
housing units fell appreciably. Sales of new and existing single-family homes were at a relatively high level in September, but available
information suggested lower combined sales in October.
Producer prices continued to rise at a rapid rate in October, reflecting further sharp advances in energy items and the spreading
impact on costs of earlier increases in energy prices. In September
consumer prices also continued to move up rapidly, with the most
40
Federal Reserve Bulletin • January 1980
pronounced increases concentrated in the energy, food, homeownership, and apparel components.
In October the rise in the index of average hourly earnings of private nonfarm production workers moderated to an annual rate of
about V h percent, but over the first 10 months of the year the advance was close to the rapid pace of 1978. Labor cost pressures in
the nonfarm business sector had remained intense in the third quarter, reflecting a sharp increase in total hourly compensation and
virtually no improvement in productivity.
On October 6 the Federal Reserve announced a series of complementary actions directed toward assuring better control over the
expansion of money and bank credit and toward curbing speculative
excesses in commodity and financial markets, including foreign exchange markets. The actions included an increase in Federal Reserve Bank discount rates from 11 percent to 12 percent; establishment of a marginal reserve requirement of 8 percent on increases
in certain managed liabilities of member banks, Edge corporations,
and U.S. agencies and branches of foreign banks; and a shift in the
conduct of open market operations to an approach placing greater
emphasis in day-to-day operations on the supply of bank reserves
and less emphasis on confining short-term fluctuations in the federal
funds rate.
At its meeting on October 6, the Committee had decided that over
the remainder of 1979 the Manager for Domestic Operations should
place primary emphasis on restraining expansion of bank reserves in
pursuit of the objective of decelerating growth of M-l, M-2, and M-3
to rates that would hold growth of these monetary aggregates from
the fourth quarter of 1978 to the fourth quarter of 1979 within the
Committee's ranges for that period. Specifically, the Committee instructed the Manager to restrain expansion of bank reserves to a
pace consistent with growth from September to December at an annual rate on the order of Alh percent in M-l and ll12 percent in M-2
and M-3, provided that in the period before the next regular meeting
the weekly average federal funds rate remained generally within a
range of I I V 2 to 15V2 percent. Because such rates of expansion
would result in growth of the monetary aggregates in the upper part
of their ranges for the year, the Committee also had agreed that over
the three-month period somewhat slower growth would be acceptable. The Committee had anticipated that the shift to an operating
Record of Policy Actions of the FOMC
approach that placed primary emphasis on the volume of reserves
would result in both a prompt increase and greater fluctuations in the
federal funds rate.
Over the first half of October, measures of bank reserves in general grew faster than had been anticipated at the time of the meeting on
October 6, both because demands for reserves were unexpectedly
strong and because System operations provided more reserves than
had been expected. Subsequently, System operations were directed
more firmly at restraining growth of reserves. As such operations
limited growth of nonborrowed reserves while demands for reserves
remained strong, member bank borrowings rose to a daily average of
about $3 billion in the last two statement weeks of October and the
federal funds rate rose to an average a little above \5lh percent in
the final week. In the first half of November, demands for reserves
eased, and member bank borrowings subsided to a daily average of
about $2 billion and the federal funds rate declined to an average of
about 13V2 percent.
From September to the first half of November, total member bank
reserves expanded at an annual rate of about I I V 2 percent, slightly
faster than over the three months from June to September. However, expansion of the monetary base and of nonborrowed reserves
slowed sharply over the period from September to the first half of
November, to annual rates of about 8 percent and 2lU percent respectively.
Growth of M-l, which had accelerated in September and had been
exceptionally rapid in the third quarter as a whole, slowed to an
annual rate of 2xh percent in October. Growth of M-2 slowed less
than that of M-l, to a rate of about 8V2 percent in October, as overall
expansion in the interest-bearing components remained strong. A
marked rise of net flows into money market certificates and other
time deposits at commercial banks, fostered by substantially higher
deposit yields, offset a sharp reduction in savings deposits.
At nonbank thrift institutions, inflows into money market certificates and large-denomination time deposits also accelerated in October, but total net inflows slowed somewhat. High interest returns
attracted near-record inflows into shares of money market mutual
funds.
Growth in loans and investments at commercial banks moderated
appreciably in October. With demand deposits and savings deposits
41
42
Federal Reserve Bulletin • January 1980
weak or declining, however, banks increased their reliance on money market certificates and on the managed liabilities that became
subject to marginal reserve requirements in the statement week beginning October 11.
Since early October interest rates had risen sharply in both shortand long-term markets and had been unusually volatile. In this period, banks had raised their loan rate to prime business borrowers
from 13V2 percent to a new high of 153/4 percent. Since the latter
part of October, however, short-term market rates had declined
from their peaks in apparent reaction to evidence of reduced monetary growth and to some easing of pressure in the federal funds market as bank demands for reserves moderated.
In foreign exchange markets the downward pressure on the dollar
that had developed in September was reversed in early October, and
by the end of the month, the trade-weighted value of the dollar
against major foreign currencies had risen about V h percent.
Around mid-November, however, the dollar came under renewed
downward pressure and lost a portion of its October gain, in part
reflecting developments relating to Iran. The U.S. trade deficit increased in September, as the cost of oil imports rose considerably
further. For the third quarter as a whole the deficit was somewhat
lower than that for the second quarter, however, as strong gains in
agricultural and other exports more than offset the large rise in the
value of petroleum imports.
In the Committee's discussion of the economic situation and outlook, the members in general agreed with the staff appraisal that the
unexpectedly strong rebound in real gross national product in the
third quarter would be followed by some contraction in activity and
by a rise in unemployment, although uncertainty was expressed
about the depth and duration of the anticipated downturn as well as
about its precise timing. Some members cited the onset of the heating season with energy prices so much higher than a year earlier, the
overall rate of inflation, the recent sharp rise in interest rates, and
the developing stringency in some financial markets as influences
that might cause the contraction to be relatively severe.
Continuation of the rapid rise in prices of goods and services remained a major concern of Committee members, some of whom
thought that the risks were on the side of a rise greater than that
currently anticipated. The prospects for supplies and prices of oil,
Record of Policy Actions of the FOMC
which would have a substantial effect on the economy, were regarded as especially uncertain, in view of the political situation in
Iran and of the meeting of petroleum-exporting countries scheduled
to begin on December 17.
At its meeting on July 11, 1979, the Committee reaffirmed the
ranges for monetary growth in 1979 that it had established in February. Thus the Committee agreed that from the fourth quarter of 1978
to the fourth quarter of 1979, average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M-l, IV2 to 4V2 percent; M-2, 5 to 8
percent; and M-3, 6 to 9 percent. Having established the range for
M-l in February on the assumption that expansion of ATS and
NOW accounts would dampen growth by about 3 percentage points
over the year, the Committee also agreed that actual growth of M-l
might vary in relation to its range to the extent of any deviation from
that estimate. More recently, it appeared that expansion of such accounts would reduce measured growth of M-l over the year by
about IV2 percentage points. After allowance for the deviation from
the earlier estimate, the equivalent range for M-l was 3 to 6 percent.
In contemplating policy for the period immediately ahead, the
Committee took note of a staff analysis indicating that the behavior
of the monetary aggregates since September had been reasonably
consistent with the policy adopted on October 6, when the Committee had instructed the Manager to restrain expansion of bank reserves to a pace consistent with annual rates of growth from September to December on the order of 4V2 percent in M-l and l x h
percent in M-2 and M-3 but had also stated that somewhat slower
growth over the three-month period would be acceptable. The staff
analysis noted that growth in M-l at an average annual rate of 5xh
percent in November and December would be consistent with
growth at an annual rate of 4V2 percent from September to December, although the pattern of change in recent weeks suggested that
growth would be below the two-month average in November and
above it in December. Growth of M-l at those rates or even somewhat slower ones would probably be associated with more rapid
growth of M-2 over the September-December period than the l x li
percent rate specified in October, because time deposits at banks
were continuing to grow faster in relation to demand deposits than
had been expected.
43
44
Federal Reserve Bulletin • January 1980
In the Committee's discussion of policy for the period immediately ahead, the members indicated that in the present circumstances
pursuit of the goal of restraining growth of the monetary aggregates
from the fourth quarter of 1978 to the fourth quarter of 1979 within
the ranges previously established for that period remained feasible
and desirable; they agreed that in pursuit of that underlying goal, the
broad objectives for monetary growth during the current quarter
adopted at the meeting on October 6 were still appropriate. In contemplating objectives for rates of monetary growth over the weeks
through the end of 1979 and into January 1980, the members differed
somewhat in their views concerning the extent to which operations
should be directed toward promoting acceleration in growth of M-l
from the recently reduced rates. A few members favored operations
consistent with the October 6 decision to seek a Axh percent annual
rate of growth in M-l over the September-December period. A few
members favored acceptance of a significantly slower rate of growth
for the quarter. Most members, however, advocated a compromise
between those two prescriptions. It was recognized that, while the
decision affecting such a short period would have quite minor implications for monetary growth over the year ending in the fourth quarter of 1979, it would affect credit and money market conditions in the
weeks ahead and the path of monetary growth entering the new
year.
Views with respect to an acceptable range of fluctuation for the
federal funds rate did not vary greatly. It was agreed that the range
should continue to be relatively wide, and most members indicated a
preference for retaining the range of 11 lh to \5l12 percent adopted at
the October 6 meeting. Some sentiment was also expressed for reducing the lower limit and some for both reducing the lower limit
and raising the upper limit.
At the conclusion of the discussion, the Committee agreed that in
the conduct of open market operations over the remainder of 1979,
the Manager for Domestic Operations should continue to restrain
expansion of bank reserves in pursuit of the Committee's objective of
decelerating growth of M-l, M-2, and M-3 over the fourth quarter of
1979 to rates that would hold growth of these monetary aggregates
from the fourth quarter of 1978 to the fourth quarter of 1979 within
the Committee's ranges for that period; it was recognized that persistence of recent relationships might result in growth of M-2 at
Record of Policy Actions of the FOMC
about the upper limit of its range. Specifically, the Committee instructed the Manager to restrain expansion of bank reserves to a
pace thought to be consistent with growth on the average in November and December at an annual rate of about 5 percent in M-l and 8V2
percent in M-2, provided that in the period before the next regular
meeting the federal funds rate remained generally within a range of
I I V 2 to 15V2 percent.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that real output of
goods and services is declining in the current quarter, after the third-quarter
rebound, and that prices on the average are continuing to rise rapidly. Retail
sales, which had expanded sharply during the third quarter in both constant
and current dollars, dropped in October. Industrial production remained
near its midyear level. Nonfarm payroll employment rose considerably, after three months of little growth, but the unemployment rate increased from
5.8 to 6.0 percent. Producer prices of finished goods continued to rise rapidly in October, in part because of further sharp increases in energy costs. The
rise in the index of average hourly earnings during the first 10 months
of the year was close to the rapid pace during 1978.
On October 6 the Federal Reserve announced a series of complementary
actions directed toward assuring control over the expansion of money and
bank credit and toward curbing speculative excesses in commodity and financial markets, including foreign exchange markets. The actions included
an increase in Federal Reserve Bank discount rates from 11 percent to 12
percent; establishment of a marginal reserve requirement on increases in the
total of managed liabilities of member banks, Edge corporations, and U.S.
agencies and branches of foreign banks; and a shift in the conduct of open
market operations to an approach placing greater emphasis in day-to-day
operations on the supply of bank reserves and less emphasis on confining
short-term fluctuations in the federal funds rate.
Following the announcement on October 6, the downward pressure on
the dollar in the exchange markets that had developed in September was
reversed, and by the end of October the trade-weighted value of the dollar
against major foreign currencies had risen about Vh percent. In mid-November, however, the value of the dollar declined, reflecting in part developments concerning Iran. The U.S. foreign trade deficit increased in September as the cost of oil imports rose, but the deficit was somewhat lower
for the third quarter as a whole than for the second quarter.
Growth of M-l, which had accelerated in September and was exceptionally rapid in the third quarter as a whole, slowed sharply in October
to an annual rate of 2V2 percent. Expansion of interest-bearing deposits
included in M-2 remained strong, as a rise in net flows into time deposits at
commercial banks in response to increased yields offset a contraction in
45
46
Federal Reserve Bulletin • January 1980
savings deposits. Inflows of deposits at nonbank thrift institutions slowed
somewhat. Flows into money market mutual funds accelerated. Growth of
commercial bank credit moderated in October; nevertheless, banks increased their reliance on the negotiable, large-denomination CD's and other
managed liabilities that became subject to the marginal reserve requirement
in the statement week beginning October 11. Both short- and long-term market interest rates have risen sharply on balance since the early October announcement of the System's policy actions, although most recently rates
have declined; mortgage interest rates have increased substantially further.
Taking account of past and prospective developments in employment,
unemployment, production, investment, real income, productivity, international trade and payments, and prices, the Federal Open Market Committee seeks to foster monetary and financial conditions that will resist inflationary pressures while encouraging moderate economic expansion and
contributing to a sustainable pattern of international transactions. At its
meeting on July 11, 1979, the Committee agreed that these objectives would
be furthered by growth of M-l, M-2, and M-3 from the fourth quarter of 1978
to the fourth quarter of 1979 within ranges of IV2 to 4V2 percent, 5 to 8
percent, and 6 to 9 percent respectively, the same ranges that had been
established in February. The range for M-l had been established originally
on the basis of an assumption that expansion of ATS and NOW accounts
would dampen growth by about 3 percentage points over the year. It now appears that expansion of such accounts will dampen growth by about IV2 percentage points over the year; thus after allowance for the deviation from the
earlier estimate, the equivalent range for M-l is now 3 to 6 percent. The
associated range for bank credit is l x h to IOV2 percent. The Committee
anticipates that for the period from the fourth quarter of 1979 to the fourth
quarter of 1980, growth may be within the same ranges, depending upon
emerging economic conditions and appropriate adjustments that may be required by legislation or judicial developments affecting interest-bearing
transactions accounts. These ranges will be reconsidered at any time as
conditions warrant.
In the short run, the Committee seeks to restrain expansion of reserve
aggregates to a pace consistent with deceleration in growth of M-l, M-2, and
M-3 in the fourth quarter of 1979 to rates that would hold growth of these
monetary aggregates over the whole period from the fourth quarter of 1978
to the fourth quarter of 1979 within the Committee's longer-run ranges, provided that in the period before the next regular meeting the weekly average
federal funds rate remains within a range of IIV2 to 1572 percent.
If it appears during the period before the next meeting that the constraint
on the federal funds rate is inconsistent with the objective for the expansion
of reserves, the Manager for Domestic Operations is promptly to notify the
Chairman who will then decide whether the situation calls for supplementary instructions from the Committee.
Votes for this action: Messrs. Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Rice, Schultz, Mrs. Teeters,
Record of Policy Actions of the FOMC
Messrs. Wallich, and Timlen. Votes against this action: None.
(Mr. Timlen voted as an alternate member.)
2. Authorization for Domestic Open Market Operations
On December 20, 1979, the Committee voted to increase from $3
billion to $4 billion the limit on changes between Committee meetings in System Account holdings of U.S. government and federal
agency securities specified in paragraph 1(a) of the authorization for
domestic open market operations, effective immediately, for the period ending with the close of business on January 9, 1980.
Votes for this action: Messrs. Balles, Black, Coldwell, Kimbrel,
Mayo, Partee, Rice, Schultz, Mrs. Teeters, Messrs. Wallich, and
Timlen. Votes against this action: None. Absent and not voting: Mr.
Volcker. (Mr. Timlen voted as an alternate member.)
This action was taken on recommendation of the Manager for Domestic Operations, System Open Market Account. The Manager
had advised that since the November meeting large-scale purchases
of securities primarily to counter the effects of seasonal increases in
currency in circulation had reduced the leeway for further purchases
to about $500 million. It appeared likely that additional purchases
would be required because projections indicated a need for further
reserve-providing operations over the coming weeks.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual Report, are
made available a few days after the next regularly scheduled meeting and are
subsequently published in the B U L L E T I N .
47
49
Legal Developments
AMENDMENTS
TO REGULATION
H
The Board of Governors has adopted amendments to
its Regulation H to require that State member banks
that effect certain securities transactions for customers
provide confirmation of and maintain records with respect to such transactions.
Effective January 1, 1980 section 208.8 of Regulation H is amended as follows:
bank shall mail or otherwise furnish to each such customer within a reasonable time the written notification
described in subparagraph (3). The bank may charge a
reasonable fee for providing the information described
in subparagraph (3).
(5) Securities Trading Policies and Procedures:
Every State member bank effecting securities transactions for customers shall establish written policies and
procedures providing:
Section 208.8—Banking Practices
(k) Recordkeeping and confirmation of certain
securities transactions effected by State member
banks.
(4) Time of Notification: The time for mailing or
otherwise furnishing the written notification described
in subparagraph (3) shall be 5 business days from the
date of the transaction, or if a broker/dealer is utilized,
within 5 business days from the receipt by the bank of
the broker/dealer's confirmation, but the bank may
elect to use the following alternative procedures if the
transaction is effected for:
(i) accounts (except periodic plans) where the bank
does not exercise investment discretion and the bank
and the customer agree in writing to a different arrangement as to the time and content of the notification; provided, however, that such agreement makes
clear the customer's right to receive the written notification within the above prescribed time period at no
additional cost to the customer;
*
*
*
*
(iii) accounts, where the bank exercises investment
discretion in an agency capacity, in which instance (a)
the bank shall mail or otherwise furnish to each customer not less frequently than once every three
months an itemized statement which shall specify the
funds and securities in the custody or possession of the
bank at the end of such period and all debits, credits
and transactions in the customer's accounts during
such period, and (b) if requested by the customer, the
(iv) that bank officers and employees who make investment recommendations or decisions for the accounts of customers, who participate in the determination of such recommendations or decisions, or who, in
connection with their duties, obtain information concerning which securities are being purchased or sold or
recommended for such action, must report to the
bank, within ten days after the end of the calendar
quarter, all transactions in securities made by them or
on their behalf, either at the bank or elsewhere in
which they have a beneficial interest. The report shall
identify the securities purchased or sold and indicate
the dates of the transactions and whether the transactions were purchases or sales. Excluded from this requirement are transactions for the benefit of the officer
or employee over which the officer or employee has no
direct or indirect influence or control, transactions in
mutual fund shares, and all transactions involving in
the aggregate $10,000 or less during the calendar quarter. For purposes of this subparagraph (k)(iv), the term
"securities" does not include U.S. government or federal agency obligations.
(6) Exceptions: The following exceptions to subparagraph (k) shall apply:
(i) the requirements of subparagraph (k)(2)(ii)
through (k)(2)(iv) and subparagraph (k)(5)(i) through
(k)(5)(iii) shall not apply to banks having an average of
less than 200 securities transactions per year for customers over the prior three calendar year period, exclusive of transactions in U.S. government and federal
agency obligations;
50
Federal Reserve Bulletin • January 1980
AMENDMENTS
TO REGULATION
Q
The Board of Governors has adopted three amendments to Regulation Q, Interest on Deposits. The first
amendment creates a new time deposit category with a
maturity oil112 years or more. The second amendment
increases the ceiling rate of interest payable by member banks on time deposits with maturities of 90 days
or more, but less than one year from 5V2 per cent to
53/4 per cent. The third amendment permits members
to pay interest on Individual Retirement Account/
Keogh (H.R. 10) Plan and governmental unit funds at
the same rate permitted mutual savings banks and savings and loan associations when such funds are invested in 26-week $10,000 money market time deposits or
the new 2xli year time deposit.
Effective January 1, 1980, sections 217.7(b), (f), and
(g) of Regulation Q are amended as follows:
Section 217.7—
Maximum Rates of Interest Payable by
Member Banks On Time and Savings Deposits
(b) Fixed ceiling time deposits of less than $100,000.
Except as provided in paragraphs (a), (d), (e), (f), and
(g), no member bank shall pay interest on any time
deposit at a rate in excess of the applicable rate under
the following schedule:
Maturity
Maximum per cent
30 days or more but less than
5V4
90 days
90 days or more but less than
5 /4
1 year
1 year or more but less than
6
2V2 years
2V2 years or more but less
6V2
than 4 years
4 years or more but less than
TU
6 years
6 years or more but less than
Vh
8 years
8 years or more
vu
3
(f) 26-week money market time deposits of less than
$100,000. Except as provided in paragraphs (a), (b),
and (d), a member bank may pay interest on any nonnegotiable time deposit of $10,000 or more, with a
maturity of 26 weeks, at a rate not to exceed the rate
established (auction average on a discount basis) for
United States Treasury bills with maturities of 26
weeks issued on or immediately prior to the date of
deposit. Rounding such rate to the next higher rate is
not permitted. A member bank may not compound in
terest during the term of this deposit. A member bank
may offer this category of time deposit to all depositors. However, a member bank may pay interest on
any nonnegotiable time deposit of $10,000 or more
with a maturity of 26 weeks which consists of funds
deposited to the credit of, or in which the entire beneficial interest is held by:
(1) the United States, any State of the United States,
or any county, municipality or political subdivision
thereof, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, American Samoa,
Guam, or political subdivision thereof; or
(2) an individual pursuant to an Individual Retirement Account agreement or Keogh (H.R. 10) Plan established pursuant to 26 U.S.C. (I.R.C. 1954) §§ 408,
401, at a rate not to exceed the ceiling rate payable on
the same category of deposit by any Federally insured
savings and loan association or mutual savings bank.
(g) Time deposits of less than $100,000 with maturities of2lh years or more. Except as provided in paragraphs (a), (b), (d), and (e), a member bank may pay
interest on any nonnegotiable time deposit with a
maturity of 2V2 years or more that is issued on or after
the first day of each month at a rate not to exceed three
quarters of one per cent below the average 2V2 year
yield for United States Treasury securities as determined and announced by the United States Department of the Treasury three business days prior to the
first day of such month. The average 2lh year yield
will be rounded by the United States Department of
the Treasury to the nearest 5 basis points. A member
bank may offer this category of time deposit to all depositors. However, a member bank may pay interest
on any nonnegotiable time deposit with a maturity of
2lh years or more which consists of funds deposited to
the credit of, or in which the entire beneficial interest
is held by:
(1) the United States, any State of the United States,
or any county, municipality or political subdivision
thereof, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, American Samoa,
Guam, or political subsivision thereof; or
(2) an individual pursuant to an Individual Retirement Account agreement or Keogh (H.R. 10) Plan established pursuant to 26 U.S.C. (I.R.C. 1954) §§ 408,
401, at a rate not to exceed the ceiling rate payable on
the same category of deposit by any Federally insured
savings and loan association or mutual savings bank.
AMENDMENTS
TO REGULATION
Z
The Board of Governors has adopted revisions in the
Legal Developments
requirements of Regulation Z, Truth in Lending, with
regard to the calculation and disclosure of the annual
percentage rate and other credit terms. The most important changes are: (1) adoption of a tolerance of 1/8
of 1 percentage point in either direction from the exact
annual percentage rate, in place of the existing rounding rule; (2) adoption of simplified rules for treating minor payment schedule variations; and (3) expansion of
the protection available to creditors who have relied in
good faith on faulty calculation tools. The amendments to Regulation Z are set forth below.
1. Effective October 1, 1980, existing § 226.5(a) is
amended by deleting both the title "General rule—
open end credit accounts" and the first sentence beginning "The annual percentage rates for open end
credit" and ending "nearest quarter of 1 percent.";
§§ 226.5(b) through (e), Interpretations §§ 226.502,
226.503, and 226.505, and Supplement I to Regulation
Z are rescinded.
2. Effective January 10, 1980, § 226.5(a) is amended
and new §§ 226.5(b) and (c), 226.8(r) and (s) and Supplement I to Regulation Z are added, to read as follows:
Section 226.5—
Determination of Annual Percentage Rate
(a) Open end credit—general rule. The annual percentage rate is a measure of the cost of credit, expressed as a yearly rate. An annual percentage rate
shall be considered accurate if it is not more than 1/8 of
1 percentage point above or below the annual percentage rate determined in accordance with this section.
;}:
^
(b) Credit other than open end. (1) General rule. The
annual percentage rate is a measure of the cost of credit, expressed as a yearly rate, which relates the amount
and timing of value received by the consumer to the
amount and timing of payments made. The annual percentage rate shall be determined in accordance with
either the actuarial method or the United States Rule
method and shall be considered accurate if it is not
more than 1/8 of 1 percentage point above or below the
annual percentage rate determined in accordance with
whichever method is used. Explanations, equations,
and instructions for determining the annual percentage
rate in accordance with the actuarial method are set
forth in Supplement I.
(2) Computation tools, (i) The Regulation Z Annual
Percentage Rate Tables produced by the Board may be
used to determine the annual percentage rate, and any
such rate determined from these tables in accordance
51
with the instructions contained therein will comply
with the requirements of this section. Volume I of the
tables applies to single advance transactions involving
up to 480 monthly payments or 104 weekly payments.
It may be used for regular transactions, and for transactions with any of the following irregularities: an odd
first period, an odd first payment, and an odd final payment. Volume II applies to transactions involving multiple advances and any type of payment or period irregularity.
(ii) Creditors may use any other computation tool in
determining the annual percentage rate so long as the
annual percentage rate so determined equals the annual percentage rate determined in accordance with Supplement I, within the degree of accuracy set forth in
paragraph (b)(1) of this section.
(iii) Supplement I and Volumes I and II may be obtained from any Federal Reserve Bank or from the
Board in Washington, D.C. 20551.
(3) Single add-on rate transactions. If a single addon rate is applied to all transactions with maturities up
to 60 months and if all payments are equal in amount
and period, a single annual percentage rate may be disclosed for all such transactions, provided that it is the
highest annual percentage rate for any such transaction.
(4) Certain transactions involving ranges of balances. For purposes of disclosing the annual percentage rate referred to in §§ 226.8(g)(1) and (2) (Orders by
mail or telephone) and 226.8(h)(1) (Series of sales), if
the same finance charge is imposed on all balances
within a specified range of balances, the annual percentage rate computed for the median balance may be
disclosed for all of the balances. However, if the annual percentage rate computed for the median balance
understates the annual percentage rate computed for
the lowest balance by more than 8 per cent of the latter
rate, the annual percentage rate shall be computed on
whatever lower balance will produce an annual percentage rate which does not result in an understatement of more than 8% of the rate determined on
the lowest balance.
(5) Payment schedule irregularities. In determining
and disclosing the annual percentage rate, a creditor
may disregard an irregularity in the first period 5b that
falls within the limits described below and any payment schedule irregularity that results from the irregular first period:
(i) For transactions in which the term 5b is less than
5b. For purposes of this paragraph, the "first period" is the period
from the date on which the finance charge begins to be earned to the
date of the first payment, and the "term" is the period from the date
52
Federal Reserve Bulletin • January 1980
1 year: a first period not more than 6 days shorter or 13
days longer than a regular period;
(ii) For transactions in which the term is at least 1
year and less than 10 years: a first period not more
than 11 days shorter or 21 days longer than a regular
period; or
(iii) For transactions in which the term is at least 10
years: a first period shorter than or not more than 32
days longer than a regular period.
(c) Errors in calculation tools. An error in disclosure
of the annual percentage rate or finance charge shall
not, in itself, be considered a violation of this Part if:
(1) The error resulted from a corresponding error in
any calculation tool, such as a chart, table, calculator
or computer, used in good faith by the creditor, and
(2) Upon discovery of the error, the creditor
promptly
(i) Discontinues use of that calculation tool for disclosure purposes, and
(ii) Notifies the Board in writing of the error in the
calculation tool. The notification shall include an identification of the tool and a description of the error, and
shall be addressed to the Division of Consumer and
Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
Section 226.8—Credit Other Than Open E n d Specific Disclosures
^
(r) Payment
^
schedule
^
^
irregularities.
*
In determining
and disclosing the finance charge and the payment
schedule under paragraph (b)(3) of this section, a creditor may disregard an irregular final payment or portion of a final payment that results from an irregular
first period 13f within the limits described below and
may treat the irregular first period as if it were regular:
(1.) For transactions in which the term 13f is less than
1 year: a first period not more than 6 days shorter or 13
days longer than a regular period;
(2.) For transactions in which the term is at least 1
year and less than 10 years: a first period not more
than 11 days shorter or 21 days longer than a regular
period; or
(3.) For transactions in which the term is at least 10
on which the finance charge begins to be earned to the date of the final
payment.
13f. For purposes of this paragraph, the "first period" is the period
from the date on which the finance charge begins to be earned to the
date of the first payment, and the "term" is the period from the date
on which the finance charge begins to be earned to the date of the final
payment.
years: a first period shorter than or not more than 32
days longer than a regular period.
(s) Disregarding certain practices. In making calculations and disclosures, a creditor need not take into
account the effects of the following:
(1) The fact that payments are collected in whole
cents;
(2) The fact that the dates of payments and advances
are changed because the scheduled date falls on a Saturday, Sunday, or holiday; and
(3) The fact that months have different numbers of
days.
SUPPLEMENT
I TO REGULATION
Z
Rules for Determining
the Annual
Percentage
Rate for Other than Open End Credit Transactions Pursuant to § 226.5(b) of Regulation Z
I. Introduction
Section 226.5(b) of Regulation Z provides that the
annual percentage rate for other than open end credit
transactions shall be determined in accordance with either the actuarial method or the United States Rule
method. This supplement contains an explanation of
the actuarial method as well as equations, instructions,
and examples of how this method applies to single advance and multiple advance transactions and transactions involving required deposit balances (as defined in
§ 226.8(e) of the regulation).
Under the actuarial method, at the end of each unitperiod (or fractional unit-period) the unpaid balance of
the amount financed is increased by the finance charge
earned during that period and is decreased by the total
payment (if any) made at the end of that period. The
determination of unit-periods and fractional unit-periods shall be consistent with the definitions and rules in
Sections II (C), (D), and (E) and the general equation
in Section II (H).
In contrast, under the United States Rule method, at
the end of each payment period, the unpaid balance of
the amount financed is increased by the finance charge
earned during that payment period and is decreased by
the payment made at the end of that payment period. If
the payment is less than the finance charge earned, the
adjustment of the unpaid balance of the amount financed is postponed until the end of the next payment
period. If at that time the sum of the two payments is
still less than the total accrued finance charge for the
two payment periods, the adjustment of the unpaid
balance of the amount financed is postponed still another payment period, and so forth.
Legal Developments
II. Instructions and Equations for the
Actuarial Method
(A) General rule. The annual percentage rate shall
be the nominal annual percentage rate determined by
multiplying the unit-period rate by the number of unitperiods in a year.
(B) Term of the transaction. The term of the transaction begins on the date of its consummation, except
that if the finance charge or any portion of it is earned
beginning on some other date, the term begins on that
other date. The term ends on the date the last payment
is due, except that if an advance is scheduled after that
date, the term ends on the later date. For computation
purposes, the length of the term shall be equal to the
time interval between any point in time on the beginning date to the same point in time on the ending date.
(C) Definitions
of time
intervals.
(1) A period is the interval of time between advances
or between payments and includes the interval of time
between the date the finance charge begins to be
earned and the date of the first advance thereafter or
the date of the first payment thereafter, as applicable.
(2) A common period is any period that occurs more
than once in a transaction.
(3) A standard interval of time is a day, week, semimonth, month, or a multiple of a week or a month up
to, but not exceeding, 1 year.
(4) All months shall be considered equal. Full
months shall be measured from any point in time on a
given date of a given month to the same point in time
on the same date of another month. If a series of payments (or advances) is scheduled for the last day of
each month, months shall be measured from the last
day of the given month to the last day of another
month. If payments (or advances) are scheduled for
the 29th or 30th of each month, the last day of February shall be used when applicable.
(D)
Unit-period.
(1) In all transactions other than a single advance,
single payment transaction, the unit-period shall be
that common period, not to exceed 1 year, that occurs
most frequently in the transaction, except that
(a) If 2 or more common periods occur with equal
frequency, the smaller of such common periods shall
be the unit-period; or
(b) If there is no common period in the transaction,
the unit-period shall be that period which is the average of all periods rounded to the nearest whole standard interval of time. If the average is equally near 2
standard intervals of time, the lower shall be the unitperiod.
53
(2) In a single advance, single payment transaction,
the unit-period shall be the term of the transaction, but
shall not exceed 1 year.
(E) Number
of unit-periods
between
2 given
dates.
(1) The number of days between 2 dates shall be the
number of 24-hour intervals between any point in time
on the first date to the same point in time on the second
date.
(2) If the unit-period is a month, the number of full
unit-periods between 2 dates shall be the number of
months measured back from the later date. The remaining fraction of a unit-period shall be the number of
days measured forward from the earlier date to the beginning of the first full unit-period, divided by 30. If the
unit-period is a month, there are 12 unit-periods per
year.
(3) If the unit-period is a semimonth or a multiple of
a month not exceeding 11 months, the number of days
between 2 dates shall be 30 times the number of full
months measured back from the later date, plus the
number of remaining days. The number of full unitperiods and the remaining fraction of a unit-period
shall be determined by dividing such number of days
by 15 in the case of a semimonthly unit-period or by
the appropriate multiple of 30 in the case of a multimonthly unit-period. If the unit-period is a semimonth,
the number of unit-periods per year shall be 24. If the
number of unit-periods is a multiple of a month, the
number of unit-periods per year shall be 12 divided by
the number of months per unit-period.
(4) If the unit-period is a day, a week, or a multiple
of a week, the number of full unit-periods and the remaining fraction of a unit-period shall be determined
by dividing the number of days between the 2 given
dates by the number of days per unit-period. If the
unit-period is a day, the number of unit-periods per
year shall be 365. If the unit-period is a week or a multiple of a week, the number of unit-periods per year
shall be 52 divided by the number of weeks per unitperiod.
(5) If the unit-period is a year, the number of full
unit-periods between 2 dates shall be the number of
full years (each equal to 12 months) measured back
from the later date. The remaining fraction of a unitperiod shall be
(a) The remaining number of months divided by 12 if
the remaining interval is equal to a whole number of
months, or
(b) The remaining number of days divided by 365 if
the remaining interval is not equal to a whole number
of months.
(6) In a single advance, single payment transaction
in which the term is less than a year and is equal to a
whole number of months, the number of unit-periods
in the term shall be 1, and the number of unit-periods
54
Federal Reserve Bulletin • January 1980
per year shall be 12 divided by the number of months
in the term.
(7) In a single advance, single payment transaction
in which the term is less than a year and is not equal to
a whole number of months, the number of unit-periods
in the term shall be 1, and the number of unit-periods
per year shall be 365 divided by the number of days in
the term.
(F) Percentage rate for a fraction of a unit-period.
The percentage rate of finance charge for a fraction
(less than 1) of a unit-period shall be equal to such fraction multiplied by the percentage rate of finance charge
per unit-period.
(G) Symbols. The symbols used to express the terms
of a transaction in the equation set forth in Section II
(H) are defined as follows:
Ak = The amount of the kth advance.
qk = The number of full unit-periods from the
beginning of the term of the transaction to
the kth advance.
ek = The fraction of a unit-period in the time
interval from the beginning of the term of
the transaction to the kth advance,
m = The number of advances.
Pj = The amount of the jth payment.
tj = The number of full unit-periods from the beginning of the term of the transaction to the jth
payment.
fj = The fraction of a unit-period in the time interval
from the beginning of the term of the transaction to the jth payment.
(H) General equation. The following equation sets
forth the relationship among the terms of a transaction:
AI
i = The percentage rate of finance charge per unitperiod, expressed as a decimal equivalent.
AA
(1 + e2i)(l + i)q2
Atr
(1 + emi)(l + i)qm
Pi
(1 + fii)(l 4- i)ll
P2
(1 + f2i)(l + i)'2
Pn
(1 + f n i)(l + i)*n
(I) Solution of general equation by iteration process. The general equation in Section II (H), when applied to a simple transaction in which a loan of $1000 is
repaid by 36 monthly payments of $33.61 each, takes
the special form:
A =
33.61 a36
(1 + 0
Step 1: Let = estimated annual
percentage rate =
Evaluate expression for A,
letting i = I1/(100w) =
Result (referred to as A') =
Step 2: Let I2 = Ii + . 1 =
Evaluate expression for A,
letting i = Ig/OOOw) =
Result (referred to as A") =
12.50%
.010416667
1004.674391
12.60%
.010500000
1003.235366
Step 3: Interpolate for I (annual percentage rate):
I = I t + .1
n = The number of payments.
^
(1 + ei i)(l + i)Qi
(A- AT
L(A" - A')J
= 12.50 + .1
(1000.000000 - 1004.674391)
L(1003.235366 - 1004.674391)
= 12.82483042%
Symbols used in the examples shown in this supplement are defined as follows:
a x = The present value of 1 per unit-period for x
unit-periods, first payment due immediately.
= 1+
1
(1 + 0
1
(1 + 0 2
1
(1 + i ) x " 1
w = The number of unit-periods per year.
I
= wi x 100 = The nominal annual percentage
rate.
Step 4: First iteration, let i! = 12.82483042% and repeat
Steps 1,2, and 3 obtaining a new I = 12.82557859%
Second iteration, let i! = 12.82557859% and repeat
Steps 1,2, and 3 obtaining a new I = 12.82557529%
In this case, no further iterations are required to obtain the annual percentage rate correct to two decimal
places, 12.83%.
When the iteration approach is used, it is expected
that calculators or computers will be programmed to
Legal Developments
carry all available decimals throughout the calculation
and that enough iterations will be performed to make
virtually certain that the annual percentage rate obtained, when rounded to two decimals, is correct.
Annual percentage rates in the examples below were
obtained by using a 10 digit programmable calculator
and the iteration procedure described above.
III. Examples for the Actuarial Method
(A) Single advance transaction, with or without an
odd first period, and otherwise regular. The general
equation in Section II (H) can be put in the following
special form for this type of transaction:
A =
1
(Pa„)
(i + fi)d + i y
Example (A)(1): Monthly payments (regular first period)
Amount advanced (A) = $5000. Payment (P) =
$230.
Number of payments (n) = 24.
Unit-period = 1 month. Unit-periods per year (w) =
12.
Advance, 1-10-78. First payment, 2-10-78.
From 1-10-78 through 2-10-78 = 1 unit-period, (t =
1; f = 0)
Annual percentage rate (I) = wi = .0969 = 9.69%
Example (A)(2): Monthly payments (long first period)
Amount advanced (A) = $6000. Payment (P) =
$200.
Number of payments (n) = 36.
Unit-period = 1 month. Unit-periods per year (w) =
12.
Advance, 2-10-78. First payment, 4-1-78.
From 3-1-78 through 4-1-78 = 1 unit-period (t = 1)
From 2-10-78 through 3-1-78 = 19 days, (f = 19/30)
Annual percentage rate (I) = wi = .1182 = 11.82%
Example (A)(3): Semimonthly payments (short first period)
Amount advanced (A) = $5000. Payment (P) =
$219.17.
Number of payments (n) = 24.
Unit-period = 1/2 month. Unit-periods per year
(w) = 24.
Advance, 2-23-78. First payment, 3-1-78. Payments
made on 1st and 16th of each month.
From 2-23-78 through 3-1-78 = 6 days, (t = 0; f =
6/15)
Annual percentage rate (I) = wi = .1034 = 10.34%
55
Example (A)(4): Quarterly payments (long first period)
Amount advanced (A) = $10,000. Payment (P) =
$385.
Number of payments (n) = 40.
Unit-period = 3 months. Unit-periods per year
(w) = 4.
Advance, 5-23-78. First payment, 10-1-78.
From 7-1-78 through 10-1-78 = 1 unit-period, (t = 1)
From 6-1-78 through 7-1-78 = 1 month = 30 days.
From 5-23-78 through 6-1-78 = 9 days, (f = 39/90)
Annual percentage rate (I) = wi = .0897 = 8.97%
Example (A)(5): Weekly payments (long first period)
Amount advanced (A) = $500. Payment (P) =
$17.60.
Number of payments (n) = 30.
Unit-period = 1 week. Unit-periods per year (w) =
52.
Advance, 3-20-78. First payment, 4-21-78.
From 3-24-78 through 4-21-78 = 4 unit-periods, (t =
4)
From 3-20-78 through 3-24-78 = 4 days, (f = 4/7)
Annual percentage rate (I) = wi = . 1496 = 14.96%
(B) Single advance transaction, with an odd first
payment, with or without an odd first period, and otherwise regular. The general equation in Section II (H)
can be put in the following special form for this type of
transaction:
A =
1
(l + 10(1 + if
Pi +
Pan-i
(1 + i )
Example (B)(1): Monthly payments (regular first period and irregular first payment)
Amount advanced (A) = $5000. First payment (Px)
= $250.
Regular payment (P) = $230. Number of payments
(n) = 24.
Unit-period = 1 month. Unit-periods per year (w) =
12.
Advance, 1-10-78. First payment, 2-10-78.
From 1-10-78 through 2-10-78 = 1 unit-period, (t =
l ; f = 0)
Annual percentage rate (I) = wi = .1008 = 10.08%
Example (B)(2): Payments every 4 weeks (long first period and irregular first payment)
Amount advanced (A) = $400. First payment (Pi) =
$39.50
Regular payment (P) = $38.31. Number of payments
(n) = 12.
56
Federal Reserve Bulletin • January 1980
Unit-period = 4 weeks. Unit-periods per year (2) =
52/4 = 13.
Advance, 3-18-78. First payment, 4-20-78.
From 3-23-78 through 4-20-78 = 1 unit-period, (t =
1)
From 3-18-78 through 3-23-78 = 5 days, (f = 5/28)
Annual percentage rate (I) = wi = .2850 = 28.50%
(C) Single advance transaction, with an odd final
payment, with or without an odd first period, and otherwise regular. The general equation in Section II (H)
can be put in the following special form for this type of
transaction:
A =
1
Pn
Pa„.,+
(1 + i)n"
(i + fi)d + i y
Example (C)(1): Monthly payments (regular first period and irregular final payment).
Amount advanced (A) = $5000. Regular payment
(P) = $230.
Final payment (P„) = $280. Number of payments (n)
= 24.
Unit-period = 1 month. Unit-periods per year (w) =
12.
Advance, 1-10-78. First payment, 2-10-78.
From 1-10-78 through 2-10-78 = 1 unit-period, (t =
1; f = 0)
Annual percentage rate (I) = wi = .1050 = 10.50%
Example (C)(2): Payments every 2 weeks (short first
period and irregular final payment)
Amount advanced (A) = $200. Regular payment (P)
= $9.50.
Final payment (Pn) = $30. Number of payment (n) =
20.
_
Unit-period = 2 weeks. Unit-periods per year (w) =
52/2 = 26.
Advance, 4-3-78. First payment, 4-11-78.
From 4-3-78 through 4-11-78 = 8 days, (t = 0; f = 8/
14)
Annual percentage rate (I) = wi = .1222 = 12.22%
Amount advanced (A) = $5000. First payment (Pi)
= $250.
Regular payment (P) = $230. Final payment (Pn) =
$280.
Number of payments (n) = 24. Unit-period = 1
month.
Unit-periods per year (w) = 12.
Advance, 1-10-78. First payment, 2-10-78.
From 1-10-78 through 2-10-78 = 1 unit-period, (t =
l;f =0)
Annual percentage rate (I) = wi = .1090 = 10.90%
Example (D)(2): Payments every two months (short
first period, irregular first payment, and irregular final payment)
Amount advanced (A) = $8000. First payment (Pi)
= $449.36.
Regular payment (P) = $465. Final payment (Pn) =
$200.
Number of payments (n) = 20. Unit-period = 2
months.
Unit-periods per year (w) = 12/2 = 6.
Advance, 1-10-78. First payment, 3-1-78.
From 2-1-78 through 3-1-78 = 1 month. From 1-1078 through 2-1-78 = 22 days, (t = 0; f = 52/60)
Annual percentage rate (I) = wi = .0730 = 7.30%
(E) Single advance, single payment transaction.
The general equation in Section II (H) can be put in the
special forms below for single advance, single payment transactions. Forms 1 through 3 are for the direct
determination of the annual percentage rate under special conditions. Form 4 requires the use of the iteration
procedure of Section II (I) and can be used for all
single advance, single payment transactions regardless
of term.
Form I—Term less than 1 year:
CM
I = lOOw I ~
Form 2—Term more than 1 year but less than 2 years:
(i + 0 2
(D) Single advance transaction, with an odd first
payment, odd final payment, with or without an odd
first period, and otherwise regular. The general equation in Section II (H) can be put in the following special form for this type of transaction:
1
Pa„.
A =
Pi +
(1 + i )
(i + fi)d + i y
Example (D)(1): Monthly payments (regular first period, irregular first payment, and irregular final payment)
4 f
(x~
1
1/2
" (1 + f)
Form 3—Term equal to exactly a year or exact multiple of a year:
I = 100
Pn
(1 +i) n -
+
(If -
Form 4—Special form for iteration procedure (no restriction on term):
p
A =
(i + fi)d + i y
Legal Developments
Example (E)(1): Single advance, single payment (term
of less than 1 year, measured in days)
Amount advanced (A) = $1000. Payment (P) =
$1080.
Unit-period = 255 days. Unit-period per year (w) =
365/255.
Advance, 1-3-78. Payment, 9-15-78.
From 1-3-78 through 9-15-78 = 255 days, (t = 1; f =
0)
Annual percentage rate (I) = wi = .1145 = 11.45%.
(Use Form 1 or 4.)
Example (E)(2): Single advance, single payment (term
of less than 1 year, measured in exact calendar
months)
Amount advanced (A) = $1000. Payment (P) =
$1044.
Unit-period = 6 months. Unit-periods per year (w)
57
A loan of $2135 is advanced on 1-25-78. It is to be
repaid by 24 payments of $100 each. Payments are
due every 4 weeks beginning 2-20-78. However, in
those months in which 2 payments would be due,
only the first of the two payments is made and the
following payment is delayed by 2 weeks to place it
in the next month.
Unit-period = 4 weeks. Unit periods per year (w) =
52/4 = 13.
First series of payments begins 26 days after
1-25-78. (U = 0; f j = 26/28)
Second series of payments begins 9 unit-periods
plus 2 weeks after 2-20-78. (t2 = 10; f 2 = 12/28)
Third series of payments begins 6 unit-periods plus 2
weeks after start of second series. (t3 = 16; f 3 = 26/
28)
= 2.
Advance, 7-15-78. Payment, 1-15-79.
From 7-15-78 through 1-15-79 = 6 mos. (t = 1; f = 0)
Annual percentage rate (I) = wi = .0880 = 8.80%.
(Use Form 1 or 4.)
Example (E)(3): Single advance, single payment (term
of more than 1 year but less than 2 years, fraction
measured in exact months)
Amount advanced (A) = $1000. Payment (P) =
$1135.19.
Unit-period = 1 year. Unit-periods per year (w) = 1.
Advance, 7-17-78. Payment, 1-17-80.
From 1-17-79 through 1-17-80 = 1 unit period, (t = 1)
From 7-17-78 through 1-17-79 = 6 mos. (f = 6/12)
Annual percentage rate (I) = wi = .0876 = 8.76%.
(Use Form 2 or 4.)
Example (E)(4): Single advance, single payment (term
of exactly 2 years)
Amount advanced (A) = $1000. Payment (P) =
$1240.
Unit-period = 1 year. Unit-periods per year (w) = 1.
Advance, 1-3-78. Payment, 1-3-80.
From 1-3-78 through 1-3-79 = 1 unit-period, (t = 2; f
= 0)
Annual percentage rate (I) = wi = .1136 = 11.36%.
(Use Form 3 or 4.)
(F) Complex single advance transaction.
Example (F)(l): Skipped payment loan (payments
every 4 weeks)
Last series of payments begins 6 unit-periods plus 2
weeks after start of third series. (t4 = 23; U = 12/28)
The general equation in Section II (H) can be written
in the special form:
2135
100 ike
= „
+
(1 + (26/28)i) (1 + (12/28)i)(l + i)10
100 ae
^
100 a3
(1 + (26/28)i)(l + i)16
(1 + (12/28)0(1 + i)23
Annual percentage rate (I) = wi = .1200 = 12.00%
Example (F)(2): Skipped payment loan plus single payments
A loan of $7350 on 3-3-78 is to be repaid by 3
monthly payments of $1000 each beginning 9-15-78,
plus a single payment of $2000 on 3-15-79, plus 3
more monthly payments of $750 each beginning 915-79, plus a final payment of $1000 on 2-1-80.
Unit-period = 1 month. Unit-periods per year (w) =
12.
First series of payments begins 6 unit-periods plus
12 days after 3-3-78. (U = 6; f, = 12/30)
Second series of payments (single payment) occurs
12 unit-periods plus 12 days after 3-3-78. (t2 = 12;
f 2 = 12/30)
Third series of payments begins 18 unit-periods plus
12 days after 3-3-78 (t3 = 18; f 3 = 12/30)
58
Federal Reserve Bulletin • January 1980
Final payment occurs 22 unit-periods plus 29 days after 3-3-78. (t4 = 22; f 4 = 29/30)
The general equation in Section II (H) can be written
in the special form:
1000 a3
7350 =
(1 + (12/30)i)(l + i)6
Example (G)(1): Construction loan
Three advances of $20,000 each are made on 4-1079, 6-12-79, and 9-18-79. Repayment is by 240
monthly payments of $612.36 each beginning 12-1079.
Unit-period = 1 month. Unit-periods per year (w) =
12.
2000
12
(1 + (12/30)i)(l + i)
750 a3
(1 + (12/30)i)(l + i)18
1000
(1 + (29/30)i)(l + i)22
From 4-10-79 through 6-12-79 = (2 + 2/30) unit-periods.
From 4-10-79 through 9-18-79 = (5 + 8/30) unit-periods.
From 4-10-79 through 12-10-79 = (8) unit-periods.
Annual percentage rate (I) = wi = .1022 = 10.22%
Example (F)(3): Mortgage with varying payments
A loan of $39,688.56 (net) on 4-10-78 is to be repaid
by 360 monthly payments beginning 6-1-78. Payments are the same for 12 months at a time as follows:
Monthly
Year payment
1
2
3
4
5
6
7
8
9
10
$291.81
300.18
308.78
317.61
326.65
335.92
345.42
355.15
365.12
375.33
Monthly
Year payment
11
12
13
14
15
16
17
18
19
20
The general equation in Section II (H) is changed to
the single advance mode by treating the 2nd and 3rd
advances as negative payments:
20,000 =
20,000
(1 + (2/30)0(1 + 0 2
Monthly
Year payment
$385.76
385.42
385.03
384.62
384.17
383.67
383.13
382.54
381.90
381.20
21
22
23
24
25
26
27
28
29
30
$380.43
379.60
378.68
377.69
376.60
375.42
374.13
372.72
371.18
369.50
Unit-period = 1 month. Unit-periods per year (w) =
12.
612.36 a24o
(1 + i)8
20,000
(1 + (8/30)0(1 + 0 5
Annual percentage rate (I) = wi = .1025 = 10.25%
Example (G)(2): Student loan
A student loan consists of 8 advances: $1800 on 9-578, 9-5-79, 9-5-80, and 9-5-81; plus $1000 on 1-5-79,
1-5-80, 1-5-81, and 1-5-82. The borrower is to make
50 monthly payments of $240 each beginning 7-1-78
(prior to first advance).
Unit-period = 1 month. Unit-periods per year (w) =
12.
From 5-1-78 through 6-1-78 = 1 unit-period, (t = 1)
From 4-10-78 through 5-1-78 = 21 days, (f = 21/30)
The general equation in Section II (H) can be written
in the special form:
a i2
39,688.56 =
(1 + (21/30)0(1 + i)
_
_
300.18
308.78 ^
369.50
(1 + i)348
Annual percentage rate (I) = wi = .0980 = 9.80%.
(G) Multiple advance transactions.
Zero point is date of first payment since it precedes
first advance.
From
From
From
From
From
From
From
From
7-1-78 to 9-5-78
7-1-78 to 9-5-79
7-1-78 to 9-5-80
7-1-78 to 9-5-81
7-1-78 to 1-5-79
7-1-78 to 1-5-80
7-1-78 to 1-5-81
7-1-78 to 1-5-82
(2 + 4/30) unit-periods.
(14 4- 4/30) unit-periods.
(26 + 4/30) unit-periods.
(38 + 4/30) unit-periods.
(6 + 4/30) unit-periods.
(18 + 4/30) unit-periods.
(30 + 4/30) unit-periods.
(42 + 4/30) unit-periods.
Since the zero point is date of first payment, the general equation in Section II (H) is written in the single
advance form below by treating the first payment as
Legal Developments
a negative advance and the 8 advances as negative
payments:
- 240 =
240 349 _
1800
(1 + i)
(1 + (4/30)i)
14 +
(1 + i)
26 +
(1 + i)
1
31
(1 + i)
L (1 + i)
(1 + 0
18
110 a12
(1 + i)
11000
000
=
1 1 0
(1 + i)
-
2 4 0
(1 + i)12
Annual percentage rate (I) = wi = .1779 = 17.79%
1
1
1
6
240
(1 + i)12
or for iteration solution as:
(1 + i)2
1
1000
(1 + (4/30)1)
1
1000 +
59
(1 + 0
30
(1 + 042J
BANK HOLDING
COMPANY
AND BANK MERGER
ORDERS
ISSUED BY THE BOARD OF GOVERNORS
Annual percentage rate (I) = wi = .3204 = 32.04%
(H) Transaction involving required deposit balance.
Example (H)(1): Required constant deposit balance
Creditor advances $1000 on 4-12-79 and requires
borrower to maintain a deposit balance of $200
throughout the 12 month loan. The loan is to be repaid by 12 equal monthly payments of $90 each beginning 5-12-79. The deposit balance will be released
on 4-12-80.
Unit-period = 1 month. Unit-periods per year (w) =
12.
From 4-12-79 through 5-12-79 = 1 unit-period.
From 4-12-79 through 4-12-80 = 12 unit-periods.
The general equation in Section II (H) can be written
as:
800 +
200
90 a12
(1 + i)
(1 + i)12
or for iteration solution as:
onn_
800
90a 12
-(TTo
200
(1 + i)12
Annual percentage rate (I) = wi = .2223 = 22.23%
Example (H)(2): Required periodic deposits into a restricted account
Creditor advances $1000 on 6-15-79. Borrower is required to make 12 monthly payments of $110 each
beginning 7-15-79, of which $20 is to be deposited
into an account. The account will be released to the
borrower at time of final payment on 6-15-80.
Unit-period = 1 month. Unit-periods per year (2) =
12.
From 6-15-79 through 7-15-79 = 1 unit-period.
The general equation in Section II (H) can be written
as:
Orders Under Section 3
of Bank Holding Company Act
Aspen Bancorp, Inc.,
Aspen, Colorado
Order Approving
Formation of Bank Holding Company
Aspen Bancorp, Inc., Aspen, Colorado, has applied
for the Board's approval under section 3(a)(1) of the
Bank Holding Company Act (12 U.S.C. § 1842(a)(1)),
to form a bank holding company by acquiring 100 percent (less directors' qualifying shares) of the voting
shares of The Bank of Aspen ("Bank"), Aspen, Colorado.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant is a nonoperating corporation organized
for the purpose of becoming a bank holding company
through the acquisition of Bank. Bank is the 55th largest of 299 banks in Colorado, holding approximately
.36 percent of the total commercial bank deposits in
the state.1
Upon acquisition of Bank, Applicant would control
the largest of four banks operating in the relevant market,2 which holds deposits of $39.9 million, representing 46.4 percent of the total deposits in commercial
banks in the market. The proposed acquisition of Bank
represents a reorganization of Bank's ownership into
corporate form. Since none of applicant's principals is
associated with other banking organizations within the
1. All banking data are as of December 31, 1978.
2. The relevant market is the Upper Roaring Fork River Valley
banking market, which is defined as Pitkin County and the portion of
Eagle County immediately adjacent thereto, including the town of Basalt, Colorado.
60
Federal Reserve Bulletin • January 1980
market, and in view of Bank's size, it appears that consummation of the proposal would not have any significant adverse effects on competition or increase the
concentration of banking resources in any relevant
area. Accordingly, the Board concludes that competitive considerations are consistent with approval of
the application.
The financial and managerial resources of Applicant
and Bank are considered to be satisfactory, and their
future prospects appear favorable. While Applicant
will incur debt in connection with the proposal, it appears that Applicant will be able to service the debt
without adversely affecting the financial condition of
Bank, particularly in light of commitments made by
Applicant and its principals to ensure that an adequate
level of capital is maintained in Bank. Notwithstanding
that Bank's capital is and will remain at an adequate
level, the Board notes a large dividend will be immediately extracted from Bank to reduce the acquisition
debt. Despite its approval of this application, the
Board does not intend to encourage dividends of this
kind. On balance, banking factors are consistent with
approval of the application.
Although consummation of the proposed transaction would effect no changes in the services offered by
Bank, considerations relating to the convenience and
needs of the community to be served are consistent
with approval. Accordingly, it is the Board's judgment
that consummation of the proposal would be consistent with the public interest and that the application
should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made before the thirtieth calendar
day following the effective date of this Order or later
than three months after the effective date of this Order, unless such period is extended for good cause by
the Board, or by the Federal Reserve Bank of Kansas
City pursuant to delegated authority.
By order of the Board of Governors, effective December 21, 1979.
Voting for this action: Vice Chairman Schultz and Governors Wallich, Coldwell, Partee, Teeters, and Rice. Absent
and not voting: Chairman Volcker.
(Signed)
[SEAL]
Deputy
GRIFFITH L . GARWOOD,
Secretary
of the
Board.
Central Bancompany,
Jefferson City, Missouri
Order
Approving
Acquisition of Bank
Central Bancompany, Jefferson City, Missouri, a bank
holding company within the meaning of the Bank
Holding Company Act, has applied for the Board's approval under section 3(a)(3) of the Act (12 U.S.C. §
1842(a)(3)) to acquire 90 percent or more of the voting
shares of City Bank and Trust Company ("Bank"),
Moberly, Missouri.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act
(12 U.S.C. § 1842(b)). The time for filing comments and
views has expired, and the application and all comments received have been considered in light of the
factors set forth in section 3(c) of the Act (12 U.S.C. §
1842(c)).
Applicant, the eighth largest banking organization in
Missouri, controls five banks with aggregate deposits
of approximately $445.9 million, representing 1.9 percent of total deposits in commercial banks in the
state.1 Acquisition of Bank, with deposits of $52.6 million, would increase Applicant's share of commercial
bank deposits in Missouri by approximately 0.2 percent and would not result in a significant increase in
the concentration of banking resources in Missouri.
Bank is the largest of five banking organizations in
the Moberly banking market, controlling 47.8 percent
of the total commercial bank deposits in the market.2
Although none of the banks in the Moberly banking
market is a subsidiary of Applicant, a senior officer of
Applicant is the majority stockholder of Bank of Cairo
("Cairo"), Cairo, Missouri, the fourth largest bank in
the market.3 Cairo holds total deposits of $7.7 million,
representing 7.0 percent of the total deposits in the
market. Bank and Cairo would together control 54.8
percent of the market deposits. In view of this association with Cairo, Applicant's acquisition of Bank would
entail the elimination of significant competition. However, Cairo is not a subsidiary of Applicant and there is
no evidence in the record to show that Applicant's officer in the past has acted on Applicant's behalf in his
management of Cairo. Moreover, Applicant has indicated its willingness to sever its relationship with
Cairo and in the meantime to insulate the senior officer
associated with Cairo from any management decisions
affecting the Moberly market. Under the circumstances the Board is satisfied that this acquisition will
eliminate no significant existing competition, provided
the separation from Cairo is accomplished promptly.
In addition, the proposal would not eliminate significant probable future competition because the market
does not appear especially attractive to de novo entry.
Thus, in light of the above and other facts of record, it
1. All banking data are as of December 30, 1978.
2. The Moberly banking market is approximated by Randolf County, Missouri.
3. Cairo is approximately six road miles north of Bank, but it has
recently received permission to relocate its main office to Moberly.
Legal Developments
is the Board's judgment that the overall competitive
effects of the proposal are consistent with approval on
the condition that the relationship between Applicant
and Cairo will be completely terminated as soon as
practicable but in no event later than one year after
Applicant acquires Bank and that until that has been
accomplished and the Board's General Counsel is satisfied that the separation is complete and effective, Applicant will fully insulate Cairo's principal from any
management decisions, considerations, planning, activities, operations, and functions of Applicant and its
subsidiaries in the Moberly banking market.
The financial and managerial resources and future
prospects of Applicant, its subsidiary banks and Bank
are regarded as generally satisfactory. Thus, considerations relating to banking factors are consistent with
approval of the application. Affiliation with Applicant
will enable Bank to draw upon Applicant's expertise
and to introduce new and improved services to its customers, including expanded banking hours and automated teller machines. Thus, considerations relating
to the convenience and needs of the community to be
served lend weight toward approval. Accordingly, it is
the Board's judgment that the proposed acquisition
would be consistent with the public interest and that
application should be approved subject to the conditions recited in this Order.
On the basis of the record, the application is approved for the reasons summarized and subject to the
conditions specified above. The transaction shall not
be made before the thirtieth calendar day following the
effective date of this Order, or later than three months
after the effective date of this Order unless such period
is extended for good cause by the Board, or by the
Federal Reserve Bank of St. Louis pursuant to delegated authority.
By order of the Board of Governors, effective December 4, 1979.
Voting for this action: Chairman Volcker and Governors
Schultz, Coldwell, Partee, Teeters, and Rice. Absent and not
voting: Governor Wallich.
(Signed)
[SEAL]
WILLIAM
Assistant
N.
Secretary
MCDONOUGH,
of the
Board.
United Bank Corporation of New York,
Albany, New York
Order Denying
Acquisition of Bank
United Bank Corporation of New York, Albany, New
York, a bank holding company within the meaning of
the Bank Holding Company Act ("Act"), has applied
61
for the Board's approval under section 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire all the voting
shares of the successor by merger to The Schenectady
Trust Company ("Bank"), Schenectady, New York.1
The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition
of the voting shares of Bank.2 Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the
shares of Bank.
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received, including those of the Department
of Justice, in light of the factors set forth in section 3(c)
of the Act (12 U.S.C. § 1842(c)).
Applicant is the sixteenth largest banking organization in the State of New York, controlling four subsidiary banks with aggregate deposits of $1.5 billion, representing 1.1 percent of total commercial bank
deposits in the state.3 Acquisition of Bank, which
holds deposits of $173 million, would increase Applicant's share of statewide commercial bank deposits by
approximately 0.1 percent and would not alter Applicant's ranking among other commercial banking organizations in New York. Accordingly, consummation
of this proposal would not significantly increase the
concentration of commercial banking resources in the
state.
Bank, the third largest banking organization in the
Albany banking market, the relevant market for competitive analysis, holds approximately $163 million in
deposits,4 representating 11.5 percent of market deposits.5 Applicant, through its lead bank, State Bank
of Albany ("SBA"), Albany, New York, is the second
largest banking organization in the market with $659
million in total deposits and $222 million in market IPC
deposits, and controls 15.7 percent of commercial
bank deposits in the market. Acquisition of Bank
would cause Applicant to become the largest banking
1. By order dated October 3, 1978, the Board denied a previous
application by Applicant to acquire Bank (64 FEDERAL RESERVE BULLETIN 894 (1978)). Applicant has filed this application based on data
not previously submitted to the Board.
2. In conjunction with this application, Applicant has requested prior approval to merge 320 State Street Bank, Schenectady, New York,
with The Schenectady Trust Company, Schenectady, New York, under the charter of the former and with the title of The Schenectady
Trust Company, pursuant to section 18(c) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(c).
3. All banking data are as of June 30, 1978.
4. Market deposit data refer only to deposits of individuals, partnerships and corporations ("IPC deposits").
5. The Albany banking market is composed of Albany, Schenectady, and Rensselaer Counties and the towns of Clifton Park, Halfmoon, Waterford, Malta, Stillwater, Mechanicville, Ballston, Charlton, Galway, and Milton in Saratoga County. Applicant disputes this
A 62
Federal Reserve Bulletin • January 1980
organization in the market, and would increase its
share of market deposits to 27.2 percent. This affiliation of the second and third largest organizations
would increase the percentage of IPC deposits held by
the three largest banking organizations in the market
from 50.3 percent to 59.1 percent, and would increase
the four-firm concentration ratio from 59.1 percent to
approximately 66.8 percent. The Board views such
substantial increases in the concentration of banking
resources in this market as having a seriously adverse
effect on competition. Applicant, as noted above, already has a significant presence in the Albany banking
market through its lead bank which is a large and wellmanaged organization, capable of marketing its services throughout the entire geographic market. The
facts of record indicate that acquisition of Bank by Applicant would eliminate substantial existing competition between SBA and Bank. Moreover, it appears
that consummation of the proposal would eliminate
the prospects for an intensification of competition in
market definition and contends that there exists a separate Schnenectady banking market distinct from the Albany banking market thereby
mitigating significantly the anticompetitive effects of the subject proposal. In support of this contention, Applicant has submitted new
data, including survey data on commuting, shopping, and advertising
patterns, banking practices, and data on other economic factors in
Albany and Schenectady Counties. However, after reviewing Applicant's submissions and all the facts of record, the Board believes that
the data do not support a finding that Albany and Schenectady are
located in different banking markets.
Data for individual census tracts in the Albany-Schenectady-Troy
SMSA show that in 1970 commutation into Schenectady County accounted for 30 percent of the County's work force, which is twice the
average commutation into the 52 counties in upstate New York. In
addition, 24 percent of the employed residents of Schenectady County
worked outside Schenectady County, with 19 percent commuting to
Albany County alone. Even considering only those portions of Albany
and Schenectady Counties which are within the service area of Bank,
15.3 percent of the employed residents commuted into the City of Albany. Hence, Schenectady County appeared as of 1970 not to be an
isolated community.
Data based upon a survey conductd for Applicant in December 1978
indicate that these commuting patterns have become even more pronounced since 1970. Seventy-three percent of full-time workers in responding Schenectady County households were found to work in that
County, while 21 percent commuted to Albany County. However, the
data show that most residents of Schenectady County tend to bank
and shop within the County and read Schenectady newspapers. A
sample of 38 Schenectady businesses also shows that 34 of the 38 patronized only Schenectady County banks.
The Board is of the opinion that these data do not present a compelling case for defining separate Albany and Schenectady banking
markets. First, the commutation data indicate that a substantial body
of Schenectady residents can practicably turn for supplies of banking
services to firms in either Albany or Schenectady Counties, and hence
transmit competitive developments in one part of the market to another. Second, the banking data show that these consumers take advantage of their options since 7 percent of Schenectady residents primarily use a banking office in Albany County and 12 percent do some
banking in Albany. Of the 38 Schenectady County businesses surveyed, 34 banked exclusively with Schenectady banks but this figure
includes Schenectady offices of banks headquartered in Albany or
elsewhere. After review of the entire record in this matter, the Board
is of the view that the proper geographic market in which to examine
the competitive effects of the proposal is the Albany banking market
as defined above.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
the future between SBA and Bank. Consummation of
the transaction would also remove Bank as a potential
entry vehicle for bank holding companies not currently
represented in the market. For these reasons and
based on other facts of record, the Board concludes
that consummation of this proposal would have substantially adverse effects on competition.
In its review of the entire record on this matter the
Board considered the comments submitted by the
United States Department of Justice, in which the Justice Department concludes that the proposed acquisition would have significantly adverse effects on competition. In reaching this conclusion, the Justice
Department found that consummation of the proposal
would increase the concentration of banking resources
in the market, eliminate the potential for increased
competition in the future between SBA and Bank, and
would foreclose the acquisition of Bank by a bank
holding company not now in the market. The Justice
Department also finds that although New York thrift
institutions do have somewhat expanded powers,
commercial banking remains the appropriate line of
commerce for analyzing the competitive effects of the
proposal. In addition, the Department does not believe
that the relatively small presence in the Albany market
of large New York City based holding companies significantly reduces the anticompetitive effects of the
proposal.
Applicant, as it did in its previous application to acquire Bank, contends that the competition afforded by
thrift institutions in New York must be considered in
analyzing the competitive effects of this proposal. Applicant believes that thrift institutions in New York, in
light of their powers and the services they may offer,
should now be considered in the same product line
with commercial banks. In support of this contention
Applicant points to such factors as recent legislative
changes, including the granting to New York depository institutions the power to offer NOW accounts and
the prohibition of management official interlocks between most depository institutions in a locality. Applicant states that such legislation demonstrates Congress' recognition that competition exists among many
types of financial institutions. Alternatively, Applicant
suggests that the share of market deposits held by Applicant and Bank should be "shaded" downward to
account for the direct competition between thrift institutions and commercial banks in certain product lines,
and for competition from large out-of-market-based
organizations whose small market shares do not adequately reflect their competitive influence in the relevant banking market.
As noted in its previous Order, the Board has recognized that the presence in a market of large thrift institutions with expanded powers can be taken into consideration in analyzing the competitive effects of a
Legal Developments
particular proposal.6 The Board notes that thrift institutions in New York have been granted expanded
powers, including the ability to offer demand deposit
accounts with credit lines in amounts up to $1,000, and
that thrift institutions and commercial banks do compete in the marketing of individual products and services, such as mortgage lending and demand deposit
services. However, the Board continues to be of the
view that thrift institutions in New York do not yet
offer the broad range of products and services that,
taken together, constitute commercial banking as a
distinct line of commerce.
The Supreme Court has consistently rejected the argument that thrift institutions compete with commercial banks in the same line of commerce. The Supreme Court has held that it is the unique cluster of
products and services that commercial banks offer that
distinguishes them from all other types of financial institutions.7 As the Supreme Court has recognized, and
as the Board is aware, this is a situation subject to
change. In the future, as the differences between commercial banks and thrift institutions become less distinct, the clustering of products and services that commercial banks alone now offer may no longer
distinguish commercial banking as a separate line of
commerce. However, the Board is of the opinion that
the point has yet been reached in New York whereby
commercial banks and thrift institutions may be
grouped together for purposes of competitive analysis.
The view that commercial banking is a separate line of
commerce retains economic validity for a significant
number of customers, especially smaller commercial
enterprises, particularly since commercial banks alone
may offer a business enterprise a full range of financial
services. With respect to the subject proposal, the
Board believes that New York thrift institutions do not
compete with commercial banks over a broad range of
commercial financial services,8 and that commercial
banking is the appropriate product line in which to analyze the competitive effects of the subject acquisition.9
6 . S e e , e.g.,
Northeast
Bancorp.,
6 0 F E D E R A L RESERVE B U L L E T I N
375 (1974), and First Bancorp of N.H., Inc., 64 FEDERAL RESERVE
BULLETIN 967 (1978).
7. See United States v. Connecticut National Bank, 418 U.S. 656
(1974); United States v. Phillipsburg National Bank & Trust Company, 399 U.S. 350 (1970); and United States v. Philadelphia National
Bank, 374 U.S. 321 (1963);
8. The Board notes that the powers of New York thrift institutions
today do not differ significantly from the powers of Connecticut thrift
institutions at the time the Supreme Court last considered this issue, in
1974. It is the opinion of the Board that New York thrift institutions
are not yet "significant participants in the marketing of bank services
to commercial enterprises." United States v. Connecticut National
Bank, 418 U.S. 656, 666 (1974).
9. The Board notes that even if thrift institutions in the Albany market were included with commercial banks in the same line of commerce for competitive analysis purposes, consummation of the proposal would result in a serious elimination of existing competition.
63
With regard to the "shading" approach to market
shares proposed by Applicant, the Board considers
this a useful approach in evaluating various competitive influences within the market. However, the
Board does not believe that it is appropriate to take
such an approach where, as in this proposal, there are
involved two institutions of the size of SBA and Bank,
each with a significant share of market deposits. This
approach is more appropriately used in cases where
the elimination of competition is not as substantial as
in this proposal. With respect to this application, even
if the market shares were "shaded" to account for the
presence of thrift institutions and large out-Of-marketbased banking organizations, the Board is of the opinion that the proposal would still result in substantial
elimination of existing competition. Thus, having considered all of the facts of record in this application, the
Board concludes that consummation of the proposed
transaction would have substantially adverse effects
on competition in the Albany market.
The financial and managerial resources and future
prospects of Applicant, its subsidiaries, and Bank are
regarded as satisfactory and consistent with approval
of the application. Accordingly, banking factors are
consistent with approval of the subject application.
As noted in the Board's Order on the previous application, Applicant proposes to expand the range of
services presently offered by Bank. While certain benefits to the convenience and needs of the communities
to be served might result from Applicant's acquisition
of Bank, similar benefits could also result from entry
by less anticompetitive means. Therefore, although
considerations relating to the convenience and needs
of the community to be served lend some weight toward approval, they do not clearly outweigh the substantially anticompetitive effects that would result
from approval of the subject proposal.
On the basis of all relevant facts of record, it is the
Board's judgment that consummation of the proposed
transaction would not be in the public interest, and the
application should be and hereby is denied.10
By order of the Board of Governors, effective December 3, 1979.
Voting for this action: Governors Coldwell, Partee, Teeters, and Rice. Voting against this action: Governors Schultz
and Wallich. Present and not voting: Chairman Volcker.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary
of the
Board.
Under this analysis, the proposal represents a combination of the
eighth and eleventh largest organizations to become the third largest
organization in the market, while the market shares held by these two
organizations approach the standards in the Justice Department's
guidelines for challenging mergers between firms.
10. In view of the Board's action in this case, Applicant's proposals
to merge 320 State Street Bank with The Schenectady Trust Company
and for membership in the Federal Reserve System of 320 State Street
Bank are rendered moot.
A 64
Federal Reserve Bulletin • January 1980
Dissenting Statement of
Governors Schultz and Wallich
We do not agree with the majority that the acquisition
of The Schenectady Trust Company by United Bank
Corporation of New York would result in a substantial
elimination of existing competition and we would approve the application for the reasons stated below and
in the Dissenting Statement to the previous Board Order.1
We believe that the competition between commercial banks and thrift institutions in New York is
such that it significantly reduces the adverse competitive effects of the transaction. We are of the view
that the method of analysis adopted by the majority
discounts the intensity of the competition between
commercial banks and thrifts over a significant array
of banking products and services and overstates the
anticompetitive effects of the acquisition. Furthermore, it is our opinion that the Board has explicitly or
implicitly acknowledged in other contexts the blurring
of the distinctions between mutual savings banks and
commercial banks.
The share of nonbusiness demand deposits held by
thrift institutions in the Albany market has continued
to increase, growing to 14.8 percent by December
1978. In terms of number of accounts, the share of Albany market thrift institutions has risen from 7.4 percent in 1976 to 27.6 percent at year end 1978. The
shares of Bank and of Applicant's lead bank in the
growth of OPC deposits at commercial banks and mutual savings banks in the market was only 2.1 percent
for the period 1976-1977, 8.7 percent between 1977
and 1978, and 5.4 percent from 1976 to 1978, compared
to mutual savings banks' shares of 74.8 percent, 65.1
percent and 70.6 percent, respectively. These figures
reflect a continuing trend and the increasing strength
of thrift institutions in competing in a service traditionally offered only by commercial banks. Moreover, mutual savings banks control 42 percent of total IPC deposits in commercial banks and mutual savings banks
in New York State. These institutions have an even
more significant presence within the Albany banking
market with approximately 68 percent of total IPC deposits. Inclusion of savings bank deposits in the competitive analysis would reduce the combined market
shares of Applicant and Bank from 27.2 percent to 8.7
percent and we do not agree with the majority that this
combined market share represents a serious elimination of competition.
For the reasons set out in detail in the previous Dissenting Statement, we believe that thrift institutions
must be included in the competitive analysis to a much
greater extent than in the traditional product market
analysis applied by the majority of the Board in this
case. Moreover, the presence within the market of
several of the nation's largest banking organizations
indicates that the competitive effects of consummation
of the proposal are not as severe as the majority believes, since the competitive power of these organizations cannot be measured by their market shares
alone. Finally, it seems to us that the argument put
forward by Applicant that the Albany banking market
should be viewed separately from the Schenectady
market, while it cannot be altogether accepted, is not
entirely without merit. In light of the above, we are of
the view that consummation of the proposal would
have only slightly adverse effects on competition, and
that such effects are outweighed by the convenience
and needs considerations associated with this proposal.
Therefore, we would approve this application.
December 3, 1979
Orders Under Section 4 of
Bank Holding Company Act
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
Order
Approving
Acquisition of Telecheck
Inc.
Barnett Banks of Florida, Inc., Jacksonville, Florida,
a bank holding company within the meaning of the
Bank Holding Company Act ("Act"), has applied for
the Board's approval pursuant to section 4(c)(8) of the
Act (12 U.S.C. § 1843 (c)(8)) and section 225.4(b)(2) of
the Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to
acquire, through its wholly-owned subsidiary, Verifications, Inc., Jacksonville, Florida ("Verifications"), substantially all the assets of Telecheck
Atlanta, Inc., Bethesda, Maryland ("Telecheck Atlanta"), and thereby engage in the activity of check
verification, i.e., for a fee, authorizing acceptance by
subscribing merchants of certain personal checks
tendered by the merchant's customers in payment of
goods and services. In addition, Verifications will purchase a validly authorized check from the merchant in
the event it is subsequently dishonored. In considering
a previous application the Board determined that the
activity of providing check verification services as proposed by Applicant is closely related to banking and a
proper incident thereto. However, the Board stated in
that Order that proposals to engage in this activity
would be considered on a case-by-case basis.1
1.
1. 6 4 F E D E R A L RESERVE B U L L E T I N 8 9 6 ( 1 9 7 8 ) .
Atlanta,
Barnett/Verifications,
(1979).
65
FEDERAL
RESERVE
BULLETIN
263
Legal Developments
Notice of the application, affording opportunity for
interested persons to submit comments and views on
the public interest factors, has been duly published (44
Federal Register 33482 (1979)). The time for filing
comments and views has expired, and the Board has
considered the application and all comments received
in the light of the public interest factors set forth in
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)).
Applicant, the second largest banking organization
in Florida, controls 30 banks and eight nonbank subsidiaries with assets aggregating approximately $3.4
billion.2 Applicant engages in a variety of nonbank activities through its nonbank subsidiaries, including
trust functions, consumer and sales financing, insurance agency activities directly related to extensions of
credit made by Applicant's subsidiaries, and mortgage
banking activities.
Verifications proposes to purchase substantially all
the assets of Telecheck Atlanta, including that company's franchise agreement with Telecheck Services,
Inc., Honolulu, Hawaii ("Telecheck"), to provide
personal check verification services within certain
geographic areas. These activities would be performed
from an office of Verifications to be located in Tucker,
Dekalb County, Georgia. The geographic areas to be
served are Chambers County, Alabama; Aiken and
Edgefield Counties, South Carolina; and most of the
northern and central counties of the State of Georgia.
Verifications already performs check verification activities in Florida and in the Georgia and Alabama
counties that border Florida under a similar franchise
agreement with Telecheck.
In order to approve the subject application, the
Board must also find that Applicant's performance of
the activity through Verifications "can reasonably be
expected to produce benefits to the public, such as
greater convenience, increased competition, or gains
in efficiency, that outweigh possible adverse effects,
such as undue concentration of resources, decreased
or unfair competition, conflicts of interest, or unsound
banking practices." In its previous decision the Board
also recognized that permitting a bank holding company to engage in the activity could have some potentially unfair competitive effects or conflicts of interest.
However, the Board relied on Applicant's commitment that Verifications will verify checks drawn on
all banks and will comply with section 106 of the 1970
Amendments to the Act that prohibit certain tie-in arrangements. Moreover, in its previous decision the
Board concluded that performance of the activity as
proposed by Applicant was likely to produce significant benefits to the public, such as providing merchants with a convenient means of reducing bad check
2. All banking data are as of June 30, 1979.
65
losses, reducing mail-order sales operation losses, increasing acceptance of consumer checks, especially
out-of-state checks, and adding a new competitor to
the check authorization systems already in place. Inasmuch as the instant proposal merely represents the
expansion of Verifications into a new service area by
acquiring a relatively weak competitor in that service
area, the Board believes that consummation of the instant proposal, which is virtually identical to Applicant's previous application, is likely to produce similar
benefits to the public in the new service area. Moreover, the Board believes that no significant adverse effects, such as undue concentration of resources, unfair
competition, or conflicts of interest will result from
Applicant's performance of the Activity in this new
service area.
Based upon the foregoing and upon other considerations reflected in the record, the Board has determined that the balance of the public interest factors
that section 4(c)(8) of the Act requires the Board to
consider is favorable, and that the application should
be approved.3 Accordingly, the application is hereby
approved. Applicant shall cause Verifications to commence the proposed activity not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Federal
Reserve Bank of Atlanta pursuant to delegated authority. This determination is subject to the considerations
set forth in section 225.4(c) of the Board's Regulation
Y and to the Board's authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with, or to prevent
evasion of, the provisions and purposes of the Act and
the regulations and orders issued thereunder by the
Board.
By the order of the Board of Governors, effective
December 4, 1979.
Voting for this action: Chairman V o l c k e r and Governors
Coldwell, Partee, T e e t e r s , and Rice. Present and not voting:
Governor Schultz. A b s e n t and not voting: G o v e r n o r Wallich.
[SEAL]
(Signed) WILLIAM N . MCDONOUGH,
Assistant Secretary of the Board.
3. After reviewing Applicant's description of the activity and its performance of the activity, the Board has determined in this particular
case that applications by Applicant to expand de novo the activity as
described and performed through the establishment of additional offices of Verifications, in service areas in which no Telecheck franchise
has operated, may be processed in the same manner as other de novo
applications under the provisions of section 225.4(b)(1) of Regulation
Y (12 C.F.R. § 225.4(b)(1)), provided that the activity as described and
performed by Applicant is not altered in any significant respect from
that considered by the Board in this and in the previous application.
A 66
Federal Reserve Bulletin • January 1980
Appendix
A
1. American Trust Co. of Hawaii, Inc.
Honolulu, Hawaii
2. American Security Bank
Honolulu, Hawaii
3. Hawaiian Trust Company Limited
Honolulu, Hawaii
4. First Hawaiian Bank
Honolulu, Hawaii
5. Hawaii Bancorporation, Inc.
Honolulu, Hawaii
6. Hawaii Consumer Finance Association, Inc.
Honolulu, Hawaii
7. Hawaii National Bank
Honolulu, Hawaii
8. Liberty Bank
Honolulu, Hawaii
9. City Bank
Honolulu, Hawaii
10. Central Pacific Bank
Honolulu, Hawaii
Crocker National Corporation,
San Francisco, California
Order Approving
Acquisition of Bishop Investment Corporation
Crocker National Corporation, San Francisco, California ("Applicant"), a bank holding company within the
meaning of the Bank Holding Company Act ("Act"),
has applied for the Board's approval, under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12 C.F.R.
§225.4(b)(2)), to acquire all of the outstanding shares
of Bishop Investment Corporation, Honolulu, Hawaii
("Bishop Investment"), and thereby to acquire control of certain of its subsidiaries, including Bishop
Trust Company, Ltd., Honolulu, Hawaii ("Bishop
Trust"), and Hawaii Finance Company, Ltd., Hilo,
Hawaii ("Hawaii Finance"). Bishop Investment also
holds certain assets that are impermissible investments for a bank holding company, including several
parcels of real estate, as well as voting shares of various corporations.
Bishop Trust engages in the activities of a trust company as authorized under Hawaii State law and the
laws of Guam, including acting as fiduciary, agent or
custodian for personal, employee benefit and corporate trusts, and providing investment advice. Bishop
Trust also provides data processing services with regard to financial or related economic data. Hawaii Finance is an industrial loan company chartered under
Hawaii law that makes small unsecured loans to indi
viduals, as well as loans secured by real estate or other
collateral. Hawaii Finance does not presently issue
certificates of deposit, although Hawaiian industrial
loan companies are authorized to do so.1 The industrial loan, trust company, and data processing activities
of Hawaii Finance and Bishop Trust have been determined by the Board to be closely related to banking (12
C.F.R. §§ 225.4(a)(2), (4), (8)).2 Bishop Trust also offers property management services and makes short
term loans to its trust customers pending receipt of investment income. With the exception of properties
managed in a fiduciary capacity, the property management activities offered by Bishop Trust have been determined by the Board to be impermissible for bank
holding companies. Moreover, under section
225.4(a)(4), trust company subsidiaries of bank holding
companies generally may not make loans.
Notice of the application, affording opportunity for
interested persons to submit comments on the public
interest factors, has been duly published (44 Federal
Register 15538). The time for filing comments has expired, and the Board has considered the application
and all comments received, including those of the Director of the Hawaii Department of Regulatory
Agencies and the organizations named in the Appendix to this Order ("Protestants").3
Applicant, the fourth largest banking organization in
California and the fourteenth largest in the United
States, has total assets of $13.9 billion.4 Its subsidiary,
Crocker National Bank ("Bank"), with total deposits
1. In this regard, the Board notes that Hawaiian industrial loan
companies are examined at least once annually by the State Bank Examiner, and must file semiannual financial reports. In addition, minimum capital requirements are fixed by state law. The State Bank examiner is empowered to order the discontinuance of any illegal or
unsafe practices or to place the company in receivership in appropriate circumstances.
2. Applicant also proposes to acquire Bishop Building Company, a
wholly-owned subsidiary of Bishop Trust, which owns the Bishop
Trust Building, an office building in downtown Honolulu, 30 percent
of which is presently occupied by Bishop Trust. Bishop Investment
erected this building in 1969 for use by Bishop Trust, and its basement
contains substantial vault space and safe deposit box facilities that are
necessary for Bishop Trust's operations. The street-level office facilities in downtown Honolulu that are furnished by this building also
appear reasonably necessary to Bishop Trust's business. Furthermore, Applicant expects that Bishop Trust and Hawaii Finance will
occupy 50 percent of this building by 1983. Finally, the Board notes
that in 1978 Bishop Building Company represented approximately 2.9
percent of Bishop Investment's total assets. Based on the foregoing,
the Board concludes that ownership of the Bishop Trust Building may
properly be regarded as incidental to the activities of Bishop Trust and
Hawaii Finance under 12 C.F.R. § 225.4(a). Since this is an activity in
which Bishop Trust could engage directly, it may be engaged in by a
wholly-owned subsidiary of Bishop Trust after the acquisition of Bishop Trust by Applicant is approved. Northwestern Financial Corporation,
6 5 FEDERAL RESERVE B U L L E T I N 5 6 6 ( 1 9 7 9 ) .
3. Protestants primarily include other financial organizations located in Hawaii that compete with Bishop Trust and Hawaii Finance.
None of the Protestants has requested that the Board hold a hearing
on this application as provided in section 4(c)(8) of the Act.
4. All financial data are as of December 31, 1978, unless otherwise
indicated.
Legal Developments
of $11.2 billion, conducts commercial and retail banking business from branches located throughout California. In addition, through subsidiaries, Applicant engages in various nonbanking activities, including
provision of trust services, mortgage activities, leasing, and related insurance activities.
Protestants contend that this proposal would result
in the acquisition by Applicant of an additional bank
outside of the State of California where Applicant conducts its principal banking operations, and that section
3(d) of the Act would preclude the Board from approving this application.5 The Board has examined this
contention and concludes that it is without merit.
Moreover, the Board has examined the substance of
Protestants' objection to determine whether this proposal would contravene the spirit of the ban imposed
in section 3(d) of the Act, and has concluded that it
would not.
Applicant has applied to engage in trust company
activities as authorized by state law, activities which
the Board has determined are permissible for bank
holding companies under section 4 of the Act, and for
this reason, the provisions of section 3(d) of the Act
are not applicable to this application. When it first considered this nonbank activity, the Board noted that in
many jurisdictions, authorized trust company activities may fall within the definition of "bank" contained
in section 2(c) of the Act.6 Thus, in order to ensure
that trust companies acquired by bank holding companies under section 4(c)(8) of the Act did not in fact
operate as banks, the Board, in adopting this as a permissible activity for bank holding companies, restricted the lending activities of trust companies for which
application could be made under section 4(c)(8) of the
Act.7 The Board finds no evidence in the record that
this proposal would contravene either the letter or
spirit of section 3(d) of the Act, and the Board finds
that the Protestants' contentions in this regard are
without merit. Finally, the Board notes that a similar
objection has been interposed by the Director of the
Hawaii Department of Regulatory Agencies ("Director") based on a provision of Hawaii law that prohibits
5. This section provides that the Board may not approve an application under section 3 of the Act by a bank holding company to acquire a bank outside of the state where the applicant conducts its principal banking operations. (12 U.S.C. § 1842(d)).
6. "Bank" is defined as any institution that "accepts deposits that
the depositor has a legal right to withdraw on demand, and engages in
the business of making commercial loans." (12 U.S.C. § 1842(c)).
7. Section 225.4(a)(4) of Regulation Y provides, with certain exceptions not applicable here, that trust companies authorized under
that section may not engage in lending activities. In this connection,
the Board notes that Bishop Trust makes short term "bridge" loans to
its trust customers pending receipt of income on investments. However, in view of the broad deposit-taking powers of trust companies
under 12 C.F.R. § 225.4(a)(4), permitting additional lending activities
appears inconsistent with the provisions of section 3(d) of the Act.
Applicant has committed that such lending activities of Bishop Trust
will be terminated upon consummation of the proposal.
67
any foreign bank from engaging in banking business in
Hawaii. However, the Board notes that trust companies are specifically excluded from this prohibition,
and Hawaiian industrial loan companies are not empowered to engage in a banking business. Based on
these statutory provisions, as well as the discussion
above, the Board concludes that the proposed acquisition would not violate state law.8
Bishop Trust, with assets of $900 million under management, ranks 96th in the United States in terms of
trust assets.9 With offices in Hawaii and Guam, it is the
second largest of five trust companies chartered in Hawaii and holds approximately 30 percent of the trust
assets in that state. Bishop Trust derives substantially
all of its trust business from Hawaii. It is the Board's
judgment that in view of the unique geographical characteristics of Hawaii, the market in which the competitive effects of the proposed acquisition should be
evaluated is the State of Hawaii.
Applicant is also engaged in trust activities through
Bank and several of Applicant's nonbanking subsidiaries, including Crocker Investment Management
Corp. and Western Bradford Trust Company. It manages total trust assets of $5.0 billion, and ranks 22nd
among banks and trust companies in the United States
in terms of trust assets under management. Applicant
derives its trust business from throughout the continental United States, but particularly from California.
However, Applicant and its subsidiaries do not have
any offices in Hawaii, and it derives only a minimal
amount of trust business from Hawaii. Inasmuch as
Applicant and Bishop Trust do not compete for trust
business in the same market, the Board concludes that
consummation of the proposal will not eliminate any
existing competition between the two. However, Protestants contend that consummation of the proposal
would result in other adverse effects on competition
within the Hawaii market.
Protestants, noting Applicant's substantial resources, believe that Applicant should be required to
enter the Hawaii market de novo, rather than by acquiring the second largest trust company in Hawaii.
They further assert that Applicant's entry in the market by acquiring Bishop Trust will result in elimination
of potential competition, undue concentration of resources and unfair competition within the Hawaii market. Applicant contends that due to the unique characteristics of the Hawaiian market, de novo entry is not
feasible. The Board notes that Applicant has not attempted to enter that market in any fashion prior to
8. The Director also suggests that the proposed acquisition may be
subject to approval of Hawaiian authorities under other provisions of
law. While the Board has not determined whether such approval is
necessary, the Board expects that Applicant will obtain all necessary
approvals from state authorities, and the Board's action on this application is not intended to preempt any such requirements.
9. American Banker, June 26, 1978.
A 68
Federal Reserve Bulletin • January 1980
this proposal. Moreover, in the Board's view, even if
Applicant may be regarded as a likely potential entrant
for trust services in the Hawaiian market, numerous
other large organizations providing trust services in
the continental United States would remain as potential entrants after consummation of this acquisition.
With respect to the acquisition by Applicant of Hawaii
Finance ($1.9 million in assets as of June 30, 1978, and
a negligible market share), in the Board's judgment the
acquisition represents a foothold entry by Applicant
into the consumer finance business in Hawaii. Thus,
based on the record of this application, the Board concludes that consummation of this proposal would not
eliminate a significant amount of potential competition
between Applicant and Bishop Investment.
Protestants also contend that the proposed acquisition will result in an undue concentration of resources
and unfair competitive practices in the Hawaii market.
While the combination of two such significant organizations within the continental United States might be
of some concern to the Board, given the unique geographic separation of the Hawaii market from the markets in which Applicant competes, the Board is unable
to conclude that this proposal will result in an undue
concentration of resources. Similarly, while Applicant's size and resources are expected to be of some
advantage to Bishop Trust in providing new and improved services to its customers, there is no reason to
believe that Applicant will engage in any unfair competitive practices, as alleged by Protestants. In this
connection, the Board notes that section 106 of the Act
prohibits unfair competition as a result of tying of services offered by bank holding company affiliates, and
Applicant has stated that the personnel and management of all of its affiliates are fully aware of these prohibitions. Moreover, Protestants have provided no
evidence that Applicant has engaged in unfair or predatory practices with respect to any of its subsidiaries,
and their fears of such practices appear to be based
primarily on Applicant's absolute size. In the Board's
judgment, based on the facts of record, these practices
are not likely to occur as a result of this acquisition.
Accordingly, the Board concludes that any adverse effects on competition that would result from the proposal should not be regarded as significant.
Applicant's subsidiaries presently provide a number
of sophisticated trust services to their clients. For example, these subsidiaries have a significant involvement in trading desk activities for corporate and
municipal securities and provide investment management services to large employee benefit trusts. The
availability of these and other services to Bishop Trust
will allow it to better serve Hawaiian trust customers
that might otherwise forego such services or seek them
from large financial institutions located in the continental United States. Applicant will also be in a posi
tion to supply Hawaii Finance with additional capital
and thereby increase its ability to make loans to its
customers. While the Board agrees with Protestants
that these benefits are not substantial, in the Board's
view, they are sufficient to outweigh any adverse competitive effects that may result from the proposal.
Moreover, it appears that consummation of the proposed transaction would not result in conflicts of interests or unsound banking practices.
As noted above, Bishop Investment holds real estate and stock that represent impermissible investments for bank holding companies. Applicant proposes to dispose of such assets by means of a
transaction whereby Bishop Investment will transfer
the assets to a subsidiary, Bico Properties ("Bico"), in
return for three-year notes in the amount of $4.2 million secured by the assets. Prior to merging with Applicant, Bishop Investment will spinoff the shares of Bico
to its shareholders. When it merges with Bishop Investment, Applicant would acquire the note and security interest, as well as the right to receive a 50 percent
share in the proceeds from liquidation of the impermissible assets over and above the face amount of the
note.
The Board regards Bico as a shell corporation
whose "business" is restricted to the liquidation of
Bishop's impermissible assets primarily on behalf of
Applicant. Moreover, the proposed liquidation would
take place over a three-year period, with Applicant
having a security interest in the assets as well as the
right to appoint a trustee to complete the liquidation at
the end of the three-year period.10 Thus, Applicant
would retain a beneficial interest in the impermissible
assets for a substantially longer period than the Board
normally permits a bank holding company acquiring a
nonbank company to hold impermissible assets.11 For
the foregoing reasons, the Board believes that Applicant's divestiture proposal for disposing of Bishop Investment's impermissible assets is contrary to the purposes of the Act, and that modification of the proposal
to address those concerns will be necessary before
consummation.
On the basis of all the facts of record, the Board
concludes that the benefits to the public that would result from Applicant's acquisition of Bishop Investment
are sufficient to outweigh any adverse effects that
would result from the proposed acquisition. Based upon the foregoing and other considerations reflected in
the record, the Board has determined that the balance
10. With regard to divestitures, the Board has stated that "the retention of an economic interest in the divested company that would
create an incentive for the divesting company to attempt to influence
the management of the divested company will preclude a finding that
the divestiture is c o m p l e t e . " 12 C . F . R . § 225.139.
11. United Missouri Bancshares, Inc., 64 FEDERAL RESERVE BULLETIN 4 1 5 ( 1 9 7 8 ) .
Legal Developments
of the public interest factors the Board is required to
consider under section 4(c)(8) is favorable. Accordingly, the application is hereby approved, subject to
the conditions that: (1) Upon consummation of the
proposed acquisition, Applicant will cause Bishop
Trust to terminate all of its "bridge" lending activities;
(2) Applicant will cause Bishop Trust to terminate all
impermissible property management agreements as
soon after consummation as possible in accordance
with the terms of the agreements, but in any event no
later than one year from the date of consummation; (3)
Applicant will, prior to consummation of this proposal, submit a divestiture proposal for the Board's
approval that will result in a divestiture by Applicant
of its interest in Bishop Investment's impermissible assets within two years from the date of consummation.
This determination is also subject to the conditions
set forth in § 225.4(c) of Regulation Y and to the
Board's authority to require such modification or termination of the activities of a holding company or any
of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of
the Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof. The transaction shall be made not later than three months after
the effective date of this Order, unless such period is
extended for good cause by the Board or by the Federal Reserve Bank of San Francisco, pursuant to authority hereby delegated.
By order of the Board of Governors, effective December 10, 1979.
Voting for this action: Vice Chairman Schultz and Governors Partee, Teeters, and Rice. Absent and not voting: Chairman Volcker and Governors Wallich and Coldwell.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Financial Services Corporation of the Midwest,
Rock Island, Illinois
Order Approving
the Issuance and Sale of Money Orders
Financial Services Corporation of the Midwest, Rock
Island, Illinois, a bank holding company within the
meaning of the Bank Holding Company Act, has applied for the Board's approval, under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2)
of the Board's Regulation Y (12 C.F.R. § 225.4(b)(2)),
to engage de novo in the issuance and, through its nonbank subsidiaries, in the retail sale of money orders
having a face value of not more than $1,000. The
Board has determined these activities to be closely re
69
lated to banking (12 C . F . R . § 225.4(a)(13); Republic of
Texas Corporation, 63 FEDERAL RESERVE BULLETIN
414 (1977)).
Notice of this application, affording opportunity for
interested persons to submit comments and views,
was duly published (44 Federal Register 61,257
(1979)). The time for filing comments and views has
expired, and the Board has considered the application
and all comments received in the light of the public
interest factors set forth in section 4(c)(8) of the Act.
Applicant controls The Rock Island Bank ("Bank"),
Rock Island, Illinois (deposits of $92.7 million), which
is the 113th largest banking organization in the State of
Illinois, controlling 0.11 percent of the total deposits in
commercial banks in the state. Applicant also has a
nonbanking subsidiary, Federal Discount Corporation
("FDC"), the parent of the seven subsidiaries through
which Applicant by this application proposes to sell
money orders.1 FDC engages in finance, industrial
loan, and credit-related insurance activities directly
and indirectly through 76 offices of its subsidiaries in
Illinois, Iowa, Minnesota, North Dakota, and Wisconsin.
Applicant proposes to issue money orders which it
will sell to the general public through its bank and nonbank subsidiaries. Applicant does not propose that
these instruments be sold through unaffiliated agents.
The Board has previously taken note of the limited
number of competitors in this industry (Republic of
Texas Corporation, supra). Applicant's entry into this
industry as an issuer would enhance competition in the
provision of this service. In addition, Applicant's retail
sale of money orders through its nonbank subsidiaries
is expected to result in some increased convenience to
the public and may stimulate competition and ultimately result as well in a reduction of the costs to consumers. Furthermore, there is no evidence in the record indicating that Applicant's engaging in these
activities would lead to any undue concentration of resources, unfair competition, conflicts of interests, unsound banking practices, or other adverse effects. Accordingly, it is the Board's view that the issuance and
sale of money orders as proposed by Applicant would
produce benefits to the public and would be in the public interest.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interests factors it is required
to consider under section 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination is subject to the conditions set forth in sec1. The Money Shops of Iowa, Inc., The Money Shops of Minnesota, Inc.; The Money Shops Industrial Loan and Thrift Company;
The Money Shops of Wisconsin, Inc.; The Money Shops, Inc. (Wisconsin): The Money Shops, Inc. (Delaware); and The Money Shops,
Inc. (North Dakota).
A 70
Federal Reserve Bulletin • January 1980
tion 225.4(c) of Regulation Y and the Board's authority
to require such modification or termination of the activities of a holding company or any of its subsidiaries
to assure compliance with the provisions and purposes
of the Act and the Board's regulations and order issued thereunder, or to prevent evasion thereof.
The activity shall be commenced 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 Chicago pursuant to
delegated authority.
By order of the Board of Governors, effective December 21, 1979.
Voting for this action: Vice Chairman Schultz and Governors Wallich, Coldwell, Partee, Teeters, and Rice. Absent and
not voting: Chairman Volcker.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Seafirst Corporation,
Seattle, Washington
Order Approving
Acquisition of Mortgage Banking Firm
Seafirst Corporation, Seattle, Washington, a bank
holding company within the meaning of the Bank
Holding Company Act, has applied for the Board's approval, under section 4(c)(8) of the Act (12 U.S.C. §
1843(c)(8)) and section 225.4(b)(2) of the Board's Regulation Y (12 C.F.R. § 225.4(b)(2)) to acquire 100 percent of the voting shares of Sutter Trust Company,
Phoenix, Arizona ("Sutter"), a company that engages
in the activities of mortgage banking, including the
origination of residential real estate loans and the servicing of such loans for the account of others. Such activities have been determined by the Board to be closely related to banking (12 C.F.R. § 225.4(a)(1) and (3)).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been duly published (44 Federal Register 60826). The
time forfilingcomments and views has expired and the
application and all comments received have been considered in light of the public interest factors set forth in
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)).
Applicant, the largest banking organization in the
State of Washington, controls one bank with total deposits of approximately $6.3 billion.1 Applicant engages, through subsidiaries of the bank, in mortgage
banking, leasing, escrow company and computer ser-
1. All banking data are as of June 30, 1979.
vices activities. Through its nonbank subsidiaries, Applicant engages in credit-related insurance activities.
Sutter originates single- and multi-family residential
mortgage loans, commercial loans and construction
and land development loans from six offices located in
Arizona. Sutter sells these loans in the secondary market to permanent investors and then acts as the servicing agent for the investor. During 1978, Sutter originated a total of $61.4 million in loans and serviced
loans totaling $204.3 million.
Applicant also engages in the origination and servicing of real estate loans through its indirect subsidiary, Seafirst Mortgage Corporation ("Mortgage").
Mortgage does not solicit business in Arizona. Thus,
the acquisition of Sutter by Applicant is regarded as an
expansion of Applicant's mortgage banking operations
into Arizona. Accordingly, it is concluded that consummation of the proposal would have no adverse effects on competition in the relevant area.
Upon consummation of the proposed acquisition,
Applicant would assist Sutter in expanding the types
of mortgage loans it offers its customers to include industrial financing, loans to low- and moderate-income
borrowers, and loans to small businesses. In addition,
Applicant intends to utilize data processing and an inventory control system in the operation of Sutter,
thereby reducing Sutter's operating costs. Finally, affiliation with Applicant will enable Sutter to expand its
lending capacity. Accordingly, it is concluded that the
proposed acquisition of Sutter by Applicant can reasonably be expected to produce benefits to the public
that outweigh any adverse effects. Furthermore, there
is no evidence in the record indicating that consummation of this proposed transaction would result in
any undue concentration of resources, decreased or
unfair competition, conflicts of interest, unsound
banking practices or other adverse effects upon the
public interest.
Based upon the foregoing and other considerations
reflected in the record, it has been determined, in accordance with the provisions of section 4(c)(8) of the
Act, that Applicant's acquisition of Sutter can reasonably be expected to produce favorable public benefits.
Accordingly, the application is hereby approved. This
determination is subject to the conditions set forth in
section 225.4(c) of Regulation Y and to the Board's
authority to require such modification or termination
of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act
and the Board's regulations and orders issued thereunder, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of San Francisco.
Legal Developments
By order of the Secretary of the Board, acting pursuant to delegated authority from the Board of Governors, effective December 18, 1979.
[SEAL]
(Signed) GRIFFITH L. GARWOOD,
Deputy Secretary of the Board.
CERTIFICATIONS
PURSUANT
To THE BANK HOLDING
COMPANY
TAX ACT OF 1976
The Brantley Company,
Blackshear, Georgia
Final Certification Pursuant to the
Bank Holding Company Tax Act of 1976
[Docket No. TCR 76-134]
The Brantley Company, Blackshear, Georgia
("Brantley"), has requested a final certification pursuant to section 1101(e) of the Internal Revenue Code
(the "Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976 (the "Tax Act"),
that it has (before the expiration of the period prohibited property is permitted under the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) ("BHC Act") to
be held by a bank holding company) ceased to be a
bank holding company.
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification:1
1. Effective April 3, 1978, the Board issued a prior
certification pursuant to section 1101(b) of the Code
with respect to the proposed divestiture by Brantley of
8,360 shares of The Blackshear Bank, Blackshear,
Georgia ("Bank"), then held by Brantley, through the
pro rata distribution of such shares to Brantley's
shareholders.2
2. The Board's Order certified that:
A. Brantley is a qualified bank holding corporation
within the meaning of section 1103(b) of the Code, and
satisfies the requirements of that subsection;
B. The 8,360 shares of Bank that Brantley proposes
to distribute to its shareholders are all of part of the
property by reason of which Brantley controls (within
1. This information derives from Brantley's communications with
the Board concerning its request for this certification, Brantley's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. The prior certification noted that Brantley owned and controlled
8,560 shares of Bank, but that under section 1101(c) of the Code, 200
shares of Bank acquired by Brantley after July 7, 1970, would not be
entitled to special tax treatment under section 1101(b) of the Code.
71
the meaning of section 2(a) of the BHC Act) a bank or
a bank holding company; and
C. the distribution of such 8,360 shares is necessary
or appropriate to effectuate the policies of the BHC
Act.
3. The prior certification issued April 3, 1978, was
granted upon the representation of Brantley that it
would elect, for purposes of Part VIII of subchapter O
of Chapter 1 of the Code, to have the determination of
whether property is "prohibited property" or is property eligible to be distributed without recognition of
gain under section 1101(b)(1) of the Code, made under
the BHC Act as if such act did not contain clause (ii) of
section 4(c) or the proviso of section 4(a)(2) thereof as
provided in section 1103(g) and 1103(h) of the Code.
On December 11, 1979, Brantley made such an election by resolution of its board of directors and filed a
written statement with the Board to that effect. Sections 1103(g) and 1103(h) of the Code provide that a
company making such election must dispose of either
all banking property or all nonbanking property.
4. On April 28, 1978, Brantley distributed to its
shareholders, on a pro rata basis, a total of 8,360
shares of Bank and sold the remaining 200 shares of
Bank owned by it. Brantley does not currently hold
any interest in Bank.
5. The prior certification issued on April 3, 1978,
was granted upon the condition that no person holding
an office or position (including an advisory or honorary
position) with Brantley or any of its subsidiaries as a
director, policy-making employee or consultant, or
who performs, (directly, or through an agent, representative or nominee) functions normally associated
with such office or position, will hold any such office or
position or perform any such function with Bank or
any of its subsidiaries. Effective June 19, 1978, all such
interlocking relationships between Brantley and Bank
and their respective subsidiaries were terminated.
6. Brantley does not directly or indirectly own, control or have power to vote 25 percent or more of any
class of voting securities of any bank or any company
that controls a bank.
7. Brantley has represented that it does not control
in any manner the election of a majority of directors,
or exercise a controlling influence over the management or policies of Bank or any other bank or any
company that controls a bank.
On the basis of the foregoing information, it is hereby certified that Brantley has (before the expiration of
the period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
ceased to be a bank holding company, and has disposed of all its banking property.
This certification is based upon the representations
made to the Board by Brantley and upon the facts set
forth above. In the event the Board should determine
A 72
Federal Reserve Bulletin • January 1980
that facts material to this certification are otherwise
than as represented by Brantley, or that Brantley has
failed to disclose to the Board other material facts, it
may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.3(b)(3)), effective December 20, 1979.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary of the Board.
Evans Insurance Agency,
Billings, Oklahoma
Final Certification Pursuant to the
Bank Holding Company Tax Act of 1976
[Docket No. TCR 76-133]
Evans Insurance Agency, Inc., Billings, Oklahoma
("Agency"), has requested a final certification pursuant to section 1101(e) of the Internal Revenue Code
(the "Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976 (the "Tax Act"),
that it has (before the expiration of the period prohibited property is permitted under the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) ("BHC Act") to
be held by a bank holding company) ceased to be a
bank holding company.
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification:1
1. Effective June 14, 1978, the Board issued a prior
certification pursuant to section 1101(b) of the Code
with respect to the proposed divestiture by Agency of
494 shares of First State Bank in Billings, Billings,
Oklahoma ("Bank"), then held by Agency through the
distribution of such shares to Agency's sole shareholder.2
2. The Board's Order certified that:
A. Agency is a qualified bank holding corporation
within the meaning of subsection 1103(b) of the Code,
and satisfies the requirements of that subsection;
B. the 905 shares of Bank that Agency proposes to
distribute to its shareholders are all or part of the prop-
1. This information derives from Agency's communications with
the Board concerning its request for this certification, Agency's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. The prior certification noted that Agency owned and controlled
905 shares of Bank, but that under section 1101(c) of the Code, 411
shares of Bank acquired by Agency after July 7, 1970, would not be
entitled to special tax treatment under section 1101(b) of the Code.
erty by reason of which Agency controls (within the
meaning of section 2(a) of the BHC Act) a bank or a
bank holding company ; and
C. the distribution of such 905 shares is necessary
or appropriate to effectuate the policies of the BHC
Act.
3. The prior certification issued June 14, 1978, was
granted upon the representation of Agency that it
would elect, for purposes of Part VIII of subchapter O
of Chapter 1 of the Code, to have the determination of
whether property is "prohibited property" or is property eligible to be distributed without recognition of
gain under § 1101(b)(1) if the Code, made under the
BHC Act as if such Act did not contain clause (ii) of
section 4(c) or the proviso of section 4(a)(2) thereof, as
provided in sections 1103(g) and 1103(h) of the Code.
On November 23, 1979, Agency made such an election
by resolution of its board of directors and filed a written statement with the Board to that effect. Sections
1103(g) and 1103(h) of the Code provide that a company making such election must dispose of either all
banking property or all nonbanking property.
4. On September 12, 1978, Agency distributed to its
sole shareholder a total of 494 shares of Bank and sold
the remaining 411 shares of Bank owned by it to that
shareholder. Agency does not currently hold any interest in Bank.
5. Agency does not directly or indirectly own, control or have power to vote 25 percent or more of any
class of voting securities of any bank or any company
that controls a bank.
6. Agency has represented that it does not control
in any manner the election of a majority of directors or
exercise a controlling influence over the management
or policies of Bank, any other bank, or any company
that controls a bank.
On the basis of the foregoing information, it is hereby certified that Agency has (before the expiration of
the period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
ceased to be a bank holding company, and has disposed of all its banking property.
This certification is based upon the representations
made to the Board by Agency and upon the facts set
forth above. In the event the Board should determine
that facts material to this certification are otherwise
than as represented by Agency, or that Agency has
failed to disclose to the Board other material facts, it
may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3)), effective December 28,1979.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Legal Developments
How-Win Development Co.,
Cresco, Iowa
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1976
[Docket No. TCR 76-181]
How-Win Development Co., Cresco, Iowa ("HowWin"), has requested a prior certification pursuant to
section 1101(a) of the Internal Revenue Code
("Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976, that its proposed
divestiture of all of the farmland and farm-related
property ("Farm Property"), currently held by HowWin, through the pro rata distribution of shares of a
proposed new corporation formed solely for the purpose of receiving such property, to all of the shareholders of How-Win, is necessary or appropriate to effectuate section 4 of the Bank Holding Company Act
(12 U.S.C. § 1841 et seq.) ("BHC Act").
In connection with this request, the following information is deemed relevant for the purpose of issuing
the requested certification.1
1. How-Win is a corporation organized under the
laws of the State of Iowa on November 14, 1969, and
in December 1969 How-Win acquired control of
Cresco Union Savings Bank, Cresco, Iowa ("Bank").
2. How-Win became a bank holding company on
December 31, 1970, as a result of the enactment of the
1970 Amendments to the BHC Act by virtue of its direct ownership and control at that time of more than 25
percent of the outstanding voting shares of Bank, and
it registered as such with the Board on June 10, 1971.
How-Win presently has 3,262.5 shares, representing
82.9 percent of the outstanding shares of Bank.
3. How-Win acquired the Farm Property on January 1, 1970. The disposition of the Farm Property by
How-Win would be necessary or appropriate to effectuate section 4 of the BHC Act if How-Win continues to be a bank holding company beyond December
31, 1980, and such property is "prohibited property"
within the meaning of section 1103(c) of the Code. On
the basis of the foregoing information, it is hereby certified that:
A. How-Win is a qualified bank holding company
within the meaning of section 1103(b) of the Code, and
satisfies the requirements of that section;
B. The Farm Property that How-Win proposes to
exchange for shares of the new corporation is "prohib-
1. This information derives from How-Win's communications with
the Board concerning its request for this certification, How-Win's registration statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
73
ited property" within the meaning of section 1103(c) of
the Code;
C. The exchange of the Farm Property for the
shares of the new corporation and the distribution to
How-Win's shareholders of such shares are necessary
or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the representations
made to the Board by How-Win and upon the facts set
forth above. In the event that the Board should hereafter determine that the facts material to this certification are otherwise than as represented by How-Win or
that How-Win has failed to disclose to the Board other
material facts, the Board may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3)), effective December 13,1979.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Keystone Consolidated Industries, Inc.,
Peoria, Illinois
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1975
[Docket No. TCR 76-191]
Keystone Consolidated Industries, Inc., Peoria, Illinois ("Keystone"), has requested a prior certification
pursuant to section 6158(a) of the Internal Revenue
Code ("Code"), as amended by section 3(a) of the
Bank Holding Company Tax Act of 1976 ("Tax Act"),
that its proposed sale of 100,000 shares of common
stock ("Bank Shares") of Jefferson Trust and Savings
Bank of Peoria, Peoria, Illinois ("Bank"), to two individuals ("Buyers") for cash, is necessary or appropriate to effectuate the policies of the Bank Holding Company Act (12 U.S.C. § et seq.) ("BHC Act").
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification.1
1. Keystone is a corporation organized and existing
under the laws of the State of Delaware.
2. On December 17, 1947, Keystone acquired ownership and control of 100,000 shares, representing 50
percent of the outstanding voting shares, of Bank.
3. Keystone became a bank holding company on
December 31, 1970, as a result of the 1970 Amendments to the BHC Act, by virtue of its ownership and
1. This information derives from Keystone's correspondence with
the Board concerning its request for this certification, Keystone's
Registration Statement filed with the Board pursuant to the BHC Act,
and other records of the Board.
A 74
Federal Reserve Bulletin • January 1980
control at that time of more than 25 percent of the outstanding voting shares of Bank. Keystone would have
been a bank holding company on July 7, 1970, if the
BHC Act Amendments of 1970 had been in effect on
such date, by virtue of ownership and control on that
date of more than 25 percent of the outstanding voting
shares of Bank. Keystone currently owns 100,000
shares, representing 50 percent of the outstanding voting shares, of Bank.
4. Keystone holds property acquired by it on or before July 7, 1970, the disposition of which would be
necessary or appropriate under section 4 of the BHC
Act if Keystone were to remain a bank holding company beyond December 31, 1980, and which property is
"prohibited property" within the meaning of section
1103(c) of the Code.
5. August 14, 1978, Keystone filed with the Board
an irrevocable declaration pursuant to section 225.4(d)
of the Board's Regulation Y that it would cease to be a
bank holding company prior to January 1, 1981, by divesting itself of all of its interest in Bank. In accordance with the portion of the regulation and Keystone's
commitment, Keystone has been permitted to expand
its nonbanking activities without seeking the Board's
prior approval.
6. Keystone has committed that after the sale of
Bank Shares, no person who is a director or officer of
Keystone or its parent or subsidiaries will serve in a
similar capacity with Bank. In addition, all persons affiliated with Keystone currently serving as directors or
officers of Bank will resign their positions effective as
of the closing date of the sale. Keystone has further
committed that none of Buyers is, or will be, indebted
to Keystone, and that none of Buyers is affiliated in
any way with Keystone.
On the basis of the foregoing information, it is hereby certified that:
(A) Keystone is a qualified bank holding corporation within the meaning of section 1103(b) of the Code,
and satisfies the requirements of that section;
(B) Bank Shares covered by the instant request are
the property by reason of which Keystone controls
(within the meaning of section 2(a) of the BHC Act) a
bank; and
(C) the sale of such shares is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
and commitments made to the Board by Keystone and
upon the facts set forth above. In the event the Board
should determine that facts material to this certification are otherwise than as represented by Keystone, or
that Keystone has failed to disclose to the Board other
material facts or to fulfill any commitments made to
the Board in connection herewith, it may revoke the
certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority,
effective December 5, 1979.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Pioneer Industrial Park, Inc.,
Peoria, Illinois
Prior Certification Pursuant to the
Bank Holding Company Act of 1976
[Docket No. TCR 76-185]
Pioneer Industrial Park, Inc., Peoria, Illinois ("Pioneer"), has requested a prior certification pursuant to
section 1101(b) of the Internal Revenue Code
("Code"), as amended by section 2(a) of the Bank
Holding Company Act of 1976 ("Tax Act"), that its
proposed divestiture of 9,000 shares of Pioneer State
Bank, Peoria, Illinois ("Bank") presently held by Pioneer through the pro rata distribution of such shares to
Pioneer's six shareholders, is necessary or appropriate
to effectuate the policies of the Bank Holding Company Act. (12 U.S.C. § 1841 et seq.) ("BHC Act").
In connection with this request the following information is deemed relevant for purposes of issuing the
requested certification:1
1. Pioneer is a corporation organized on January 2,
1959 under the laws of the state of Delaware.
2. On November 8, 1968, Pioneer acquired ownership and control of 9,000 shares, representing 60 percent of the outstanding voting shares, of Bank.
3. Pioneer became a bank holding company on December 31, 1970, as a result of the 1970 amendments to
the BHC Act by virtue of its ownership and control at
that time of more than 25 percent of the outstanding
voting shares of Bank, and it registered as such with
the Board on January 26, 1972. Pioneer would have
been a bank holding company on July 7, 1970, if the
BHC Act Amendments of 1970 had been in effect on
such date, by virtue of its ownership and control on
that date of more than 25 percent of the outstanding
voting shares of Bank. Pioneer presently owns and
controls 10,500 shares, representing 61.8 percent of
the outstanding voting shares, of Bank.2
4. Pioneer holds property acquired by it on or before July 7, 1970, the disposition of which would be
1. This information derives from Pioneer's communications with
the Board concerning its request for this certification, Pioneer's Registration Statement filled with the Board pursuant to the Bank Holding
Company Act, and other records of the Board.
2. Subsequent to July 7, 1970, Pioneer purchased 1,500 shares of
Bank. Under section 1101(c)(1) of the Code, property acquired after
July 7, 1970, generally does not qualify for the tax benefits of section
Legal Developments
required under section 4 of the BHC Act if Pioneer
were to remain a bank holding company beyond December 31, 1980, and which property is "prohibited
property" within the meaning of section 1103(c) of the
Code.
5. Pioneer has committed to the Board that within
three months after consummation of the proposed divestiture, no person holding an office or position (including an advisory or honorary position) with Pioneer
as a director, officer, policy-making employee or consultant, or who performs (directly or through an agent,
representative or a nominee) functions comparable to
those normally associated with such office or position,
will hold any such office or position or perform any
such function with Bank or any of its subsidiaries or
affiliates.
On the basis of the foregoing information, it is hereby certified that:
(A) Pioneer is a qualified bank holding corporation
within the meaning of section 1103(b) of the Code, and
satisfies the requirements of that section;
(B) the 9,000 shares of Bank that Pioneer proposes
to distribute to its shareholders are all or part of the
property by reason of which Pioneer controls (within
the meaning of section 2(a) of the BHC Act) a bank or
bank holding company; and
(C) the distribution of the 9,000 shares of Bank is
necessary or appropriate to effectuate the policies of
the BHC Act.
The certification is based upon the representations
made to the Board by Pioneer and upon the facts set
forth above. In the event the Board should hereafter
determine that facts material to this certification are
otherwise than as represented by Pioneer or that Pioneer has failed to disclose to the Board other material
facts, it may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(2)(3)), effective December 17,1979.
[SEAL]
(Signed) GRIFFITH L. GARWOOD,
Deputy Secretary of the Board.
Safeway Insurance Company,
Chicago, Illinois
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1976
[Docket No. TCR 76-173]
1101(b) of the Code when distributed by an otherwise qualified bank
holding company. Since Pioneer has not claimed that any of the exemptions to this general rule are applicable to it, the 1,500 shares acquired after July 7, 1970, do not appear to be eligible for tax benefits
under the Tax Act. Pioneer proposes to retain ownership of the 1,500
shares, which represent approximately 8.8 percent of the outstanding
stock of Pioneer State Bank.
75
Safeway Insurance Company, Chicago, Illinois
("Safeway"), has requested a prior certification pursuant to section 1101(b) of the Internal Revenue Code
("Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976, that its proposed
divestiture of 411,588 of the voting shares of The National Republic Bank of Chicago, Chicago, Illinois
("Bank"), currently held by Safeway, through the pro
rata distribution of such shares to the shareholders of
Safeway is necessary or appropriate to effectuate the
policies of the Bank Holding Company Act (12 U.S.C.
§ 1841 et seq.) ("BHC Act").
In connection with this request, the following information is deemed relevant for the purpose of issuing
the requested certification.1
1. Safeway is a corporation organized under the
laws of the state of Illinois on December 28, 1962.
2. On June 30, 1968, Safeway controlled 17.5 percent of the outstanding voting shares of Bank. Between June 30, 1968, and July 7, 1970, Safeway acquired additional shares of Bank, and as of July 7,
1970, Safeway owned and controlled 62.685 percent of
Bank's outstanding shares.
3. Safeway became a bank holding company on December 31, 1970, as a result of the 1970 Amendments
to the BHC Act, by virtue of its ownership and control
at that time of more than 25 percent of the outstanding
voting shares of Bank, and registered as such with the
Board on August 24, 1971. Safeway would have been a
bank holding company on July 7, 1970, if the BHC Act
Amendments of 1970 had been in effect on that date by
virtue of its ownership and control on that date of
more than 25 percent of the outstanding voting shares
of Bank. Safeway presently owns 423,500 shares, representing approximately 64.5 percent of the outstanding voting shares of Bank.2
4. Safeway holds property acquired by it on or before July 7, 1970, the disposition of which would be
required by section 4 of the BHC Act, if Safeway were
to continue to be a bank holding company beyond De1. This information derives from Safeway's communications with
the Board concerning its request for this certification, Safeway's registration statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. Under subsection (c) of section 1101 of the Code, property acquired after July 7, 1970, generally does not qualify for the tax benefits
of section 1101(b) when distributed by an otherwise qualified bank
holding company. However, when such property was acquired by a
qualified bank holding company in a transaction in which gain was not
recognized under section 305(a) of the Code, then § 1101(b) is applicable. Accordingly, shares received by Safeway after July 7, 1970 in
transactions for which no gain was recognized pursuant to section
305(a) of the Code with respect to shares held on or before July 7,
1970, qualify as property eligible for the tax benefits of section 1101(b)
of the Code. Safeway also purchased an additional 1,313 and 800
shares of Bank on July 28, 1970, and in January, 1972, respectively.
Since these shares were acquired by Safeway subsequent to July 7,
1970, section 1101(c) makes these shares ineligible for the tax benefits
of section 1101(b), as well as 45,277 shares subsequently received in
tax-free transactions with respect to those shares.
A 76
Federal Reserve Bulletin • January 1980
cember 31, 1980, and which property is "prohibited
property" within the meaning of section 1103(c) of the
Code.
5. Safeway and Bank have committed to the Board
that no person holding an office or position (including
an advisory or honorary position) with Safeway or any
of its subsidiaries as a director, policy-making employee or consultant, or who performs (directly, or through
an agent, representative or nominee) functions comparable to those normally associated with such office
or position, will hold any such office or position or perform any such function with Bank or any of its subsidiaries. Safeway and Bank have further committed
that all such interlocking relationships presently existing between Safeway and Bank and their respective
subsidiaries will be terminated.
6. Safeway holds 47,390 shares, representing 7.2
percent of Bank's outstanding voting shares, which it
is not entitled to transfer to its shareholders in a taxfree distribution under section 1101(b). However,
Safeway has committed that it will reduce its interest
in Bank to below five percent of Bank's outstanding
voting shares.
On the basis of the foregoing information, it is hereby certified that:
(A) Safeway is a qualified bank holding company
within the meaning of section 1103(c) of the Code, and
satisfies the requirements of that section;
(B) The 411,588 shares of Bank that Safeway proposes to distribute pro rata to its shareholders are all
or part of the property by reason of which Safeway
controls (within the meaning of section 2(a) of the
BHC Act) a bank or bank holding company; and
(C) The distribution to the shareholders of Safeway
of the shares of Bank held by it is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon representations and
commitments made to the Board by Safeway and upon
the facts summarized above. In the event the Board
should hereafter determine that facts material to this
certification are otherwise than as represented by
Safeway or that Safeway has failed to disclose to the
Board other material facts, or has failed to meet its
commitments, it may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3)), effective December 31,1979.
(Signed)
[SEAL]
E. ALLISON,
Secretary of the Board.
THEODORE
[Docket No. TCR 76-136]
Schnitzler Corporation, Froid, Montana ("Schnitzler"), has requested a final certification pursuant to
section 1101(e) of the Internal Revenue Code (the
"Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976 (the "Tax Act"),
that it has (before the expiration of the period prohibited property is permitted under the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) ("BHC Act") to
be held by a bank holding company) ceased to be a
bank holding company.
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification:1
1. Effective June 30, 1978, the Board issued a prior
certification pursuant to section 1101(b) of the Code
with respect to the proposed divestiture by Schnitzler
of 1,320 shares of First State Bank of Newcastle
("Bank"), then held by Schnitzler through the pro rata
distribution to Schnitzler's stockholders of all of the
shares of Northeastern Wyoming Corporation
("Northeastern"), a corporation created and availed
of solely for the purpose of receiving Schnitzler's
shares of Bank.
2. The Board's Order certified that:
A. Schnitzler is a qualified bank holding corporation within the meaning of section 1103(b) of the Code,
and satisfied the requirements of that subsection;
B. the 1,320 shares of Bank that Schnitzler proposes to exchange for shares of Northeastern are all or
part of the property by reason of which Schnitzler controls (within the meaning of section 2(a) of the BHC
Act) a bank or a bank holding company; and
C. the exchange of the shares of Bank for the shares
of Northeastern and the distribution to the shareholders of Schnitzler of the shares of Northeastern are
necessary or appropriate to effectuate the policies of
the BHC Act.
3. The prior certification issued June 30, 1978, was
granted upon the representation of Schnitzler that it
would elect, for purposes of Part VIII of subchapter 0
of Chapter I of the Code, to have the determination of
whether property is "prohibited property" or is property eligible to be distributed without recognition of
gain under § 1101(b)(1) of the Code, made under the
BHC Act as if such act did not contain clause (ii) of
section 4(c) or the proviso of section 4(a)(2) thereof as
provided in sections 1103(g) and 1103(h) of the Code.
On August 1, 1979, Schnitzler made such an election
by resolution of its board of directors and filed a writ-
Schnitzler Corporation,
Froid, Montana
Final Certification Pursuant to the
Bank Holding Company Tax Act of 1976
1. This information derives from Schnitzler's communications with
the Board concerning its request for this certification, Schnitzler's
Registration Statement filed with the Board pursuant to the BHC Act,
and other record^ of the Board.
Legal Developments
78
[Docket No. TCR 76-163]
("BHC Act") to be held by a bank holding company)
ceased to be a bank holding company and disposed of
all banking property.
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification.1
1. Effective July 13, 1978, the Board issued a prior
certification, as corrected, pursuant to section 1101(b)
of the Code with respect to the proposed divestiture by
T-W of all of the 6,020 shares of common stock of
American State Bank of New England, New England,
North Dakota ( " B a n k " ) , currently held by T-W,
through the pro rata distribution of such shares to the
holders of common stock of T-W.2
2. The Board's Order, as corrected, certified that:
A. T-W is a qualified bank holding corporation,
within the meaning of subsection (b) of section 1103 of
the Code, and satisfies the requirements of that subsection;
B. the 6020 shares of Bank that T-W proposes to
distribute to its shareholders are all or part of the property by reason of which T-W controls (within the
meaning of section 2(a) of the BHC Act) a bank or a
bank holding company; and
C. the distribution of such shares is necessary or
appropriate to effectuate the policies of the BHC Act.
3. On December 28, 1978, T-W distributed to its
shareholders, on a pro rata basis, a total of 6,020
shares of Bank then held by T-W. T-W currently does
not hold any interest in Bank.
4. The prior certification issued on July 13, 1978,
was granted upon the representation of T-W that it will
elect, for purposes of Part VIII of subchapter 0 of
chapter 1 of the Code, to have the determination
whether the property is "prohibited property" or is
property eligible to be distributed without recognition
of gain under section 1101(b)(1) of the Code, made under the BHC Act as if the BHC Act did not contain
respectively, the proviso of section 4(a)(2) thereof and
clause (ii) of section 4(c) thereof as provided in sections 1103(g) and 1103(h) of the Code. T-W has made
such an election by resolution of its board of directors
and has filed a written statement with the Board to that
effect. Sections 1103(g) and 1103 (h) of the Code provide that a company making such elections must dispose of either all banking property or all nonbanking
property.
Trans-Western Corp., Dickinson, North Dakota ("TW"), has requested a final certification pursuant to
sections 1101(e) and 1103(g) and (h) of the Internal
Revenue Code (the "Code"), as amended by section
2(a) of the Bank Holding Company Tax Act of 1976
(the "Tax Act"), that it has (before the expiration of
the period prohibited property is permitted under the
Bank Holding Company Act (12 U.S.C. § 1841 et seq.)
1. This information derives from T-W's correspondence with the
Board concerning its request for this certification, T-W's Registration
Statement filed with the Board pursuant to the BHC Act, and other
records of the Board.
2. The prior certification issued on July 13, 1978, stated that T-W
held a total of 5,820 shares of bank that were acquired by it prior to
July 7, 1970. In August, 1978, T-W advised the Board that it held 6,020
shares rather than 5,820 shares of Bank acquired prior to July 7, 1970.
Accordingly, the Board has issued a correction to its prior certification of July 13, 1978.
ten statement with the Board to that effect. Sections
1103(g) and 1103(h) of the Code provide that a company making such election must dispose of either all
banking property or all nonbanking property.
4. On June 18, 1979, Schnitzler exchanged its 1,320
shares of Bank for all of the shares of Northeastern,
and immediately thereafter distributed to its shareholders, on a pro rata basis, all of the shares of Northeastern. Schnitzler does not currently hold any interest in Bank or Northeastern.
5. Schnitzler does not directly or indirectly own,
control or have power to vote 25 percent or more of
any class of voting securities of any bank or any company that controls a bank.
6. Schnitzler has represented that it does not control in any manner the election of a majority of directors, or exercise a controlling influence over the management or policies of Bank, Northeastern, or any
other bank or any company that controls a bank.
On the basis of the foregoing information it is hereby
certified that Schnitzler has (before the expiration of
the period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
ceased to be a bank holding company, and has disposed of all its banking property.
This certification is based upon the representations
made to the Board by Schnitzler and upon the facts set
forth above. In the event the Board should determine
that facts material to this certification are otherwise
than as represented by Schnitzler, or that Schnitzler
has failed to disclose to the Board other material facts,
it may revoke this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3)), effective December 28, 1979.
[SEAL]
(Signed) GRIFFITH L. GARWOOD,
Deputy Secretary of the Board.
Trans-Western Corp.,
Dickinson, North Dakota
Final Certification Pursuant to the
Bank Holding Company Tax Act of 1976
A 78
Federal Reserve Bulletin • January 1980
5. T-W has represented to the Board that it has disposed of all of its banking property and that it does not
own or control any shares of any bank or any company
that controls a bank.
6. T-W has represented that it does not control in
any manner the election of a majority of directors, or
exercise a controlling influence over the management
or policies of Bank or any company that controls a
bank.
On the basis of the foregoing information, it is hereby certified that:
(A) T-W has (before the expiration of the period
prohibited property is permitted under the BHC Act to
be held by a bank holding company) ceased to be a
bank holding company; and
(B) T-W has disposed of all banking property.
This certification is based upon the representations
made to the Board by T-W and upon the facts set forth
above. In the event the Board should determine that
facts material to this certification are otherwise than as
represented by T-W, or that T-W has failed to disclose
to the Board other material facts, it may revoke this
certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.3(b)(3)), effective December 28,1979.
[SEAL]
(Signed) GRIFFITH L. GARWOOD,
Deputy Secretary of the Board.
Vernon Financial Corporation
Indianapolis, Indiana
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1976
[Docket No. TCR 76-194]
Vernon Financial Corporation, Indianapolis, Indiana
("Vernon") has requested a prior certification pursuant to section 6158(a) of the Internal Revenue Code
("Code"), as amended by section 3(a) of the Bank
Holding Company Tax Act of 1976 ("Tax Act"), that
its proposed sale of 7,335 shares of common stock
("Bank Shares") of The First National Bank, North
Vernon, Indiana ( " B a n k " ) to Albert R. Jackson,
North Vernon, Indiana, for himself as principal and
agent for 27 principals (together referred to as "Buyers"), for cash is necessary or appropriate to effectuate the policies of the Bank Holding Company
Act (12 U.S.C. § 1841 et seq.) ("BHC Act").
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification:1
1. Vernon is a corporation organized and existing
under the laws of the State of Indiana.
2. Between January 30, 1969, and July 7, 1970, Vernon acquired ownership and control of 7287 of the outstanding voting shares of Bank.
3. Vernon became a bank holding company on December 31, 1970, as a result of the 1970 Amendments
to the BHC Act, by virtue of its ownership and control
at that time of more than 25 percent of the outstanding
voting shares of Bank, and it registered as such with
the Board on September 7, 1971. Vernon would have
been a bank holding company on July 7, 1970, if the
BHC Act Amendments of 1970 had been in effect on
such date, by virtue of ownership and control on that
date of more than 25 percent of the outstanding voting
shares of Bank. Vernon currently owns 7,335 shares,
representing 84.35 percent of the outstanding voting
shares, of Bank.2
4. Vernon holds property acquired by it on or before July 7, 1970, the disposition of which would be
necessary or appropriate under section 4 of the BHC
Act if Vernon were to remain a bank holding company
beyond December 31, 1980, and which property is
"prohibited property" within the meaning of section
1103(c) of the code.
5. Vernon has committed that upon consummation
of the proposed divestiture, which shall occur no later
than December 31, 1980, no person holding an office or
position (including an advisory or honorary position)
with Vernon as a director, officer, policy-making employee or consultant, or who performs (directly or
through an agent, representative or a nominee) functions comparable to those normally associated with
such office or position, will hold any such office or position or perform any such function with Bank or any
of its subsidiaries or affiliates. Vernon has further committed that none of Buyers is, or will be, indebted to
Vernon, and that none of Buyers is affiliated in any
way with Vernon.
On the basis of the foregoing information, it is hereby certified that:
(A) Vernon is a qualified bank holding corporation
within the meaning of section 1103 (b) of the Code and
satisfied the requirements of that section;
(B) Bank Shares covered by the instant request are
the property by reason of which Vernon controls
1. This information derives from Vernon's communications with
the Board concerning its request for this certification, Vernon's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. Subsequent to July 7, 1970, Vernon acquired 48 shares of Bank.
Under section 1101(c)(1) of the Code, property acquired after July 7,
1970, generally does not qualify for the tax benefits of section 1101(b)
when distributed by an otherwise qualified bank holding company.
Similarly, property sold before a prior certification is granted generally is not eligible for tax benefits. Since Vernon has not claimed that
any of the exceptions to these general rules are applicable to it, the 48
shares acquired after July 7, 1970, appear to be ineligible for tax benefits under the Tax Act.
Legal Developments
(within the meaning of section 2(a) of the BHC Act) a
bank; and
(C) The sale of such shares is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
and commitments made to the Board by Vernon and
upon the facts set forth above. In the event the Board
should determine that facts material to this certification are otherwise than as represented by Vernon, or
that Vernon has failed to disclose to the Board other
material facts or to fulfill any commitments made to
the Board in connection herewith, it may revoke the
certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority,
effective December 28, 1979.
[SEAL]
(Signed) GRIFFITH L. GARWOOD,
Deputy Secretary of the Board.
Orders Under Section 2
of Bank Holding Company Act
Evans Insurance Agency, Inc.,
Billings, Oklahoma
Order Granting Determination Under
the Bank Holding Company Act
[Docket No. 077]
Evans Insurance Agency, Inc., Billings, Oklahoma
("Agency"), a bank holding company within the
meaning of section 2(a) of the Bank Holding Company
Act of 1956, as amended (12 U.S.C. 51841(a)) ("Act"),
by virtue of its indirect control of First State Bank in
Billings, Billings, Oklahoma ("Bank"), has requested
a determination, pursuant to the provisions of section
2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)), that Agency
is not in fact capable of controlling H. B. Evans, to
whom it transferred its interest in Bank, notwithstanding the fact that H. B. Evans is an officer and director
of Agency and Bank, and is indebted to Agency.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor or has one or more directors, trustees, or
beneficiaries in common with or subject to control by
the transferor, are deemed to be indirectly owned or
controlled by the transferor unless the Board, after opportunity for hearing, determines that the transferor is
not in fact capable of controlling the transferee.
It is hereby determined that Agency is not, in fact,
capable of controlling H. B. Evans. This determination is based on the evidence of record in this matter,
79
including the following facts. Agency is a closely held
Oklahoma corporation of which H. B. Evans is the
sole shareholder and employee. Bank is located in a
rural area in Oklahoma and holds total deposits of approximately $7 million. Agency divested its interest in
Bank by distributing the Bank shares held by it on a
pro rata basis to H. B. Evans. Thus, Agency now
holds no interest in Bank. Mr. Evans and his three
sons now hold a total of 59 percent of Bank's voting
shares. Inasmuch as Mr. Evans is the sole shareholder
of Agency, and he and his spouse are its only officers
and directors, the divestiture of Bank does not appear
to have been a means for perpetuating Agency's control over Bank. On the basis of the above and other
facts of record, the Board concludes that control of
Agency resides with H. B. Evans as an individual and
that Agency does not control and is not in fact capable
of controlling Mr. Evans in his capacity as transferee
of Bank's stock or otherwise.
Accordingly, it is ordered that the request of Agency
for a determination pursuant to section 2(g)(3) be and
is hereby granted. This determination is based upon
the representations made to the Board by Agency and
Mr. Evans. In the event the Board should hereafter
determine that facts material to this determination are
otherwise than as represented, or that Agency or Mr.
Evans have failed to disclose to the Board other material facts, this determination may be revoked, and any
change in the facts or circumstances relied upon by the
Board in making this determination could result in the
Board reconsidering the determination made herein.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. §265.2(b)(1)), effective December 28, 1979.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Schnitzler Corporation,
Froid, Montana
Order Granting Determination Under
the Bank Holding Company Act
[Docket No. 076]
Schnitzler Corporation, Froid, Montana ("Schnitzler"), a bank holding company within the meaning of
section 2(a) of the Bank Holding Company Act of
1956, as amended (12 U.S.C. §1841(1)), by virtue of its
indirect control of First State Bank of Newcastle,
Newcastle, Wyoming ("Bank"), has requested a determination, pursuant to the provisions of section
2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) that Schnitzler is not in fact capable of controlling Helen Hornby,
A 80
Federal Reserve Bulletin • January 1980
her spouse or son ("Hornbys"), individuals to whom
it indirectly transferred its interest in Bank, or Northeastern Wyoming Corporation ("Northeastern"), a
corporation created to receive Schnitzler's interest in
Bank, notwithstanding the fact that the Hornbys are
officers and directors of Schnitzler, Bank, and Northeastern.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
control by the transferor, are deemed to be indirectly
owned or controlled by the transferor unless the
Board, after opportunity for hearing, determines that
the transferor is not in fact capable of controlling the
transferee.
It is hereby determined that Schnitzler is not, in
fact, capable of controlling the Hornbys or Northeastern. This determination is based on the evidence
of record in this matter, including the following facts.
Schnitzler is a small, closely held Montana corporation, all of the voting shares of which are owned or
controlled by Mrs. Hornby, her husband, son and sister. Bank is located in a rural area of Wyoming, and
holds total deposits of approximately $23 million.
Schnitzler divested its interest in Bank by forming a
new one-bank holding company, Northeastern, and
transferring the shares of Bank to it. Schnitzler then
distributed the shares of Northeastern on a pro rata
basis to its shareholders, the Hornbys. Thus, Schnitzler now holds no interest in Bank. In addition to the
shares of Bank received from Schnitzler, the Hornbys
owned or controlled 1.5 percent of the outstanding
shares of Bank, and they now hold a total of 67.5 percent of Bank, both directly and through Northeastern.
Inasmuch as the Hornbys own or control all of
Schnitzler's voting shares, and also represent the majority of its directors and officers, the divestiture of
Bank does not appear to have been a means for perpetuating Schnitzler's control over Bank. On the basis of
the above and other facts of record, the Board concludes that control of Schnitzler resides with the Hornbys as individuals, and that Schnitzler does not control
and is not a fact capable of controlling the Hornbys or
Northeastern in their capacity as transferees of Bank's
stock or otherwise.
Accordingly, it is ordered, that the request of
Schnitzler for a determination pursuant to section
2(g)(3) be and hereby is granted. This determination is
based upon the representations made to the Board by
Schnitzler and the Hornbys. In the event the Board
should hereafter determine that facts material to this
determination are otherwise than as represented, or
that Schnitzler or the Hornbys have failed to disclose
to the Board other material facts, this determination
may be revoked, and any change in the facts or circumstances relied upon by the Board in making this
determination could result in the Board reconsidering
the determination made herein.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. §265.2(b)(1)), effective December 18, 1979.
[SEAL]
(Signed) GRIFFITH L . GARWOOD,
Deputy Secretary of the Board.
Trans-Western Corp.,
Dickinson, North Dakota
Order Granting Determination Under
the Bank Holding Company Act
[Docket No. 043]
Trans-Western Corp., Dickinson, North Dakota ("TW"), a bank holding company within the meaning of
section 2(a) of the Bank Holding Company Act of
1956, as amended (12 U.S.C. § 1841(a)), by virtue of its
control of American State Bank of New England,
North Dakota ("Bank"), has requested a determination, pursuant to section 2(g)(3) of the Act (12 U.S.C.
§ 1841(g)(3)) that T-W is not in fact capable of controlling Kathleen O'Connell or her husband, Maurice
O'Connell (the "O'Connells") individuals to whom it
transferred its interest in Bank, or AMERICAN BANCOR, LTD., Dickinson, North Dakota ("AMERICAN"), a North Dakota Corporation created to receive the O'Connell's interest in Bank, and
AMERICAN.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
control by the transferor are deemed to be indirectly
owned or controlled by the transferor unless the
Board, after opportunity for a hearing, determines that
the transferor is not in fact capable of controlling the
transferee.
It is hereby determined that T-W is not, in fact, capable of controlling the O'Connells or AMERICAN.
This determination is based upon the evidence of record in this matter, including the following facts. Bank
is located in a predominantly rural area of North Dakota and holds total deposits of approximately $7.7
million. T-W is a small closely-held North Dakota corporation, all of the voting shares of which are owned
or controlled by Kathleen O'Connell (94.71 percent)
and her husband, Maurice O'Connell (5.29 percent).
T-W divested its interest in Bank by a pro rata distri-
Legal Developments
bution of Bank's shares to T-W's shareholders. All of
the shareholders of Bank then exchanged their shares
of Bank for shares of a new corporation, AMERICAN, which was formed to control Bank and the two
other banks previously owned by the principals of TW in their individual capacities. Therefore, T-W currently holds no interest in Bank. The O'Connells now
own a total of 80.3 percent of AMERICAN, which
controls 100 percent of Bank. Inasmuch as the
O'Connells own or control all of T-W's voting shares,
the divestiture of Bank does not appear to have been a
means of perpetuating T-W's control over Bank. On
the basis of the above and other facts of record, the
Board concludes that control of T-W resides with the
O'Connells as individuals, and that T-W does not control and is not in fact capable of controlling AMERICAN or the O'Connells in their capacity as transferees
of Bank's stock or otherwise.
Accordingly, it is ordered that the request of T-W
ORDERS APPROVED
81
for a determination pursuant to section 2(g)(3) be and
hereby is granted. This determination is based upon
the representations made to the Board by T-W,
AMERICAN, and the O'Connells. In the event the
Board should hereafter determine that facts material to
this determination are otherwise than as represented,
or that T-W, AMERICAN, or the O'Connells have
failed to disclose to the Board other material facts, this
determination may be revoked, and any change in the
facts or circumstances relied upon by the Board in
making this determination could result in the Board reconsidering the determination made herein.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. §265.2(b)(1)), effective December 28, 1979.
[SEAL]
UNDER BANK HOLDING COMPANY
(Signed) GRIFFITH L. GARWOOD,
Deputy Secretary of the Board.
ACT
By the Board of Governors
During December 1979 the Board of Governors approved the applications listed below. Copies are available
upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Clover Bottom Estates, Inc.,
Hendersonville, Tennessee
First American Bank Corporation,
Kalamazoo, Michigan
First City Bancorporation of Texas, Inc.,
Houston, Texas
Grandville Financial Holdings Limited
Hong Kong, B.C.C., et al.
Sabrina Properties, N.V. Curacao,
Netherlands Antilles
Eagle National Holding Company, Inc.,
Miami, Florida
Southwest Bancshares, Inc., Houston,
Texas
Bank(s)
Bank of Hendersonville, Hendersonville,
Tennessee
Farmers and Merchants State Bank of
Sebawaing, Michigan, Sebawaing,
Michigan
First City Bank Greenspoint, N. A.,
Houston, Texas
Independence Bank, Encino, California
Board action
(effective
date)
December 21, 1979
December 4, 1979
December 20,1979
December 3, 1979
Central National Bank of Miami,
Miami, Florida
December 21,1979
The Woodlands National Bank, The
Woodlands, Montgomery County,
Texas
December 28,1979
A 82
Federal Reserve Bulletin • January 1980
Sections 3 and 4
Applicant
Callao Banschares, Inc., Callao,
Missouri
By Federal Reserve
Bank(s)
Callao Community Bank,
Callao, Missouri
Reserve
Bank
St. Louis
Effective
date
December 24, 1979
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
Bank(s)
Bradley Bancorporation, Inc.,
Tomahawk, Wisconsin
Buffalo National Bancshares, Inc.,
Buffalo, Colorado
Central Bancorporation, Inc., Denver,
Colorado
CITIZENS STATE
BANCORPORATION
Petersburg, North Dakota
Colonial American Bankshares
Corporation, Roanoke, Virginia
Bradley Bank
Tomahawk, Wisconsin
Buffalo National
Buffalo, Minnesota
First National Bank in Aspen
Aspen, Colorado, et al.
Citizens State Bank of
Petersburg
Petersburg, North Dakota
The Mountain National Bank of
Clifton Forge,
Clifton Forge, Va.
Farmers State Bank of
Carthage
Carthage, South Dakota
Crested Butte State Bank,
Crested Butte, Colorado
Bank of Hampton, Hampton,
Georgia
Bank of Beulah
Beulah, North Dakota
State Bank of Delano
Delano, Minnesota
Citizens Bank
Ava, Missouri
Citizens Bank of
Elizabethtown,
Elizabethtown, Kentucky
Syracuse Bancorp, Inc.,
Syracuse, Indiana
First National Bank of Cicero,
Cicero, Illinois
State Bank of Burleigh County
Trust Company, Bismarck,
North Dakota
The First State Bank,
Kiowa, Kansas
Carthage Holding Company, Inc.,
Carthage, South Dakota
Crested Butte Bankshares, Inc.,
Crested Butte, Colorado
Commercial Bankshares, Inc., Griffin,
Georgia
D & B Holding Company, Inc.,
Beulah, North Dakota
Delano State Agency, Inc., Delano,
Minnesota
Douglas County Bancshares, Inc.,
Kansas City, Missouri
Elizabethtown, Bancshares, Inc.,
Elizabethtown, Kentucky
First Charter Financial Corporation,
Syracuse, Indiana
FIRST CICERO BANC
CORPORATION, Chicago, Illinois
First Dakota Financial, Bismarck,
North Dakota
First Kiowa Bancshares, Inc., Kiowa,
Kansas
Reserve
Bank
Effective
date
Minneapolis
December 3,1979
Minneapolis
December 28, 1979
Kansas City
December 26,1979
Minneapolis
December 27,1979
Richmond
December 14, 1979
Minneapolis
December 19, 1979
Kansas City
December 13, 1979
Atlanta
November 27, 1979
Minneapolis
December 27, 1979
Minneapolis
December 20,1979
St. Louis
December 10,1979
St. Louis
December 21,1979
Chicago
December 12, 1979
Chicago
December 20,1979
Minneapolis
December 3,1979
Kansas City
December 11,1979
Legal Developments
Section
3—Continued
Applicant
General Bancorporation, Inc.,
Broomfield, Colorado
Hoffman Banschares, Inc., Hoffman,
Minnesota
J. J. Flynn Investment Co. Inc.,
Parsons, Kansas
Marshall-Putnam County
Bancorporation, Inc., Varna, Illinois
Osakis Bancshares, Osakis, Minnesota
Ranger Financial Corporation, Ranger,
Texas
Security Bancorp, Inc., Southgate,
Michigan
Security Bancorp, Inc., Southgate,
Michigan
Texas Security Bancshares, Inc., Fort
Worth, Texas
Verndale Bancshares, Inc., Verndale,
Minnesota
Bank(s)
Broomfield State Bank
Broomfield, Colorado
Farmers State Bank
Hoffman, Minnesota
The State Bank
Parsons, Kansas
Marshall County State Bank,
Varna Illinois
First National Bank of Osakis,
Osakis, Minnesota
Ranger National Bank
Corporation
Ranger, Texas
Keatington State Bank, Lake
Orion, Michigan
Security Bank of Richmond,
Richmond, Michigan
Central Bank and Trust, Fort
Worth, Texas
North Fort Worth Bank, Fort
Worth, Texas
The First National Bank of
Verndale, Verndale,
Minnesota
Reserve
Bank
Effective
date
Kansas City
December 14, 1979
Minneapolis
December 18,1979
Kansas City
December 20,1979
Chicago
December 17, 1979
Minneapolis
December 3, 1979
Dallas
December 18,1979
Chicago
December 21, 1979
Chicago
December 21,1979
Dallas
December 12,1979
Minneapolis
Section 4
Applicant
First Bankshares Corp. of S.C.,
Columbia, South Carolina
First Tennessee National Corporation,
Memphis, Tennessee
Nonbanking
company
(or activity)
First National Credit
Life Insurance Company,
Columbia, South Carolina
Norlen Life Insurance
Company, Phoenix, Arizona
Reserve
Bank
Effective
date
Richmond
December 5, 1979
St. Louis
December 27, 1979
ORDER APPROVED UNDER BANK MERGER ACT
Applicant
The Midwest Bank and Trust
Company, Cleveland, Ohio
Bank(s)
The Firelands Community
Bank, Huron, Ohio
Reserve
Bank
Cleveland
Effective
date
December 3,1979
83
A 84
Federal Reserve Bulletin • January 1980
PENDING CASES INVOLVING
THE BOARD OF GOVERNORS
Does not include suits against the Federal Reserve
Banks in which the Board of Governors is not named a
party.
Boggs, et al. v. Board of Governors, filed October
1979, U.S.C.A. for the Eighth Circuit.
Independent Bank Corporation v. Board of Governors, filed October 1979, U.S.C. A. for the Sixth Circuit.
Wiley v. United States, et al., filed September 1979,
U.S.D.C. for the District of Columbia.
County National Bancorporation and TGB Co. v.
Board of Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
State of Indiana v. The United States of America, et
al., filled September 1979, U.S.D.C. for the District
of Columbia.
Edwin F. Gordon v. Board of Governors, et al., filed
August 1979, U.S.D.C. for the Northern District of
Georgia.
Edwin F. Gordon v. Board of Governors, et al., filed
August 1979, U.S.C.A. for the Fifth Circuit.
American Bankers Association v. Board of Governors,
et al, filed August 1979, U.S.D.C. for the District of
Columbia.
Gregory v. Board of Governors, filed July 1979,
U.S.D.C. for the District of Columbia.
Donald W. Riegel, Jr. v. Federal Open Market Committee, filed July 1979, U.S.D.C. for the District of
Columbia.
Connecticut Bankers Association, et al., v. Board of
Governors, filed May 1979, U.S.C.A. for the District of Columbia.
Ella Jackson et al., v., Board of Governors, filed May
1979, U.S.C.A. for the Fifth Circuit.
Memphis Trust Company v. Board of Governors, filed
May 1979, U.S.C.A. for the Sixth Circuit.
Independent Insurance Agents of America, et al., v.
Board of Governors, filed May 1979, U.S.C.A. for
the District of Columbia.
Independent Insurance Agents of America, et al., v.
Board of Governors, filed April 1979, U.S.C.A. for
the District of Columbia.
Independent Insurance Agents of America, et al., v.
Board of Governors, filed March 1979, U.S.C.A. for
the District of Columbia.
Credit and Commerce American Investment, et al., v.
Board of Governors, filed March 1979 U.S.C.A. for
the District of Columbia.
Consumers Union of the United States, v. G. William
Miller, et al., filed December 1978, U.S.D.C. for the
District of Columbia.
Manchester-Tower Grove Community Organization!
ACORN v. Board of Governors, filed September
1978, U.S.C.A. for the District of Columbia.
Beckley v. Bord of Governors, filed July 1978,
U.S.C.A. for the Northern District of Illinois.
Independent Bankers Association of Texas v. First
National Bank in Dallas, et al., filed July 1978,
U.S.D.C. for the Northern District of Texas.
Mid-Nebraska Bancshares, Inc. v. Board of Governors, filed July 1978, U.S.C.A. for the District of
Columbia.
Security Bancorp and Security National Bank v.
Board of Governors, filed March 1978, U.S.C.A. for
the Ninth Circuit.
Vickars-Henry Corp. v. Board of Governors, filed December 1977, U.S.C.A. for the Ninth Circuit.
Investment Company Institute v. Board of Governors,
filed September 1977, U.S.D.C. for the District of
Columbia.
Roberts Farms, Inc. v. Comptroller of the Currency,
et al, filed November 1975, U.S.D.C. for the Southern District of California.
A1
Financial and Business Statistics
CONTENTS
Domestic
A3
A4
A5
A6
Financial
Statistics
WEEKLY REPORTING
Monetary aggregates and interest rates
Factors affecting member bank reserves
Reserves and borrowings of member banks
Federal funds transactions of money market
banks
POLICY
INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Member bank reserve requirements
A10 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A11 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A12 Condition and Federal Reserve note statements
A13 Maturity distribution of loan and security
holdings
COMMERCIAL
BANKS
Assets and liabilities
A20 All reporting banks
A21 Banks with assets of $ 1 billion or more
A22 Banks in New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A24 Major nondeposit funds of commercial banks
A25 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A25 Commercial paper and bankers dollar
acceptances outstanding
A26 Prime rate charged by banks on short-term
business loans
A26 Terms of lending at commercial banks
All Interest rates in money and capital markets
A28 Stock market—Selected statistics
A29 Savings institutions—Selected assets and
MONETARY
AND CREDIT
A13 Bank debits and deposit turnover
A14 Money stock measures and components
A15 Aggregate reserves and deposits of member
banks
A15 Loans and investments of all commercial banks
COMMERCIAL
BANK
ASSETS
AND
LIABILITIES
A16 Last-Wednesday-of-month series
A17 Call-date series
A18 Detailed balance sheet, September 30,1978
liabilities
AGGREGATES
FEDERAL
A30
A31
A32
A32
FINANCE
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A33 U.S. government marketable securitiesOwnership, by maturity
A34 U.S. government securities dealers—
Transactions, positions, and financing
A3 5 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin • January 1980
International
SECURITIES MARKETS AND
CORPORATE FINANCE
A36 New security issues—State and local
governments and corporations
A37 Open-end investment companies—Net sales and
asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and liabilities
A38 Business expenditures on new plant and
equipment
A39 Domestic finance companies—Assets and
liabilities; business credit
REAL
A40 Mortgage markets
A41 Mortgage debt outstanding
INSTALLMENT
A54
A55
A55
A56
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign branches of U.S. banks—Balance sheet
data
A58 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS
IN THE UNITED
STATES
A58
A59
A61
A62
ESTATE
CONSUMER
Statistics
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches
CREDIT
A42 Total outstanding and net change
A43 Extensions and liquidations
FLOW OF FUNDS
A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to credit
markets
SECURITIES HOLDINGS
AND
TRANSACTIONS
A64 Marketable U.S. Treasury bonds and notesForeign holdings and transactions
A64 Foreign official assets held at Federal Reserve
Banks
A 65 Foreign transactions in securities
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
Domestic
Nonfinancial
Statistics
A46 Nonfinancial business activity—Selected
measures
A46 Output, capacity, and capacity utilization
A47 Labor force, employment, and unemployment
A48 Industrial production—Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving
A66 Liabilities to unaffiliated foreigners
A67 Claims on unaffiliated foreigners
INTEREST AND EXCHANGE
RATES
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular Presentation
Statistical
Releases
and
Domestic Financial Statistics
A3
1.10 MONETARY AGGREGATES AND INTEREST RATES
1979
1978
1979
Item
Q4
Q2
Q1
Q3
July
Aug.
Sept.
Oct.
Nov.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
1
2
3
4
Member bank reserves
Total
Required
Nonborrowed
Monetary base 2
2.4
2.2
4.7
8.5
-3.0
-2.9
-3.4
5.6
-5.0
-4.8
-8.8
4.0
5
6
7
8
Concepts of money 3
M-l
M-l +
M-2
M-3
4.1
2.7
7.6
9.3
-2.1
-5.0
1.8
4.7
7.6
3.7
8.6
7.9
Time and savings deposits
Commercial banks
9
Total
10
Savings
11
Other time
12 Thrift institutions 4
12.3
.2
18.2
11.6
8.4
-9.6
15.6
8.8
13 Total loans and investments at commercial banks 5
12.7
13.3
6.3
6.0
8.2
9.8
12.7
13.1
20.7
11.2
7.2
7.0
10.0
12.1
11.5
12.5
4.2
13.9
9.7
8.3'
12.0
10.5
10.4
10.2
12.9
11.4
6.8
6.7'
11.0
10.0
11.2
7.2
12.4'
10.9
1.2
-3.1
18.5
6.8
9.0
5.5
19.2
8.4
12.2
9.4
18.1 r
9.2
14.6
6.6
19.4 r
8.4
15.1
.0
21.2
8.9
11.9
15.8
13.4
11.6
21.7
1979
Q1
Q2
20.9'
18.4 '
1.3'
10.7'
4.5
5.6
8.1
4.6
2.5
-4.8'
8.5'
7.1'
1.0
-11.8
6.1
5.5
16.6
-16.3'
32.0
5.2'
15.5
-34.7
37.9
4.3
6.4
-0.5
1979
Q3
Q4
Aug.
Sept.
Oct.
Nov.
Dec.
Interest rates (levels, percent per annum)
14
15
16
17
Short-term rates
Federal funds <*
Federal Reserve discount 7
Treasury bills (3-month market 9 yield) 8
Commercial paper (3-month)8'
18
19
20
Long-term rates
Bonds
U.S. government J o
11
State and local government
Aaa utility (new issue) 1 2
21 Conventional mortgages 1 3
10.07
9.50
9.38
10.04
10.18
9.50
9.38
9.85
10.94
10.21
9.67
19.64
13.58
11.92
11.84
13.35
10.94
10.24
9.52
10.43
11.43
10.70
10.26
11.63
13.77
11.77
11.70
13.23
13.18
12.00
11.79
13.57
13.78
12.00
12.04
13.24
9.03
6.37
9.58
9.08
6.22
9.66
9.03
6.28
9.64
10.18
7.20
11.21
8.97
6.20
9.48
9.21
6.52
9.93
9.99
7.08
10.97
10.37
7.30
11.42
10.18
7.22
11.25
10.33
10.35
11.13
12.38
11.10
11.35
12.15
12.50
-12.50
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter. Growth rates for
member bank reserves are adjusted for discontinuities in series that result
from changes in Regulations D and M.
2. Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier); currency outside the U.S.
Treasury, Federal Reserve Banks and the vaults of commercial banks;
and vault cash of nonmember banks.
3. M-l equals currency plus private demand deposits adjusted.
M-l + equals M-l plus savings deposits at commercial banks, NOW
accounts at banks and thrift institutions, credit union share draft accounts, and demand deposits at mutual savings banks.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CDs).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
4. Savings and loan associations mutual savings banks, and credit
unions.
5. Quarterly changes calculated from figures shown in table 1.23.
6. Seven-day averages of daily effective rates (average of the rates on
a given date weighted by the volume of transactions at those rates).
7. Rate for the Federal Reserve Bank of New York.
8. Quoted on a bank-discount basis.
9. Beginning Nov. 1977, unweighted average of offering rates quoted
by at least five dealers. Previously, most representative rate quoted by
these dealers. Before Nov. 1979, data shown are for 90- to 119-day
maturity.
10. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
11. Bond Buyer series for 20 issues of mixed quality.
12. Weighted averages of new publicly offered bonds rated Aaa, Aa
and A by Moody's Investors Service and adjusted to an Aaa basis.
Federal Reserve compilations.
13. Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept. of Housing and Urban Development.
A4
DomesticNonfinancialStatistics • January 1980
1.11 FACTORS AFFECTING MEMBER BANK RESERVES
Millions of dollars
Monthly averages of daily
figures
Weekly averages of daily figures for weeks ending—
1979
1979
Factors
Nov. I4P Nov. 21? Nov. 28*>
Oct.p
Nov.f
Dec.?
1 Reserve Bank credit outstanding
134,923
136,696
140,008
135,454
138,522
2 U.S. government securities 1
3
Bought outright
4
Held under repurchase agreements
5 Federal agency securities
6
Bought outright
7
Held under repurchase agree-
113,775
113,282
115,240
114,815
117,821
117,195
114,620
114,620
116,046
116,046
493
8,414
8,222
425
8,363
8,221
626
8,455
8,218
0
8,221
8,221
0
8,221
8,221
192
142
237
0
173
2,022
6,116
4,423
116
1,908
6,119
4,950
353
1,454
6,499
5,426
0
1,858
5,725
5,031
12 Gold stock
13 Special drawing rights certificate
11,205
11,159
11,112
11,164
14 Treasury currency outstanding
1,800
12,745
1,800
12,828
1,800
12,913
1,800
12,816
119,813
347
121,397
397
123,836
426
3,090
310
645
3,050
353
294
2,963
318
355
Dec. 5?
Dec. 12 P Dec. 19P
Dec. 26P
138,192
137,877
138,523
139,051
141,347
115,232
115,232
117,138
116,554
116,976
116,976
117,538
117,326
118,393
117,328
0
8,221
8,221
584
8,732
8,221
0
8,219
8,219
212
8,353
8,216
1,065
8,401
8,216
0
0
511
0
137
185
0
1,865
7,226
5,164
0
2,021
7,548
5,170
195
1,819
5,037
4,956
0
1,291
6,629
5,408
31
1,684
6,128
5,318
806
1,224
6,857
5,667
11,164
11,142
11,112
11,112
11,112
11,112
1,800
12,834
1,800
12,837
1,800
12,933
1,800
12,896
1,800
12,911
1,800
12,938
121,230
397
121,744
397
122,252
403
122,314
421
123,030
427
123,682
431
124,738
430
2,851
350
253
3,215
386
275
3,098
341
346
2,595
396
363
3,093
308
297
2,640
326
332
3,095
266
316
SUPPLYING RESERVE FUNDS
8 Acceptances
10 Float
11 Other Federal Reserve assets
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than member bank
reserves, with Federal Reserve
Banks
17 Treasury
19
Other
20 Other Federal Reserve liabilities and
capital
21 Member bank reserves with Federal
Reserve Banks
4,870
4,894
5,349
4,666
5,085
5,190
5,195
5,422
5,149
5,445
31,599
32,098
32,585
31,488
33,218
32,341
32,436
31,752
32,314
32,908
End-of-month figures
Wednesday figures
1979
1979
Nov. 14 V Nov. 21? Nov. 28 p
Dec.
Dec. 12*
Dec. 19? Dec. 26P
140,705
135,832
138,113
139,749
137,758
138,355
137,207
137,836
117,458
116,291
113,147
113,147
114,814
114,814
116,239
116,239
115,236
115,236
116,311
116,311
115,186
115,186
113,057
112,856
559
9,194
8,221
1,167
8,709
8,216
0
8,221
8,221
0
8,221
8,221
0
8,221
8,221
0
8,221
8,221
0
8,216
8,216
0
8,216
8,216
201
8,331
8,216
973
493
0
0
0
0
0
0
115
0
1,425
6,882
6,157
0
2,240
7,605
5,233
0
4,715
5,367
5,207
0
2,244
6,471
5,586
0
1,810
6,768
5,250
0
1,561
6,690
5,554
415
1,982
8,030
6,021
Oct.*
Nov.*7
Dec.?
22 Reserve bank credit outstanding
135,005
138,008
23 U.S. government securities 1
24
Bought outright
25
Held under repurchase agreements
26 Federal agency securities
27
Bought outright
28
Held under repurchase agree-
114,580
114,455
118,087
117,528
125
8,278
8,221
57
SUPPLYING RESERVE FUNDS
Acceptances
Loans
Float
Other Federal Reserve assets
317
2,672
4,685
4,473
269
2,034
3,729
4,695
704
1,454
6,767
5,613
33 Gold stock
34 Special drawing rights certificate
account
35 Treasury currency outstanding
11,194
11,112
11,112
11,164
11,164
11,112
11,112
11,112
11,112
11,112
1,800
12,937
1,800
13,020
1,800
12,947
1,800
12,834
1,800
12,834
1,800
12,842
1,800
12,868
1,800
12,895
1,800
12,937
1,800
12,947
120,125
394
122,082
427
125,473
426
121,881
398
122,275
405
122,682
373
122,806
425
123,849
429
124,449
431
125,595
430
2,209
352
286
2,590
490
352
4,075
429
1,412
2,981
379
252
3,402
294
267
2,941
320
312
2,467
329
288
2,610
270
305
3,061
274
303
2,883
216
370
29
30
31
32
ABSORBING RESERVE FUNDS
36 Currency in circulation
37 Treasury cash holdings
Deposits, other than member bank
reserves, with Federal Reserve
Banks
38
Treasury
39
Foreign
40
Other
41 Other Federal Reserve liabilities and
capital
42 Member bank reserves with Federal
Reserve Banks
5,011
5,378
4,957
4,989
4,993
5,124
4,868
4,946
5,235
5,681
32,561
32,617
29,792
30,751
32,275
33,750
32,354
31,753
29,302
28,520
1. Includes securities loaned—fully guaranteed by U.S. government
securities pledged with Federal Reserve Banks—and excludes (if any)
securities sold and scheduled to be bought back under matched salepurchase transactions.
NOTE. For amounts of currency and coin held as reserves, see table
1.12.
Member Banks
1.12
RESERVES A N D BORROWINGS
A5
Member Banks
Millions of dollars
Monthly averages of daily figures
Reserve classification
All member banks
Reserves
At Federal Reserve B a n k s . .
Currency and coin
Total held i
Required
Excess 1
Borrowings at Reserve B a n k s 2
6
Total
7
Seasonal
1
2
3
4
5
Large banks in New York City
8 Reserves held
9
Required
10
Excess
11 Borrowings 2
Large banks in Chicago
12 Reserves held
13
Required
14
Excess
15 Borrowings 2
Other large banks
16 Reserves held
17
Required
18
Excess
19 Borrowings 2
All other banks
20 Reserves held
21
Required
22
Excess
23 Borrowings 2
Edge corporations
24 Reserves held
25
Required
26
Excess
U.S. agencies and branches
27 Reserves held
28
Required
29
Excess
1979
1978
Aug.
Sept.
Oct.
Nov. 35
30,191
10,552
40,900
40,710
190
30,006
10,523
40,687
40,494
193
29,986
10,726
40,868
40,863
5
31,599
10,681
42,423
42,002
421
32,098
10,740
42,979
42,770
209
1,396
188
1,179
168
1,097
177
1,344
169
2,022
161
1,908
141
6,658
6,544
114
150
6,346
6,415
-69
78
6,605
6,586
19
97
6,408
6,427
-19
79
6,437
6,378
59
87
6,655
6,851
-196
183
6,695
6,932
-237
139
1,801
1,824
-23
18
1,730
1,712
18
60
1,726
1,697
29
64
1,709
1,713
-4
45
1,694
1,706
1,654
1,760
-106
1,790
1,859
-69
136
1,869
1,950
16,446
16,342
104
276
15,948
16,014
15,926
15,893
33
721
15,989
15,877
112
586
16,374
16,339
35
517
16,370
16,321
49
484
16,426
16,491
-65
600
16,519
16,796
-277
856
16,663
17,000
-337
804
16,099
15,962
137
489
15,993
15,873
16,068
15,946
122
846
16,044
15,895
149
668
16,212
16,072
140
520
16,215
16,040
175
528
16,351
16,234
117
577
16,495
16,424
71
847
16,496
16,420
76
847
90
72
18
308
287
21
Dec.
Apr.
May
June
31,158
10,330
41,572
41,447
125
30,675
9,737
40,546
40,548
30,208
10,044
40,382
40,095
287
29,822
10,154
40,105
39,884
221
874
134
897
134
1,777
173
7,120
7,243
-123
99
6,804
6,837
-33
61
1,907
1,900
7
10
- 2
-66
271
120
547
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.
July
n.a.
n.a.
- 1 2
6
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.
Dec.*5
-81
118
185
181
4
n.a.
n.a.
n.a.
Weekly averages of daily figures for week (in 1979) ending
All member banks
Reserves
At Federal Reserve B a n k s . .
Currency and coin
Total held l
Required
Excess 1
Borrowings at Reserve Banks 2
35
Total
36
Seasonal
30
31
32
33
34
Large banks in New York City
37 Reserves held
38
Required
39
Excess
40 Borrowings 2
Large banks in Chicago
41 Reserves held
42
Required
43
Excess
44 Borrowings 2
Other large banks
45 Reserves held
46
Required
47
Excess
48 Borrowings 2
All other banks
49 Reserves held
50
Required
51
Excess
52 Borrowings 2
Edge corporations
53 Reserves held
54
Required
55
Excess
U.S. agencies and branches
56 Reserves held
57
Required
58
Excess
Oct. 24*>
Oct. 31 P
31,599
9,942
41,684
41,533
151
32,587
10,891
43,621
43,285
336
Nov.
1P
Dec. 5*
Dec. 12P
Dec. 19»
32,436
11,038
43,614
43,379
235
31,752
11,772
43,668
33,218
10,045
43,406
476
31,488
11,242
42,871
42,618
253
115
32,341
10,542
43,022
42,887
135
586
32,314
11,341
43,816
43,697
119
2,960
164
3,056
187
1,928
151
1,858
133
1,865
151
2,021
136
1,819
100
1,291
80
1,684
83
410
539
129
308
6,753
7,136
383
96
6,477
6,729
-252
78
6,578
6,804
6,888
7,316
-428
149
6,699
6,779
7,082
7,290
239
7,275
7,271
4
136
7,439
7,506
-67
12
795
,830
-35
226
1,860
1,866
1,850
1,951
309
1,884
1,879
5
2
1,881
1,994
-113
75
1,875
1,960
-85
424
1,940
2,005
-65
69
1,843
1,884
-41
178
1,967
2,054
-87
74
,447
,279
•832
,265
16,447
17,279
-832
1,391
17,093
16,843
250
835
16,296
16,744
-448
997
16,450
17,142
-692
779
16,969
17,197
601
16,946
17,261
-315
814
17,181
17,245
-64
584
16,980
17,357
-377
990
,508
,686
•178
,161
16,508
16,686
-178
1,260
16,371
16,364
7
1,013
16,460
16,236
224
754
16,507
16,488
19
862
16,567
16,565
2
757
16,627
16,518
109
800
16,301
16,342
-41
529
16,563
16,471
92
608
396
318
78
309
294
15
312
282
30
292
276
16
310
298
12
304
286
18
349
298
51
319
302
17
609
601
79
75
4
91
39
38
31
23
33
7
26
- 6
n.a.
n.a.
n.a.
31,396
11,046
42,585
42,109
n.a.
n.a.
n.a.
1. Adjusted to include waivers of penalties for reserve deficiencies in
accordance with Board policy, effective Nov. 19, 1975, of permitting
transitional relief on a graduated basis over a 24-month period when a
nonmember bank merges into an existing member bank, or when a
FRASER
Digitized for
Nov. 14P Nov. 21 P Nov. 28P
-226
107
-101
0
43,291
- 8 0
-228
1
43,082
-208
Dec. 26P
nonmember bank joins the Federal Reserve System. For weeks for which
figures are preliminary, figures by class of bank do not add to total
because adjusted data by class are not available.
2. Based on closing figures.
A6
1.13
DomesticNonfinancialStatistics • January 1980
FEDERAL FUNDS TRANSACTIONS
Money Market Banks
Millions of dollars, except as noted
1979, week ending Wednesday
Type
Oct. 31
Nov. 14
Nov. 7
Nov. 21
Nov. 28
Dec. 5
Dec. 12
Dec. 19
Dec. 26
Total, 46 banks
Basic reserve position
1 Excess reserves 1
194
288
113
16
-32
46
77
32
186
LESS:
2 Borrowings at Federal Reserve
Banks
3 Net interbank federal funds
transactions
EQUALS: Net surplus, or deficit (—)
4 Amount
5 Percent of average required
Interbank federal funds
Gross transactions
7
213
438
243
757
489
332
362
128
22,729
22,817
20,945
16,939
18,871
24,250
22,439
21,490
-21,008
-22,653
-23,142
-21,173
-17,728
-19,314
-24,504
-22,770
-21,433
113.8
126.4
128.6
112.8
96.9
102.8
130.8
119.0
114.6
27,700
7,367
5,737
28,973
6,244
5,308
30,733
7,915
5,890
23,397
7,451
5,614
25,712
8,773
6,694
27,432
8,561
6,113
31,488
7,239
6,584
29,642
7,203
6,633
28,792
7,301
7,039
21,963
1,630
23,665
937
24,843
2,025
22,783
1,838
19,018
2,079
21,318
2,448
24,904
655
23,009
569
21,753
262
1,800
1,285
514
2,322
1,546
776
2,121
980
1,141
2,293
1,177
1,116
2,488
1,115
1,373
2,676
2,383
293
2,322
1,515
808
2,347
1,637
710
3,036
1,723
1,314
87
41
40
transactions
Sales
Net transactions
10
869
20,332
Sales of net selling banks
Related transactions with U.S.
government securities dealers
8 banks in New York City
Basic reserve position
202
92
46
18
-20
48
LESS:
15 Borrowings at Federal Reserve
Banks
16 Net interbank federal funds
58
0
0
142
221
71
0
0
83
5,656
6,256
8,122
5,682
3,027
3,598
6,890
4,849
4,617
-5,512
-6,165
-8,076
-5,805
-3,268
-3,621
-6,803
-4,807
-4,660
86.4
101.3
131.8
88.1
53.6
55.5
103.7
71.0
72.8
7,300
1,645
1,459
7,454
1,198
1,198
9,004
882
881
6,958
1,276
1,276
5,178
2,151
1,828
6,184
2,586
1,664
8,775
1,885
1,885
7,084
2,236
2,014
6,438
1,822
1,822
Sales of net selling banks
5,841
186
6,256
0
8,122
0
5,681
0
3,350
323
4,520
923
6,890
0
5,070
222
4,617
0
Related transactions with U.S.
government securities dealers
24 Loans to dealers 3
25 Borrowings from dealers 4
26 Net loans
1,107
595
512
1,407
698
709
1,400
543
857
1,489
557
932
1,722
557
1,165
1,874
559
1,315
1,594
545
1,049
1,584
694
890
2,074
818
1,256
-9
-9
146
EQUALS: Net surplus, or deficit (—)
18 Percent of average required
Interbank federal funds
Gross transactions
transactions
Net transactions
23
38 banks outside New York City
Basic reserve position
27 Excess reserves 1
-8
196
67
-2
-12
-2
LESS:
28 Borrowings at Federal Reserve
Banks
29 Net interbank federal funds
transactions
EQUALS: Net surplus, or deficit (—)
30 Amount
31 Percent of average required
reserves
811
213
438
101
536
418
332
362
45
14,677
16,472
14,695
15,264
13,912
15,274
17,360
17,591
16,874
15,496
-16,488
-15,066
-15,367
-14,460
-15,694
-17,701
-17,963
-16,773
128.4
139.3
126.9
126.2
118.6
127.8
145.3
145.4
136.4
20,399
5,723
4,278
21,519
5,047
4,110
12,729
7,034
5,009
21,439
6,176
4,338
20,535
6,623
4,866
21,248
5,974
4,450
22,713
8,354
4,699
22,558
4,967
4,619
22,353
5,480
5,217
32
33
Interbank federal funds
Gross transactions
Purchases
Sales
transactions
35
36
Net transactions
Purchases of net buying banks
Sales of net selling banks
16,122
1,444
17,409
937
16,721
2,025
17,101
1,838
15,669
1,757
16,798
1,525
18,014
655
17,939
348
17,136
262
Related transactions with U.S.
government securities dealers
37 Loans to dealers 3
38 Borrowings from dealers 4
39 Net loans
693
691
2
915
848
68
721
437
284
804
621
184
766
558
203
802
1,824
-1,021
728
969
-241
762
943
-180
962
905
57
For notes see end of table.
Federal Funds
1.13
A7
Continued
Millions of dollars, except as noted
1979, week ending Wednesday
Type
Oct. 31
Nov. 7
Nov. 14
Nov. 2 1
Nov. 2 8
Dec. 5
Dec. 12
Dec. 19
Dec. 2 6
5 banks in City of Chicago
Basic reserve position
40 Excess reserves 1
4
12
19
6
9
18
—1
- 2
1
LESS:
41 Borrowings at Federal Reserve
Banks
42 Net interbank federal funds
transactions
EQUALS: Net surplus, or deficit (—)
43 Amount
44 Percent of average required
reserves
45
46
47
48
49
Interbank federal funds transactions
Gross transactions
Purchases
Sales
Two-way transactions 2
Net transactions
Purchases of net buying banks
Sales of net selling banks
Related transactions with U.S.
government securities dealers
50 Loans to dealers 3
51 Borrowings from dealers 4
52 Net loans
300
0
0
75
422
56
164
43
11
7,266
7,498
7,108
6,781
5,754
7,304
7,281
7,171
7,375
-7,563
-7,480
-7,096
6,850
6,166
-7,341
-7,446
-7,216
-7,385
433.9
425.7
388.1
367.4
336.1
390.6
423.2
381.7
390. 1
8,380
1,114
1,114
8,481
983
983
8,470
1,362
1,362
7,928
1,147
1,147
7,222
1,468
1,468
8,373
1,069
1,069
8,460
1,179
1,179
8,272
1,101
1,101
8,652
1,277
1,277
7,266
0
7,499
0
7,108
0
6,781
0
5,754
0
7,304
0
7,281
0
7,171
7,375
0
112
16
96
181
174
145
89
54
78
187
19
7
91
11
168
-20
-8
-7
145
59
160
64
110
64
0
101
28
-101
-46
64
73
0
33 other banks
Basic reserve position
53 Excess reserves 1
-12
55
178
- 8
-21
LESS:
54 Borrowings at Federal Reserve
Banks
55 Net interbank federal funds
transactions
EQUALS: Net surplus, or deficit (—)
56 Amount
57 Percent of average required
reserves
58
59
60
61
Interbank federal funds transactions
Gross transactions
Purchases
Sales
Two-way transactions 2
Net transactions
Purchases of net buying banks
Related transactions with U.S.
government securities dealers
63 Loans to dealers 3
65 Net loans
511
213
438
26
115
362
168
320
35
7,410
8,974
7,587
8,482
8,158
7,970
10,079
10,420
9,499
-7,933
-9,009
-7,970
-8,517
-8,294
-8,352
-10,255
-10,747
-9,388
76.8
89.4
79.4
82.6
80.1
80.3
98.4
102.7
90.2
12,019
4,609
3,164
13,038
4,064
3,128
13,259
5,672
3,647
13,511
5,029
3,191
13,313
5,155
3,398
12,875
4,906
3,381
14,253
4,174
3,519
14,286
3,866
3,518
13,702
4,203
3,940
8,855
1,444
9,910
937
9,612
2,025
10,320
1,838
9,915
1,757
9,495
1,525
10,734
655
10,768
348
9,762
262
634
531
103
851
737
114
657
437
220
703
592
111
655
543
112
621
1,650
-1,028
583
915
-332
674
865
-191
775
886
-111
1. Based on reserve balances, including adjustments to include waivers
of penalties for reserve deficiencies in accordance with changes in policy
of the Board of Governors effective Nov. 19, 1975.
2. Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's average purchases
and sales are offsetting.
3. Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchase from dealers subject to resale),
or other lending arrangements.
4. Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by U.S. government or other securities.
NOTE. Weekly averages of daily figures. For description of series, see
August 1964 BULLETIN, pp. 944-53. Back data for 46 banks appear in
the Board's Annual Statistical Digest, 1971-1975, table 3.
A8
1.14
Domestic Financial Statistics • January 1980
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Loans to member banks
Loans to all others
under sec. 13, last par. 2
Under sec. 10(b)i
Under sees. 13 and 13a3
Federal Reserve
Bank
Regular rate
Rate on
12/31/79
Effective
date
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
12
12
12
12
12
12
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
12
12
12
12
12
12
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
Previous
rate
Rate on
12/31/79
Effective
date
11
11
11
11
11
11
121/2
121/2
121/2
121/2
121/2
121/2
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
11
11
11
11
11
11
121/2
121/2
121/2
121/2
121/2
121/2
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
Special rate 4
Previous
rate
Rate on
12/31/79
Effective
date
13
13
13
13
13
13
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
12
12
12
12
12
12
15
15
15
15
15
15
10/10/79
10/8/79
10/8/79
10/8/79
10/8/79
10/9/79
14
14
14
14
14
14
13
13
13
13
13
13
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
12
12
12
12
12
12
15
15
15
15
15
15
10/9/79
10/8/79
10/8/79
10/9/79
10/9/79
10/8/79
14
14
14
14
14
14
IH/2
IH/2
IH/2
IH/2
H1/2
H1/2
IH/2
H1/2
H!/2
IH/2
H1/2
111/2
Previous
rate
Rate on
12/31/79
Effective
date
Previous
rate
Range of rates in recent years 5
Effective date
In effect Dec. 31, 1970
1971—Jan.
8
15
19
22
29
Feb. 13
19
July 16
23
Nov. 11
19
Dec. 13
17
24
1973—Jan.
Feb.
Mar.
Apr.
May
15
26
2
23
4
11
18
June 11
15
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
5%
51/4-51/2
51/4
5-51/4
5-514
5
43/4-5
43/4
434-5
5
434-5
43/4
41/2-434
41/2-434
41/2
51/2
51/4
51/4
51/4
5
5-51/2
51/2
51/2-534
534
534-6
5
5
5
43/4
5
5
5
43/4
43/4
4Vi
4i/i
5
51/2
51/2
51/2
534
6
6
6
61/2
61/2
6-6V2
Effective date
1973—July 2
Aug. 14
23
1974—Apr. 25
30
Dec. 9
16
1975—Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1976—Jan. 19
23
Nov. 22
26
61/2
1. Advances secured to the satisfaction of the Federal Reserve Bank.
Advances secured by mortgages on 1- to 4-family residential property
are made at the section 13 rate.
2. Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. government or any
agency thereof.
3. Discounts or eligible paper and advances secured by such paper or by
Range
(or level)—
All F.R.
Banks
7
i-m
71/2
71/2-8
8
73/4-8
73/4
71/4-734
71/4-734
71/4
634-714
634
614-634
614
6-614
6
51/2-6
51/2
51/4-51/2
5V4
F.R.
Bank
of
N.Y.
7
71/2
71/2
734
73/4
734
71/4
71/4
63/4
634
614
614
6
6
51/2
51/2
51/4
5V4
Effective date
1977—Aug. 30
31
Sept. 2
Oct. 26
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.
Range
(or level)—
All F.R.
Banks
51/4-534
5Va-534
53/4
6
6-61/2
9
20
11
12
3
10
21
22
16
61/2
6Vi-7
7
7-71/4
71/4
73/
g 4
1
3
81/2-91/2
91/2
20
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
In effect Dec. 31, 1979
8-8Vi
F.R.
Bank
of
N.Y.
51/4
534
534
6
61/2
61/2
7
7
71/4
71/4
73/4
g
81/2
m
8Vz
m
10
10
10-101/2
101/2
101/2-11
11
11-12
12
12
91/2
1014
101/2
11
11
12
12
12
U.S. government obligations or any other obligations eligible for Federal
Reserve Bank purchase.
4. Applicable to special advances described in section 201.2(e)(2) of
Regulation A.
5. Rates under sees. 13 and 13a (as described above). For description
and earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics. 1914-1941 and 1941-1970;
Annual
Statistical Digest, 1971-1975,1972-1976,
and 1973-1977.
Policy Instruments
1.15
A9
MEMBER BANK RESERVE REQUIREMENTS 1
Percent of deposits
Type of deposit, and deposit interval
in millions of dollars
Net demand2
0-2
2-10
10-100
100-400
Over 400
Time and savings 2- 3. 4
Savings
Time 5
0-5, by maturity
30-179 days
180 days to 4 years
4 years or m o r e . . . .
Over 5, by maturity
30-179 days
180 days to 4 years
4 years or more
Requirements in effect
December 31, 1979
Previous requirements
Percent
Effective date
Percent
7
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
10
12
13
16Vi
7%
2/13/75
2/13/75
2/13/75
2/13/75
2/13/73
3/16/67
3*4
3/2/67
3/16/67
1/8/76
10/30/75
3*4
3/2/67
3/16/67
3/16/67
9*4
ny4
12%
161/4
3
1
6
2%
1
3
3
12/12/74
1/8/76
10/30/75
Effective date
10/1/70
12/12/74
12/12/74
Legal limits
Net demand
Reserve city banks
Other banks
Time
Borrowings from foreign banks
1. For changes in reserve requirements beginning 1963, see Board's
Annual Statistical Digest, 1971-1975 and for prior changes, see Board's
Annual Report for 1976, table 13.
2. (a) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank. Demand deposits
subject to reserve requirements are gross demand deposits minus cash
items in process of collection and demand balances due from domestic
banks.
(b) The Federal Reserve Act specifies different ranges of requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits of more than $400 million is considered to have the
character of business of a reserve city bank. The presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are Federal Reserve Banks or branches are also
reserve cities. Any banks having net demand deposits of $400 million or
less are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board's Regulation D .
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements
on net branches due from domestic banks to their foreign branches and
on deposits that foreign branches lend to U.S. residents were reduced to
zero from 4 percent and 1 percent, respectively. The Regulation D reserve
requirement on borrowings from unrelated banks abroad was also reduced
to zero from 4 percent.
(d) Effective with the reserve computation period (beginning Nov. 16,
1978, domestic deposits of Edge corporations are subject to the same
reserve requirements as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements as savings deposits.
4. The average reserve requirement on savings and other time deposits
must be at least 3 percent, the minimum specified by law.
5. Effective Nov. 2, 1978, a supplementary reserve requirement of 2
percent was imposed on large time deposits of $100,000 or more, obligations of affiliates, and ineligible acceptances.
Effective with the reserve maintenance period beginning Oct. 25, 1979,
a marginal reserve requirement of 8 percent was added to managed
liabilities in excess of a base amount. Managed liabilities are defined as
large time deposits, Eurodollar borrowings, repurchase agreements
against U.S. government and federal agency securities, federal funds
borrowings from nonmember institutions, and certain other obligations.
In general, the base for the marginal reserve requirement is $100 million or
the average amount of the managed liabilities held by a member bank,
Edge corporation, or family of U.S. branches and agencies of a foreign
bank for the two statement weeks ending Sept. 26, 1979.
NOTE. Required reserves must be held in the form of deposits with
Federal Reserve Banks or vault cash.
A10
1.16
DomesticNonfinancialStatistics • January 1980
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per a n n u m
Commercial banks
Type and maturity of deposit
In effect Dec. 31, 1979
Percent
1 Savings
2 Negotiable order of withdrawal
accounts 2
Time accounts 4
Fixed ceiling rates by maturity
3
30-89 days
4
90 days to 1 year
5
1 to 2 years 6
6
2 to 2Vi years 6
2Vi to 4 years 6
7
8
4 to 6 years7
9
6 to 8 years 7
10
8 years or more 7
11
Issued to governmental units (all
maturities)
12
Individual retirement accounts and
Keogh (H.R. 10) plans
(3 years or more) 9
Special variable ceiling rates by maturity
6 months money market time
deposits) 1 o
14
4 years or more
13
51/4
Effective
date
Percent
5
1/1/74
(3)
51/4
5*i
9/1/79
7/1/73
6
6V2
7/1/73
5
5
5Vi
1
O
)
(12)
Effective
date
7/1/73
7/1/73
(5)
1/21/70
1/21/70
1/21/70
6/1/78
53/4
5V
4
(8)
71/34
()
7%
12/23/74
6/1/78
IVA
7/6/77
7/1/73
11/1/73
12/23/74
6/1/78
1
O
)
(12)
1. July 1, 1973, for mutual savings b a n k ; July 6, 1973 for savings and
loan associations.
2. For authorized states only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks in Massachusetts and New Hampshire were first permitted to offer
negotiable order of withdrawal ( N O W ) accounts on Jan. 1, 1974.
Authorization to issue N O W accounts was extended to similar institutions
throughout New England on Feb. 27, 1976, and in New York State on
Nov. 1 0 , 1978.
3. N o separate account category.
4. For exceptions with respect to certain foreign time deposits see the
FEDERAL RESERVE BULLETIN f o r O c t o b e r 1962 ( p . 1 2 7 9 ) , A u g u s t 1965 ( p .
1094), and February 1968 (p. 167).
5. Multiple maturity: July 20, 1966; single maturity: September 26,
1966.
6. N o minimum denomination. Until July 1, 1979, a minimum of
$1,000 was required for savings and loan associations, except in areas
where mutual savings banks permitted lower minimum denominations.
This restriction was removed for deposits maturing in less than 1 year,
effective Nov. 1, 1973.
7. N o minimum denomination. Until July 1, 1979, minimum denomination was $1,000 except for deposits representing funds contributed to an
Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan established pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and N o vember 1976, respectively.
8. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates that an institution
could issue was limited to 5 percent of its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6V2 percent ceiling on time deposits maturing in 2 l /i
years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing
in 4 years or more with minimum denominations of $1,000. There is no
limitation on the amount of these certificates that banks can issue.
9. Accounts maturing in less than 3 years subject to regular ceilings.
10. Must have a maturity of exactly 26 weeks and a minimum denomination of $10,00Q, and must be nonnegotiable.
Previous maximum
7/1/79
71/4
71/2
7y4
Savings and loan associations and
mutual savings banks
O1)
(12)
11/1/73
n
(( 1 2 ))
In effect Dec. 31, 1979
Percent
Effective
date
5Vi
7/1/79
5
1/1/74
(3)
5y4 6
61/2
m
m
0)
0)
0)
1
(12)
O)
11/1/73
12/23/74
6/1/78
Previous maximum
Percent
Effective
date
5!/4
(3)
0)
(3)
51/4
5y4
6
6
(8)
3
1/21/70
1/21/70
1/21/70
1/21/70
6/1/78
71/2
()
7%
12/23/74
6/1/78
7%
7/6/77
O1)
(12)
O1)
(12)
11/1/73
O1)
(12)
11. Commercial banks, savings and loan associations, and mutual
savings banks were authorized to offer money market time deposits effective June 1, 1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. Until Mar. 15,
1979, the ceiling rate for savings and loan associations and mutual savings
banks was % percentage point higher than the rate for commercial banks.
Beginning Mar. 15, 1979, the V4 percentage point interest differential
is removed when the 6-month Treasury bill rate is 9 percent or more.
The full differential is in effect when the 6-month bill rate is 8 3 4 percent
or less. Thrift institutions may pay a maximum 9 percent when the 6-month
bill rate is between 8% and 9 percent. Also effective March 15, 1979
interest compounding was prohibited on money market time deposits
at all offering institutions. For both commercial banks and thrift institutions, the maximum allowable rates in December were as follows: Dec.
6, 11.767; Dec. 13, 11.769; Dec. 20, 11.999; Dec. 27, 11.854.
12. Effective July 1, 1979, commercial banks, savings and loan associations, and mutual savings banks are authorized to offer variable ceiling
accounts with no required minimum denomination and with maturities of
4 years or more. The maximum rate for commercial banks is 1 percentage points below the yield on 4-year U.S. Treasury securities; the ceiling
rate for thrift institutions is
percentage point higher than that for commercial banks. In December, the ceiling at commercial banks is 9.6 percent, and the ceiling at thrift institutions is 9.85 percent.
NOTE. Maximum rates that can be paid by federally insured commercial banks, mutual savings banks, and savings and loan associations are
established by the Board of Governors of the Federal Reserve System,
the Board of Directors of the Federal Deposit Insurance Corporation,
and the Federal H o m e Loan Bank Board under the provisions of 12
C F R 217, 329, and 526, respectively. The maximum rates on time deposits in denominations of $100,000 or more with maturities of 30-89
days were suspended in June 1970; such deposits maturing in 90 days or
more were suspended in May 1973. For information regarding previous
interest rate ceilings on all types of accounts, see earlier issues of the
FEDERAL RESERVE BULLETIN, the Federal H o m e Loan Bank Board Journal
and the Annual Report of the Federal Deposit Insurance Corporation.
Policy Instruments
1.17
All
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1979
1976
Type of transaction
1977
1978
May
June
July
Aug.
Sept.
Oct.
Nov.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
Treasury bills
1 Gross purchases
2 Gross sales
3 Redemptions
14,343
8,462
5,0171
13,738
7,241
2,136
16,628
13,725
2,033
0
251
200
518
623
0
2,252
0
0
2,351
380
0
1,692
353
200
1,528
780
968
2,752
154
300
3,017
0
4,499
2,500
1,184
0
-5,170
0
0
0
4,660
0
42
0
1,152
0
218
0
33
0
57
0
1,526
0
120
0
876
0
28
0
-116
668
0
0
-937
0
3,2021 2,833
0
177
-2,588 -6,649
4,188
0
-178
0
0
-5,209
0
0
-1,152
237
0
-33
699
0
-1,591
354
0
-876
703
0
116
0
0
222
Others within 1 year2
472
0
792
0
5 Gross sales
1 to 5 years
5 to 10 years
1,048
0
1,572
758
0
584
1,526
0
2,803
0
0
350
0
0
0
96
0
0
140
0
-240
73
0
0
0
0
0
0
0
400
642
0
225
553
0
1,565
1,063
0
2,545
0
0
200
0
0
0
142
0
0
81
0
305
87
0
0
0
0
0
0
0
314
19,7071 20,898
8,639
7,241
5,0171 4,636
24,591
13,725
2,033
0
251
200
561
623
0
2,945
0
0
3,327
380
0
2,326
353
200
2,259
780
1,636
2,752
154
300
196,078 425,214 511,126
196,579 423,841 510,854
54,343
53,692
52,640
52,949
40,310
40,300
35,159
35,480
41,395
41,583
58,656
58,671
45,204
45,979
Over 10 years
All
maturities2
19 Redemptions
20
21
Matched sale-purchase transactions
Gross sales
Gross purchases
22
Repurchase agreements
Gross purchases
24 Net change in U.S. government securities
232,891
230,355
178,683
180,535
151,618
152,436
2,188
3,488
15,531
12,226
18,464
19,690
10,539
12,226
10,850
10,380
10,599
11,336
4,303
3,869
9,087
5,798
7,743
-2,403
3,552
1,708
1,582
2,431
-878
3,507
891
0
169
1,433
0
223
301
173
235
0
0
40
371
0
33
482
0
0
0
0
0
0
18
0
0
3
0
0
10,520
10,360
13,811
13,638
40,567
40,885
1,149
1,298
4,443
3,617
7,247
7,434
4,057
4,544
5,016
4,069
5,146
6,188
1,992
1,075
882
1,383
-426
-189
1,163
295
-487
928
-1,045
917
-545
410
-196
159
0
-366
0
-252
0
1,400
0
-241
0
-684
0
578
0
-735
0
-48
-135
-37
-366
-252
1,400
-241
-684
578
-735
-48
9,833
7,143
6,951
-2,844
6,115
1,761
412
3,937
-2,658
4,376
FEDERAL AGENCY OBLIGATIONS
Outright transactions
25
Gross purchases
26
Gross sales
Repurchase agreements
28
Gross purchases
30 Net change in federal agency obligations
*
*
BANKERS ACCEPTANCES
31 Outright transactions, net
32 Repurchase agreements, net
33 Net change in bankers acceptances
34 Total net change in System Open
Market
1. In 1976, the System acquired $189 million of 2-year Treasury notes
in exchange for maturing bills. In April 1979, the System acquired $640
million of 2-day cash management bills in exchange for maturing 2-year
notes. New 2-year notes were later obtained in exchange for the maturing
bills. Each of these transactions is treated in the table as both a purchase
and a redemption. In Oct. 1979, $668 million of maturing 2- and 4-year
notes were exchanged for a like amount of short-term bills, later exchanged
for new 2- and 4-year notes.
2. Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions of dollars): Sept. 1977, 2,500; Mar. 1979, 2,600.
NOTE. Sales, redemptions, and negative figures reduce holdings of
the System Open Market Account; all other figures increase such holdings.
Details may not add to totals because of rounding.
A12
DomesticNonfinancialStatistics • January 1980
1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements
Millions of dollars
Account
Nov. 28?
Dec. 5*>
Wednesday
End of month
1979
1979
Dec. 12?
Dec. 19?
Dec. 26?
Oct.?
Nov.
v
Dec.?
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
Member bank borrowings
5
Other
Acceptances
7
Held under repurchase agreements
Federal agency obligations
9
Held under repurchase agreements
U.S. governments securities
Bought outright
10
Bills
13
14
15
Bonds
Total i
Held under repurchase agreements
Other assets
21
Allother
22 Total assets
11,112
1,800
428
11,112
1,800
408
11,112
1,800
412
11,112
1,800
420
11,112
1,800
412
11,194
1,800
449
11,112
1,800
415
11,112
1,800
403
4,715
0
2,244
0
1,810
0
1,561
0
1,982
0
2,672
0
2,034
0
1,454
0
0
0
0
0
0
0
0
0
0
415
0
317
0
269
0
704
8,221
0
8,221
0
8,216
0
8,216
0
8,216
115
8,221
57
8,221
973
8,216
493
45,812
0
55,928
14,499
116,239
0
116,239
44,809
0
55,928
14,499
115,236
0
115,236
45,264
0
56,494
14,553
116,311
0
116,311
44,139
0
56,494
14,553
115,186
0
115,186
41,809
0
56,494
14,553
112,856
201
113,057
44,028
0
56,242
14,185
114,455
125
114,580
47,101
0
55,928
14,499
117,528
559
118,087
45,244
0
56,494
14,553
116,291
1,167
117,458
129,175
125,701
126,337
124,963
123,785
125,847
129,584
128,325
12,137
402
14,208
402
13,768
404
14,495
404
14,793
406
11,693
402
10,137
403
13,571
408
2,554
2,251
2,573
2,611
2,609
2,237
2,519
2,631
2,508
3,107
1,432
2,639
2,607
1,685
2,483
2,722
159,859
158,815
158,679
158,344
157,923
155,456
157,743
160,824
110,642
110,772
111,795
112,364
113,490
108,029
109,908
113,355
33,278
369
103
33,750
2,941
320
312
32,024
300
30
32,354
2,467
329
288
31,475
242
36
31,753
2,610
270
305
28,872
403
27
29,302
3,061
274
303
28,100
412
8
28,520
2,883
216
370
32,192
369
0
32,561
2,209
352
286
32,280
296
41
32,617
2,590
490
352
29,520
265
7
29,792
4,075
429
1,412
37,323
35,438
34,938
32,940
31,989
35,408
36,049
35,708
6,770
2,049
7,737
2,435
7,000
2,301
7,805
2,385
6,763
2,612
7,008
1,849
6,408
2,313
6,804
2,667
156,784
156,382
156,034
155,494
154,854
152,294
154,678
158,534
1,142
1,078
855
1,143
1,078
212
1,144
1,078
423
1,144
1,078
628
1,145
1,078
846
1,136
1,078
948
1,142
1,078
845
1,145
1,145
0
159,859
158,815
158,679
158,344
157,923
155,456
157,743
160,824
74,473
76,002
77,648
77,448
77,809
81,928
74,403
80,828
LIABILITIES
Deposits
Reserve accounts
26
27
28
U.S. agencies and branches of foreign banks
Total
U.S. Treasury—General account
32 Deferred availability cash items
33 Other liabilities and acrued dividends 3
CAPITAL ACCOUNTS
39 MEMO: Marketable U.S. government securities
held in custody for foreign and international
Federal Reserve note statement
40 Federal Reserve notes outstanding (issued to
Bank)
Collateral held against notes outstanding
124,819
125,450
125,841
125,729
125,465
124,342
124,864
125,301
42 Special Drawing Rights certificate account
43 Eligible paper
44 U.S. government and agency securities
11,112
1,800
1,373
110,534
11,112
1,800
1,438
111,100
11,112
1,800
755
112,174
11,112
1,800
972
111,845
11,112
1,800
949
111,604
11,194
1,800
1,743
109,605
11,112
1,800
1,246
110,706
11,112
1,800
894
111,495
45 Total collateral
124,819
125,450
125,841
125,729
125,465
124,342
124,864
125,301
1. Includes securities loaned—fully guaranteed by U.S. government
securities pledged with Federal Reserve Banks—and excludes (if any)
securities sold and scheduled to be bought back under matched salepurchase transactions.
2. Beginning December 29, 1978, such assets are revalued monthly
at market exchange rates.
3. Includes exchange-translation account reflecting, beginning December 29, 1978, the monthly revaluation at market exchange rates of
foreign-exchange commitments.
Reserve Banks
A13
1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity
Nov. 28
Dec. 5
Wednesday
End of month
1979
1979
Dec. 12
Dec. 19
Dec. 26
Oct. 31
Nov. 30
Dec. 31
1 Loans
2
Within 15 days
3
16 days to 90 days
4
91 days to 1 year
4,715
4,681
34
0
2,244
2,196
48
0
1,810
1,780
30
0
1,561
1,537
24
0
1,982
1,969
13
0
2,672
2,577
95
0
2,034
1,894
140
0
1,453
1,441
12
0
5 Acceptances
6
Within 15 days
7
16 days to 90 days
8
91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
415
415
0
0
317
317
0
0
269
269
0
0
704
704
0
0
9 U.S. government securities
10
Within 15 days i
11
16 days to 90 days
12
91 days to 1 year
13
Over 1 year to 5 years
14
Over 5 years to 10 years
15
Over 10 years
116,239
5,063
23,077
35,592
27,116
12,694
12,697
115,236
4,389
23,490
34,655
27,311
12,694
12,697
116,311
3,097
24,046
35,937
27,709
12,774
12,748
115,186
3,822
22,302
35,831
27,709
12,774
12,748
113,057
2,996
20,407
36,423
27,709
12,774
12,748
114,580
6,848
20,930
35,036
27,089
12,294
12,383
118,087
4,402
24,787
36,196
27,311
12,694
12,697
117,458
3,133
23,708
37,231
27,864
12,774
12,748
16 Federal agency obligations
17
Within 15 days i
18
16 days to 90 days
19
91 days to 1 year
20
Over 1 year to 5 years
21
Over 5 years to 10 years
22
Over 10 years
8,221
125
420
1,354
4,177
1,403
742
8,221
56
528
1,324
4,168
1,403
742
8,216
0
608
1,307
4,234
1,325
742
8,216
151
457
1,307
4,234
1,325
742
8,331
266
457
1,307
4,234
1,325
742
8,278
109
352
1,350
4,290
1,435
742
9,194
1,098
420
1,363
4,168
1,403
742
8,709
644
457
1,307
4,234
1,325
742
1. Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1979
Bank group, or type
of customer
1976
1977
1978
June
July
Aug.
Sept.
Oct.
Debits to demand deposits 1 (seasonally adjusted)
1 All commercial banks
2 Major New York City banks
3 Other banks
29,180.4
11,467.2
17,713.2
34,322.8
13,860.6
20,462.2
40,300.3
15,008.7
25,291.6
50.388.3
19.747.4
30,641.0
52,102.7
20,480.5
31,622.2
52,402.5
20.357.2
32.045.3
54,233.1
21,117.6
33,115.5
53,324.9
19,740.2
33,584.7
667.6
74.5
593.1
843.6
90.8
752.8
175.0
711.5
118.2
172.0
641.2
120.2
3.1
7.0
2.9
4.0
8.6
3.8
Debits to savings deposits 2 (not seasonally adjusted)
174.0
21.7
152.3
4 All customers
5 Business 3
6 Others
418.1
56.7
361.4
658.8
72.6
586.2
732.8
74.1
658.8
735.8
78.2
657.6
Demand deposit turnover 1 (seasonally adjusted)
7 All commercial banks
8 Major New York City banks
9 Other banks
116.8
411.6
79.8
139.4
541.9
96.7
129.2
503.0
85.9
167.3
685.4
112.5
171.9
717.7
115.2
173.1
709.1
116.9
Savings deposit turnover 2 (not seasonally adjusted)
10 All customers
11 Business 3
12 Others
1.6
4.1
1.5
1. Represents accounts of individuals, partnerships, and corporations,
and of states and political subdivisions.
2. Excludes negotiable order of withdrawal (NOW) accounts and
special club accounts, such as Christmas and vacation clubs.
3. Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations,
mutual savings banks, credit unions, the Export-Import Bank, and
federally sponsored lending agencies).
1.9
5.1
1.7
3.1
7.2
2.9
3.4
7.2
3.2
3.4
7.4
3.2
NOTE. Historical data—estimated for the period 1970 through June
1977, partly on the basis of the debits series for 233 SMS As, which were
available through June 1977—are available from Publications Services,
Board of Governors of the Federal Reserve System, Washington, D.C.
20551. Debits and turnover data for savings deposits are not available
prior to July 1977.
A14
DomesticNonfinancialStatistics • January 1980
1.21 MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
1979
1975
Dec.
1976
Dec.
1977
Dec.
1978
Dec.
June
Item
July
Aug.
Sept.
374.3
598.4'
922.5
1,580.0
1,008.4
1,666.0
377.8
602.0'
932.0'
1,594.3
1,020.0
1,682.4
Oct.
Nov.
Seasonally adjusted
MEASURES
1
2
3
4
5
6
1
M-L
M-1 +
M-2
M-3
M-4
M-5
295.4
456.8
664.8
1,092.4
745.8
1,173.5
313.8
517.2
740.6
1,235.6
803.0
1,298.0
338.7
560.6
809.4
1,374.3
883.1
1,448.0
361.2
587.2
875.8
1,500.1
972.4
1,596.7
369.0
590.1
904.4
1,552.3
989.3
1,637.2
372.2
595.1
914.1
1,567.0
998.8
1,651.7
73.8
80.8
88.6
97.5
101.5
102.4
103.6
104.9
105.4
105.8
221.7
450.3
160.7
81.0
208.6
233.0
489.2
202.1
62.4
224.7
250.1
544.4
219.7
73.7
251.0
263.7
611.2
223.0
96.6
291.5
267.5
620.3
217.8
84.9
317.6
269.8
626.6
219.5
84.7
322.4
270.7
634.2
220.7
85.9
327.6
273.0
642.2
220.7
88.1
333.4
273.2
651. 1
217.7r
91.1
342.3
273.1
659.5
211.4
95.0
353.1
427.7
495.0
564.9
624.4
647.9
652.9
657.5
662.4
665.3 '
667.7
378.4
597.8
935.6R
1,599.6R
1,028.9 R
1,692.9'
381.0
594.0
940.5
1,604.6
1,036.4
1,700.5
378.6
599.6R
938.6
1,603.8R
1,029.6R
1,694.9R
378.9
593.7
943.4
1,611.1
1,038.4
1,706.1
COMPONENTS
Commercial bank deposits
9
10
11
12
13
Time and savings
Savings
Negotiable CDs 2
Other time
Nonbank thrift institution
deposits 3...
N o t seasonally adjusted
MEASURES 1
14
15
16
17
18
19
M-L
M-1 +
M-2
M-3
M-4
M-5
303.9
463.6
670.0
1,095.0
753.5
1,178.4
322.6
524.2
745.8
1,238.3
810.0
1,302.6
348.2
568.0
814.9
1,377.2
890.8
1,453.2
371.3
595.2
881.5
1,502.8
981.0
1,602.4
368.2
591.0
906.0
1,556.3
990.4
1,640.7
374.1
598.8
917.0
1,573.0
1,001.0
1,657.0
75.1
82.1
90.1
99.1
101.8
103.2
103.9
104.5
105.1R
106.5
228.8
162.8
62.6
449.6
159.1
83.5
207.1
240.5
169.4
67.5
487.4
200.2
64.3
258.1
177.5
76.2
542.6
217.7
75.9
266.4
177.1
84.8
622.2
219.4
84.4
222.9
249.0
272.2
183.0
85.2
609.7
220.9
99.5
318.3
267.7
178.5
85.3
634.1
220.7
86.4
327.1
271.1
179.4
87.4
641.4
218.9
89.8
332.7
273.2
180.4
88.3
650.6
216.0
93.4'
341.2
274.5
181.6
88.5
655.3
209.6
95.9
289.2
270.9
180.5
86.1
627.0
221.4
84.0
321.6
.7
1.4
424.9
492.5
2.1
562.3
3.0
621.4
3.3
650.3
3.4
656.0
3.4
657.8
3. 5 r
661.4
3.4
664.0'
3.4
664.1
4.1
4.4
5.1
10.2
10.8
13.2
9.8
12.4
11.7
371.6
595.7'
919.3
1,577.1
1,005.7
1,663.4
375.6
597.9'
927.2
1,588.6R
1,017.0
1,678.4
COMPONENTS
21
22
23
24
25
26
27
Commercial bank deposits
Demand
Member
Domestic nonmember
Time and savings
Savings
Negotiable CDs 2
Other time
28 Other checkable deposits 4
29 N o n b a n k thrift institution deposits 3
30 U.S. government demand deposits
(all commercial banks) 5
1. Composition of the money stock measures is as follows:
M - l : Averages of daily figures for (1) demand deposits at commercial
banks other than domestic interbank and U.S. government, less cash items
in process of collection and Federal Reserve float; (2) foreign demand
balances at Federal Reserve Banks; and (3) currency outside the Treasury,
Federal Reserve Banks, and vaults of commercial banks.
M - l + : M - l plus savings deposits at commercial banks, N O W accounts
at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M - l plus savings deposits, time deposits open account, and time
certificates of deposit (CDs) other than negotiable CDs of $100,000 or
more at large weekly reporting banks.
M-3: M-2 plus the average of the beginning- and end-of-month deposits
of mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
349.8
5.5
M-4: M-2 plus large negotiable CDs.
M-5: M-3 plus large negotiable CDs.
2. Negotiable time CDs issued in denominations of $100,000 or more
by large weekly reporting commercial banks.
3. Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
4. Includes N O W accounts at thrift institutions, credit union share
draft accounts, and demand deposits at mutual savings banks.
5. Includes Treasury note balances beginning Nov. 2, 1978.
NOTE. Latest monthly and weekly figures are available from the Board's
H.6 (508) release. Back data are available from the Banking Section,
Division of Research and Statistics.
N O T E S T O TABLE 1.23:
1. Includes domestic chartered banks, U.S. branches, agencies and
New York investment company subsidiaries of foreign banks; and Edge
Act corporations.
2. Excludes loans to commercial banks in the United States.
3. As of Dec. 31, 1978, total loans and investments were reduced by
$0.1 billion. "Other securities" were increased by $1.5 billion and total
loans were reduced by $ 1.6 billion largely as the result of reclassifications
of certain tax-exempt obligations. Most of the loan reduction was in
"all other loans."
4. As of Jan. 3, 1979, as the result of reclassifications, total loans and
investments and total loans were increased by $0.6 billion. Business loans
were increased by $0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were reduced by $0.3 billion.
5. As of Dec. 31, 1977, as the result of loan reclassifications, business
loans were reduced by $0.2 billion and nonbank financial loans by $0.1
billion; real estate loans were increased by $0.3 billion.
6. As of Dec. 31, 1978, commercial and industrial loans were reduced
$0.1 billion as a result of reclassifications.
7. As of Dec. 31, 1978, nonbank financial loans were reduced $0.1
billion as the result of reclassifications.
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.
9. As of Dec. 31, 1978, commercial and industrial loans sold outright
were increased $0.7 billion as the result of reclassifications, but $0.1
billion of this amount was offset by a balance sheet reduction of $0.1
billion as noted above.
10. United States includes the 50 states and the District of Columbia.
NOTE. Data are prorated averages of Wednesday data for domestic
chartered banks, and averages of current and previous month-end data for
foreign-related institutions.
Monetary
Aggregates
A15
1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks
Billions of dollars, averages of daily figures
1979
Item
1976
Dec.
1977
Dec.
1978
Dec.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Seasonally adjusted
1
34.89
36.10
41.27
40.65
40.48
40.42
40.82
41.07
41.46
42.32
43.13
2 Nonborrowed
3 Required
4 Monetary base 2
34.84
34.61
118.4
35.53
35.91
127.8
40.40
41.04
142.3
39.73
40.47
144.5
38.72
40.34
144.9
39.00
40.20
145.6
39.65
40.61
146.9
39.98
40.85
148.4
40.12
41.27
150.1
40.30
42.04
151.6
41.22
42.88
152.8
5 Deposits subject to reserve requirements 3
528.6
568.6
616.7
618.6
613.9
613.1
618.7
623.7
630.5
639.0
644.1
6 Time and savings
Demand
7
Private
8
U.S. government
354.1
386.7
429.4
432.0
428.7
425.9
429.4
434.4
439.8
445.6
451.8
171.5
3.0
178.5
3.5
185.1
2.3
184.7
1.8
183.5
1.7
184.8
2.4
187.5
1.8
187.1
2.2
189.0
1.8
191.7
1.8
190.4
2.0
1 Reserves
N o t seasonally adjusted
9 Monetary base 2
120.3
129.8
144.6
144.2
144.4
145.6
147.9
148.4
149.4
151.3
153.5
10 Deposits subject to reserve requirements 3
534.8
575.3
624.0
621.1
610.9
613.9
619.2
620.4
629.0
638.6
642.2
11 Time and savings
Demand
12
Private
13
U.S. government
353.6
386.4
429.6
432.3
429.8
427.2
429.8
434.1
439.4
445.7
449.7
177.9
3.3
185.1
3.8
191.9
2.5
186.8
2.0
179.2
1.8
183.9
2.8
187.8
1.6
184.5
1.7
187.5
2.1
191.4
1.6
191.4
1.7
1. Series reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and M. There
are breaks in series because of changes in reserve requirements effective
Jan. 8 and Dec. 30, 1976; and Nov. 2, 1978. In addition, effective Jan. 1,
1976, statewide branching in New York was instituted. The subsequent
merger of a number of banks raised required reserves because of higher
reserve requirements on aggregate deposits at these banks.
2. Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier); currency outside the U.S.
Treasury, Federal Reserve Banks, and the vaults of commercial banks;
and vault cash of nonmember banks.
3. Includes total time and savings deposits and net demand deposits as
defined by Regulation D . Private demand deposits include all demand
deposits except those due to the U.S. government, less cash items in
process of collection and demand balances due f r o m domestic commercial
banks.
NOTE. Back data and estimates of the impact on required reserves
and changes in reserve requirements are shown in table 14 of the Board's
Annual Statistical Digest, 1971-1975.
1.23 LOANS AND INVESTMENTS All Commercial Banks 1
Billions of dollars; averages of Wednesday figures
1979
Category
1977
Dec.
1979
1977
Dec.
1978
Dec.
Sept .P
Oct.P
1978
Dec.
Sept.P
NOV.P
Seasonally adjusted
Oct.f
Nov.?
N o t seasonally adjusted
1 Total loans and securities 2
891.1
1,014.33
1,122.84
1,128.9
1,128.4
1,023.83
1,124.74
1,130.9
1,130.5
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases 2
5
Commercial and industrial l o a n s . . . .
6
Real estate loans
7
Loans to individuals
8
Security loans
9
Loans to nonbank financial
institutions
99.5
159.6
632.1
211.25
175.25
138.2
20.6
93.4
173.1 3
747.83
246.56
210.5
164.9
19.4
95.2
187.6
840.04
285.94
234.14
180.2
23.5
95.3
188.8
844.8
288.6
237.1
181.3
20.6
94.3
190.5
843.6
288.3
239.7
182.3
18.4
100.7
160.2
638.3
212.65
175.55
139.0
22.0
94.6
173.9 3
755.43
248.26
210.9
165.9
20.7
93.6
187.6
843.54
285.84
235.34
182.4
23.6
93.2
189.0
848.7
288.4
238.3
183.3
20.8
93.4
190.7
846.5
288.3
240.9
183.7
18.8
25.85
25.8
5.8
29.5
27.17
28.2
7.4
43.63
29.84
29.6
8.7
48.0
30.9
30.0
8.9
47.4
30.9
29.4
9.1
45.5
26.35
25.7
5.8
31.5
27.67
28.1
7.4
46.63
30.34
30.1
8.7
47.2
31.0
30.3
8.9
47.6
31.0
29.5
9.1
45.2
895.9
1,018.13
1,126.54
1,132.5
1,132.0
903.9
1,027.63
1,128.44
1,134.5
1,134.1
636.9
4.8
751.6
3.8
3
843.74
3.7
848.4
3.6
847.2
3.6
643.0
4.8
759.2 3
3.8
847.24
3.7
852.3
3.6
850.1
3.6
213.95
248.59
288.74
291.2
290.8
215.35
250.19
288.64
291.1
290.8
2.8
8.0
2.7
7.9
2.5
7.9
240.9
226.5
14.4
23.0
277.8
259.2
18.7
23.6
280.5
261.4
19.2
22.4
280.4
260.9
19.5
18.9
60.3
73.5
74.2
76.4
11
12
Lease financing receivables
All other loans
899.1
MEMO:
13 Total loans
and investments plus loans
sold 2 -8
2
14 Total loans plus loans sold .8
15 Total loans sold to affiliates 8
16 Commercial and industrial loans plus
loans sold 8
17
Commercial and industrial loans
sold 8
18
Acceptances held
19
Other commercial and industrial
loans
20
To U.S. addressees 1 o
21
To non-U. S. addressees
22 Loans to foreign banks
23 Loans to commercial banks in the
United States
For notes see bottom of opposite page.
2.7
7.5
203.75
193.85
9.95
13.5
54.1
1.99
6.8
2.8
8.6
2.7
8.0
2.5
7.6
2.7
8.6
239.7
226.6
13.1
21.2
277.3
258.7
18.6
24.0
280.6
261.2
19.5
22.9
280.7
261.3
19.4
19.4
203.95
193.75
10.35
14.6
57.3
75.9
76.4
75.0
56.9
1.99
7.5
A16
DomesticNonfinancialStatistics • January 1980
1.24 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1979
Account
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept.
Oct.
1,071.3
797.9
46.3
240.5
511.2
91.6
181.7
1,081.8
807.6
48.1
242.0
517.4
92.1
182.1
1,094.3
819.4
50.3
244.1
525.0
90.6
184.3
1,112.1
833.8
53.6
249.4
530.9
91.9
186.4
1,118.4
839.0
54.0
249.8
535.3
91.5
187.8
Nov.r
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 1
1
2
3
4
5
6
7
Loans and investments
Loans, gross
Interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
8 Cash assets, total
9
Currency and coin
10
Reserves with Federal Reserve Banks..
11
Balances with depositary institutions..
12
Cash items in process of collection....
13 Other assets
1,025.2 1,031.4
755.6
759.8
42.1
42.3
227.8
225.3
488.2
489.6
93. 1
93.6
178.0
176.5
1,048.3 1,059.4
773.9
785.3
44.4
45.9
233.0
236.4
496.5
503.0
94.2
93.2
180.2
181.0
147.1
15.0
29.7
42.5
59.9
135.8
15.2
30.0
36.8
53.7
139.9
15.6
33.9
39.0
51.4
158.8
16.0
32.8
44.6
65.4
146.3
16.3
32.6
40.8
56.5
140.2
16.1
29.6
41.2
53.4
145.7
16.8
33.7
41.1
54.1
148.5
16.7
31.6
40.7
59.5
160.7
16.6
34.1
45.5
64.6
62.4
58.9
55.8
52.7
55.1
53.9
53.8
57.5
57.8
14 Total assets/total liabilities and capital.. . 1,234.8 1,226.1 1,244.0 1,270.9 1,272.7 1,275.9 1,293.8 1,318.2 1,336.9
1,118.0 1,143.3
836.7
860.1
52.6
62.9
248.0
253.4
536.1
543.7
92.1
92.5
189.3
190.7
158.1
18.2
34.7
43.7
61.5
146.4
17.9
28.4
37.7
62.4
59.3
61.2
1,335.4 1,351.0
15 Deposits
16 Demand
17
Time and savings
18
Savings
19
Time
969.2
352.1
617.1
215.2
401.9
954.9
335.0
619.8
216.8
403.0
964.4
348.0
616.4
215.9
400.5
975.5
357.8
617.8
215.5
402.3
971.3
352.4
618.9
216.4
402.5
975.2
352.6
622.6
218.3
404.2
982.9
352.4
630.5
216.6
413.8
996.6
358.7
637.9
213.4
424.5
1,023.6
376.6
647.0
207.6
439.4
1,017.6
365.1
652.4
205.0
447.4
1,030.6
377.6
653.0
203.4
449.7
20 Borrowings
21 Other liabilities
22 Residual (assets less liabilities)
111.9
59.0
94.7
115.2
60.9
95.1
123.5
60.8
95.3
132.0
65.4
98.1
137.1
65.5
98.9
137.2
64.9
98.7
140.1
69.7
101.1
147.0
71.2
103.3
137.4
74.0
101.9
135.6
78.5
103.7
140.5
74.1
105.8
4.0
14,593
4.8
14,597
5.9
14,610
4.9
14,616
12.9
14,620
11.9
14,584
8.6
14,607
17.8
14,616
8.4
14,605
5.0
14,608
12.8
14, 610
MEMO:
23 U.S. Treasury note balances included
in borrowing
24 Number of banks
A L L COMMERCIAL BANKING
INSTITUTIONS 2
25
26
27
28
29
30
31
Loans and investments
Loans, gross
Interbank
Commercial and industrial
Other
U.S. Treasury securities
Other securities
32 Cash assets, total
33
Currency and coin
34
Reserves with Federal Reserve Banks..
35
Balances with depositary institutions..
36
Cash items in process of collection
37 Other assets
1,087.4'" 1,101.4 1,114.8 1,131.2 1,146.9 1,153.1 1,169.8 1,197.7 1,200.3 1,200.9
827.2
854.2
837.7
870.7
876.2
892.1
815.3 r
916.2
915.9
917.6
56.1
60.4
53.4'
57.3
61.8
60.6
63.8
69.2
71.8
71.6
259.8
264.7
268.8
276.9
274.6
280.5
255.7'"r
287.9
288.3
288.1
511.3
515.6
535.7
523.6
538.6
547.8
506.3
556.6
557.7
558.6
94.9
95.6
91.9
94.6
93.1
94.3
93.5
93.7
93.5
93.1
179.4
181.5
182.3
183.1
185.8
177.8
183.5
190.9
189.5
188.3
166.6'
15.1
30.3
60. C"
61.3
157.0
15.2
30.7
56.0
55.1
156.6
15.6
34.6
53.9
52.5
176.5
16.1
33.5
60.3
66.6
167.8
16.3
33.4
60.3
57.7
160.4
16.1
30.4
59.3
54.7
166.0
16.8
34.5
59.3
55.3
172.2
16.7
32.5
62.4
60.6
179.9
16.6
34.9
62.5
65.9
176.7
18.2
35.6
60.0
62.9
76.9
74.1
70.8
67.7
71.4
69.7
70.9
76.7
76.5
78.5
38 Total assets/total liabilities and capital... 1,331.0 1,332.5 1,342.1 1,375.5 1,386.1 1,383.2 1,406.7 1,446.5 1,456.7 1,456.1
39 Deposits
40
Demand
41
Time and savings
42
Savings
43
Time
44 Borrowings
45 Other liabilities
46 Residual (assets less liabilities)
r
1,002.0
367. 5*634.4
215.9
418.4
994.0
355.7
638.3
218.0
420.3
997.4 1,013.2
362.0
375.8
635.4
637.4
216.9
216.7
418.5
420.7
137.9 r
94.6
96.5
141.7
99.8
97.1
150.5
97.1
97.2
159.5
102.8
100.0
165.4
104.2
100.9
165.8
104.4
100.8
4.8
14,930
5.9
14,946
4.9
14,954
12.9
14,968
11.9
14,933
1,015.6 1,012.3 1,020.9
376.4
369.1
369.7
639.2
651.8
642.5
217.2
219.1
217.6
422.0
434.2
423.5
1,043.6
383.2
660.5
214.2
446.2
1,062.6
394.2
668.4
208.3
460.1
1,058.5
384.9
673.6
205.9
467.7
169.5
113.1
103.2
182.1
115.2
105.6
171.6
118.5
104.0
169.5
122.2
105.8
8.6
14,960
17.8
14,972
8.4
14,963
5.0
14,969
n. a.
MEMO:
47 U.S. Treasury note balances included
in borrowing
48 Number of banks
4.0
14,926
1. Domestically chartered commercial banks include all commercial
banks in the United States except branches of foreign banks; included are
member and nonmember banks, stock savings banks, and nondeposit
trust companies.
2. Commercial banking institutions include domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act
and Agreement corporations, and New York state foreign investment
corporations.
NOTE. Figures are partly estimated. They include all bank-premises
subsidiaries and other significant majority-owned domestic subsidiaries.
Data for domestically chartered commercial banks are for the last
Wednesday of the month ; data for other banking institutions are for last
Wednesday except at end of quarter, when they are for the last day of the
month.
Commercial
Banks
All
1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series
Millions of dollars, except for number of banks
1977
1976
1978
1976
June 30
Dec. 31
1977
1978
Account
Dec. 31
June 30
Dec. 31
7 Total assets/total liabilities 1
Dec. 31
June 30
National (all insured)
Total insured
1 Loans and investments, gross
Loans
2 Gross
3 Net
Investments
4 U.S. Treasury securities
5 Other
June 30
827,696
854,733
914,779
956,431
476,610
488,240
523,000
542,218
578,734
560,077
601,122
581,143
857,509
636,318
695,443
672,207
340,691
329,971
351,311
339,955
384,722
372,702
403,812
390,630
101,461
147,500
129,562
100,568
153,042
130,726
99,333
157,936
159,264
97,001
163,986
157,393
55,727
80,191
76,072
53,345
83,583
74,641
52,244
86,033
92,050
50,519
87,886
90,728
583,304
599,743
651,360
671,166
825,003
847,372
922,657
945,874
469,377
476,381
520,167
526,932
3,022
44,064
285,200
2,817
44,965
284,544
7,310
49,843
319,873
7,956
47,203
312,707
1,676
23,149
163,346
1,632
22,876
161,358
4,172
25,646
181-, 821
4,483
22,416
176,025
8,248
484,467
7,721
507,324
8,731
536,899
8,987
569,020
4,907
276,296
4,599
285,915
5,730
302,795
5,791
318,215
14 Borrowings
15 Total capital accounts
75,291
75,061
81,137
75,502
89,339
79,082
98,351
83,074
54,421
41,319
57,283
43,142
63,218
44,994
68,948
47,019
16 MEMO: Number of banks
14,397
14,425
14,397
14,381
4,735
4,701
4,654
4,616
Demand
9 U.S. government
10 Interbank
11 Other
Time and savings
12 Interbank
13 Other
1,003,970 1,040,945 1,129,712 1 , 1 7 2 , 7 7 2
Insured nonmember
State member (all insured)
17 Loans and investments, gross
Loans
19 Net
Investments
20 U.S. Treasury securities
21 Other
23 Total assets/total liabilities 1
Demand
144,000
144,597
152,514
157,464
207,085
221,896
239,265
256,749
102,277
99,474
102,117
99,173
110,243
107,205
115,736
112,470
135,766
130,630
147,694
142,015
162,543
156,411
175,894
169,106
18,849
22,874
32,859
19,296
23,183
35,918
18,179
24,091
42,305
16,886
24,841
43,057
26,884
44,434
20,631
27,926
46,275
20,166
28,909
47,812
24,908
29,595
51,259
23,606
189,579
195,452
210,442
217,384
231,086
245,748
267,910
284,221
149,491
152,472
163,436
167,403
206,134
218,519
239,053
251,539
1,241
22,346
57,605
1,158
23,117
55,550
917
1,619
69,648
813
1,520
70,615
1,896
1,849
80,445
2,315
1,669
81,131
26 Interbank
27 Other
Time and savings
28 Interbank
29 Other
429
19,295
52,204
371
20,568
52,570
2,384
75,178
2,134
76,827
2,026
80,216
2,275
85,301
956
132,993
988
144,581
973
153,887
920
165,502
31 Total capital accounts
17,310
13,199
19,697
13,441
21,736
14,182
23,167
14,670
3,559
17,542
4,155
18,919
4,384
19,905
6,235
21,384
1,023
1,019
1,014
1,005
8,639
8,705
8,729
8,760
Noninsured nonmember
33 Loans and investments, gross
Loans
34 Gross
35 Net
Investments
36 U.S. Treasury securities
37 Other
39 Total assets/total liabilities 1
Demand
43 Other
Time and savings
45 Other
1. Includes items not shown separately.
Total nonmember
18,819
22,940
24,415
28,699
225,904
244,837
263,681
285,448
16,336
16,209
20,865
20,679
22,686
22,484
26,747
26,548
152,103
146,840
168,559
162,694
185,230
178,896
202,641
195,655
1,054
1,428
6,496
993
1,081
8,330
879
849
9,458
869
1,082
9,360
27,938
45,863
27,127
28,919
47,357
28,497
29,788
48,662
34,367
30,465
52,341
32,967
26,790
33,390
36,433
42,279
257,877
279,139
304,343
326,501
13,325
14,658
16,844
19,924
219,460
233,177
255,898
271,463
4
1,277
3,236
8
1,504
3,588
10
1,868
4,073
8
2,067
4,814
921
2,896
72,884
822
3,025
74,203
1,907
3,718
84,518
2,323
3,736
85,946
1,041
7,766
1,164
8,392
1,089
9,802
1,203
11,831
1,997
140,760
2,152
152,974
2,063
163,690
2,123
177,334
4,842
818
7,056
893
6,908
917
8,413
962
8,401
18,360
11,212
19,812
11,293
20,823
14,649
22,346
275
293
310
317
8,914
8,998
9,039
9,077
For Note see table 1.24.
A18
DomesticNonfinancialStatistics • January 1980
1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978
Millions of dollars, except for number of banks
Member b a n k s 1
Asset account
Insured
commercial
banks
Nonmember
banks i
Large banks
Total
New York
City
1 Cash bank balances, items in process
2
Currency and coin
3
Reserves with Federal Reserve Banks
4
D e m a n d balances with banks in United States..
5
Other balances with banks in United States
6
Balances with banks in foreign countries
7
Cash items in process of collection
8 Total securities held—Book value
9
U.S. Treasury
10
Other U.S. government agencies
11
States and political subdivisions
12
All other securities
13
Unclassified total
14
15
16
17
18
19
Trading-account securities
U.S. Treasury
Other U.S. government agencies
States and political subdivisions
All other trading account securities
Unclassified
20
21
22
23
24
Bank investment portfolios
U.S. Treasury
Other U.S. government agencies
States and political subdivisions
All other portfolio securities
25 Federal Reserve stock and corporate stock
All other
City of
Chicago
Other
large
158,380
12,135
28,043
41,104
4,648
3,295
69,156
134,955
8,866
28,041
25,982
2,582
2,832
66,652
43,758
867
3,621
12,821
601
331
25,516
5,298
180
1,152
543
15
288
3,119
47,914
2,918
12,200
3,672
648
1,507
26,969
37,986
4,901
11,067
8,945
1,319
705
11,049
23,482
3,268
3
15,177
2,066
463
2,504
262,199
95,068
40,078
5,698
94
179,877
65,764
25,457
85,125
3,465
66
20,808
9,524
1,828
9,166
291
7,918
2,690
1,284
3,705
240
58,271
22,051
7,730
27,423
1,048
19
92,881
31,499
14,616
44,831
1,887
47
82,336
29,315
14,622
36,136
2,234
28
6,833
4,125
825
1,395
394
94
6,681
4,103
816
1,381
316
66
3,238
2,407
401
363
67
708
408
82
117
101
2,446
1,210
278
794
145
19
290
78
55
107
3
47
151
23
9
14
78
28
255,366
90,943
39,253
119,865
5,305
173,196
61,661
24,641
83,745
3,149
17,570
7,117
1,426
8,803
224
7,210
2,282
1,201
3,588
138
55,825
20,840
7,452
26,629
903
92,591
31,422
14,561
44,724
1,884
82,185
29,293
14,613
36,123
2,156
121,260
1,656
1,403
311
111
507
475
253
41,258
34,256
4,259
2,743
31,999
25,272
4,119
2,608
3,290
1,987
821
482
1,784
1,294
396
94
16,498
12,274
2,361
1,863
10,427
9,717
541
169
9,365
9,090
140
135
30 Other loans, gross
31 LESS : Unearned income on loans
32
Reserves f o r loan loss
33 Other loans, net
675,915
17,019
7,431
651,465
500,802
11,355
5,894
483,553
79,996
675
1,347
77,974
26,172
107
341
25,724
190,565
3,765
2,256
184,544
204,069
6,809
1,949
195,311
175,113
5,664
1,537
167,912
Other loans, gross, by category
34 Real estate loans
35
Construction and land development
36
Secured by farmland
37
Secured by residential properties
38
1- to 4-family residences
39
FHA-insured or VA-guaranteed
40
Conventional
41
Multifamily residences
42
FHA-insured
43
Conventional
44
Secured by other properties
203,386
25,621
8,418
117,176
111,674
7,503
104,171
5,502
399
5,103
52,171
138,730
19,100
3,655
81,370
77,422
6,500
70,922
3,948
340
3,609
34,605
10,241
2,598
23
5,362
4,617
508
4,109
746
132
613
2,258
2,938
685
34
1,559
1,460
44
1,417
99
27
72
660
52,687
9,236
453
31,212
29,774
3,446
26,328
1,438
88
1,350
11,786
72,863
6,581
3,146
43,236
41,570
2,502
39,068
1,665
92
1,573
19,901
64,656
6,521
4,763
35,806
34,252
1,003
33,249
1,554
59
1,495
17,566
45
46
47
48
49
50
51
52
53
54
37,072
8,574
3,362
7,359
1,579
16,198
11,042
4,280
28,054
213,123
34,843
8,162
2,618
7,187
1,411
15,465
10,834
3,532
15,296
171,815
12,434
2,066
966
3,464
290
5,649
6,465
410
168
39,633
4,342
801
165
268
76
3,033
1,324
276
150
13,290
15,137
4,616
1,206
2,820
785
5,710
2,846
1,860
3,781
67,833
2,930
680
281
635
261
1,073
199
985
11,196
51,059
2,228
412
744
171
167
733
207
747
12,758
41,309
55 Loans to individuals
56
Installment loans
57
Passenger automobiles
58
Residential repair and modernization
59
Credit cards and related plans
60
Charge-account credit cards
61
Check and revolving credit plans
62
Other retail consumer goods
63
Mobile homes
64
Other
65
Other installment loans
66
Single-payment loans to individuals
67 All other loans
161,599
131,571
58,908
8,526
21,938
17,900
4,038
19,689
9,642
10,047
22,510
30,027
17,360
110,974
90,568
37,494
5,543
19,333
16,037
3,296
13,296
6,667
6,629
14,902
20,406
14,778
7,100
5,405
1,077
331
2,268
1,573
695
427
.179
249
1,302
1,694
3,545
2,562
1,711
209
60
1,267
1,219
47
57
19
38
119
851
1,290
40,320
33,640
11,626
2,088
9,736
8,192
1,545
5,242
2,563
2,678
4,948
6,680
6,100
60,993
49,811
24,582
3,064
6,062
5,053
1,009
7,570
3,905
3,664
8,533
11,182
3,844
50,624
41,003
21,414
2,983
2,605
1,863
742
6,393
2,976
3,417
7,608
9,621
2,582
68 Total loans and securities, net
956,579
696,833
102,383
35,536
259,820
299,094
259,867
6,717
22,448
3,255
16,557
34,559
6,212
16,529
3,209
16,036
30,408
1,145
2,332
1,642
8,315
11,323
96
795
188
1,258
1,000
3,931
6,268
1,282
6,054
12,810
1,041
7,133
96
409
5,275
505
5,926
46
521
4,249
1,198,495
904,182
170,899
44,170
338,079
351,034
294,595
26 Federal funds sold and securities resale agreement
27
Commercial banks
28
Brokers and dealers
29
Others
69
70
71
72
73
Loans to financial institutions
R E I T s and mortgage companies
Domestic commercial banks
Banks in foreign countries
Other depositary institutions
Other financial institutions
Loans to security brokers and dealers
Other loans to purchase or carry securities
Loans to farmers except real estate
Commercial and industrial loans
Direct lease financing
Fixed assets—Buildings, furniture, real estate.
Investment in unconsolidated subsidiaries
Customer acceptances outstanding
Other assets
74 Total assets
F o r notes see opposite page.
Commercial Banks
A19
1.26 Continued
Member banks i
Insured
commercial
banks
Liability or capital account
Nonmember
banks 1
Large banks
Total
New York
City
City of
Chicago
Other
large
All other
75 Demand deposits
76
Mutual savings banks
77
Other individuals, partnerships, and corporations
78
U.S. government
79
States and political subdivisions
80
Foreign governments, central banks, etc
81
Commercial banks in United States
82
Banks in foreign countries
83
Certified and officers' checks, etc
369,030
1,282
279,651
7,942
17,122
1,805
39,596
7,379
14,253
282,450
1,089
205,591
5,720
11,577
1,728
38,213
7,217
11,315
66,035
527
31,422
569
764
1,436
21,414
5,461
4,443
10,690
1
7,864
188
252
19
1,807
207
352
100,737
256
79,429
1,987
3,446
211
10,803
1,251
3,354
104,988
305
86,876
2,977
7,116
62
4,189
298
3,166
86,591
194
74,061
2,222
5,545
77
1,393
162
2,937
84 Time deposits
85
Accumulated for personal loan payments
86
Mutual savings banks
87
Other individuals, partnerships, and corporations
88
U.S. government
89
States and political subdivisions
90
Foreign governments, central banks, etc
91
Commercial banks in United States
92
Banks in foreign countries
368,562
79
399
292,120
864
59,087
6,672
7,961
1,381
266,496
66
392
210,439
689
40,010
6,450
7,289
1,161
38,086
0
177
29,209
61
1,952
3,780
2,077
829
15,954
0
40
12,074
40
1,554
1,145
999
103
98,525
1
148
76,333
356
16,483
1,401
3,585
219
113,931
65
27
92,824
232
20,020
124
629
9
102,066
13
7
81,680
175
19,077
222
672
220
223,326
207,701
11,216
82
4,298
30
152,249
141,803
7,672
65
2,682
27
10,632
9,878
519
2
215
18
2,604
2,448
148
3
4
54,825
51,161
3,195
24
437
8
84,188
78,316
3,809
35
2,025
2
71,077
65,897
3,544
17
1,616
3
94
95
96
97
98
Individuals and nonprofit organizations
Corporations and other profit organizations
U.S. government
States and political subdivisions
All other
>
*
960,918
701,195
114,753
29,248
254,087
303,107
259,733
100 Federal funds purchased and securities sold under agreements
to repurchase
101
Commercial banks
102
Brokers and dealers
103
Others
91,981
42,174
12,787
37,020
85,582
39,607
11,849
34,126
21,149
6,991
2,130
12,028
8,777
5,235
1,616
1,926
41,799
21,609
6,381
13,809
13,857
5,773
1,722
6,362
6,398
2,566
939
2,894
104
105
106
107
8,738
1,767
16,661
27,124
8,352
1,455
16,140
23,883
3,631
234
8,398
8,600
306
27
1,260
1,525
3,191
701
6,070
9,020
1,225
491
412
4,477
386
316
521
3,494
1,107,188
836,607
157,026
41,144
314,868
323,569
270,849
5,767
4,401
1,001
79
2,033
1,287
1,366
85,540
88
17,875
32,341
33,517
1,719
63,174
36
12,816
23,127
26,013
1,182
12,871
0
2,645
4,541
5,554
132
2,947
0
570
1,404
921
52
21,177
5
4,007
8,148
8,680
337
26,178
31
5,594
9,034
10,858
661
22,380
52
5,064
9,217
7,509
538
1,198,495
904,182
170,899
44,170
338,079
351,034
294,595
252,337
171,864
18,537
5,576
60,978
86,774
80,472
146,283
124,916
36,862
6,030
45,731
36,293
21,379
43,873
651,874
183,614
944,593
33,682
483,316
150,160
687,543
4,272
76,750
32,196
107,028
1,887
25,722
13,216
28,922
16,007
184,790
65,776
250,804
11,517
196,054
38,972
300,789
10,307
168,558
33,454
257,062
92,685
8,716
86,635
8,326
22,896
3,679
9,473
370
40,541
3,211
13,725
1,067
6,053
390
18,820
186,837
160,227
26,610
17,658
152,553
129,667
22,886
10,063
32,654
27,950
4,704
1,477
13,486
11,590
1,896
4,820
66,684
56,383
10,301
1,297
39,728
33,743
5,985
1,162
34,284
30,560
3,724
14,390
5,593
12
9
153
5,419
8,810
99 Total deposits
Other liabilities for borrowed money
Mortgage indebtedness
Bank acceptances outstanding
Other liabilities
108 Total liabilities
109 Subordinated notes and debentures
110 Equity capital
112
113
114
115
Common stock
Surplus
Undivided profits
Other capital reserves
MEMO:
117 Demand deposits adjusted 2
Average for last 15 or 30 days
118 Cash and due from bank
119 Federal funds sold and securities purchased under agree120
121
122
123
Total loans
Time deposits of $100,000 or more
Total deposits
Federal funds purchased and securities sold under agreements to repurchase
124 Other liabilities for borrowed money
125 Standby letters of credit outstanding
126 Time deposits of $100,000 or more
129 Number of banks
1. Member banks exclude and nonmember banks include 13 noninsured
trust companies that are members of the Federal Reserve System.
2. Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. government, less cash items reported
as in process of collection.
NOTE. Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Securities are reported on a gross basis before deductions of valuation reserves. Back data in lesser detail were shown in
previous issues of the BULLETIN.
A20
DomesticNonfinancialStatistics • January 1980
1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1979
Oct. 31
Nov. 7
bank,
Nov. 14 Nov. 21 Nov. 28 Dec. 5*> Dec. 12» Dec. 19? Dec. 26*> 1979A
1 Cash items in process of collection
52,185 52,573 58,698 54,058 50,635 54,832 53,588 54,391 50,219
2 Demand deposits due from banks in the United
States
17,685
18,787 18,389
15,768
16,522
17,905
15,151
18,836
9,090
3 All other cash and due from depositary
institutions
33,326 29,446 31,558 31,708 34,726 33,316 32,877 30,302 28,011
503,229 503,148 506,553 501,108 500,814 509,020 505,753 512,758 518,182
4 Total loans and securities
Securities
35,360
5 U.S. Treasury securities
4,746
6
Trading account
30,613
7
Investment account, by maturity
8,127
8
One year or less
9
Over one through five years
18,161
10
Over five years
4,325
11 Other securities
70,833
3,774
12
Trading account
67,060
Investment account
15,322
U.S. government agencies
States and political subdivision, by maturity. . 49,057
6,457
One year or less
42,599
Over one year
Other bonds, corporate stocks and securities.
2,681
34,701
4,262
30,439
8,193
17,963
4,282
70,452
3,622
66,830
15,215
48,947
6,645
42,302
2,668
35,928
5,452
30,476
8,296
17,894
4,286
70,755
3,734
67,021
15,400
48,942
6,401
42,541
2,678
Loans
25,198 27,195 28,568
19 Federal funds sold 1
17,912 19,606 20,836
20
To commercial banks
5,041
5,272
21
To nonbank brokers and dealers in securities.
5,257
22
To others
2,246
2,317
2,475
383,764 382,809 383,368
23 Other loans, gross
24
Commercial and industrial
152,701 152,623 152,107
3,934
3,837
3,801
25
Bankers' acceptances and commercial paper.
26
All other
148,767 148,786 148,306
142,142 142,142 141,564
27
U.S. addresses
6,644
6,625
6,742
28
Non-U.S. addressees
96,096 96,431 96,616
29
Real estate
70,117 70,057 70,152
30
To individuals for personal expenditures
To financial institutions
3,677
3,446
31
Commercial banks in the United States
3,187
6,802
7,051
7,474
32
Banks in foreign countries
33
Sales finance, personal finance companies,
9,580
9,349
9,383
etc
16,910 16,878
16,777
34
Other financial institutions
7,362
6,754
7,314
35
To nonbank brokers and dealers in securities. .
36
To others for 2purchasing and carrying
2,506
2,471
2,474
securities
4,933
4,940
37
To finance agricultural production
4,933
13,080 12,773 12,985
38
All other
6,825
6,868
6,920
39 LESS: Unearned income
5,141
5,100
5,147
40
Loan loss reserve
371,838 370,800 371,301
41 Other loans, net
7,405
7,480
7,516
42 Lease financing receivables
59,273 58,961 59,940
43 All other assets
673,105 670,395 682,654
44 Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Banks in foreign countries
Foreign governments and official institutions. . .
Certified and officers' checks
54 Time and savings deposits
55
Savings
Individuals and nonprofit organizations
56
Partnerships and corporations operated for
57
profit
Domestic
governmental units
58
All other
59
Time
60
Individuals, partnerships, and corporations..
61
States and political subdivisions
62
U.S. government
63
Commercial banks in the United States
64
Foreign governments, official institutions, and
65
banks
66 Federal funds purchased 3
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks
68
Treasury tax-and-loan notes
69
All other liabilities for borrowed money
70 Other liabilities and subordinated note and
debentures
71 Total liabilities
72 Residual (total assets minus total liabilities)4
109
280
4,999
35,559
5,121
30,438
8,037
17,898
4,503
70,420
3,439
66,981
15,347
48,983
6,588
42,395
2,651
35,777
5,234
30,544
8,096
17,953
4,494
70,582
3,419
67,162
15,454
49,058
6,420
42,638
2,650
24,744
17,862
5,005
1,877
382,519
151,941
3,917
148,024
141,425
6,599
96,932
70,289
24,202
17,668
4,626
1,909
382,377
150,996
3,749
147,246
140,678
6,569
97,277
70,505
3,286
7,025
3,253
6,642
3,482
6,974
3,140
6,896
3,332
6,974
3,715
6,796
I
9,323
16,617
6,965
9,396
16,648
7,352
9,946
16,819
8,375
9,477
16,714
7,043
9,621
17,001
8,180
10,122
16,966
7,483
4
31
2,497
2,540
2,508
2,573
2,607
2,588
4,894
4,912
4,848
4,850
4,889
4,823
12,749
12,552 12,311
12,887
13,033
14,030
6,964
6,892
6,939
7,039
6,955
7,051
5,170
5,169
5,209
5,222
5,218
5,191
370,384 370,253 374,180 371,483 377,520 380,282
7,544
7,675
7,784
7,531
7,810
7,842
58,877 59,794 60,148 60,633 61,558 60,465
669,051 671,418 681,513 675,786 685,656 673,808
3
41
84
166
34
3,384
31
199
5,767
36,954
6,049
30,905
7,931
18,354
4,620
71,669
4,450
67,219
15,458
49,125
6,428
42,697
2,636
37,271
6,314
30,958
8,030
18,295
4,632
71,711
4,208
67,503
15,590
49,257
6,425
42,832
2,656
36,381
5,483
30,898
8,095
18,281
4,522
71,527
3,768
67,759
15,679
49,424
6,439
42,984
2,657
35,583
5,033
30,550
7,951
18,079
4,520
71,418
3,597
67,821
15,691
49,474
6,361
43,114
2,655
426
26,217 25,288 27,329
19,010
18,952 20,562
5,159
5,100
4,667
2,048
1,669
1,667
386,280 383,640 389,781
152,644 151,829 154,681
4,738
4,512
4,848
147,905 147,317 149,833
141,375 140,805 143,312
6,512
6,531
6,520
97,464 97,990 98,277
70,636 70,843 71,224
30,898
22,877
5,663
2,358
392,525
156,030
5,388
150,642
144,114
6,527
98,204
71,702
299
299
191,607 194,489 200,192 188,105 185,166 196,858 193,130 199,303 188,878
779
796
780
717
685
613
602
638
657
134,886 133,421 140,382 133,102 130,639 134,685 136,482 137,067 144,836
5,134
4,594
4,616
4,562
4,888
4,560
4,562
5,112
4,805
1,305
756
876
926
786
2,703
1,774
3,082
839
32,904 37,887 36,026 31,274 30,612 33,394 29,706 34,669 20,621
7,274
8,074
7,461
8,195
7,816
7,740
8,305
7,678
8,670
1,292
991
1,820
1,891
2,239
1,760
1,894
2,463
1,902
7,639
8,260
8,333
7,655
7,976
10,713
9,236
9,163
6,549
261,521 261,561 262,518 264,098 264,662 265,622 265,460 265,452 265,004
74,008 73,766 73,236 73,035 72,559 72,722 72,464 72,413 72,223
69,314 69,077 68,588 68,444 67,961 68,094 67,845 67,898 67,729
3,984
3,954
3,912
3,874
3,924
3,911
3,896
3,805
3,796
689
717
708
662
684
690
696
688
674
21
18
27
26
21
25
27
23
23
187,513 187,795 189,282 191,063 192,103 192,900 192,996 193,039 192,782
154,614 155,076 156,440 158,092 158,937 159,956 159,563 159,817 159,572
22,240 22,185 22,165 22,209 22,248 22,063 22,056 21,682 21,651
509
462
477
494
498
494
493
493
492
5,272
5,309
5,305
5,385
5,498
5,252
5,485
5,485
5,217
426
43
359
25
891
890
167
711
41
671
12
3,583
866
215
652
651
1,159
1,392
1,585
1,428
85
9
8
54
3,279
1,440
1,383
53
4
1,839
1,645
189
2
3
4,891
94,354
4,785
93,865
4,859
97,837
4,879
92,658
4,927
91,540
4,901
95,767
5,398
95,720
5,795
92,667
5,849
90,567
8
1,631
4,866
12,669
245
356
14,104
673
1,288
13,506
1,449
2,609
13,412
3,740
2,540
14,282
1,620
434
13,649
1,285
574
13,440
951
6,566
13,555
1,410
8,195
14,842
2
380
61,655 60,975 61,823 62,027 64,712 62,559 61,023 62,170 59,935
628,304 625,595 637,838 624,338 626,643 636,510 630,632 640,664 628,831
138
5,392
44,801
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes securities sold under agreements to repurchase.
148
44,800
44,816
44,712
44,775
45,003
45,154
44,991
44,977
375
4. This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
A See p. A-23.
Weekly Reporting
Banks
A 21
1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977 Assets and Liabilities
Millions of dollars, Wednesday figures
1979
Account
Oct. 31
Nov. 7
bank,
Nov. 14 Nov. 21 Nov. 28 Dec. 5P Dec. 12® Dec. 19P Dec. 26» 1979A
49,806 50,322 55,734 51,464 48,418 52,343 51,214 51,803 47,392
1 Cash items in process of collection
2 Demand deposits due from banks in the United
17,202
17,999
8,353
15,715 14,344
16,915
17,848 17,507 14,952
States
3 All other cash and due from depositary
31,596 27,929 29,788 30,153 32,757 31,590 31,055 28,658 26,258
institutions
471,119 470,727 474,286 468,642 468,790 476,548 473,323 479,954 485,305
4 Total loans and securities
Securities
33,098
5 U.S. Treasury securities
4,693
6
Trading account
28,405
7
Investment account, by maturity
7,645
8
One year or less
16.732
9
Over one through five years
4,028
10
Over five years
65,512
11 Other securities
3,688
12 Trading account
61,824
13 Investment account
14,276
14
U.S. government agencies
15
States and political subdivision, by maturity.. 45,032
5,869
16
One year or less
39,163
17
Over one year
2,516
18
Other bonds, corporate stocks and securities.
Loans
19 Federal funds sold 1
20
To commercial banks
21
To nonbank brokers and dealers in securities..
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers' acceptances and commercial p a p e r . .
26
All other
27
U.S. addresses
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies,
34
35
36
37
38
39
40
41
42
43
44
32,451
4,220
28,230
7,707
16,538
3,985
65,154
3,554
61,600
14,171
44,925
6,062
38,864
2,503
33,669
5,409
28,260
7,818
16,453
3,988
65,418
3,648
61,770
14,338
44,918
5,821
39,097
2,514
33,262
5,080
28,183
7,512
16,470
4,200
65,068
3,342
61,727
14,287
44,950
6,013
38,936
2,490
33,472
5,194
28,279
7,566
16,522
4,190
65,212
3,316
61,896
14,385
45,017
5,844
39,174
2,494
22,977
16,017
4,771
2,189
360,611
145,176
3,848
141,328
134,749
6,579
90,421
62,074
24,605
17,399
4,956
2,250
359,679
145,092
3,756
141,336
134,738
6,599
90,770
62,024
26,089
18,797
4,877
2,415
360,327
144,611
3,723
140,888
134,192
6,696
90,947
62,136
22,158
15,776
4,566
1,817
359,434
144,449
3,842
140,607
134,054
6,554
91,247
62,238
22,064
15,934
4,284
1,846
359,313
143,552
3,674
139,878
133,358
6,520
91,589
62,425
3,611
6,724
3,367
6,984
3,124
7,386
3,208
6,959
3,189
6,576
34,064
5,445
28,620
7,586
16,839
4,194
66,127
3,656
62,471
14,597
45,372
5,875
39,496
2,503
33,266
5,002
28,264
7,440
16,637
4,187
66,012
3,488
62,524
14,610
45,413
5,798
39,615
2,502
23,657 22,589 24,417
16,762
18,054
16,820
4,844
4,219
4,749
1,614
1,608
1,993
363,193 360,747 366,746
145,236 144,465 147,273
4,667
4,443
4,768
140,570 140,022 142,504
134,085 133,558 136,033
6,484
6,463
6,471
91,771 92,274 92,550
62,536 62,905 63,230
28,081
20,540
5,236
2,306
369,330
148,583
5,310
143,272
136,795
6,478
92,476
63,656
34,655
6,008
28,647
7,411
16,931
4,304
66,292
4,328
61,964
14,391
45,090
5,873
39,217
2,483
3,412
6,899
34,961
6,277
28,684
7,511
16,858
4,315
66,332
4,110
62,222
14,516
45,203
5,868
39,335
2,503
3,070
6,817
3,268
6,883
3,647
6,714
9,282
9,929
9,142
9,754
9,422
9,158
9,203
9,395
9,205
16,254
16,533
16,155
16,187
16,557
16,358
16,438 16,417 16,326
Other financial institutions
7,222
6,959
7,375
6,877
7,277
8,095
6,660
8,293
7,257
To nonbank brokers and dealers in securities...
To others for 2purchasing and carrying
2,284
2,355
2,257
2,275
2,343
2,377
2,284
2,316
2,248
securities
4,722
4,656
4,729
4,744
4,681
4,767
4,685
4,770
4,763
To finance agricultural production
11,721
13,338
12,406
12,142 12,393 12,155 12,287 11,934
12,466
All other
6,321
6,366
6,464
6,478
6,386
6,345
6,380
6,295
6,253
LESS: Unearned income
4,907
4,895
4,891
4,940
4,871
4,936
4,866
4,928
4,827
Loan loss reserve
349,532 348,517 349,111 348,153 348,042 351,944 349,441 355,345 357,945
Other loans, net
7,329
7,633
7,578
7,603
7,317
7,340
7,469
7,283
7,208
Lease financing receivables
57,641 57,331 58,328 57,292 58,180 58,405 58,932 59,806 58,702
All other assets
633,644
629,832
636,446
645,823
642,959
632,688
642,070
634,286
631,441
Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
47
Individuals, partnerships, and corporations
48
States and political subdivisions
49
U.S. government
50
Commercial banks in the United States
51
Banks in foreign countries
52
Foreign governments and official institutions. . .
53
Certified and officers' checks
54 Time and savings deposits
55
Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for
profit
58
Domestic governmental units
59
All other
60
Time
61
Individuals, partnerships, and corporations.
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
66 Federal funds purchased 3
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks
68
Treasury tax-and-loan notes
69
All other liabilities for borrowed money
70 Other liabilities and subordinated note and
debentures
71 Total liabilities
72 Residual (total assets minus total liabilities) 4
180,166 183,233 188,263 176,738 174,200 185,036 181,345 187,245 176,740
660
578
635
744
748
587
757
690
613
125,874 124,692 131,020 124,181 121,899 125,418 127,096 127,800 135,202
4,274
4,018
4,151
4,074
4,406
4,082
4,013
4,056
4,615
1,639
845
770
807
719
2,497
2,845
683
1,207
19,212
33,211
31,488 36,403 34,468 29,854 29,336 31,936 28,369
8,006
7,763
7,679
8,236
8,613
8,127
7,626
7,391
7,223
1,757
2,456
1,900
1,800
2,232
1,890
1,893
989
1,261
8,954
7,339
7,403
6,258
10,422
7,735
8,851
8,026
7,963
243,906 243,906 244,818 246,251 246,834 247,869 247,713 247,796 247,333
68,739 68,513 68,018 67,832 67,384 67,512 67,271 67,240 67,084
64,403 64,164 63,722 63,586 63,136 63,244 63,006 63,076 62,932
3,514
3,589
3,627
3,621
3,605
3,520
3,689
3,665
3,633
614
642
621
614
633
631
601
666
626
26
26
27
22
23
25
20
21
18
175,167 175,393 176,800 178,418 179,450 180,357 180,443 180,555 180,249
144,469 144,892 146,176 147,738 148,554 149,652 149,242 149,455 149,196
19,845 19,778
20,285 20,213 20,210 20,192 20,263 20,120 20,119
484
502
491
487
487
488
486
470
456
5,122
5,202
4,946
5,057
5,200
4,979
5,038
5,223
5,072
69
201
3,262
254
254
36
208
10
607
607
165
432
22
410
10
193
193
2,349
521
521
520
1
808
929
1
9
3
34
43
120
21
2,208
30
136
3,797
1,025
916
60
5
2
39
2,203
1,026
985
41
1
1,177
1,064
111
1
4,885
89,507
4,780
88,428
4,855
92,378
4,874
87,471
4,922
86,366
4,896
90,538
5,393
90,688
5,791
87,557
5,845
85,516
8
1,410
4,509
12,388
201
319
13,687
651
1,181
13,130
1,360
2,449
12,989
3,581
2,386
13,938
1,568
400
13,336
1,261
528
12,888
884
6,095
13,208
1,294
7,691
14,420
216
60,396 59,686 60,566 60,709 63,430 61,172 59,724 60,872 58,544
592,283 589,460 600,987 587,968 590,736 599,918 594,146 603,656 591,539
111
3,564
42,104
233
42,003
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes securities sold under agreements to repurchase.
99
41,980
41,972
41,864
41,952
42,152
42,300
42,167
4. This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
A See p. A-23.
A22
DomesticNonfinancialStatistics • January 1980
1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1979
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
4 Total loans and securities 1
Securities
2
5 U.S. Treasury securities
6
Trading account 2
7
Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities 2
13
14
15
16
17
18
Investment account
U.S. government agencies
States and political subdivision, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans
19 Federal funds sold 3
20
To commercial banks
21
To nonbank brokers and dealers in securities
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers' acceptances and commercial paper
26
All other
27
U.S. addresses
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
To financial institutions
31
Commercial banks in the United States
32
Banks in foreign countries
33
Sales finance, personal finance companies,
etc
34
Other financial institutions
35
To nonbank brokers and dealers in securities
36
To others for 4purchasing and carrying
securities
37
To finance agricultural production
38
All other
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets 5
44 Total assets
Deposits
45 Demand deposits
46
Mutual savings banks
47
Individuals, partnerships, and corporations
48
States and political subdivisions
49
U.S. government
50
Commercial banks in the United States
51
Banks in foreign countries
52
Foreign governments and official institutions
53
Certified and officers' checks
54 Time and savings deposits
55
Savings
56
Individuals and nonprofit organizations
57
Partnerships and corporations operated for
profit
58
Domestic governmental units
59
All other
60
Time
61
Individuals, partnerships, and corporations
62
States and political subdivisions
63
U.S. government
64
Commercial banks in the United States
65
Foreign governments, official institutions, and
banks
66 Federal funds purchased 6
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks
68
Treasury tax-and-loan notes
69
All other liabilities for borrowed money
70 Other liabilities and subordinated note and
debentures
71 Total liabilities
72 Residual (total assets minus total liabilities) 7
1.
2.
3.
4.
Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
Oct. 31
Nov. 7
Nov. 14 Nov. 21 Nov. 28 Dec. 5P Dec. 12 P Dec. 19 P Dec. 26*
18,045
20,448
19,713
17,388
11,847
13,037
11,922
10,372
18,015
11,795
19,442
11,036
19,083
19,078
14,205
9,655
12,339
3,369
8,997
8,291
4,692
6,065
9,961
7,117
6,469
8,076
6,658
108,327 109,360 108,618 108,034 109,022 110,699 108,335 112,927 115,511
6,314
1,343
4,385
586
6,300
1,348
4,376
576
6,2 i 8
1,348
4,294
576
6,292
1,333
4,271
688
6,167
1,276
4,240
651
6,342
1,265
4,461
616
6,165
1,165
4,281
720
6,055
1,165
4,284
605
5,857
1,165
4,066
626
11,939
2,356
9,028
1,400
7,628
555
11,899
2,356
8,990
1,411
7,579
553
12,011
2,479
8,954
1,407
7,546
578
12,034
2,478
8,999
1,470
7,529
557
12,137
2,544
9,035
1,442
7,592
558
12,166
2,539
9,066
1,471
7,595
561
12,204
2,546
9,083
1,472
7,611
576
12,412
2,550
9,269
1,524
7,745
592
12,419
2,530
9,301
1,551
7,749
588
5,749
3,198
1,823
728
86,850
45,383
1,228
44,155
42,025
2,130
12,062
8,100
7,183
4,625
1,761
796
86,532
45,392
1,195
44,197
42,027
2,169
12,073
8,098
5,533
3,198
1,646
690
87,445
45,541
1,371
44,170
41,924
2,245
12,072
8,118
5,456
3,498
1,327
631
86,864
45,315
1,531
43,784
41,653
2,132
12,120
8,144
7,208
5,192
1,372
644
86,127
44,790
1,437
43,353
41,232
2,121
12,141
8,166
7,188
4,745
1,790
653
87,608
45,598
1,661
43,936
41,838
2,098
12,137
8,188
6,210
4,230
1,509
471
86,381
45,347
1,682
43,665
41,595
2,070
12,191
8,419
7,411
5,415
1,376
621
89,724
46,963
1,836
45,127
43,034
2,093
12,243
8,469
10,166
7,870
1,502
794
89,740
47,143
1,929
45,214
43,101
2,113
12,284
8,495
1,695
3,010
1,313
3,245
1,289
3,533
1,414
3,319
1,422
2,839
1,469
3,166
1,272
3,167
1,260
3,154
1,389
2,924
3,574
5,058
4,180
3,485
5,108
4,120
3,542
5,052
4,342
3,478
4,993
4,287
3,550
5,012
4,386
3,784
4,972
4,745
3,560
4,921
4,033
3,547
5,274
5,133
3,874
5,262
4,423
444
421
422
430
422
426
425
426
426
249
262
264
252
266
274
276
290
278
3,097
3,007
3,107
3,119
2,860
2,983
3,252
2,796
3,228
938
950
1,039
994
972
985
1,050
971
983
1,587
1,603
1,622
1,636
1,621
1,619
1,626
1,633
1,643
84,325 83,978 84,856 84,252 83,511 85,003 83,755 87,049 87,069
1,424
1,504
1,501
1,425
1,421
1,426
1,426
1,498
1,505
28,588 27,928 29,237 27,802 27,648 29,308 30,350 29,630 28,110
177,228 178,263 180,872 172,140 174,375 180,067 177,212 182,134 167,394
61,697
394
31,885
434
229
18,776
5,426
723
3,830
42,903
9,511
8,993
66,715
431
32,137
385
144
23,199
5,622
953
3,844
42,991
9,546
9,034
64,284
402
33,166
436
115
19,533
6,050
1,446
3,137
43,295
9,472
8,967
58,677
350
30,274
557
119
16,913
5,906
992
3,566
44,049
9,430
8,938
58,994
288
29,868
403
84
17,242
5,830
1,457
3,821
44,383
9,385
8,890
63,763
360
29,882
470
718
18,926
6,238
1,069
6,098
44,652
9,423
8,935
60,850
311
30,933
340
352
16,110
6,377
1,545
4,880
44,972
9,431
8,922
65,120
351
32,027
407
758
20,470
5,635
1,061
4,410
45,646
9,408
8,927
51,261
347
33,368
431
104
6,727
6,509
1,086
2,689
45,359
9,448
8,965
358
149
11
33,391
27,391
1,772
48
1,511
352
150
344
134
13
34,619
28,577
1,734
42
1,495
348
132
15
34,998
28,852
1,723
42
1,593
353
125
33,445
27,537
1,762
49
1,470
348
140
17
33,823
27,795
1,748
47
1,488
35,229
29,213
1,672
42
1,589
351
143
15
35,541
29,109
1,613
41
1,576
338
131
12
36,239
29,591
1,591
47
1,442
345
126
12
35,911
29,233
1,569
46
1,379
2,670
27,983
2,628
26,712
2,746
30,572
2,770
26,362
2,788
24,354
2,714
27,518
3,201
28,693
3,568
25,299
3,684
25,018
942
6,390
4
5,896
332
5,932
293
626
6,442
1,252
580
6,807
6,430
49
6,020
i ,820
6,301
631
2,058
7,234
9
9
500
3
23,571 22,227 22,665 21,972 24,326 23,311 22,700 24,061 21,986
163,485 164,546 167,082 158,421 160,696 166,177 163,285 168,247 153,547
13,743
13,717
13,790
13,719
13,680
13,890
13,926
13,887
13,846
5. Includes trading account securities.
6. Includes securities sold under agreements to repurchase.
7. This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
Weekly Reporting
Banks
A 23
1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1979
Category
Oct. 31
Nov. 7
Adjust-
bank,
Nov. 14 Nov. 21 Nov. 28 Dec. 5p Dec. 12f Dec. 19 p Dec. 26 p 1979 A
BANKS WITH ASSETS OF $ 7 5 0 MILLION OR MORE
1 Total loans (gross) and investments adjusted 1
2 Total loans (gross) adjusted 1
3 Demand deposits adjusted 2
493,566 492,105 494,597 492,094 492,017 498,629 495,818 501,126 503,832
387,373 386,952 387,914 386,114 385,658 390,006 386,836 393,217 396,831
105,213 103,274 104,592 101,847 103,133 105,929 108,063 107,161 117,199
4 Time deposits in accounts of $100,000 or more. .. 126,333 126,568 127,714 129,255 129,959
90,645 90,574 91,381 92,964 93,350
5
Negotiable CDs
35,688 35,994 36,333 36,291 36,608
6
Other time deposits
7 Loans sold outright to affiliates 3
8
Commercial and industrial
9
Other
3,633
2,648
985
3,610
2,622
988
3,660
2,618
1,042
3,576
2,525
1,051
3,602
2,535
1,067
130,518 130,352 130,213 129,695
93,775 93,170 92,972 92,581
36,742 37,182 37,242 37,114
3,146
2,070
1,077
3,184
2,097
1,087
3,200
2,110
1,090
4,899
3,582
1,419
426
238
188
2,707
1,780
927
BANKS WITH ASSETS OF $ 1 BILLION OR M O R E
10 Total loans (gross) and investments
adjusted 1
1
11 Total loans (gross) adjusted
2
12 Demand deposits adjusted
462,570 461,122 463,581 460,939 460,938 467,565 464,797 470,033 472,502
363,960 363,518 364,494 362,608 362,254 366,618 363,504 369,841 373,224
97,666 95,824 97,254 94,575 95,726 98,260 100,123 99,385 109,367
13 Time deposits in accounts of $100,000 or m o r e . . . 118,478 118,703 119,788 121,190 121,903 122,588 122,434
84,739 84,685 85,430 86,920 87,333 87,883 87,302
14
Negotiable CDs
33,739 34,018 34,357 34,270 34,570 34,705 35,132
15
Other time deposits
3,576
2,621
955
3,542
2,590
952
3,082
2,038
1,044
3,120
2,066
1,054
19 Total loans (gross) and investments adjusted 1 .4.. 105,960 105,976 106,721 105,735 105,024 107,091
87,707 87,777 88,492 87,408 86,720 88,582
20 Total loans (gross) adjusted2 1
24,647 22,924 24,923 24,257 23,653 24,676
21 Demand deposits adjusted
105,459
87,089
25,305
16 Loans sold outright to affiliates 3
17
Commercial and industrial
18
Other
3,593
2,586
1,007
3,509
2,494
1,015
3,534
2,503
1,031
122,367 121,826
87,111 86,710
35,255 35,116
3,140
2,080
1,060
3,209
2,348
918
247
67
180
2,649
1,752
898
BANKS IN N E W YORK CITY
22 Time deposits in accounts of $100,000 or m o r e . . . 26,714
18,810
Negotiable CDs
23
7,904
24
Other time deposits
26,702
18,857
7,845
1. Exclusive of loans and federal funds transactions with domestic
commercial banks.
2. All demand deposits except U.S. government and domestic banks
less cash items in process of collection.
3. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank) and nonconsolidated nonbank subsidiaries of the
holding company.
26,955
19,050
7,904
27,718
19,807
7,911
28,022
20,110
7,912
28,187
20,192
7,994
28,479
20,109
8,370
108,927 108,923
90,460 90,647
24,812 30,225
29,106
20,447
8,659
28,760
20,214
8,546
4. Excludes trading account securities.
A These amounts represent accumulated adjustments originally made
to offset the cumulative effects of mergers. A "positive" adjustment bank
should be added to, and a "negative" adjustment bank subtracted from,
outstanding data for any date in the year to establish comparability with
any date in the subsequent year.
NOTES TO TABLE 1.311.
1. Commercial banks are those in the 50 states and the District of
Columbia with national or state charters plus U.S. branches, agencies,
and New York investment company subsidiaries of foreign banks and
Edge Act corporations.
2. Includes seasonally adjusted Federal funds, RPs, and other borrowings from nonbanks and not seasonally adjusted net Eurodollars and
loans to affiliates. Includes averages of Wednesday data for domestic
chartered banks and averages of current and previous month-end data
for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a
promissory note or due bill, given for the purpose of borrowing money
for the banking business. This includes borrowings from Federal Reserve
Banks and from foreign banks, term federal funds, overdrawn due from
bank balances, loan RPs, and participations in pooled loans. Includes
averages of daily figures for member banks and averages of current and
previous month-end data for foreign-related institutions.
4. Loans initially booked by the bank and later sold to affiliates that
are still held by affiliates. Averages of Wednesday data.
5. Includes averages of daily figures for member banks and quarterly
call report figures for nonmember banks.
6. Includes averages of current and previous month-end data.
7. Based on daily average data reported by 46 large banks.
8. Includes U.S. Treasury demand deposits and Treasury tax and loan
notes at commercial banks. Averages of daily data.
9. Averages of Wednesday figures.
A24
1.31
DomesticNonfinancialStatistics • January 1980
LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial
Loans
Millions of dollars
Net change during
Outstanding
Industry classification
1979
1979
Nov. 28 Dec. 26?
Q4f
Aug. 29 Sept. 26
Oct. 31
1 Durable goods manufacturing
21,703
23,594
23,472' 22,857
23,593
2,689
2 Nondurable goods manufacturing
3
Food, liquor, and tobacco
4
Textiles, apparel, and leather
5
Petroleum refining
6
Chemicals and rubber
7
Other nondurable goods
18,441
4,598
5,090
1,841
3,641
3,270
18,907
4,906
5,029
1,972
3,627
3,372
19,121'
5,024
4,849
2,182
3,810
3,255'
18,379
4,968
4,608
1,873
3,749
3,182
19,205
5,220
4,342
2,677
3,836
3,129
1,503'
535
328
6
179
456
11,442
11,681
11,697
8 Mining (including crude petroleum and
natural gas)
Q3
Adjustment
bankA
1979
Dec.*5
Oct.
Nov.
1
-122'
-614
736
46
298
314
-686
705
209
-243
214'
118
-180
210
183
-117'
-741
-57
-241
-309
-61
-73
826
252
-266
805
87
-53
39
6
6
1
14
12
11,502
11,998
673
317
16
-195
495
14
9 Trade
10
Commodity dealers
11
Other wholesale
12
Retail
24,389' 24,655' 25,410' 25,078
1,861
1,859
2,191
1,675
12,170 11,902
12,038
11,940
10,675' 10,855 r 11,049' 11,316
24,885
2,134
11,992
10,759
685'
-58
199
544
230
275
52
-96
755'
332
229
194'
-331
-330
-268
267
-193
273
90
-557
121
6
34
82
14
15
16
13 Transportation, communication, and
other public utilities
Transportation
Communication
Other public utilities
15,788
6,691
2,139
6,959
16,760'
6,833'
2,325
7,602
16,885
7,065
2,404
7,416
17,212
7,075
2,475
7,662
17,840
7,133
2,522
8,186
1,434'
380'
274
779
1,080
300
197
583
125'
232'
80
-187
327
10
70
247
628
58
47
523
14
7
1
5
17 Construction
18 Services
19 All other i
5,805
18,082
14,213'
5,892'
18,359
13,725'
5,687
18,782
13,694'
5,692
18,926
13,710
5,783
19,399
14,092
309'
1,108'
-1,335'
-109
1,040
367
-205
423
-31'
6
144
16
90
472
382
23
96
168
129,863' 133,573' 134,747' 133,358 136,795
7,066'
3,222
1,174' - 1 , 3 8 9
3,437
520
2,710'
5,169
1,741'
724
2,704
133
20 Total domestic loans
21 MEMO: Term loans (original maturity
more than 1 year) included in domestic loans
65,293
66,950'
6 8 , 6 9 1 ' 69,416
1. Includes commercial and industrial loans at a few banks with assets
of $1 billion or more that do not classify their loans.
NOTE. New series. The 134 large weekly reporting commercial banks
with domestic assets of $1 billion or more as of December 31, 1977 are
included in this series. The revised series is on a last-Wednesday-of-themonth basis.
1.311
72,120
A These amounts represent accumulated adjustments originally made
to offset the cumulative effects of mergers. A "positive" adjustment bank
should be added to, and a "negative" adjustment bank subtracted from,
outstanding data for any date in the year to establish comparability with
any date in the subsequent year.
MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
Source
1
2
3
4
5
6
Total nondeposit funds2
Seasonally adjusted
Not seasonally adjusted
Federal funds, RPs, and other borrowings from
nonbanks3
Seasonally adjusted 3
Not seasonally adjusted
Net Eurodollar borrowings, not seasonally adjusted...
Loans sold to affiliates, not seasonally adjusted*
Outstanding in 1979
December outstanding
1976
1977
1978
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
54.6
53.3
61.8
60.4
85.4'
84.9'
104.9
102.6
111.2
113.4
115.8
115.6
119.5
122.2
130.3
131.9
131.4
131.6
130.4
131.1
125.5
128.2
47.1
45.8
3.7
3.8
58.4
57.0
-1.3
4.8
74.8
73.8
6.8
3.8
82.3
80.1
18.9
3.6
84.3
86.5
23.2
3.7
84.5
84.3
27.5
3.8
86.6
89.3
29.1
3.7
92.9
94.5
33.8
3.7
91.3
91.5
36.4
3.7
91.9
92.6
35.0
3.6
85.7
88.5
36.1
3.6
-6.0
12.8
6.8
-12.5
21.1
8.6
-10.2
24.9
14.7
-1.9
21.6
19.7
2.6
19.7
22.3
5.8
20.0
25.7
6.3
20.1
26.3
8.9
19.2
28.1
11.0
21.4
32.5
9.7
21.9
31.5'
11.3
21.7
33.0
9.7
8.3
18.1
27.9
27.0
11.1
10.3
21.4
36.3
35.1
17.0
14.2
31.2
43.8
42.4
20.8
15.7
36.5
43.0
42.5
20.6
15.9
36.5
42.2
44.8
21.7
17.6
39.3
45.0
44.5
22.8
17.6
40.4
42.8
42.5
24.9
16.2
41.0
40.9
42.5
25.4
18.1
43.5
42.8
44.5
25.3
20.5
45.7
44.6
44.1
24.8
21.9
46.8
39.7
41.7
3.9
4.4
4.4
5.1
8.6
10.2
5.1
5.3
9.3
8.4
9.2
10.8
15.3
13.2
12.4
9.8
11.1
12.4
12.9
11.7
5.7
5.5
136.0
138.4
159.8
162.5
204.4
207.8
202.1
200.4
196.8
196.0
189.6
189.4
190.4
188.9
192.5'
192.7
MEMO
7 Domestic chartered banks net positions with own
foreign branches, not seasonally adjusted 5
8
Gross due from balances
9
Gross due to balances
10 Foreign-related institutions net positions with
directly related institutions, not seasonally
adjusted 6
11
Gross due from balances
12
Gross due to balances
13 Security R P borrowings, seasonally adjusted?
14
Not seasonally adjusted
15 U.S. Treasury demand balances, seasonally
adjusted 8
16
Not seasonally adjusted
17 Time deposits, $100,000 or more, seasonally
adjusted 9
18
Not seasonally adjusted
For notes see bottom of page A23.
197.2 2 0 3 . 8 ' 209.7
1 9 8 . 5 ' 2 0 5 . 2 ' 209.7
Deposits and Commercial Paper
A25
1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1 All holders—Individuals, partnerships, and
2 Financial business
3 Nonfinancial business
6 Other
1977
1974
Dec.
1975
Dec.
1979 2
1978
1976
Dec.
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
225.0
236.9
250.1
274.4
271.2
278.8
294.6
270.4
285.6
292.4
19.0
118.8
73.3
2.3
11.7
20.1
125.1
78.0
2.4
11.3
22.3
130.2
82.6
2.7
12.4
25.0
142.9
91.0
2.5
12.9
25.7
137.7
92.9
2.4
12.4
25.9
142.5
95.0
2.5
13.1
27.8
152.7
97.4
2.7
14.1
24.4
135.9
93.9
2.7
13.5
25.4
145.1
98.6
2.8
13.7
26.7
148.8
99.2
2.8
14.9
Weekly reporting banks
19793
1978
1975
Dec.
7 All holders—Individuals, partnerships, and
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1976
Dec.
1977
Dec.
Sept.
Oct.
Nov.
Dec.
Mar.
June
Sept.
124.4
128.5
139.1
139.7
141.3
142.7
147.0
121.9
128.8
132.7
15.6
69.9
29.9
2.3
6.6
17.5
69.7
31.7
2.6
7.1
18.5
76.3
34.6
2.4
7.4
18.9
74.1
37.1
2.4
7.3
19.1
75.0
37.5
2.5
7.2
19.3
75.7
37.7
2.5
7.5
19.8
79.0
38.2
2.5
7.5
16.9
64.6
31.1
2.6
6.7
18.4
68.1
33.0
2.7
6.6
19.7
69.1
33.7
2.8
7.4
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 . 4 6 6 .
2. Beginning with the March 1979 survey, the demand deposit ownership
survey sample was reduced to 232 banks from 349 banks, and the estimation procedure was modified slightly. To aid in comparing estimates
based on the old and new reporting sample, the following estimates in
billions of dollars for December 1978 have been constructed using the new
smaller sample; financial business, 27.0; nonfinancial business, 146.9;
consumer, 98.3; foreign, 2.8; and other, 15.1.
3. After the end of 1978 the large weekly reporting bank panel was
changed to 170 large commercial banks, each of which had total assets in
domestic offices exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the May 1978 BULLETIN. Beginning in March
1979, demand deposit ownership estimates for these large banks
are constructed quarterly on the basis of 97 sample banks and are not
comparable with earlier data. The following estimates in billions of dollars
for December 1978 have been constructed for the new large-bank panel:
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8;
foreign, 2.5; other, 6.8.
1.33 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1979
Instrument
1976
Dec.
1977
Dec.
1978
Dec.
May
June
July
Aug.
Sept.
Oct. 1
Nov.
Commercial paper (seasonally adjusted)
1 All issuers
2
3
4
5
6
Financial companies 2
Dealer-placed paper 3
Total
Bank-related
Directly placed paper*
Total
Bank-related
Nonfinancial companies 5
52,971
65,101
83,665
96,106 101,516 102,447 103,907 107,621 106,613' 108,965
7,261
1,900
8,884
2,132
12,296
3,521
15,551
4,141
16,537
3,826
17,042
3,951
17,379
4,062
18,207
4,485
16,085
3,052
16,702
2,958
32,511
5,959
13,199
40,484
7,102
15,733
51,630
12,314
19,739
57,886
13,799
22,669
61,256
15,130
23,723
60,532
14,722
24,873
60,402
15,817
26,126
61,369
15,930
28,045
62,761
18,024
27,767
64,236
18,339
28,027
Bankers dollar acceptances (not seasonally adjusted)
7 Total
Holder
8 Accepting banks
10
Bills bought
Federal Reserve Banks
13 Others
Basis
16 All other
22,523
25,450
33,700
35,286
36,989
39,040
42,354
42,147
43,486
43,599
10,442
8,769
1,673
10,434
8,915
1,519
8,579
7,653
927
7,844
6,895
950
8,180
6,956
1,224
8,288
7,243
1,045
7,994
7,138
856
8,119
7,288
831
7,785
7,121
664
8,297
7,514
782
991
375
10,715
954
1
664
362
13,700 r 24,456
0
940
26,501
1,159
1,400
952
971
26,439 r 28,641
475
957
32,928
1,053
1,470
31,505
317
1,498
33,886
269
1,465
33,569
4,992
4,818
12,713
6,378
5,863
13,209
8,574
7,586
17,540
9,007
8,367
17,912
9,202
8,599
19,189
9,847
9,578
22,929
9,724
9,354
23,069
10,129
9,519
23,838
10,354
9,271
23,974
1. A change in reporting instructions resulted in offsetting shifts in the
dealer-placed and directly placed financial company paper in October.
2. Institutions engaged primarily in activities such as, but not limited to,
Digitized forcommercial,
FRASERsavings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
http://fraser.stlouisfed.org/
underwriting; and other investment activities.
Federal Reserve Bank of St. Louis
9,499
8,784
20,756
3. Includes all financial company paper sold by dealers in the open
market.
4. As reported by financial companies that place their paper directly
with investors.
5. Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services.
A26
DomesticNonfinancialStatistics • January 1980
1.34 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Month
11%
1979—June 19
July 27.
Aug. 16
28
Sept. 7
14
21
28
1979—Oct.
113/4
12
9,
23,
Nov. 1
12%
12%
13
13V4
13%
1979—Jan.
Feb.
Mar
Apr.
May
June
14%
15
151/4
15%
153/4
15%
15%
9
16
30
Dec. 7
Month
Average
rate
Rate
Effective date
Rate
Effective date
11.75
11.75
11.75
11.75
11.75
11.65
I979—July
Aug
Sept
Oct.
Nov.
Dec.
1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-10,1979A
Size of loan (in thousands of dollars)
Item
All
sizes
1,000
50-99
25-49
1-24
100-499
and over
500-999
SHORT-TERM COMMERCIAL AND
INDUSTRIAL LOANS
1
2
3
4
Amount of loans (thousands of dollars)
Number of loans
Weighted average maturity (months)
Weighted average interest rate (percent per
annum)
5
Interquartile range 1
Percentage of amount of loans
6 With floating rate
7 Made under commitment
8,046,052
126,938
3.0
689,179
96,306
3.6
365,934
11,074
3.3
428,441
6,926
3.3
1,707,259
10,261
3.5
678,645
1,052
3.9
4,176,594
1,320
2.5
15.81
15.25-16.82
14.77
12.68-16.99
14.92
13.23-16.87
15.93
14.58-17.48
15.41
13.65-16.91
16.02
15.25-16.86
16.19
15.31-16.70
52.6
49.4
17.1
19.7
21.7
26.2
44.6
38.4
36.5
43.6
66.6
61.1
66.3
58.0
LONG-TERM COMMERCIAL AND
INDUSTRIAL LOANS
8
9
10
11
Amount of loans (thousands of dollars)
Number of loans
Weighted average maturity (months)
Weighted average interest rate (percent per
annum)
12
Interquartile range 1
Percentage of amount of loans
13 With floating rate
14 Made under commitment
1,636,882
28,486
48.5
322,465
27,023
35.0
203,211
1,015
39.0
136,801
206
35.6
974,405
242
56.8
15.56
15.25-16.50
14.78
13.00-16.19
15.66
15.00-17.23
15.43
15.25-17.00
15.81
15.25-16.25
71.8
63.3
27.9
33.3
66.4
60.3
74.0
62.0
87.1
74.1
CONSTRUCTION AND
LAND DEVELOPMENT LOANS
1,050,513
34,460
9.7
204,258
25,154
7.9
194,619
5,311
18.5
144,341
2,256
6.3
274,856
1,562
7.4
232,439
177
9.1
15.51
14.49-17.25
14.21
11.85-16.31
15.73
14.58-17.21
15.72
13.72-16.99
15.83
14.58-17.61
15.97
15.69-17.50
Percentage of amount of loans
20 With floating rate
21 Secured by real estate
22 Made under commitment
40.2
77.0
40.5
16.2
70.4
31.4
12.8
66.1
26.5
29.6
61.4
31.3
58.1
91.0
53.0
69.8
85.2
51.1
Type of construction
23 1- to 4-family
24 Multifamily
25 Nonresidential
38.8
7.4
53.8
58.6
1.3
40.1
49.6
20.5
4.8
74.8
44.2
10.8
44.9
17.3
15.1
67.5
15
16
17
18
Amount of loans (thousands of dollars)
Number of loans
Weighted average maturity (months)
Weighted average interest rate (percent per
annum)
19
Interquartile range 1
All
sizes
1.5
48.8
250
1-9
10-24
25-49
50-99
100-249
and over
LOANS TO FARMERS
26
27
28
29
Amount of loans (thousands of dollars)
Number of loans
Weighted average maturity (months)
Weighted average interest rate (percent per
annum)
30
Interquartile range 1
31
32
33
34
35
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1,192,740
65,857
6.9
160,093
42,436
7.3
12.91
13.63
12.42-14.49 11.83-13.80
13.51
12.91
13.65
13.16
14.53
1. Interest rate range that covers the middle 50 percent of the total
dollar amount of loans made.
2. Fewer than 10 sample loans.
12.03
12.16
13.09
13.03
13.38
184,178
12,814
7.1
13.20
11.72-14.32
13.20
12.55
13.28
13.75
12.92
234,279
3,604
7.3
247,826
1,670
5.8
185,086
13.32
13.11
12.00-14.41 12.00-14.00
13.86
13.42-13.80
15.32
13.42-17.55
13.44
11.57
12.96
12.09
14.15
(2)
15.45
(2) ,
181,278
4,926
7.0
12.87
14.19
13.81
13.53
13.30
13.45
14.21
406
7.3
14.62
(2)
15.20
(2)
16.76
NOTE. For more detail, see the Board's E.2(416) statistical release,
A These data are preliminary; final figures will appear in the February
BULLETIN.
Securities
Markets
All
1.36 INTEREST RATES Money and Capital Markets
Averages, percent per a n n u m
1979,, week ending
1979
1977
Instrument
1978
1979
Sept.
Oct.
Nov.
Dec.
Dec. 1
Dec. 8 Dec. 15 Dec. 22 Dec. 29
Money market rates
1 Federal f u n d s 1
Commercial paper 2 ,3
5.54
7.94
11.20
11.43
13.77
13.18
13.78
12.46
13.77
13.79
13.90
13.49
5.42
5.54
5.60
7.76
7.94
7.99
10.86
10.97
10.91
11.52
11.63
11.60
13.06
13.23
13.23
13,34
13.57
13.26
13.35
13.24
12.80
12.28
12.65
12.40
12.85
12.85
12.62
13.44
13.31
12.87
13.66
13.53
13.01
13.49
13.31
12.73
5.38
5.49
5.50
5.59
7.73
7.80
7.78
8.11
10.78
10.47
10.25
11.04
11.45
10.89
10.43
11.70
12.85
12.24
11.50
13.44
13.25
12.52
12.00
13.53
13.27
11.74
11.68
13.31
12.14
11.80
11.43
12.62
12.70
11.68
11.48
12.83
13.29
11.69
11.74
13.58
13.59
11.77
11.77
13.47
13.51
11.83
11.73
13.42
5.48
5.64
5.92
6.05
7.88
8.22
8.61
8.74
11.03
11.22
11.44
11.96
11.70
11.89
12.01
12.61
13.36
13.66
13.83
14.59
13.60
13.90
13.97
15.00
13.36
13.43
13.42
14.51
12.61
12.96
13.09
14.21
12.94
13.09
13.12
14.18
13.62
13.63
13.60
14.09
13.59
13.56
13.48
14.79
13.30
13.43
13.54
14.65
5.27
5.53
5.71
7.19
7.58
7.74
10.07
10.06
9.75
10.26
10.20
9.89
11.70
11.66
11.23
11.79
11.82
11.22
12.04
11.84
10.92
11.26
11.25
10.74
11.75
11.65
10.86
12.34
12.09
11.10
12.06
11.80
10.85
11.99
11.85
10.86
5.265
5.510
7.221
7.572
10.041
10.017
10.182
10.125
11.472
11.339
11.868
11.856
12.071
11.847
11.018
11.022
11.927
11.767
12.054
11.769
12.228
11.999
12.074
11.854
Finance paper, directly placed2.3
8 Prime bankers acceptances, 90-day 3 .4
Certificates of deposit, secondary markets
U.S. Treasury bills3.7
Secondary market
Auction averages
Capital market rates
U . S . TREASURY NOTES AND BONDS
Constant maturities 9
OH
91A_vf»NRLO
97
4-VPARLO
27
11.76
11.27
11.93
11.24
12.28
11.57
11.91
11.39
11.84
11.39
10.64
10.61
10.86
10.68
10.71
10.42
10.42
10.39
10.18
10.12
10.42
10.40
10.34
10.09
10.07
10.34
10.35
10.29
10.07
10.03
10.45
10.48
10.45
10.23
10.18
10.39
10.39
10.37
10.21
10.13
10.51
10.49
10.45
10.24
10.18
10.98
9.80
10.45
9.59
10.42
9.51
10.33
9.49
10.49
9.65
10.45
9.60
10.55
9.64
6.25
7.34
7.08
6.49
7.66
7.30
6.50
7.42
7.22
6.60
7.40
7.26
6.50
7.10
7.17
6.50
7.40
7.26
6.50
7.60
7.22
6.50
7.60
7.23
9.93
10.71
11.37
11.35
11.30
11.23
11.29
11.40
11.49
9.44
9.70
10.03
10.54
10.13
10.46
10.83
11.40
10.76
11.22
11.50
11.99
10.74
11.15
11.46
12.06
10.63
11.14
11.40
12.00
10.58
11.08
11.32
11.93
10.70
11.06
11.41
11.99
10.79
11.20
11.52
12.10
10.87
11.25
11.59
12.22
10.03
10.02
9.83
9.87
10.97
10.91
11.42
11.36
11.25
11.33
11.20
11.17
11.22
11.16
11.28
11.37
11.35
11.39
7.41
5.67
9.16
5.31
7.44
5.56
7.40
5.71
7.42
5.53
7.41
5.53
7.46
5.52
7.43
5.55
7.31
5.66
8.34
8.34
10.67
10.12
10.84
10.06
12.44
11.49
12.39
11.81
6.69
8.29
9.71
6.99
7.23
7.42
7.67
8.32
8.36
8.41
8.48
8.49
9.52
9.48
9.44
9.33
9.29
9.69
9.50
9.41
9.38
9.33
9.21
9.17
10.95
11.55
10.63
10.47
10.30
9.99
9.85
11.18
10.85
10.93
10.80
10.65
10.37
10.30
6.85
7.06
8.30
7.89
9.58
8.74
9.56
8.68
10.75
9.44
5.20
6.12
5.68
5.52
6.27
6.03
5.92
6.73
6.52
5.90
6.75
6.52
8.43
9.07
10.12
8.02
8.24
8.49
8.97
8.73
8.92
9.12
9.45
9.63
9.94
10.20
10.69
8.19
8.19
8.96
8.97
7.60
4.56
8.25
5.28
30-year
Composite11
29
11.98
11.39
10.90
10.71
6.09
6.45
...
Over 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
M o o d y ' s series 1 2
30
Aaa
31
Baa
CORPORATE BONDS
33 Seasoned issues, all industries 1 4
By rating groups
35
36
37
1Q
Aa
A
Baa
Aaa utility b o n d s 1 5
"Wpw ICCIIF*
....
1
MEMO: Dividend/price ratio 6
1. Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
2. Beginning November 1977, unweighted average of offering rates
quoted by at least five dealers (in the case of commercial paper), or
finance companies (in the case of finance paper). Previously, most representative rate quoted by those dealers and finance companies. Before
Nov. 1979, maturities for data shown are 30-59 days, 90-119 days, and
120-179 days for commercial paper; and 30-59 days, 90-119 days, and
150-179 days for finance paper.
3. Yields are quoted on a bank-discount basis.
4. Average of the midpoint of the range of daily dealer closing rates
offered for domestic issues.
5. Five-day average of rates quoted by five dealers (3-month series
was previously a 7-day average).
6. Averages of daily quotations for the week ending Wednesday.
7. Except for auction averages, yields are computed f r o m daily closing
bid prices.
8. Rates are recorded in the week in which bills are issued.
9. Yield on the more actively traded issues adjusted to constant
formaturities
FRASER
by the U.S. Treasury, based on daily closing bid prices.
Digitized
7.39 r
5.53'
10. Each figure is an average of only five business days near the end of
the month. The rate for each m o n t h is used to determine the maximum
interest rate payable in the following m o n t h on small saver certificates.
(See table 1.16.)
11. Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. " L o n g - t e r m " includes
all bonds neither due nor callable in less than 10 years, including several
very low yielding "flower" bonds.
12. General obligations only, based on figures for Thursday, f r o m
Moody's Investors Service.
13. Twenty issues of mixed quality.
14. Averages of daily figures from M o o d y ' s Investors Service.
15. Compilation of the Board of Governors of the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields
are based on quotations on date of offering; those on recently offered
issues (included only for first 4 weeks after termination of underwriter
price restrictions), on Friday close-of-business quotations.
16. Provided by Standard and Poor's Corporation.
A28
DomesticNonfinancialStatistics • January 1980
1.37 STOCK MARKET Selected Statistics
1979
Indicator
1977
1978
1979
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50)
53.67
53.76
55.67
57.61
58.38
61.19
61.89
59.27
59.02
61.75
2 Industrial
3 Transportation
4 Utility
57.84
41.07
40.91
55.23
58.30
43.25
39.23
56.74
61.82
45.20
36.46
58.65
63.57
47.53
38.44
61.87
64.24
48.85
38.88
64.43
67.71
52.48
39.26
68.40
69.17
52.21
38.39
67.21
66.68
48.07
36.58
61.64
66.45
47.61
36.55
60.64
69.82
50.59
37.29
63.21
6 Standard & Poor's Corporation (1941-43 = 10)*. . .
98.18
96.11
98.34
101.73
102.71
107.36
108.60
104.47
103.66
107.78
7 American Stock Exchange (Aug. 31,1973 = 100). . . 116.18
144.56
186.56
196.08
197.63
208.29
223.00
212.33
216.58
238.83
28,591
3,622
32,233
4,182
34,662
5,236
32,416
3,890
35,870
4,503
37,576
5,405
37,301
5,446
31,126
3,938
35,510
5,389
Volume of trading (thousands of shares)
20,936
2,514
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers 2 .
9,993
11,035
11,763
12,019
12,236
12,178
11,483
11,083
11 Margin stock 3
12 Convertible bonds
13 Subscription issues
9,740
250
3
10,830
205
11,590
172
11,840
178
12,060
176
12,000
177
11,310
173
10,920
161
2
Free credit balances at brokers*
14 Margin-account
15 Cash-account
640
2,060
835
2,510
895
2,880
885
3,025
910
2,995
960
3,325
950
3,490
955
3,435
1
1
1
1
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent)5
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
18.0
36.0
23.0
33.0
28.0
18.0
10.0
6.0
5.0
11.0
6.0
5.0
T
i
n.a.
100.0
100.0
100.0
100.0
100.0
100.0
21.0
28.0
26.0
12.0
7.0
6.0
19.0
28.0
28.0
12.0
7.0
6.0
14.0
26.0
31.0
14.0
8.0
7.0
16.0
26.0
30.0
14.0
8.0
6.0
27.0
31.0
20.0
10.0
6.0
6.0
17.0
31.0
25.0
13.0
7.0
7.0
n.a.
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (million dollars) 6
Distribution by equity status (percent)
24 Net credit status
Debt status, equity of
25
60 percent or more
26
Less than 60 percent
9,910
13,092
43.4
41.3
I
1
n.a.
44.9
11.7
45.1
13.6
i
13,634
13,280
14,130
14,460
14,800
42.6
43.5
44.1
45.3
44.5
n.a.
47.3
10.1
47.1
9.4
47.8
8.1
46.4
8.3
45.5
10.0
n.a.
n.a.
1
14,995
T
1
n.a.
1
I
Margin requirements (percent of market value and effective date) ?
27 Margin stocks
28 Convertible bonds,
29 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility (formerly 60), and 40 financial.
2. Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended is end-of-month data for member firms of the New York
Stock Exchange.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments,
to the brokers and are subject to withdrawal by customers on demand.
5. Each customer's equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
6. Balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based
on loan values of other collateral in the customer's margin account or
deposits of cash (usually sales proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act or 1934,
limit the amount of credit to purchase and carry margin stocks that may
be extended on securities as collateral by prescribing a maximum loan
value, which is a specified percentage of the market value of the collateral
at the time the credit is extended. Margin requirements are the difference
between the market value (100 percent) and the maximum loan value. The
term "margin stocks" is defined in the corresponding regulation.
Thrift Institutions
A29
1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1979
Account
1977
1978
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.®
Savings and loan associations
1 Assets
459,241 523,542 534,044 539,582 543,320 549,031 555,409 561,037 566,493 570,479 576,251 578,752
2 Mortgages
3 Cash and investment
381,163 432,808 437,849 441,358 445,638 450,978 456,544 460,620 464,609 468,307 472, 198 474,534
4 Other
39,150
38,928
44,884
45,850
49,042
47,153
50,153
48,071
48,698
48,984
48,280
49,773
48,253
50,612
49,496
50,721
50,007
51,877
49,301
52,871
49,220
54,833
48,212
56,006
5 Liabilities and net worth
459,241 523,542 534,044 539,582 543,320 549,031 555,409 561,037 566,493 570,479 576,251 578,752
7 Borrowed money
8
FHLBB
9
Other
386,800 430,953 438,564 446,898 445,751 447,788 454,642 456,657 457,856 462,626 464,489 465,550
27,840 42,907 41,315 41,538 43,710 44,324 46,993 48,437 50,437 52,738 54,268 54,397
19,945 31,990 31,004 31,123 32,389 33,003 34,266 35,286 36,009 37,620 39,223 39,684
11,321 12,727 13,151 14,428 15,118
7,895 10,917 10,311
10,415 11,321
15,045 14,713
9,911
10,721
10,271
10,331 10,690 11,118 11,260 11,309
11,047 10,909
10,766 10,186
9,904
9,506
14,230 10,905 12,950 15,259
11,681
13,503 15,712 12,497
14,673 16,247
11 Other
12 Net worth 2
25,184
29,057
29,664
29,910
30,219
30,542
30,833
31,131
31,441
31,709
32,055
32,372
13 MEMO : Mortgage loan commitments outstanding 3 . . . .
19,875
18,911
19,037
21,082
22,915
23,560
22,770
22,360
22,282
22,397
20,930
17,831
Mutual savings banks 4
14 Assets
Loans
16
17
18
19
20
21
Other
Securities
U.S. governments
State and local government. . .
Corporate and other <>
Cash
Other assets
147,287 158,174 160,078 161,866 161,231 161,380 161,814 162,598 163,388 163,431 163,133
88,195
6,210
95,157
7,195
95,821
8,455
96,136
9,421
95,900
9,290
96,239
9,444
96,743
9,577
97,238
10,282
97,637
10,430
97,973
9,982
98, 304
9, 510
5,895
2,828
37,918
2,401
3,839
4,959
3,333
39,732
3,665
4,131
4,801
3,167
40,307
3,306
4,222
4,814
3,126
40,658
3,410
4,300
8,193
3,326
37,211
3,072
4,239
8,148
3,264
37,304
2,785
4,198
8,029
3,175
37,281
2,764
4,245
7,992
3,154
37,171
2,540
4,220
7,921
3,149
37,125
2,866
4,260
7,891
3,150
37,076
3,020
4,339
7,750
3,100
37,210
2,909
4,351
22 Liabilities
147,287 158,174 160,078 161,866 161,231 161,380 161,814 162,598 163,388 163,431 163,133
23
24
25
26
27
28
29
30
134,017 142,701 143,539 145,650 145,096 145,056 146,057 145,757 145,713 146,252 145,096
132,744 141,170 142,071 144,042 143,210 143,271 144,161 143,843 143,731 144,258 143,263
78,005 71,816 68,817 68,829 67,758 67,577 68,104 67,537 66,733 65,676 62,672
54,739 69,354 73,254 75,213 75,452 75,694 76,057 76,306 76,998 78,572 80,591
1,784
1,914
1,982
1,886
1,896
1,272
1,608
2,003
1,531
1,468
1,834
5,050
5,172
5,048
4,545
6,350
3,292
5,578
5,790
4,565
5,485
6,600
11,388
9,978
10,907 11,054 11,167 11,085 11,153 11,212 11,264 11,324
11,437
Deposits
Regular 7
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments outstanding 8 .. . •
4,066
4,400
4,453
4,482
4,449
4,352
4,469
4,214
4,071
4,123
3,
n. a.
749
Life insurance companies
351,722 389,924 396,190 399,579 402,963 405,627 409,853 414,120 418,350 421,660
32
33
34
35
37
38
Securities
Government
United States 9
State and local
Foreign 1 0
Bonds
Stocks
40 Real estate
41 Policy loans
42 Other assets
19,553 20,009 20,222 20,463 20,510 20,381 20,397 20,468 20,472 20,379
5,234
5,272
4,822
5,114
5,149
5,178
5,229
5,228
5,315
5,067
6,259
6,272
6,241
6,402
6,268
6,051
6,255
6,243
6,258
6,295
8,970
8,970
8,960
8,978
8,997
8,785
8,853
8,985
9,017
8,187
175,654 198,105 202,843 204,895 206,160 207,775 209,804 212,876 215,252 216,500
141,891 162,587 167,548 168,622 169,817 171,762 173,130 175,854 176,920 177,698
33,763 35,518 35,295 36,273 36,343 36,013 36,674 37,022 38,332 38,802
96,848 106,167 107,385 108,417 109,198 110,023 111,123 112,120 113,102 114,368
12,351 12,738 12,740
11,060 11,764 11,943 11,484 12,086 12,101 12,199
27,556 30,146 30,778 31,160 31,512 31,832 32,131 32,390 32,713 33,046
21,051 23,733 23,019 23,160 23,497 23,515 24,199 23,915 24,073 24,637
n. a.
n.a.
Credit unions
43 Total assets/liabilities and
44
45
46
47
48
49
50
51
Federal
State
Loans outstanding
Federal
State
Savings
Federal (shares)
State (shares and deposits). . .
53,755
29,564
24,191
41,845
22,634
19,211
46,516
25,576
20,940
For notes see bottom of page A30.
62,348
34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715
62,105
34,529
27,576
50,120
27,502
22,618
52,931
29,195
23,736
63,671
35,406
28,265
50,828
27,961
22,867
54,713
30,212
24,501
63,030
34,758
28,272
50,846
27,869
27,977
54,199
29,796
24,403
64,158
35,379
28,779
51,351
28,103
23,248
55,107
30,222
24,885
65,435
36,146
29,289
52,028
28,487
23,541
56,437
31,048
25,389
68,840
65,547
66,280
65,063
65,419
35,413
29,427
52,083
28,379
23,704
56,393
30,732
25,661
35,724
29,823
52,970
28,848
24,122
56,583
30,761
25,822
36,151
30,129
53,545
29,129
24,416
57,255
31,097
26,158
35,537
29,526
53,533
29,020
24,513
55,739
30,366
25,373
35,670
29,749
56,267
30,613
25,654
55,797
30,399
25,398
A30
DomesticNonfinancialStatistics • January 1980
1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget
1 Receipts 1
2 Outlays 1
3 Surplus, or deficit (—)
4
Trust funds
5
Federal funds 2
Off-budget entities surplus, or
deficit ( - )
6 Federal Financing Bank outlays
7 Other 3
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit (—)
Source or financing
9
Borrowing from the public
10
Cash and monetary assets (decrease, or increase (—)) 4
11
Others
Fiscal
year
1977
357,762
402,725
-44,963
9,497
-54,460
Fiscal
year
1978
Fiscal
year
1979
401,997
465,940
450,938 r 493,221
-48,940' -27,281
12,693
18,335
— 61,633 r - 4 5 , 6 1 6
1979
1978
HI
H2
210,650
222,561
-11,912
4,334
-16,246
206,275
238,186
-31,912
11,754
-43,666
246,574
245,616
958
4,041
-4,999
HI
1979
Sept.
Oct.
Nov.
47,295
29,625
17,670
16,039
1,631
33,099
47,807
-14,708
-6,555
-8,153
38,320
46,841
-8,522
8,108
-16,630
-8,415
-264
-10,661
355
-13,261
832
-5,105
-790
-5,082
1,843
-7,712
-447
-1,383
-730
-1,536
1,598
-538
118
-53,642
-59,246'
-39,710
-17,806
-35,151
-7,201
15,557
-14,646
-8,942
53,516
-59,106'"
33,641
23,378
30,314
6,039
4,249
2,217
5,548
-2,247
2,373
-3,023'
3,163'
-408
6,477
-5,098
-474
3,381
1,456
-8,878
10,040
-16,562
-3,244
14,220
-1,791
4,533
-1,139
19,104
15,740
3,364
22,444
16,647
5,797
24,176
6,489
17,687
17,526
11,614
5,912
16,291
4,196
12,095
17,485
3,290
14,195
24,176
6,489
17,687
10,460
2,209
8,251
5,591
2,590
3,001
MEMO:
12 Treasury operating balance (level,
end of period)
13
Federal Reserve Banks
14
Tax and loan accounts
1. Effective June 1978, earned income credit payments in excess of
an individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2. Half-year figures calculated as a residual (total surplus/deficit less
trust fund surplus/deficit).
3. Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund; and Rural Telephone
Bank.
4. Includes U.S. Treasury operating cash accounts; special drawing
rights; gold tranche drawing rights; loans to International Monetary
Fund; and other cash and monetary assets.
5. Includes accrued interest payable to the public; deposit funds; miscellaneous liability (including checks outstanding) and asset accounts;
seignorage; increment on gold; net gain/loss for U.S. currency valuation
adjustment; net gain/loss for I M F valuation adjustment; and profit on
the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government," Treasury Bulletin, and the Budget of the United
States Government, Fiscal Year 1980.
NOTES TO TABLE 1.38
1. Holdings of stock of the Federal Home Loan Banks are included in
"other assets."
2. Includes net undistributed income, which is accrued by most, but not
all, associations.
3. Excludes figures for loans in process, which are shown as a liability.
4. The NAMSB reports that, effective April 1979, balance sheet data
are not strictly comparable with previous months. Beginning April 1979,
data are reported on a net-of-valuation-reserves basis. Prior to that date,
data were reported on a gross-of-valuation-reserves basis.
5. Beginning April 1979, includes obligations of U.S. government
agencies. Prior to that date, this item was included in "Corporate and
other."
6. Includes securities of foreign governments and international organizations and, prior to April 1979, nonguaranteed issues of U.S. government
agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Association of the
State of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues
not guaranteed, which are shown in the table under "business" securities.
10. Issues of foreign governments and their subdivisions and bonds Oi
the International Bank for Reconstruction and Development.
NOTE. Savings and loan associations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of federally insured associations and annual reports of other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States.
Life insurance companies: Estimates of the American Council of Life
Insurance for all life insurance companies in the United States. Annual
figures are annual-statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total, in
"other assets."
Credit unions: Estimates by the National Credit Union Administration
for a group of federal and state-chartered credit unions that account for
about 30 percent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.
Federal Finance
A3 3
1.40 U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calend ar year
Source or type
Fiscal
year
1977
Fiscal
year
1978 r
Fiscal
year
1979
1979
1978
HI
H2
HI
1979
Sept.
Oct.
Nov.
RECEIPTS
1 All sources1
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign
Fund
5
Nonwithheld
6
Refunds 1
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions, net
10 Payroll employment
taxes and
contributions 2
11
Self-employment taxes
and
contributions 3
12
Unemployment insurance
13
Other net receipts 4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
357,762
401,997
465,940
210,650
206,275
246,574
47,295
33,099
38,320
157,626
144,820
180,988
165,215
217,841
195,295
90,336
82,784
98,854
90,148
111,603
98,683
23,341
16,194
18,682
17,777
18,972
18,725
37
42,062
29,293
39
47,804
32,070
36
56,215
33,705
36
37,584
30,068
3
10,777
2,075
32
44,116
31,228
0
7,349
201
0
1,183
278
0
589
342
60,057
5,164
65,380
5,428
71,448
5,771
38,496
2,782
28,536
2,757
42,427
2,889
10,096
463
2,543
1,068
1,684
523
108,683
123,410
141,591
66,191
61,064
75,609
10,809
9,384
14,433
88,196
99,626
115,041
51,668
51,052
59,298
9,893
8,013
12,259
4,014
11,312
5,162
4,267
13,850
5,668
5,034
15,387
6,130
3,892
7,800
2,831
369
6,727
2,917
4,616
8,623
3,072
417
154
344
0
840
530
0
1,650
524
17,548
5,150
7,327
6,536
18,376
6,573
5,285
7,413
18,745
7,439
5,411
9,237
8,835
3,320
2,587
3,667
9,879
3,748
2,691
4,260
8,984
3,682
2,657
4,501
1,660
559
434
859
1,547
646
526
838
1,653
605
518
977
402,725
450,938
493,221
222,561
238,186
245,616
29,625
47,807
46,841
97,501
4,813
105,192
6,083
116,491
5,419
52,535
3,347
55,124
2,060
57,643
3,538
9,200
748
10,448
1,263
10,734
1,190
4,677
4,172
10,000
5,532
4,721
5,901
11,167
7,618
5,620
7,855
12,346
6,410
2,395
2,721
4,690
2,435
2,383
4,279
6,020
4,967
2,461
4,417
5,672
3,020
965
459
1,234
-28
451
52
1,433
402
515
643
538
769
-44
14,636
3,319
15,462
2,592
17,013
-443
7,215
3,292
8,740
60
7,688
-46
1,589
2,078
1,923
222
1,670
OUTLAYS
18 All types i
19 National defense
20 International affairs
21 General science, space, and
22 Energy
23 Natural resources and environment
24 Agriculture
25 Commerce and housing credit
26 Transportation
27 Community and regional
development
28 Education, training, employment,
and social services
29 Health
31
32
33
34
35
36
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Interest 6
Undistributed offsetting receipts6.7
6,286
11,263
9,735
5,500
5,844
4,499
1,003
630
973
20,985
38,785
137,915
25,890
43,676
146,503
28,524
49,614
160,496
13,218
21,147
75,370
14,247
23,830
73,127
14,467
24,860
81,173
2,341
4,109
4,546
2,330
4,662
14,477
2,330
4,449
15,370
18,038
3,600
3,374
9,499
38,009
-15,053
18,987
3,786
3,723
9,377
44,040
-15,772
19,916
4,138
4,671
8,234
52,634
-18,489
9,625
1,945
1,845
4,678
22,280
-7,945
9,532
1,989
2,304
4,610
24,036
-8,199
10,127
2,096
2,291
3,890
26,934
-8,999
599
281
333
131
3,818
-1,655
1,809
460
209
1,822
4,082
-722
2,701
350
342
378
4,719
-1,052
1. Effective June 1978, earned income credit payments in excess of an
individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2. Old-age, disability, and hospital insurance, and railroad retirement
accounts.
3. Old-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal employee retirement contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Effective September 1976, "Interest" and "Undistributed Offsetting
Receipts" reflect the accounting conversion for the interest on special
issues for U.S. government accounts from an accrual basis to a cash basis.
7. Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. government contributions for
employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the
U.S. Government" and the Budget of the U.S. Government, Fiscal Year
1980.
A32
DomesticNonfinancialStatistics • January 1980
1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977
1978
1979
Item
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding
685.2
709.1
729.2
2 Public debt securities
3
Held by public
4
Held by agencies
674.4
523.2
151.2
698.8
543.4
155.5
718.9
564.1
154.8
10.8
9.0
1.8
10.3
8.5
1.8
10.2
8.4
1.8
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
758.8
780.4
797.7
804.6
812.2
833.8
749.0
587.9
161.1
771.5
603.6
168.0
789.2
619.2
170.0
796.8
630.5
166.3
804.9
626.4
178.5
826.5
638.8
187.7
9.8
8.0
1.8
8.9
7.4
1.5
8.5
7.0
1.5
7.8
6.3
1.5
7.3
5.9
1.5
7.2
5.8
1.5
June 30
675.6
700.0
720.1
750.2
772.7
790.3
797.9
806.0
827.6
9 Public debt securities
10 Other debt 1
673.8
1.7
698.2
1.7
718.3
1.7
748.4
1.8
770.9
1.8
788.6
1.7
796.2
1.7
804.3
1.7
825.9
1.7
11 MEMO: Statutory debt limit
700.0
700.0
752.0
752.0
798.0
798.0
798.0
830.0
830.0
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
NOTE. D a t a from Treasury Bulletin (U.S. Treasury Department),
1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership
Billions of dollars, end of period
1979
Type and holder
1975
1976
1977
1978
Aug.
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
Convertible bonds 2
State and local government series
Foreign issues 3
Government
Public
Savings bonds and notes
Government account series 4
15 Non-interest-bearing debt
16
17
18
19
20
21
22
23
By holder 5
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other corporations
State and local governments
Individuals
24
Savings bonds
25
Other securities
26 Foreign and international6
27 Other miscellaneous investors 7
Oct.
Nov.
Dec.
576.6
653.5
718.9
789.2
813.1
826.5
826.8
833.8
845.1
575.7
363.2
157.5
167.1
38.6
212.5
2.3
1.2
21.6
21.6
0
67.9
119.4
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
22.3
0
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
22.2
0
77.0
139.8
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5
812.1
509.2
160.5
277.6
71.1
302.9
2.2
24.6
27.7
23.5
4.2
80.9
167.3
819.0
506.7
161.4
274.2
71.1
312.3
2.2
24.6
28.1
24.0
4.2
80.0
176.4
825.7
515.0
161.7
280.8
72.5
310.7
2.2
24.4
28.0
23.9
4.2
80.5
175.3
832.7
519.6
165.1
279.7
74.8
313.2
2.2
24.5
29.2
23.9
5.3
i$0.0
177.0
844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5
1.0
1.1
3.7
6.8
1.0
7.5
1.1
1.1
1.2
139.1
89.8
349.4
85.1
4.5
9.5
20.2
34.2
147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6
154.8
102.5
461.3
101.4
5.9
15.1
22.7
55.2
170.0
109.6
508.6
93.4
5.2
15.0
20.6
68.6
178.6
113.0
521.5
92.7
4.6
14.6
20.7
70.1
187.7'
114.8
524.0
92.3
4.7
14.6
23.7
68.9
185.7
114.6
526.5
93.5
4.5
14.8
24.1
69.7
67.3
24.0
66.5
38.0
72.0
28.8
78.1
38.9
76.7
28.6
109.6
46.1
80.7
30.0
137.8
57.4
80.7
32.3
123.7
82.2
80.6
32.6
125.2
81.3
80.5
32.9
124.4
82.0
1. Includes (not shown separately): Securities issued to the Rural
Electrification Administration, depositary bonds, retirement plan bonds,
and individual retirement bonds.
2. These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner's option for 1 Vi
percent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
3. Nonmarketable dollar-denominated and foreign currency denominated series held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. D a t a for Federal Reserve Banks and U.S. government agencies and
trust funds are actual holdings; data for other groups are Treasury
estimates.
Sept.
n. a.
n.a.
6. Consists of the investments of foreign balances and international
accounts in the United States. Beginning with July 1974, the figures exclude
non-interest-bearing notes issued to the International Monetary F u n d .
7. Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain government
deposit accounts, and government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security f r o m Monthly Statement of the Public Debt of
the United States (U.S. Treasury Department); data by holder f r o m
Treasury Bulletin.
Federal Finance
A3 3
1.43 U.S GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity
Par value; millions of dollars, end of period
1979
Type of holder
1977
1979
1978
1977
Sept.
1978
Oct.
Sept.
All maturities
Oct.
1 to 5 years
1 All holders
459,927
487,546
506,693
515,124
151,264
162,886
157,315
164,448
2 U.S. government agencies and trust funds
14,420
101,191
12,695
109,616
11,379
104,645
11,379
114,580
4,788
27,012
3,310
31,283
3,099
26,642
3,099
27,139
344,315
75,363
4,379
12,378
9,474
4,817
15,495
222,409
365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288
390,669
66,653
3,287
11,777
8,952
3,517
17,491
278,991
389,165
67,575
3,100
12,005
9,146
3,512
18,145
275,682
119,464
38,691
2,112
4,729
3,183
2,368
3,875
64,505
128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433
127,574
36,874
1,719
5,013
3,178
1,994
4,051
74,745
134,210
37,663
1,626
5,138
3,337
1,980
3,946
80,519
7
8
9
10
Insurance companies
Nonfinancial corporations
Savings and loan associations
State and local governments
Total, within 1 year
12 All holders
13 U.S. government agencies and trust funds
17
Mutual savings banks
19
20
21
Nonfinancial corporations
Savings and loan associations
State and local governments
5 to 10 years
230,691
228,516
246,693
246,462
45,328
50,400
45,507
45,500
1,906
56,702
1,488
52,801
1,417
53,254
1,416
62,754
2,129
10,404
1,989
14,809
872
12,356
872
12,303
172,084
29,477
1,400
2,398
5,770
2,236
7,917
122,885
174,227
20,608
817
1,838
4,048
1,414
8,194
137,309
192,023
20,478
849
1,923
5,052
1,381
5,600
156,741
182,292
20,410
790
1,918
5,105
1,390
6,169
146,510
32,795
6,162
584
3,204
307
143
1,283
21,112
33,601
7,490
496
2,899
369
89
1,588
20,671
32,279
6,870
470
2,587
355
68
1,712
20,218
32,325
6,982
465
2,608
267
68
1,694
20,241
Bills, within 1 year
23 All holders
24 U.S. government agencies and trust funds
28
Mutual savings banks
30
31
32
33
Nonfinancial corporations
Savings and loan associations
State and local governments
All others
161,378
10 to 20 years
161,692
12,906
19,800
26,241
27,778
44,072
3,102
1,510
3,876
2,088
4,520
3,232
4,520
3,229
117,619
5,138
167
455
2,562
202
3,241
105,854
8,295
456
137
1,245
133
54
890
5,380
13,836
956
143
1,460
86
60
1,420
9,711
18,489
1,006
134
1,331
221
58
1,993
13,747
20,029
1,072
124
1,389
276
58
2,033
15,077
161,081
161,747
32
42,004
2
42,397
*
*
44,449
119,035
11,996
484
1,187
4,329
806
6,092
94,152
119,348
5,707
150
753
1,792
262
5,524
105,161
127,068
5,137
157
489
2,302
192
2,715
116,076
Other, within 1 year
Over 20 years
34 All holders
69,610
66,769
85,315
84,770
19,738
25,944
30,937
30,937
35 U.S. government agencies and trust funds
1,874
14,698
1,487
10,404
1,416
8,805
1,416
18,682
2,495
5,564
2,031
8,635
1,472
9,161
1,472
9,156
53,039
15,482
916
1,211
1,441
1,430
1,825
28,733
54,879
14,901
667
1,084
2,256
1,152
2,670
32,149
64,955
15,340
692
1,433
2,750
1,190
2,885
40,665
64,672
15,272
623
1,463
2,543
1,188
2,928
40,655
11,679
578
146
802
81
16
1,530
8,526
15,278
1,446
126
774
135
17
3,616
9,164
20,304
1,427
115
925
147
15
4,135
13,540
20,309
1,449
94
952
161
15
4,303
13,335
39
Mutual savings banks
41
42
Nonfinancial corporations
Savings and loan associations
NOTE. Direct public issues only. Based on Treasury Survey of Ownership from Treasury Bulletin (U.S. Treasury Department).
Data complete for U.S. government agencies and trust funds and
Federal Reserve Banks, but data for other groups include only holdings
of those institutions that report. The following figures show, for each
category, the number and proportion reporting as of Oct. 31, 1979:
(1) 5,398 commercial banks 460 mutual savings banks, and 724 insurance
companies, each about 80 percent; (2) 420 nonfinancial corporations and
483 savings and loan associations, each about 50 percent; and (3) 491
state and local governments, about 40 percent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A34
DomesticNonfinancialStatistics • January 1980
1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages of daily figures, in millions of dollars
1979
Item
1 U.S. government securities
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
1976
1977
1979, week ending Wednesday
1978
Sept.
Oct.
Nov.
Sept. 12 Sept. 19 Sept. 26
Oct. 3
Oct. 10
Oct. 17
10,449
10,838
10,285
13,489
13,846
16,677
13,523
14,049
12,627
12,407
14,485
14,585
6,676
210
2,317
1,019
229
6,746
237
2,320
1,148
388
6,173
392
1,889
965
866
8,056
606
2,425
1,033
1,368
7,856
430
3,076
955
1,529
9,787
607
3,119
1,592
1,572
7,708
372
2,747
1,059
1,636
8,639
472
2,575
968
1,395
7,661
744
1,974
1,080
1,168
7,992
682
1,522
1,031
1,180
8,144
357
3,764
961
1,259
8,223
414
2,498
1,034
2,416
By type of customer
7 U.S. government securities
dealers
8 U.S. government securities
brokers
9 Commercial banks
10 All others i
1,360
1,267
1,135
1,720
1,613
1,973
1,630
2,036
1,806
2,188
1,222
1,901
3,407
2,426
3,257
3,709
2,295
3,568
3,838
1,804
3,508
5,580
1,836
4,342
6,123
1,823
4,288
6,439
2,259
6,005
6,053
1,842
3,998
5,843
1,851
4,319
4,867
1,783
4,172
4,206
1,673
4,341
6,607
2,103
4,553
6,401
1,839
4,444
11 Federal agency securities
1,548
1,729
1,894
3,230
3,151
3,324
2,807
3,030
3,837
3,023
3,113
3,230
1. Includes, among others all other dealers and brokers in commodities
and securities, foreign banking agencies, and the Federal Reserve System.
NOTE. Averages for transactions are based on number of trading days
in the period.
Transactions are market purchases and sales of U.S. government
securities dealers reporting to the Federal Reserve Bank of New York.
The figures exclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase, reverse repurchase (resale), or similar
contracts.
1.45 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
1979
Item
1976
1977
1979, week ending Wednesday
1978
Sept.
Oct.
Nov.
Aug. 22 Aug. 29
Sept. 5
Sept. 12 Sept. 19 Sept. 26
Positions 1
1 U.S. government securities
7,592
5,172
2,656
866
700
-120
345
2 Bills
3 Other within 1 year
4 1-5 years
6,290
188
515
402
198
4,772
99
60
92
149
2,452
260
-92
40
-4
2,476
-380
-1,085
146
-291
2,291
-800
-535
17
-272
822
4,446
-35
-896
-197 -1,005
294
347
-196
231
815
-75
-311
228
-313
2,444
2,414
2,197
2,603
-346
-422
-219
-259
-454 -1,059 -1,146 -1,068
174
172
134
132
-184
-313
-332
-359
729
693
606
2,164
1,809
1,534
1,944
1,937
1,941
1,966
2,549
6 Over 10 years
7 Federal agency securities
3,931
2,147
1,383
814
999
915
Financing 2
8 All sources
9
10
11
12
Commercial banks
New York City
Outside New York City
Corporations 3
All others
8,715
9,877
10,204
18,057
16,021
19,122
15,969
16,558
16,621
18,451
18,047
18,697
1,896
1,660
1,479
3,681
1,313
1,987
2,423
4,155
599
2,174
2,370
5,052
1,292
3,517
3,918
9,329
1,152
3,247
3,131
8,491
1,778
3,386
4,102
9,857
1,113
2,283
4,153
8,420
8
2,454
4,137
9,960
777
2,979
4,197
8,668
1,352
3,764
4,112
9,223
1,501
3,682
4,074
8,789
1,373
3,438
3,765
10,122
1. New amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer department of commercial banks on a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase. The maturities of some repurchase agreements are sufficiently long, however, to suggest that the
securities involved are not available for trading purposes. Securities
owned, and hence dealer positions, do not include securities purchased
under agreement to resell.
2. Total amounts outstanding of funds borrowed by nonbank dealer
firms and dealer departments of commercial banks against U.S. government and federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
3. All business corporations except commercial banks and insurance
companies.
NOTE. Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.
Federal Finance
A3 3
1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1979
Agency
1 Federal and federally sponsored agencies 1
2 Federal agencies
3
Defense Department 2
4
Export-Import Bank 3.4
5
Federal Housing Administrations
6
Government Yational Mortgage Association
participation certificates 6
7
Postal Service 7
8
Tennessee Valley Authority
9
United States Railway Association?
10 Federally sponsored agencies 1
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation.. . .
13
Federal National Mortgage Association
14
Federal Land Banks
15
Federal Intermediate Credit Banks
16
Banks for Cooperatives
17
Farm Credit Banks 1
18
Student Loan Marketing Associations
19
Other
1976
21
22
23
24
25
Lending to federal and federally sponsored
agencies
Export-Import Bank 4
Postal Service 7
Student Loan Marketing Associations
Tennessee Valley Authority
United States Railway Association
Other lending10
26 Farmers Home Administration
27 Rural Electrification Administration
28 Other
Apr.
May
June
July
Aug.
Sept.
112,472
137,063
145,556
146,429
149,612
152,653
153,788
154,753
22,419
1,113
8,574
575
22,760
983
8,671
581
23,488
968
8,711
588
23,568
822
8,322
576
23,366
807
8,107
568
24,170
796
8,806
562
24,274
787
8,783
559
24,415
777
8,781
552
24,341
767
8,886
551
4,120
2,998
4,935
104
3,743
2,431
6,015
336
3,141
2,364
7,460
356
3,099
2,364
7,985
400
3,099
2,202
8,155
428
3,039
2,202
8,335
430
3,004
2,202
8,495
444
3,004
2,202
8,655
444
3,004
1,837
8,850
446
81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2
89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2
113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2
121,988
28,121
2,330
44,792
18,389
6,994
2,473
17,838
1,050
1
123,063
28,577
2,323
44,639
18,389
5,958
1,483
20,597
1,095
2
125,442
28,758
2,522
45,775
18,389
5,122
785
22,949
1,140
2
128,379
29,600
2,522
46,341
17,075
4,269
785
26,606
1,180
1
129,373
29,994
2,720
46,108
17,075
3,427
785
28,033
1,230
130,412
30,303
2,622
46,378
17,075
2,676
785
29,297
1,275
1
28,711
38,580
51,298
56,610
58,186
60,816
61,798
62,880
64,211
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,898
2,114
915
5,635
356
7,131
2,114
1,050
6,260
400
7,131
1,952
1,095
6,430
428
7,846
1,952
1,140
6,610
430
7,846
1,952
1,180
6,770
444
7,846
1,952
1,230
6,930
444
7,953
1,587
1,275
7,125
446
10,750
1,415
4,966
16,095
2,647
6,782
23,825
4,604
6,951
26,890
5,122
7,643
28,050
5,253
7,847
29,200
5,497
8,141
29,765
5,639
8,202
30,445
5,754
8,279
31,080
5,926
8,819
1. In September 1977 the Farm Credit Banks issued their first consolidated bonds, and in January 1979 they began issuing these bonds on a
regular basis to replace the financing activities of the Federal Land Banks,
the Federal Intermediate Credit Banks, and the Banks for Cooperatives.
Line 17 represents those consolidated bonds outstanding, as well as any
discount notes that have been issued. Lines 1 and 10 reflect the addition
of this item.
2. Consists of mortgages assumed by the Defense Department between
1957 and 1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget
thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration insurance claims. Once issued, these securities may be sold
privately on the securities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
1978
103,848
MEMO:
20 Federal Financing Bank debt7.9
1977
Department of Housing and Urban Development; Small Business Administration; and the Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
9. The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double counting.
10. Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.
A36
DomesticNonfinancialStatistics • January 1980
1.47 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1979
Type of issue or issuer,
or use
1976
1977
1978
May
1 All issues, new and refunding 1
2
3
4
5
Type of issue
General obligation
Revenue
Housing Assistance Administration 2
U.S. government loans
r
June
r
July
Aug.r
Sept.r
Oct.
35,313
46,769
48,607
3,045
4,694
3,336
4,213
2,607
4,194
18,040
17,140
18,042
28,655
17,854
30,658
1,141
1,902
1,536
3,139
787
2,546
741
3,462
699
1,901
1,041
3,141
133
72
95
2
19
3
10
7
12
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
7,054
15,304
12,845
6,354
21,717
18,623
6,632
24,156
17,718
207
1,465
1,371
641
2,039
1,994
234
1,604
1,495
200
2,529
1,474
113
1,568
919
294
2,750
1,138
9 Issues for new capital, total
32,108
36,189
37,629
3,035
4,349
2,839
4,149
2,560
4,136
4,900
2,586
9,594
6,566
483
7,979
5,076
2,951
8,119
8,274
4,676
7,093
5,003
3,460
9,026
10,494
3,526
6,120
668
125
591
585
407
659
526
278
982
1,449
321
793
383
149
608
1,163
268
268
555
151
813
1,722
407
501
217
35
332
1,043
354
579
308
562
1,431
1,146
425
264
July
Aug.
Use of proceeds
11
12
13
14
15
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
SOURCE. Public Securities Association.
1. Par amounts of long-term issues based on date of sale.
2. Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
1.48 NEW SECURITY ISSUES of Corporations
Millions of dollars
1979
Type of issue or issuer,
or use
1976
1977
1978
Mar.
Apr.
May
June
1 All issues 1
53,488
53,792
47,230
4,401
4,692
4,167
6,247
4,008
3,840
2 Bonds
42,380
42,015
36,872
3,729
4,113
3,575
5,356
3,027
2,671
Type of offering
3 Public
4 Private placement
26,453
15,927
24,072
17,943
19,815
17,057
1,904
2,984
1,129
1,999
1,825
1,576
4,171
1,185
2,247
780
1,973
698
13,264
4,372
4,387
8,297
2,787
9,274
12,204
6,234
1,996
8,262
3,063
10,258
9,572
5,246
2,007
7,092
3,373
9,586
739
362
245
721
517
1,145
536
73
307
1,153
261
1,782
1,208
267
205
638
102
1,154
1,146
573
423
1,125
379
1,710
925
229
375
174
26
1,298
736
397
137
102
313
987
11,108
11,777
10,358
672
579
592
891
981
1,169
2,803
8,305
3,916
7,861
2,832
7,526
231
441
155
424
174
418
278
613
392
589
346
823
2,237
1,183
24
6,121
776
771
1,189
1,834
456
5,865
1,379
1,049
1,241
1,816
263
5,140
264
1,631
24
114
55
335
65
79
36
210
85
203
49
227
7
21
47
363
3
248
30
200
38
173
360
266
142
311
5
6
7
8
9
10
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
Type
12 Preferred
13 C o m m o n
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more
than one year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
257
"
'78'
598
68
103
91
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
SOURCE. Securities and Exchange Commission.
Corporate Finance
A37
1.49 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position
Millions of dollars
1979
Item
1977
1978
June
May
July
Aug.
Sept.
Oct.
Nov.
INVESTMENT COMPANIES 1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
5
6
Cash position 5
Other
6,401
6,027
357
6,645
7,231
-586
549
715
-166
676
667
9
744
706
38
675
832
-157
580
784
-204
617
805
-188
619
579
111
45,049
3,274
41,775
44,980
4,507
40,473
46,431
4,869
41,562
48,064
5,012
43,052
48,771
5,052
43,719
50,802
4,924
45,878
50,147
5,016
45,131
46,271
4,521
41,750
48,613
4,984
43,629
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
3. Excludes share redemption resulting from conversions from one fund
to another in the same group.
4. Market value at end of period, less current liabilities.
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.
1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Account
1976
1977
1978
1979
1978
Ql
Q2
Q3
Q4
Ql
Q2
Q3
1 Profits before tax
156.0
177.1
206.0
177.5
207.2
212.0
227.4
233.3
227.9
242.3
2 Profits tax liability
3 Profits after tax
4
Dividends
5
Undistributed profits
6 Capital consumption allowances
63.8
92.2
37.5
54.7
97.1
151.8
72.6
104.5
42.1
62.4
109.3
171.7
84.5
121.5
47.2
74.3
119.8
194.1
70.8
106.7
45.1
61.6
116.5
178.1
84.7
122.4
46.0
76.4
119.1
195.5
87.5
124.5
47.8
76.8
120.6
197.3
95.1
132.3
49.7
82.6
123.1
205.7
91.3
142.0
51.5
90.5
125.5
216.0
88.7
139.3
52.3
87.0
130.4
217.3
94.0
148.3
52.8
95.5
132.8
228.3
SOURCE. Survey of Current Business (U.S. Department of Commerce.)
A38
DomesticNonfinancialStatistics • January 1980
1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities
Billions of dollars, except for ratio
1977
Account
1975
1978
1976
Q3
Q4
Ql
Q2
1979
Q3
Q4
Ql
Q2
759.0
826.3
881.8
900.9
925.0
954.2
992.6 1,028.1 1,078.6 1,110.2
82.1
19.0
272.1
315.9
69.9
87.3
23.6
293.3
342.9
79.2
83.5
19.3
326.9
368.3
83.8
94.3
18.7
325.0
375.6
87.3
88.8
18.6
337.4
390.5
89.6
91.3
17.3
356.0
399.3
90.3
91.6
16.1
376.4
415.5
92.9
103.5
17.8
381.9
428.3
96.5
102.4
19.2
405.3
452.6
99.1
7 Current liabilities
451.6
492.7
533.2
546.8
574.2
593.5
626.3
662.2
701.9
723.7
8 Notes and accounts payable
9 Other
264.2
187.4
282.0
210.6
306.1
227.1
313.7
233.1
325.2
249.0
337.9
255.6
356.2
270.0
375.1
287.1
392.6
309.2
410.5
313.1
307.4
336.6
348.6
354.1
350.7
360.7
366.3
365.9
376.7
386.5
1.681
1.677
1.654
1.648
1.611
1.608
1.585
1.552
1.537
1.534
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
10 Net working capital
11 MEMO : Current ratio
1
1. Ratio of total current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial Corporations" in the July 1978 BULLETIN, pp. 533-37.
100.1
20.8
418.8
468.9
101.4
All data in this table have been revised to reflect the most current
benchmarks. Complete data are available upon request from the Flow
of Funds Section, Division of Research and Statistics,
SOURCE. Federal Trade Commission.
1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Industry
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Communication
11 Commercial and other 1
1978'
1980
Q3
Q4
Ql
Q2
Q3 r
Q42
Q12
Q22
153.82
176.37
155.41
163.96
165.94
173.48
179.33
184.32
189.32
195.76
31.66
35.96
37.89
40.41
32.25
35.50
33.99
39.26
34.00
37.56
36.86
39.56
39.72
40.50
40.16
42.88
42.32
42.70
44.44
44.68
4.78
5.52
4.99
4.98
5.46
5.31
5.42
5.91
4.95
5.04
3.32
2.30
2.43
3.88
3.34
2.97
3.38
2.20
2.47
3.49
2.39
2.55
4.02
3.35
2.71
3.66
3.26
2.79
4.03
3. 10
3.16
4.00
3.74
3.22
3.92
5.09
3.75
3.68
3.89
3.98
29.48
4.70
18.16
25.71
33.18
4.99
20.18
28.98
24.92
4.70
18.90
26.09
26.95
4.78
18.46
27.12
27.70
4.66
18.75
27.73
28.06
5.18
20.29
28.51
28.32
5.01
20.41
29.66
28.53
5.24
1\ 50.65
crv nc
27.72
5.35
53. 52
28.32
6.13
55. 60
1. Includes trade, service, construction, finance, and insurance.
2. Anticipated by business.
NOTE. Estimates for corporate and noncorporate business, excluding
1979
1978
1979 p
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
A39
1.53 DOMESTIC FINANCE COMPANIES Assets and Liabilities
Billions of dollars, end of period
1978
Account
1973
1974
1975
1976
1979
1977
Q3
Q4
Q2
Q1
Q3
ASSETS
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS ; Reserves for unearned income and losses...
Accounts receivable, net
Cash and bank deposits
Securities
All other
35.4
32.3
67.7
36.1
37.2
73.3
36.0
39.3
75.3
38.6
44.7
83.4
44.0
55.2
99.2
49.7
58.3
52.6
63.3
54.9
66.7
58.7
70.1
62.3
68.1
108.0
14.3
93.7
2.7
116.0
15.6
100.4
3.5
121.6
16.5
105.1
128.8
17.7
130.4
18.7
8.4
59.3
2.6
9.0
64.2
3.0
9.4
65.9
2.9
10.5
72.9
2.6
12.7
86.5
2.6
.8
10.6
.4
12.0
1.0
11.8
1.1
12.6
.9
111.1
111.7
1.3
24.6
25.8
14.3
1.8
17.1
17.3
73.2
79.6
81.6
89.2
104.3
115.3
122.4
128.9
135.8
137.4
7.3
41.0
7.8
39.2
)\
J
23.81
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12
Short-term, n.e.c
13
Long-term, n.e.c
14
Other
7.2
9.7
8.0
6.3
5.9
5.4
6.5
19.7
20.7
22.2
23.7
29.6
29.3
34.5
6.5
38.1
4.6
24.6
5.6
4.9
26.5
5.5
4.5
27.6
6.8
5.4
32.3
8.1
6.2
36.0
11.5
6.8
41.3
15.2
8.1
43.6
12.6
6.7
44.5
15.1
8.8
46.0
14.4
9.1
47.5
15.4
15 Capital, surplus, and undivided profits
11.5
12.4
12.5
13.4
15.1
17.3
17.2
18.0
18.2
18.4
16 Total liabilities and capital
73.2
79.6
81.6
89.2
104.3
115.3
122.4
128.9
135.8
137.4
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.54 DOMESTIC FINANCE COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Oct. 31,
19791
Changes in accounts
receivable
Extensions
Repayments
1979
1979
1979
Aug.
1 Total
69,465
2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial and
farm equipment
5 Loans on commercial accounts r e c e i v a b l e 2 . . . . }
6 Factored commercial accounts receivable 2
7 All other business credit
15,409
14,008
18,154
6,455
15,439
1. Not seasonally adjusted.
Sept.
Oct.
Aug.
Sept.
Oct.
Aug.
Sept.
Oct.
251 - 1 , 2 4 5
399
15,606
15,310
16,354
15,355
16,555
15,955
101
-583
94
-1,453
-16
-408
1,239
5,633
1,236
5,320
1,151
6,079
1,138
6,216
1,142
6,773
1,167
6,487
282
97
354
135
-281
260
369
168
286
1.194
5.195
2,345
1,172
5,369
2,213
1,300
5,200
2,624
912
5,098
1,991
1,037
5,650
1,953
931
5,032
2,338
2. Beginning January 1979 the categories "Loans on commercial accounts receivable" and "Factored commercial accounts receivable" are
combined.
A40
DomesticNonfinancialStatistics • January 1980
1.55 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1979
Item
1976
1977
1978
June
July
Aug.
Sept.
Oct.
Nov.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional
mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Contract rate (percent per annum)
Yield (percent per annum)
7 FHLBB series 3
8 H U D series. 4
48.4
35.9
74.2
27.2
1.44
8.76
54.3
40.5
76.3
27.9
1.33
8.80
62.6
45.9
75.3
28.0
1.39
9.30
73.7
52.5
73.5
28.4
1.53
10.39
74.3
52.7
73.0
28.1
1.63
10.49
80.0
56.9
73.1
28.1
1.60
10.73
75.5
53.9
73.4
28.6
1.67
10.72
76.4'
54.9 r'
73.7
28.5'
1.70'
10.91'
77.1
55.4
73.8
28.5
1.82
11.04
8.99
8.99
9.01
8.95
9.54
9.68
10.66
10.90
10.78
10.95
11.01
11.10
11.02
11.35
11.21'
12.15'
11.37
12.50
8.82
8.17
8.68
8.04
9.70
8.98
10.49
9.78
10.46
9.77
10.58
9.91
11.37
10.31
n.a.'
11.25'
12.41
11.57
8.99
9.11
8.73
8.98
9.77
10.01
10.77
11.57
10.66
11.52
10.66
11.52
11.08
11.75
12.52'
12.85'
12.75
13.66
SECONDARY MARKETS
9
10
11
12
Yield (percent per annum)
F H A mortgages ( H U D series) 5
G N M A securities 6
F N M A auctions 7
Government-underwritten loans
Conventional loans
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
Total
FHA-insured
VA-guaranteed
Conventional
32,904
18,916
9,212
4,776
34,370
18,457
9,315
6,597
43,311
21,243
10,544
11,524
48,206
23,204
10,502
14,500
48,539
23,378
10,450
14,710
48,909
23,526
10,386
14,997
49,173
n.a.
n.a.
15,203
49,744
n.a.
n.a.
15,517
50,356
n.a.
n.a.
15,797
Mortgage transactions (during period)
17 Purchases
18 Sales
3,606
86
4,780
67
12,303
5
739
0
602
0
646
0
545
0
859
0
872
0
Mortgage commitments8
19 Contracted (during period)
20 Outstanding (end of period)
6,247
3,398
9,729
4,698
18,960
9,201
634
6,476
354
5,912
593
5,692
1,407
6,352
2,369
7,472
496
6,974
4,929.8
2,787.2
7,974.1
4,846.2
12,978
6,747.2
219.9
99.9
133.2
69.6
162.3
82.7
1,421.1
599.9
2,943.4
1,130.4
558.4
264.6
2,595.7
1,879.2
5,675.2
3,917.8
9,933.0
5,110.9
357.5
195.3
93.5
69.9
245.9
184.1
527.3
325.6
1,049.9
431.2
366.1
190.2
4,269
1,618
2,651
3,276
1,395
1,881
3,064
1,243
1,822
3,334
1,171
2,163
3,487
1,156
2,331
3,549
1,145
2,404
3,729
1,132
2,597
3,726
1,120
2,606
3,990
1,112
2,879
Mortgage transactions (during period)
28 Purchases
29 Sales
1,175
1,396
3,900
4,131
6,524
6,211
447
382
518
321
636
554
537
347
552
530
458
186
Mortgage
commitments11
30 Contracted (during period)
31 Outstanding (end of period)
1,477
333
5,546
1,063
7,451
1,410
528
1,590
528
1,572
655
1,536
437
1,400
504
1,312
221
1,036
13
14
15
16
Auction of 4-month commitments to buy
Government-underwritten loans
Offered 9
Accepted
Conventional loans
23
Offered 9
21
22
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period) IO
25 Total
26
FHA/VA
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) in order 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, rounded to the nearest 5 basis points; from Department of
Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage
Association guaranteed, mortgage-backed, fully modified pass-through
securities, assuming prepayment in 12 years on pools of 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7. Average gross yields (before deduction of 38 basis points for mortgage servicing) on accepted bids in Federal National Mortgage Association's auctions of 4-month commitments to purchase home mortgages,
assuming prepayment in 12 years for 30-year mortgages. No adjustments
are made for F N M A commitment fees or stock related requirements.
Monthly figures are unweighted averages for auctions conducted within
the month.
8. 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 F N M A - G N M A tandem
plans.
9. Mortgage amounts offered by bidders are total bids received.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.
Real Estate Debt
A41
1.56 MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
Type of holder, and type of property
1976
1977
1979
1978
1978
Q3
Q4
Ql
Q2
Q3
1,295,449
1 All holders
889,327
1,023,505
1,172,502
1,133,503
1,172,737
1,206,280
1,252,519
2 1- to 4-family
556,557
104,516
171,223
57,031
656,566
111,841
189,274
65,824
761,905
122,004
212,597
75,996
734,709
119,381
205,629
73,784
761,892
121,978
212,743
76,124
784,602
123,970
217,501
80,207
817,018
125,923
224,507
85,071
845,284<
129,079
232,084
89,002
647,650
151,326
86,234
8,082
50,289
6,721
745,011
178,979
105,115
9,215
56,898
7,751
847,910
213,963
126,966
10,912
67,056
9,029
821,988
205,445
121,911
10,478
64,386
8,670
848,145
213,963
126,966
10,912
67,056
9,029
866,036
220,063
130,585
11,223
68,968
9,287
894,471
229,564
136,223
11,708
71,945
9,688
919,984
239,363
142,038
12,208
75,016
10,101
81,639
53,089
14,177
14,313
60
88,104
57,637
15,304
15,110
53
95,157
62,252
16,529
16,319
57
93,403
61,104
16,224
16,019
56
95,157
62,252
16,529
16,319
57
96,136
62,892
16,699
16,488
57
97,155
63,559
16,876
16,663
58
97,929
64,065
17,010
16,795
59
323,130
260,895
28,436
33,799
381,163
310,686
32,513
37,964
432,858
356,156
36,057
40,645
420,971
345,617
35,362
39,992
432,858
356,156
36,057
40,645
441,420
363,774
36,682
40,964
456,629
377,587
37,078
41,964
468,324
387,257
38,028
43,039
91,555
16,088
19,178
48,864
7,425
96,765
14,727
18,807
54,388
8,843
105,932
14,449
19,026
62,086
10,371
102,169
14,158
18,742
59,153
10,116
106,167
14,436
19,000
62,232
10,499
108,417
14,507
19,080
63,908
10,922
111,123
14,489
19,102
66,055
11,477
114,368
14,884
19,107
68,513
11,864
66,753
4,241
1,970
2,271
70,006
3,660
1,548
2,112
81,853
3,509
877
2,632
78,672
3,560
897
2,663
81,853
3,509
877
2,632
86,689
3,448
821
2,627
90,095
3,425
800
2,625
93,143
3,382
780
2,602
1,964
454
218
72
320
1,353
626
275
149
303
926
288
320
101
217
1,384
460
240
251
433
926
288
320
101
217
956
302
180
283
191
1,200
363
75
278
484
1,383
163
299
262
659
5 Farm
6 Major financial institutions
7
Commercial banks 1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
21
22
23
24
25
Life insurance companies
1- to 4-family
26 Federal and related agencies
27
Government National Mortgage Assn. ..
1- to 4-family
28
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
35
36
37
Federal Housing and Veterans Admin. ..
1- to 4-family
Multifamily
5,150
1,676
3,474
5,212
1,627
3,585
5,419
1,641
3,778
5,295
1,565
3,730
5,419
1,641
3,778
5,522
1,693
3,829
5,597
1,744
3,853
5,672
1,795
3,877
38
39
40
Federal National Mortgage Association..
1- to 4-family
32,904
26,934
5,970
34,369
28,504
5,865
43,311
37,579
5,732
41,189
35,437
5,752
43,311
37,579
5,732
46,410
40,702
5,708
48,206
42,543
5,663
49,173
43,534
5,639
41
42
43
Federal Land Banks
1- to 4-family
Farm
19,125
601
18,524
22,136
670
21,466
25,624
927
24,697
24,758
819
23,939
25,624
927
24,697
26,893
1,042
25,851
28,459
1,198
27,261
29,804
1,374
28,430
44
45
46
Federal Home Loan Mortgage Corp
1- to 4-family
Multifamily
4,269
3,889
380
3,276
2,738
538
3,064
2,407
657
2,486
1,994
492
3,064
2,407
657
3,460
2,685
775
3,208
2,489
719
3,729
2,850
879
47 Mortgage pools or trusts 2
48
Government National Mortgage Assn. ..
49
1- to 4-family
50
Multifamily
49,801
30,572
29,583
989
70,289
44,896
43,555
1,341
88,633
24,347
52,732
1,615
82,730
50,844
49,276
1,568
88,633
54,347
52,732
1,615
94,551
57,955
56,269
1,686
102,259
63,000
61,246
1,754
110,648
69,357
67,535
1,822
2,671
2,282
389
6,610
5,621
989
11,892
9,657
2,235
10,511
8,616
1,895
11,892
9,657
2,235
12,467
10,088
2,379
13,708
11,096
2,612
14,421
11,568
2,853
16,558
10,219
532
2,440
3,367
18,783
11,379
759
2,945
3,682
22,394
13,400
1,116
3,560
4,318
21,375
12,851
1,116
3,369
4,039
22,394
13,400
1,116
3,560
4,318
24,129
13,883
1,465
3,660
5,121
25,551
14,329
1,764
3,833
5,625
26,870
14,972
1,763
4,054
6,081
125,123
62,643
20,420
21,446
20,614
138,199
72,115
20,538
21,820
23,726
154,106
82,574
21,395
212,830
27,307
150,113
80,004
21,119
22,459
26,531
154,106
82,574
21,395
22,830
27,307
158,014
85,056
21,670
23,292
27,996
165,694
89,352
22,094
23,770
30,478
171,674
92,469
22,992
24,405
31,808
Commercial
Farm
51
52
53
Federal Home Loan Mortgage Corp.. ..
1- to 4-family
Multifamily
54
55
56
57
58
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
59 Individual and others 3
1- to 4-family
60
Multifamily
61
62 Commercial
Farm
63
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Outstanding principal balances of mortgages backing securities insured or guaranteed by the agency indicated.
3. Other holders include mortgage companies, real estate investment
trusts, state and local credit agencies, state and local retirement funds,
noninsured pension funds, credit unions, and U.S. agencies for which
amounts are small or separate data are not readily available.
NOTE. Based on data from various institutional and government
sources, with some quarters estimated in part by the Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the Department of Commerce. Separation of nonfarm mortgage debt by type of
property, if not reported directly, and interpolations and extrapolations
when required, are estimated mainly by the Federal Reserve. Multifamily debt refers to loans on structures of five or more units.
A42
DomesticNonfinancialStatistics • January 1980
1.57 CONSUMER INSTALLMENT CREDIT 1 Total Outstanding, and Net Change
Millions of dollars
Holder, and type of credit
1976
1977
1979
1978
May
June
July
Aug.
Sept.
Oct.
Nov.
Amounts outstanding (end of period)
1 Total.
193,977
230,829
275,629
287,315
291,856
295,052
299,813
303,902
305,217
307,641
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks..
93,728
38,919
31,169
19,260
6,246
2,830
1,825
112,373
44,868
37,605
23,490
7,354
2,963
2,176
136,189
54,298
45,939
24,876
8,394
3,240
2,693
142,102
59,635
46,832
23,421
9,066
3,537
2,722
144,035
60,996
47,478
23,672
9,290
3,704
2,681
145,169
62,463
47,772
23,713
9,425
3,872
2,638
147,312
63,362
48,631
24,114
9,760
4,048
2,586
148,657
64,822
49,214
24,446
9,972
4,244
2,547
149,152
65,692
48,770
24,860
10,073
4,174
2,496
149,057
67,164
48,673
25,732
10,241
4,281
2,493
By major type of credit
9 Automobile
10
Commercial b a n k s . . .
11
Indirect paper
12
Direct loans
13
Credit unions.
14
Finance companies..
67,707
39,621
22,072
17,549
15,238
12,848
82,911
49,577
27,379
22,198
18,099
15,235
102,468
60,564
33,850
26,714
21,967
19,937
109,211
63,891
35,917
27,974
22,394
22,926
110,930
64,480
36,251
28,229
22,703
23,747
111,952
64,826
36,475
28,351
22,844
24,282
113,351
65,389
36,887
28,502
23,255
24,707
114,765
65,813
37,267
28,546
23,534
25,418
114,876
65,973
37,469
28,504
23,322
25,581
115,121
65,646
37,334
28,312
23,275
26,200
15 Revolving
16
Commercial banks...
17 Retailer
18
Gasoline companies.
17,189
14,359
2,830
39,274
18,374
17,937
2,963
47,051
24,434
19,377
3,240
46,489
25,054
17,898
3,537
47,458
25,652
18,102
3,704
47,894
25,927
18,095
3,872
49,270
26,782
18,440
4,048
50,422
27,446
18,732
4,244
50,883
27,600
19,109
4,174
52,060
27,827
19,952
4,281
19 Mobile home
20
Commercial banks..
21
Finance companies.
22
Savings and loans..
23
Credit unions
14,573
8,737
3,263
2,241
332
15,141
9,124
3,077
2,538
402
16,042
9,553
3,152
2,848
489
16,453
9,702
3,177
3,076
498
16,607
9,759
3,191
3,152
505
16,719
9,801
3,212
3,198
508
16,972
9,912
3,231
3,312
517
17,105
9,940
3,258
3,384
523
17,244
10,013
3,295
3,418
518
17,349
10,036
3,321
3,475
517
24 Other
25
Commercial banks. . .
26
Finance companies. . .
27
Credit unions
28
Retailers
29
Savings and l o a n s . . . .
30
Mutual savings banks.
94,508
31,011
22,808
15,599
19,260
4,005
1,825
93,503
35,298
26,556
19,104
5,553
4,816
2,176
110,068
41,638
31,209
23,483
5,499
5,546
2,693
115,162
43,455
33,532
23,940
5,523
5,990
2,722
116,861
44,144
34,058
24,270
5,570
6,138
2,681
118,487
44,615
34,969
24,420
5,618
6,227
2,638
120,220
45,229
35,424
24,859
5,674
6,448
2,586
121,610
45,458
36,146
25,157
5,714
6,588
2,547
122,214
45,566
36,816
24,930
5,751
6,655
2,496
123,111
45,548
37,643
24,881
5,780
6,766
2,493
2
3
4
5
6
7
8
Net change (during period) 3
31 Total
21,647
35,278
44,810
3,306
2,558
2,443
2,446
4,446
2,186
2,407
10,792
2,946
5,503
1,059
1,085
124
138
18,645
5,948
6,436
2,654
1,111
132
352
23,813
9,430
8,334
1,386
1,041
276
530
1,665
893
124
283
280
96
-35
984
913
144
288
240
39
-50
662
1,185
342
180
120
2
-48
866
549
391
332
253
116
-61
1,521
1,773
411
443
207
127
-36
771
1,076
-152
335
76
122
-42
283
1,340
-43
477
143
218
-9
10,465
6,334
2,742
3,592
2.497
1,634
15,204
9,956
5,307
4,649
2,861
2,387
19,557
10,987
6,471
4,516
3,868
4,702
1,225
633
389
244
60
532
690
123
87
36
45
522
616
72
51
21
183
361
594
172
188
-16
177
245
1,823
762
542
220
218
843
487
203
237
-34
-79
363
533
-75
40
-115
-23
633
2,170
2,046
7,776
6,060
1,440
276
749
418
235
96
796
494
263
39
429
303
124
2
787
365
306
116
1,057
546
384
127
664
253
289
122
799
136
445
218
By major holder
33
34
35
36
37
38
Finance companies
Credit unions
Retailers 1
Savings and loans
Gasoline companies
Mutual savings banks
By major type of credit
39 Automobile
40
Commercial banks
41
Indirect paper
42
Direct loans
43
Credit unions...
44
Finance companies
124
6,248
4,015
2,101
132
49 Mobile home
50
Commercial banks
51
Finance companies
52
Savings and loans
140
70
-182
192
60
565
387
-189
297
70
897
426
74
310
87
234
125
13
94
2
102
12
14
74
2
72
17
11
41
3
182
59
13
106
4
89
10
17
57
5
150
105
27
21
-3
103
33
19
52
0
54 Other
55
Commercial banks
56
Finance companies
57
Credit unions
58
Retailers
59
Savings and loans
60
Mutual savings banks
8,872
2,342
1,494
2,946
1,059
893
138
13,261
4,287
3,750
3,505
553
814
352
16,580
6,340
4,654
4,379
-54
731
530
1,098
489
348
62
48
186
-35
970
355
377
97
25
166
-50
1,326
270
813
156
56
79
-48
883
270
291
210
26
147
-61
1,477
203
913
188
59
150
-36
885
210
686
-70
46
55
-42
972
190
688
-18
32
91
-9
45 Revolving
46
Commercial banks
47
Retailers
1. The Board's series cover most short- and intermediate-term credit
extended to individuals through regular business channels, usually to
finance the purchase of consumer goods and services or to refinance
debts incurred for such purposes, and scheduled to be repaid (or with
the option of repayment) in two or more installments.
2. Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
3. Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
NOTE. Total consumer noninstallment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $64.3 billion at the end
of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976,
and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979,
will be published in the February 1980 BULLETIN.
Consumer
Debt
A43
1.58 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars.
Holder, and type of credit
1976
1977
1979
1978
May
June
July
Aug.
Sept.
Oct.
Nov.
Extensions 1
1 Total
2
3
4
5
6
7
8
211,028
254,071
298,351
27,901
26,139
26,848
27,583
28,634
27,695
26,464
97,397
36,129
29,259
29,447
3,898
13,387
1,511
117,896
41,989
34,028
39,133
4,485
14,617
1,923
142,720
50,505
40,023
41,619
5,050
16,125
2,309
13,400
5,186
3,124
3,721
723
1,613
134
12,278
4,641
2,986
3,853
682
1,589
110
12,292
5,353
3,282
3,687
592
1,525
117
12,700
5,133
3,361
3,921
728
1,640
100
13,172
5,489
3,363
4,082
678
1,734
116
12,718
5,642
2,942
3,930
571
1,773
119
11,738
5,105
2,808
4,161
606
1,913
133
75,641
46,363
25,149
21,214
16,616
12,662
88,987
53,028
29,336
23,692
19,486
16,473
8,260
4,680
2,684
1,996
1,566
2,014
7,178
3,952
2,146
1,806
1,485
1,741
7,447
3,936
2,151
1,785
1,611
1,900
7,667
4,085
2,276
1,809
1,661
1,921
8,430
4,544
2,569
1,975
1,655
2,231
7,676
4,185
2,376
1,809
1,434
2,057
7,066
3,640
2,009
1,631
1,399
2,027
104,587
51,531
36,931
16,125
10,039
5,154
3,272
1,613
10,136
5,166
3,381
1,589
9,856
5,078
3,253
1,525
10,371
5,280
3,451
1,640
10,699
5,398
3 567
1,734
10,424
5,165
3,486
1,773
10,613
5,014
3 686
1,913
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
By major type of credit
9 Automobile
10
Commercial banks
11
Indirect paper
12
Direct loans
14
Finance companies
63,743
37,886
20,576
17,310
14,688
11,169
16
Commercial banks
43,934
30,547
18
Gasoline companies
13,387
86,756
38,256
33,883
14,617
20
21
22
23
Commercial banks
Finance companies
Savings and loans
Credit unions
4,859
3,064
702
929
164
5,425
3,466
643
1,120
196
6,067
3,704
886
1,239
238
668
411
58
182
17
547
304
59
167
17
519
297
71
133
18
655
362
67
206
20
531
294
69
148
20
582
374
83
114
11
515
294
69
139
13
98,492
25,900
24,258
14,407
29,447
2,969
1,511
86,249
29,811
28,684
17,216
5,250
3,365
1,923
98,710
34,457
33,146
20,299
4,688
3,811
2,309
8,934
3,155
3,114
1,541
449
541
134
8,278
2,856
2,841
1,484
472
515
110
9,026
2,981
3,382
1,653
434
459
117
8,890
2,973
3,145
1,680
470
522
100
8,974
2,936
3,189
1,688
515
530
116
9,013
2,994
3,502
1,497
444
457
119
8,270
2,790
3,009
1,396
475
467
133
24 Other
25
Commercial banks
26
Finance companies
27
Credit unions
28
Retailers
29
Savings and loans
30
Mutual savings banks
Liquidations 1
31 Total
189,381
218,793
253,541
24,595
23,581
24,405
25,137
24,188
25,509
24,057
86,605
33,183
23,756
28,388
2,813
13,263
1,373
99,251
36,041
27,592
36,479
3,374
14,485
1,571
118,907
41,075
31,689
40,233
4,009
15,849
1,779
11,735
4,293
3,000
3,438
443
1,517
169
11,294
3,728
2,842
3,565
442
1,550
160
11,630
4,168
2,940
3,507
472
1,523
165
11,834
4,584
2,970
3,589
475
1,524
161
11,651
3,716
2,952
3,639
471
1,607
152
11,947
4,566
3,094
3,595
495
1,651
161
11,455
3,765
2,852
3,684
463
1,695
143
53,278
31,552
17,834
13,718
12,191
9,535
60,437
36,407
19,842
16,565
13,755
10,275
69,430
42,041
22,865
19,176
15,618
11,771
7,035
4,047
2,295
1,752
1,506
1,482
6,488
3,829
2,059
1,770
1,440
1,219
6,831
3,864
2,100
1,764
1,428
1,539
7,073
3,913
2,088
1,825
1,484
1,676
6,607
3,782
2,027
1,755
1,437
1,388
7,189
3,982
2,139
1,843
1,513
1,694
6,533
3,716
1,969
1,747
1,423
1,394
41,764
28,501
96,811
45,471
35,491
15,849
9,290
4,736
3,037
1,517
9,340
4,672
3,118
1,550
9,427
4,775
3,129
1,523
9,584
4,915
3,145
1,524
9,642
4,852
3,183
1,607
9,760
4,912
3,197
1,651
9,814
4,878
3,241
1,695
By major holder
32 Commercial banks
33 Finance companies
35 Retailers 2
36 Savings and loans
37 Gasoline companies
By major type of credit
40
41
42
43
44
Commercial banks
Indirect paper
Direct loans
Credit unions
Finance companies
47
48
Retailers
Gasoline companies
13,263
80,508
34,241
31,782
14,485
50
51
Commercial banks
Finance companies
4,719
2,994
884
737
104
4,860
3,079
832
823
126
5,170
3,278
812
929
151
434
286
45
88
15
445
292
45
93
15
447
280
60
92
15
473
303
54
100
16
442
284
52
91
15
432
269
56
93
14
412
261
50
87
14
89,620
23,558
22,764
11,461
28,388
2,076
1,373
72,988
25,524
24,934
13,711
4,697
2,551
1,571
82,130
28,117
28,492
15,920
4,742
3,080
1,779
7,836
2,666
2,766
1,479
401
355
169
7,308
2,501
2,464
1,387
447
349
160
7,700
2,711
2,569
1,497
378
380
165
8,007
2,703
2,854
1,470
444
375
161
7,497
2,733
2,276
1,500
456
380
152
8,128
2,784
2,816
1,567
398
402
161
7,298
2,600
2,321
1,415
443
376
143
54 Other
56
Finance companies
58
59
60
Retailers
Savings and loans
Mutual savings banks
1. Monthly figures are seasonally adjusted.
2. Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
A44
DomesticNonfinancialStatistics • January 1980
1.59 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1973
1974
1976
1975
1976
1977
1977
1978
H2
1978
1979
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total funds raised
2 Excluding equities
By sector and instrument
3 U.S. government
4
Treasury securities
5
Agency issues and mortgages
6 All other nonfinancial sectors
7
Corporate equities
8
Debt instruments
9
Private domestic nonfinancial sectors
10
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations
14
Corporate bonds
Mortgages
15
Home
16
Multifamily residential
17
Commercial
18
Farm
19
Other debt instruments
20
Consumer credit
21
Bank loans n.e.c
22
Open market paper
23
Other
24
25
26
27
28
29
30
31
32
33
34
35
36
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
203.1
195.4
191.3
187.4
210.8
200.7
271.9
261.1
338.5
335.4
400.3
398.2
274.9
266.8
298.1
296.9
378.9
373.8
384.5
387.1
416.1
409.3
386.5
383.8
8.3
7.9
.4
194.9
7.7
187.2
188.8
7.9
180.9
105.1
14.7
9.2
11.8
12.0
-.2
179.5
3.8
175.6
164.1
4.1
160.0
98.0
16.5
19.7
85.4
85.8
-.4
125.4
10.1
115.3
112.1
9.9
102.1
98.4
16.1
27.2
69.0
69.1
-.1
202.9
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8
56.8
57.6
-.9
281.8
3.1
278.6
267.9
2.7
265.1
175.6
23.7
21.0
53.7
55.1
-1.4
346.6
2.1
344.5
314.4
2.6
311.8
196.6
28.3
20.1
61.4
61.8
-.3
213.4
8.1
205.4
192.3
7.7
184.6
126.5
10.9
22.9
46.1
46.7
-.6
252.0
1.2
250.8
241.5
.5
241.0
158.7
22.3
16.6
67.4
68.6
-1.2
311.5
5.1
306.4
294.2
4.9
289.3
192.5
25.0
25.4
61.4
62.3
-.9
323.1
-2.6
325.7
302.5
-1.8
304.3
188.0
27.8
20.6
46.0
47.9
-1.9
370.2
6.8
363.4
326.3
7.0
319.2
205.1
28.7
19.6
27.1
29.4
-2.3
359.4
2.7
356.7
344.1
2.8
341.3
204.8
17.5
23.7
46.4
10.4
18.9
5.5
75.8
26.0
37.1
2.5
10.3
34.8
6.9
15.1
5.0
62.0
9.9
31.7
6.6
13.7
39.5
11.0
4.6
3.8
9.7
-12.3
-2.6
9.0
63.7
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4
96.4
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0
104.5
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2
70.0
3.1
12.5
7.3
58.0
27.6
10.8
2.3
17.4
89.7
6.4
14.8
9.0
82.3
36.6
27.3
3.4
14.9
103.1
8.4
21.9
8.7
96.7
44.5
26.7
2.4
23.2
99.8
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8
109.2
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5
112.7
8.2
25.8
17.1
136.5
47.7
48.9
10.8
29.1
188.8
13.2
80.1
9.6
13.0
73.0
164.1
15.5
51.2
8.0
7.7
81.7
112.1
13.7
49.5
8.8
2.0
38.1
182.0
15.2
90.7
10.9
5.4
59.8
267.9
20.4
139.9
14.7
12.5
80.3
314.4
23.6
162.6
18.1
15.7
94.5
192.3
11.7
98.8
11.9
5.8
64.1
241.5
15.7
129.4
15.7
13.4
67.3
294.2
25.0
150.4
13.8
12.5
92.4
302.5
21.0
156.1
15.3
16.3
93.7
326.3
26.1
169.1
20.8
14.5
95.8
344.1
14.6
168.5
23.2
15.1
122.7
6.1
-.2
6.3
1.0
2.7
.9
1.7
15.4
-.2
15.7
2.1
4.7
7.3
1.6
13.3
.2
13.2
6.2
3.9
.3
2.8
20.8
.3
20.5
8.6
6.8
1.9
3.3
13.9
.4
13.5
5.1
3.1
2.4
3.0
32.3
-.5
32.8
4.0
18.3
6.6
3.9
21.1
.3
20.8
9.7
5.1
2.4
3.6
10.5
.6
9.9
4.4
-.4
2.7
3.1
17.3
.2
17.1
5.7
6.5
2.2
2.9
20.6
-.8
21.4
5.0
9.3
3.6
3.6
43.9
-.2
44.1
3.0
27.3
9.6
4.2
15.3
-.1
15.4
3.5
2.8
6.1
3.1
*
Financial sectors
37 Total funds raised
38
39
40
41
42
43
44
45
46
47
48
49
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate equities
Debt instruments
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper and RPs
Loans from FHLBs
By sector
50 Sponsored credit agencies
51 Mortgage pools
52 Private financial sectors
Commercial banks
53
54
Bank affiliates
55
Savings and loan associations
56
Other insurance companies
57
Finance companies
58
REITs
59
Open-end investment companies
44.8
39.2
12.7
24.1
54.0
81.4
28.5
47.7
60.3
80.7
82.1
90.9
19.9
16.3
3.6
0
24.9
1.5
23.4
3.5
-1.2
9.0
4.9
7.2
23.1
16.6
5.8
.7
16.2
.3
15.9
2.1
-1.3
4.6
3.8
6.7
13.5
2.3
10.3
.9
-.8
.6
-1.4
2.9
2.3
-3.7
1.1
-4.0
18.6
3.3
15.7
-.4
5.5
1.0
4.4
5.8
2.1
-3.7
2.2
-2.0
26.3
7.0
20.5
-1.2
27.7
.9
26.9
10.1
3.1
-.3
9.6
4.3
41.4
23.1
18.3
0
40.0
1.7
38.3
7.5
.9
2.8
14.6
12.5
20.7
4.3
17.2
-.7
7.8
2.3
5.6
5.1
2.8
-5.3
5.0
-2.0
22.6
7.1
17.9
-2.3
25.1
.9
24.2
10.2
3.1
-1.8
9.8
2.9
29.9
6.8
23.1
0
30.4
.8
29.6
10. 1
3.0
1.2
9.5
5.8
38.5
21.9
16.6
0
42.2
2.2
40.0
8.5
2.1
2.5
13.5
13.2
44.3
24.3
20.1
0
37.8
1.1
36.7
6.4
-.3
3.1
15.7
11.8
48.0
21.4
26.6
0
42.9
2.3
40.5
10.1
-.4
-1.4
24.5
7.7
16.3
3.6
24.9
1.2
2.2
6.0
.5
9.5
6.5
-1.2
17.3
5.8
16.2
1.2
3.5
4.8
.9
6.0
.6
-.7
3.2
10.3
-.8
1.2
.3
-2.3
1.0
.5
-1.4
-.1
2.6
15.7
5.5
2.3
-.8
.1
.9
6.4
-2.4
-1.0
5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
-2.2
-.9
23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
-1.0
-1.0
3.5
17.2
7.8
2.1
-.3
.3
.9
7.2
-2.7
.4
4.7
17.9
25.1
.8
1.3
8.3
.9
16.7
-2.4
-.6
6.8
23.1
30.4
1.5
1.2
11.5
1.0
18.5
-2.0
-1.3
21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
-1.0
-.5
24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
-1.0
-1.5
21.4
26.6
42.9
1.1
6.2
10.4
1.0
24.7
-.4
-.3
All sectors
60 Total funds raised, by instrument
248.0
230.5
61 Investment company shares
62 Other corporate equities
63 Debt instruments
64
U.S. government securities
65
State and local obligations
66
Corporate and foreign bonds
67
Mortgages
68
Consumer credit
69
Bank loans n.e.c
70
Open market paper and RPs
71
Other loans
-1.2
10.4
238.8
28.3
14.7
13.6
79.9
26.0
48.8
8.3
19.1
-.7
4.8
226.4
34.3
16.5
23.9
60.5
9.9
41.0
17.7
22.7
223.5
296.0
392.5
481.7
303.4
345.8
439.2
465.2
498.3
477.4
10.8
212.8
98.2
16.1
36.4
57.2
9.7
-12.2
-1.2
8.7
-1.0
12.9
284.1
88.1
15.7
37.2
87.1
25.6
7.0
8.1
15.3
-.9
4.9
388.5
84.3
23.7
36.1
134.0
40.6
29.8
15.0
25.2
-1.0
4.7
478.0
95.2
28.3
31.6
149.0
50.6
58.4
26.4
38.6
.4
9.9
293.1
82.9
10.9
37.7
95.5
27.6
10.6
9.6
18.2
-.6
2.6
343.8
71.2
22.3
31.2
122.9
36.6
25.1
15.9
18.5
-1.3
7.2
433.3
97.4
25.0
41.1
145.1
44.5
34.4
14.0
31.8
-.5
.1
465.6
100.0
27.8
34.2
141.6
50.1
54.9
22.4
34.6
-1.5
9.4
490.4
90.4
28.7
29.1
156.4
51.0
61.8
30.4
42.5
-.3
5.3
472.4
75.3
17.5
37.2
163.2
47.7
50.3
41.3
39.9
Flow of Funds
A45
1.60 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1977
1976
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors
2
3
4
5
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to S&Ls
Totals advanced, by sector
8
9
10
11
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1 . . . .
Private domestic funds advanced
13
14
15
16
U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
18
LESS: F H L B a d v a n c e s
Private financial intermediation
19 Credit market funds advanced by private
20
Commercial banking
22
Insurance and pension funds
25
Private domestic deposits
28
Foreign funds
30
Insurance and pension reserves
Private domestic nonfinancial investors
32 Direct lending in credit markets
33
U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Commercial paper
37
Other
38 Deposits and currency
39
Security RPs
40
Money market fund shares
41
Time and savings accounts
42
Large negotiable CDs
43
Other at commercial banks
44
At savings institutions
46
Demand deposits
48 Total of credit market instruments, deposits and currency
49
50
Public support rate (in percent)
Private financial intermediation (in per-
MEMO: Corporate equities not included
above
53
54
Mutual fund shares
Other equities
55 Acquisitions by financial institutions
56 Other net purchases
1973
1974
1975
1979
1978
1978
H2
HI
H2
HI
H2
HI
187.4
200.7
261.1
335.4
398.2
266.8
296.9
373.8
387.1
409.3
383.8
31.8
9.5
8.2
7.2
6.9
53.7
11.9
14.7
6.7
20.5
44.6
22.5
16.2
-4.0
9.8
54.3
26.8
12.8
-2.0
16.6
85.1
40.2
20.4
4.3
20.2
109.7
43.9
26.5
12.5
26.9
60.3
30.2
14.7
-2.0
17.4
66.1
27.1
18.9
2.9
17.2
104.2
53.3
22.0
5.8
23.1
102.8
43.7
22.2
13.2
23.7
116.6
44.0
30.7
11.8
30.1
47.3
-27.4
36.2
7.7
30.7
2.8
19.1
9.2
.6
19.9
9.8
26.5
6.2
11.2
23.1
15.1
14.8
8.5
6.1
13.5
8.9
20.3
9.8
15.2
18.6
11.8
26.8
7.1
39.4
26.3
20.4
44.6
7.0
37.7
41.4
11.9
22.2
6.2
20.0
20.7
5.9
21.6
10.2
28.3
22.6
17.8
32.0
4.0
50.4
29.9
19.4
39.4
13.4
30.6
38.5
21.4
49.8
.5
44.9
44.3
24.4
52.9
-.6
-29.5
48.0
183.6
18.8
14.7
10.0
48.4
98.8
7.2
156.8
22.4
16.5
20.9
26.9
76.8
6.7
169.7
75.7
16.1
32.8
23.2
17.9
-4.0
225.4
61.3
15.7
30.5
52.7
63.3
-2.0
276.5
44.1
.23.7
22.5
83.3
107.3
4.3
330.0
51.3
28.3
22.5
88.2
152.2
12.5
227.2
52.7
10.9
31.8
58.2
71.6
-2.0
253.5
44.1
22.3
18.0
77.1
94.9
2.9
299.6
44.1
25.0
27.0
89.4
119.7
5.8
322.8
56.3
27.8
24.1
86.7
141.1
13.2
337.1
46.4
28.7
20.9
89.6
163.3
11.8
384.6
102.6
17.5
28.4
84.5
159.3
7.7
161.3
84.6
35.1
23.7
17.9
125.5
66.6
24.2
29.8
4.8
122.5
29.4
53.5
40.6
-1.0
190.3
59.6
70.8
49.9
10.0
255.9
87.6
82.0
67.9
18.4
296.9
128.7
75.9
73.5
18.7
202.2
68.3
70.4
47.9
15.5
249.1
84.6
81.4
65.2
18.0
265.0
90.7
82.6
70.6
21.2
301.7
132.5
75.8
76.9
16.6
292.0
125.0
75.9
70.2
20.9
324.4
131.4
59.3
81.3
52.4
161.3
97.3
23.4
40.6
3.0
-1.0
18.4
20.2
125.5
67.5
15.9
42.1
10.3
-5.1
26.2
10.6
122.5
92.0
-1.4
32.0
-8.7
-1.7
29.7
12.7
190.3
124.6
4.4
61.3
-4.6
—. 1
34.5
31.4
255.9
141.2
26.9
87.8
1.2
4.3
49.4
32.9
296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3
202.2
132.4
5.6
64.2
-2.8
-3.9
33.2
37.8
249.1
138.6
24.2
86.2
1.6
.1
45.3
39.3
265.0
143.8
29.6
91.7
.8
8.5
53.4
29.0
301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6
292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0
324.4
111.8
40.5
172.1
52.2
5.5
60.8
53.6
45.7
18.8
5.4
2.0
9.8
9.7
47.2
18.9
9.3
5.1
5.8
8.0
45.8
24.1
8.4
8.4
-1.3
6.2
39.5
16.1
3.8
5.8
1.9
11.8
47.5
23.0
2.6
-3.3
9.5
15.7
71.4
33.2
4.5
-1.4
16.3
18.7
30.6
11.0
-1.5
6.0
1.6
13.5
28.6
11.9
-.5
—. 1
8.2
9.2
64.1
34.2
5.7
-6.5
10.8
19.9
61.1
32.1
7.0
-3.7
8.2
17.5
81.7
34.4
2.0
1.0
24.4
20.0
100.7
66.5
-3.0
3.8
9.4
24.1
98.1
73.8
.2
-2.2
1.3
2 4
84.0
65.4
18.4 - 1 4 . 3
38.8
25.3
59.4
21.8
12.6
8.2
6.4
1.9
6.2
6.3
131.9
2.3
113.5
-13.6
57.9
69.1
16.1
8.8
7.3
149.5
2.2
.2
121.0
9.0
43.0
69.0
26.1
17.8
8.3
151.8
7.5
6.9
115.2
10.8
43.3
61.1
22.2
12.9
9.3
141.0
3.2
5
122'. 9
-7.8
61.5
69.3
14.3
5.8
8.6
144.5
4.3
-.5
115.3
-4.5
47.5
72.3
25.4
19.6
5.8
154.5
.2
.9
126.7
22.6
38.4
65.7
26.8
16.1
10.8
148.7
9.8
6.1
110.7
10.1
42.1
58.5
22.1
11.6
10.5
154.8
5.1
7.7
119.8
11.4
44.5
63.8
22.3
14.2
8.1
121.8
10.5
30.2
77.2
-39.4
61.1
55.5
3.8
-6.1
10.0
222.5
101.2
11.0
75.7
17.8
29.5
28.5
14.5
10.6
3.9
*
146.9
121.0
143.9
171.4
197.0
223.2
171.6
173.1
218.6
209.8
236.6
16.3
28.7
22.2
20.8
25.4
27.5
22.6
22.2
27.9
26.5
28.5
12.3
87.9
3.6
80.0
21.5
72.2
-2.6
84.4
10.6
92.5
40.5
90.0
44.0
89.0
17.3
98.2
29.9
88.5
51.2
93.5
36.3
86.6
51.8
84.4
22.7
9.2
-1.2
10.4
4.1
-.7
4.8
10.7
—. 1
10.8
11.9
-1.0
12.9
4.0
-.9
4.9
3.7
-1.0
4.7
10.3
.4
9.9
2.1
-.6
2.6
5.9
-1.3
7.2
-.4
-.5
7.9
-1.5
9.4
5.0
-.3
5.3
13.1
-3.9
5.8
-1.7
9.6
1.1
12.3
-.4
7.4
-3.4
7.6
-3.8
11.8
-1.5
6.8
-4.7
8.1
-2.2
.4
-.8
14.7
-6.8
14.2
-9.2
Line 2 of p. A-44.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies,
and net issues of federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Sum of lines 39 and 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affor FRASER
filiates.
Digitized
1977
195.4
NOTES BY LINE NUMBER.
1.
2.
6.
11.
1976
-
1
29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
45. Mainly an offset to line 9.
46. Lines 32 plus 38, or line 12 less line 27 plus line 45.
47. L i n e 2 / l i n e l .
48. Line 19/line 12.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types quarterly,
and annually for flows and for 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.
A46
Domestic Nonfinancial Statistics • January 1980
2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1979
Measure
1 Industrial production 1
138.2
130.5
Market groupings
2 Products, total
3
Final, total
5
6
1977
1976
Equipment
Intermediate
Industry groupings
8 Manufacturing
Capacity utilization (percent)1 -2
9 Manufacturing
10 Industrial materials industries
1978
146.1
May
June
July
Aug.
Sept.
Oct.r
Nov.r
Dec.
152.4
152.6
152.8
151.6
152.4
152.2
151.8
152.2
r
r
129.7
127.6
137.1
114.6
137.2
131.7
137.9
135.9
145.3
123.0
145.1
138.6
144.8
142.2
149.1
132.8
154.1
148.3
150.3
147.8
152.0
141.9
159.5
155.7
150.2
147.6
151.8
141.9
159.5
156.5
149.7
147.1
150.8
142.1
159.4
157.6
148.7
145.6
148.2
141.8
160.6
156.0
149.9
147.2
149.7r
143.9 r
159.8'
156.3r
149.5
146.8
149.6
143.0
159.6
156.4
149.4
146.6
148.9
143.5
159.6
155.6
149.9
147.3
149.1
144.8
159.5
155.8
130.3
138.4
146.8
153.8
153.9
154.1
152.4
153.
153.2
152.6
153.1
79.5
81.1
81.9
82.7
84.4
85.6
86.3
87.4
86.2
87.5
86.1
87.9
84.9
86.8
85.3
86.7
84.9
86.6
84.4
85.9
84.4
85.7
11 Construction contracts 3
190.2
160.5
174.3
178.0
177.0
165.0
164.0
185.0
171.0
156.0
n.a.
12 Nonagricultural employment, t o t a l 4
13
Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
17 Personal income, totals
18
Wages and salary disbursements
19
Manufacturing....
20
Disposable personal income
120.7
100.2
97.7
95.3
131.9
220.5
208.2
177.0
176.8
125.3
104.5
101.2
98.8
136.7
244.4
230.2
198.3
194.8
131.4
109.8
105.3
102.8
143.2
274.1
258.1
222.4
217.7
135.9
114.3
108.3
105.6
147.7
301.9
283.2
244.8
239.1
136.2
114.4
108.3
105.5
148.1
304.0
285.5
245.9
136.3
114.7
108.4
105.5
148.2
308.5
287.7
247.6
136.4
114.1
107.8
104.5
148.7'
310.6r
289.2
246.3
244.8
136.5
114.1
107.7
104.5
1 4 8 . 8 rr
312.8
291.9r
248.7r
136.8
114.0
107.5
104.1
149.3
315.7
294.1
250.5
137.0
113.9
107.2
103.7
149.6
319.1
297.0
251.6
137.4
114.6
107.7
104.4
150.0
n.a.
n.a.
n.a.
21 Retail sales 6
207.4
229.8
253.8
274.8
274.4
276.5
285.8
293.9
288.9
291.1
294.3
170.5
170.3
181.5
180.6
195.4
194.6
214.1
212.7
216.6
213.7
218.9
216.2
221.1
217.3
223.4
220.4
225.4
223.7
227.5
225.9
n.a.
227.8
Prices7
23 Producer finished goods
6. Based on Bureau of Census data published in Survey of Current
Business (U.S. Department of Commerce).
7. D a t a without seasonal adjustment, as published in Monthly
Labor
Review (U.S. Department of Labor). Seasonally adjusted data for changes
in the price indexes may be obtained f r o m the Bureau of Labor Statistics,
U.S. Department of Labor.
1. The industrial production and capacity utilization series have been
revised. For a description of the changes see the August 1979 BULLETIN,
pp. 603-07.
2. Ratios of indexes of production to indexes of capacity. Based on data
f r o m Federal Reserve, McGraw-Hill Economics Department, and D e partment of Commerce.
3. Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, f r o m McGraw-Hill
Informations Systems Company, F. W. D o d g e 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). Series for disposable income is quarterly.
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 (U.S. Department of Commerce).
Figures for industrial production for the last two months are preliminary
and estimated, respectively.
2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1979
1979
1979
Series
Ql
Q2
Q3
Q4
Output (1967 = 100)
Ql
Q2
Q3
Q4
Capacity (percent of 1967 output)
Ql
Q2
Utilization rate (percent)
1 Manufacturing
153.4
153.1
153.3
153.0
176.9
178.2
179.5
180.8
86.7
85.9
85.4
84.6
2 Primary processing
3 Advanced processing
162.1
148.7
161.9
148.5
163.4
148.1'"
162.2
148.2
182.7
173.8
184.2
175.0
185.7
176.2
187.2
177.4
88.7
85.6
87.9
84.8
88.0
84.0
86.6
83.5
4 Materials
155.5
155.6
156.6r
155.9
176.8
178.1
179.8
181.2
88.0
87.3
87.1
86.1
158.4
124.7
172.2
179.1
118.2
136.9
222.7
127.9
157.7
124.3
173.4
181.3
119.6
140.7
224.8
128.1
158.7
126.9r
175.7
184.3 r
122.4
147.0
226.6
128.3'
156.1
181.5
139.8
191.9
199.6
136.9
148.7
247.4
146.7
183.0
140.3
193.7
201.5
137.3
149.9
250.6
147.5
184.6
140.8
195.7
203.8
137.7
151.0
253.8
148.3
186.0
87.3
89.1
89.7
89.7
86.3
92.0
90.0
87.2
86.2
88.5
89.5
89.9
87.1
93.9
89.7
86.9
86.0
90.2
89.8
90.5
88.9r
97.3
89.3
86.5'
5 Durable goods
6
Metal materials
7 Nondurable goods
8
Textile, paper, and chemical
9
Textile
10
Paper
11
Chemical
12 Energy
1. The capacity utilization series has been revised. For a description of
the changes, see the August 1979 BULLETIN, pp. 606-07.
177.7
186.8
128.8
197.6
205.7
149.1
83.9
89.9
90.8
86.4
Labor Market
A47
2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1979
Category
1976
1977
1978
June
July
Aug.
Sept.
Oct.'
Nov.'
Dec.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
2 Labor force 1(including Armed
Forces)
3
Civilian labor force
Employment
4
Nonagricultural industries 2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor
force)
8 Not in labor force
156,048
158,559
161,058
163,469
163,685
163,891
164,106
164,468
164,682
164,898
96,917
94,773
99,534
97,401
102,537
100,420
104,604
102,528
105,141
103,059
105,218 rr
103,128
105,586 rr
103,494
105,688
103,595
105,744
103,652
106,088
103,999
84,188
3,297
87,302
3,244
91,031
3,342
93,494
3,260
93,949
3,262
93,689 rr
3,315
94,140'
3,364'
94,180
3,294
94,223
3,385
94,553
3,359
7,288
6,855
6,047
5,774
5,848
6,124'
5,990 r
6,121
6,044
6,087
7.7
59,130
7.0
59,025
6.0
58,521
5.6
59,865
5.7
58,545
5.9'
58,673 r
5.8
58,519'
5.9
58,780
5.8
59,937
5.9
58,810
79,382
82,423
86,446
89,626
89,713
89,762
89,803
89,982
90,109
90,426
18,997
779
3,576
4,582
17,755
4,271
14,551
14,871
19,682
813
3,851
4,713
18,516
4,467
15,303
15,079
20,476
851
4,271
4,927
19,499
4,727
16,220
15,476
21,063
949
4,662
5,190
20,116
4,958
17,051
15,637
21,079
956
4,688
5,169
20,122
4,972
17,092
15,635
20,957
968
4,674
5,194
20,126
5,003
17,141
15,699
20,949
973
4,671
5,180
20,169
4,997
17,191
15,673
20,899
979
4,694
5,218
20,243
5,018
17,257
15,674
20,846
984
4,712
5,227
20,303
5,041
17,314
15,682
20,954
999
4,759
5,224
20,300
5,070
17,385
15,735
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3.
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities.
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and Earnings (U.S. Dept. 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 February 1977 benchmark. Based on data from Employment and Earnings (U.S. Dept. of Labor).
A48
Domestic Nonfinancial Statistics • January 1980
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value 1
Monthly data are seasonally adjusted.
Grouping
1967
proportion
1978
1978
average
Oct.
Nov.
1979
Dec.
Apr.
May
June
July
Aug
Sept.
r
Oct.
Nov. * Dec. e
Index (1967 = 100)
MAJOR MARKET
1 Total index
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
100.00 146.1 149.7 150.6 151.8 150.8 152.4 152.6 152.8 151.6 152.4 152.2 151.8 152.2
60.71 144.8
47.82 142.2
27.68 149.1
20.14 132.8
12.89 154.1
39.29 148.3
147.5
145.1
151.2
136.6
156.4
153.2
148.0
145.3
151.3
137.1
157.8
154.5
149.0
146.1
151.5
138.6
159.9
156.2
148.4
145.4
149.1
140.4
159.7
154.5
150.3
147.8
152.0
141.9
159.5
155.7
150.2
147.6
151.8
141.9
159.5
156.5
149.7 148.7 149.9
147.1 145.6 147.2
150.8 148.2 149.7
142.1 141.8 143.9
159.4 160.6 159.8
157.6 156.0 156.3
151.6
163.0
147.4
128.6
202.7
149.5
146.8
149.6
143.0
159.6
156.4
Consumer goods
8 Durable consumer goods
9
Automotive products
10
Autos and utility vehicles
11
Autos
12
Auto parts and allied goods
7.89
2.83
2.03
1.90
80
159.2
179.9
172.5
148.6
198.5
162.6 162.9 161.8
187.6 190.2 186.9
181.0 185.0 179.2
154.7 159.7 151.9
204.3 203.2 206.5
160.5
182.7
176.3
153.1
199.0
158.6
175.9
167.4
148.0
197.5
157.2 147.5 151.8 152.4
170.3 147.3 157.6 159.5
155.6 125.1 139.7 142.4
141.8 118.5 128.0 129.0
207.8 203.7 203.0 203.1
13
14
15
16
17
5.06
1.40
1.33
1.07
2.59
147.7
133.3
135.4
164.2
148.6
148.6 147.6 147.7 145.2 148.1
132.3 129.1 129.8 115.6 128.4
132.9 130.1 130.6 116.5 130.2
165.3 164.2 164.3 170.7 170.2
150.5 150.7 150.6 150.8 149.6
148.8
129.3
131.2
170.6
150.5
149.8
129.7
131.6
171.9
151.6
19.79
4.29
15.50
8.33
145.1
131.1
148.9
140.6
146.6
132.6
150.5
141.4
7.17
2.63
1.92
2.62
1.45
158.5
192.7
118.4
153.6
162.1
161.1 161.0
198.3 195.9
118.0 119.0
155.3 156.8
163.0 162.7
161.2
196.5
118.0
157.6
162.5
12.63
6.77
1.44
3.85
1.47
160.3
145.8
207.3
121.2
149.4
164.8 165.0
148.1 147.6
208.8 207.8
123.4 123.3
153.0 152.1
166.8 168.7 171.4 171.5
148.4 150.4 151.8 152.0
206.3 204.2 203.7 205.3
124.5 128.0 130.1 130.1
154.2 156.0 157.7 156.8
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
18 Nondurable consumer goods
19
Clothing
20
Consumer staples
21
Consumer foods and tobacco
22
23
24
25
26
Nonfood staples
Consumer chemical products
Consumer paper products
Consumer energy products
Residential utilities
Equipment
27 Business
28
Industrial
29
Building and mining
30
Manufacturing
31
Power
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
5.86
3.26
1.93
67
36 Defense and space
7.51
Intermediate products
37 Construction supplies
38 Business supplies
39
Commercial energy products
6.42
6.47
1.14
146.7 147.3 148.0
132.4 132.2 127.7
150.6 151.5 153.7
141.7 143.2 145.2
177.2 184.1 185.0
212.0 218.2 217.8
133.8 143.3 145.7
132.8 135.5 138.5
188.0
218.7
151.0
144.6
89.3
91.4
86.5
151.7 154.5
156.5 158.4
168.2 170.0
148.7
128.6
154.2
145.7
163.5 164.1 163.5
201.6 205.2 205.9
120.9 121.3 121.1
156.4 154.3 152.0
169.1 167.8 162.3
189.9 193.9 194.0
223.0 224.9 226.4
148.8 156.7 155.3
147.7 150.8 148.1
149.3 147.7
151.6 146.0
131.1 123.1
118.3 110.2
203.5 203.9
148.1
126.5
129.3
169.8
150.8
148.6
126.9
148.9 148.4
129.0 127.7
154.3 154.2
146.5 146.5
148.8
149.7
154.4
146.4
155.3
163.1 163.7
206.4 208.3
121.6 121.2
150.2 150.1
162.7
164.6
162.4 164.6 163.5
206.1 209.2 207.2
119.9 121.2 121.1
149.8 151.6 150.8
158.5 163.5 162.2
171.4
151.3
207.4
130.3
151.0
149.9
147.3
149.1
144.8
159.5
155.8
148.4
126.5
128.6
169.2
151.7
147.7 148.5
121.2 129.6
124.1 132.2
171.7 169.7
152.1 150.0
149.1 148.2 148.5
130.7 126.9 128.0
154.2 154.1 154.2
146.2 147.0 145.3
149.4
146.6
148.9
143.5
159.6
155.6
151.6
171.5 173.6 171.7 172.1 173.8
151.7 153.5 151.0 152.5 154.5
210.6 212.0 200.6 204.2 210.0
131.1 130.4 130.3 131.3 132.1
147.7 156.3 156.3 157.4 158.7
194.6 194.4 196.8 195.6 194.7 196.0
227.0 230.5 231.4 233.7 233.4 235.0
155.2 149.4 156.3 154.8 150.8 151.9
151.0 148.3 145.3 128.0 132.6
92.8
92.0
94.0
94.7
95.5
96.2
156.1 158.3 156.0 156.4 156.3 156.4
159.6 161.5 163.2 162.5 162.6 162.4
171.3 173.0 174.6 172.6 169.4 167.8
157.3
163.8
170.7
156.3
163.2
169.8
156.5
162.7
172.1
156.3
162.9
172.7
155.6
90.3
92.9
92.5
92.3
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
20.35
4.58
5.44
10.34
5.57
149.0
140.8
166.5
143.3
121.2
155.5 157.0
147.0 147.2
172.9 176.7
150.1 151.0
129.3 130.2
159.5
148.6
179.2
154.0
132.0
155.7
136.9
187.0
147.7
123.2
157.9
142.5
188.0
149.0
122.9
159.5
141.8
191.0
150.8
126.1
160.7 157.7 157.6 157.4 155.5
138.5 129.7 132.2 130.0 126.7
192.1 190.7 192.0 192.7 194.2
154.0 152.7 150.7 149.9 147.9
130.5 127.7 124.8 121.6 120.1
155.3
124.4
195.4
147.8
45 Nondurable goods materials
46
Textile, paper, and chemical materials...
47
Textile materials
48
Paper materials
49
Chemical materials
50
Containers, nondurable
51
Nondurable materials n.e.c
10.47
7.62
1.85
1.62
4.15
1.70
1.14
165.6
171.8
116.9
137.0
210.0
159.8
132.7
168.8 170.2 171.9
175.3 177.1 178.9
119.7 118.8 120.1
137.3 137.9 139.1
214.9 218.4 220.8
163.9 163.1 164.8
133.2 135.2 135.7
173.0
180.7
117.0
140.8
224.7
162.0
138.2
173.8
181.5
118.8
140.1
225.7
163.3
138.4
173.4
181.7
122.9
141.1
223.9
159.2
139.0
174.6 175.8 176.7 177.2
182.8 184.3 185.9 186.1
122.2 120.6 124.4 124.5
146.2 146.7 148.1 148.6
224.1 227.5 228.2 228.4
163.1 162.9 161.8 165.7
137.5 138.2 136.9 134.1
178.7
188.1
52 Energy materials
53
Primary energy
54
Converted fuel materials
Supplementary groups
55 Home goods and clothing
56 Energy, total
57
Products
58
Materials
For notes see opposite page.
177.2
186.2
123.3
149.1
228.9
165.1
134.6
8.48 125.3 128.6 129.3 128.8 128.4 127.7 128.3 129.1 127.7 128.1 128.6 129.0 128.7
4.65 112.6 116.7 117.0 116.1 113.0 111.7 112.4 112.8 112.0 113.6 114.7 115.3
3.82 140.8 143.0 144.4 144.4 147.1 147.2 147.6 148.8 146.9 145.7 145.5 145.8
9.35
12.23
3.76
8.48
140.0
135.4
158.0
125.3
141.2 140.6
138.2 139.1
159.8 161.2
128.6 129.3
140.6
139.1
162.2
128.8
137.2 139.1 140.5 139.3 138.6 139.5 138.9 139.1 139.8
138.7 137.6 137.2 137.1 136.8 136.8 137.3 137.6 137.5
161.9 159.9 157.3 155.2 157.4 156.5 156.8 157.0
128.4 127.7 128.3 129.1 127.7 128.1 128.6 129.0 128.7
Output
A49
2.13 Continued
Grouping
SIC
code
1967
proportion
1979
1978
1978
average^
Oct.
Nov.
Dec.
Apr.
May
June
July
Aug.
Sept. r
Oct.
Nov. p Dec.
Index (1967 = 100)
MAJOR INDUSTRY
1 Mining and utilities.
2
Mining
3
Utilities
4
Electric
5 Manufacturing
6
Nondurable
7
Durable
12.05
6.36
5.69
3.88
87.95
35.97
51.98
141.7
124.0
161.4
182.2
146.8
156.9
139.7
144.6 140.9
127.9 129.4
163.2 153.8
184.7 170.9
150.7 151.9
159.5 160.8
144.6 145.6
145.0
127.4
164.7
186.7
152.9
161.7
146.8
143.8
122.7
167.4
189.0
151.6
161.7
144.6
143.4
122.8
166.5
186.4
153.8
162.8
147.6
143.0
123.9
164.2
182.4
153.9
163.0
147.6
143.7
124.7
164.8
182.2
154.1
164.1
147.2
149.0
126.9
173.7
200.7
152.8
168.8
141.7
144.5 145.3
125.8 127.8
165.3 164.8
184.1 183.6
153.5 153.2
164.6 163.9
145.9 145.8
.51
.69
4.40
.75
121.0
114.7
124.6
131.2
122.1 120.9
141.9 146.1
125.5 126.1
133.6 139.3
123.8
144.7
123.8
134.8
128.9
130.1
118.6
135.3
123.
133.4
118.6
137.8
123.2
137.5
119.6
137.3
128.6
137.1
120.4
136.4
132.8
144.1
121.2
140.8
122.
142.6
121.6
137.5
124.0
144.7
123.8
138.2
142.7
118.3
137.5
134.2
144.8
143.2 145.7 144.7 147.0
119.0 123.1 119.1 120.0
139.6 140.2 141.7 141.2
136.
131.5 136.5 130.8
145.8 145.7 148.5 148.7
149.2
120.2
141.5
128.2
147.9
149.5
118.3
114.6
132.0
148.0
149.4
118.9
143.0
129.7
154.0
155.0 148.8
112.3 116.4
148.3 146.9
134.5 131.2
154.
155.3
148.6
115.6
146.1
128.5
154.1
132.6 135.2 134.4
202.7 203.9 207.2
147.6 153.5 151.3
262.3 265.5 263.3
72.4 72.9
73.8
136.8 136.9 135.6
209.7 207.8 210.5
142.4 143.9 143.9
270.0 270.0 278.0
72.3 70.
69.7
8
9
10
11
Mining
Metal
Coal
Oil and gas extraction.. .
Stone and earth minerals.
12
13
14
15
16
Nondurable manufacturers
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
8.75
.67
2.68
3.31
3.21
17
18
19
20
21
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products.
Leather and products
4.72 131.5
7.74 197.4
1.79 145.2
2.24 253.6
.86 73.8
22
23
24
25
Durable manufactures
Ordnance, private and government.
Lumber and products
Furniture and fixtures
Clay, glass, stone products
19,91
24
25
32
3.64 73.7 74.2
1.64 136.3 138.1
1.37 155.8 159.9
2.74 157.2 161.3
74.6 75
72.6
75.3 75.1 74.6 74.8 75.3 76.3
137.2 144.0 137.2 136.1 136.8 135.2 140.6 138.6 138.7
161.0 157.6 159.4 159.6 159.6 159.5 162.4 162.0 162.7
164.7 164.0 161.2 163.8 162.7 163.3 168.1 160.6 162.3
26
27
28
29
30
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery. . .
Electrical machinery
33
331,2
34
35
36
6.57 119.9 129.4
4.21 113.2 123.8
5.93 141.6 144.9
9.15 153.6 157.5
8.05 159.4 164.2
123.3
115.9
147.0
158.0
167.4
132.1
125.3
147.1
158.1
167.7
9.27
4.50
144.2
185.1
142.9 131.6 141.9 139.4 135.5 113.2
182.1 156.0 176.3 169.6 160.2 116.7
31 Transportation equipment
32
Motor vehicles and parts
33
Aerospace and miscellaneous
transportation equipment.
34 Instruments
35 Miscellaneous manufactures
10
11,12
13
14
37
371
372-9
38
39
132.5 139.7
169.9 178.9
4.77 97.2 102.8 105.6
2.11 167.1 170.3 174.0
1.51 151.0 151.
152.5
135.7
204.7
145.4
265.5
69.6
121.7
115.8
148.8
161.8
170.6
121.0
114.3
150.3
164.3
174.7
124.3
118.1
149.3
164.5
175.1
127.1
119.0
149.3
165.3
174.4
149.7 137.1 136.9
215.6 212.0 211.0
148.7 143.1 141.9
268.5 272.9 274.2
70.7 70.8 70.
115.7 121.7
107.2 115.0
146.4 146.5
165.9 165.1
170.0 176.7
118.7
109.4
147.5
162.3
177.0
131.7
150.6
133.5
150.6
106.0 108.6 109.6 111.0 112.2 109.9 113.9
173.1 176.3 174.7 175.9 174.0 175.0 172.9
151.7 152.3 150.7 152.7 155.7 161.2 153.6
117.3
175.0
154.5
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
610.2
622.1
37 Final
38
Consumer goods.
39
Equipment
40 Intermediate
390.92
277.52
113.42
116.62
471.0
326.6
144.4
139.2
481.0 482.8 486.6 476.4 488.2 485.1 479.6 468.8 478.8 477.9 473.8 474.0
331.8 332.8 334.1 323.9 331.5 329.8 326.0 319.2 323.6 324.5 322.0 321.5
149.2 150.0 152.4 152.5 156.7 155.4 153.6 149.6 155.2 153.4 151.8 152.5
141.1 142.3 144.5 144.4 144.2 143.6 143.2 144.2 143.8 143.8 143.5 142.9
625.0
1. The industrial production series has been revised. For a description
of the changes, see "Revision of Industrial Production Index" in the
August 1979 BULLETIN, pp. 603-05.
2. 1972 dollars.
631.1
620.8
632.3
628.7
622.7
613.0
622.6
621.7
617.4
616.9
NOTE. Published groupings include some series and subtotals not
shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), December 1977.
A50
Domestic Nonfinancial Statistics • January 1980
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1979
Item
1976
1977
1978
May
June
July
Aug.
Sept. '
Oct.'
Nov.p
Private residential real estate activity
(thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,296
894
402
1,677
1,125'
551
1,801
1,183'
618'
1,618
1,047
571
1,639
1,012
627
1,528
1,001
527
1,654
1,030
624
1,775
1,015
760
1,542
927
615
1,267
751
516
4 Started
1,537'
1,162'
375'
1,987'
1,451
536'
2,020'
1,433
587'
1,835
1,226
609
1,923
1,288
635
1,786
1,220
568
1,793
1,239
554
1,921
1,254
667
1,762
1,161
601
1,518
966
552
922'
563'
359'
1,208'
730'
478'
1,310'
765'
546'
1,244
730
514
1,247
723
524
1,237
715
522
1,232'
714'
518'
1,228
718
510
1,223
712
511
n.a.
n.a.
n.a.
1,377'
1,037'
343'
1,656'
1,258'
399'
1,868'
1,369'
498'
2,016
1,344
672
1,866
1,345
521
1,745
1,192
553
1,739'
1,199'
540'
1,957
1,199
758
1,819
1,242
577
n.a.
n.a.
n.a.
246
277
276
271
279
282
277
268
293
n.a.
647'
358'
820'
408'
818'
419'
707
431'
689
418
778
416
746'
416
723
413
698
409
604
399
44.3'
41.6
49.0'
48.2
55.8'
n.a.
62.8'
n.a.
64.2
n.a.
63.8
n.a.
64.0'
n.a.
66.1
n.a.
62.4
n.a.
63.8
n.a.
48.1
54.4
62.7
71.8
74.3
71.9
74.0'
77.1
71.9
75.2
3,001'
3,572
3,905
3,860
3,560
3,770
3,850
4,010
3,990
3,560
48.7
55.1
55.9
64.2
56.8
66.1
57.9
66.7
57.7
66.3
57.3
66.1
56.3
65.2
55.6
64.6
6
2-or-more-family
7 Under construction, end of p e r i o d 1 . . . .
8
1-family
9
2-or-more-family
10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped
14
15
16
17
18
Merchant builder activity in 1-family
units
Number sold
Number for sale, end of period 1
Price (ithousands of dollars)1
Median
Units sold
Units for sale
Average
Units sold
EXISTING UNITS ( 1 - f a m i l y )
19 Number sold
Price of units sold (thous. of dollars)2
20 Median
38.1
42.2
42.8'
47.1'
Value of new construction 3
(millions of dollars)
CONSTRUCTION
22 Total put in place
151,053
173,998
206,223
223,377'
224,331'
231,068'
230,303'
232,559
238,454
235,301
23 Private
24
Residential..
111,931
60,519
51,412
135,824
80,957
54,867
160,403
93,425
66,978
174,974'
95,160'
79,814'
178,348'
96,937'
81,411'
180,103'
97,022'
83,081'
180,635'
97,537'
83,098'
181,626
98,996
82,630
185,574
99,248
86,326
184,074
98,346
85,728
26
27
28
29
Buildings
Industrial
Commercial
Other
Public utilities and other
30 Public
31
Military
32
Highway
33
Conservation and development
Other 4
34
7,182
12,757
6,155
25,318'
7,713
14,789
6,200
26,165'
10,993
18,568
6,739
30,678'
14,504
23,601
7,141
34,568'
14,697
24,785
7,306
34,623'
15,547
24,785
7,427
35,322'
13,751
25,818
7,532
35,997'
13,698
25,693
7,331
35,908
15,019
26,663
7,851
36,793
14,658
26,632
7,832
36,606
39,120
1,630
9,406
3,741
24,343
38,172
1,428
8,984
3,862
23,898
45,821
1,498
10,286
4,436
29,601
48,402'
1,531'
11,674
5,383
29,814'
45,983'
1,787
10,315'
3,571'
30,310'
50,965'
1,500'
11,166
5,371
32,928'
49,669'
1,859'
10,802
5,273
31,735'
50,932
1,658
n.a.
n.a.
n.a.
52,880
1,855
n.a.
n.a.
n.a.
51,228
1,665
n.a.
n.a.
n.a.
1. N o t at annual rates.
2. N o t seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to 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.
4. Beginning January 1977 Highway imputations are included in Other.
NOTE. Census Bureau estimates for all series except (a) mobile homes,
which are private, domestic shipments as reported by the Manufactured
Housing Institute and seasonally adjusted by the Census Bureau, and
(b) sales and prices of existing units, which are published by the National Association of Realtors. All back and current figures are available f r o m originating agency. Permit authorizations are those reported
to the Census Bureau f r o m 14,000 jurisdictions through 1977, and 16,000
jurisdictions beginning with 1978.
Prices
A51
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
Item
1979
1978
1978
Nov.
1 month to
3 months (at annual rate) to
1979
Nov.
1979
Dec.
Mar.
June
Sept.
July
Aug.
Sept.
Oct.
Nov.
Index
level
Nov.
1979
(1967
= 100)1
CONSUMER PRICES 2
1 All items
2 Commodities
3
Food
4
Commodities less food
5
Durable
8
9
Rent
Services less rent
Other groupings
10 All items less food
11 All items less food and energy
12 Homeownership
9.0
12.6
8.5
13.0
13.4
13.2
1.0
1.1
1.1
1.0
1.0
227.5
8.4
11.3
7.3
8.8
5.3
9.6
7.3
9.9
12.7
9.8
13.9
10.2
18.9
12.6
8.1
13.3
9.6
10.2
9.6
11.3
6.7
7.2
7.7
7.1
14.5
17.7
12.9
10.0
16.5
10.6
3.6
11.7
13.3
7.5
15.8
9.1
25.8
13.8
8.7
14.5
12.3
4.2
16.2
8.7
25.7
14.3
10.7
15.1
.9
.1
1.2
.7
2.1
1.1
.8
1.2
.9
0
1.3
.7
1.9
1.2
.9
1.3
1.1
.9
1.2
.7
1.8
1.1
.8
1.1
.8
.8
.8
.7
.7
1.2
1.3
1.2
.9
.5
1.1
1.5
.6
1.1
.4
1.2
217.4
239.1
205.4
198.4
212.9
246.2
182.1
258.2
8.4
8.6
12.9
13.3
10.7
18.3
8.5
7.7
10.9
12.0
9.3
16.7
14.9
11.2
18.0
15.4
11.5
19.3
1.2
.7
1.4
1.3
1.0
1.7
1.2
1.0
1.4
1.0
1.0
1.9
1.1
1.2
2.1
224.1
216.1
282.4
8.5
8.8
11.1
7.5
8.0
10.2
8.2
12.8
14.5
8.9
17.7
8.6
15.8
15.7
10.5
11.1
15.3
8.8
8.8
13.0
11.2
14.3
16.0
21.0
13.4
10.3
17.9
14.0
7.5
6.7
-11.3
17.9
9.8
12.0
15.3
15.0
19.6
13.1
23.2
4.3
18.5
18.8
1.1'
1.2 '
.2'
1 . 8 'r
.8
1 . 8 'r
1. 6
1.0'
1.4'
1.1'
1.6'
0.0'
.9'
1.2'
1.4
1.8
1.8
1.9
.3
1.6
1.5
1.0
1.0
-.1
1.6
1.2
1.7
1.9
1.3
1.6
2.6
1.0
.5
1.1
.9
225.9
226.6
230.5
222.5
223.8
262.9
257.8
16.4
19.1
24.9
11.5
19.8
21.2
29.2
31.0
22.2
-7.1
21.0
13.9
1.2'
2.1
.7'
-.2
2.9
1.5
2.8
.5
2.0
2.0
374.8
246.4
PRODUCER PRICES
14
Consumer
15
Foods
16
Excluding foods
17
Capital equipment
18 Materials
19
Intermediate 3
Crude
20
Nonfood
21
Food
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.
3. Excludes intermediate materials for food manufacturing and manufactured animal feeds.
SOURCE. Bureau of Labor Statistics.
A52
Domestic Nonfinancial Statistics • January 1980
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
Account
1976
1978
1977
1979
1978
Q2
Q3
Q4
Ql
Q2
Q3r
GROSS NATIONAL PRODUCT
1,702.2
1,899.5
2,127.6
2,104.2
2,159.6
2,235.2
2,292.1
2,329.8
2,396.5
1,089.9
157.4
443.9
488.5
1,210.0
178.8
481.3
549.8
1,350.8
200.3
530.6
619.8
1,331.2
200.3
521.8
609.1
1,369.3
203.5
536.7
629.1
1,415.4
212.1
558.1
645.1
1,454.2
213.8
571.1
669.3
1,475.9
208.7
581.2
686.0
1,528.6
213.4
604.7
710.6
243.0
233.0
164.9
57.3
107.6
68.1
65.7
303.3
281.3
189.4
62.6
126.8
91.9
88.8
351.5
329.1
221.1
76.5
144.6
108.0
104.4
352.3
326.5
218.8
75.2
143.6
107.7
104.3
356.2
336.1
225.9
79.7
146.3
110.2
106.4
370.5
349.8
236.1
84.4
151.8
113.7
110.0
373.8
354.6
243.4
84.9
158.5
111.2
107.8
395.4
361.9
249.1
90.5
158.6
112.9
109.1
392.3
377.8
261.8
95.0
166.7
116.0
112.0
10.0
12.1
21.9
20.7
22.3
21.3
25.8
25.3
20.0
18.5
20.6
19.3
19.1
18.8
33.4
32.6
14.5
12.6
15 Net exports of goods and services
16
Exports
17
Imports
8.0
163.3
155.4
-9.9
175.9
185.8
-10.3
207.2
217.5
-7.6
205.7
213.3
-6.8
213.8
220.6
-4.5
224.9
229.4
4.0
238.5
234.4
-8.1
243.7
251.9
-2.3
267.3
269.5
18 Government purchases of goods and services
19
Federal
20
State and local
361.3
129.7
231.6
396.2
144.4
251.8
435.6
152.6
283.0
428.3
148.2
280.1
440.9
152.3
288.6
453.8
159.0
294.8
460.1
163.6
296.5
466.6
161.7
304.9
477.8
162.9
314.9
1,692.1
762.7
305.9
456.8
776.7
162.7
1,877.6
842.2
345.9
496.3
866.4
190.9
2,105.2
930.0
380.4
549.6
969.3
228.2
2,078.4
922.5
378.0
544.5
956.2
225.6
2,139.5
940.9
382.6
558.3
981.7
237.0
2,214.5
983.8
402.3
581.6
1,005.3
246.0
2,272.9
1,011.8
425.5
586.2
1,041.4
238.9
2,296.4
1,018.1
422.4
595.7
1,064.2
247.5
2,381.9
1,036.0
424.4
611.6
1,100.6
259.8
10.0
5.3
4.7
21.9
11.9
10.0
22.3
13.9
8.4
25.8
13.1
12.7
20.0
10.3
9.7
20.6
13.4
7.2
19.1
18.4
.7
33.4
24.3
9.1
14.5
7.3
7.2
1,273.0
1,340.5
1,399.2
1,395.2
1,407.3
1,426.6
1,430.6
1,422.3
1,433.3
31 Total
1,359.8
1,525.8
1,724.3
1,703.9
1,752.5
1,820.0
1,869.0
1,897.9
1,941.9
32 Compensation of employees
33
Wages and salaries
34
Government and government enterprises
35
Other
36
Supplement to wages and salaries
37
Employer contributions for social i n s u r a n c e . . .
38
Other labor income
1,037.8
890.0
188.0
702.0
147.8
70.4
77.4
1,156.9
984.0
201.3
782.7
172.9
81.2
91.8
1,304.5
1,103.5
218.0
885.5
201.0
94.6
106.5
1,288.2
1,090.0
215.3
874.6
198.3
93.6
104.7
1,321.1
1,117.4
219.2
898.1
203.7
95.5
108.2
1,364.8
1,154.7
225.1
929.6
210.1
98.2
111.9
1,411.2
1,189.4
228.1
961.3
221.8
105.8
116.0
1,439.7
1,211.5
231.2
980.3
228.2
107.9
120.3
1,472.9
1,238.0
234.4
1,003.6
234.8
109.9
124.9
89.3
71.0
18.3
100.2
80.5
19.6
116.8
89.1
27.7
115.0
87.3
27.7
117.4
91.3
26.1
125.7
94.4
31.3
129.0
94.8
34.2
129.3
95.5
33.7
130.3
99.4
30.9
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7
Fixed investment
9
10
11
12
13
14
Structures
Producers' durable equipment
Residential structures
Nonfarm
Change in business inventories
Nonfarm
By major type of product
21 Final sales, total
22
Goods
23
Durable
24
Nondurable
25
Services
26
Structures
27 Change in business inventories
28
Durable goods
29
Nondurable goods
30
MEMO: Total G N P in 1972 dollars
NATIONAL INCOME
39 Proprietors' income 1
40
Business
and professional 1
41
Farm1
42 Rental income of persons 2
43 Corporate profits 1
44
Profits before tax 3
45
Inventory valuation adjustment
46
Capital consumption adjustment
47 N e t interest
22.1
24.7
25.9
24.4
26.8
27.1
27.3
26.8
26.6
126.8
156.0
-14.6
-14.5
150.0
177.1
-15.2
-12.0
167.7
206.0
-25.2
-13.1
169.4
207.2
-25.1
-12.6
175.2
212.0
-23.0
-13.8
184.8
227.4
-28.8
-13.8
178.9
233.3
-39.9
-14.5
176.6
227.9
-36.6
-14.7
180.8
242.3
-44.0
-17.6
83.8
94.0
109.5
106.8
111.9
117.6
122.6
125.6
131.5
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.
3. For after-tax profits, dividends, and the like, see table 1.50.
SOURCE. Survey of Current Business (Department of Commerce).
National Income Accounts
A53
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
Account
1976
1977
1979
1978
1978
Q2
Q3
Q4
Ql
Q2
Q3r
PERSONAL INCOME AND SAVING
1 Total personal income
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
8
9
10
11
12
13
14
15
16
Other labor income
Proprietors' income 1
Business
and professional 1
Farm1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health
insurance benefits
17
LESS: Personal contributions for social
insurance
18 EQUALS: Personal income
1,381.6
1,531.6
1,717.4
1,689.3
1,742.5
1,803.1
1,852.6
1,892.5
1,946.6
890.0
307.2
237.4
216.3
178.5
188.0
984.0
343.1
266.0
239.1
200.5
201.3
1,103.3
387.4
298.3
269.4
228.7
217.8
1,090.0
383.4
294.1
265.9
225.4
215.3
1,116.8
393.7
300.8
272.5
231.9
218.7
1,154.3
408.6
312.7
281.6
239.4
224.7
1,189.3
423.0
324.8
291.1
247.2
228.0
1,212.4
431.7
328.5
295.8
252.8
232.1
1,238.1
438.3
331.9
304.0
261.3
234.5
77.4
89.3
71.0
18.3
22.1
37.5
127.0
193.8
91.8
100.2
80.5
19.6
24.7
42.1
141.7
208.4
106.5
116.8
89.1
27.7
25.9
47.2
163.3
224.1
104.7
115.0
87.3
27.7
24.4
46.0
159.4
218.8
108.2
117.4
91.3
26.1
26.8
47.8
167.2
228.3
111.9
125.7
94.4
31.3
27.1
49.7
174.3
231.8
116.0
129.0
94.8
34.2
27.3
51.5
181.0
237.3
120.3
129.3
95.5
33.7
26.8
52.3
187.6
243.6
124.9
130.3
99.4
30.9
26.6
52.8
194.4
260.8
92.9
105.0
116.3
112.4
119.8
121.5
123.8
127.1
138.7
55.6
61.3
69.6
69.0
70.2
71.8
78.7
79.8
81.2
1,381.6
1,531.6
1,717.4
1,689.3
1,742.5
1,803.1
1,852.6
1,892.5
1,946.6
197.1
226.4
259.0
252.1
266.0
278.2
280.4
290.7
306.6
20 EQUALS: Disposable personal income
1,184.5
1,305.1
1,458.4
1,437.3
1,476.5
1,524.8
1,572.2
1,601.7
1,640.0
21
LESS: Personal outlays
1,115.9
1,240.2
1,386.4
1,366.1
1,405.6
1,453.4
1,493.0
1,515.8
1,569.7
22 EQUALS: Personal saving
68.6
65.0
72.0
71.2
70.9
71.5
79.2
85.9
70.3
5,916
3,813
4,144
5.8
6,181
3,974
4,285
5.0
6,402
4,121
4,449
4.9
6,392
4,099
4,426
5.0
6,433
4,138
4,462
4.8
6,506
4,197
4,522
4.7
6,514
4,197
4,536
5.0
6,459
4,155
4,510
5.4
6,494
4,195
4,501
4.3
271.9
295.6
324.9
324.2
330.4
336.1
345.2
360.5
352.1
68.6
25.5
-14.6
65.0
35.2
-15.2
72.0
36.0
-25.2
71.2
38.7
-25.1
70.9
40.0
-23.0
71.5
40.1
-28.8
79.2
36.1
-39.9
85.9
35.6
-36.6
70.3
34.0
-44.0
111.6
66.1
121.3
74.1
132.9
84.0
131.7
82.7
134.3
85.2
136.8
87.7
139.9
89.9
145.1
93.9
150.4
97.5
-35.7
-53.6
17.9
-19.5
-46.3
26.8
-.3
-27.7
27.4
5.0
-24.6
29.6
2.3
-20.4
22.7
10.8
-16.3
27.1
15.8
-11.7
27.6
12.7
-7.0
19.7
14.0
-11.3
25.3
19
LESS: Personal tax and nontax payments
MEMO:
Per capita (1972 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
28 Personal saving
29 Undistributed corporate profits 1
30 Corporate inventory valuation adjustment
Capital consumption allowances
31 Corporate
32 Noncorporate
33 Wage accruals less disbursements
34 Government surplus, or deficit ( —), national
income and product accounts
Federal
State and local
35
36
39
40
Gross private domestic
Net foreign
41 Statistical discrepancy
1.1
1.1
283.6
303.3
-19.6
327.9
351.5
-23.5
331.5
352.3
-20.8
336.5
356.2
-19.6
351.0
370.5
-19.4
362.8
373.8
-11.0
373.1
395.4
-22.3
375.6
392.3
-16.7
6.1
7.5
3.3
2.3
3.9
4.1
.6
-1.3
8.3
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
J J
242.3
243.0
-.1
37 Capital grants received by the United States, net
SOURCE. Survey of Current Business (Department of Commerce).
A 54
International Statistics • January 1980
3.10 U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as n o t e d . 1
1978
Item credits or debits
1976
1977
10
11
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
13 Change in U.S. official reserve assets (increase, — ) . . .
14
Gold
15
Special drawing rights (SDRs)
16
Reserve position in International Monetary F u n d .
17
Foreign currencies
3
18 Change in U.S. private assets abroad (increase, — ) .
19
Bank-reported claims
20
Nonbank-reported claims
21
U.S. purchase of foreign securities, net
22
U.S. direct investments abroad, n e t 3
85'
1,120'
415
1,731
-1,056
-182
762
-3,080
-9,306 -30,873 -33,770' - 7 , 9 4 9 ' - 5 , 9 7 1 ' -6,115
114,745
120,816 1 4 2 , 0 5 2 '
36,532'
39,412'
41,348
-124,051 - 1 5 1 , 6 8 9 - 1 7 5 , 8 2 2 ' - 4 4 , 4 8 1 ' - 4 5 , 3 8 3 ' - 4 7 , 4 6 3
674
1,679
492
247
-239
34
15,975
17,989
21,645
4,952
6,599
6,864
2,260
1,783
3,241
819
1,010
954
9,603
-9,423 -8,392' -1,931'
1,399'
1,737
-7,716
42,792
-50,508
-217
7,465
775
307
-7,282
47,337
-54,619
-384
8,794
1,008
2,136
-517
-805
-466
-897
-504
-870
-1,851
-3,146
12 Change in U.S. government assets, other than official reserve
assets, net (increase, — )
Ql
Q3
4,605
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, n e t 3
Other service transactions, net
MEMO: Balance o n goods and services3.4.
Q4
Q2'
Q3
1 Balance on current account.
2
N o t seasonally a d j u s t e d . .
1979
1978
-4,214
-14,092 -13,478'
-1,934
-3,152
-463
-770
-524
-790
-4,656
-1,390
-994
-1,094
-1,001
-756
732
-65
1,249
4,231
-4,683
115
0
-43
195
-37
182
-65
1,412
3,275
-4,440
-3,585
0
-1,142
-86
-2,357
343
0
6
-78
415
2,779
0
0
-52
2,831
-31,725 -57,033
-11,427 -33,023
-1,940 -3,853
-5,460 -3,487
-12,898 -16,670
-8,774
-5,488
-29
-475
-2,782
-29,442
-21,980
-1,898
-918
-4,646
-2,958
6,572
-2,719
-1,056
-5,755
-15,507
-8,266
668
-629
-7,280
-25,348
-15,956
n.a.
-2,111
-7,281
-1,895
-2,775
-3,693
-2,558
0
-78
-2,212
-268
-44,498
-21,368
-2,296
-8,885
-11,949
-3,164'
-5,892'
-375
-118
-121
-294
158
23 Change in foreign official assets in the United States
(increase, + )
24
U.S. Treasury securities
25
Other U.S. government obligations
Other U.S. government liabilities 5
26
Other U.S. liabilities reported by U.S. banks
27
Other foreign official assets 6
28
17,573
9,319
573
4,507
969
2,205
36,656
30,230
2,308
1,240
773
2,105
33,758
23,542
656
2,754
5,411
1,395
4,641
3,029
443
122
963
84
18,764
13,422
-115
2,045
3,156
256
-9,391
-8,872
-5
-164
-563
213
-10,043
-12,859
94
257
2,321
145
5,562
5,030
335
191
-100
106
29 Change in foreign private assets in the United States
(increase, -f-) 3
30
U.S. bank-reported liabilities
31
U.S. nonbank-reported liabilities
32
Foreign private purchases of U. S. Treasury securities, net.
33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in the United States, net 3
18,826
10,990
-578
2,783
1,284
4,347
14,167
6,719
473
534
2,713
3,728
29,956
16,975
1,640
2,180
2,867
6,294
10,717
7,958
1,004
-1,053
528
2,280
10,475
7,556
-177
1,549
540
1,008
10,868
7,157
-651
2,583
790
989
16,100
12,067
1,086
-239
1,161
2,025
17,497
13,009
n.a.
1,579
591
2,317
10,265
0
0
-937
0
10,722'
0
-2,145'
-2,716
0
930'
1,301
1,139
4,606
985
0
11,163
737
0
-495
-3,756
10,265
-937
10,722'
571'
-371'
3,621
10,426
3,261
-2,558
13,066
-375
35,416
732
31,004
115
4,519
182
16,719
-3,585
-9,227
343
-10,299
2,779
5,371
9,581
6,351
-727
-1,794
1,803
-1,916
151
1,488
373
204
259
69
63
31
48
85
35 Allocation of SDRs
36 Discrepancy
37
Owing to seasonal adjustments
38
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO:
Changes in official assets
39
U.S. official reserve assets (increase, —)
40
Foreign official assets in the United States (increase, + )
41 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 25 above). .
42 Transfers under military grant programs (excluded f r o m lines
4, 6, and 11 above)
1. Seasonal factors are no longer calculated for lines 13 through 42.
2. D a t a are on an international accounts (IA) basis. Differs f r o m the
census basis primarily because the I A basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
line 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Differs f r o m the definition of " n e t exports of goods and services" in
the national income and product ( G N P ) account. The G N P definition
makes various adjustments to merchandise trade and service transactions.
5. Primarily associated with military sales contracts and other transactions arranged with or through foreign official agencies.
6. Consists of investments in U.S. corporate stocks and in debt securities of private corporations and state and local governments.
NOTE. Data are f r o m Bureau of Economic Analysis, Survey of Current
Business (U.S. Department of Commerce).
Trade and Reserve
Assets
A55
3.11 U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
Item
1976
1979
1977
1978
May
June
July
Aug.
Sept.
Oct.
Nov.
13,862
15,038
15,669
15,821
15,832
16,838
17,004
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
115,156
2 G E N E R A L IMPORTS including
merchandise for immediate consumption plus entries into bonded
warehouses
121,009
147,685
172,026
16,342
16,937
16,777
18,177
18,666
18,856
18,422
3 Trade balance
-5,853
-26,535
-28,452
-2,480
-1,900
-1,108
-2,357
-2,833
-2,018
-1,418
121,150
143,574
NOTE. Bureau of Census data reported on a free-alongside-ship (f.a.s.)
value basis. Effective January 1978, major changes were made in
coverage, reporting, and compiling procedures. The internationalaccounts-basis data adjust the Census basis data for reasons of coverage
and timing. On the export side, the largest adjustments are: (a) the addition
of exports to Canada not covered in Census statistics, and (b) the exclusion
of military exports (which are combined with other military transactions
and are reported separately in the "service account"). On the import
side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not
included in Census statistics.
SOURCE. FT 900 "Summary of U.S. Export and Import Merchandise
Trade" (U.S. Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
Type
1976
1977
1979
1978
June
July
Aug.
Sept.
Oct.
Nov.
Dec.25
1 Total i
18,747
19,312
18,650
21,246
20,023
20,023
18,534
17,994
19,261
18,937
2 Gold stock, including exchange
Stabilization Fund i
11,598
11,719
11,671
11,323
11,290
11,259
11,228
11,194
11,112
11,172
3 Special drawing rights 2 .3
2,395
2,629
1,558
2,670
2,690
2,689
2,725
2,659
2,705
2,724
4 Reserve position in International
Monetary Fund 2
4,434
4,946
1,047
1,204
1,200
1,277
1,280
1,238
1,322
1,253
320
18
4,374
6,049
4,843
4,798
3,301
2,903
4,122
3,788
5 Foreign currencies
4
1. Gold held under earmark at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United
States; see table 3.24.
2. Beginning July 1974, the I M F adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position in
the I M F also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as
follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710
million on Jan. 1, 1972; and $1,139 million on Jan. 1, 1979; plus net
transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
A 56
International Statistics • January 1980
3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data
Millions of dollars, end of period
Asset account
1976
1977
1979
19781
Apr.
May
June
July
Aug.
Sept.
Oct.*
All foreign countries
1 Total, all currencies
2 Claims on United States
3
Parent bank
4
Other
5 Claims on foreigners
6
Other branches of parent bank
7
Banks
8
Public borrowers 2
9
Nonbank foreigners
10 Other assets
11 Total payable in U.S. dollars
12 Claims on United States
13
Parent bank
14
Other
15 Claims on foreigners
16
Other branches of parent bank
17 Banks
18
Public borrowers 2
19
Nonbank foreigners
20 Other assets
219,420
258,897
306,795
303,996
311,334
327,012
326,545
7,889
4,323
3,566
11,623
7,806
3,817
17,340
12,811
4,529
19,985
14,259
5,726
24,624
18,014
6,610
29,293
22,641
6,652
26,605
19,734
6,871
204,486
45,955
83,765
10,613
64,153
238,848
55,772
91,883
14,634
76,560
278,135
70,338
103,111
23,737
80,949
271,107
64,126
101,852
24,829
80,300
274,384
65,967
103,329
24,691
80,397
284,595
69,608
107,673
24,835
82,479
350,441' 360,783
41,917
35,203
6,714
286,590 295,079
70,124
74,749
107,957' 111,828'
24,494'
24,580
83,929 ' 8 4 , 0 0 8 '
358,430
37,685
29,931
7,754
34,889
28,055
6,834
309,003
80,196
118,674
25,074
85,059
309,616
80,282
119,156
25,293
84,885
7,045
8,425
11,320
12,904
12,326
13,124
13,350
167,695
193,764
224,940
222,096
228,587
238,298
234,445
7,595
4,264
3,332
11,049
7,692
3,357
16,382
12,625
3,757
19,015
14,020
4,995
23,676
17,832
5,844
28,223
22,387
5,836
25,536
19,478
6,058
40,799
34,939
5,860
36,454
29,700
6,754
33,612
27,648
5,964
156,896
37,909
66,331
9,022
43,634
178,896
44,256
70,786
12,632
51,222
203,498
55,408
78,686
19,567
49,837
196,560
49,661
77,608
20,852
48,439
198,717
50,790
79,089
20,816
48,022
203,729
53,136
81,392
20,553
48,648
202,426
53,629
79,951
20,188
48,658
211,663
58,255
84,104
20,350'
48,954'
220,665
62,058
89,585
20,736
48,286
222,441
61,992
90,832
20,914
48,703
3,204
3,820
5,060
6,521
6,194
6,346
6,483
6,573'
6,438
7,041
14,095
13,925
2 5 9 , 0 3 5 ' 263,557
263,094
13,445'
United Kingdom
21 Total, all currencies
22 Claims on United States
23
Parent bank
24
Other
25 Claims on foreigners
26
Other branches of parent bank
27
Banks
28
Public borrowers 2
29
Nonbank foreigners
30 Other assets
31 Total payable in U.S. dollars
32 Claims on United States
33
Parent bank
34
Other
35 Claims on foreigners
36
Other branches of parent bank
37
Banks
38
Public borrowers 2
39
Nonbank foreigners
40 Other assets
81,466
90,933
106,593
102,876
104,915
112,881
115,217
120,703
126,018
127,949
3,354
2,376
978
4,341
3,518
823
5,370
4,448
922
5,268
3,679
1,589
6,303
4,410
1,893
7,492
5,495
1,997
8,408
6,177
2,231
10,559
8,520
2,039
10,614
8,322
2,292
11,653
9,643
2,010
75,859
19,753
38,089
1,274
16,743
84,016
23,017
39,899
2,206
19,895
98,137
27,830
45,013
4,522
20,772
94,120
24,435
43,308
4,547
21,830
95,266
25,248
43,657
4,579
21,782
101,693
29,158
44,800
4,872
22,863
103,033
28,376
46,291
4,489
23,877
106,394
31,800
46,625
4,639
23,330
111,598
32,998
49,938
4,882
23,780
112,450
32,464
51,466
4,646
23,874
2,253
2,576
3,086
3,488
3,346
3,696
3,776
3,750
3,806
3,846
61,587
66,635
75,860
72,015
73,480
78,155
79,211
85,380
88,959
91,485
3,375
2,374
902
4,100
3,431
669
5,113
4,386
727
4,946
3,612
1,334
5,981
4,374
1,607
7,033
5,386
1,647
7,956
6,060
1,896
10,146
8,443
1,703
10,096
8,270
1,826
11,164
9,485
1,679
57,488
17,249
28,983
846
10,410
61,408
18,947
28,530
1,669
12,263
69,416
22,838
31,482
3,317
11,779
65,356
19,866
29,924
3,429
12,137
65,968
20,505
30,211
3,331
11,921
69,451
23,999
29,803
3,396
12,253
69,496
23,481
30,626
3,166
12,223
73,503
26,983
31,318
3,210
11,992
77,145
27,631
34,276
3,336
11,902
78,428
27,092
36,183
3,206
11,947
824
1,126
1,331
1,713
1,531
1,671
1,759
1,731
1,718
1,893
Bahamas and Caymans
41 Total, all currencies
42 Claims on United States
43
Parent bank
44
Other
45 Claims on foreigners
46
Other branches of parent bank
47
Banks
48
Public borrowers 2
49
Nonbank foreigners
50 Other assets
51 Total payable in U.S. dollars
For notes see opposite page.
66,774
79,052
91,735
93,832
98,057
103,387
98,839
113,512
109,925
106,484
3,508
1,141
2,367
5,782
3,051
2,731
9,635
6,429
3,206
12,859
9,332
3,527
16,360
12,244
4,116
20,001
15,956
4,045
16,613
12,566
4,047
29,021
24,929
4,092
24,731
19,919
4,812
21,368
17,105
4,263
62,048
8,144
25,354
7,105
21,445
71,671
11,120
27,939
9,109
23,503
79,774
12,904
33,677
11,514
21,679
77,992
11,756
33,524
12,360
20,352
78,869
11,886
34,063
12,703
20,217
80,579
11,295
36,542
12,445
20,297
79,476
11,760
35,053'
12,301
20,362'
81,370
10,745
37,899'
11,981
20,745'
82,296
10,834
39,128
12,054
20,280
82,068
10,514
38,820
12,355
20,379
1,217
1,599
2,326
2,981
2,828
2,807
2,750
3,121
2,898
3,048
62,705
73,987
85,417
87,875
91,829
96,995
92,216
106,767
103,034
99,715
Overseas Branches
A57
3.13 Continued
1979
1976
Liability account
1977
19781
Apr.
May
June
July
Aug.
Sept.
Oct.»
All foreign countries
52 Total, all currencies
219,420
258,897
32,719
19,773
44,154
24,542
179,954
44,370
83,880
25,829
25,877
206,579
53,244
94,140
28,110
31,085
53 To United States
54
Parent bank
55
Other banks in United States
56
Nonbanks
57 To foreigners
58
Other branches of parent b a n k . . . .
59
Banks
60
Official institutions
61
Nonbank foreigners
238,912
67,496
97,711
31,936
41,769
303,996
311,334
56,020
23,895
9,871
22,254
57,620
23,343
9,884
24,393
237,588
62,005
100,214
33,006
42,363
242,513
63,731
101,936
34,107
42,739
327,012
61,064
19,355
15,008'
26,701'
254,050
66,631
109,295
34,303
43,821
6,747
8,163
9,935
10,388
11,201
11,898
198,572
230,810
226,660
232,515
243,521
31,932
19,559
42,881
24,213
54,051
22,951
9,668
21,432
55,488
22,406
9,651
23,431
137,612
37,098
60,619
22,878
17,017
151,363
43,268
64,872
23,972
19,251
169,927
53,396
63,000
26,404
27,127
167,133
48,393
64,042
27,108
27,590
170,847
49,442
65,404
28,310
27,691
178,631
51,101
71,041
28,117
28,372
3,527
4,328
5,072
5,476
6,180
6,366
64 To United States
65
Parent bank
66
Other banks in United States
67
Nonbanks
68 To foreigners
69
Other branches of parent b a n k . . . .
70
Banks
71
Official institutions
72
Nonbank foreigners
57,948
28.464'
12,338
17,146'
173,071
62 Other liabilities
63 Total payable in U.S. dollars
306,795
73 Other liabilities
55,811
27,393'
12,084
16,334'
58,524
18,333
14,711'
25,480'
326,545
60,097
20,256
12,436'
27,405'
253,785
67,961
105,296
35,363
45,165
12,663
3 5 0 , 4 4 1 ' 360,783
67,744
20,242
17,785'
29,717'
270,328
72,977
117,794
33,511
46,046
358,430
67,558
21,420
18,571
27,567
66,001
21,352
14,721
29,928
280,313
78,412
118,260
35,712
47,929
279,372
78,066
116,184
35,943
49,179
12,912
13,057
269,734
268,769
64,921
20,254
18,116
26,551
63,411
20,124
14,383
28,904
192,481
56,840
78,006
27,468
30,167
197,890
60,588
76,453
29,476
31,373
198,324
60,476
74,888
29,653
33,307
6,384
6,732
6,923
7,034
12,369'
2 4 0 , 4 5 2 ' 264,339
57,455
19,218
12,130'
26,107'
176,613'
52,048
65,945
29,497
29,123'
65,126
19,192
17,345'
28,589'
United Kingdom
74 Total, all currencies
75 To United States
76
Parent bank
77
Other banks in United States
78
Nonbanks
)
V
79 To foreigners
80
Other branches of parent b a n k . . . .
81
Banks
82
Official institutions
83
Nonbank foreigners
85 Total payable in U.S. dollars
90 To foreigners
91
Other branches of parent bank
92
Banks
93
Official institutions
94
Nonbank foreigners
95 Other liabilities
90,933
106,593
102,876
104,915
112,881
115,217
120,703
126,018
127,949
5,997
1,198
7,753
1,451
9,730
1,887
4,232
3,611
10,781
1,814
3,521
5,446
11,697
2,113
3,360
6,224
12,779
1,505
4,245
7,029
13,626
1,706
4,822
7,098
17,174
2,669
6,155
8,350
18,451
2,079
7,744
8,628
19,731
2,258
8,031
9,442
93,202
12,786
39,917
20,963
19,536
88,174
11,023
39,391
20,115
17,645
88,796
10,931
38,417
21,312
18,136
95,385
11,353
42,297
23,140
18,595
96,258
11,193
41,336
24,017
19,712
98,557
11,507
46,256
21,825
18,969
102,520
13,045
45,346
24,015
20,114
103,092
13,139
44,458
24,437
21,058
A
FY7Q8
O
73,228
7,092
36,259
17,273
12,605
84 Other liabilities
86 To United States
87
Parent bank
88
Other banks in United States
89
Nonbanks
81,466
|
0,
J\JZ
80,736
9,376
37,893
18,318
15,149
2,241
2,445
3,661
3,921
4,422
4,717
5,333
4,972
5,047
5,126
63,174
67,573
77,030
72,653
74,127
79,256
80,398
86,642
90,609
92,817
5,849
1,182
4 667
7,480
1,416
6 064
9,328
1,836
4,144
3,348
10,439
1,780
3,472
5,187
11,200
2,047
3,301
5,852
12,199
1,460
4,174
6,565
13,077
1,637
4,757
6,683
16,572
2,613
6,068
7,891
17,817
1,975
7,669
8,173
19,188
2,196
7,967
9,025
56,372
5,874
25,527
15,423
9,547
58,977
7,505
25,608
15,482
10,382
66,216
9,635
25,287
17,091
14,203
60,689
7,706
24,002
16,197
12,784
60,948
7,777
22,684
17,486
13,001
65,081
7,711
25,436
19,093
12,841
65,403
7,377
23,893
20,288
13,845
68,035
7,720
28,698
18,119
13,498
70,717
8,663
27,284
20,257
14,513
71,560
8,955
26,149
20,457
15,999
953
1,116
1,486
1,525
1,979
1,976
1,918
2,035
2,075
2,069
113,512
Bahamas and Caymans
96 Total, all currencies
97 To United States
98
Parent bank
99
Other banks in United States
100
Nonbanks
101 To foreigners
102
Other branches of parent bank
103
Banks
104
Official institutions
105
Nonbank foreigners
106 Other liabilities
107 Total payable in U.S. dollars
66,774
79,052
91,735
93,832
98,057
103,387
98,839
109,925
106,484
22,721
16,161
> OJDDU
32,176
20,956
11 220
39,431
20,356'
6,199
12,876'
37,676
16,527
5,224
15,925
38,713
15,957
5,404
17,352
40,023
12,276
8,973
18,774
37,939
12,232
6,342
19,365
41,734
11,117
10,192'
20,425'
40,582
13,525
8,947
18,110
38,280
12,864
5,757
19,659
42,899
13,801
21,760
3,573
3,765
45,292
12,816
24,717
3,000
4,759
50,447
16,094
23,104
4,208
7,041
54,146
14,716
25,964
5,328
8,138
57,184
15,997
28,599
4,970
7,618
61,216
17,104
31,662
4,074
8,376
58,724
18,223
28,204
4,375
7,922
69,373
20,246
35,121
4,751
9,255
67,017
20,730
32,799
4,418
9,070
65,934
19,304
32,266
4,712
9,652
1,154
1,584
1,857
2,010
2,160
2,148
2,176
2,405
2,326
2,270
63,417
74,463
87,014
88,942
92,797
97,993
93,470
107,623
104,113
100,820
1. In May 1978 the exemption level for branches required to report
was increased, which reduced the number of reporting branches.
2. In May 1978 a broader category of claims on foreign public bor-
rowers, including corporations that are majority owned by foreign governments, replaced the previous, more narrowly defined claims on foreign
official institutions.
A 58
International Statistics • January 1980
3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1979
1976
Item
1977
1978
May
4
5
6
7
8
9
10
11
12
July
Aug.
Sept.
Oct.
Nov.
95,634 131,097 162,567 141,084 144,017 147,829 148,567 149,761 146,697 141,394
1 Total i
2
3
June
By type
Liabilities reported by banks in the United States 2 ..
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5.
17,231
37,725
18,003
47,820
23,274
67,671
25,720
43,727
25,349
46,304
25,640
49,425
25,259
50,146
25,619
50,842
24,942
49,411
26,642
43,921
11,788
20,648
8,242
32,164
20,443
12,667
35,912
20,970
14,740
36,179
20,467
14,991
36,478
20,697
15,189
37,510
19,797
15,457
38,025
19,547
15,590
38,126
19,547
15,627
38,176
18,497
15,671
37,254
17,837
15,740
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
45,882
3,406
4,926
37,767
1,893
1,760
70,748
2,334
4,649
50,693
1,742
931
92,989
2,506
5,045
58,858
2,423
746
81,025
1,993
4,822
49,827
2,604
813
83,523
1,979
4,610
50,573
2,614
718
86,630
2,116
5,397
50,380
2,618
688
86,505
2,185
4,497
51,749
3,219
412
87,137
2,412
4,890
52,374
2,513
435
85,481
1,954
4,557
51,737
2,583
385
80,967
1,971
4,579
51,109
2,218
551
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
5. Debt securities of U.S. government corporations and federally
sponsored agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to
the Treasury Department by banks (including Federal Reserve Banks)
and securities dealers in the United States.
3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1979
1978
Item
1976
1977
Sept.
1 Banks' own liabilities
2 Banks' own claims 1
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2
1. Includes claims of banks' domestic customers through March 1978.
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 their domestic customers.
781
1,834
1,103
731
925
2,356
941
1,415
1,771
2,950
1,375
1,575
446
Dec.
2,235
3,522
1,650
1,871
367
Mar.
1,781
2,602
1,121
1,481
476
June
1,963
2,492
1,302
1,189
520
Sept.
2,323
2,607
1,228
1,379
612
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities.
Nonbank-Reported
Data
A59
3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions of dollars, end of period
1979
Holder and type of liability
1976
1977
1978
May
1 All foreigners
2 Banks' own liabilities..
3 Demand deposits
4
Time 2deposits 1
5
Other
6
Own foreign offices 3 .
7 Banks' custody liabilities4
8
U.S. Treasury bills and certificates 5
9
Other negotiable6 and readily transferable
instruments
10 Other
11 Nonmonetary international and regional
organizations 7
12 Banks' own liabilities.
13 Demand deposits.
.
14 Time 2d e p o s i t s 1 . . . .
15 Other
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable6 and readily transferable
instruments
19 Other
20 Official institutions 8.
21 Banks' own liabilities.
22 Demand deposits...
1
23 Time deposits
24
Other 2
25 Banks' custody liabilities4
26
U.S. Treasury bills and certificates5
27
Other negotiable6 and readily transferable
instruments
28
Other
29 Banks 9.
30 Banks' own liabilities
31
Unaffiliated foreign banks.
32
Demand deposits
1
33
Time deposits
34
Other 2
35
40 Other foreigners
41 Banks' own liabilities.
42 Demand deposits...
43 Time 2deposits 1 . . . .
44
Other
45 Banks' custody liabilities4
46
U.S. Treasury bills and certificates
47
Other negotiable6 and readily transferable
instruments
48
Other
Aug.
Sept.
Oct.f
16,803
11,347
18,996
11,521
78,995
19.201
12,473
9,767
37,554
93,689 100,018
18,105 19,326
12,650 12,735
13,564 12,440
49,370 55,517
97,255 117,674 111,716 107,829
17,897
19,088 18,910 20,163
12,608 12,968 13,048 12,249
12,753 12,205 12,694 12,743
52,806 73,591 65,811 64,940
40,744
48,906
88,091
68.202
65,425
45,103
67,837
47,425
71,702
51,467
73,817
52,258
73,978
52,429
72,772
50,452
17,396
2,493
18,118
2,203
18,115
2,296
18,020
2,215
19,275
2,284
19,312
2,237
20,130
2,190
3,274
2,617
2,757
2,851
3,437
3,462
2,909
2,389
290
205
231
139
916
330
94
492
1,306
298
85
923
1,500
264
87
1.150
844
216
79
549
603
154
87
362
2,701
706
1,701
201
1,451
175
1,350
199
2,593
1,345
2,859
1,442
2,418
912
1,823
327
1,499
1,274
1.151
1,247
1,416
1,505
1,494
2
65,822
90,688
69,447
71,653
75,066
75,405
76,460
74,353
3,528
1,797
12,112
3,390
2,546
6,176
13,958
3,170
2,567
8,221
13,305
3,196
2,506
7,604
14,240
2,850
2,590
8,800
12,806
2,397
2,607
7,801
13,488
3,139
2,320
8,029
11,983
2,372
1,851
7,759
47,820
78,577
67,415
55,489
43,727
58,347
46,304
60,826
49,425
62,600
50,146
62,972
50,842
62,370
49,411
10,992
170
11,692
70
12,003
40
11,350
50
12,401
52
12,080
51
12,902
57
42,335
57,758
70,178
76,465
73,313
95,465
88,947
86,150
10,933
2,040
52,973
15,419
11,239
1,479
2,700
65,010
15,640
10,278
1,263
4,099
71,434
15,917
11,138
1,398
3,382
68,362
15,556
11,361
1,209
2,987
90,444
16,853
11,757
1,525
3,571
83,800
17,989
12,425
1,752
3,813
81,050
16,110
10,603
1,547
3,960
37,554
49,370
55,517
52,806
73,591
65,811
64,940
4,785
300
5,168
508
5,031
407
4,951
347
5,020
384
5,147
406
5,100
400
2,425
2,060
2,593
2,066
2,480
2,145
2,556
2,048
2,509
2,127
2,625
2,116
2,684
2,017
14,736
16,023
16,732
16,886
17,140
17,195
17,379
17,709
4,015
6,524
4,304
7,546
12,995
4,242
8,353
399
13,415
4,358
8,735
322
13,778
4,729
8,744
305
13,809
4,661
8,731
417
13,821
4,602
8,748
470
13,937
4,439
8,894
604
14,230
4,779
8,769
682
198
240
3,028
285
3,317
693
3,108
516
3,332
350
3,338
285
3,442
269
3,479
315
2,481
262
2,559
66
2,482
111
2,867
115
2,948
105
3,103
70
3,050
114
11,007
10,824
10,633
10,709
11,082
11,264
1,336
5,714
54,956
3,394
2,321
37,725
37,174
9,104
2,297
119
12,814
141
49 MEMO: Negotiable time certificates of deposit held
in custody for foreigners
1. Excludes negotiable time certificates of deposit, which are included
in "Other negotiable and readily transferable instruments." Data for time
deposits prior to April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due to head
office or parent foreign bank, and foreign branches, agencies or wholly
owned subsidiaries of head office or parent foreign bank.
4. Financial claims on residents of the United States, other than longterm securities, held by or through reporting banks.
July
Nov.?
110,657 126,168 167,087 159,114 167,855 168,957 191,491 185,695 180,601
Own foreign offices 3 .
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable6 and readily transferable
instruments
39
Other
June
1
1
491
161
821
248
566
143
82
342
5. Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable
time certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the
Bank for International Settlements.
9. Excludes central banks, which are included in "Official institutions."
A 60
International Statistics • January 1980
3.16 LIABILITIES TO FOREIGNERS Continued
1979
Area and country
1976
1977
1978
May
Total.
2 Foreign countries.
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 i
22
U.S.S.R
23
Other Eastern E u r o p e 2
June
July
Aug.
Sept.
Oct.f
Nov.p
110,657
126,168
167,087
159,114 167,855 168,957
191,491 185,695
180,601 184,028
104,943
122,893 164,470
156,357 165,004 165,520
188,029
182,786
178,212
181,311
86,110
446
2,714
1,412
508
9,985
10,434
695
9,676
2,627
1,320
411
1,060
2,368
15,717
160
22,579
149
3,504
80
265
88,584
444
2,920
1,100
415
10,499
13,129
691
8,551
2,281
1,402
554
1,133
2,062
16,642
135
22,622
142
3,493
52
317
87,998
426
2,710
1,001
334
9,340
13,154
632
8,481
2,174
1,393
620
1,103
2,165
16,673
150
24,136
147
3,049
53
259
87,502
404
2,786
1,165
390
10,301
10,801
792
8,344
2,160
1,407
595
1,184
2,064
17,220
145
24,052
147
3,240
43
263
47,076
346
2,187
356
416
4,876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236
60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236
85,387
513
2,552
1,946
346
9,208
17,286
826
7,674
2,402
1,271
330
870
3,121
18,612
157
14,265
254
3,346
82
325
75,221
475
2,282
1,526
401
9,755
7,617
678
9,751
2,889
1,456
244
897
2,524
13,720
127
16,696
184
3,686
58
254
79,513
449
2,419
1,165
457
9,594
8,492
684
9,656
2,628
1,348
353
1,211
2,437
15,932
156
18,079
151
3,961
62
277
81,510
444
2,493
1,560
466
9,616
10,724
760
8,458
2,355
1,263
303
1,107
2,227
16,744
193
18,760
159
3,553
63
260
4,659
4,607
6,966
7,959
6,674
7,610
8,376
8,319
8,640
7,143
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala3
36
Jamaica 3
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean.
19,132
1,534
2,770
218
1,438
1,877
337
1,021
6
320
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,870
158
1,167
257
245
3,118
1,797
2,876
196
2,331
287
243
2,929
2,167
31,622
1,484
6,743
428
1,125
5,991
399
1,756
13
322
416
52
3,417
308
2,992
363
231
3,821
1,760
40,406
1,886
11,682
345
1,576
9,313
368
2,192
9
318
318
78
3,215
396
2,903
321
223
3,664
1,601
44,887
1,891
16,383
402
1,332
8,943
403
2,402
7
391
319
46
3,392
414
3,125
382
248
2,982
1,825
41,398
1,693
13,022
339
1,294
8,085
465
2,292
7
443
319
104
3,632
422
3,070
425
231
3,920
1,636
56,879
1,757
24,085
415
1,040
13,367
459
2,378
6
449
320
67
3,658
361
3,049
391
222
3,180
1,675
49,408
1,935
18,372
392
1,198
11,202
420
2,188
9
364
335
175
3,549
359
3,336
477
217
2,903
1,977
47,096
1,693
15,377
399
994
11,372
425
2,243
7
482
361
113
3,527
609
3,926
388
217
3,168
1,795
51,567
1,573
18,533
404
1,051
12,487
356
2,377
12
476
374
74
3,666
460
4,288
417
185
3,014
1,822
44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48
India
Indonesia
49
Israel
50
Japan
51
Korea
52
Philippines
53
Thailand
54
Middle East oil-exporting countries 4 .
55
Other Asia
56
29,766
30,488
36,532
28,510
29,513
30,614
32,019
32,505
30,574
31,014
48
990
894
638
340
392
14,363
438
628
277
9,360
1,398
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250
67
502
1,256
790
449
674
21,927
795
644
427
7,588
1,414
41
598
1,496
1,016
394
650
12,262
986
605
302
8,758
1,402
46
739
1,555
940
409
706
12,572
809
690
413
9,003
1,632
42
769
1,452
873
509
621
13,104
816
640
307
9,651
1,830
41
1,027
1,571
704
317
625
13,094
825
619
330
11,092
1,773
45
1,231
1,634
674
463
626
13,292
938
632
421
10,688
1,862
49
1,339
1,542
496
555
621
10,843
950
598
304
11,313
1,963
45
1,413
1,624
582
481
574
7,867
951
671
415
14,461
1,930
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 5.
63
Other Africa
2,298
333
87
141
36
1,116
585
2,535
404
66
174
39
1,155
698
2,886
404
32
168
43
1,525
715
3,056
297
36
206
47
1,523
946
3,237
306
45
316
56
1,566
948
3,226
378
35
196
37
1,699
881
3,818
302
40
174
49
2,441
811
3,194
245
40
235
73
1,832
768
3,141
294
30
194
112
1,711
800
3,105
380
36
213
104
1,513
859
64 Other countries.
65
Australia....
66
All other
2,012
1.905
107
1,297
1,140
158
1,076
838
239
1,206
991
215
1,181
891
290
1,162
806
355
826
621
205
776
549
227
762
528
234
979
714
266
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
70
Other regional 6
5,714
5,157
267
290
3,274
2,752
278
245
2,617
1,485
808
324
2,757
1,535
892
330
2,851
1,738
829
284
3,437
2,257
917
263
3,462
2,427
793
242
2,909
1,810
824
275
2,389
1,343
755
291
2,717
1,504
790
423
24 Canada.
1. Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in " O t h e r Latin America and Caribbean" through March
1978.
4. Comprises Bahrain, Iran, Iraq. Kuwait, O m a n , Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
5. Comprises Algeria, G a b o n , Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except the Bank for International Settlements, which is included in
"Other Western E u r o p e . "
Nonbank-Reported
Data
A61
3.17 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979
Area and country
1976
1977
1978
June
May
Aug.
July
Sept.
Oct.*'
Nov.f
i
79,301
90,206
115,307
106,554 115,297
113,417
125,772
127,247
121,093 124,392
2 Foreign countries
79,261
90,163
115,250
106,508
115,252
113,369
125,720
127,196
121,056
124,348
14,776
63
482
133
199
1,549
509
279
993
315
136
88
745
206
379
249
7,033
234
85
485
613
18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566
24,235
140
1,200
254
305
3,742
900
164
1,508
680
299
171
1,110
537
1,283
283
10,156
363
122
366
652
20,267
150
1,328
168
184
2,701
792
156
1,440
531
196
190
925
231
959
119
8,530
492
171
291
713
24,377
169
1,689
140
186
3,517
843
167
1,332
516
200
172
994
247
1,071
135
11,272
535
187
300
704
24,097
188
1,657
137
220
3,205
944
130
1,196
792
181
235
999
401
1,027
118
10,697
541
199
282
950
25,774
223
1,483
141
247
3,260
888
267
1,474
559
227
297
969
482
714
148
12,347
571
216
292
969
28,380
191
1,737
166
227
3,766
1,840
194
1,566
631
238
325
1,126
459
1,179
119
12,394
584
247
326
1,064
26,174
210
1,538
116
230
2,736
1,309
282
1,424
618
236
349
1,117
603
1,171
141
11,837
578
154
349
1,173
26,126
167
1,420
149
182
3,303
1,409
171
1,262
731
257
352
1,050
548
1,232
151
11,502
582
185
311
1,160
3 Euroce
4
Austria
Belgium-Luxembourg
5
6
Denmark
7
Finland
France
8
9
Greece
10
Italy
12
Netherlands
13
Norway
14
Portugal
Spain
15
16
Sweden
Switzerland
17
Turkey
18
19
United Kingdom
20
Yugoslavia
Other Western E u r o p e 1
21
U.S.S.R
22
Other Eastern E u r o p e 2
23
3,319
3,355
5,152
4,712
4,899
5,063
5,017
4,787
4,333
4,367
25 Latin America and Caribbean
Argentina
26
Bahamas
27
Bermuda
28
29
Brazil
British West Indies
30
Chile
31
32
Colombia
Cuba
33
34
Guatemala 3
35
Jamaica 3
36
37
Mexico
38
Netherlands Antilles
39
Panama
Peru
40
41
Uruguay
42
Venezuela
Other Latin America and Caribbean
43
38,879
1,192
15,464
150
4,901
5,082
597
675
13
375
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
57,166
2,281
21,515
184
6,251
9,391
972
1,012
4,822
140
1,372
933
42
1,828
1,293
4,909
224
1,410
962
80
2,318
1,394
705
94
40
5,423
273
3,094
918
52
3,474
1,487
53,708
3,406
19,996
198
6,271
4,896
1,058
1,005
4
877
101
64
6,024
234
3,702
739
61
3,601
1,470
57,328
3,200
19,113
126
6,121
9,221
1,089
1,089
4
908
95
40
6,424
280
3,600
720
58
3,793
1,447
54,015
3,339
16,572
192
6,169
6,525
1,120
1,196
4
916
98
47
7,171
392
4,189
727
56
3,819
1,483
62,927
3,257
19,931
167
6,548
10,564
1,173
1,220
6
921
100
30
7,699
342
4,400
730
66
4,043
1,731
62,465
3,285
19,146
172
7,286
9,176
1,323
1,259
4
943
103
32
8,430
301
4,523
716
60
4,176
1,531
59,224
3,653
17,405
485
7,567
6,730
1,396
1,451
4
1,000
110
29
8,416
230
4,268
607
72
4,348
1,455
62,028
4,157
16,018
460
7,499
8,874
1,346
1,522
4
1,007
115
34
8,336
227
5,774
604
71
4,392
1,587
44
19,204
19,236
25,488
24,893
25,535
27,138
29,107
28,546
28,471
29,054
3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947
4
1,499
1,573
54
143
870
12,686
2,282
680
758
3,135
1,804
22
1,812
1,970
59
138
824
12,342
2,940
697
836
1,723
1,531
9
1,882
2,105
82
138
842
12,523
3,366
678
895
1,586
1,429
20
1,891
1,978
43
131
865
13,908
3,465
743
925
1,784
1,386
29
1,970
1,788
75
156
857
15,193
3,612
793
919
1,689
2,026
25
1,935
1,859
74
140
882
14,656
3,750
638
1,036
1,914
1,637
55
1,930
1,737
68
147
891
14,997
3,839
724
956
1,190
1,939
31
1,805
1,794
69
138
842
16,149
3,732
642
971
1,107
1,775
2,311
126
27
957
112
524
565
2,518
119
43
1,066
98
510
682
2,221
107
82
860
164
452
556
1,971
125
46
719
151
460
471
2,128
178
37
745
151
478
539
2,043
115
34
745
189
452
508
1,969
126
31
730
151
398
533
2,101
120
23
704
149
563
542
1,926
122
66
602
135
435
566
1,865
91
73
565
135
442
559
772
597
175
1,090
905
186
988
877
111
956
789
167
984
779
205
1,013
765
248
926
756
170
916
744
172
928
748
180
908
733
175
40
43
56
46
45
47
51
50
36
44
24 Canada
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other Asia
57 Africa
Egypt
58
Morocco
59
South Africa
60
Zaire
61
62
Oil-exporting countries 5
Other
63
64 Other countries
Australia
65
All other
66
67 N o n m o n e t a r y international
and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslavkia, German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in " O t h e r Latin America and Caribbean" through March
1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
*
5. Comprises Algeria, G a b o n , Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included
in " O t h e r Western E u r o p e . "
NOTE. D a t a for period prior to April 1978 include claims of banks'
domestic customers on foreigners.
A 62
International Statistics • January 1980
3.18 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979
Type of claim
1976
1977
1978
May
1 Total
79,301
90,206
5 Unaffiliated foreign banks
6
Deposits
7
Other
8 All other foreigners
Claims of banks' domestic customers 2
Deposits
3
Negotiable and readily transferable instruments
Outstanding collections and other claims 4
July
Aug.
Sept.
Nov.f
144,537 r
128,839
126,392
Oct.
115,307 106,554 115,297 113,417 125,772 127,247 rr 121,093 124,392
11,268
12,498 13,808 14,138 13,584
11,737
10,103
10,542
37,347 36,265 40,229 39,493 r 38,083 43,540
41,465
35,889
40,427 35,415 41,512 38,843 45,091 4 6 , 0 1 0 r' 39,824 37,819
7,384
7,541 7 , 3 9 4
5,775
6,990
5,721
5,498
6,988
34,706 29,917 34,128 31,853 37,550 38,616 r 32,836 32,044
23,312 24,707 25,169 26,572 27,954 27,935 r 29,047 29,449
2 Banks' own claims on foreigners
3 Foreign public borrowers
9
10
11
12
June
5,756
6,176
13 MEMO * Customer liability on acceptances
Dollar deposits in banks abroad, reported by
nonbanking business
enterprises in the
United States 5
1. U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or wholly
owned subsidiaries of head office or parent foreign bank.
2. Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.
3. Principally negotiable time certificates of deposit and bankers
acceptances.
11,085
972
4,762
5,351
13,542
1,428
6,230
5,883
17,290
955
10,161
6,175
14,918
16,847
19,746
12,757
19,272
17,259
20,482
20,733
18,637
21,514
n.a.
4. Data for March 1978 and for period prior to that are outstanding
collections only.
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 . 5 5 0 .
NOTE. Beginning April 1978, data for banks' own claims are given
on a monthly basis, but the data for claims of banks' domestic customers
are available on a quarterly basis only.
3.19 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979
1978
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin American and Caribbean
Asia
Africa
Allother 2
Maturity of over 1 year 1
Europe
Canada
Latin America and Caribbean
Asia
Africa 2
Allother
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
June
Sept.
Dec.
Mar.
June
Sept.
55,902
60,096
73,633
71,528
77,648
87,233
44,558
3,128
41,430
11,343
3,243
8,101
47,230
3,709
43,521
12,866
4,230
8,635
58,341
4,579
53,762
15,292
5,336
9,956
55,347
4,627
50,720
16,181
5,935
10,246
59,999
4,583
55,416
17,650
6,405
11,244
67,877
5,949
61,928
19,356
7,637
11,719
9,710
1,598
17,439
13,831
1,457
523
10,513
1,953
18,624
14,014
1,535
591
15,121
2,670
20,912
17,572
1,496
569
12,376
2,512
21,634
16,993
1,290
541
14,040
2,703
23,071
18,181
1,438
565
16,754
2,462
25,556
21,182
1,400
523
2,920
344
5,900
1,297
631
252
3,102
794
6,877
1,303
580
211
3,149
1,426
8,469
1,399
636
214
3,108
1,456
9,336
1,471
629
180
3,486
1,221
10,267
1,879
614
183
3,667
1,371
11,794
1,713
622
189
NOTE. The first available data are for June 1978.
Bank-Reported
Data
A63
3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1975
1979
1978
1977
Area or Country
1976
Sept.
Dec.
Mar.
June 2
Sept.
Dec.
Mar.
June
Sept.
167.0
207.7
226.7
239.4
247.2
245.7
246.7
265.4
263.6
2 7 4 . 4 ' 293.8
2 G-10 countries and Switzerland
3
4
5
6
7
8
9
10
11
12
88.0
5.3
8.5
7.8
5.2
2.8
1.0
2.4
36.3
3.8
14.9
100.1
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.5
5.1
15.9
108.8
7.1
10.5
8.6
6.0
3.0
1.9
3.3
44.1
6.6
17.6
115.3
8.4
11.0
9.6
6.5
3.5
1.9
3.3
46.5
5.8
18.8
116.6
8.3
11.4
9.0
6.0
3.4
2.0
4.0
46.5
6.9
19.1
112.8
8.3
11.4
9.1
6.4
3.4
2.1
4.1
45.0
5.1
17.9
113.7
8.4
11.7
9.7
6.0
3.5
2.2
4.3
44.4
4.9
18.6
124.9
9.0
12.2
11.4
6.6
4.4
2.1
5.4
47.2
5.9
20.7
118.9
9.4
11.7
10.5
5.7
3.8
2.0
4.5
46.5
5.8
19.0
125.0'
9.7
12.7'
10.8
6.1
4.0
2.0
4.8
50.3
5.5
19.1
135.2
10.7
12.0
12.9
6.1
4.7
2.3
5.0
53.2
6.0
22.3
15
16
17
18
19
70
71
77
73
24
10.7
.7
.6
.9
1.4
1.4
.3
1.9
.6
.6
1.2
1.3
15.1
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2
18.1
1.3
1.5
1.2
2.0
1.8
.6
3.5
1.4
1.2
2.3
1.5
18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4
20.5
1.5
1.6
1.2
2.7
1.9
.7
3.6
1.5
1.4
2.5
1.9
19.3
1.5
1.7
1.1
2.3
2.1
.6
3.6
1.4
1.2
2.4
1.4
18.7
1.5
1.9
1.0
2.2
2.1
.5
3.5
1.5
1.0
2.2
1.3
19.4
1.7
2.0
1.2
2.3
2.1
.6
3.4
1.5
1.2
2.0
1.4
18.3
1.7
2.0
1.1
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3
18.4
1.8
2.0
1.1
2.2
2.1
.5
3.0
1.4
1.2
1.8
1.3
19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3
76
77
28
29
30
6.9
.4
2.3
1.6
1.6
1.0
12.6
.7
4.1
2.2
4.2
1.4
16.5
1.1
5.1
2.2
6.3
1.9
17.6
1.1
5.5
2.2
6.9
1.9
19.2
1.3
5.5
2.1
8.3
2.0
19.1
1.4
5.6
1.9
8.3
1.9
20.4
1.6
6.2
1.9
8.7
2.0
22.7
1.6
7.2
2.0
9.4
2.5
22.6
1.5
7.2
1.9
9.4
2.6
22.7
1.6
7.5
1.9
9.1
2.6
23.3
1.6
7.9
1.9
9.1
2.8
34.2
43.1
47.6
50.0
49.9
48.9
49.5
52.4
53.8
56.1
59.8
1.7
8.0
.5
1.2
9.0
1.4
2.6
1.9
11.1
.8
1.3
11.7
1.8
2.7
2.4
11.8
.8
1.2
12.6
1.9
2.5
2.9
12.7
.9
1.3
11.9
1.9
2.7
3.0
13.0
1.1
1.3
11.2
1.7
3.5
3.0
13.3
1.3
1.3
11.0
1.8
3.3
2.9
14.0
1.3
1.3
10.7
1.8
3.4
3.0
14.9
1.6
1.4
10.8
1.7
3.6
2.9
15.2
1.7
1.5
10.9
1.6
3.5
3.5
15.0
1.8
1.5
11.0
1.4
3.3
4.1
15.1
2.2
1.7
11.6
1.4
3.7
1
Latin America
32
33
34
35
36
37
38
Asia
China
*
*
*
*
*
*
*
*
1.7
.2
.9
2.4
.3
1.7
.7
.4
2.3
.2
1.0
3.1
.5
2.2
.7
.4
2.9
.3
.7
3.6
.7
2.4
.9
.4
3.1
.3
.9
3.9
.7
2.5
1.7
.3
2.5
.3
.8
3.7
.6
2.6
1.1
.4
2.4
.2
.7
3.6
.6
2.7
1.1
.3
2.4
.3
.7
3.5
.6
2.8
1.1
.3
2.9
.2
1.0
3.9
.6
2.8
1.2
.2
.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.3
.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4
3! 5
.2
1.0
5.3
.7
3.7
1.6
.3
48
49
50
51
.4
.1
.3
.5
.4
.2
.2
.6
.4
.4
.3
1.2
.3
.5
.3
1.2
.3
.4
.3
1.4
.3
.5
.2
1.2
.4
.5
.2
1.3
.4
.6
.2
1.4
.4
.6
.2
1.4
.7
.5
.2
1.5
1.2
.5
.2
1.7
53
54
55
3.7
1.0
.6
2.1
5.2
1.5
.8
2.8
5.5
1.5
1.0
3.0
6.5
1.6
1.1
3.8
6.3
1.4
1.2
3.7
6.4
1.4
1.3
3.7
6.6
1.4
1.3
3.9
6.9
1.3
1.5
4.1
6.7
1.1
1.6
4.0
6.7
.9
1.7
4.1
7.3
.9
1.8
4.6
19.4
7.3
.5
2.5
.6
2.6
.2
1.6
3.8
26.2
11.8
.5
3.8
.6
2.7
.1
2.3
4.4
25.3
9.9
.5
4.3
.6
2.8
.1
3.1
3.9
26.1
9.8
.6
3.8
.7
3.1
.2
3.7
3.7
.5
29.0
11.3
.6
4.5
.7
3.2
.2
4.0
4.0
.5
31.1
11.8
.7
6.3
.6
3.2
.1
4.1
3.8
.5
29.2
11.1
.7
6.2
.6
3.1
2.9
.5
30.0
9.9
.7
6.9
.8
2.9
.1
4.3
3.9
.5
33.8
12.9
.6
6.7
.8
3.3
.1
4.7
4.2
.5
35.6
13.3
.7
7.2
1.0
3.5
.1
5.2
4.2
.4
37.9
13.0
.7
9.1
1.1
3.0
.2
5.5
4.9
.4
5.3
5.7
8.1
8.6
9.1
9.5
9.9
10.6
39
40
41
42
43
44
45
46
47
Africa
56 Offshore banking centers
57
58
Cayman Islands and other British West Indies
59
60
61
62
63
64
Others 6
65
66 Miscellaneous and unallocated 7
-
1
4.1
*
-
5.4
1. The banking offices covered by these data are the U.S. offices and
foreign branches of U.S.-owned banks and of U.S. subsidiaries of foreignowned 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
3.13 (the sum of lines 7 through 10) with the claims of U.S. offices in table
3.17 (excluding those held by agencies and branches of foreign banks
and those constituting claims on own foreign branches). However see
also footnote 2.
2. For June 1978 and subsequent dates, the claims of the U.S. offices
1
5.0
4io
in this table include only banks' own claims payable in dollars. For
earlier dates the claims of the U.S. offices also include customer claims
and foreign currency claims (amounting in June 1978 to $10 billion).
3. Includes Algeria, Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria,
Oman, Qatar, Saudi Arabia, and United Arab Emirates in addition to
countries shown individually.
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional
organizations.
A 64
International Statistics • January 1980
3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions
Millions of dollars
1979
Country or area
1977
1979
1978
Jan.Nov. 2 '
May
June
July
Aug.
Sept.
Oct.f
NOV.p
Holdings (end of period) 1
1 Estimated total 2
38,640
44,938
47,218
47,494
48,991
49,575
50,257
50,888
49,884
2 Foreign countries 2
33,894
39,817
43,055
43,454
44,544
44,979
45,060
45,206
44,381
3 Europe 2
4
Belgium-Luxembourg
5
Germany 2
6
Netherlands
7
Sweden
8
Switzerland
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
13,936
19
3,168
911
100
497
8,888
349
4
288
17,072
19
8,705
1,358
285
977
5,373
354
20,667
20
10,828
1,672
479
1,458
5,697
513
21,047
24
10,751
1,695
484
1,582
6,016
496
22,213
24
10,781
1,655
481
1,843
6,938
491
22,558
24
10,952
1,577
525
2,048
6,895
538
22,599
65
10,953
1,667
588
2,496
6,193
637
22,692
65
11,082
1,660
600
2,427
6,191
666
22,015
60
11,337
1,490
593
2,066
5,955
513
152
216
227
232
233
233
235
234
13
14
15
16
17
18
19
20
551
199
183
170
18,745
6,860
362
416
144
110
162
21,488
11,528
691
-3
387
183
42
162
21,097
13,014
691
-3
387
183
42
162
21,103
13,040
691
-3
537
183
192
162
20,874
13,090
691
-3
539
183
192
165
20,960
12,818
691
-3
539
183
192
165
21,000
12,789
691
-3
541
183
194
164
21,050
12,591
691
-3
539
183
192
164
21,012
12,502
584
-3
Latin America and Caribbean
Venezuela
Other Latin American and Caribbean.
Netherlands Antilles
Asia
Japan
Africa
All other
11
21 Nonmonetary international and regional
organizations
4,746
5,121
4,163
4,040
4,447
4,596
5,197
5,682
5,503
22
23
4,646
100
5,089
33
4,114
48
3,993
48
4,400
48
4,551
46
5,150
46
5,636
46
5,463
40
International
Latin American regional
Transactions (net purchases, or sales (—), during period)
24 Total 2
22,843
6,297
4,946
-913
277
1,497
584
681
632
-1,005
25 Foreign countries 2
26
Official institutions
27
Other foreign 2
21,130
20,377
753
5,921
3,747
2,175
4,564
1,343
3,220
-122
-149
27
399
298
101
1,090
1,033
57
435
515
-81
81
101
-20
146
50
94
-825
-922
98
28 Nonmonetary international and regional
organizations
1,713
375
384
-791
-121
407
149
600
487
-180
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa 4
4,451
-181
-1,785
329
-1,176
-100
-190
8
-193
394
72
299
71
-100
1. Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Beginning December 1978, includes U.S. Treasury notes publicly
issued to private foreign residents.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end ot period
1979
Assets
1976
1977
1978
June
352
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold 2
66,532
16,414
424
Aug.
Sept.
Oct.
Nov.
Dec.?
367
326
372
325
347
351
490
429
91,962 117,126
15,988 15,463
95,301
15,356
99,004
15,322
98,794
15,296
100,383
15,294
97,965
15,253
90,874
15,230
95,075
11,946
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies.
2. The value of earmarked gold increased because of the changes in par
value of the U.S. dollar in May 1972 and in October 1973.
July
NOTE. Excludes deposits and U.S. Treasury securities held for international and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
of the United States.
Investment Transactions
A65
3.23 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1979
1979
Transactions, and area or country
1977
1978
JanNOV.P
June
May
July
Aug.
Nov. 27
Oct.?
Sept.
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
14,155
11,479
1,579
1,389
1,860
1,794
2,382
2,224
2,074
2,023
20,142
17,723
20,264
18,830
1,434
191
66
-8
158
67
-8
156
11
41
-16
-15
-3
5
33
-28
15
39
-3
-1
-42
18
-19
8
-52
-12
30
-17
-7
32
-4
1
-48
19
-30
-3
-87
97
78
45
44
34
-4
7
-107
-20
-37
2
-7
1,766
1,774
2,385
2,372
1,910
1,727
51
13
183
58
13
185
-34
-48
-32
38
-68
83
67
-93
59
18
-1
-3
57
-19
-18
15
-152
257
27
-4
133
-30
1
2
3 Net purchases, or sales (—)
2,676
2,420
4 Foreign countries
2,661
2,466
1,423
191
1,006
40
291
22
152
613
65
127
1,390
59
5
8
1,283
47
620
-22
-585
1,230
74
151
781
187
-13
3
121
113
-211
-42
-454
787
516
-57
624
227
-12
5
136
48
-1
-7
18
74
47
-18
20
9
-2
-1
15
-46
11
*
18 Foreign purchases
19 Foreign sales
7,739
3,560
7,975
5,517
7,774
6,996
863
922
1,081
793
869
648
729
673
398
288
827
639
4,179
2,458
778
-59
288
221
56
110
188
-184
21 Foreign countries
4,083
2,049
865
87
254
222
71
23
48
-121
22 Europe
23
France
24
Germany
25
Netherlands
1,850
-34
-20
72
94
1,690
141
64
1,695
338
-6
908
30
68
12
-100
930
102
98
810
131
640
10
81
-182
-68
778
104
98
-82
104
121
—l
6
-37
-41
151
4
7
-73
28
163
8
24
-32
—i
169
159
-34
-11
-9
-4
232
8
11
40
5
-5
-3
-10
-19
-8
24
9
10
50
7
19
-1
-1
-2
4
23
17
-4
-7
-4
1
88
1
-7
-7
-206
11
2
-15
-53
-124
-2
12
71
5
5
6
7
8
9
10
11
12
13
14
15
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East i
Other Asia
Africa
17 Nonmonetary international and regional
organizations
BONDS
27
28
29
30
31
32
33
-1
*
*
-64
19
145
-8
41
-12
-2
1
*
-3
2
United Kingdom
Canada
Latin America and Caribbean
Middle East*
Other Asia
Africa
Other countries
34 Nonmonetary international and regional
organizations
*
96
- 1
1
409
1
1
-87
*
-10
52
48
*
*
*
*
*
*
*
*
-146
34
-1
-14
*
103
8
6
-39
-16
731
916
*
*
1
*
87
140
-63
*
Foreign securities
35 Stocks, net purchases, or sales (—)
36
Foreign purchases
37
Foreign sales
-410
2,255
2,665
527
3,666
3,139
-740
4,108
4,849
67
554
487
-18
403
421
-67
329
396
-100
377
476
-338
420
758
-198
466
663
-84
365
449
38 Bonds, net purchases, or sales (—)
39
Foreign purchases
40
Foreign sales
-5,096
8,040
13,136
-4,018
11,043
15,061
-3,661
11,244
14,905
10
860
851
-689
1,011
1,700
-345
984
1,330
-543
1,575
2,118
-725
829
1,554
-75
1,081
1,156
-335
1,080
1,415
41 Net purchases, or sales (—) of stocks and b o n d s . . .
-5,506
-3,491
-4,401
77
-707
-412
-643
-1,063
-273
-420
42
43
44
45
46
47
48
-3,949
-1,100
-2,404
-82
-97
2
-267
-3,314
-40
-3,238
201
350
-441
-146
-3,506
-1,355
-2,496
419
-79
-18
23
76
-25
85
26
-14
4
1
-425
-144
-221
53
-114
4
-4
-436
-305
-178
30
16
-914
-120
-891
2
-559
-290
-128
30
-172
—1
2
5
-277
-38
-358
11
112
-6
2
-301
-119
-97
29
-114
-3
3
-1,557
-177
-895
1
-282
24
-83
-150
4
-118
Foreign countries
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
49 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).
*
*
92
*
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt
securities sold abroad by U.S. corporations organized to finance direct
investments abroad.
A 66
International Statistics • January 1980
3.24 LIABILITIES1 TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States
Millions of dollars, end of period
1979
1978
Type, and area or country
Total.
2 Payable in dollars
3 Payable in foreign currencies 2 ..
1976
1977
1978
June
Sept.
Mar.
June
Sept.
10,099
11,085
14,192
11,870
12,786
13,683
14,661
9,390
709
10,284
801
11,136
3,056
11,044
825
11,955
831
10,984
2,699
12,126
2,515
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies.
5,734
3,469
2,265
5,505
3,433
2,072
5,319
3,453
1,866
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities.
8,458
3,929
4,529
8,178
3,445
4,733
9,322
4,213
5,109
7,667
791
7,551
627
8,673
648
,772
287
162
371
364
204
,064
3.528
264
138
329
396
190
2,009
3,336
313
142
295
375
181
1,838
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies.
By area or country
Financial liabilities
Europe
Belgium-Luxembourg.
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada.
203
224
195
20
21
22
23
24
25
26
Latin America and Caribbean.
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
996
422
56
10
997
407
41
13
132
101
52
1,052
438
38
19
118
132
65
27
28
29
Asia
Japan
Middle East oil-exporting countries 3 .
754
671
745
667
36
725
656
36
30
31
Africa
Oil-exporting countries 4 .
32
33
34
35
36
37
38
39
122
102
46
Dec.
6
2
All others.
Commercial liabilities
Europe.
Belgium-Luxembourg.
France
Germany
Netherlands
Switzerland
United Kingdom
2,930
75
317
529
208
314
760
2,804
70
339
394
194
329
804
3,207
80
339
473
202
439
946
40
Canada.
663
612
659
41
42
43
44
45
46
47
Latin America
Bahamas
Bermuda
Brazil
British West Indies.
Mexico
Venezuela
990
25
95
74
53
105
303
1,138
16
40
61
89
236
356
1,313
65
80
165
121
203
323
48
49
50
Asia
Japan
Middle East oil-exporting countries 3 .
2,946
431
1,543
2,632
412
1,117
3,003
500
1,222
51
52
Africa
Oil-exporting countries 4 .
724
313
754
345
894
412
53
All others.
205
239
246
1. For a description of the changes in the International Statistics
tables, see July 1979 BULLETIN, p. 550.
2. Prior to December 1978, foreign currency data include only liabilities
denominated in foreign currencies with an original maturity of less than
one year.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
Nonbank-Reported
Data
A67
3.25 CLAIMS ON1 UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States
Millions of dollars, end of period
1979
1978
Type, and area or country
1976
1977
1978
June
Sept.
Mar.
June
1 Total.
19,350
21,298
27,193
23,229
23,260
29,714
29,048
2 Payable in dollars
3 Payable in foreign currencies 2 .
18,300
1,050
19,880
1,418
24,223
2,971
21,665
1,564
21,292
1,968
26,939
2,775
26,181
2,867
By type
4 Financial claims
Deposits
5
6
Payable in dollars
7
Payable in foreign currencies.
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies.
15,884
10,770
9,707
1,063
5,115
3,541
1,574
18,995
13,899
12,991
908
5,096
3,567
1,529
18,009
12,835
11,873
961
5,174
3,635
1,540
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims.
11,309
10,662
647
10,719
9,963
756
11,039
10,325
714
14
15
10,976
333
10,381
338
10,673
366
5,010
48
174
530
103
98
3,814
5,191
63
170
266
86
96
4,283
5.486
54
182
361
80
81
4,491
4,463
5,137
4,964
5,271
2,857
80
151
1,275
168
148
7,598
4,098
62
137
2,438
166
141
6.487
3,165
57
122
2,264
164
148
16
17
18
19
20
21
22
23
Payable in dollars
Payable in foreign currencies.
By area or country
Financial claims
Europe
Belgium-Luxembourg.
France
Germany
Netherlands
Switzerland
United K i n g d o m
Canada.
24
25
26
27
28
29
30
Latin America and Caribbean.
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
Asia
Japan
Middle East oil-exporting countries 3 .
918
306
18
826
206
17
797
216
17
34
35
Africa
Oil-exporting countries 4.
182
10
204
26
227
23
41
39
48
3,939
143
609
395
257
208
803
3,818
172
490
501
271
248
681
3,820
169
472
420
303
243
712
36
37
38
39
40
41
42
43
All o t h e r s .
Commercial claims
Europe
Belgium-Luxembourg.
France
Germany
Netherlands
Switzerland
United K i n g d o m
44
Canada.
1,105
1,113
1,144
45
46
47
48
49
50
51
Latin America and Caribbean.
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,535
109
215
625
9
506
292
2,382
117
241
490
10
488
273
2,403
98
118
500
25
582
295
52
53
54
Asia
Japan
Middle East oil-exporting countries 3 .
3,090
977
712
2,757
895
670
2,985
1,008
691
55
56
Africa
Oil-exporting countries 4.
451
137
446
132
490
140
57
All other 5.
188
203
198
1. F o r a description of the changes in the International Statistics
tables, see July 1979 BULLETIN, p. 550.
2. Prior to December 1978, foreign currency data include only liabilities
denominated in foreign currencies with an original maturity of less than
one year.
3.
and
4.
5.
Sept.
Dec.
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
United Arab Emirates (Trucial States).
Comprises Algeria, G a b o n , Libya, and Nigeria.
Includes nonmonetary international and regional organizations.
A 68
International Statistics • January 1980
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Country
Country
Percent
18.0
Argentina
Austria...
Belgium. .
Brazil
Canada...
Denmark.
3.75
10.5
33.0
14.0
11.0
Percent
Month
effective
Feb.
Jan.
Dec.
Nov.
Oct.
Sept.
Rate on Dec. 31,1979
Rate on Dec. 31,1979
Rate on Dec. 31, 1979
Country
France
Germany, Fed. Rep. of.
Italy
Japan
Mexico
Netherlands
1972
1979
1979
1978
1979
1979
NOTE. Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with
9.5
6.0
12.0
6.25
4.5
9.5
Month
effective
Aug.
Nov.
Oct.
Nov.
June
Nov.
1977
1979
1979
1979
1942
1979
Percent
9.0
9.0
2.0
17.0
8.5
United Kingdom
Month
effective
Nov.
Nov.
Nov.
Nov.
May
1979
1979
1979
1979
1979
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 annum, averages of daily figures
1979
1978
1977
Country, or type
1979
July
7 France
8 Italy
Aug.
Oct.
Sept.
Nov.
Dec.
6.03
8.07
7.47
4.30
2.56
8.74
9.18
8.52
3.67
0.74
11.96
13.60
11.91
6.64
2.04
10.87
13.87
11.29
6.77
1.19
11.53
14.06
11.78
7.04
1.67
12.61
14.11
11.89
7.82
1.94
14.59
14.12
13.34
8.84
2.57
15.00
16.09
14.19
9.57
3.97
14.51
16.71
14.02
9.54
5.67
4.73
9.20
14.26
6.95
6.22
6.53
8.10
11.40
7.14
4.75
9.33
9.44
11.85
10.48
6.10
9.53
9.90
11.46
11.18
6.26
9.51
10.85
11.50
11.42
7.00
9.82
11.67
11.51
11.88
7.00
10.09
12.14
12.71
12.99
7.01
11.86
12.72
13.12
14.17
8.13
14.56
12.55
16.01
14.49
8.42
NOTE. Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium, time deposits of 20 million
francs and over; and Japan, loans and discounts that can be called after
being held over a minimum of two month-ends.
3.28 FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1979
Country/currency
1
2
3
4
5
6
7
8
9
10
1977
1978
1979
July
Aug.
Sept.
Oct.
Nov.
Dec.
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
Denmark/krone
110.82
6.0494
2.7911
94.112
16.658
114.41
6.8958
3.1809
87.729
18.156
111.77
7.4799
3.4098
85.386
19.010
112.83
7.4628
3.4240
85.920
19.072
112.83
7.4786
3.4140
85.425
18.964
112.63
7.7211
3.4684
85.814
19.279
111.31
7.7570
3.4656
85.084
19.110
109.34
7.8345
3.4822
84.771
19.034
110.30
8.0039
3.5423
85.471
18.618
Finland/markka
France/franc
Germany/deutsche mark
India/rupee
Ireland/pound
24.913
20.344
43.079
11.406
174.49
24.337
22.218
49.867
12.207
191.84
25.732
23.504
54.561
12.265
204.65
26.040
23.535
54.817
12.651
206.79
26.075
23.491
54.666
12.484
205.79
26.242
23.826
55.758
12.289
209.18
26.483
23.809
55.884
12.159
208.28
26.428
24.065
56.470
12.209
208.70
26.830
24.614
57.671
12.350
212.76
11 Italy/lira
13 Malaysia/ringgit
14 Mexico/peso
15 Netherlands/guilder
.11328
.37342
40.620
4.4239
40.752
.11782
.47981
43.210
4.3896
46.284
.12035
.45834
45.720
4.3826
49.843
.12192
.46189
46.422
4.3767
49.821
.12219
.45890
46.363
4.3804
49.805
.12326
.44963
46.382
4.3858
50.635
.12112
.43405
46.074
4.3825
50.379
.12112
.40834
45.661
4.3726
50.686
.12329
.41613
45.931
4.3768
52.092
16
17
18
19
20
New Zealand/dollar
Norway/krone
Portugal/escudo
South Africa/rand
Spain/peseta
96.893
18.789
2.6234
114.99
1.3287
103.64
19.079
2.2782
115.01
1.3073
102.23
19.747
2.0437
118.72
1.4896
102.04
19.824
2.0551
118.46
1.5118
101.40
19.877
2.0332
119.38
1.5132
100.28
20.080
2.0297
119.91
1.5135
98.564
20.143
1.9992
120.79
1.5117
96.813
19.928
1.9852
120.32
1.5051
98.100
20.092
2.0036
120.79
1.5039
21
22
23
24
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United Kingdom/pound
11.964
22.383
41.714
174.49
6.3834
22.139
56.283
191.84
6.4226
23.323
60.121
212.24
6.3786
23.687
60.650
225.98
6.4174
23.693
60.349
223.68
6.4126
23.860
62.087
219.66
6.4000
23.747
61.350
214.38
6.4053
23.677
60.870
213.52
6.4300
23.935
62.542
220.07
88.09
86.93
87.24
86.73
87.67
88.12
86.32
MEMO:
25 United States/dollar*
103.31
92.39
1. Index of weighted average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see "Index of
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on
page 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable
transfers.
A 69
Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
General
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half offiguresin that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
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 obli-
STATISTICAL
List Published
gations of the Treasury. "State and local government" also
includes municipalities, special districts, and other political
subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
Semiannually,
with Latest Bulletin
Anticipated schedule of release dates for individual releases
Reference
Issue
Page
December 1979
A-76
A 70
Federal Reserve Board of Governors
Chairman
Vice Chairman
PAUL A . VOLCKER,
FREDERICK H . S C H U L T Z ,
OFFICE OF BOARD
MEMBERS
HENRY C. WALLICH
PHILIP E .
OFFICE
COLDWELL
OF STAFF
DIRECTOR
MONETARY AND FINANCIAL
JOSEPH R. COYNE, Assistant to the Board
JAY PAUL BRENNEMAN, Special Assistant to the Board
FRANK O'BRIEN, JR., Special Assistant to the Board
JOSEPH S. SIMS, Special Assistant to the Board
DONALD J. WINN, Special Assistant to the Board
LEGAL
FOR
POLICY
STEPHEN H . AXILROD, Staff Director
EDWARD C . ETTIN, Deputy Staff Director
MURRAY ALTMANN, Assistant to the Board
PETER M. KEIR, Assistant to the Board
STANLEY J. SIGEL, Assistant to the Board
NORM AND R. V. BERNARD, Special Assistant
to the Board
DIVISION
NEAL L. PETERSEN, General
ROBERT E . M A N N I O N ,
Counsel
DIVISION OF RESEARCH AND
Deputy General Counsel
CHARLES R. MCNEILL, Assistant to the General
Counsel
J. VIRGIL MATTINGLY, Assistant General
Counsel
GILBERT T. SCHWARTZ, Assistant General
Counsel
OFFICE OF THE SECRETARY
THEODORE E . ALLISON,
Secretary
GRIFFITH L. GARWOOD, Deputy
Secretary
Secretary
* WILLIAM N . MCDONOUGH, Assistant
RICHARD H . PUCKETT,
Manager, Regulatory
Project
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
JANET O . HART, Director
NATHANIEL E . BUTLER, Associate
JERAULD C . KLUCKMAN, Associate
JAMES L . KICHLINE, Director
JOSEPH S . ZEISEL, Deputy Director
JOHN H. KALCHBRENNER, Associate
JOHN E . R Y A N , Director
FREDERICK R . D A H L , Associate Director
WILLIAM TAYLOR, Associate Director
WILLIAM W . WILES, Associate Director
JACK M . EGERTSON, Assistant Director
ROBERT A . JACOBSEN, Assistant Director
D O N E . KLINE, Assistant Director
ROBERT S . PLOTKIN, Assistant Director
THOMAS A . SIDMAN, Assistant Director
SAMUEL H . TALLEY, Assistant Director
Director
MICHAEL J. PRELL, Associate Director
ROBERT A . EISENBEIS, Senior Deputy Associate Director
JOHN J. MINGO, Senior Deputy Associate Director
ELEANOR J. STOCK WELL, Senior Deputy Associate Director
JAMES M . B R U N D Y , Deputy Associate Director
JARED J. ENZLER, Deputy Associate Director
J. CORTLAND G . PERET, Deputy Associate Director
HELMUT F . W E N D E L , Deputy Associate Director
ROBERT M . FISHER, Assistant Director
FREDERICK M . STRUBLE, Assistant Director
STEPHEN P . TAYLOR, Assistant Director
LEVON H . GARABEDIAN, Assistant Director (Administration)
DIVISION OF INTERNATIONAL
Director
Director
DIVISION OF BANKING
SUPERVISION AND REGULATION
Improvement
STATISTICS
FINANCE
E D W I N M . TRUMAN, Director
ROBERT F . GEMMILL, Associate Director
GEORGE B . HENRY, Associate Director
CHARLES J. SIEGMAN, Associate Director
SAMUEL PIZER, Staff
Adviser
JEFFREY R . SHAFER, Deputy Associate Director
DALE W . HENDERSON, Assistant Director
LARRY J. PROMISEL, Assistant Director
RALPH W . SMITH, JR., Assistant Director
A 71
and Official Staff
J. C H A R L E S P A R T E E
NANCY H.
E M M E T T J. R I C E
TEETERS
OFFICE OF
STAFF DIRECTOR FOR
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
MANAGEMENT
JOHN M . DENKLER, Staff
Director
EDWARD T . MULRENIN, Assistant Staff Director
JOSEPH W . DANIELS, SR. , Director of Equal Employment
WILLIAM H . WALLACE, Staff Director
HARRY A . GUINTER, Assistant Director
Op-
for
Planning
portunity
DIVISION OF DATA
PROCESSING
CHARLES L . HAMPTON, Director
BRUCE M . BEARDSLEY, Associate Director
UYLESS D . BLACK, Assistant Director
GLENN L . CUMMINS, Assistant Director
ROBERT J. ZEMEL, Assistant Director
DIVISION OF PERSONNEL
DAVID L . S H A N N O N , Director
JOHN R . WEIS, Assistant Director
CHARLES W . W O O D , Assistant Director
OFFICE OF THE CONTROLLER
JOHN KAKALEC,
Controller
GEORGE E . LIVINGSTON, Assistant
DIVISION OF SUPPORT
Controller
SERVICES
DONALD E . ANDERSON, Director
JOHN L . GRIZZARD, Associate Director
WALTER W . KREIMANN, Associate Director
*On loan from the Federal Reserve Bank of Boston.
DIVISION OF FEDERAL
BANK OPERATIONS
RESERVE
JAMES R . KUDLINSKI, Director
CLYDE H . FARNSWORTH, JR., Deputy Director
WALTER ALTHAUSEN, Assistant Director
CHARLES W . BENNETT, Assistant Director
BRIAN M . CAREY, Assistant Director
LORIN S . MEEDER, Assistant Director
P . D . RING, Assistant Director
RAYMOND L . TEED, Assistant Director
Contingency
A 72
Federal Reserve Bulletin • January 1980
FOMC and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
PAUL A . VOLCKER,
Chairman
JOHN BALLES
ROBERT BLACK
PHILIP E . COLDWELL
MURRAY A L T M A N N ,
MONROE KIMBREL
ROBERT MAYO
J. CHARLES PARTEE
EMMETT J. RICE
Secretary
NORMANDR. V. BERNARD, Assistant
NEAL L. PETERSEN, General
Counsel
JAMES H . OLTMAN,
Secretary
Deputy General Counsel
ROBERT E. MANNION, Assistant
General
STEPHEN H . AXILROD,
Economist
ALAN R . HOLMES, Adviser for Market
Counsel
Operations
HARRY BRANDT, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
FREDERICK H . SCHULTZ
N A N C Y H . TEETERS
HENRY C . WALLICH
EDWARD C. ETTIN, Associate
Economist
GEORGE B. HENRY, Associate
Economist
PETER M. KEIR, Associate
Economist
MICHAEL KERAN, Associate
Economist
JAMES L. KICHLINE, Associate
Economist
JAMES PARTHEMOS, Associate
Economist
KARL SCHELD, Associate
Economist
EDWIN M. TRUMAN, Associate
Economist
JOSEPH S. ZEISEL, Associate
Economist
PETER D . STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SCOTT E. PARDEE, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
ROGER E. ANDERSON, Seventh District
CLARENCE C . BARKSDALE, Eighth District
CLARENCE G. FRAME, Ninth District
HENRY S. WOODBRIDGE, JR., First District
WALTER B . WRISTON, Second District
WILLIAM B . EAGLESON, JR., Third District
MERLE E. GILLIAND, Fourth District
J. O W E N COLE, Fifth District
FRANK A. PLUMMER, Sixth District
J. W. MCLEAN, Tenth District
JAMES D. BERRY, Eleventh District
CHAUNCEY E. SCHMIDT, Twelfth District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
CONSUMER ADVISORY
Secretary
COUNCIL
WILLIAM D . WARREN,
MARCIA A. HAKALA,
JULIA H . B O Y D , W a s h i n g t o n , D . C .
ROLAND E . BRANDEL, San Francisco, California
ELLEN BROADMAN, W a s h i n g t o n , D . C .
JAMES L . BROWN, Milwaukee, Wisconsin
MARK E . B U D N I T Z , Atlanta, Georgia
ROBERT V. BULLOCK, Frankfort, Kentucky
RICHARD S. D'AGOSTINO, Philadelphia, Pennsylvania
JOANNE FAULKNER, N e w Haven, Connecticut
VERNARD W. H E N L E Y , Richmond, Virginia
JUAN JESUS HINOJOSA, McAllen, Texas
SHIRLEY T. HOSOI, LOS Angeles, California
F. THOMAS JUSTER, Ann Arbor, Michigan
RICHARD F. KERR, Cincinnati, Ohio
ROBERT J. K L E I N , New York, New York
Secretary
Los Angeles, California, Chairman
Omaha, Nebraska, Vice Chairman
M. K U H N L E Y , Minneapolis, Minnesota
J. M C E W E N , S.J., Boston, Massachusetts
R. C. MORGAN, El Paso, Texas
HARVEY
ROBERT
MARGARET REILLY-PETRONE, Upper Montclair, N e w Jersey
RENE REIXACH, Rochester, New York
FLORENCE M. RICE, New York, New York
RALPH J. ROHNER, W a s h i n g t o n D . C .
HENRY B . SCHECHTER, W a s h i n g t o n , D . C .
PETER D . SCHELLIE, W a s h i n g t o n , D . C .
E. G. SCHUHART, II, Amarillo, Texas
CHARLOTTE H . SCOTT, Charlottesville, Virginia
RICHARD A. V A N WINKLE, Salt Lake City, Utah
RICHARD D. WAGNER, Simsbury, Connecticut
MARY W. WALKER, Monroe, Georgia
A 73
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
..02016
Robert M. Solow
Robert P. Henderson
Frank E. Morris
James A. Mcintosh
NEW YORK*
.,10045
Robert H. Knight
Boris Yavitz
Frederick D. Berkeley, III
Vacancy
Thomas M. Timlen
John W. Eckman
Werner C. Brown
David P. Eastburn
Richard L. Smoot
Robert E. Kirby
Arnold R. Weber
Lawrence H. Rogers, II
G. J. Tankersley
Willis J. Winn
Walter H. MacDonald
Maceo A. Sloan
Steven Muller
I. E. Killian
Robert E. Elberson
Robert P. Black
George C. Rankin
Buffalo
PHILADELPHIA
CLEVELAND*
..14240
19105
,.44101
Cincinnati
Pittsburgh
..45201
..15230
RICHMOND*
23261
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35202
,,32203
33152
..37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
,38101
MINNEAPOLIS
..55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
..59601
64198
80217
,73125
.68102
. .75222
..79999
..77001
..78295
SAN FRANCISCO .... ,94120
Los Angeles
Portland
Salt Lake City
Seattle
..90051
. .97208
84125
..98124
Vice President
in charge of branch
John T. Keane
Robert E. Showaiter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg
Vacancy
William A. Fickling, Jr.
William H. Martin, III
Copeland D. Newbern
Castle W. Jordan
Cecelia Adkins
Levere C. Montgomery
Monroe Kimbrel
Robert P. Forrestal
Robert H. Strotz
John Sagan
Jordan B. Tatter
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James F. Thompson
Frank A. Jones, Jr.
Lawrence K. Roos
Donald W. Moriarty, Jr.
Stephen F. Keating
William G. Phillips
Patricia P. Douglas
Mark H. Willes
Thomas E. Gainor
Vacancy
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Gerald D. Hines
A. J. Losee
Gene M. Woodfin
Pat Legan
Ernest T. Baughman
Robert H. Boykin
Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Wendell J. Ashton
Lloyd E. Cooney
John J. Balles
John B. Williams
Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
Pierre M.Viguerie
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
Betty J. Lindstrom
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce Jr.
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A 74
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES.
ROOM MP-510, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551.
When a charge is indicated, remittance should accompany
request and be made payable to the order of the Board of
Governors of the Federal Reserve System. Remittance from
foreign residents should be drawn on a U.S. bank. Stamps
and coupons are not accepted.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. 1974. 125 p p .
A N N U A L REPORT.
FEDERAL RESERVE BULLETIN. Monthly. $ 2 0 . 0 0 per year or
$ 2 . 0 0 each in the United States, its possessions, Canada,
BANK CREDIT-CARD A N D CHECK-CREDIT PLANS. 1968. 102
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per year or $ 1 . 7 5 each. Elsewhere, $ 2 4 . 0 0 per
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BANKING AND MONETARY STATISTICS, 1 9 1 4 - 1 9 4 1 . (Reprint
of Part I only) 1976. 682 pp. $5.00.
BANKING AND MONETARY STATISTICS, 1941-1970. 1976.
1,168 pp. $15.00.
$18.00
A N N U A L STATISTICAL DIGEST
1971-75. 1976. 339 pp. $4.00 per copy for each paid subscription to Federal Reserve Bulletin; all others $5.00
1972-76. 1977. 377 pp. $10.00 per copy.
1973-77. 1978. 361 pp. $12.00 per copy.
1974-78. 1980. 305 pp. $10.00 per copy.
FEDERAL RESERVE CHART BOOK. Issued four times a year in
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HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to Federal Reserve Chart Book includes one issue.
$1.25 each in the United States, its possessions, Canada,
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$ 1 3 . 5 0 per year or $ . 3 5 each. Elsewhere, $ 2 0 . 0 0 per year
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SELECTED INTEREST A N D EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $15.00 per year or $.40 each in
the United States, its possessions, Canada, and Mexico;
10 or more of same issue to one address, $13.50 per year
or $.35 each. Elsewhere, $20.00 per year or $.50 each.
T H E FEDERAL RESERVE A C T , as amended through December
1976, with an appendix containing provisions of certain
other statutes affecting the Federal Reserve System. 307
pp. $2.50.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
PUBLISHED INTERPRETATIONS OF THE BOARD OF GOVER-
NORS, as of Dec. 31, 1979. $7.50.
1976 Edition. 1977. 304 pp. $4.50
each; 10 or more to one address, $4.00 each.
INDUSTRIAL PRODUCTION:
pp. $1.00 each; 10 or more to one address, $.85 each.
SURVEY OF CHANGES IN FAMILY FINANCES. 1 9 6 8 . 3 2 1 p p .
$1.00 each; 10 or more to one address, $.85 each.
REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY
OF THE U . S . GOVERNMENT SECURITIES MARKET. 1969.
48 pp. $.25 each; 10 or more to one address, $.20 each.
JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVERNMENT SECURITIES MARKET: STAFF STUDIES—PART
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each. Part 2, 1971. 153 pp. and Part 3. 1973. 131 pp. Each
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OPEN MARKET POLICIES AND OPERATING PROCEDURES—
STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to
one address, $1.75 each.
REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHANISM. Vol. 1. 1 9 7 1 . 2 7 6 p p . Vol. 2. 1971. 173 p p . Vol. 3.
1972. 220 pp. Each volume $3.00; 10 or more to one address, $2.50 each.
T H E ECONOMETRICS OF PRICE DETERMINATION
CONFER-
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$4.50 each. Paper ed. $4.00 each; 10 or more to one address, $3.60 each.
FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE
FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 4 8 7
pp. $4.00 each; 10 or more to one address, $3.60 each.
LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS.
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IMPROVING THE MONETARY AGGREGATES: REPORT OF THE
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each.
A N N U A L PERCENTAGE RATE TABLES (Truth in Lending—
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volume $1.00; 10 or more of same volume to one address, $.85 each.
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UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one
address, $1.50. each.
T H E BANK HOLDING
COMPANY MOVEMENT TO 1978:
A
COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to
one address, $2.25 each.
IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS.
1978. 170 pp. $4.00 each; 10 or more to one address,
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1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each.
FLOW OF F U N D S . 1979. 171 pp. $1.75 each; 10 or more to
one address, $1.50 each.
A 75
CONSUMER EDUCATION PAMPHLETS •
Short pamphlets suitable for classroom use. Multiple
copies available without charge.
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors,
Lawyers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
MEASUREMENT OF CAPACITY UTILIZATION: PROBLEMS AND
TASKS, by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E. Kenessey. July 1979.
264 pp.
THE
MARKET
FOR
FEDERAL
FUNDS
AND
REPURCHASE
AGREEMENTS, by Thomas D. Simpson. July 1979. 106 pp.
IMPACT OF B A N K H O L D I N G COMPANIES ON COMPETITION
AND PERFORMANCE IN BANKING MARKETS, b y S t e p h e n
A. Rhoades and Roger D. Rutz. Aug. 1979. 30 pp.
T H E G N M A - G U A R A N T E E D PASSTHROUGH SECURITY: MARKET DEVELOPMENT A N D IMPLICATIONS FOR THE GROWTH
A N D STABILITY OF HOME MORTGAGE L E N D I N G , b y
David F. Seiders. Dec. 1979. 65 pp.
Printed in Full in the Bulletin
AN
ASSESSMENT
OF B A N K
HOLDING
COMPANIES,
by
Robert J. Lawrence and Samuel H. Talley. January 1976.
REPRINTS
Except for Staff Studies, and some leading articles, most
of the articles reprinted do not exceed 12 pages.
W H A T TRUTH IN L E N D I N G M E A N S TO Y O U .
STAFF STUDIES
Studies and papers on economic and financial subjects that
are of general interest.
Summaries Only Printed in the Bulletin
Requests to obtain single copies of the full text or to be
added to the mailing list for the series may be sent to Publications Services.
INTEREST RATE CEILINGS A N D DISINTERMEDIATION, b y E d -
ward F. McKelvey. Sept. 1978. 105 pp.
T H E RELATIONSHIP B E T W E E N RESERVE RATIOS A N D THE
MONETARY AGGREGATES U N D E R RESERVES A N D F E D ERAL F U N D S RATE OPERATING TARGETS, b y K e n n e t h J.
Kopecky. Dec. 1978. 58 pp.
TIE-INS B E T W E E N THE GRANTING OF CREDIT A N D SALES OF
INSURANCE BY B A N K HOLDING COMPANIES AND OTHER
LENDERS, by Robert A. Eisenbeis and Paul R. Schweitzer.
Feb. 1979. 75 pp.
GEOGRAPHIC EXPANSION OF BANKS A N D CHANGES IN BANK-
ING STRUCTURE, by Stephen A. Rhoades. Mar. 1979. 40
pp.
IMPACT OF THE DOLLAR DEPRECIATION ON THE U . S . PRICE
LEVEL: A N ANALYTICAL SURVEY OF EMPIRICAL ESTI-
MATES, by Peter Hooper and Barbara R. Lowrey. Apr.
1979. 53 pp.
INNOVATIONS IN B A N K LOAN CONTRACTING: RECENT EVIDENCE by Paul W. Boltz and Tim S. Campbell. May 1979.
40 pp.
Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised
Series. 7/72.
Yields on Newly Issued Corporate Bonds. 9/72.
One-Bank Holding Companies Before the 1970 Amendments. 12/72.
Yields on Recently Offered Corporate Bonds. 5/73.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revision of Money Stock Measures. 2/76.
Revised Series for Member Bank Deposits and Aggregate Reserves. 4/76.
Industrial Production— 1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
New Estimates of Capacity Utilization: Manufacturing and
Materials. 11/76.
Bank Holding Company Financial Developments in 1976. 4/77.
Survey of Terms of Bank Lending—New Series. 5/77.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970's. 9/78.
Redefining the Monetary Aggregates. 1/79.
U.S. International Transactions in 1978. 4/79.
Implementation of the International Banking Act. 10/79.
Changes in Bank Lending Practices, 1977-79. 10/79.
A 76
Index to Statistical Tables
References are to pages A-3 through A-68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 11,25,27
Agricultural loans, commercial banks, 18,20-22, 26
Assets and liabilities (See also Foreigners)
Banks, by classes, 16, 17,18,20-23,29
Domesticfinancecompanies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles
Consumer installment credit, 42,43
Production, 48,49
BANKERS balances, 16, 18, 20, 21, 22. (See also Foreigners)
Banks for Cooperatives, 35
Bonds (See also U.S. government securities)
New issues, 36
Yields, 3
Branch banks
Assets and liabilities of foreign branches of U.S. banks, 56
Liabilities of U.S. banks to their foreign branches, 23
Business activity, 46
Business expenditures on new plant and equipment, 38
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 16, 17, 19,20
Federal Reserve Banks, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans
Commercial banks, 15, 18,26
Weekly reporting banks, 20, 21,22,23, 24
Commercial banks
Assets and liabilities, 3, 15-19, 20-23
Business loans, 26
Commercial and industrial loans, 24, 26
Consumer loans held, by type, 42,43
Loans sold outright, 23
Number, by classes, 16, 17,19
Real estate mortgages held, by type of holder and
property, 41
Commercial paper, 3, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer installment credit, 42,43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits, taxes, and dividends, 37
Security issues, 36,65
Cost of living (See Consumer prices)
Credit unions, 29,42,43
Currency and coin, 5,16,18
Currency in circulation, 4,14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 13,15,19
Banks, by classes, 16, 17,19,20-23
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types)
Banks, by classes, 3, 16, 17,19,20-23,29
Federal Reserve Banks, 4,12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11,12,13,34
Federal and federally sponsored credit agencies, 35
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 30,35
Federal funds, 3,6, 18, 20, 21, 22,27,30
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35,40,41
Federal Housing Administration, 35,40,41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35,41
Federal National Mortgage Association, 35,40,41
Federal Reserve Banks
Condition statement, 12
Discount rates (See Interest rates)
U.S. government securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12,13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22,42, 43
Paper, 25,27
Financial institutions, loans to, 18,20-22
Float, 4
Flow of funds, 44,45
Foreign
Currency operations, 12
Deposits in U.S. banks, 4,12,19,20,21,22
Exchange rates, 68
Trade, 55
Foreigners
Claims on, 56, 58,61,62, 63,67
Liabilities to, 23, 56-60, 64-66
GOLD
Certificates, 12
Stock, 4,55
Government National Mortgage Association, 35,40,41
Gross national product, 52,53
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52,53
Industrial production, 46,48
Installment loans, 42,43
Insurance companies, 29, 32,33,41
A 77
Insured commercial banks, 17, 18,19
Interbank loans and deposits, 16,17
Interest rates
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3,8
Foreign countries, 68
Money and capital markets, 3,27
Mortgages, 3,40
Prime rate, commercial banks, 26
Time and savings deposits, 10
International capital transactions of the United States, 56-67
International organizations, 56-61,64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types)
Banks, by classes, 16,17,18,20,21,22,29
Commercial banks, 3,15,16,17,18
Federal Reserve Banks, 12,13
Life insurance companies, 29
Savings and loan associations, 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 16, 17, 18, 20-23, 29
Commercial banks, 3,15-18,20-23,24,26
Federal Reserve Banks, 3,4,5,8,12,13
Insurance companies, 29,41
Insured or guaranteed by United States, 40,41
Savings and loan associations, 29
MANUFACTURING
Capacity utilization, 46
Production, 46,49
Margin requirements, 28
Member banks
Assets and liabilities, by classes, 16,17, 18
Borrowings at Federal Reserve Banks, 5,12
Number, by classes, 16, 17, 19
Reserve position, basic, 6
Reserve requirements, 9
Reserves and related items, 3,4,5,15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3,15
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41
NATIONAL banks, 17
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSONAL income, 53
Prices
Consumer and producer, 46,51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46,48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 18,20-22,29,41
Real estate loans—continued
Life insurance companies, 29
Mortgage terms, yields, and activity, 3,40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves
Commercial banks, 16, 18, 20,21,22
Federal Reserve Banks, 12
Member banks, 3,4, 5,15,16,18
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42,43,46
SAVING
Flow of funds, 44,45
National income accounts, 53
Savings and loan assns., 3, 10, 29, 33,41,44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 28
Special drawing rights, 4, 12, 54, 55
State and local governments
Deposits, 19,20,21,22
Holdings of U.S. government securities, 32, 33
New security issues, 36
Ownership of securities of, 18,20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities)
New issues, 36
Prices, 28
TAX receipts, federal, 31
Time deposits, 3,10, 13, 15,16,17,19,20,21,22,23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4,12,30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. government balances
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4,12, 30
U.S. government securities
Bank holdings, 16, 17, 18,20,21,22,29, 32,33
Dealer transactions, positions, andfinancing,34
Federal Reserve Bank holdings, 4,12,13, 32, 33
Foreign and international holdings and transactions, 12,
32, 64
Open market transactions, 11
Outstanding, by type and ownership, 32, 33
Rates, 3,27
Utilities, production, 49
VETERANS Administration, 40,41
WEEKLY reporting banks, 20-24
Wholesale prices, 46, 51
YIELDS (See Interest rates)
A78
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
Helena
Chicagi
c
isco
'ngeles
Dallas®
January 1978
ALASKA
LEGEND
©
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
•
Federal Reserve Bank Facility
Board of Governors of the Federal Reserve
System
@FedFRASER