Full text of Federal Reserve Bulletin : January 1981
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VOLUME 67 •
NUMBER 1 •
JANUARY 1981
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
Naomi P. Salus, Coordinator
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. The artwork is provided by the Graphic Communications Section under the
direction of Peter G. Thomas. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.
Table of Contents
L
THE ECONOMY
IN
Actions taken to facilitate quarterly reporting by small depository institutions.
1980
Economic activity was about unchanged
over 1980, but the year was characterized
by turbulence against a backdrop of high inflation.
13
STAFF
Amendments to Regulation E to permit
creditors to debit their customers' accounts
automatically for repayment of preauthorized overdraft credit.
STUDIES
"Performance and Characteristics of Edge
Corporations" reviews the operations of
Edge corporations, including their types
of customers, activities, financial performance, and effects on local markets.
15
Adoption of revised schedule of operating
hours for the dispatch of funds over the
System's wire network.
INDUSTRIAL
27
At its meeting on November 18, 1980, the
Committee agreed that open market operations in the period until the next meeting
should be directed toward expansion of reserve aggregates consistent with growth of
M-1A, M-1B, and M-2 over the Septemberto-December period at annual rates of
about 2LH percent, 5 percent, and VU percent respectively, or somewhat less, provided that in the period before the next regular meeting the weekly average federal
funds rate remained within a range of 13 to
17 percent. While some shortfall from the
specified rates of monetary growth would
be accepted, it was also understood that operations would not be directed toward placing substantial additional pressures on bank
reserve positions unless growth of the monetary aggregates and the associated demands for reserves proved to be significantly greater than anticipated.
PRODUCTION
Output increased about 1.0 percent in December.
17
STATEMENT
TO
CONGRESS
Paul A. Volcker, Chairman, Board of Governors, discusses recent monetary policy
and economic developments and outlines
some of the key issues relating to monetary
policy for 1981 and beyond, before the Senate Committee on Banking, Housing, and
Urban Affairs, January 7, 1981.
23
ANNOUNCEMENTS
Setting of schedules of fees for certain Federal Reserve services.
Proposals to amend Regulations D and Q to
permit the establishment in the United
States of international banking facilities.
Gross earnings of the Federal Reserve
Banks amounted to almost $13 billion in
1980.
Creation of Thrift Institutions Advisory
Group.
New members and meeting of Consumer
Advisory Council.
RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
35
LEGAL
DEVELOPMENTS
Amendments to Regulations C, D, H, K,
and Y and to regulations of the Depository
Institutions Deregulation Committee; various rules and bank holding company and
bank merger orders; and pending cases.
Al
FINANCIAL
AND B USIN ESS S TA TISTICS
A3
A44
A52
A67
Domestic Financial Statistics
Domestic Nonfinancial Statistics
International Statistics
Special Tables
A 7 4 FEDERAL OPEN MARKET
AND STAFF; ADVISORY
A75 FEDERAL RESERVE BANKS,
AND OFFICES
A71 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND
SPECIAL
TABLES
A76 FEDERAL RESERVE
PUBLICATIONS
AH
A78 /jVDEA- TO STATISTICAL
BOARD OF GOVERNORS
AND
STAFF
COMMITTEE
COUNCILS
A 8 0 MAP OF FEDERAL
BRANCHES,
BOARD
TABLES
RESER VE S YSTEM
The Economy in 1980
Mark A. Wasserman and Shirley N. Watt of the
National Income Section of the Board's Division
of Research and Statistics prepared this article.
The past year was characterized by a remarkable
degree of turbulence against a backdrop of high
inflation. But as 1980 ended, the level of economic activity was little different from a year earlier.
A sharp, but unusually short recession in the first
part of the year was followed by recovery in the
second half (charts 1 and 2). The absence of any
significant increase in output over the year reflected in part the influence of fiscal and monetary policies, which had been directed toward restraining growth of aggregate demand in an effort
to reduce inflationary pressures. Yet despite the
weakness of activity, prices and wages rose rapidly to make 1979-80 one of the most severe inflationary periods in this century.
The worsening inflation during the past two
years was attributable to another huge increase
in international oil prices as well as to adverse
developments in the underlying determinants of
prices. The price of imported crude oil more than
doubled from the end of 1978 to the middle of
1. Growth in real G N P
6
4
2
+
0
2
4
1974
1976
1978
1980 " ^ j 2 "79* ".gJJ2
Department of Commerce data. Half-yearly data are at annual rates.
In all charts, "percentage change" is from final quarter of preceding
period to final quarter of period indicated; "real" is in terms of 1972
dollars.
1980 (chart 3). Higher prices directly increased
the prices of refined petroleum products and indirectly boosted the prices of numerous other
goods and services. Inflationary pressures also
were intensified by double-digit increases in unit
labor costs over the past two years. These increases reflected in part an acceleration of wages
in response to past price rises. In addition, cost
pressures were exacerbated by the decline in
productivity in the nonfarm business sector during 1979-80.
The principal objective of the nation's economic policies during the past two years has
been to reduce the rate of inflation. Monetary
policy has been focused on gradually restraining
the growth of the monetary and credit aggregates
to rates consistent with the achievement of price
stability. Accordingly, the Federal Open Market
Committee early last year announced annual
ranges for growth of the monetary aggregates
that were below the ranges of 1979.
During 1979 and early 1980, serious imbalances and overextensions developed in the economy, leaving consumers and businesses vulnerable to a slowdown in activity. Growth of real
disposable personal income during this period
"was weak, partly as a result of the sizable transfer of income to foreign oil producers. With income growth sluggish and consumers apparently
desiring to maintain living standards, individuals
reduced their rate of saving in late 1979 and early
1980. Balance sheets were strained further by a
record increase in borrowing by consumers during 1979, which had pushed the share of income
devoted to servicing outstanding household debt
to a new high. In the business sector, increases
in capital expenditures in 1979 and early 1980 exceeded the growth of internal funds. As a result,
short- and intermediate-term borrowing was especially large, so that aggregate measures of corporate liquidity deteriorated. These strains on
2
Federal Reserve Bulletin • January 1981
consumers and businesses, occurring in the context of restrictive fiscal and monetary policies,
contributed to a retrenchment of economic activity in early 1980.
Although not evident at the time, the 1980 cyclical peak was reached in January. Indeed, in
the opening months of the year, the apparent resistance of the economy to recessionary pressures surprised many observers. At the same
time, inflation expectations were rising rapidly,
in part because of unsettled international political conditions. Intensified expectations of inflation also contributed to substantial speculation in
commodity markets. Dramatic price increases
occurred not only for precious metals such as
gold and silver but also for several basic industrial commodities, including copper and aluminum
scrap.
In this environment, on March 14 the President announced a broad anti-inflation program,
including the invocation of the Credit Control
Act of 1969. Under that authority, the Board of
Governors announced a set of temporary credit
restraint measures aimed at reinforcing the administration's anti-inflation efforts and the restrictive monetary policies already in place while
insuring, to the extent possible, that credit would
remain available for productive uses.
During the second quarter, real gross national
product fell at a record pace for the postwar period as the general contraction already in progress
was aggravated by a curtailment of the supply
of and demand for credit associated with the spe-
2. Output and employment
Index, 1967=100
INDUSTRIAL PRODUCTION
Motor vehicles and )
construction supplies
tV
i
t i
t
i
Change from previous year, millions of persons
NONFARM PAYROLL EMPLOYMENT
Wf\ Total
Manufacturing
Industrial production, Federal Reserve data. Employment, Department of Labor data.
3. Price of imported oil
Dollars per barrel
• H H H 1
1974
1976
1978
1980
Department of Commerce data.
cial credit programs. During this period, consumer and business loans at commercial banks
contracted, the narrow monetary aggregates
dropped sharply, and growth of the broader aggregates decelerated. In light of these developments, a phaseout of the special credit programs
began late in the spring and was completed in
July. The rebound of economic activity after
midyear was faster than most forecasters generally had expected; GNP in real terms grew about
VU percent at an annual rate over the second half
of 1980. The recovery was especially sharp in the
housing and automobile industries, areas that
had been severely affected by the recession.
Personal consumption expenditures were particularly affected during the contraction as a consequence of accumulated weakness in the growth
of real disposable income and the strains on balance sheets. Moreover, in the second quarter,
consumers cut back considerably on their use of
credit, even in areas not restricted by the credit
programs. The curtailment of spending during
the first half was concentrated in purchases of
consumer durable goods, especially domestic automobiles. Residential construction activity also
plummeted as mortgage interest rates rose to record postwar levels and some lenders stopped
issuing mortgages entirely. The May trough in
housing starts was close to the postwar low. Personal consumption expenditures and housing
starts rebounded during the second half to levels
that had prevailed in the early months of the year.
In the business sector, capital outlays in real
terms decreased after the first quarter, declining
more rapidly than overall activity. The falloff in
spending for nonresidential structures was especially pronounced. Businesses diminished their
The Economy in 1980
exposure to risk during 1980 by maintaining a
cautious attitude toward inventory investment;
inventory accumulation during the first half of
the year was quite small. Nonetheless, the severe falloff in final sales in the second quarter
raised inventory-sales ratios substantially, and
businesses liquidated inventories in the third
quarter.
During the past year, federal government purchases of goods and services in real terms rose
rapidly, partly because of defense spending. In
contrast, purchases by state and local governments were virtually unchanged over the year,
reflecting less favorable fiscal and financial
conditions.
As in recent years, the foreign sector provided
considerable support to the economy in 1980.
Net exports rose in real terms partly because of
relatively weaker economic activity in the
United States compared with that of its major
trading partners. Also, the larger surplus was
probably associated with the lagged effects of the
earlier depreciation of the dollar. During 1980,
the weighted-average exchange rate for the dollar fluctuated widely in response to variations in
relative interest rates; by the end of 1980, the
dollar was about 5LH percent above the year-earlier level.
PRICES
Despite the slower growth of overall activity in
1979 and the contraction during the first half of
1980, inflationary pressures remained intense last
year. Over the four quarters of 1980, the fixedweight price index for gross domestic business
product (GBP), a broad measure of prices in the
economy, rose 93U percent, about x h percentage point more than in 1979. The consumer price
index, as well as the producer price index for finished goods, increased about \2XU percent over
the four quarters of 1980, close to the extraordinarily high rates recorded in the previous year
(chart 4).
Unlike 1979, when the acceleration of prices
was heavily concentrated in the energy sector,
no single factor accounted for last year's rise.
The direct and indirect effects of the sharp rise in
energy prices and, later in the year, a surge in
food prices did play a significant role. But the
3
4. Prices
warn
Mm**-
mmmmm
•
C'onsijmer price index
I
.n.n
1
Gross domestic
^ b u s i n e s s product
m
—
1
1974
—
1
m1
1976
i
1
Excluding food
and ene;rgv
m
>
1
111
1
1978
i
t
L
1980
Consumer price index, Department of Labor data. Gross domestic
business product fixed-weight index, Department of Commerce data.
continuation of high inflation reflected primarily
a widespread deterioration of the underlying
price situation. This deterioration is most apparent in the aggregate price statistics that remove
the direct effects of movements in the volatile
food and energy sectors. The GBP fixed-weight
price index excluding these items increased nearly 83/4 percent during 1980, about IV2 percentage
points faster than in 1979. Similarly, the consumer price index excluding these items rose
about 12V4 percent during 1980, IV2 percentage
points faster than during the previous year. The
more rapid underlying inflation rate reflected
continued high rates of increase of unit labor
costs, which in turn were due to an acceleration
of compensation per hour and a poor performance in productivity.
Although energy prices continued to exacerbate underlying cost pressures last year, the
price rise was substantially smaller than in 1979.
At retail, energy prices rose 19 percent during
1980—about half the pace of the previous year—
with most of the increase in the early months.
The runup of energy prices resulted from sharply
higher prices of imported crude oil as well as the
progressive decontrol of domestic crude oil
prices. However, as 1980 wore on, prices in this
sector eased as consumers and businesses reduced their consumption of gasoline during the
first half of 1980 and petroleum stocks were built
up. The rapid rise in energy prices through early
1980 and the subsequent deceleration were reflected in a similar pattern for prices of energyintensive intermediate materials, such as industrial chemicals and plastics.
Despite a slowdown in energy prices in the
second half of 1980, the GBP fixed-weight mea-
4
Federal Reserve Bulletin • January 1981
sure of inflation did not improve, in part because
food prices surged under the influence of rebounding farm prices and rising costs of marketing. The acceleration in food prices during the
second half of the year brought the increase over
the four quarters to more than 10 percent. Meat
prices rose rapidly in the second half as production of pork and poultry declined. Moreover, a
severe drought in the Midwest and South reduced
agricultural supplies and added to upward price
pressures for a number of farm products. Increases in crop prices were especially large in the
second half of 1980, and their passthrough to the
retail level is expected to keep food prices rising
rapidly in 1981.
WAGES,
PRODUCTIVITY,
AND LABOR
COSTS
Wage rates accelerated during 1980 from the already fast pace recorded in the previous year.
The index of average hourly earnings for production and nonsupervisory workers in the private
nonfarm economy—a broad measure of wage
rates—rose 9LH percent over the four quarters of
1980, compared with 8 percent in 1979. The acceleration was most pronounced in the manufacturing sector, where cost-of-living escalator provisions are prevalent. Wage rates also increased
substantially in those industries in which new
collective bargaining agreements were negotiated, as union workers sought to recover some of
the recent losses in real wages. However, even in
the less unionized trade and service sectors,
wage gains during 1980 exceeded those of the
preceding year.
Hourly compensation—which includes the
cost of fringe benefits and employer contributions to social insurance as well as wages—rose
slightly more than 10 percent in 1980 compared
with about 9 percent during 1979 (chart 5). As in
recent years, fringe benefits grew more rapidly
than wage rates. A legislated change in social
security taxes also boosted compensation.
The dismal performance of productivity persisted in 1980, intensifying basic inflationary
pressures. After falling in 1979, output per hour
in the nonfarm business sector deteriorated further during the first half of 1980; such deteriora
5. Productivity and costs
Percentage change
Compensation
12
, 1 1 ,
}
Productivity
[
, • i——| ——
| J —
I
!
j
i ,
1
,
—I
'—
—
i—J ; o
Nonfarm business sector, Department of Labor data. 1980 Q4 estimates by Federal Reserve. Productivity and unit labor cost data do
not reflect the 1980 national income accounts benchmark revisions.
tion is typical of the early phase of a cyclical
downturn. However, in the second half, productivity grew very little, an unusual occurrence
during the first half year of a recovery. Consequently, over the four quarters of last year output per hour in the nonfarm business sector
showed virtually no increase. This, coupled with
the rapid rise in hourly compensation, resulted
in a double-digit increase in unit labor costs for
the second consecutive year.
INCOME
AND
CONSUMPTION
The acceleration of prices during the past two
years, at a time when growth of nominal income
was slowing, put extreme strains on household
budgets. In the latter half of 1979, consumers
chose to reduce personal saving in order to maintain living standards. However, continuation of
the squeeze on budgets prompted a substantial
downward adjustment of consumer spending
(chart 6). Retail sales in constant dollars fell at a
record postwar rate from January through May,
a trend exacerbated by the effects of the credit
restraint programs. Beginning in June, consumption expenditures rebounded with the pickup in
employment and income growth, and the easing
of credit conditions.
Nominal personal income rose at an 11 percent
annual rate during 1980, slightly faster than the
rise in consumption prices. During the first half,
The Economy in 1980
6. Income, consumption, and saving
Real consumption expenditures
9
H2
Real disposable income
-
J 5
5
Percent
10
Department of Commerce data.
personal income gains were unusually weak as
growth of wage and salary disbursements slowed
markedly and nonfarm proprietors' income declined. In addition, farm income was off because
of falling agricultural prices. In the second half,
personal income increased more rapidly as private employment rose and proprietors' income
advanced in response to the economic recovery
and to the surge in farm prices. A cost-of-living
adjustment to social security payments in July
also boosted personal income. Growth of aftertax income was restrained last year because social insurance payroll taxes increased while inflation pushed consumers into higher marginal
tax brackets. These movements in income and
taxes and concomitant rapid price increases were
reflected in the decline in real disposable income
over the first half of the year and the subsequent
rise during the second half; however, over the
four quarters of 1980, real disposable income
grew only about 1 percent, down from the already low 1979 rate of 2 percent.
The slow growth of purchasing power during
the past two years coincided with more rapid
price increases for food and energy items. Accordingly, the share of disposable income devoted to these items, which had been on a downtrend until 1973, climbed sharply to about 28
percent last year (chart 7). This was the largest
share since the mid-sixties and was reached despite a substantial cutback in the volume of gasoline purchases. In the squeeze between weak
5
income growth and these rapidly rising costs,
discretionary-type outlays bore the brunt of the
adjustment in consumer spending. Purchases of
durable goods in real terms fell 25 percent at an
annual rate in the first half of the year. Spending
on durable goods was also depressed in the second quarter by the sharp runup in interest rates
and the curtailment of borrowing associated
with the special credit restraint programs. During
the period that the programs were in effect, lenders tightened credit policies and many households were reluctant to use credit.
In the durable goods category, the sharpest decline during the first half of last year was for purchases of new cars, especially domestic models.
Total auto sales in the second quarter were at an
annual rate of 7.7 million units, 2 million units
below the pace in the fourth quarter of 1979,
while sales of domestic autos fell to an annual
rate of 5.5 million units—the slowest selling pace
of domestic autos in 20 years (chart 8). Spending
on furniture and other household durable goods
declined slightly during the first half of the year,
partly because of the drop in home sales.
Tight budgets began to constrain outlays for
nondurable goods and services by spring. Over
the year, expenditures for nondurable goods in
real terms fell about 1 percent, one of the sharpest
declines in the postwar period; real outlays on
most major categories, including food, home
heating fuel, and particularly gasoline, were
down from their levels at year-end 1979. Expenditures for services rose in real terms, but by an
exceptionally weak 3 percent over the year.
7. Share of food and energy in
disposable personal income
Percent
F i
'60
r I I T I I J } T I F I I I I T T T I
'64
"68
Department of Commerce data.
'12
'16
^80
6
Federal Reserve Bulletin • January 1981
8. Auto sales
Annual rate, millions of units
Ward's "Automotive Reports" data.
The revival of consumer spending around midyear reflected favorable developments in employment and income, increased availability and
willingness to use credit following termination of
the credit restraint programs in July, and some
easing in consumer interest rates. The pickup
was consistent with the findings of household
surveys, which showed an improvement in consumer confidence between April and November.
Although personal income taxes may be reduced in 1981, the high rate of inflation—especially for food and energy items, the scheduled
rise in social security taxes, and the increase in
taxes induced by inflation probably will restrict
any rise in real disposable income in the months
ahead. Therefore, the squeeze on household
budgets is likely to continue and consumers may
once again limit spending.
RESIDENTIAL
CONSTRUCTION
Over the year, housing activity exhibited sharp
movements, which reflected volatility in mortgage interest rates (chart 9). Private housing
starts fell from 1.7 million units in 1979 to 1.3 million units in 1980, the lowest level since 1975.
The downtrend in total private housing starts,
which had begun in the fall of 1979, steepened
during the early months of 1980. By May, starts
had fallen to a near-record postwar low of 906,000
units (annual rate) after mortgage rates topped 16
percent in April and some lenders stopped issuing mortgages. As financial conditions improved during the late spring and early summer,
real estate market activity rebounded sharply.
Sales of both new and existing homes picked up
promptly and increases in home prices accelerated. Indeed, the rebound of housing starts from
May to September was the strongest in any comparable postwar period.
However, the upward momentum was halted
in the autumn and winter as the tightening of
mortgage market conditions that had started in
early August had a restraining effect on real estate activity. Total home sales peaked in September, and starts remained on a plateau of about
IV2 million units (annual rate) during the September-December period.
9. Housing starts and home mortgage rate
Millions of units
1978
Percent
1979
1980
Housing starts are Department of Commerce data seasonally
adjusted at annual rates. Mortgage commitment rate, Federal Home
Loan Mortgage Corporation data.
The falloff in housing activity during 1980 was
concentrated in the single-family sector (chart
10). Single-family housing starts fell from 1.2 million units in 1979 to 850,000 in 1980. High financing costs and inadequate cash flow depressed
activity. In addition, the slower growth of home
prices acted to damp the investment motive for
homebuying. In recent years, the growth of average household incomes has consistently lagged
increases in average downpayments and carrying
costs involved in buying and occupying a home.
Although innovative financial instruments, such
as graduated-payment mortgages, gained wider
acceptance in 1980, standard mortgages remained
the dominant form of financing. The burden on
household budgets of the payments in the early
years of such mortgages, particularly for firsttime entrants into the mortgage market, was a
factor holding down residential sales and construction. In addition, the deceleration in the average price of existing homes sold from the near-
The Economy in 1980
10. Housing starts
Millions of units
2.0
1.5
1.0
.5
0
1980
Department of Commerce data, seasonally adjusted at annual
rates.
ly 20 percent pace of 1978 and the first half of
1979 to around 15 percent in 1980 moderated the
investment incentive for homebuying.
Starts of multifamily units totaled 440,000 in
1980, about 100,000 fewer than in 1979 and the
lowest level since 1976. Activity was strongly
supported by government subsidy programs,
with units under the Housing and Urban Development's section 8 program accounting for about
one-fourth of total multifamily starts. In the private multifamily area, cooperative and condominium construction was down only moderately from 1979; the lower cost of these units
relative to single-family houses provided some
cushion to the decline in this segment of the multifamily market. In the multifamily rental sector,
however, adverse credit conditions, relatively
small increases in rents, and market uncertainties restricted construction activity.
BUSINESS
FIXED
INVESTMENT
The fundamental determinants of capital spending were not favorable during 1979 and were
even less so in 1980. Consequently, business
fixed investment in real terms slowed during 1979
and early 1980 and declined sharply beginning
with the second quarter of last year. By the
fourth quarter of 1980, real business fixed investment was about 6 percent below the year-earlier
level (chart 11).
Both financial and nonfinancial developments
last year tended to depress capital spending. Final sales in real terms, after growing slowly in
1979, stagnated during 1980, so that the margin
7
of unutilized capital resources widened. The
capacity utilization rate in manufacturing fell
into the range of 75 to 80 percent in the second half of the year, well below the 87 percent
peak reached in early 1979 (chart 12). In addition, some investment activity probably was curtailed by the rise in long-term interest rates during 1980. Also, corporate economic profits
dropped sharply in the second quarter and, despite a recovery later in the year, remained below the levels reached in 1979. One of the few
favorable factors among the major determinants
of business spending was the general upward
trend in the stock market, which made equity financing more attractive. In addition, the need to
increase or to modify the capital stock in some
special areas, such as oil exploration and energyrelated retooling, boosted capital outlays.
The decline in investment in real terms during
1980 was most pronounced in the construction
area. Spending on nonresidential structures,
which had risen 9LH percent during 1979, fell
by about 8 percent last year; declines were especially pronounced in industrial building. Some
offset to the weakness in construction was provided by increases in petroleum drilling, stimulated in part by the phased decontrol of domestic
11. Real business fixed investment
Percentage change
un
Business fixed investment
20
Producers* durable
equipment
10
l l
+
w
•
0
10
Structures
Struc
1974
1976
1978
1980
Department of Commerce data.
oil prices. In producers' durable equipment,
marked declines occurred in outlays for motor
vehicles, agricultural equipment, and metalworking machinery. Expenditures for construction equipment also fell sharply, in line with
the general weakness in building.
By industry, capital spending slowed markedly
in the manufacturing sector, especially at durable
8
Federal Reserve Bulletin • January 1981
12. Capacity utilization in manufacturing
Percent
Federal Reserve data.
goods producers. Indeed, for the first time since
1976, increases in nominal spending for plant
and equipment by durable goods producers trailed
those of nondurable manufacturers. While most
manufacturers reported slower growth or actual
decreases in capital outlays, considerable strength
was exhibited in the electrical machinery and
aircraft industries. Also, investment by producers of paper, chemicals, and petroleum was relatively strong. Growth of capital outlays weakened
in several nonmanufacturing industries. Transportation carriers cut spending, and public utility outlays were about unchanged. In contrast,
the mining industry reported a fairly sizable advance.
According to currently available indicators,
business fixed investment is likely to remain
weak in 1981, especially outside the defense and
energy-related sectors. Although orders and contracts for plant and equipment in real terms rose
during the second half of 1980, by the fourth
quarter they still were below year-earlier levels.
Longer-term commitments outside the petroleum industry, such as capital appropriations, also are running below year-earlier levels. In addition, surveys of plans for plant and equipment
spending taken toward the end of 1980 suggest
little if any advance in real outlays for calendar
year 1981.
BUSINESS
INVENTORY
13. Ratio of stocks to sales
Constant-dollar basis
1.7
1.6
INVESTMENT
As 1980 began, businesses maintained a cautious
attitude toward inventory accumulation. A
weakening of final sales was widely expected,
and the upturn in interest rates toward the end of
1979 had substantially increased carrying costs.
Although total stock accumulation remained
slight in real terms during the first half of 1980,
the extraordinarily rapid decline in final sales
pushed inventory-sales ratios up sharply. By
May, the ratio for manufacturing and trade had
nearly reached the peak level of the 1973-75
cycle (chart 13). This situation was corrected in
the third quarter, when inventories were liquidated as the pickup of final sales helped trim excess stocks; by the fourth quarter most stocksales ratios had been reduced significantly.
Inventory developments during the first three
quarters of the year differed for the trade and
manufacturing sectors. In the trade sector, liquidation of stocks in real terms occurred during the
first half of the year, especially at the retail level.
To a considerable extent, this reduction represented a continued correction by the automobile
industry of the overhang that had resulted from
the previous summer's disruptions of energy
supplies. However, dealers' auto stocks relative
to sales rose to excessive levels in the second
quarter as domestic sales fell to the lowest rate in
two decades. Although production was kept below unit sales in the third quarter, the days supply of autos remained relatively high throughout
the fall.
In the manufacturing sector, stocks in real
terms continued to rise through April at both durable and nondurable goods producers. To some
extent, this increase reflected rising orders for
items with long lead times such as commercial
aircraft and defense equipment. But as sales fell
in the second quarter, stock-sales ratios rose
sharply in a wide range of industries. In the pri-
1.5
Department of Commerce data.
The Economy in 1980
mary metal, transportation equipment, food and
beverage, and petroleum and coal industries,
these ratios surpassed the peaks reached in the
1973-75 recession. However, most overhangs
were at least partially corrected during the third
quarter when inventories were liquidated as shipments picked up.
The advance in final sales during the fourth
quarter helped businesses to keep inventories
under relatively close control, and inventorysales ratios generally fell. The decline in the ratio
was especially pronounced at manufacturers and
retailers of durable goods.
9
14. Federal receipts, expenditures, and deficit
Billions of dollars
600
500
!
400
Receipts
u ' u ' u
L / — ^
• • H H ^ ^ H H H n ^ H H I
l£4
1976
1978
i
1980
Department of Commerce national income accounts data.
THE FEDERAL
SECTOR
With the downward trend in general economic
activity in 1980, reduced growth in income
damped the rise in federal tax receipts, while
high unemployment boosted income security
outlays. As a result of these developments and a
significant increase in defense purchases, the
budget deficit on a national income accounts
basis rose from $15 billion in calendar year 1979
to slightly under $62 billion in 1980 (chart 14).
For the calendar year, tax receipts grew 9 percent, compared with the brisk annual rate of increase of 15 percent registered over the preceding two years. Individual tax receipts were
restrained not only by the slow growth in nominal income but also by an unusually large increase in federal income tax refunds that resulted
from overwithholding in 1979. Moreover, individual tax receipts would have risen even more
slowly had inflation not moved individuals into
higher marginal tax brackets. Corporate profit
accruals, reflecting the impact of the recession
on earnings, fell 8 percent in calendar year 1980;
this was the first decline since 1975.
On the expenditures side, transfer payments,
which account for about 40 percent of the federal
budget, rose about 21 percent during 1980, the
largest increase since the 1973-75 recession. This
increase in transfers was due primarily to higher
unemployment insurance benefits and to a 14.3
percent cost-of-living rise for social security recipients. Over the four quarters of 1980, purchases of goods and services rose 20 percent in
1980— 574 percent in real terms, the largest real
increase in 13 years. National defense purchases were particularly strong, rising 20 percent
in nominal dollars and 6 percent in real terms.
In early 1980, in response to the curtailment of
grain sales to the Soviet Union, nondefense
spending was bolstered by the agricultural price
support operations of the Commodity Credit
Corporation. CCC spending, however, fell
sharply around midyear as farmers, reacting to
higher agricultural prices, began to repay CCC
loans and redeem the crops used as collateral.
Federal grants to states and localities increased
only moderately. Finally, the large deficit and
higher interest rates resulted in a sizable rise in
interest payments over the course of the year.
STATE AND LOCAL
GOVERNMENTS
Activity in the state and local sector was curtailed last year. In real terms, purchases of goods
and services fell fractionally over the four quarters of 1980, following a VU percent increase
during 1979. To some extent, this slowdown
reflected long-term trends related to demographic
factors, such as the contraction in the school-age
population. However, in 1980 the slower growth
of federal funds and the stringent conditions
that emerged in financial markets early in the
year also were important influences on spending
patterns. Record interest rates caused the postponement or cancellation of many municipal
10
Federal Reserve Bulletin • January 1981
bond issues, and real investment outlays were
down 8V2 percent over the four quarters of 1980.
Moreover, only 140,000 persons were added to
the payrolls of states and localities during the
year, the smallest gain in three decades; enrollments in public employment programs under the
Comprehensive Employment and Training Act
dropped, and many governments allowed attrition to reduce the number of employees.
State and local government revenues grew
about 9 percent over the four quarters of the
year, slightly faster than during 1979; revenues
excluding federal grants-in-aid increased about
IOV2 percent, while federal grants rose only
43/4 percent. The slowdown in federal funding
last year was in sharp contrast to the 25 percent
average annual rise during the 1970s. The sector's operating balance showed a small surplus
for calendar year 1980, in marked contrast to the
15. State and local governments
Billions of dollars
Operating balance
n
!
U
1974
i
MIB
1976
n^M-f^ - uti
1978
1980
Department of Commerce data. The operating balance for 1980 is the
average of the first three quarters.
sizable surpluses recorded in 1977 and 1978.
(The operating balance is the total balance excluding net changes in social insurance funds.)
By year-end, however, the weakened fiscal positions of many states and localities and the curtailment of services appeared to have made voters cautious in regard to tax-relief and spendinglimitation initiatives, in marked contrast to their
popularity in recent years. Such measures were
on the ballots in 15 states and numerous localities
in November, but most were defeated. The notable exception was in Massachusetts, where
voters endorsed a sharp reduction in property
taxes.
INTERNATIONAL
TRADE
Net exports of goods and services during 1980
provided substantial support for economic activity in the United States. Net exports of goods and
services (on a national income accounts basis) in
real terms increased from about $42 billion in the
fourth quarter of 1979 to $53 billion a year later,
because of both an increase in merchandise exports and a decline in merchandise imports (chart
16). Net services and military transactions in real
terms showed little change during the year. In
nominal terms, the net export surplus increased
$27 billion during 1980.
The volume of nonagricultural merchandise
exports expanded about 4 percent over 1980—
the third year of historically high rates of
growth—despite a slowdown in real economic
growth in the nation's major industrial trading
partners. Most notable were increases in the exports of machinery, aircraft, and industrial supplies. The persistently strong U.S. export performance, as well as its wide distribution by
region and type of export, suggests that the improved competitive position of U.S. exporters
brought about by the 1977-78 depreciation of the
dollar's exchange value has continued to contribute to the strengthening of the U.S. external position. The volume of agricultural exports declined slightly during 1980 but still remained at a
historically high level. The U.S. embargo on
grain shipments to the Soviet Union, announced
January 4, 1980, limited amounts shipped to that
country to 8 million metric tons (the maximum
allowed without further negotiation under the
terms of the grain agreement with the U.S.S.R.);
this amount was considerably less than the
amount of sales that had been expected. However, as other major grain-exporting countries
shifted their shipments to the U.S.S.R., the
United States picked up sales in nontraditional
markets. In addition, grain demand was larger
than expected in Eastern Europe, China, and
Latin America.
The volume of imports of merchandise into the
United States dropped sharply in response to the
slowdown in domestic activity. Petroleum imports, which account for about 32 percent of the
value of total merchandise imports, declined
about 27 percent in volume over the year, partly
The Economy in 1980
16. U.S. foreign transactions
Billions of 1972 dollars
Department of Commerce data.
offsetting a 38 percent increase in prices. The
reduction in the volume of oil imports was larger
than would have been expected from the weakness in U.S. economic activity alone; higher
petroleum prices apparently induced substantial
conservation effects. The volume of nonpetroleum imports declined about 6 percent; most of
the decline came in industrial supplies, particularly steel, building materials, natural gas, and
crude rubber. The volume of consumer goods
imports held fairly steady throughout the year as
did imports of capital goods. Imports of automobiles from Japan and Europe increased moderately during the year; the 10 percent increase in
value was about evenly split between price and
volume rises.
THE LABOR
MARKET
The recession in 1980 brought an end to five
years of employment expansion; between February and July, the number of workers on nonfarm
payrolls fell VU million. This severe but brief
contraction was followed by a substantial increase in employment during the second half of
the year; nonetheless, payroll employment at
year-end was still slightly below its February
peak level.
With the recession concentrated in manufacturing, the demand for factory labor, which had
begun to weaken in mid-1979, deteriorated significantly during the spring of 1980. The cumulative
decline in factory jobs through July came to 1.3
million. The cutbacks were especially large at
durable goods industries because of weak auto
11
sales and the falloff in homebuilding. Job losses
in the transportation equipment and primary and
fabricated metals industries totaled 650,000 between June 1979 and July 1980; more than half of
these layoffs occurred between April and July of
1980. In addition, more than 400,000 workers at
contract construction sites lost jobs between January and July.
The rebound in activity during the second half
of 1980 led to recalls of workers, especially in the
hard goods and building sectors. By year-end,
manufacturing employment was up about l h million from its July trough, but it was still about 3A
million short of its 1979 peak. In the construction
sector, despite a gain of 175,000 jobs, employment in that sector by December remained well
below its January high. In general, private service-producing industries were more resistant
than the goods-producing sector to the effects of
the short recession. Nevertheless, a dip in trade
employment in the spring helped hold the expansion in service-producing jobs to slightly more
than 1 million in 1980, compared with almost 13A
million in the preceding year.
Limited job opportunities in 1980, which halted the steady climb in labor force participation
that had been evident in the preceding four
years, and the general downtrend of population
growth resulted in a slower growth in the civilian
labor force. The labor force grew by about 1 million over the year compared with the average annual increase of 23/4 million during 1976-79 (chart
17). The participation rate for adult men re-
17. Labor force, employment, and unemployment
Change from previous year, millions of persons
Employment
I
^
Labor force
m
On.
wmmmmm
w
1974
Percent
i
Department ofCommercedata.
1976
i
i
1978
i
i
1980
12
Federal Reserve Bulletin • January 1981
mained essentially unchanged in 1980. The rate
for adult women also was relatively stable in contrast to previous years, when increased participation by this group was a major source of labor
force growth. The number of women aged 20 and
older entering the labor force totaled less than
900,000 in 1980, down from the almost IV2 million annual average during 1976-79. The number
of teenagers in the labor force fell in 1980 for the
second consecutive year because of both a continued decline in their population and a drop in
the participation rate of teenagers.
As labor demand slackened during the first half
of the year, the unemployment rate climbed
sharply from just under 6 percent at the end of
1979 to VI2 percent by mid-1980. With the
rebound in activity in the second half, recalls of
workers and new hires about matched overall
additions to the labor force, and the unemployment rate held around l x h percent. Through
July the largest increase in unemployment occurred among adult men, reflecting the concentration of layoffs in blue-collar jobs. Indeed, by
mid-1980 the jobless rate for men aged 25 and
older reached 572 percent, almost as high as the
rate at the trough of the 1973-75 recession. The
unemployment rate for adult women, which usually is significantly higher than that of their male
counterparts, rose much less; it reached 53A percent by mid-1980. In the latter half of the year,
joblessness among workers previously on layoff
declined; however, unemployment among women and white-collar workers continued to edge
up.
•
13
Staff Studies
The staffs of the Board of Governors of the Federal Reserve System and of the Federal Reserve
Banks undertake studies that cover a wide range
of economic and financial subjects. In some instances the Federal Reserve System finances
similar studies by members of the academic profession.
From time to time the results of studies that
are of general interest to the professions and to
others are summarized—or they may be printed
in full—in this section of the FEDERAL RESERVE
BULLETIN.
STUDY
In all cases the analyses and conclusions set
forth are those of the authors and do not necessarily indicate concurrence by the Board of Governors, by the Federal Reserve Banks, or by the
members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the BULLETIN
are available without charge. The list of Federal
Reserve Board publications at the back of each
BULLETIN includes a separate section entitled
"Staff Studies" that lists the studies that are currently available.
SUMMARY
PERFORMANCE
AND
CHARACTERISTICS
James V. Houpt—Staff,
Board of
OF EDGE
CORPORATIONS
Governors
Prepared as a staff paper.
Since its enactment in 1919, Section 25(a) of the
Federal Reserve Act has offered U.S. banks a
way to ease the effect of interstate banking restrictions for the purpose of conducting international banking business. Using this provision,
U.S. banks have established "Edge" corporations in a number of U.S. financial centers outside their home banking state. At year-end 1979,
38 banks operated 70 out-of-state banking Edges
with aggregate domestic assets of $14 billion.
These numbers represent a rise of almost 80 percent in the number of such corporations and a
tripling of their assets since 1972.
To encourage international trade by facilitating
its financing, the Congress liberalized Section
25(a) as part of the International Banking Act of
1978. This change, and the Federal Reserve
Board's June 1979 revision to its Regulation K,
ignited substantial interest in these corporations.
In the 18 months through year-end 1980, the
Board has authorized 42 new banking Edge of
fices (corporations and branches), representing a
64 percent increase in the number previously authorized.
Against the background of this long-term
growth trend and the recent surge in interest, it is
useful to examine the operations of banking Edge
corporations, the type of customers they attract,
and their activities, financial performance, and
effects on local markets. This study reviews
these areas as well as the initial impact of recent
regulatory changes. It compares Edge activities
and earnings to those of large commercial banks
and looks at the extent to which Edges have penetrated local markets. Generally, Edges in Miami
and Houston have had higher growth and profitability and perform more significant roles in
their markets than do Edges in other cities. Nevertheless, New York remains the most important
center for Edges because of its central position in
international finance.
The initial effects of the regulatory changes ap-
14
Federal Reserve Bulletin • January 1981
pear to be largely favorable. The recent increase
in Edge offices suggests that the opportunity to
branch domestically and to expand Edge leveraging has been viewed as enhancing the competitive position of Edges, which was the intent of
the Congress. Moreover, any adverse effects are
likely to be minimal. The data reviewed suggest
that the expansion of Edge corporations has not
harmed the international business of the local
banks, but may in fact have helped these banks
by making their communities more attractive as
regional centers for international trade and finance. This effect should continue to operate as
more Edges are established outside New York.
Although the capital ratios of Edges have declined slightly as a result of the more permissive
regulation, they remain high by bank standards.
The study also reviews the activities of investment Edges, the nature of their business, and the
location of their foreign subsidiaries.
•
15
Industrial Production
Released for publication January 15
Industrial production increased an estimated 1.0
percent in December, reflecting sizable output
gain in the major product and material groupings
of the index, with the exception of motor vehicles. The December rise followed upward revised increases of 1.6, 1.9, and 1.6 percent in the
preceding three months.
The index of industrial production for December, at 150.7 percent of the 1967 average, was
7.3 percent above its low of July 1980 but still
1.2 percent below a year earlier. A preliminary
estimate of the index for 1980 shows industrial
production to have been 3.5 percent below output in 1979.
Production of consumer nondurable goods
rose strongly in December, due in part to substantial gains in the output of residential utilities
and consumer fuels. However, output of consumer durable goods declined 1.3 percent, as a
sharp reduction in auto production was only
partially offset by a moderate increase in output
of home goods. Autos were assembled in December at an annual rate of 6.3 million units, about
8 percent below the rate in November. Output of
business equipment increased 0.9 percent, about
the same as in November and October. Production of construction supplies continued to advance strongly, although more slowly than in
preceding months.
Production of materials increased 1.6 percent
in December, reflecting widespread gains in the
1967 = 100
=
Grouping
p Preliminary.
e Estimated.
Seasonally adjusted, ratio scale, 1967 = 100
p
149.2
148.7
147.2
148.1
142.4
150.3
173.4
154.0
143.1
150.0
-
TOTAL INDEX
160
MATERIALS OUTPUT
PRODUCTS OUTPUT
J
I I I I 1
MATERIALS:
Nondurable
I
I
I
1
CONSUMER GOODS:
Durable / \/"'
V
Nondurable
J
1969 70 = 100
160
I I L
_
Annual rate, millions of units
16
12
10
MANUFACTURING:
—
—
A
\
— — s '
7 140
8
120
Durable
K
i
i
i
i
1
100
1980
Federal Reserve indexes, seasonally adjusted. Latest figures Decernber. Auto sales and stocks include imports.
Percentage change from preceding month
1980
6
July
Aug.
Sept.
Oct.
Nov.
Dec.
150.7
149.6
148.0
148.4
140.5
151.6
174.9
155.4
144.4
152.4
-.8
.2
.1
-.1
.1
-.1
.2
.7
.1
-2.5
1.0
.7
.3
.5
.2
.6
.1
2.1
3.5
1.5
1.6
1.0
.8
1.1
3.2
.4
.1
2.0
3.2
2.7
1.9
1.2
1.3
1.6
5.2
.3
.8
1.2
2.3
2.8
1.6
1.1
1.0
1.0
2.0
.6
.9
1.0
1.9
2.5
1.0
.6
.5
.2
-1.3
.9
.9
.9
.9
1.6
Dec.
160
Nondurable^-
6
1980
Nov.
Total industrial production
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Intermediate products
Construction supplies
Materials
output of durable, nondurable, and energy materials. The sharp rise in durable materials mainly
reflected increases in the output of equipment
parts and basic metals, the latter boosted by a
continued production rebound in the steel industry and a post-strike surge in copper. Output of
nondurable materials expanded 1.0 percent, with
large increases in the textile, paper, and chemical
areas. A large rise in production of energy materials, 0.9 percent, was due mainly to increased
coal production and electric power generation.
NOTE. Indexes are seasonally adjusted.
Percentage
change
Dec. 1979
to
Dec. 1980
-1.2
-.1
.5
-.1
-4.2
1.5
.5
-2.6
-7.3
-2.7
17
Statement to Congress
Statement by Paul A. Volcker, Chairman, Board
of Governors of the Federal Reserve System, before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, January 7, 1981.
I am happy, at the start of a new congressional
session and a new Congress, to discuss recent
monetary and economic developments and to
outline some of the key issues relating to monetary policy for 1981 and beyond. In that connection, I should also note that I reviewed the
actions of the Federal Reserve during 1980 in
greater detail in a recent statement before a subcommittee of the House Banking Committee,
which I have made available to each member of
this committee.1
As you well know, the Congress itself has
placed considerable emphasis in recent years on
the formulation of our monetary objectives in
quantitative terms. Target ranges for 1981 for
various monetary and credit aggregates were tentatively set forth at midyear in accordance with
the procedures under the Full Employment and
Balanced Growth Act of 1978 (Humphrey-Hawkins Act). Those targets are being reviewed currently by the Federal Open Market Committee
and our decisions will be reported to you next
month. At that time, of course, they can be evaluated in the light of the overall economic programs of a new administration. One of the major
themes of my remarks this morning is the interrelationship of the fiscal position and outlook of
the federal government, monetary policy, and
conditions in the credit and capital markets.
So far as 1980 is concerned, it now appears
that the level of economic output during the last
quarter of the year was about the same as during
the final quarter of 1979. However, you are well
aware of the sharp fluctuations in business activi-
1. "Recent Developments in Monetary Policy," FEDERAL
RESERVE BULLETIN, vol. 66 ( D e c e m b e r 1980), pp. 943-52.
ty during the year little anticipated in timing and
magnitude, the strong recurrent concerns that inflation might accelerate sharply or rise to a new
and higher plateau, and—related in large part to
those economic developments—the strong shortterm volatility in credit demands, interest rates,
and some measures of the money supply.
The downturn in business in the second quarter, while exceptionally sharp, was also exceptionally short. Overall growth since July or
August, while less than that immediately following most earlier recessions, has exceeded that
anticipated by virtually every business forecast
available during the summer. Employment
growth resumed, but unemployment, while below peak levels, remained on a fairly high plateau
of about l l h percent.
Some industries, such as automobiles and
housing, have fallen well short of a normal cyclical recovery and, in the case of housing at
least, pressures on credit markets are currently
being reflected in reduced activity. Some industries and areas of the country—those characterized by a strong economic growth trend,
concentrating on newer technologies or benefiting from strong energy investment—were little
affected by the recession and remain relatively
buoyant.
As business turned up, so did concern about
renewed inflationary pressures. The underlying
inflation rate today appears at least as high, and
probably higher, than a year ago. In addition, the
possibility of a renewed surge in energy and food
prices remains a particular source of concern.
But the momentum of continuing inflationary
forces throughout the economy is perhaps better
reflected in a higher rate of increase in worker
compensation, which accounts for some 75 percent of national income.
In judging monetary developments, we now
have nearly complete (but still preliminary) data
for the entire year. Measuring from the fourthquarter average of 1979 to the fourth-quarter av-
18
Federal Reserve Bulletin • January 1981
erage of 1980, both M-l series will be close to the
upper end of the growth ranges set at the beginning of the year assuming, as is appropriate, that
those ranges are adjusted for current estimates of
actual experience with transfers into negotiable
order of withdrawal (NOW) and automatic transfer service (ATS) accounts.2 M-2, on the same
quarterly basis, appears to have been V2 to 3U
percent above the upper end of its range; M-3
was roughly at the upper end, and bank credit
was well within its range. Looking at available
data for December alone, both M-l A and M-IB
appear to have been within the indicated ranges.
In my judgment, no single monetary measure
should be emphasized to the exclusion of others,
nor should undue weight be placed on short-term
changes or small deviations from targets, particularly when those deviations are not consistent
from one measure to another. We know, not just
in the United States but elsewhere, there can be
a great deal of month-to-month or quarter-toquarter volatility, especially in the narrower M-l
measures. That is particularly true when underlying economic conditions are rapidly changing.
These are technical qualifications. The basic
point remains that, judged broadly over reasonable periods of time, these monetary data are
meaningful. Most fundamentally, they are important because persistent control of the money supply must be a crucial part of any anti-inflation
effort. The ranges set forth have also become a
means of communication about our objectives,
and the statistical results are a part of the process
of accountability. They are a particularly useful
focus for policy when the inflationary process itself distorts the economic significance of interest
rates and other economic data.
Looked at from the vantage point of monetary
targeting, recent developments provide a prime
2. The difference in growth in 1980 between M-IB and
M-l A was originally assumed to be at V2 percent, and the
stated growth ranges reflected that assumption. Actual experience shows a difference of about 2 percent. Some of that
greater difference reflected shifts into ATS and NOW accounts included in M-IB from demand balances, depressing
M-l A relative to earlier assumptions. There were also shifts
into NOW and ATS accounts from savings accounts or other
sources of funds, raising M-IB relative to earlier assumptions.
Without these adjustments, M-IB in the fourth quarter was
about 3U percent above the upper end of the target range;
M-l A was somewhat above the midpoint of its target range.
illustration of both the need for and the problems
associated with restraint on monetary and credit
growth. We want to restore a solid base for renewed and prolonged economic expansion while
at the same time dealing with inflation—and
without controlling inflation the objective of sustained growth seems bound to elude us. What
springs out clearly as the lesson from the events
of the past few months is the desirability—indeed
the compelling need—to combine the monetary
restraint required to deal with inflation with appropriate and complementary fiscal and other
policies.
Creation of money and credit has clearly fallen
well short of meeting all the demands that arise in
an economy that is both expanding and inflating.
As a result, money and capital markets have
come under heavy pressure; currently, interest
rates, despite some appreciable declines in recent weeks, are still near historical highs, placing
heavy burdens on credit-dependent sectors of
the economy. While economic growth in recent
months has been greater than anticipated, there
is understandable concern that the strong interest rate pressures may result in little further
growth or actual declines in business activity in
the months ahead. And in a longer perspective,
growth has been very limited for two years,
unemployment is high, and important industries
have substantial excess capacity.
Yet, in light of the need to encourage a return to price stability, it could hardly be argued
that the growth of money and credit has been unduly constricted, whether one looks at the results
for the year as a whole or during the months of
business expansion. Indeed, some have argued
the reverse. As I already have noted, monetary
growth for the year has not fallen short of the
intentions reported to (and generally supported
by) this committee in the past; most measures
have been around the upper end of the established ranges.
What is clear in circumstances like these,
when efforts to restrain monetary growth confront strong private credit demands, is that inevitably large new borrowings by the federal
government, whether to finance budgetary deficits or off-budget programs, strongly aggravate
pressures on interest rates. As things stand, the
deficit for the current fiscal year has been esti-
Statement to Congress
mated in a range of $50 billion to $60 billion by
informed observers, and the needs of the Federal
Financing Bank could add more than $20 billion.
The demands by the federal government—the
nation's prime borrower, but itself insensitive to
interest rates—will be met. The question is how
many other potential borrowers—many with
more productive uses of money—are shouldered
aside by market pressures.
From that point of view, the restraint on money and credit creation might appear to jeopardize
prospects for business expansion and the private
job creation that would otherwise be desirable.
But the creation of more money and credit than
consistent with dealing with inflation would provide no escape from that apparent policy dilemma.
For one thing, interest rates and bond prices
can be heavily influenced by expectational factors. To the extent that economic trends and
public policies seem to be consistent with more
inflation rather than less, and to the extent that
government financing is expected to remain high,
savings will be impaired or directed to inflation
hedges, borrowing will be further stimulated, and
interest rate pressures will remain strong, despite
new money creation. Indeed, if money creation
were to validate the inflationary expectations,
the present policy problem would only be aggravated, even in the short run.
Far from finding their problems solved by
money creation, builders, thrift institutions, and
small businessmen that are particularly vulnerable to a continuing escalation of interest rates
would find their prospects worsening over time.
Put simply, I do not believe monetary policy
can reasonably take the risk of encouraging and
validating the inflationary process by simply accommodating creation of money and credit to the
amounts demanded by an inflating economy. To
be sure, strong credit demands pressing against a
limited supply can contribute to exceptionally
high interest rates for a time. But consider the
alternative. If the supply of money is not restrained, the net result would surely be to acquiesce in an inflationary process that over time
would result in still higher interest rates, prolonged indefinitely.
The ultimate purpose of monetary restraint is,
of course, to squeeze out inflation rather than
19
real growth. But monetary restraint is at best a
rough-edged tool; the restraint falls on those financing inflationary excesses and potentially
productive projects alike. The hard fact is that
in practice the purposes are typically indistinguishable. Homeownership is a cherished
American dream, and buyers and sellers alike
would like to see the process lubricated by low
mortgage rates. But the seller is also interested in
holding on to essentially inflationary gains, and
the buyer is often motivated by a desire to capitalize on future inflationary appreciation. Many
businessmen would like to expand plant or build
inventory at lower interest rates. But these borrowings also finance higher wages and other
costs. The consumer is tempted to buy now and
pay later and to maintain "investments" in presumed inflation hedges. Amidst all these mixed
motives, it seems beyond human ingenuity to
distinguish between "legitimate" and "illegitimate"—"speculative" and "nonspeculative" —
uses of credit in any systematic, sustainable way
by a system of credit allocation.
Looked at another way, restraint on money
and credit growth places broad limits on the
growth of nominal gross national product. Those
limits are not precise. For periods of months or
quarters, the relationship between changes in
money or credit and the GNP can fluctuate over
a considerable margin. At high levels of interest
rates, the market is particularly ingenious at developing new forms of "money" and economizing on the use of credit. We currently are in a
period of rapid institutional change that will affect the relationships among the aggregates and
affect their relation to GNP. But even with these
qualifications, the basic point remains: As long as
inflationary forces are so strong and are expected
to remain strong, money and credit targets in the
area in which we are operating are likely to imply
strong pressures on credit markets whenever
business is strongly expanding, calling into question the sustainability of the advance.
Given enough time, sluggish business performance should itself tend to restrain inflation. But
our objective as a nation must be to speed the
disinflationary process. That will be a legitimate
expectation only if we can succeed in changing
attitudes and policies across a broad range of
public and private behavior. Only then can we
20
Federal Reserve Bulletin • January 1981
confidently anticipate that a relaxation of pressures on financial markets could be sustained
and that the stage will be set for full recovery and
expansion.
The task is both difficult and painful because
patterns of inflationary behavior are by now so
deeply ingrained in individual attitudes that the
process feeds on itself. That will change only
when there is a visible, sustained commitment to
policies that will in fact reduce the strong upward
price thrust—and permit market processes to penalize those speculating on inflation—even when
those policies, in the short run, entail risks and
strains. Credibility in policy commitment will
have to be earned by performance maintained
through thick and thin. That is one reason we in
the Federal Reserve take our own monetary and
credit objectives so seriously—in setting realistic
targets in the first place, in explaining their implications and our methods for approaching them,
and in substantially meeting them over reasonable periods of time. But monetary policy, indis
pensable as it is, is only one instrument, and as I
have emphasized, relying entirely on that instrument focuses the strains on financial markets
and those most dependent on them.
The fiscal posture of the federal government is
the most important of the other instruments that
can be brought to bear in changing both expectations and current reality. That posture has
several dimensions.
The point has rightly been emphasized that the
level of federal taxation itself impairs incentives
and adds to costs, and that taxes are not only
high but rising. The relevant question is not
whether tax reduction is desirable in itself; it obviously is if we want a healthy private economy.
The real debate is how that desirable—even necessary—objective can be achieved consistent
with fighting inflation and reducing the pressures
on financial markets—pressures that could otherwise frustrate the beneficial effects. The concern
is not limited to reducing the immediate deficit,
important as that is as a source of current interest
rate pressures. Even more significant in many
ways is the forward planning necessary to assure
that, as the economy returns to more satisfactory
operating levels, the financial position of the government indeed returns to balance, making way
for the private investment we need.
This is not the time or place for a detailed discussion of the budgetary problem. I would simply emphasize that the so-called "uncontrollables" that so often frustrate short-term budget
control can in fact be controlled over a relevant
time frame.
I do not underestimate the difficulties. Experience amply illustrates—and private financial observers are conscious of the fact—that official
projections of government spending extending
over several years ahead have almost invariably
fallen far short of actual results. Part of the reason is that inflation itself has exceeded expectations. But the hard fact is that old programs
usually turn out to be more costly than anticipated. New programs are added. And that insidious pattern cannot be changed unless the Congress itself takes on the burden of modifying the
programs and laws that generate the bulk of the
spending.
Related in some respects to the budgetary
problem, and in some ways even more difficult to
control, are the myriad government programs
that in one way or another tend to build in higher
costs in the private economy or insulate firms or
workers from market pressures. These programs
are justified in major part by the national consensus that, in our market-oriented system,
those subject to special risks and dislocations not
of their own making are entitled to an economic
"safety net." Other programs reflect our real
concerns about the environment, health, and
safety. Those fundamental objectives are not
likely to be—nor should they be—changed. But
we urgently need to find ways to make sure that
an appropriate balance is maintained—that the
protections do not exceed what is necessary and
justified, and they do not unduly impair incentives to produce efficiently and control costs.
All of this implies an enormous effort by a
Congress and an administration in the months
ahead—and public understanding of what is at
stake. But the result would, in my judgment,
repay that effort many times over. As the message is sent and heard that in a realistic time
frame we can indeed succeed in achieving the expenditure control that makes the needed tax relief prudently possible, the private sector should
indeed respond vigorously with job creation and
greater productivity.
Statement to Congress
I am conscious in some of my own contacts
and correspondence—as you must be in yours—
of a rather plaintive note emerging. In principle,
no one likes inflation. But, the implicit argument
goes, if strong financial pressures, budget cuts,
and regulatory changes are a necessary part of
the process of restoring price stability, then perhaps it is easier to live with inflation after all.
That is pure delusion. Experience here and
abroad indicates unambiguously that we have
not been successful in living with inflation—that
in an economy like ours persistent inflation, stag-
21
nation, and reduced productivity are inexorably
related, and that left alone inflation will get
worse, not better.
The fact is we now have one of those rare opportunities to marshall a national consensus for
those measures necessary to restore the base for
more vigorous growth and prosperity. Of course,
we can always let the opportunity pass to another day, but then we had better recognize that the
nation would soon face still more difficult dilemmas. Such postponement cannot be the responsible course.
•
23
Announcements
FEES FOR FEDERAL
RESERVE
SERVICES
The Federal Reserve Board on December 31,
1980, made public schedules of fees for certain
services to depository institutions, implementation dates for pricing and access to Federal Reserve services, and the principles underlying the
Federal Reserve's schedule of charges.
The Board also took the following actions:
1. Adopted procedures for a depository institution to follow if it maintains low or zero required reserve balances with the Federal Reserve and it wishes to obtain services directly
from the Federal Reserve.
2. Provided for immediate access by all nonmember depository institutions to Federal Reserve regional check processing centers (RCPCs)
for the collection of local checks under arrangements available to nonmember commercial bank
participants in RCPCs.
3. Postponed for a short period the pricing of
all check collection services and access by nonmember depository institutions to Federal Reserve check collection facilities other than
RCPCs.
The Board's schedules for pricing its services
and the principles and price determinants underlying the charges were adopted to implement
provisions of the Monetary Control Act of 1980.
Under the act, the Board is required to publish a
set of pricing principles and a proposed schedule
of Federal Reserve fees, dealing with the following services:
1. Transportation of currency and coin and
coin wrapping.
2. Check clearing and collection.
3. Wire transfer of funds.
4. The use of Federal Reserve automated
clearinghouse facilities.
5. Net settlement of debits and credits affecting accounts held by the Federal Reserve.
6. Book entry, safekeeping, and other services connected with the purchase or sale of
government securities.
7. Noncash collection (the receipt, collection,
and crediting of accounts of depository institutions in connection with municipal and corporate
securities).
8. The cost to the Federal Reserve of float (the
interest on items—generally, the dollar value of
checks—credited by the Federal Reserve to one
depository institution before being collected
from another).
These requirements of the Monetary Control
Act follow other provisions of the act that subject all depository institutions offering transaction accounts and nonpersonal time accounts to
uniform Federal Reserve requirements and that
require the Federal Reserve to provide System
services on the same terms to all depository institutions.
The Board said that the proposals are meant to
conform to the following objectives made clear in
the legislative history of the act:
1. The Congress regarded pricing for Federal
Reserve services as a means of encouraging competition and efficiency in the provision of such
services.
2. The Congress was concerned with the
amount of revenue that would be lost to the
Treasury under the act resulting from the lower
reserve requirements the act establishes. Pricing
for Federal Reserve services is expected in part
to offset that loss.
At the same time, the Congress charged the
Board with adopting pricing principles that "give
due regard to competitive factors and the provision of an adequate level of such services nationwide."
PROPOSED
ACTIONS
The Federal Reserve Board has invited comment
on proposals to amend its Regulation D (Reserve
Requirements of Depository Institutions) and
Regulation Q (Interest on Deposits) to permit the
establishment in the United States of inter-
24
Federal Reserve Bulletin • January 1981
national banking facilities (IBFs). The Board requested comment by February 13, 1981.
EARNINGS
OF FEDERAL
RESERVE
BANKS
Preliminary figures indicate that gross earnings
of the Federal Reserve Banks amounted to
$12,802 million during 1980, a 24.2 percent increase from a year earlier. Current expenses for
the 12 Reserve Banks and their branches totaled
$791 million—14.1 percent above the previous
year.
Assessment for expenditures of the Board of
Governors amounted to $62 million. There was
a net deduction in the profit and loss account of
$115 million, resulting primarily from a net loss
of $199 million on sales of U.S. government
securities and a net profit of $96 million on foreign exchange operations.
Net earnings before payments to the Treasury
totaled $11,834 million. Payments to the Treasury
as interest on Federal Reserve notes amounted
to $11,707 million; statutory dividends to member banks, $70 million; and additions to Reserve
Bank surplus, $57 million.
Under the policy adopted by the Board of
Governors at the end of 1964, all net earnings
after the statutory dividend to member banks
and additions to surplus to bring it to the level
of paid-in capital were paid to the U.S. Treasury
as interest on Federal Reserve notes.
Compared with 1979, gross earnings were up
$2,492 million, due mainly to an increase of
$2,407 million on U.S. government securities.
Earnings of the Federal Reserve System are
derived primarily from interest accrued on U.S.
government securities that the Federal Reserve
has acquired through open market operations,
one of the tools of monetary policy.
THRIFT INSTITUTIONS
ADVISORY
GROUP
The Federal Reserve Board announced on December 19, 1980, creation of a Thrift Institutions
Advisory Group made up of nine representatives
from thrift institutions.
The panel includes six savings and loan officials, two mutual savings bankers, and one credit
union representative. It will meet four times
annually with members and staff of the Board
to advise on implementation of the Monetary
Control Act of 1980 and to confer on other economic and financial institution matters.
Under the Monetary Control Act of 1980, thrift
institutions, for the first time, are required to report deposits and to maintain reserves with the
Federal Reserve on certain transactions accounts and nonpersonal time deposits.
The following members were named:
Mary A. Grigsby, President of Houston First
American Savings Association, Houston, Texas;
Edwin B. Brooks, Jr., President of Security Federal Savings and Loan Association, Richmond,
Virginia; Walter H. Kropp, President of Franklin
Federal Savings and Loan Association, Columbus, Ohio; James F. Montgomery, President of
Great Western Savings and Loan Association,
Beverly Hills, California; Herbert M. Sandler,
Chairman of the Board of World Savings and
Loan Association, Oakland, California; Raleigh
W. Greene, Chairman of the Board and President
of Florida Federal Savings and Loan Association, St. Petersburg, Florida; Robert W. Garver,
President of Charlestown Savings Bank, Boston,
Massachusetts; Harry W. Albright, President of
Dime Savings Bank, New York, New York; and
Vernon J. Dwyer, General Manager of the Pentagon Federal Credit Union.
CONSUMER
New
ADVISORY
COUNCIL
Members
The Federal Reserve Board has named eight new
members to its Consumer Advisory Council and
designated a new chairman and vice chairman to
replace members whose terms have expired.
Ralph Rohner, a law professor at the Catholic
University Law School, Washington, D.C., was
designated Chairman. He succeeds William D.
Warren, Dean of the U.C.L.A. School of Law,
Los Angeles, California.
Charlotte H. Scott, professor of business administration and commerce at the University of
Virginia, Charlottesville, Virginia, will succeed
Marcia A. Hakala as Vice Chairman. Mrs. Hakala is Assistant to the Vice Chancellor of the
University of Nebraska Medical Center, Omaha,
Nebraska.
Announcements
The Council advises the Board in the field of
consumer credit protection laws. Its 30 members
come from all parts of the country and include a
broad representation of consumer and creditor
interests. The Council generally meets four times
a year in sessions open to the public.
The new members named for three-year terms
are as follows:
Arthur F. Bouton, Little Rock, Arkansas,
president-elect of the American Association of
Retired Persons. He has had a 25-year career in
banking and has been active in civic and church
groups. He was vice president of the Arkansas
Gerontological Society and is a member of the
State Inter-Agency Committee on Aging.
Joseph N. Cugini, Westerly, Rhode Island,
chairman-elect of the Credit Union National Association, a trade group that represents 22,000
credit unions nationwide. He also is president
and general manager of the Westerly Community
Credit Union and a director of the Rhode Island
Credit Union League. He is a member of the
board of directors of the Rhode Island Share and
Deposit Indemnity Corporation.
Susan Pierson De Witt, Springfield, Illinois,
Assistant Attorney General and Chief of the
Consumer Protection Division for the State of Illinois. Her responsibilities include overseeing
the complaint handling mechanisms of the division and determining the lawsuits to be filed by
the attorney general in the consumer fraud area
for the 96 down-state counties.
Luther R. Gatling, New York, New York,
director of the Budget and Credit Counseling
Service in New York City, which counsels persons with financial problems. Formerly with the
New York Urban Coalition and active as a community advocate, he is a lecturer and author
on consumer credit matters.
George S. Irvin, Denver, Colorado, operator
of an automobile dealer franchise in Denver
since 1950. He is president of the National Automobile Dealers Association and has held a number of offices in the NADA and in state and local
automobile dealers associations.
Stan L. Mularz, Chicago, Illinois, president of
Trans Union Credit Information Co. and director
of the Associated Credit Bureaus and the International Consumer Credit Association. He also
is a director of the Merchants Research Council
25
and president of the Society of Certified Consumer Credit Executives.
William J. O'Connor, Jr., Buffalo, New York,
partner in a Buffalo law firm. He is a practicing
lawyer who has specialized in consumer credit,
commercial law, and financial service areas for
many years. He takes a frequent role in the activities of the New York State Bar and the American Bar Association and in continuing legal education programs.
Nancy Z. Spillman, Los Angeles, California,
professor of economics at Los Angeles Trade
Technical College and the director of the Center
for Economic Education at the college. She edits
a national consumer education newsletter and
has been active in the consumer field as a teacher, writer, and lecturer.
Meeting
The Federal Reserve Board has announced that
its Consumer Advisory Council met on January
14 and 15, 1981.
Q UARTERL Y
REPORTING
B Y SMALL DEPOSITOR Y
INSTITUTIONS
The Federal Reserve Board has taken two actions to facilitate compliance by small depository
institutions that are permitted to report and
maintain required reserves on a quarterly basis.1
The actions give nonmember institutions a
once-only, eight-week lag between the end of
their first reserve computation period (January
15-21) and the date on which reserves must be
maintained (March 19).
This lag will alter the staggered reserve computation and maintenance schedule that was established as part of the quarterly reporting proce1
Depositories with total deposits between $2 million and
$15 million may report their deposits and maintain required
reserves quarterly rather than weekly, beginning January 15,
1981. The simplified procedure affects some 10,000 commercial banks, savings and loan institutions, mutual savings
banks, and credit unions. The Monetary Control Act of 1980
requires all depository institutions to maintain federal reserves on their transaction and nonpersonal time accounts.
(Reserve requirements for depository institutions with total
deposits under $2 million as of December 31, 1979, have been
deferred until May 1981.)
26
Federal Reserve Bulletin • January 1981
dure. Under the procedure, quarterly reporters
are divided into three groups that report and
maintain reserves a month apart. The February
deposit report will be eliminated, and staggered
reporting will begin in March instead of February.
Also, in order to provide additional flexibility
for smaller depository institutions, beginning
with the first (March) staggered-deposit report,
the Board's new procedure for quarterly reporters provides a lag of 22 days—instead of
the 8-day lag for weekly reporters—between the
end of the reserve computation period and the
start of the reserve maintenance period. This
procedure applies to both member and nonmember institutions. It will continue in effect for
subsequent quarterly reports.
SYSTEM s
REVISED
WIRE
NETWORK.SCHEDULE
The Federal Reserve System has adopted a revised schedule of operating hours for the transfer
and settlement of funds dispatched over the System's wire network.
This change was made to accommodate increasing wire transfer traffic and to establish uniform deadlines, so as to ensure that all financial
institutions have equal access to the System's
wire network.
After consideration of comment received
on an earlier proposal, the System has adopted
the following schedule to be implemented
May 1, 1981:
1. Uniform 4:30 p.m. Eastern time interdistrict deadline. The extension of the interdistrict window is needed to support future wire
transfer growth and to provide banks with a time
schedule that better accommodates their business day. The proposed interdistrict deadline has
been shortened from the original proposal by 30
minutes to accommodate the concerns of banks
in the Eastern time zone that the new, longer
operating day will increase their operating
expenses.
2. Optional 4:30 p.m. to 6 p.m. Eastern time
intradistrict transfer period. This provides Districts the option of using up to 90 minutes for
intradistrict, third-party transfers to alleviate the
potential problems of having the same deadline
for inter- and intradistrict transfers. It also minimizes (30 minutes) the amount of intradistrict
time West Coast banks will lose under the new
uniform operating hour.
3. Uniform 4:30 p.m. to 6:30 p.m. Eastern
time settlement period. A settlement period that
extends to at least 6:30 p.m. is needed to provide
a minimum (30 minutes) settlement period after
third-party activity closes off.
4. 5 p.m. Eastern time for net settlement
arrangements. Organizations will begin their settlement transactions with a Reserve Bank by 5
p.m. Eastern time. This deadline accommodates
banks that participate in a net settlement arrangement but do not want to participate in the
full settlement period. It also provides banks another 90 minutes to adjust their reserve position.
AMENDMENT
TO REGULATION
E
The Federal Reserve Board has adopted an
amendment to its Regulation E (Electronic Fund
Transfers) to permit creditors to debit their customers accounts automatically for repayment of
preauthorized overdraft credit, effective January
15, 1981.
The Board acted after consideration of comment received on a proposal made in October.
The proposed amendment was adopted without
any material change.
The EFT Act prohibits creditors from making
automatic repayment of loans a condition of
extending credit. The Board exempted overdraft
credit plans from this prohibition in order to
facilitate the continued extension of overdraft
checking protection to consumers by permitting
the automatic collection of repayments.
27
Record of Policy Actions of the
Federal Open Market Committee
Meeting Held
on November 18, 1980
Domestic Policy Directive
The information reviewed at this
meeting suggested that real GNP,
which had increased at an annual
rate of 1 percent in the third quarter
following a sharp second-quarter
contraction, was expanding further
in the current quarter. Average
prices, as measured by the fixedweight price index for gross domestic business product, appeared to be
continuing to rise at a rapid pace,
close to the annual rate of IOV2 percent experienced in the second and
third quarters.
The index of industrial production
rose an estimated 1.6 percent in October, following substantial gains in
each of the two preceding months.
Over the three-month period, industrial production increased 4 percent,
but the index in October was still
about 4 percent below its level in the
first quarter of 1980. Capacity utilization in manufacturing increased
about 1 percentage point further in
October to 77.6 percent, but remained about 6 percentage points
below the first-quarter rate.
Nonfarm payroll employment expanded substantially in October for
the third consecutive month, and the
unemployment rate remained at
about V h percent. Employment
gains were widespread, but were especially strong in durable goods
manufacturing and construction—industries in which earlier job losses
had been sizable—and the average
workweek in manufacturing lengthened slightly.
The dollar value of retail sales
changed little in October, according
to the advance report, following a
large increase over the four preceding months. Sales of new automobiles were at an annual rate of 9.0
million units in October, up from 8.8
million in September.
Private housing starts rose further
in September to an annual rate of
more than 1.5 million units, reflecting in part a bulge in starts of federally subsidized units at the end of the
fiscal year. Sales of new houses declined in September for the second
successive month, although sales of
existing houses rose further. Fragmentary data for October suggested
that housing activity was weakening.
Producer prices of finished goods
rose substantially in October after a
small decline in September. Consumer prices rose at an accelerated
pace in September, reflecting not only continued sharp advances in food
prices but increases in most other
categories as well. The index of average hourly earnings of private nonfarm production workers rose at an
annual rate of 9 percent over the first
ten months of the year, compared
with an increase of about 8V4 percent during 1979.
In foreign exchange markets the
trade-weighted value of the dollar
against major foreign currencies had
risen about 3 percent over the interval since the Committee's meeting in
mid-October. In September the U.S.
foreign trade deficit was essentially
unchanged from the August level; in
the third quarter the deficit was
sharply below the average of the first
two quarters and was the smallest
since the second quarter of 1976.
The volume and value of oil imports
28
Federal Reserve Bulletin • January 1981
fell sharply in the third quarter,
while the value of exports—especially agricultural products—increased.
At its meeting on October 21, the
Committee had decided that open
market operations in the period until
this meeting should be directed toward expansion of reserve aggregates consistent with the growth of
M-l A, M-IB, and M-2 over the period from September to December at
annual rates of about 2XH percent, 5
percent, and l l U percent respectively, or somewhat less, provided that
in the period until the next regular
meeting the weekly average federal
funds rate remained within a range
of 9 to 15 percent. Early in the intermeeting period, incoming data indicated that the monetary aggregates, particularly M-l A and M-IB,
were growing much faster than both
the rates projected at the time of the
meeting and the rates consistent
with the Committee's objectives for
the September-to-December period.
Required reserves and member bank
demands for reserves expanded substantially in relation to the constrained supply of reserves being
made available through open market
operations. Consequently, member
bank borrowings increased sharply,
to an average of $1.7 billion in the
three statement weeks ending on
November 12 from an average of
$1.3 billion in the five weeks between the September and October
meetings. These developments were
associated with additional upward
pressures on the federal funds rate
and other short-term interest rates;
in mid-November the funds rate averaged W h percent, compared with
about 12V2 percent in the days just
before the Committee's meeting on
October 21.
After the markets closed on November 14, the Board of Governors
announced an increase in Federal
Reserve discount rates from 11 to 12
percent and a surcharge of 2 percentage points on frequent borrowing
of large institutions. The actions,
which were effective on Monday,
November 17, were taken in view of
the prevailing level of short-term
market interest rates and the recent
rapid growth in the monetary aggregates and bank credit. On November
17, the day before this meeting, federal funds traded at an average rate
of about I6V4 percent.
Growth in M-l A and M-IB moderated further in October, but the annual rates of about 9 and 11 percent
respectively were substantially above
those consistent with the Committee's objectives for the period from
September to December. Expansion
in M-2 accelerated slightly in October, to an annual rate of about 9 percent, reflecting a pickup in growth of
nontransaction accounts included in
that aggregate; growth in M-3 also
accelerated somewhat. From the
fourth quarter of 1979 through October, growth of M-l A was in the upper part of the range set by the Committee for the year ending in the
fourth quarter of 1980; M-IB and
M-2 grew at rates somewhat above
the upper ends of their respective
ranges, while M-3 grew at a rate
near the upper end of its range.
Expansion in total credit outstanding at U.S. commercial banks
was relatively rapid in October, although somewhat below the pace in
August and September. Bank holdings of securities grew at about the
same pace in October as in the previous month, while growth in total
loans moderated somewhat despite
continuing strength in business loans.
Outstanding commercial paper of
nonfinancial corporations fell by a
record amount in October, extending the decline that began in August.
Short-term market interest rates
rose l3/4 to 3 percentage points further over the intermeeting period,
while long-term rates increased
about 3A percentage point. Over the
interval, the prime rate charged by
commercial banks on short-term
business loans was raised from 14 to
I6V4 percent. In home mortgage
markets, average rates on new com-
Record of Policy Actions of the FOMC
mitments rose about 40 basis points
further over the intermeeting period,
and available information suggested
a slowing in new commitment activity at nonbank thrift institutions most
recently.
The staff projections presented at
this meeting suggested that growth
in real GNP would be a little greater
in the fourth quarter as a whole than
in the third. However, the recovery
in activity appeared to be in the
process of weakening, and the projections suggested little growth in
real GNP and some increase in the
unemployment rate over the next
few quarters. The rise in the fixedweight price index for gross domestic business product was projected
to be only a little less rapid over the
year ahead than during the past year.
In the Committee discussion of
the economic situation and its implications for policy, the members considered the possibility that the greater-than-anticipated strength of the
recovery in recent months would be
followed in early 1981 by a decline in
real GNP. It was recognized that in
the near term the recent rise in interest rates would be an important
force restraining activity in some
sectors. At the same time, the higher
interest rates resulted in part from
the continuing rapid pace of inflation, which remained a major source
of concern and of current and prospective instability. The observation
was made that, assuming monetary
expansion in line with the Committee's longer-run objectives, the
progress of recovery in the months
ahead was likely to be limited unless
inflation abated. It was also noted,
however, that the rise in prices had
not slowed and that once again the
economy might be subjected to
shocks from substantial increases in
prices of both energy and foods, and
perhaps from a reduction in supplies
of energy as well. The outlook was
clouded, moreover, by unusual uncertainty regarding prospective federal outlays, especially for national
defense, by the increases in federal
taxes effective at the beginning of
the new year, and by the prospects
for legislation next year to reduce
federal taxes.
At its meeting in July, the Committee had reaffirmed the ranges for
monetary growth in 1980 that it had
established in February. Thus, the
Committee had agreed that from the
fourth quarter of 1979 to the fourth
quarter of 1980, average rates of
growth in the monetary aggregates
within the following ranges appeared
to be consistent with broad economic aims: M-1A, 3V2 to 6 percent;
M-1B, 4 to 6V2 percent; M-2, 6 to 9
percent; and M-3, 6V2 to 9V2 percent.
The associated range for the rate of
growth in commercial bank credit
was 6 to 9 percent. For the period
from the fourth quarter of 1980 to the
fourth quarter of 1981, the Committee looked toward a reduction in
the ranges for growth of M-1A,
M-1B, and M-2 on the order of V2
percentage point from the ranges
adopted for 1980, abstracting from
institutional influences affecting the
behavior of the aggregates. It was
understood that the longer-run
ranges would be reconsidered as
conditions warranted.
In contemplating policy for the period immediately ahead, the Committee noted that growth of the narrower monetary aggregates in
October had substantially exceeded
the rates consistent with the objectives for growth over the period from
September to December adopted at
the meeting on October 21. If those
objectives were to be realized, M-1A
would have to decline slightly over
the final two months of the year and
growth of M-1B would have to be
very slow.
According to a staff analysis, the
demand for money had been quite
strong in recent months because recovery in economic activity and in
nominal GNP had been much larger
than anticipated. Growth of transaction balances was projected to slow
significantly over the remainder of
the year, in part because of the
29
30
Federal Reserve Bulletin • January 1981
lagged effect on the demand for money of the sharp rise in interest rates
over recent months and in part because of the apparent weakening of
the recovery in activity.
In the Committee's discussion of
policy for the period immediately
ahead, the members generally favored pursuit of a sharp reduction in
monetary expansion from the rapid
pace of recent months. Such a slowing might already be developing for
the reasons given in the staff analysis, but it was emphasized that uncertainties were great concerning the
projection of a weakening in the
pace of the business recovery and also about the impact of nominal GNP
and current levels of interest rates
on monetary growth.
In the circumstances, most members favored reaffirming essentially
the objectives for monetary growth
over the period from September to
December that had been adopted at
the meeting in mid-October, with the
same proviso that somewhat less
growth would be acceptable if it
emerged. A number of members preferred adoption of somewhat higher
growth rates over the near term,
with a view to scaling down monetary growth over a slightly longer period than the six weeks remaining
before the end of the year, but they
also were willing to accept slower
growth if it emerged. In addition,
some sentiment was expressed for
specification of somewhat lower
rates of monetary growth.
While favoring sharply reduced
growth of the monetary aggregates
in the period immediately ahead, a
number of members expressed concern about inadvertently contributing to the volatility of interest
rates, because of the implications of
such volatility for economic activity,
for inflationary psychology, and for
the functioning of financial markets.
Specifically, a substantial reduction
in the provision of nonborrowed reserves or other measures in a highly
aggressive pursuit of the short-run
monetary growth rates being con
templated might lead promptly to
further increases in interest rates,
which were probably already constraining the business recovery and
slowing monetary growth. Subsequent declines in rates might be
unduly large, and if monetary
growth accelerated again in lagged
response, inflationary expectations
could well be heightened. At the
same time, an aggressive response to
any temporary slackening in the demand for money that developed in
the period just ahead appeared inappropriate, particularly in the light
of the excessive monetary growth of
recent months. In either case, the result might be undesirable instability
in both interest rates and monetary
growth over time, which could generate uncertainty about the basic
thrust of Federal Reserve policy.
Reflecting these concerns, some
members suggested setting the upper
limit of the intermeeting range for
the federal funds rate relatively close
to the average rate in the latest statement week, while others suggested
setting a lower limit not much below
the latest week's average.
At the conclusion of the discussion, the Committee decided to
specify essentially the same monetary growth rates for the period from
September to December that had
been adopted at the meeting in October, with a range for the federal
funds rate that was somewhat narrower and was centered on about the
average rate in the most recent statement week. Thus, the Committee
agreed that open market operations
in the period until the next meeting
should be directed toward expansion
of reserve aggregates consistent with
growth of M-l A, M-IB, and M-2
over the September-to-December
period at annual rates of about Vh
percent, 5 percent, and VU percent
respectively, or somewhat less, provided that in the period before the
next regular meeting the weekly average federal funds rate remained
within a range of 13 to 17 percent.
While some shortfall from the speci-
Record
fied rates of monetary growth would
be accepted, it was also understood
that operations would not be directed toward placing substantial
additional pressures on bank reserve positions unless growth of the
monetary aggregates and the associated demands for reserves proved to
be significantly greater than anticipated. If it appeared during the period before the next regular meeting
that the constraint on the federal
funds rate was inconsistent with the
objective for the expansion of reserves, the Manager for Domestic
Operations was promptly to notify
the Chairman, w h o would then decide whether the situation called for
supplementary instructions from the
Committee.
The following domestic policy directive was issued to the Federal Reserve Bank of N e w York:
The information reviewed at this
meeting suggests that real GNP is recovering further in the fourth quarter from
the sharp contraction in the second quarter, while prices on the average continue
to rise rapidly. In October industrial production and nonfarm payroll employment expanded substantially for the third
consecutive month, and the unemployment rate remained around ll12 percent.
The value of retail sales changed little,
following four months of recovery. The
rise in the index of average hourly earnings over the first ten months of 1980 was
somewhat more rapid than in 1979.
The weighted average value of the dollar in exchange markets on balance has
risen further over the past month. The
U.S. trade deficit was essentially unchanged in September, and the rate in
the third quarter was sharply lower than
that in the first half.
Growth in M-1A and M-1B moderated
further in October but was still relatively
rapid; growth in M-2 accelerated slightly, reflecting a pickup in expansion of its
nontransactions component. From the
fourth quarter of 1979 to October,
growth of M-1A was in the upper part of
the range set by the Committee for
growth over the year ending in the fourth
quarter of 1980, while growth of M-1B
and M-2 was somewhat above the upper
limits of their ranges. Expansion in commercial bank credit was rapid in October, although not so rapid as in August
and September. Market interest rates
of Policy Actions
of the FOMC
have risen sharply in recent weeks; average rates on new home mortgage commitments have continued upward. On
November 14 the Board of Governors
announced an increase in Federal Reserve discount rates from 11 to 12 percent and a surcharge of 2 percentage
points on frequent borrowing of large
member banks from Federal Reserve
Banks.
The Federal Open Market Committee
seeks to foster monetary and financial
conditions that will help to reduce inflation, encourage economic recovery, and
contribute to a sustainable pattern of international transactions. At its meeting
in July, the Committee agreed that these
objectives would be furthered by growth
of M-1A, M-1B, M-2, and M-3 from the
fourth quarter of 1979 to the fourth quarter of 1980 within ranges of V h to 6 percent, 4 to 6V2 percent, 6 to 9 percent, and
6V2 to 9V2 percent respectively. The associated range for bank credit was 6 to 9
percent. For the period from the fourth
quarter of 1980 to the fourth quarter of
1981, the Committee looked toward a reduction in the ranges for growth of
M-1A, M-1B, and M-2 on the order of V2
percentage point from the ranges
adopted for 1980, abstracting from institutional influences affecting the behavior
of the aggregates. These ranges will be
reconsidered as conditions warrant.
In the short run, the Committee seeks
behavior of reserve aggregates consistent with growth of M-1A, M-1B, and
M-2 over the period from September to
December at annual rates of about 2lh
percent, 5 percent, and VU percent respectively, or somewhat less, provided
that in the period before the next regular meeting the weekly average federal
funds rate remains within a range of 13 to
17 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, Gramley, Guffey, Morris, Partee,
Rice, Roos, Schultz, Solomon, and
Wallich. Votes against this action:
Mrs. Teeters and Mr. Winn.
Mrs. Teeters dissented from this
action because she believed that it
would result in additional increases
in interest rates, which would in-
31
32
Federal Reserve Bulletin • January 1981
tensify downward pressures on demands for housing, automobiles, and
business fixed capital and thus risk a
major contraction in economic activity with a substantial rise in unemployment. In her view, open market
operations over the weeks immediately ahead should be directed
toward maintaining the federal funds
rate within a range of 11 to 15
percent.
Mr. Winn dissented from this action because he favored specification of lower rates of expansion in
the monetary aggregates for the period from September to December
than those adopted at this meeting.
In his view, more vigorous action
was appropriate in order to enhance
the prospects for restraining the expansion of the monetary aggregates
and establishing growth paths consistent with the monetary growth objectives for 1981 contemplated by
the Committee in July 1980.
Shortly after the meeting, incoming data indicated that M-l A and
M-IB were growing much faster
than the rates consistent with the
Committee's objectives for the period from September to December.
Required reserves and member bank
demands for reserves had expanded
substantially in relation to the supply
of reserves being made available
through open market operations,
and member bank borrowings had
increased further. These developments were associated with additional upward pressure on the federal
funds rate, which in the first statement week after the meeting had
been at about or somewhat above
the upper limit of the range of 13 to
17 percent specified by the Committee. In a telephone conference on
November 26, the Committee raised
the upper limit of the intermeeting
range for the funds rate to 18 percent.
On November 26, the Committee
modified the domestic policy directive
adopted at its meeting on November 18,
1980, to raise the upper limit of the range
for the federal funds rate to 18 percent.
Votes for this action: Messrs. Volcker, Gramley, Guffey, Morris, Partee,
Rice, Schultz, Solomon, Wallich, and
Baughman. Vote against this action:
Mrs. Teeters. Absent: Messrs. Roos
and Winn. (Mr. Baughman voted as
alternate for Mr. Roos.)
Mrs. Teeters dissented from this
action for essentially the same reasons that she had dissented from the
action to adopt the domestic policy
directive at the Committee's meeting
on November 18, 1980.
On December 4, after closing of
the markets, the Board of Governors
announced an increase in Federal
Reserve discount rates. In light of
the current level of market interest
rates and consistent with existing
policy to restrain excessive growth
in money and credit, the Board approved an increase from 12 to 13 percent in the basic rate and an increase
from 2 to 3 percentage points in the
surcharge on frequent borrowings of
large institutions, effective December 5.
The increase in discount rates exerted additional upward pressure on
the federal funds rate. In trading during the morning of December 5, the
rate generally was well above 18 percent, the level to which the upper
limit of the intermeeting range for
the weekly average funds rate had
been raised about a week earlier,
and other short-term interest rates
rose substantially as well. At the
same time, incoming data suggested
that M-l A and M-IB currently might
be growing a little less rapidly than
projected a week earlier, which
would imply a somewhat lower level
of required reserves and also some
reduction in member bank demands
for reserves in relation to the supply
being made available through open
market operations.
Thus, it was possible that the additional upward pressure on the federal funds rate would prove to be transitory. Alternatively, pursuit of the
Committee's short-run objective for
the growth of reserves might be associated with a federal funds rate
Record of Policy Actions of the FOMC
above the upper limit of the existing
range, even if some weakness in demands for reserves developed, but
the extent of any upward pressure
on the rate was difficult to gauge
while markets were in the process of
adjusting to the discount rate action.
In light of these uncertainties, the
Committee decided in a telephone
conference in the afternoon of December 5 to take account of the repercussions of the increases in discount rates by providing the
Manager for Domestic Operations
with leeway to pursue the Committee's short-run objectives for the
behavior of reserve aggregates without operations being precisely constrained in the current statement
week by the 18 percent upper limit of
the intermeeting range for the federal funds rate, pending another consultation in about a week if one appeared to be desirable.
On December 5, the Committee modified the domestic policy directive
adopted at its meeting on November 18,
1980, and subsequently modified on November 26, to take account of the action
of the Board of Governors on December
4 to raise discount rates by providing
leeway for pursuit of the Committee's
short-run objectives for the behavior of
reserve aggregates without operations
being precisely constrained in the current statement week by the 18 percent
upper limit of the intermeeting range for
the federal funds rate.
Votes for this action: Messrs. Volcker, Gramley, Gufifey, Morris, Partee,
Rice, Roos, Solomon, and Winn.
Votes against this action: Mrs.
Teeters and Mr. Wallich. Absent: Mr.
Schultz.
Mrs. Teeters dissented from this
action for essentially the same reasons that she had dissented from the
action to adopt the domestic policy
directive at the Committee's meeting
on November 18, 1980.
Mr. Wallich dissented from this
action because he preferred to raise
the upper limit of the federal funds
rate range for the remainder of the
intermeeting period, which in his
view would be consistent with the
action on the preceding day to raise
Federal Reserve discount rates.
The Committee held another telephone conference in the afternoon of
Friday, December 12. In the statement week ending December 10, the
federal funds rate had averaged
about 183/4 percent, and since then
the rate had been in a range of 19 to
20 percent. At the same time, the
most recent data tended to support
the indications of the week before
that M-l A and M-IB currently might
be growing a little less rapidly than
projected earlier and that the demand for reserves could be easing.
Market conditions were unsettled,
however, and there was considerable uncertainty about the relationship between money market
conditions and objectives for the behavior of reserves. In these circumstances, the Committee decided to
extend through the period before the
next regular meeting, scheduled for
December 19, the leeway for open
market operations that it had voted
to approve on December 5.
On December 12, the Committee modified the domestic policy directive issued
on November 18, 1980, and subsequently modified on November 26 and
December 5, to extend through the period before the next regular meeting
leeway for pursuit of the Committee's
short-run objectives for the behavior of
reserve aggregates without operations
being precisely constrained by the 18
percent upper limit of the intermeeting
range for the federal funds rate.
Votes for this action: Messrs. Volcker, Gramley, Gufifey, Morris, Partee,
Rice, Roos, Schultz, Solomon, and
Winn. Vote against this action: Mrs.
Teeters. Absent: Mr. Wallich.
Mrs. Teeters dissented from this
action for essentially the same reasons that she had dissented from the
action to adopt the domestic policy
directive at the Committee's meeting
on November 18, 1980.
33
35
Legal Developments
AMENDMENTS
TO REGULATION
C
The Board of Governors has amended its Regulation
C, Home Mortgage Disclosure: (1) to require institutions to compile and disclose mortgage loan data for
1980 on a calendar year basis, and (2) to establish
March 31, 1981, as the due date for 1980 disclosure
statements. These changes implement a portion of the
amendments to the Home Mortgage Disclosure Act
contained in the Housing and Community Development Act of 1980.
Effective December 5, 1980, Regulation C is
amended as follows:
1. Section 203.4 is amended by adding a new paragraph, (d), to read as follows:
Section 203.4—Compilation of Mortgage Loan
Data
(d) Calendar year basis.
(1) Notwithstanding the requirements set forth elsewhere in this section, each depository institution
shall aggregate its mortgage loan data on a calendar
year basis beginning with data relating to calendar
year 1980. For this purpose, references in this section to a fiscal year shall be deemed to refer to a
calendar year.
(2) Each depository institution shall also aggregate
mortgage loan data for the period, if any, between
the end of its last fiscal year prior to calendar year
1980 and January 1, 1980.
2. Section 203.5 is amended by adding new paragraphs (d) and (e), to read as follows:
(e) Calendar year disclosure. For purposes of disclosure of data relating to calendar year 1980 and
thereafter, references in this section to a fiscal year
shall be deemed to refer to a calendar year.
AMENDMENTS
TO REGULATION
D
1. The Board of Governors has amended its Regulation D—Reserve Requirements of Depository Institutions which imposes Federal reserve requirements on
depository institutions that maintain transaction accounts or nonpersonal time deposits. Under the
amendment, a depository institution may permit a depositor to effect three or less telephone or preauthorized transfers from an account during a statement cycle or similar period of at least four weeks
without subjecting such account to reserve requirements on transaction accounts.
Effective December 1, 1980, Regulation D is
amended as follows:
1. In section 204.2(e)(6), the second sentence is
amended to read as set forth below:
Section 204.2—Definitions
(e) "Transaction account"*
**
(6) * * * An account that permits or authorizes more
than three such withdrawals in a calendar month, or
statement cycle (or similar period) of at least four
weeks, is a "transaction account" whether or not
more than three such withdrawals actually are made
during such period. * * *
Section 203.5—Disclosure Requirements
(d) Special rule on due dates. Notwithstanding the
provisions of paragraph (a) of this section, each depository institution shall make available by March 31,
1981, the disclosure statement that relates to calendar
year 1980 and any statement relating to the period between the end of its last fiscal year prior to calendar
year 1980 and January 1, 1980.
2. In section 204.2(b)(l)(vii), by inserting the word
"which" after the words "withdrawal period has expired and" and before the words "have not been renewed."
3. In section 204.3(a), the third sentence is revised by
deleting "$5 million" and inserting in its place "$15
million".
4. In section 204.3(a), subparagraphs (l)(ii) and (2)(ii)
are revised to read as follows:
36
Federal Reserve Bulletin • January 1981
Section 204.3—Computation and Maintenance
(a) Maintenance of required reserves. * * *
(1) United States branches and agencies of foreign
banks.
^ * **
(ii) * * * If the low reserve tranche cannot be fully
utilized by a single office or by a group of offices
filing a single report of deposits, the unused portion of the tranche may be assigned to other offices of the same foreign bank until the amount of
the tranche is exhausted. The foreign bank shall
determine this assignment subject to the restriction that if a portion of the tranche is assigned to
an office in a particular State, any unused portion
must first be assigned to other offices located
within the same State and within the same Federal
Reserve District, that is, to other offices included
on the same aggregated report of deposits. If necessary in order to avoid under-utilization of the
low reserve tranche, the allocation may be
changed at the beginning of a calendar month. Under other circumstances, the low reserve tranche
may be reallocated at the beginning of a calendar
year.
(2)(j) * * * Agreement
Edge and
2. The Board of Governors has amended Regulation
D—Reserve Requirements of Depository Institutions
to extend the lag between the last day of the reserve
computation period and the first day of the corresponding reserve maintenance period from eight to 22
days for depository institutions subject to the quarterly procedure for filing deposit data used to compute
required reserves. In addition, for nonmember depository institutions, the beginning of the reserve maintenance period associated with the first quarterly reserve
computation period is being deferred from January 29,
1981, until March 19, 1981.
Effective January 15, 1981, Regulation D is amended
by revising subparagraph (2) of section 204.3(d) to read
as follows:
Section 204.3—Computation and Maintenance
Corporations.
(ii) * * * If the low reserve tranche cannot be fully
utilized by a single office or by a group of offices
filing a single report of deposits, the unused portion of the tranche may be assigned to other offices of the same institution until the amount of
the tranche is exhausted. An Edge or Agreement
Corporation shall determine this assignment subject to the restriction that if a portion of the
tranche is assigned to an office in a particular
State, any unused portion must first be assigned to
other offices located within the same State and
within the same Federal Reserve District, that is,
to other offices included on the same aggregated
report of deposits. If necessary in order to avoid
under-utilization of the low reserve tranche, the
allocation may be changed at the beginning of a
calendar month. Under other circumstances, the
low reserve tranche may be reallocated at the beginning of a calendar year.
5. In sections 204.4(b)(l)(ii) and (2)(ii), by deleting the
word "exceeds" and inserting in its place "exceed."
6. In section 204.4(b)(2), by deleting the parentheses
that appear around the phrase "than its required reserves computed using the reserve ratios in effect on
August 31, 1980."
7. In section 204.4(g)(2)(iv), by deleting the phrase
"daily average vault cash" and inserting "daily average total required reserves" in both places that it appears.
8. In section 204.6(b)(1), by deleting the word " o n "
which appears after the word "imposed" and before
the word " f o r . "
(d) Special rule for depository institutions that have
total deposits of less than $15 million.
(2) Required reserves are computed on the basis of
the depository institution's daily average deposit
balances during the seven-day computation period.
In determining the reserve balance that a depository
institution is required to maintain with the Federal
Reserve, the average daily vault cash held during
the computation period is deducted from the amount
of the institution's required reserves. The reserve
balance that is required to be maintained with the
Federal Reserve shall be maintained during a corresponding period that begins on the fourth Thursday
following the end of the institution's computation
period and ends on the third Wednesday after the
close of the institution's next computation period.
Such reserve balance shall be maintained in the
amount required on a daily average basis during
each week of the quarterly reserve maintenance period.
AMENDMENTS
TO REGULATIONS
H AND
Y
The Board of Governors has amended its Regulations
H and Y to eliminate the requirement that registered
Legal Developments
transfer agents file amendments to their registration
statement on Form TA-1 to reflect changes in previously filed information listing securities for which
the institutions act as transfer agents.
Effective January 3, 1981, Regulations K and Y are
amended as set forth below:
1. The second sentence in 12 CFR § 208.8(f)(2) is deleted.
2. 12 CFR § 208.8(f)(4) is deleted in its entirety.
3. The second sentence in 12 CFR § 225.5(c)(2) is deleted.
4. 12 CFR § 225.5(c)(4) is deleted in its entirety.
AMENDMENTS
TO REGULATIONS
K AND
Y
The Board of Governors has amended its Regulation
K, International Banking Operations, to implement
and interpret exemptions contained in the Bank Holding Company Act. In addition, the Board has approved
a related amendment to Regulation Y, Bank Holding
Companies and Change in Bank Control.
Effective January 3, 1981, Regulations K and Y are
amended as set forth below:
1. Section 225.4(g) of Regulation Y is revised to read
as follows:
(g) Foreign banking organizations. In addition to
the exemptions afforded by this Part, a foreign banking organization (as defined in 12 C.F.R. § 211.23)
may engage in activities and make investments under Part 211 (Regulation K).
2. Regulation K is amended by adding within Subpart
B—Foreign Banking Organizations, new section 211.23,
Nonbanking Activities of Foreign Banking Organizations. New section 211.23 is added as follows:
37
operates a branch, agency, or commercial lending
company subsidiary in the United States or that controls a bank in the United States; and a company of
which such foreign bank is a subsidiary.
(3) "Subsidiary" means an organization more than
25 per cent of the voting stock of which is held directly or indirectly by a foreign banking organization
or which is otherwise controlled or capable of being
controlled by a foreign banking organization.
(b) Qualifying foreign banking organizations. Unless
specifically made eligible for the exemptions by the
Board, a foreign banking organization shall qualify for
the exemptions afforded by this section only if, disregarding its United States banking, more than half of
its worldwide business is banking; and more than half
of its banking business is outside the United States. In
order to qualify, a foreign banking organization shall:
(1) meet at least two of the following requirements:
(i) banking assets held outside the United States 1
exceed total worldwide nonbanking assets;
(ii) revenues derived from the business of banking outside the United States exceed total revenues derived from its worldwide nonbanking
business;
(iii) net income derived from the business of
banking outside the United States exceeds total
net income derived from its worldwide nonbanking business; and
(2) meet at least two of the following requirements:
(i) banking assets held outside the United States
exceed banking assets held in the United States;
(ii) revenues derived from the business of banking outside the United States exceed revenues derived from the business of banking in the United
States;
(iii) net income derived from the business of
banking outside the United States exceeds net income derived from the business of banking in the
United States.
Subpart B
Section 211.23—Nonbanking Activities of
Foreign Banking Organizations
(a) Definitions. The definitions of section 211.2 in Subpart A apply to this section subject to the following:
(1) "Directly or indirectly" when used in reference
to activities or investments of a foreign banking organization means activities or investments of the
foreign banking organization or of any subsidiary of
the foreign banking organization.
(2) "Foreign banking organization" means a foreign
bank (as defined in section 1(b)(7) of the IB A) that
(c) Determining assets, revenues, and net income.
(1) For purposes of paragraph (b), the total assets,
revenues, and net income of an organization may be
determined on a consolidated or combined basis.
Assets, revenues and net income of companies in
which the foreign banking organization owns 50 per
cent or more of the voting shares shall be included
when determining total assets, revenues, and net income. The foreign banking organization may include
1. None of the direct or indirect assets, revenues, or net income of
a United States subsidiary bank, branch, agency, commercial lending
company, or other company engaged in the business of banking in the
United States shall be considered held or derived from the business of
banking "outside the United States."
38
Federal Reserve Bulletin • January 1981
assets, revenues, and net income of companies in
which it owns 25 per cent or more of the voting
shares if all such companies within the organization
are included;
(2) Assets devoted to, or revenues or net income
derived from, activities listed in section 211.5(d)
of this Part shall be considered banking assets, or
revenues or net income derived from the banking
business, when conducted within the foreign banking organization by a foreign bank or its subsidiaries.
(d) Loss of eligibility for exemptions. A foreign banking organization that qualified under paragraph (b) of
this section or an organization that qualified as a "foreign bank holding company" under section 225.4(g) of
Regulation Y (12 C.F.R. § 225.4(g) (1980))2 shall cease
to be eligible for the exemptions of this section if it
fails to meet the requirements of paragraph (b) for two
consecutive years as reflected in its Annual Reports
(F.R. Y-7) filed with the Board. A foreign banking organization that ceases to be eligible for the exemptions
may continue to engage in activities or retain investments commenced or acquired prior to the end of the
first fiscal year for which its Annual Report reflects
nonconformance with paragraph (b). Activities commenced or investments made after that date shall be
terminated or divested within three months of the filing of the second Annual Report unless the Board
grants consent to continue the activity or retain the
investment under paragraph (e).
(e) Specific determination
of eligibility for nonqualifying foreign banking organizations. A foreign
banking organization that does not qualify under paragraph (b) for the exemptions afforded by this section,
or that has lost its eligibility for the exemptions under
paragraph (d), may apply to the Board for a specific
determination of eligibility for the exemptions. A foreign banking organization may apply for a specific determination prior to the time it ceases to be eligible for
the exemptions afforded by this section. In determining whether eligibility for the exemptions would be
consistent with the purposes of the BHCA and in the
public interest, the Board shall consider the history
and the financial and managerial resources of the organization; the amount of its business in the United
States; the amount, type and location of its nonbanking activities; and whether eligibility of the foreign banking organization would result in undue concentration of resources, decreased or unfair com-
2. " '[F]oreign bank holding company' means a bank holding company organized under the laws of a foreign country, more than half of
whose consolidated assets are located or consolidated revenues derived, outside the United States." (12 C.F.R. § 225.4(g)(iii) (1980)).
petition, conflicts of interests, or unsound banking
practices. Such determination shall be subject to any
conditions and limitations imposed by the Board.
(f) Permissible activities and investments. A foreign
banking organization that qualifies under paragraph (b)
may:
(1) Engage in activities of any kind outside the
United States;
(2) Engage directly in activities in the United States
that are incidental to its activities outside the United
States;
(3) Own or control voting shares of any company
that is not engaged, directly or indirectly, in any activities in the United States other than those that are
incidental to the international or foreign business of
such company;
(4) Own or control voting shares of any company in
a fiduciary capacity under circumstances that would
entitle such shareholding to an exemption under section 4(c)(4) of the BHCA if the shares were held or
acquired by a bank;
(5) Own or control voting shares of a foreign company that is engaged directly or indirectly in business in the United States other than that which is
incidental to its international or foreign business,
subject to the following limitations:
(i) more than 50 per cent of the foreign company's
consolidated assets shall be located, and consolidated revenues derived from, outside the United
States;
(ii) the foreign company shall not engage directly,
nor own or control more than 5 per cent of the
voting shares of a company that engages, in the
business of underwriting, selling, or distributing
securities in the United States except to the extent
permitted bank holding companies;
(iii) if the foreign company is a subsidiary of the
foreign banking organization, its direct or indirect
activities in the United States shall be subject to
the following limitations:
(A) the foreign company's activities in the
United States shall be the same kind of activities or related to the activities engaged in directly or indirectly by the foreign company abroad
as measured by the "establishment" categories
of the Standard Industrial Classification (SIC)
(an activity in the United States shall be considered related to an activity outside the United
States if it consists of supply, distribution or
sales in furtherance of the activity);
(B) the foreign company may engage in activities in the United States that consist of banking
or financial operations, or types of activities
permitted by regulation or order under section
Legal Developments
4(c)(8) of the BHCA, only with the prior approval of the Board. Activities within Division
H (Finance, Insurance, and Real Estate) of the
SIC shall be considered banking or financial operations for this purpose, with the exception of
acting as operators of nonresidential buildings
(SIC 6512), operators of apartment buildings
(SIC 6513), operators of dwellings other than
apartment buildings (SIC 6514), and operators
of residential mobile home sites (SIC 6515); and
operating title abstract offices (SIC 6541). In addition, the following activities shall be considered banking or financial operations and may be
engaged in only with the approval of the Board
under subsection (g): computer and data processing services (SIC 7372, 7374 and 7379);
management consulting (SIC 7392); certain
rental and leasing activities (SIC 7394, 7512,
7513 and 7519); accounting, auditing and bookkeeping services (SIC 8931); and arrangement
of passenger transportation (SIC 4722).
(g) Exemptions under section 4(c)(9) of the BHCA. A
foreign organization that is of the opinion that other
activities or investments may, in particular circumstances, meet the conditions for an exemption under
section 4(c)(9) of the BHCA may apply to the Board
for such a determination by submitting to the Reserve
Bank of the district in which its banking operations in
the United States are principally conducted a letter
setting forth the basis for that opinion.
(h) Reports.
(1) The foreign banking organization shall inform
the Board through the organization's Reserve Bank
within 30 days after the close of each quarter of all
shares of companies engaged, directly or indirectly,
in activities in the United States that were acquired
during such quarter under the authority of this section. The foreign banking organization shall also report any direct activities in the United States commenced during such quarter by a foreign subsidiary
of the foreign banking organization. This information shall (unless previously furnished) include a
brief description of the nature and scope of each
company's business in the United States, including
the 4-digit SIC numbers of the activities in which the
company engages. Such information shall also include the 4-digit SIC numbers of the direct parent of
any U.S. company acquired, together with a statement of total assets and revenues of the direct
parent.
(2) If any required information is unknown and not
reasonably available to the foreign banking organization, either because obtaining it would involve un
39
reasonable effort or expense or because it rests peculiarly within the knowledge of a company that is
not controlled by the organization, the organization
shall (i) give such information on the subject as it
possesses or can reasonably acquire together with
the sources thereof; and (ii) include a statement either showing that unreasonable effort or expense
would be involved or indicating that the company
whose shares were acquired is not controlled by the
organization and stating the result of a request for
information.
(3) A request for information required by this paragraph need not be made of any foreign government,
or an agency or instrumentality thereof, if, in the
opinion of the organization, such request would be
harmful to existing relationships.
AMENDMENTS TO RULES
REGARDING DELEGATION OF A UTHORITY
AND REGULATION K
1. The Board has amended section 211.5(c)(2) of its
Regulation K to allow the Board to waive the 60 days'
prior notification period for those proposals that qualify for the Board's prior notification procedure but
must be consumated in less than 60 days, and section
265.2(c) of its Rules Regarding Delegation of Authority
to give the Director of the Division of Banking Supervision and Regulation authority to exercise this
waiver.
Effective December 30, 1980 sections 211.5(c)(2)
and 265.2(c) are amended as follows:
1. Pursuant to its authority under the Federal Reserve Act, the Board amends section 211.5(c)(2) of
Regulation K as follows:
Section 211.5—Investments in Other
Organizations
(c) Investments procedures. ***
(2) Prior notification. An investment in a subsidiary
*** notice to the Board, unless the Board waives
such period because it finds immediate action by the
investor is required by the circumstances presented,
if the total amount ****.
2. Pursuant to its authority under section ll(k) of the
Federal Reserve Act, the Board amends its Rules Regarding Delegation of Authority as follows:
40
Federal Reserve Bulletin • January 1981
Section 265.2—Specific Functions Delegated to
Board Employees and to the Federal Reserve
Banks
(c) The Director of the Division of Banking Supervision and Regulation (or, in the Director's absence,
the Acting Director) is authorized:
(27) Under section 25 and 25(a) of the Federal Reserve Act and Part 211 of this chapter (Regulation
K), to waive the 60 days' prior notice period for an
investment that qualifies for the prior notification
procedures set forth in section 211.5(c)(2) of Regulation K (12 C.F.R. 211.5(c)(2)).
2. In order to fulfill its responsibility under the International Banking Act of 1978 with regard to the examination of branches, agencies, banks and commercial
lending company subsidiaries of foreign banks, the
Board of Governors has delegated the authority for selecting and approving the appointment of examiners of
such institutions to the Director of the Board's Division of Banking Supervision and Regulation.
Effective December 30, 1980, section 265.2(c) is
amended as follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to Federal Reserve
Banks
(c) The Director of the Division of Banking Supervision and Regulation (or, in the Director's absence,
the Acting Director) is authorized:
(1) Under the provisions of sections 9 and 25(a) of
the Federal Reserve Act (12 U.S.C. §§ 325, 338 and
625), section 5(c) of the Bank Holding Company Act
(12 U.S.C. § 1844(c)), and section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C.
§ 3105(b)(1)), to select or to approve the appointment of Federal Reserve examiners, assistant examiners and special examiners for the purpose of making examinations for or by the direction of the
Board.
3. The International Banking Act of 1978 requires a
foreign bank to enter into agreement with the Board
that a U.S. branch outside of the foreign bank's home
State would "receive only such deposits at the place of
operation of such [a] branch as would be permissible
for a corporation organized under section 25(a) of the
Federal Reserve Act under rules and regulations ad
ministered by the Board. The Board has delegated its
authority to enter into such an agreement to the Federal Reserve Banks.
Effective December 30, 1980 section 265.2(f) is
amended as follows:
Section 265.2—Specific Functions Delegated to
Board Employees and to the Federal Reserve
Banks
(f) Each Federal Reserve Bank is authorized as to a
member bank or other indicated organization for
which the Reserve Bank is responsible for receiving
applications or registration statements; as to its offices
under subparagraph (23) of this paragraph; and as to its
own facilities under subparagraph (26) of this paragraph:
(49) Under the provisions of section 5 of the International Banking Act of 1978 (12 U.S.C. § 3103), to
enter into an agreement or undertaking with a foreign bank that such bank shall receive only such deposits at its out-of-home State branch as would be
permissible for an Edge Corporation.
4. In acting upon applications and requests pursuant
to the Board's Regulation K as revised on June 17,
1979, the Board has found that a number of administrative actions that currently must be taken by the Board
are of a ministerial nature and could be more expeditiously handled by the Reserve Banks. Accordingly,
the Board has delegated certain authority under Regulation K to the Director of the Division of Banking Supervision and Regulation and the Federal Reserve
Banks.
Effective December 30, 1980, sections 265.2(c) and
265.2(f) are revised as follows:
Section 265.2—Specific Function Delegated to
Bank Employees and to Federal Reserve
Banks
(c) The Director of the Division of Banking Supervision and Regulation (or, in the Director's absence,
the Acting Director) is authorized:
(28) Pursuant to section 211.5(c)(2) of this Chapter
(Regulation K), to require that an investor file an application for the Board's specific consent.
Legal Developments
(f) Each Federal Reserve Bank is authorized as to a
member bank or other indicated organization for
which the Reserve Bank is responsible for receiving
application of registration statements ; as to its officers
under subparagraph (23) of this paragraph; and as to its
own facilities under subparagraph (26) of this paragraph:
(18) Under the provisions of the second paragraph
of section 25(a) of the Federal Reserve Act (12
U.S.C. 612) and § 211.4(a)(2) of this chapter (Regulation K), to issue to an Edge Corporation a final
permit to commence business and to approve
amendments to the Articles of Association of any
"Edge Corporation" to reflect the following:
(iv) any change in the name of such corporation;
and
(v) deletion of the requirement that all directors
and shareholders of such corporation must be U.S.
citizens.
(27) Under section 211.5(e) of this chapter (Regulation K), to extend the time within which an investor
must divest itself of interests in a foreign portfolio
investment, joint venture or subsidiary acquired in
satisfaction of a debt previously contracted.
(45) To extend the time within which an Edge or
Agreement Corporation or a member bank or a bank
holding company may accomplish a purchase of
stock pursuant to section 25 or 25(a) of the Federal
Reserve Act or section 4(c)(13) of the Bank Holding
Company Act if no material change has occurred in
the general condition of the corporation, the member bank or the bank holding company since such
authorization.
(50) Pursuant to section 211.4(c)(2) of this Chapter
(Regulation K), to approve an Edge Corporation application to establish a branch that represents the
conversion of an Edge Corporation to a branch of
another Edge Corporation with the same parent.
(51) Pursuant to section 211.5(c) of this Chapter
(Regulation K), to grant prior specific consent to an
investor for an investment in its first subsidiary, its
first joint venture, and its first portfolio investment,
where such investment does not exceed the general
consent limitations of section 211.5(c)(l)(i) of this
Chapter.
41
(52) Pursuant to section 211.5(c)(2) of this Chapter
(Regulation K), to require that an investor file an application for the Board's specific consent.
AMENDMENTS
TO RULES
OF
PROCEDURE
The Board of Governors has amended its Rules of Procedure to reflect steps taken by the Board to improve
the effectiveness of newspaper notices of applications
required under section 262.3(b) of the Board's Rules of
Procedure, by requiring the use of a standardized form
of notice; specifying that notices appear in the classified legal notices section of the newspaper; and requiring submission of the application immediately after the
first notice is published.
Effective for all applications for which notice is published on or after February 1, 1981, Rules of Procedure
is amended as follows:
Section 262.3—Applications
(b) Notice of applications.
(1) In the case of applications,
(i) for membership in the Federal Reserve System
where such membership would confer Federal deposit insurance on a bank,
(ii) by a State member bank for the establishment
of a domestic branch or other facility that would
be authorized to receive deposits,
(iii) by a State member bank for the relocation of
a domestic branch office,
(iv) for merger, consolidation, or acquisition of
assets or assumption of liabilities, if the acquiring,
assuming, or resulting bank is to be a State member bank,
(v) to become a bank holding company, and
(vi) by a bank holding company to acquire ownership or control of shares or assets of a bank, or
to merge or consolidate with any other bank holding company,
the applicant shall cause to be published on the same
day of each of two consecutive weeks a notice in the
form prescribed by the Board. The notice shall be
placed in the classified advertising legal notices section of the newspaper, and the first notice may appear no more than ninety calendar days prior to acceptance by the Reserve Bank of the application.
The notice must provide an opportunity for the public to give written comment on the application to the
appropriate Federal Reserve Bank for at least thirty
days after the date of publication of the first notice.
42
Federal Reserve Bulletin • January 1981
In addition, between publication of the first and second notice, the applicant shall submit to the appropriate Reserve Bank for acceptance copies of the application, together with a copy of the notice as it
appeared in the newspaper. Such notice shall be
published in a newspaper of general circulation in
(A) the community in which the head office of the
bank is or is to be located in the case of an application for membership that would confer deposit insurance, (B) the community or communities in
which the head office of the bank and the proposed
branch or other facility (other than an electronic
funds transfer facility) are located in the case of an
application for the establishment of a domestic
branch or other facility that would be authorized to
receive deposits, (C) the community or communities
in which the head office of the bank, the office to be
closed, and the office to be opened are located in the
case of an application for the relocation of a domestic branch office, (D) the community or communities
in which the head office of each of the banks to be
party to the merger, consolidation, or acquisition of
assets or assumption of liabilities are located in the
case of an application by a bank for merger, consolidation, or acquisition of assets or assumption of liabilities, or (E) the community or communities in
which the head offices of the largest subsidiary
bank, if any, or an applicant and of each bank,
shares of which are to be directly or indirectly acquired, are located in the case of applications under
section 3 of the Bank Holding Company Act.
AMENDMENTS
TO RULES
OF
ORGANIZATION
The Secretary of the Board has approved technical
amendments to the Board's Rules of Organization to
reflect organizational changes. The amendments will
bring up to date descriptions of the functions of various offices and divisions of the Board.
Effective December 31, 1980, section 3 of Rules of
Organization is revised as follows:
Section 3—Central Organization
The Board's central organization consists of the members of the Board and the following Offices, Divisions,
and Officials:
(a) Office of Board Members consists of the members
of the Board, Assistants, and Special Assistants to the
Board assigned to public affairs and Congressional
liaison.
(b) Office of Staff Director for Monetary and Finan
cial Policy is responsible for preparation of position
papers and other documents on monetary policy issues, including issues relating to open market, discount, and reserve requirement policy ; performance of
Secretariat functions for the Federal Open Market
Committee, coordination of regulatory and statistical
issues closely related to monetary policy; liaison with
the trading desk at the Federal Reserve Bank of New
York in connection with open market operations; liaison with Treasury or other agencies in the domestic
financial area; coordination with the System Account
Manager and with the Treasury on foreign exchange
market operations; Eurodollar and international banking policy issues; coordination of analysis and development of options for Board consideration with regard
to foreign exchange policies and the international payments mechanism; and appropriate staff coordination
with other agencies in these areas.
The Office also reviews and coordinates statistical
and regulatory reports required by the Board of banks
and bank holding companies; and performs Secretariat
functions for the Depository Institutions Deregulation
Committee.
(c) Office of Staff Director for Federal Reserve Bank
Activities is responsible for overseeing the Division of
Federal Reserve Bank Operations, assisting the
Board's Committee on Federal Reserve Bank Activities, and coordinating the functions of other Board Divisions that relate to Federal Reserve Bank matters.
The responsibilities of this office also include all Reserve Bank director matters, coordination of the annual evaluation program for Federal Reserve Banks, the
Federal Reserve System's program for emergency preparedness, and representing the Board in activities
pertaining to Bank operational matters in meetings
with foreign central banks and other United States
Government agencies.
(d) Office of Staff Director for Management is responsible for the planning and coordination of staff operations and organization and for resource management,
and supervision of the following functions: Board
building administration and operations, Board budget
and accounting activities, data processing; personnelrelated activities, Equal Employment Opportunity,
and contingency planning operations.
(e) Office of the Secretary, headed by the Board's
Secretary, coordinates and handles items requiring
Board action, including actions under delegated authority; prepares agenda for Board meetings; implements actions taken at Board meetings; prepares, circulates and indexes minutes of the Board; has
responsibility for the Board's Regulatory Improve-
Legal Developments
ment Project; provides liaison at the staff level with the
Federal Advisory Council and ad hoc groups of the
Reserve Banks; makes arrangements for individuals
and groups visiting the Board; maintains custody of
and provides reference service to official records of the
Board; handles correspondence and public information requests; secures passports and visas for official
foreign travel of System personnel; and provides relief
secretarial and stenographic services.
(f) Legal Division, headed by the Board's General
Counsel, advises the Board in carrying out its statutory and regulatory responsibilities by the preparation
of Board decisions, regulations, rules, instructions and
legal interpretations of statutes and regulations administered by the Board, represents the Board in civil litigation and administrative proceedings, assists other
Divisions in fulfilling their responsibilities in such
areas as contracting, fiscal agency activities, Federal
Reserve Bank matters, labor law, personnel, supervisory enforcement matters, and prepares testimony or
comments on proposed legislation.
(g) Division of Research and Statistics.
(h) Division of International Finance.
* **
* **
(i) Division of Federal Reserve Bank Operations,
headed by a Director, advises and assists the Board
with respect to matters concerning the planning and
programs for operations of the Federal Reserve
Banks. It provides an appraisal of Reserve Bank building programs; provides analysis and recommendations
for Board policy in the payments mechanism area;
provides an appraisal of Reserve Bank communication
and automation plans and proposals; and maintains liaison with various interested parties on payments
mechanism matters.
The Division is responsible for financial examinations and operational reviews of Federal Reserve Bank
functions including: protection, fiscal agency, open
market, check processing, data processing, communications, coin and currency, audit, and various staff
functions. The Division administers an expense control and budgeting system for collection and analysis
of budget and expense data; prescribes accounting
principles, standards and related requirements to be
followed by the Reserve Banks; and provides certain
centralized financial accounting services. The Division
also maintains liaison with the Treasury and other
Government agencies and with various interested parties on matters related to Reserve Bank operation
within its area of responsibility. The Division also
coordinates the printing and distribution of Federal
Reserve notes and is jointly responsible with the Bu
43
reau of the Mint for the production and distribution of
coin.
(j) Division of Banking Supervision and Regulation,
headed by a Director, coordinates the bank supervisory functions of the System and evaluates the examination procedures of the Reserve Banks; exercises
general supervision of the commercial and fiduciary
activities of State member banks; administers the supervisory features of laws and regulations relating to
affiliates and bank holding companies, supervises various foreign banking activities of member banks and
foreign banking and financing corporations; administers the public disclosure provisions of the Securities
Exchange Act of 1934, as amended, in their application to State member banks, and the provisions of
the Act giving responsibility to the Board for regulating security credit transactions; administers the pertinent provisions of the Financial Institutions Act of
1966, and amendments contained in the Financial Institutions Regulatory and Interest Rate Control Act of
1978 in their application to State member banks, bank
holding companies, nonbank subsidiaries, Edge Act
Corporations, foreign banks with domestic operations
and persons related to such institutions; monitors the
Currency and Foreign Transactions Reporting Act, in
its application to State member banks; processes and
presents to the Board applications filed pursuant to the
Bank Holding Company Act of 1956, as amended, and
the Bank Merger Act and various other applications
submitted under the provisions of the Federal Reserve
Act or related statutes; and advises the Board regarding developments in banking and bank supervisory
policies and procedures.
(k) Division of Consumer and Community
Affairs,
headed by a Director, implements consumer affairs
legislation for which the Board has responsibility. Its
functions include drafting regulations and interpretations pursuant to the Truth in Lending Act (as
amended), the Federal Trade Commission Improvements Act, the Equal Credit Opportunity Act (as
amended), the Home Mortgage Disclosure Act, the
Fair Credit Billing Act, the Consumer Leasing Act and
the Electronic Funds Transfer Act, for financial institutions and other firms engaged in consumer credit and
leasing activities. The division also administers the
Board's consumer complaint handling system, and
monitors enforcement activities with regard to State
member banks. The legislation enforced includes the
acts already mentioned above as well as the Community Reinvestment, Fair Credit Reporting, Fair Debt
Collection Practices, Fair Housing, Flood Disaster
Protection, and Real Estate Settlement Procedures
Acts and Regulation Q, Interest on Deposits.
44
Federal Reserve Bulletin • January 1981
(1) Division of Personnel, headed by a Director, is responsible for the development and implementation of
Board personnel policies and programs, and advises
and assists the Board and the Reserve Banks on personnel matters pertaining to the Federal Reserve
Banks.
(m) Division of Support Services, headed by a Director, is responsible for duplication and distribution of
Board publications, press releases, speeches and testimony; space management; printing, contracting, and
supply services; communications; food service management; operation and maintenance of electrical and
mechanical systems; building and grounds maintenance; personnel and building security.
(n) Office of the Controller, headed by the Board's
Controller, is responsible for maintaining an effective
internal financial management system, including budgeting, accounting, receiving and disbursing Board
funds, financial reporting, and internal auditing and
operations reviews.
(o) Division of Data Processing.
(p) Other personnel.
DEPOSITORY
COMMITTEE
* **
* **
INSTITUTIONS
DEREGULATION
Amendments to Interest on Deposits
1. The Depository Institutions Deregulation Committee has adopted a final rule permitting a phaseout of
finders fee programs over an 18-month period for those
depository institutions that can demonstrate that finders fees accounted, on average, for 25 per cent or more
of their outstanding domestic small-denomination time
and savings deposits over the ten-quarter period ending June 30, 1980.
Effective December 31, 1980, the Committee
amends Part 1204 (Interest on Deposits) by adding section 114 as follows:
Part 1204—Interest on Deposits
Section 1204.114—Phaseout of Finders Fees
(a) Notwithstanding the provisions of (12 CFR
§ 1204.110), during the period from December 31, 1980
through June 30, 1982 (the "phaseout period"), any
fee paid by a qualifying depository institution to a person who introduces a depositor to the institution (a
"finders fee") shall not be regarded as a payment of
interest to the depositor for purposes of determining
compliance with interest rate ceilings, if the institution
complies with all of the requirements set forth in subsection (b). For purposes of this section, a qualifying
depository institution is a depository institution that
has been certified by its primary federal supervisor to
have demonstrated that finders fees have accounted
for 25 per cent or more of its outstanding domestic
small-denomination (under $100,000) time and savings
deposits, on average, over the ten-calendar quarter period ending June 30, 1980.
(b) A qualifying depository institution must comply
with all of the following requirements to be eligible for
the phaseout granted under subsection (a) of this section:
(1) During the phaseout period, the maximum
amount of small-denomination (under $100,000)
time and savings deposits that may be raised
through the use of finders fees may not exceed 85
per cent of the amount of domestic small-denomination (under $100,000) time and savings deposits on
which finders fees had been paid that mature in the
semi-annual period ending June 30,1981,60 per cent
of the amount of such deposits that mature in the
semi-annual period ending December 31, 1981, and
40 per cent of the amount of such deposits that mature in the semi-annual period ending June 30, 1982.
Provided, however, that during the phaseout period,
the amount of small-denomination (under $100,000)
time and savings deposits on which finders fees are
paid may not exceed the amount of domestic smalldenomination (under $100,000) time and savings deposits outstanding on June 30, 1980 on which finders
fees had been paid.
(2) Any maturing domestic small-denomination (under $100,000) deposit on which a finders fee had
been paid and that is renewed, whether automatically or otherwise, whether or not a finders fee is paid
upon renewal, must be included in the amount of
deposits raised through the use of finders fees for the
purpose of determining compliance with the above
per cent limitations.
(3) All finders fees must be paid in cash, except that
an institution may utilize as finders fees any merchandise it owned on December 1, 1980.
(4) Any advertisement, announcement or solicitation concerning the continued availability of finders
fees during the phaseout period by an institution
shall be limited to contacting directly the institution's depositors or former sponsors of depositors or
to displaying or distributing promotional materials in
an institution's offices. During the phaseout period,
an institution shall not advertise the continued avail-
Legal Developments
ability of finders fees by television, radio, billboards
or other mass media of general circulation (such as
newspapers, magazines).
2. The Depository Institutions Deregulation Committee ("Committee") has adopted a rule providing
that where a time deposit held in an Individual Retirement Account ("IRA") or Keogh (H.R. 10) plan is
paid before maturity within seven days of the establishment of the IRA or Keogh plan, the minimum required early withdrawal penalty is the forfeiture only
of the interest earned on the time deposit.
Effective December 15, 1980, the Committee
amends Part 1204 (Interest on Deposits) by adding section 113 as follows:
Part 1204—Interest on Deposits
Section 1204.113—Early Withdrawal of IRA and
Keogh (H.R. 10) Plan Time Deposits.
Notwithstanding the provisions of 12 C.F.R.
§ 1204.103, where a time deposit, or any portion thereof, held in an Individual Retirement Account established in accordance with 26 U.S.C. § 408 is paid
before maturity within seven days after the establishment of the Individual Retirement Account pursuant to the provisions of 26 CFR § 1.408-(l)(d)(4),
or where a time deposit, or any portion thereof, held in
a Keogh (H.R. 10) plan established in accordance with
26 U.S.C. § 401 is paid before maturity within seven
days after the establishment of the Keogh (H.R. 10)
plan, a depositor shall forfeit an amount at least equal
to the interest earned on the amount withdrawn at the
nominal (simple interest) rate being paid on the deposit.
BANK
ORDERS
HOLDING
ISSUED
COMPANY
AND
BY THE BOARD
BANK
OF
MERGER
GOVERNORS
Orders Under Section 3 of Bank Holding
Company Act
City Voting Trust,
Miami, Florida
Order Approving Formation of Bank Holding
Company
City Voting Trust, Miami, Florida, 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)) of formation of a bank holding company by acquiring more
than 50 percent of the voting shares of City National
45
Bank Corporation ("Bank Corporation"), Miami, Florida, a registered bank holding company, and by indirectly acquiring City National Bank, Miami, Florida.
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 company organized for
the purpose of becoming a bank holding company by
acquiring Bank Corporation, the 19th largest banking
organization in Florida. Bank Corporation's sole bank
subsidiary, City National Bank ("Bank"), Miami,
Florida, has total deposits of $340.9 million, representing approximately 1.0 percent of the total deposits in
commercial banks in the state. 1 Bank is the 10th largest banking organization in the Miami-Fort Lauderdale
banking market, 2 and holds 2.9 percent of total deposits in commercial banks in that market. None of Applicant's principals is associated with any other banking
organization and consummation of the proposal would
not have any adverse effects on existing or potential
competition, or on 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 and future
prospects of Bank Corporation, Bank and Applicant
are consistent with approval. Applicant will not incur
any debt in connection with this proposal. While there
will be no immediate changes in the services offered by
Bank Corporation or Bank upon consummation of the
proposal, considerations relating to the convenience
and needs of the community to be served are consistent with approval of the application. Based upon the
foregoing and other considerations reflected in the record of this application, it is the Board's judgment that
consummation of the proposal to acquire Bank Corporation 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 should 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 Atlanta
pursuant to delegated authority.
1. All banking data are as of June 30, 1980.
2. The Miami-Fort Lauderdale banking market is approximated by
Dade and Broward counties.
46
Federal Reserve Bulletin • January 1981
By order of the Board of Governors, effective
December 23, 1980.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Absent and not voting:
Governors Schultz and Teeters.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Colfax Bancorporation,
Des Moines, Iowa
Order Approving Formation of Bank Holding
Company
Colfax Bancorporation, Des Moines, Iowa, 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)) of formation of a bank holding company
by acquiring 97.1 percent of the voting shares of The
First National Bank in Colfax ("Bank"), Colfax, Iowa.
Notice of the application, affording opportunity for
interested persons to submit comments has been given
in accordance with section 3(b) of the Act. The time
for filing comments has expired, and the Board has
considered the application and all comments received
in light of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, a nonoperating corporation with no subsidiaries, was organized for the purpose of becoming a
bank holding company by acquiring Bank, which holds
deposits of $21.8 million.1 Bank is the fourth largest of
nine banks in the Jasper County banking market, controlling 11.1 percent of the total deposits in commercial banks in that market. 2 This application represents a reorganization whereby ownership of Bank will
be transferred from individuals to a corporation owned
by the same individuals. Applicant neither engages in
any activity directly nor holds shares of any other
bank or nonbank organization. Two of applicant's
principals are also associated with other banking organizations, only one of which, Hawkeye Bancorporation ("Hawkeye"), Des Moines, Iowa, competes in
the relevant market through a subsidiary bank. However, the Board finds that Applicant's principals do not
control Hawkeye or its subsidiary banks, and that
Hawkeye does not control Applicant, its principals or
Bank. Nor does it appear that Applicant's principals
1. All banking data are as of December 31, 1979.
2. The Jasper County banking market is approximated by Jasper
County, Iowa.
exercise sufficient influence over the affairs of Hawkeye's subsidiary bank to warrant a finding of adverse
competitive effects. 3 Therefore, it appears that no significant amount of existing competition would be eliminated as a result of consummation of this proposal.
Furthermore, it appears that consummation of this
proposal would not have an adverse effect upon potential competition nor would it increase the concentration of resources in any relevant market. Accordingly,
the Board concludes that competitive considerations
associated with this proposal are consistent with approval of the application.
Where principals of an applicant are engaged in operating a chain of banking organizations, in addition to
an analysis of the one-bank holding company proposal
before it the total chain is considered, and the financial
and managerial resources and future prospects of the
chain is analyzed, in the context of the Board's multibank holding company standards. Based upon such an
analysis is this case, the financial and managerial resources and future prospects of Applicant and Bank
appear satisfactory.
The future prospects of Applicant are dependent upon the financial resources of Bank. Although Applicant will incur debt in connection with this proposal, it
appears that this debt can be serviced without placing
undue strain on the financial resources of Applicant or
Bank. Therefore, the Board concludes that considerations relating to banking factors are consistent with
approval of the application.
Upon consummation of the proposed transaction,
Applicant will expand the services offered by Bank,
including the introduction of free checking accounts,
overdraft checking and the payment of the maximum
allowable rates on savings deposits. In addition, Applicant will increase Bank's efforts in meeting the mortgage credit needs of its local community. Accordingly,
convenience and needs considerations are consistent
with approval of this proposal. Based upon the foregoing and other facts of record, the Board concludes
that consummation of the proposal would be in the
public interest and that the application should be approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth
3. One of Applicant's principals, Mr. Robert Murray, a director,
officer and 10 percent shareholder of Applicant, is senior vice president of Hawkeye with responsibilities in financial and accounting matters. However, Mr. Murray does not own or control any shares of
Hawkeye, nor is he on Hawkeye's board of directors. Moreover, Mr.
Murray has no position with Hawkeye's subsidiary bank located in the
Jasper County banking market. The Board finds, that based on the
facts of record in this application there is little likelihood that Mr.
Murray's roles with the two banking organizations would result in the
two organizations being substantially less competitive with each other.
Legal Developments
calendar day following the effective date of this Order
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Chicago pursuant to delegated authority.
By order of the Board of Governors, effective
December 23, 1980.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Teeters, and Gramley. Voting against this
action: Governors Schultz and Rice.
(Signed)
[SEAL]
E. ALLISON,
Secretary of the Board.
THEODORE
Dissenting Statement of Governors Schultz and Rice
We concur with the majority's conclusion that Hawkeye would not control Applicant upon consummation
of the proposed application. Nevertheless, we believe
that Mr. Murray's roles as director and officer of Applicant and senior vice president of Hawkeye, which
controls the largest bank in Bank's relevant market,
require denial of this application. Although Applicant
submits that Mr. Murray's position with each organization would not result in any conflicts of interest or
possible lessening of competition between the two organizations and their subsidiary banks, we cannot
agree with this contention. We believe that Mr. Murray's position with each organization creates the likelihood that the amount and effectiveness of competition
between the two organizations would be lessened. Accordingly, we would deny the proposed bank holding
company formation.
December 23, 1980
Commercial Banc-Corp,
Monroe, Wisconsin
Order Approving Retention of Bank Shares
Commercial Banc-Corp, Monroe, Wisconsin, 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 retain 46.5 percent of the voting
shares of The Commercial and Savings Bank ("Bank"),
Monroe, Wisconsin.
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
47
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant became a bank holding company as a result of the 1970 Amendments to the Act by virtue of its
direct ownership and control of 47.5 percent of the
outstanding voting shares of Bank. In 1973 and 1974,
without the prior approval of the Board, Applicant acquired approximately 3.2 percent of the outstanding
voting shares of Bank in four unrelated transactions.
Subsequently, Applicant acquired 11,482 shares without prior Board approval and sold 757 shares, bringing
its total holdings to 90.3 percent of the outstanding
voting shares of Bank. These acquisitions were apparently made in reliance on section 3(a)(B) of the Act
(12 U.S.C. § 1842(a)(B)) which permits a bank holding
company controlling a majority of a Bank's shares to
acquire additional shares without prior Board approval. Applicant mistakenly believed it could aggregate
with its direct holdings shares held by its directors and
their families and its principal shareholders. The
Board does not believe such aggregation is appropriate
and Applicant's share acquisitions were therefore in
violation of the Act. Applicant now seeks the Board's
approval to retain all of the acquired shares, representing 46.5 percent of the voting shares of Bank.
Bank, which holds deposits of $54.8 million, is the
58th largest Bank in Wisconsin and controls 0.3 percent of the total deposits in commercial banks in the
state. 1 Bank is the second largest of 16 banking organizations in the relevant banking market and controls
19.7 percent of the total deposits in commercial banks
in the market. 2 Applicant has no other banking subsidiaries. Since Applicant already controls Bank and
this application is to retain shares acquired by Applicant, it does not appear that approval of this application would have any adverse effect on competition
or the concentration of banking resources in any relevant area. Thus, competitive considerations are consistent with approval of the application.
The financial and managerial resources and future
prospects of Applicant and Bank are considered generally satisfactory. In making its analysis of the managerial resources of Applicant, the Board notes that this
application is an after-the-fact request for the Board's
approval to retain shares acquired in violation of the
Act. The Board has taken into consideration the fact
that Applicant has taken steps to conform its operations to the Act by promptly filing this application. In
addition, Applicant's management has furnished the
Board with definite and satisfactory undertakings regarding its future conduct, including the adoption of an
1. All banking data are as of December 31, 1979.
2. The relevant market is approximated by all of Green County and
the eastern three-fifths of Lafayette County, Wisconsin.
48
Federal Reserve Bulletin • January 1981
affirmative compliance program under the direction of
an individual responsible for ensuring that Applicant's
management is aware of its responsibilities under the
Bank Holding Company Act and the Board's Regulation Y. The Board expects that these actions will assist
Applicant in avoiding any future violations. Upon consideration of the above and other information in the
record evidencing Applicant's intent to comply with
the requirements of the Act and all the circumstances
surrounding the stock acquisitions made without the
required prior approval of the Board, the Board has
determined that the circumstances of the violations do
not warrant denial of the application. With respect to
its other operations and the operations of Bank, Applicant's managerial resources are regarded as generally
satisfactory. Accordingly, considerations relating to
banking factors are consistent with approval.
Although no immediate changes in the services or
facilities of Bank are contemplated as a result of this
proposal, considerations relating to the convenience
and needs of the community to be served are consistent with approval of the application. Therefore, it is
the Board's judgment that Applicant's retention of the
shares of Bank 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.
By order of the Board of Governors, effective
December 16, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, Rice, and Gramley.
(Signed)
[SEAL]
E. ALLISON,
Secretary of the Board.
THEODORE
Hutsonville Bank Corp.,
Hutsonville, Illinois
Order Approving Formation of Bank Holding
Company
Hutsonville Bank Corp., Hutsonville, Illinois, 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)) of formation of a bank holding company
by acquiring 80 percent or more of the voting shares of
Farmers and Merchants Bank of Hutsonville ("Bank"),
Hutsonville, Illinois.
Notice of the application, affording opportunity for
interested persons to submit comments, has been given in accordance with section 3(b) of the Act. The time
for filing comments has expired, and the Board has
considered the application and all comments received
in light of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, a nonoperating corporation with no subsidiaries, was organized to acquire Bank and become a
bank holding company. Bank is the smallest of five
banks in the Crawford County banking market; its deposits of $15.2 million represent 10.5 percent of the
deposits in commercial banks in that market. 1 Under
Applicant's proposal Bank's ownership would shift
from individuals to a corporation owned by the same
individuals. Applicant and Bank are not associated,
through their principals or otherwise, with any other
bank in the Crawford County market, and consummation of the proposal would not have an adverse effect on competition or concentration in any relevant
area. Accordingly, competitive considerations are
consistent with approval of the application.
The financial and managerial resources and future
prospects of Applicant and Bank are generally satisfactory. As part of this proposal Applicant will increase Bank's capital significantly, and it appears that
Applicant will be able to maintain Bank's capital at
adequate levels while retiring its acquisition debt.
These considerations relating to Bank's financial resources and future prospects lend weight toward approval of the application.
Considerations relating to the convenience and
needs of the community that Bank serves, however,
embrace some positive and some negative elements.
On the positive side, the record shows that Bank's
loan-to-deposit ratio, while still low, has increased
considerably over the last ten years at the direction of
Bank's current president, and that much of this loan
growth was in the area of residential mortgage lending.
The record also shows that Bank has been active in
lending to local farms and businesses. In addition, the
Board notes that Bank has complied with the consumer protection laws and regulations applicable to it.
On the other hand, the Board notes with concern
that in 1978 Bank stopped making residential mortgage
loans. Since there are no other banks, savings and loan
associations, or mortgage companies in Hutsonville,
local residents can obtain such mortgage loans only by
travelling to other cities and towns. Public policy as
embodied in the Community Reinvestment Act is that
a bank has an obligation to serve the credit needs of its
community consistent with safety and soundness, and
the Board would add that this is especially true when
that bank is the only depository institution in its town.
The Board, however, is encouraged by the fact that
the increase in Bank's capital that will result from con-
1. The Crawford County banking market is approximated by Crawford County, Illinois. All banking data are as of December 31, 1979.
Legal Developments
summation of this proposal will enable it to accommodate its community's needs more fully. Therefore, the
Board concludes that on balance considerations related to convenience and needs do not weigh for denial.
Accordingly, it is the Board's judgment that the proposed transaction is in the public interest and that the
application should be approved. On the basis of the
record the application is approved for the reasons
summarized above. The transaction shall not be made
before the thirtieth day after the effective date of this
Order or later than three months after the effective
date of this Order, unless that period is extended for
good cause by the Board, or by the Federal Reserve
Bank of St. Louis pursuant to delegated authority.
By order of the Board of Governors, effective
December 15, 1980.
Voting for this action: Vice Chairman Schultz and Governors Teeters, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Partee.
(Signed)
E. ALLISON,
Secretary of the Board.
THEODORE
[SEAL]
MontanaBancsystem, Inc.,
Billings, Montana
Order Approving Formation of a Bank Holding
Company
Montana Bancsystem, Inc., Billings, Montana, 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)) of formation of a bank holding company
by acquiring 85 percent or more of the voting shares of
Montana Bank of Belgrade, Belgrade, Montana ("Belgrade Bank"); Montana Bank of Circle, N.A., Circle,
Montana ("Circle Bank"); First National Montana
Bank of Missoula, Missoula, Montana ("Missoula
Bank"); Montana Bank of South Missoula, Missoula,
Montana ("South Missoula Bank"); Baker Bancorporation, Inc., thereby indirectly acquiring Montana
Bank of Baker, N.A., Baker, Montana ("Baker
Bank"); Bozeman Bancorporation, Inc., thereby indirectly acquiring Montana Bank of Bozeman, N.A.,
Bozeman, Montana ("Bozeman Bank"); Butte Insurance Agency, Inc., thereby indirectly acquiring Montana Bank of Butte, N.A., Butte, Montana ("Butte
Bank"); Mineral County Bancorporation, Inc., thereby indirectly acquiring Montana Bank of Mineral
County, Superior, Montana ("Superior Bank"); Red
Lodge Bancorporation, Inc., thereby indirectly acquiring Montana Bank of Red Lodge, N.A., Red
49
Lodge, Montana ("Red Lodge Bank"); Roundup Insurance Agency, Inc., thereby indirectly acquiring
Montana Bank of Roundup, Roundup, Montana
("Roundup Bank"); and Sidney Holding Company,
thereby indirectly acquiring The Sidney National
Bank, Sidney, Montana ("Sidney 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 Bank of Montana System, Great Falls, Montana ("Protestant"), 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 the above-described banks
and bank holding companies. The eleven banks to be
acquired have a common ownership. Several principals of Applicant own directly or indirectly shares of
stock in each bank. Other principals of Applicant own
shares in one or more of the banks to be acquired. Upon acquisition of these organizations (aggregate deposits of $286 million), Applicant would become the third
largest banking organization in Montana with 6.8 percent total deposits in commercial banks in the state. 1
In light of the structure of banking in Montana, consummation of the proposal would not have any adverse effects on banking structure in the state.
Baker Bank is the smaller of two commercial banking organizations located in its relevant banking market and holds approximately $13.0 million in deposits
representing about 40.4 percent of total commercial
bank deposits in that market. 2 Butte Bank is the fourth
largest of seven banking organizations in its relevant
banking market with about $19.7 million or 9.8 percent
of market deposits. 3 Circle Bank is the larger of the
two banks in the relevant market, holding about $15.0
million or 72.1 percent of total deposits in commercial
banks in the market. 4 Red Lodge Bank, the second
largest of four banks in the Carbon County banking
market, holds approximately $12.3 million or 31.2 percent of total deposits in commercial banks in the mar-
1. Banking data are as of December 31, 1979.
2. For Baker Bank, the relevant banking market is approximated by
Fallon County, Montana, plus an area extending approximately 20
miles east of Fallon County into North Dakota.
3. For Butte Bank, the relevant banking market is approximated by
Deer Lodge County, Silver Bow County, and the southwestern third
of Jefferson County, Montana.
4. For Circle Bank, the relevant banking market is approximated by
McCone County, the western portion of Richland County and the
southwestern third of Dawson County, Montana.
50
Federal Reserve Bulletin • January 1981
ket. 5 Roundup Bank is the larger of two banks in its
relevant market and holds $15.9 million or 55.9 percent
of market deposits. 6 Sidney Bank is the second largest
of five commercial banking organizations in its market
with $31.3 million or 35 percent of total deposits in the
market. 7 From the facts of records it appears that no
competition was eliminated at the time these banks became affiliated. Because these banks compete in markets separate and distinct from one another and in
markets different from those of the other banks to be
acquired, acquisition of these banks would not have
any adverse effects on competition in any relevant
area.
Bozeman Bank is the third largest of eight commercial banking organizations in the Gallatin County
banking market (the relevant market) 8 and holds approximately $27.9 million or 13.3 percent of total deposits in commercial banks in the market. Belgrade
Bank is the sixth largest banking organization in that
market, holding $8.5 million or 4.1 percent of market
deposits. Although the original affiliation between
Bozeman and Belgrade Bank may have eliminated
some existing competition, at the time the Banks were
acquired by their current shareholders they had been
affiliated for five years. In light of the facts of record,
including the fact that the two largest banking organizations in the market have a substantially larger presence in the market than would Applicant upon consummation, and that there remain four independent
banks within the market, the Board concludes that the
acquisition of Bozeman Bank and Belgrade Bank by
Applicant is consistent with approval.
Missoula Bank and South Missoula Bank are the
second and third largest of eight banks competing in
the relevant banking market 9 with 31.3 percent (total
deposits of $94.9 million) and 6.8 percent (total deposits of $20.8 million), respectively, of deposits held in
commercial banks in the market. South Missoula Bank
was organized in 1966 by the controlling shareholders
of Missoula Bank prior to the acquisition of these
Banks by the current shareholders. Superior Bank is
the seventh largest bank in the market, holding $8.0
million or 2.7 percent of market deposits. Consum5. For Red Lodge Bank, the relevant banking market is approximated by Carbon County, Montana.
6. For Roundup Bank, the relevant banking market is approximated by Musselshell and Golden Valley Counties, Montana.
7. For Sidney Bank, the relevant banking market is approximated
by the western portion of McCone County, Richland County, an area
extending 20 miles into North Dakota and 10 miles north and south of
Sidney, and the northwestern third of Dawson County.
8. For Bozeman and Belgrade Banks, the relevant banking market
is approximated by Gallatin County, Montana.
9. For Missoula, South Missoula and Superior Banks, the relevant
geographic market is approximated by the southern two-thirds of Mineral County, Missoula County, the northern portion of Ravalli County
and the southern portion of Lake County.
mation of the proposal would cause Applicant to control 40.8 percent of total deposits in commercial banks
in the market. At the time Superior Bank was acquired
by shareholders who also had interests in Missoula
Bank and South Missoula Bank, some existing competition was eliminated. However, Superior Bank is
separated from the Missoula Banks by 57 miles. Thus,
it appears that the effects on competition of the affiliation of these banks is at most only slightly adverse. In
light of the above, it appears that consummation of the
transaction would have only slightly adverse effects on
competition. 10
The financial and managerial resources of Applicant
and Banks are generally satisfactory and the future
prospects for each appear favorable. In considering
the effect of this transaction on the convenience and
needs of the communities to be served, the Board
notes that the banking structure of Montana is currently dominated by two large bank holding companies
based in Minnesota. Consummation of the proposal
would provide another large bank holding company to
compete with these organizations. Bank holding company affiliation would permit Applicant's proposed
banking subsidiaries to compete more effectively in
their respective markets by allowing them to raise
funds more efficiently and to offer expanded services.
In this regard, Applicant indicates that it intends to
cause its proposed subsidiary banks to increase their
commercial lending, lending to rural areas, and mortgage lending, and will make available trust services at
those banks. Therefore, the Board has determined that
considerations relating to the convenience and needs
of the communities to be served lend sufficient weight
10. Protestant has alleged that several principals of Applicant may
have violated the Bank Holding Company Act and the Change in Bank
Control Act by acquiring in their own names less than ten percent of
the voting shares of Protestant. Although the facts of record indicate
that several individuals who have ownership interests in Applicant
have purchased shares of Protestant, the number of shares held by
each individual does not rise to a level that would require the filing of a
notice under the Change in Bank Control Act (12 U.S.C. § 1817(j)). In
any event, it appears that this issue is rendered moot by the acquisition by Mr. Stephen Adams of the shares of Protestant previously held
by one of Applicant's shareholders.
Protestant has also alleged that the name of Applicant, Montana
Bancsystem, is deceptively similar to the name of Protestant, Bank
of Montana System. Protestant contends that the Board should not
proceed to act on the application until this issue has been resolved. It
is the Board's understanding that Applicant and Protestant are in litigation in a state court proceeding on the issue of whether the respective names are deceptively similar. As the Board has previously
stated, it is of the view that the resolution of such issues rests with the
courts and is not properly within the jurisdiction of the Board under
section 3(c) of the Act. First Security Corporation, 61 FEDERAL RESERVE BULLETIN 589, n. 1 (1975). In light of these considerations, it
appears that Protestant has presented no evidence of factual disputes
or other matters that would warrant a hearing on the application.
Therefore, the Board has determined that Protestant's request for a
hearing should be denied.
Legal Developments
to outweigh any adverse competitive effects that might
result from consummation of the proposal. Accordingly, the Board has determined 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 Minneapolis
under delegated authority.
By order of the Board of Governors, effective
December 19, 1980.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Absent and not voting:
Governors Schultz and Teeters.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Multi-Line, Inc.,
Tampa, Florida
Order Approving Acquisition of Additional Shares of
Bank Holding Company
Multi-Line, Inc., Tampa, Florida, a bank holding company within the meaning of the Bank Holding Company Act ("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 an additional 10.3 percent of
the outstanding voting shares of First Florida Banks,
Inc., ("First"), Tampa, Florida, also a bank holding
company within the meaning of the Act. Applicant
currently owns 8.1 percent of the outstanding voting
shares of First. Upon consummation of the proposed
acquisition, Applicant would own 18.4 percent of the
outstanding voting shares of First.
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, the 55th largest banking organization in
Florida, controls one bank with deposits of $122.9 million, representing 0.4 percent of the total deposits in
commercial banks in the state. 1 First is the seventh
1. All banking data are as of June 30, 1979.
51
largest banking organization in Florida, controlling 16
banks holding aggregate deposits of $1.4 billion representing 4.1 percent of the total deposits in commercial
banks in the state. Consummation of this proposal
would not result in a significant increase in the concentration of banking resources in Florida.
Applicant is the largest of nineteen banking organizations in the North Pinellas County banking market
and controls Bank of Clearwater, Clearwater, Florida
("Clearwater Bank"), which holds 14.0 percent of the
total deposits in commercial banks in the market. Inasmuch as none of First's subsidiary banks compete in
the same market as Clearwater Bank, consummation
of this proposal will not eliminate any existing competition between Applicant and First. Applicant's relative size makes it an unlikely entrant into any of the
markets served by First. While First could establish a
de novo bank in the North Pinellas market, based on
the facts of record it appears that First is an unlikely
entrant into the market at this time. In addition, other
facts of record demonstrate that the proposal would
not result in a significant foreclosure of competition.
The market is not highly concentrated, and contains
many competitors, including eight of the ten largest
bank holding companies in Florida. Furthermore, ten
organizations in the South Pinellas County banking
market may expand into the market by branching.
Thus, in the Board's judgment, consummation of the
proposal would not have any adverse effects upon
existing or potential competition, nor would it 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 its subsidiary bank are considered to be satisfactory and their future prospects appear favorable. The
financial and managerial resources of First are generally satisfactory and consistent with approval. In this
connection, the Board notes that acquisition by Applicant of this significant interest in First would provide
First with a continuing source of capital. Accordingly,
banking factors are consistent with approval of this application. Although Applicant proposes no immediate
changes in the services offered by First, considerations related to the convenience and needs of the
communities to be served appear to be consistent with
approval of the application.
In considering this application, the Board has reviewed Applicant's continued eligibility for an exemption from the prohibition on nonbanking activities in
section 4 of the Act pursuant to the provisions of section 4(c)(ii) of the Act. 2 When the Board approved Ap2. Section 4(c)(ii) exempts from the prohibitions of section 4:
52
Federal Reserve Bulletin • January 1981
plicant's application to become a bank holding company, the Board found that, as, a successor to its former
parent, Lykes Bros., Inc., Tampa, Florida, Applicant
could retain its container manufacturing business in reliance on the 4(c)(ii) exemption. 3 However, the Board
has previously determined that this exemption would
not continue to be available to eligible companies that
expand their banking interests and become engaged in
the management of banks. 4 The Board believes that in
deciding whether to approve Applicant's proposal, the
Board may legitimately consider whether Applicant
will be engaged in the management of banks upon approval.
Upon examination, the Board believes that the facts
of the relationship between Applicant and First indicate that Applicant will be engaged in the management of banks upon consummation. This application
involves a considerable expansion of Multi-Line's
banking business. In particular, the Board notes that
Applicant presently owns one bank with $122.9 million
in deposits; while First, Florida's seventh largest
banking organization, has 16 banking subsidiaries with
$1.4 billion in deposits. Moreover, upon consummation of this proposal, Applicant will be the largest
single shareholder of First with no other shareholder
owning more than 5 percent of First's shares. Applicant's investment in First will represent an increase of
Applicant's total assets by 28.8 percent. After consideration of all the facts of record, the Board finds it reasonably likely that upon consummation of the proposal
Applicant will be capable of exerting a significant influence over the management and policies of First. Accordingly, it is the Board's judgment that, upon the
acquisition of the shares of First, Applicant may not
retain its container manufacturing operations on the
basis of the section 4(c)(ii) exemption in the Act. The
Board believes it is appropriate to allow Applicant two
years in which to divest its manufacturing operations. 5
Based on the foregoing, it is the Board's judgment
that the proposed transaction would be consistent with
the public interest and that the application should be
approved. Accordingly, the application is approved
for the reasons summarized above, upon the condition
"a company covered in 1970 more than 85 percentum of the voting stock of which was collectively owned on June 30, 1968 and
continuously thereafter, directly or indirectly by or for members
of the same family, or their spouses, who are lineal descendents
of common ancestors."
3. Multi-Line
Inc.,
6 6 FEDERAL RESERVE B U L L E T I N 3 2 9 ( 1 9 8 0 ) .
4. Guaranty Development
Company, 66 FEDERAL RESERVE BUL-
LETIN 165 ( 1 9 8 0 ) .
5. In the Board's view, the loss of the 4(c)(ii) exemption is analogous to the situation where a company becomes a bank holding company subject to the prohibitions of section 4 of the Act against nonbanking acquisitions. Under section 4(a)(2) of the Act, such
companies have two years in which to divest their impermissible nonbank activities.
that Applicant divest its impermissible nonbanking activities, particularly its container manufacturing operations, within no later than two years of the date of this
Order. The transaction shall not be consummated before the thirtieth calendar day following the effective
date of this Order or later than three months after the
effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal
Reserve Bank of Atlanta pursuant to delegated authority.
By order of the Board of Governors, effective
December 9, 1980.
Voting for this action: Vice Chairman Schultz and Governors Teeters, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Wallich and Partee.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary of the Board.
National City Corporation,
Cleveland, Ohio
Order Approving Acquisition of Bank
National City Corporation, Cleveland, Ohio ("National City"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 3(a)(3)
of the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire 100
percent of the voting shares of The Henry County
Bank, Napoleon, Ohio ("Bank").
Notice of this application has been given in accordance with sections 3(b) of the BHC Act and section
262.3 of the Board's Rules of Procedure (12 C.F.R.
§ 262.3), affording interested persons an opportunity
to comment. The time for filing comments and views
has expired. Comments have been received from Ohio
Public Interest Campaign and Citizens to Bring Broadway Back (together, "Protestants"). Comments have
also been received from the Farm Labor Organizing
Committee ( " F L O C " ) and Mrs. Earl Bowers. 1 Protestants' comments on this application principally relate
to the record of National City's lead bank, National
City Bank, Cleveland, Ohio ("NCB"), under the
1. While these comments from FLOC and Mrs. Bowers were received after the close of the comment period, these comments have
been reviewed by the Board in connection with its consideration of
this matter. In connection with its comments on this application,
FLOC also requested that the Board hold a hearing on this application. Section 262.3(d) of the Board's Rules of Procedure, 12 C.F.R.
§ 262.3(d), precludes Board consideration of this request. In any
event, the Board believes that its disposition of Protestants' hearing
request also addresses the issues raised by FLOC's request.
Legal Developments
Community Reinvestment Act of 1977 (12 U.S.C.
§§ 2901-05) ("CRA"). The Board has considered the
application and all comments received in light of the
factors set forth in section 3(c) of the BHC Act and the
CRA.
In addition to interposing numerous objections to
the proposed acquisition, Protestants have requested
that the Board order a formal hearing to air the issues
they have raised. Section 3(b) of the Act requires that
the Board hold a formal hearing concerning an application only when the appropriate state banking authority makes a timely written recommendation of denial
of the application, and no such recommendation has
been received from the state of Ohio Superintendent of
Banks with respect to Applicant's proposal. While no
formal hearing is required in this instance, the Board
could in its discretion order a formal or informal proceeding if it deemed it appropriate. In general the
Board will hold a hearing if it determines there are material questions of facts in dispute that can only be resolved by means of a trial-type proceeding. The Board
has scrutinized the record of this application, and has
determined that there are no material factual differences in the record that would warrant a hearing on
this application. Rather, Protestants' arguments concern the interpretation or significance that should be
accorded to certain facts in the record. Inasmuch as
the Board is charged by statute with making these
judgments, and in view of the fact that all parties have
been afforded ample opportunity to present their arguments in written submissions to the record as well as
the opportunity to comment on one another's submissions, the Board has determined that a hearing
would serve no useful purpose. 2 Accordingly, Protestants' request for a formal hearing is hereby denied.
The Board has considered the application, as well as
Protestants' objections to the proposal, on the merits.
National City, the third largest banking organization
in Ohio, controls 12 banks with aggregate deposits of
approximately $3.0 billion, representing 7.9 percent of
total commercial bank deposits in the state. 3 Acquisition of Bank, with deposits of $28.5 million, would increase Applicant's share of commercial bank deposits
in Ohio by one-tenth of one percent and would not alter its statewide ranking. Bank is the second largest of
six banking organizations in the Henry County banking market, with deposits of $14.8 million, representing 16.9 percent of that market's deposits in com-
2. In addition, on September 10, 1980, staff of the Federal Reserve
Bank of Cleveland attended a public meeting in Cleveland arranged by
Protestants. Reserve Bank staff heard oral testimony by Protestants,
and an analysis of this meeting as well as the materials distributed at
the meeting have been made a part of the record in this matter.
3. All banking data are as of December 31, 1978.
53
mercial banks. 4 In addition, Bank, through its
operation of a branch office in Pleasant Township,
Ohio (deposits of $11.5 million), is the sixth largest of
eight banking organizations in the Defiance banking
market, controlling 7.0 percent of that market's commercial bank deposits. 5 Protestants assert that consummation of this proposal would have adverse effects
on competition and that this acquisition would further
concentrate banking resources in Ohio since Bank is
the only remaining independent bank in Henry County.
Based on its review of the record in this case, the
Board does not find that the proposed acquisition
would have any significantly adverse competitive effects. While National City is one of the largest banking
organizations in Ohio, it is not dominant, and in the
Board's judgment, the acquisition of a relatively small
institution the size of Bank would have a de minimis
impact on the concentration of banking resources in
Ohio. Moreover, the proposal would not eliminate any
existing competition between National City and Bank,
inasmuch as none of National City's banking subsidiaries operate in either of the banking markets
where Bank is located, and National City's nearest
banking subsidiary is located in Williams County, an
adjacent banking market.
With respect to potential competition, the Board
notes that National City has the resources to enter
both the Henry County and Defiance banking markets
de novo either by establishing a new bank or by
branching into Henry County through its subsidiary located in Williams County. Generally, the Board regards the effects of a proposed acquisition on potential
competition as most serious where the markets involved are concentrated; one of the organizations involved is dominant in the market; and the other organization is one of a few likely entrants into the market.
While the Henry County and Defiance banking markets are somewhat concentrated, it appears that Bank
should not be regarded as a dominant organization in
either market. 6 Moreover, it appears that after the proposed acquisition is consummated, numerous potential entrants would remain, since only three of Ohio's
bank holding companies presently are represented in
4. The Henry County banking market is approximated by Henry
County, except Flatrock and Pleasant townships; all market data are
as of June 30, 1978.
5. The Defiance banking market is approximated by Defiance and
Paulding Counties (except Hicksville Township in Defiance County;
Carryall Township in Paulding County); Flatrock and Pleasant townships in western Henry County; and Monroe and Perry Townships in
Putnam County.
6. The Board notes that while Bank is the second largest bank in the
Henry County market, the largest bank in the market, which is owned
by the state's largest holding company, holds more than two times the
market deposits held by Bank.
54
Federal Reserve Bulletin • January 1981
the Henry County market, and only one is represented
in the Defiance market. Accordingly, it is the Board's
judgment that the proposal would not have serious effects on potential competition in either market. Accordingly, the Board concludes that consummation of
the acquisition of Bank by National City would not
have any significantly adverse effects on existing or
potential competition in any market.
The financial and managerial resources of National
City, its banking subsidiaries and Bank are regarded as
satisfactory. Therefore, the Board regards banking
factors as consistent with approval of this application.
In considering the effects of the proposed acquisition on the convenience and needs of the community
to be served, the Board has examined the record of
performance by National City and its banking subsidiaries in meeting the credit needs of its community
as provided in the CRA and the Board's Regulation
BB (12 C.F.R. § 228). The CRA requires the Board to
assess the records of these subsidiaries in meeting the
credit needs of their communities, including low and
moderate income neighborhoods consistent with safe
and sound operation, and to take these records into
account in its evaluation of this application.
Protestants have challenged the CRA record of National City's subsidiary, National City Bank, Cleveland, Ohio ("NCB"). Specifically, Protestants allege
that NCB has failed to meet the need for housing-related credit in the city of Cleveland, particularly its
low and moderate income neighborhoods; that it has
discriminated against residents of neighborhoods with
large non-white populations or those undergoing racial
transition; that it has failed to meet the credit needs of
small businesses in its community; and that its efforts
to ascertain the credit needs of its community are inadequate. 7 In addition, Protestants allege that Applicant has engaged in discriminatory employment practices.
In support of its objections, Protestants have submitted the results of their research regarding the distribution of NCB's mortgage and home improvement
lending in various sections of Cuyahoga County their
analysis of the demand for residential housing credit
and the level of NCB's participation in SBA-guaranteed lending programs.
The Board has examined the submissions of Protestants and National City regarding the issues raised by
7. Protestants also alleged that the acquisition of Bank by National
City would result in further mechanization of the tomato industry in
Henry County to the detriment of migrant farm workers, but have
submitted no evidence to demonstrate how this issue is relevant to the
factors that the Board must consider in acting on applications under
the BHC Act and the CRA. Accordingly, the Board views this allegation as being without merit.
Protestants. The Board has also considered the conclusions of the Office of the Comptroller of the Currency resulting from an examination of NCB that included an assessment of NCB's record of meeting the
requirements of the CRA. At the outset the Board
notes that Protestants do not challenge a finding that
NCB has reasonably delineated its local community, 8
or that NCB is in technical compliance with the procedural requirements of the CRA and the Comptroller's
regulation. There is no evidence of prescreening or
other illegal credit practices by NCB.
With respect to NCB's record of residential mortgage lending, the Board notes that NCB has a strong
retail presence in Cuyahoga County, with 21 percent
of its loan portfolio consisting of residential mortgage
loans and 24 percent consisting of consumer installment loans. From the record it appears that both the
number and dollar volume of such loans made by NCB
in the city of Cleveland are low, particularly when
compared with the number and dollar volume of such
loans in the suburban areas of NCB's community.
However, on previous occasions the Board has indicated that it does not believe that a comparison of
deposits to total loans can be prima facie evidence of
discrimination. 9 Further, a review of NCB's mortgage
loan application records for the years 1977, 1978 and
1979 discloses that the geographic distribution of mortgage credit extended by NCB closely parallels the geographic distribution of the applications it has received.
Moreover, when the volume of NCB's suburban and
city mortgage lending is viewed in light of the demand
for such loans, as approximated by the number of deed
transfers, there is not a great disparity in NCB's record of meeting the demand in the suburban versus the
city areas of its community. Finally, based on a review
of NCB's mortgage lending record for the years 1977,
1978 and 1979, the Board notes that the disparity between NCB's suburban and city mortgage lending declined from a ratio of 13 suburban loans to each city
loan in 1977 to a ratio of 3 suburban loans extended to
each city loan in 1979.
This improvement in NCB's mortgage lending record in city neighborhoods in part may be attributed to
recent efforts by NCB to inform these segments of its
community of the availability of mortgage and home
8. NCB delineates its community as Cuyahoga County and North
Ridgeville, Ohio. Approximately 23 percent of the population of
Cuyahoga County lives on low and moderate income census tracts.
The city of Cleveland contains 203 census tracts, of which 110 or 54.2
percent are classified as low or moderate income. Of the remaining
census tracts within NCB's community, six are classified as low or
moderate income. These six census tracts are located in the suburbs of
Cuyahoga County. There are no low or moderate income census tracts
in North Ridgeville.
9 . AmeriTrust,
6 6 F E D E R A L RESERVE B U L L E T I N , 2 3 8 ( 1 9 8 0 ) ; C R A
Information Statement (45 Federal Register 1940 (1980)).
Legal Developments
improvement credit. Specifically, NCB has instituted a
program whereby all branch managers are required to
maintain contact with local realtors to ascertain the
need for residential mortgage credit in that area, and to
inform them of the availability of such credit at NCB.
In addition, NCB advertises its services in newspapers
of general circulation, as well as in local newspapers
with an inner city orientation.
Another aspect of NCB's housing-related lending
record is its home improvement lending. Based on the
number of owner-occupied dwellings in the suburbs
and in the city, it appears that the number of NCB's
home improvement loans is fairly distributed between
city and suburbs. Moreover, from the record, it appears that within the city, a greater proportion of
NCB's home improvement loans are in low and moderate income neighborhoods. The Board regards
NCB's record of home improvement lending as a positive factor.
Protestants allege that NCB has not served the credit needs of small businesses in its community. In support of this contention Protestants provided information relating to NCB's record of extending Small
Business Administration ("SBA") guaranteed loans
from 1977 to 1979. The record indicates that during
these years NCB extended $2.2 million in SBA-guaranteed loans. Protestants' argument that NCB is not
meeting the credit needs of small businesses in its
community is based solely on NCB's SBA-guaranteed
lending record and fails to take into account other
comparable extensions of credit by NCB. The Board
views SBA-guaranteed loans as only part of a bank's
small business loan portfolio. In particular, the Board
notes that as of June 30, 1980, 20.1 percent of NCB's
outstanding commercial and industrial loan portfolio
was comprised of loans to small business, and that
based on a sample it appears that approximately onefourth of such loans were made in Cleveland's low and
moderate income neighborhoods. Accordingly, the
Board concludes that Protestants' allegations concerning NCB's record of serving the credit needs of
small businesses within its community are without
merit.
Protestants allege that NCB engages in racial discrimination in extending housing-related credit. In
support of this allegation Protestants have submitted
data indicating that NCB has been less active in extending mortgage credit in those areas of its community with predominantly non-white populations and in
neighborhoods undergoing racial transition than in
other areas of its community. 10 Protestants also sub-
10. A predominantly non-white census tract is defined as a census
tract in which more than 75 percent of the population is black.
55
mitted figures indicating that NCB's mortgage lending
activities across neighborhoods declines as the percentage of non-white population increases in a particular neighborhood. When the number of deed transfers
is used as a proxy for demand, it appears that NCB has
been about 5.7 times more active in providing residential mortgage credit in predominantly white neighborhoods than in predominantly black neighborhoods.
A number of factors appear to account for part of
the disparity in NCB's lending record, including different income levels and the number of owner-occupied dwellings between predominantly black and predominantly white neighborhoods. In addition, the
record indicates that mortgage banking companies
have a high market penetration rate in predominantly
non-white neighborhoods. 11 The Board also notes that
NCB's home mortgage lending pattern in large part reflects the geographic distribution of its home mortgage
loan application. 12 Moreover, Protestants have not
provided affidavits from individuals who claim to have
been discriminated against.
The Board has also reviewed NCB's record of extending home improvement credit in predominantly
white, predominantly non-white and transitional
neighborhoods within its community. The facts of record demonstrate that during 1977-1979 NCB extended
approximately the same number and dollar volume of
home improvement loans in predominantly non-white
as in predominantly white areas of Cleveland. Analysis of these figures relative to the number of one-tofour family owner-occupied dwellings in each area indicates that during these years NCB was 1.5 times
more active in extending home improvement loans in
the predominantly non-white neighborhoods than in
the predominantly white neighborhoods in Cleveland.
Protestants have alleged that NCB has failed to adequately assess the credit needs of its community, particularly its low and moderate income neighborhoods.
Protestants have not provided specific factual support
for this contention; instead, they question whether the
kinds of programs NCB has instituted to assess its
community's credit needs reflect a genuine commitment to the CRA. In this regard, Protestants question whether NCB's policy of encouraging employees
to participate in various community service and action
groups represents a commitment to the spirit of the
CRA.
11. Over 80 percent of FHA loans extended in non-white neighborhoods were originated by mortgage banking companies.
12. In 1977 NCB received 7.2 percent of its total mortgage loan
applications from predominantly non-white neighborhoods. In 1978,
this figure was 6.0 percent and in 1979 the percentage dropped to 2.8
percent.
56
Federal Reserve Bulletin • January 1981
The record indicates that NCB has undertaken a
number of programs to monitor the needs of all segments of its community. NCB does encourage its employees to participate in various community organizations. In addition, NCB maintains contact with various
community-oriented organizations some of which are
involved in housing rehabilitation programs in various
parts of Cleveland. Moreover, through contacts with
these organizations, NCB has supported various housing rehabilitation projects and other community service activities. NCB also maintains a small business call
program in order to ascertain the credit needs of this
segment of its community. For example, in 1979, personnel at the two Broadway branches made a total of
367 calls to commercial and industrial firms within
their territory of which 100 were to businesses with
less than $250,000 in annual sales. During the first seven months of 1980 personnel at the two Broadway
branches made 343 calls to businesses within their territory of which 79 were to businesses with less than
$250,000 in annual sales.
Protestants have alleged that "National City's record of employment of women and minorities appears
to be severely lacking." In support of this contention,
Protestants cite a 1978 Report by Cleveland Women
Working which indicated that NCB had fewer women
and minorities in management positions than any of the
five major banks in metropolitan Cleveland. 13 Protestants also point out that "National City Bank has
recently been the focus of an investigation by the U.S.
Department of Labor ("DOL"), which has issued a
finding of discrimination against the bank". 1 4 Contrary to Protestants' assertion, at this time there has
been no finding that either NCB or National City has
been engaged in discriminatory employment practices.
Nor have Protestants supplied the Board with any evidence that either National City or NCB has discriminated against women or minorities in their employment practices. 15 Moreover, it appears that these
13. Protestants state that there are no women or minorities on the
Board of Directors of [National City]. At the same time, Protestants
concede "that there are four females on the Boards of Directors of
affiliate banks, and that one affiliate will soon have a woman president." However, Protestants allege, without proof, that this is due to
National City's policy of allowing its affiliates to retain some independence in personnel selection, and does not reflect National City's
own policy concerning the employment of women and minorities.
14. DOL has commenced an investigation of NCB's employment
practices and an administrative complaint was issued against NCB on
May 20, 1980. On June 22, 1980, NCB filed an answer to the complaint, denying the allegations of discriminatory employment practices
and raising affirmative defenses. This matter has been docketed by the
Adminstrative Law Judge and is scheduled to go to trial in March
1981. U.S. Department of Labor, OFCCP v. National City Bank of
Cleveland.
15. Protestants contend that discriminatory employment practices
should be considered in connection with National City's CRA record.
The Board does not consider the issue raised by Protestants' allega-
issues are presently before the proper administrative
agency. Accordingly, the Board believes it would be
inappropriate at this time for it to pass upon the merits
of these allegations.
In conclusion, the Board has examined the entire
record relating to National City's record of compliance
with the CRA, including the results of the CRA compliance examination by the OCC and the surveys and
field investigations undertaken by staff. The Board
concludes that NCB has offered its services throughout its community and has not arbitrarily excluded any
area. NCB has taken a number of steps aimed specifically to help meet the credit needs of low and moderate income areas. With respect to NCB's performance
in meeting the credit needs of low and moderate income neighborhoods, several aspects of NCB's record
of extending credit to the Cleveland area appear favorable. In particular, the Board notes that NCB's record
of extending home improvement and small business
credit indicates that it has met its affirmative obligation
to help meet the credit needs of its community. Moreover, it appears that the disparity between the amount
of funds committed by Applicant to housing-related
credit in low and moderate income areas versus all
other areas may be partially the result of factors that
affect the demand for such credit. In addition, the disparity in NCB's lending record between predominantly white and predominantly black areas,
when viewed in light of other facts of record, does not
permit a conclusion that NCB has engaged in racial
discrimination.
Furthermore, National City has made several commitments to the Board designed to improve NCB's
CRA record of performance. Specifically, National
City will cause NCB to create and implement an advertising campaign designed specifically to inform low
and moderate income groups of credit services available to them; create and implement a CRA Sensitivity
Program for the bank's personnel, and increase attendance by bank personnel at community group meetings together with a stepped-up call program to visit
these neighborhood organizations. The Board regards
these commitments by National City as steps designed
primarily to foster more effective communication with
the low and moderate income neighborhoods in its
tions to be relevant to NCB's record of meeting the credit needs of its
community although the Board has considered the submissions of individuals who alleged that an applicant or its banking subsidiary were
engaged in discriminatory employment practices in connection with
bank holding company applications. The Board has also recognized
that there may be limits to the extent it may take into consideration
matters of public interest that nevertheless are not directly within the
scope of the Board's regulatory responsibilities under the BHC Act.
Texas American
(1978).
Bankshares,
64 FEDERAL RESERVE BULLETIN 982
Legal Developments
57
community. The Board has relied on each of these
commitments and will closely monitor National City's
efforts to effect compliance.
With respect to other convenience and needs considerations, approval of National City's acquisition of
Bank will enable Bank to provide additional services
to its customers. Upon consummation of the proposed
transaction, Bank will reduce minimum denominations
on certificates of deposit, offer statement savings
plans, and increase its automobile lending activity. In
addition, affiliation with National City will enable
Bank to increase its residential mortgage lending activities and offer credit at more competitive rates. On balance, these factors are sufficient to outweigh any adverse aspects of NCB's CRA performance.
It is the Board's judgment that approval of the application would be in the public interest and that the application should be approved. On the basis of the record the application is approved for the reasons
summarized above. This transaction shall not be made
before the thirtieth day following the effective date of
this Order or later than three months after that date,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Cleveland
pursuant to authority hereby delegated.
By order of the Board of Governors, effective
December 3, 1980.
directly related to extensions of credit by FSHB's
banking subsidiaries. Fort Sam Life engages in underwriting credit life, and credit accident and health insurance in connection with extensions of credit by
FSHB's banking subsidiaries. These activities have
been determined by the Board to be closely related to
banking (12 C.F.R. §§ 225.4(a)(9)(ii) and (10)).
Notice of the applications, affording opportunity for
interested persons to submit comments and views has
been given in accordance with sections 3 and 4 of the
Act (45 Federal Register 3668 and 47922). The time for
filing comments and views has expired, and the applications 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)) and the considerations
specified in section 4(c)(8) of the Act.
On the basis of the record, the application is approved for the reasons set forth in the Board's Statement, which will be released at a later date.
By order of the Board of Governors, effective
November 28, 1980.
Voting for this action: Vice Chairman Schultz and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker.
[SEAL]
(Signed)
[SEAL]
E. ALLISON,
Secretary of the Board.
THEODORE
Republic of Texas Corporation,
Dallas, Texas
Order Approving Merger of Bank Holding
Companies
Republic of Texas Corporation, Dallas, Texas, has applied for the Board's approval under section 3(a)(5)
of the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(5)) to merge with Fort Sam Houston BankShares, Incorporated, San Antonio, Texas ("FSHB"),
under the name and charter of Republic of Texas Corporation ("Applicant").
Applicant has also applied for the Board's approval
under section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)
and section 225.4(b)(2)) of the Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire all of the
outstanding shares of Fort Sam Life Insurance Company, San Antonio, Texas ("Fort Sam Life"), a subsidiary of FSHB, and to engage in the sale of insurance
Voting for this action: Chairman Volcker, Governors
Schultz, Wallich, Partee, Rice, and Gramley. Voting against
this action: Governor Teeters. Present and not voting on the
insurance activities: Governors Schultz and Wallich.
(Signed) BARBARA R. LOWREY,
Assistant Secretary of the Board.
Statement by the Board of Governors of the Federal
Reserve System Regarding the Application of
Republic of Texas Corporation to Merge With Fort
Sam Houston BankShares, Incorporated
By Order dated November 28, 1980, the Board approved the application of Republic of Texas Corporation Dallas, Texas, for the Board's approval under
section 3(a)(5) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(5)) to merge with Fort Sam Houston
BankShares, Incorporated, San Antonio, Texas
("FSHB"), under the name and charter of Applicant. 1
The Board also approved the application under Section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
1. Protests have been received from a number of minority shareholders of FSHB who allege, among other things, that the merger
would disadvantage them. Unequal offers to shareholders or disparity
of benefits to shareholders resulting from the merger are not issues
that the Board may consider in acting on an application under section
3 of the Bank Holding Company Act. Western Bancshares, Inc. v.
Board of Governors, 480 F.2d 749 (10th Cir. 1973).
Several shareholders also contend that the transaction is not necessary for FSHB to continue its services to the military and that consummation would adversely affect competition. These issues are discussed in the Board's Statement.
58
Federal Reserve Bulletin • January 1981
section 225.4(b)(2) of Regulation Y (12 C.F.R.
§ 225.4(b)(2)) to acquire all of the outstanding shares
of Fort Sam Life Insurance Company, San Antonio,
Texas ("Fort Sam Life"), a subsidiary of FSHB, and
to engage in the sale of insurance directly related to
extensions of credit by FSHB's banking subsidiaries.
By Order dated June 11, 1980, the Board denied the
application of Applicant to merge with FSHB. The
Board found that consummation of the transaction
would have substantially adverse effects on existing
competition in the relevant banking market that were
not outweighed by increased benefits to the convenience and needs of the community to be served. Although the Board noted the military orientation of
FSHB's lead bank and the presence within the market
of thrift institutions, the Board at that time did not find
that such facts sufficiently reduced the anticompetitive
effects of the merger so that approval of the application was warranted. Thereafter, Applicant requested reconsideration of the Board's action and, on
July 7, 1980, the Board's General Counsel, acting under delegated authority, granted Applicant's request
for reconsideration. In connection with the reconsideration of this application, Applicant has submitted significant new material concerning the extent to which
FSHB's lead bank serves a market other than a locally
limited geographic market. Applicant has also presented new information concerning competition afforded
by thrift institutions within the market.
Applicant, the fourth largest banking organization in
Texas, controls 23 banks with aggregate deposits of
approximately $5.0 billion, representing 7.2 percent of
total deposits in commercial banks in the state. 2
FSHB, the twentieth largest banking organization in
Texas, owns three subsidiary banks and controls total
deposits of approximately $190.8 million, representing
0.3 percent of total statewide commercial bank deposits. Upon consummation, the resulting banking organization would rank as the fourth largest in the state,
controlling about 7.5 percent of the total deposits in
commercial banks in Texas. Although the Board has
expressed concern about the concentration of banking
resources in Texas in its consideration of other applications, the Board concludes that consummation of
this transaction would not so significantly increase the
concentration of banking resources in Texas as to result in significantly adverse effects on competition in
the state.
Applicant, the sixth largest of 42 banking organizations located in the San Antonio banking market, 3 con2. Unless otherwise noted, all banking data are as of December 31,
1979, and reflect bank holding company formations and acquisitions
approved as of October 31, 1980.
3. The San Antonio market is approximated by the San Antonio
SMSA.
trols two subsidiary banks that hold combined deposits of $182.5 million, representing 4.5 percent of total
commercial bank deposits in the market. FSHB ranks
as the fifth largest banking organization in the market
and controls three subsidiary banks with aggregate deposits of $190.8 million, representing 4.7 percent of total market deposits. Consummation of the transaction
would increase Applicant's share of market deposits to
9.2 percent and would cause Applicant to become the
third largest banking organization in the market. Data
more recent than that available at the time the Board
acted to deny this application indicate that the rank of
both organizations within the market and their respective shares of market deposits have declined since
1978. Furthermore, for the reasons discussed below,
the share of deposits that would be held by the resulting organization does not accurately reflect the amount
of competition that would be eliminated by consummation of the proposal.
In its previous action denying this application, the
Board was concerned with what it perceived to be a
substantially adverse impact on competition within the
relevant market. With respect to the transaction's effect on the local market, Applicant has provided substantial factual information demonstrating that FSHB's
lead bank, The National Bank of Fort Sam Houston
("Fort Sam Bank"), which holds almost 92 percent of
total deposits held by FSHB's banking subsidiaries, is
a "military bank" and orients its business to customers located outside the San Antonio market. Over 75
percent of all demand deposit accounts and over 50
percent of total demand deposit volume at Fort Sam
Bank are derived from customers, primarily military
personnel, located outside the San Antonio SMSA.
Furthermore, almost 75 percent of loan accounts and
between 50 and 60 percent of Fort Sam Bank's total
loan volume are derived from out-of-area customers.
Applicant further asserts that the non-local character
of Fort Sam Bank's business is demonstrated by the
fact that Fort Sam Bank advertises for business in 29
cities throughout the United States where substantial
numbers of military personnel are based. Moreover,
Applicant states that over 70 percent, or 43,000, of
Fort Sam Bank's demand deposit accounts are derived
from direct deposit military payroll accounts which are
credited at the end of each month. Applicant asserts
that this factor causes FSHB's competitive strength in
the market to be overstated because deposits are at the
maximum volume on the last day of each month, and
this coincides with the call date for reporting deposit
data. Applicant states that the drawdown of these accounts is substantial over the course of the month. 4
4. As an example, Applicant cites data that show Fort Sam Bank's
total deposits as of June 30, 1980, at $183.0 million. Three days earlier,
Fort Sam Bank's total deposits were $141.1 million.
Legal Developments
The Board has reviewed the record as supplemented
by Applicant and has determined that, in light of the
unique composition of Fort Sam Bank's business that
results in an out-of-market orientation for the FSHB
organization as a whole, 5 the effects of the merger on
competition within the San Antonio banking market
would not be so serious as to warrant denial. Although
this transaction involves a large horizontal acquisition
in a market where Applicant is already well represented, the anticompetitive effects are mitigated substantially by the fact that over one half of FSHB's loan
and deposit business is conducted outside the market
and that FSHB's marketing philosophy is directed at
enhancing its position as a military bank serving military personnel throughout the world. Normally the
Board views an acquisition of this size with concern,
and in the absence of the unique facts presented by
this application would ordinarily not approve such an
acquisition; however, the adverse competitive effects
of this merger within the local market are limited by
the fact that FSHB is not as strong a local competitor
as its size would apparently indicate. Moreover, while
all banks in the San Antonio market can be expected to
compete for the business of military personnel in San
Antonio, it is the degree to which FSHB serves this
segment of the community that gives it its unique character and lessens its competitive position in the San
Antonio market. 6 Although FSHB is a viable independent organization and, absent evidence to the contrary, could be expected to expand throughout the
market, FSHB's history of service to the military community and recent actions in seeking to expand its military services indicate a concentration on serving military personnel worldwide. For example, FSHB was
recently granted a contract by the Department of Defense to operate banking facilities at 14 military bases
overseas. Based on these and other facts of record, it
is the Board's view that consummation of the transaction would not result in such adverse competitive effects in the relevant market that would warrant denial
of the application.
Applicant has also asserted that the thrift institutions in the San Antonio market should be considered
as competitors of commercial banks, based upon the
5. Although FSHB operates two banks other than Fort Sam Bank,
almost 92 percent of FSHB's total deposits are derived from Fort Sam
Bank.
6. In this regard, the Community Reinvestment Act, which requires
a financial institution to serve the convenience and needs of its entire
community, recognizes that a military bank's community need not be
defined geographically. It states that:
A financial institution whose business predominantly consists of
serving the needs of military personnel who are not located within
a defined geographic area may define its "entire community" to
include its entire deposit customer base without regard to geographic proximity. (12 U.S.C. § 2902).
59
size, number of lending powers of these organizations
within the San Antonio market. Applicant maintains
that area thrifts offer the same cluster of services that
are offered by commercial banks. Savings and loan associations offer many of the same services as area
commercial banks, such as interest-bearing draft/
checking accounts, tax-deferred retirement plans,
home-improvement loans, travelers checks, transfer
of savings to checking, and telephone transfer services. Applicant also asserts that area state-chartered
savings and loan associations, which have some commercial lending powers, have a sizeable percentage of
business loans. Applicant contends that the level of
commercial lending activity engaged in by these institutions is significant and places these thrift institutions
in direct competition with area commercial banks.
The Board is of the view that the evidence presented
to date concerning thrift institutions does not compel a
conclusion that these institutions compete actively
with commercial banks over a sufficient range of financial services to consider them full competitors of commercial banks. However, the facts of record support a
finding that thrift institutions in San Antonio compete
sufficiently with commercial banks in the provision of
financial services to customers that the competition afforded by thrift institutions serves to reduce the adverse competitive effects associated with the merger of
these commercial banking organizations. In light of all
the facts of record, it is the Board's judgment that consummation of the merger would have only slightly adverse effects on competition.
The financial and managerial resources and future
prospects of Applicant, FSHB, and their subsidiaries
are considered satisfactory. Accordingly, banking factors are consistent with approval of the application.
Although Applicant will continue Fort Sam Bank's
current services to military personnel and intends to
expand and improve significantly those services in the
future, Applicant also proposes to develop the local
customer and commercial business of FSHB's banks
with particular emphasis on development of Fort Sam
Bank's local business. While FSHB appears to have
the resources to develop those commercial services independent of affiliation with Applicant, it has not
clearly demonstrated a willingness or ability to do so.
Applicant also intends to initiate trust services and investment advisory services, especially to FSHB's military customers. Applicant has also committed that
one million dollars will be made available to lend to
local residents for rehabilitation of homes and small
businesses in the vicinity of Fort Sam Bank. In the
Board's view, the benefits to the public that may be
expected from consummation of the proposed transaction lend weight sufficient to outweigh any adverse effects on competition that may result. Accordingly, it is
60
Federal Reserve Bulletin • January 1981
the Board's judgment that the proposed transaction
would be in the public interest and that the application
should be approved.
With respect to the application to acquire Fort Sam
Life and to engage in credit-related insurance activities, the Board has determined that the balance of public interest factors prescribed by section 4(c)(8) of the
Act warrant approval. There is no evidence that Applicant's acquisition of Fort Sam Life would result in undue concentration of resources, decreased or unfair
competition, conflicts of interest, unsound banking
practices, or other adverse effects on the public interest. Based on the foregoing and other facts and considerations reflected in the record, the Board has determined in accordance with the provisions of section
4(c)(8) of the Act, that the acquisition of Fort Sam Life
and the sale of credit insurance directly related to extensions of credit by FSHB's bank subsidiaries can
reasonably be expected to produce benefits to the public that outweigh any possible adverse effects and that
the application should be approved.
On the basis of the record, the applications are approved for the reasons summarized above. The merger
shall not be made before the thirtieth calendar day following the effective date of the Board's Order, or later
than three months after the effective date of the Order
unless such period is extended for good cause by the
Board, or by the Federal Reserve Bank of Dallas pursuant to delegated authority. The approval of the application to acquire Fort Sam Life and to engage in the
sale of insurance as agent or broker 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.
Board of Governors of the Federal Reserve System,
December 22, 1980.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary of the Board.
Dissenting Statement of Governor Teeters
I would again deny the application of Republic of Texas Corporation to merge with Fort Sam Houston
BankShares, Incorporated, for the reasons stated in
the Board's previous Order relating to this application. [Republic of Texas Corporation (Fort Sam
Houston BankShares, Incorporated), 66 FEDERAL RE
580 (1980).] I continue to believe that
this transaction would have substantially adverse effects on competition within the San Antonio banking
market that are not outweighed by considerations relating to the convenience and needs of the community
to be served. In my opinion, the new material submitted in support of the application does not differ significantly from that originally presented to the Board. I
do not believe that there is adequate evidence in the
record to support the reversal of the Board's earlier
action. For these reasons, I would deny this application.
SERVE BULLETIN
December 22, 1980
U.S. Bancorp,
Portland, Oregon
Order Denying Acquisition of Bank
U.S. Bancorp, Portland, Oregon ("Applicant"), a
bank holding company within the meaning of the Bank
Holding Company Act ("Act"), has applied for the
Board's approval under section 3(a)(3) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)(3)) to acquire all the outstanding shares of The Forest Grove
National Bank, Forest Grove, Oregon ("Bank").
Notice of the application, affording opportunity for
interested persons to submit comments, has been given in accordance with section 3 of the Act. The time
for filing comments has expired and the Board has considered the application and all comments received, including those of the United States Department of Justice, as well as Orbanco Financial Services
Corporation ("Protestant"), Portland, Oregon, in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).1
Section 3(c) of the Act provides, in part, that the
Board may not approve any proposed acquisition, the
effect of which, in any section of the country, may be
substantially to lessen competition or to tend to create
a monopoly, or which in any other manner would be in
restraint of trade, unless the Board finds that the anticompetitive effects of the transaction are clearly outweighed in the public interest by the probable effect of
the transaction in meeting the convenience and needs
of the community to be served. The Board views with
concern the effects that consummation of the proposed
acquisition would have on existing competition and on
the concentration of banking resources within the local
1. The Board notes that Protestant originally requested that the
Board hold a hearing concerning this application, but has withdrawn
that request.
Legal Developments
banking market, as well as on the concentration of
banking resources in the state of Oregon.
Bank is the fifteenth largest of 29 banking organizations in the Portland banking market, 2 with 0.5 percent
of market deposits. 3 Bank conducts its banking business through a banking office located in Forest Grove,
Oregon, and a branch located in Cornelius, Oregon.
Applicant is the second largest banking organization in
the Portland banking market, with 65 banking offices in
the market and $1.5 billion or 27.1 percent of total market deposits. The acquisition of Bank by Applicant
would result in the elimination of existing competition
between the two organizations within the local banking market. The Board regards this elimination of
existing competition with particular concern in view of
the fact that three of Applicant's banking offices are
within 3.5 miles of Bank's branch in Cornelius. From
the record it appears that the Forest Grove portion of
the market is growing rapidly and is a particularly attractive area for expansion. Indeed, Applicant has
adequate resources to establish a de novo bank in Forest Grove immediately and in 1984 it will be permitted
to branch into Forest Grove. 4 Based on the record, the
Board finds that Bank must be regarded as a viable,
independent competitor of Applicant in the relevant
banking market, especially with regard to the Forest
Grove portion of that market. 5 The Board is also concerned about the effects of consummation of the proposal on the concentration of banking resources in the
Portland banking market, where the two largest banking organizations, including Applicant, control 56.9
percent of marketing deposits, and the four largest
control 71.9 percent of the market.
In addition to its effects on competition within the
local banking market the proposed acquisition will
have an impact on statewide structure and the concen-
2. The Portland banking market is approximated by the Portland
Ranally Metro Area (RMA), which includes portions of Washington,
Yamhill, Clackamas, Marion, Multnomah, and Columbia Counties,
Oregon, and Clark County, Washington. The Applicant, Protestant
and Department of Justice suggested that the Board regard the relevant banking market as SMSA, the local service areas of Bank and
Applicant's branches, and Washington County, respectively. The
Board generally regards the RMA as a more accurate representation
than the SMSA since it is based on more detailed analysis of commuting data. The Board has, however, also considered the effects of the
proposed acquisition on existing competition in the context of the
more immediate local area in which Bank operates.
3. All banking data are as of December 31, 1979. Unless otherwise
specified the term deposits refers to total commercial bank deposits.
4. Oregon law currently prohibits banks from expanding into cities
with populations of less than 50,000 and containing the home office of
a bank except by merger or the establishment of a de novo bank. Beginning in January of 1984, however, statewide de novo branching will
be permitted under Oregon law.
5. This view is supported by the findings of the U.S. Department of
Justice that within Washington County the proposed acquisition
would have significantly adverse effects on existing competition, as
well as on the concentration of banking resources.
61
tration of banking resources in Oregon. Applicant, one
of Oregon's two largest banking organizations, controls aggregate deposits of approximately $3.5 billion,
representing 33.5 percent of total commercial bank deposits in the state. Bank, the 25th largest banking organization in Oregon, holds deposits of $30.2 million,
representing 0.29 percent of statewide deposits. While
the acquisition of Bank by Applicant would increase
Applicant's statewide share of commercial bank deposits by 0.29 percent and would not alter Applicant's
rank as the state's second largest banking organization, the Board views the impact of this proposal on
the concentration of banking resources in Oregon with
great concern, particularly in view of the fact that the
state of Oregon exhibits one of the highest concentration of banking resources in the nation. It ranks fourth
in the United States in terms of the percentage of deposits controlled by the two largest banking organizations, with Applicant and the largest banking organization in Oregon controlling 68.4 percent of statewide
banking deposits, while the four largest banking organizations control 78.1 percent of total statewide banking
deposits. Although Applicant's proposal would not
significantly add to the concentration of banking resources within Oregon, it would represent a reversal of
the recent trend toward deconcentration at the statewide level, 6 and accordingly, is viewed as an adverse
factor by the Board.
Under section 3(c) of the Act, the Board is not required to tolerate the development of undue concentration among banking organizations before it is empowered to intervene. Indeed, the Clayton Act, which
was incorporated into section 3(c) of the Act, provides
authority for arresting mergers in order to break the
force of a trend toward undue concentration before it
gathers momentum. See Brown Shoe Co. v. United
States. 370 U.S. 294, 317-18. Accordingly, in view of
the elimination of existing competition in the market
and the high level of concentration both in the Portland
banking market and statewide, the Board has concluded that the overall effects of this proposal would
be to substantially lessen competition. 7
The financial and managerial resources of Applicant, its subsidiaries and Bank are regarded as general-
6. Statewide banking concentration has declined somewhat in Oregon in recent years. As of December 31, 1975, the two largest banking
organizations in Oregon controlled approximately 73 percent of total
state banking deposits and the four largest banking organizations controlled 82 percent of such deposits, compared to 68.4 percent and 78.1
percent respectively today.
7. The Board also has evaluated the impact of thrift institutions on
competition within the Portland market. Although thrifts hold some
deposits in Portland banking market, the relative size and nature of
their operations are not such that the Board regards their presence in
the market as sufficient to compensate for the adverse effects on competition that would result from this proposal.
62
Federal Reserve Bulletin • January 1981
ly satisfactory and future prospects are favorable. Accordingly, banking factors are consistent with
approval. Although Applicant proposes to introduce
some new services at Bank, the Board concludes that
the banking needs of the area are already being met.
While Applicant has stated that approval of the proposal would resolve a management succession problem at Bank, there is no evidence in the record to suggest that Bank will be unable to resolve this issue
without resorting to an anticompetitive acquisition.
Thus, the Board regards the convenience and needs
factors in this proposal to be very slight, and not sufficient to outweigh the anticompetitive effects of the
proposal.
Based on the foregoing and other considerations reflected in the record, it is the Board's judgment that
the proposed acquisition would not be in the public
interest and that the application should be denied. Accordingly, the application is hereby denied.
By order of the Board of Governors, effective
December 19, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, Rice, and Gramley.
[SEAL]
(Signed) THEODORE E . ALLISON,
Secretary of the Board.
Orders Under Section 4 of Bank Holding
Company Act
Bank Leumi Le-Israel B.M.,
Tel Aviv, Israel
Order Approving Request Pursuant to the Bank
Holding Company Act for Permission to Continue
Certain Securities Activities
Bank Leumi le-Israel B.M., Tel Aviv, Israel ("Bank
Leumi"), a bank holding company within the meaning
of the Bank Holding Company Act (the "Act"), has
requested the Board's approval under section 4(c)(9)
of the Act (12 U.S.C. § 1843(c)(9)), to continue to engage through its subsidiary, Leumi Securities Corporation, New York, New York ("Leumi Securities"), in
certain securities activities. 1
Bank Leumi, a bank organized under the laws of the
state of Israel, became a bank holding company as a
1. The Board has also considered this as a request by Bank Leumi's
affiliates, Otzar Hityashvuth Hayehudim B.M., Tel Aviv, Israel; JCT
Trust Company Limited, Tel Aviv, Israel; and the Trust Created by
Otzar Hityashvuth Hayehudim Jewish Colonial Trust Limited, London, England, and JCT Trust Company Limited, Tel Aviv, Israel. All
actions taken herein also apply to these affiliates.
result of the Bank Holding Company Act Amendments
of 1970. It has engaged, through Leumi Securities, in
acting as broker, dealer, or underwriter in securities
transactions in the United States since 1962.2 Leumi
Securities currently engages in the following activities:
(1) acting as broker or dealer with respect to bonds or
other obligations issued by the state of Israel; (2) acting as broker for the purchase or sale of securities
where Leumi Securities solicits trades of securities
only of companies having a significant connection with
Israel, and acts as broker for transactions in securities
of other companies only upon customer request; and
(3) acting as dealer or underwriter with respect to
securities of companies with a significant connection
with Israel. The Board has previously determined that
securities activities are not closely related to banking,
and therefore not generally permissible for bank holding companies.
Section 4(c)(9) of the Act provides that the nonbanking prohibitions of section 4 shall not apply to the
investments or activities of a foreign bank holding
company that conducts business outside the United
States, if the Board by regulation or order determines
that, under the circumstances and subject to the conditions set forth in the regulation or order, the exemption
would not be substantially at variance with the purposes of the Act and would be in the public interest.
In acting on earlier requests from foreign bank holding companies, the Board has consistently refused to
exempt securities activities under section 4(c)(9).3 As
a general matter, the Board believes that granting a
request from a foreign bank holding company to engage in securities activities would be contrary to the
public interest in light of the clear intent of Congress,
when it enacted the Glass-Steagall Act, to restrict affiliations of banks and securities companies in the
United States because of potential conflicts of interests and unsound banking practices. In determining
whether to grant an exemption under section 4(c)(9),
the Board has also considered whether such exemption would give the foreign institution a competitive
advantage over domestic or other foreign banking organizations. 4
2. The Board has determined, in a separate action, that Bank
Leumi is not entitled to permanent grandfather privileges because it
did not own or control a subsidiary bank on June 30, 1968, as required
by section 4(a)(2) of the Act (12 U.S.C. § 1843(a)(2)).
3. See Board Orders approving applications of The Industrial Bank
of Japan, Ltd., and The Fuji Bank Ltd., to become bank holding companies (39 Federal Register 39,503 and 39,504 (1974)).
4. See Board letter of September 17, 1979, to Banco di Roma,
S.p.A. (denying a request for reconsideration of a denial of an application under section 4(c)(9)); and Orders involving Bank of Tokyo (Tokyo Bancorp International (Houston), Inc.), 61 FEDERAL RESERVE
BULLETIN 449 (1975) (denying an application under section 4(c)(9));
Lloyd's
Bank Limited,
60 FEDERAL RESERVE BULLETIN 139 (1974)
(conditionally approving retention of export credit and marketing corporation).
Legal Developments
Bank Leumi operated a branch in New York, New
York, from 1961 until July 15, 1968, when Bank Leumi
opened a subsidiary bank in New York and transferred
all of the assets and liabilities of its New York branch
to its subsidiary. This transfer was effected pursuant to
a contract entered into in November 1967, and was
originally scheduled to occur on June 30, 1968. If Bank
Leumi had opened its subsidiary bank on or before
June 30, 1968, its U.S. securities activities would
be grandfathered under section 4(a)(2) of the Act
(12 U.S.C. § 1843(a)(2)); and if it had never converted
its U.S. branch into a subsidiary bank, its securities activities would be grandfathered under section 8(c) of the
International Banking Act (12 U.S.C. § 3106(c)). Bank
Leumi believes that under these circumstances it is entitled to an exemption under section 4(c)(9). In the
Board's view, it would be inconsistent with the purposes of the Act and the public interest to permit Bank
Leumi to retain all of the securities activities currently
engaged in by Leumi Securities. Such retention would
give Bank Leumi an unfair competitive advantage over
U.S. banking organizations and over foreign banking
organizations that are also prohibited from engaging in
securities activities in the United States under the
Bank Holding Company Act or the International
Banking Act. Furthermore, the Board does not view
the current small scale of Bank Leumi's securities activities as a justification for disregarding the possible
adverse effects of affiliation of banking and securities
institutions that concerned Congress when it enacted
the Glass-Steagall Act.
The Board believes that these concerns are mitigated, however, with respect to the activity of acting
as broker or dealer for transactions only in bonds and
other obligations issued by the state of Israel, which
constitutes a substantial portion of Bank Leumi's U.S.
securities operations. The Board does not view the
ability of Bank Leumi to engage in activities of this
limited nature and scope as giving Bank Leumi a substantial competitive advantage over domestic or foreign banking organizations competing in the United
States. Furthermore, the Board notes that the GlassSteagall Act permits national banks to deal in, underwrite, and purchase for their own account obligations
issued by the United States. 5 Therefore, it appears
that there would be no serious conflict with the concerns of Congress, as reflected in the Glass-Steagall
Act, if Bank Leumi acted as broker or dealer with respect only to securities issued by the state of Israel. In
view of these considerations and the particular circumstances of this case, it is the Board's judgment that
approval of the request for this limited activity would
5. 12 U.S.C. § 24.
63
not be substantially at variance with the purposes of
the Act and would be consistent with the public interest.
Based upon the foregoing and other considerations
reflected in the record, and based upon the assumption
that Bank Leumi will continue to qualify as a foreign
bank holding company under section 4(c)(9) and the
Board's regulations, the application is approved with
respect to the activity of acting as broker or dealer
with respect to bonds and other obligations of the
state of Israel, and denied for all other activities engaged in by Leumi Securities. This approval is subject
to considerations set forth in section 225.4(c) of the
Board's Regulation Y and to the Board's authority to
require reports by and make examinations of bank
holding companies and their subsidiaries, and to require such modification or termination of the activities
of a bank holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with
the provisions and purposes of the Act and the Board's
Orders and regulations issued thereunder, to prevent
evasion thereof, or if it otherwise appears that continuation of the activities approved herein is not in the
public interest.
By order of the Board of Governors, effective
December 8, 1980.
Voting for this action: Vice Chairman Schultz and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent
and not voting: Chairman Volcker.
[SEAL]
(Signed) THEODORE E . ALLISON,
Secretary of the Board.
First Union Corporation,
Charlotte, North Carolina
Determination Regarding "Grandfather
Under the Bank Holding Company Act
Privileges"
Section 4 of the Bank Holding Company Act
(12 U.S.C. § 1843) provides certain privileges ("grandfather privileges") with respect to nonbanking activities of a company that, by virtue of the 1970 Amendments to the Act, became subject to the Act. Pursuant
to section 4(a)(2) of the Act, a "company covered in
1970" may continue to engage, either directly or
through a subsidiary, in nonbanking activities that
such a company was lawfully engaged in on June 30,
1968 (or on a date subsequent to June 30, 1968, in the
case of activities carried on as a result of the acquisition by such company or subsidiary, pursuant to a
binding written contract entered into on or before
June 30, 1968, of another company engaged in such ac-
64
Federal Reserve Bulletin • January 1981
tivities at the time of the acquisition), and has been continuously engaged in since June 30, 1968 (or such subsequent date). Section 4(a)(2) of the Act provides,
inter alia, that the Board may terminate such grandfather privileges if, having due regard for the purpose
of the Act, it determines that such action is necessary
to prevent an undue concentration of resources, decreased or unfair competition, conflicts of interest, or
unsound banking practices.
Notice of the Board's proposed review of grandfather privileges of First Union Corporation ("First
Union"), Charlotte, North Carolina, and an opportunity for interested persons to submit comments or
views or request a hearing, has been given. The time
for filing comments, views, and requests has expired,
and all those received have been considered by the
Board in light of the factors set forth in section 4(a)(2)
of the Act. 1
First Union became a bank holding company on
December 31, 1970, as a result of the 1970 Amendments
to the Act, by virtue of First Union's ownership of all
of the voting shares of First Union National Bank of
North Carolina ("Bank"), Charlotte, North Carolina
(assets of $1.1 billion as of December 31, 1970).2 First
Union is the 3rd largest banking organization in the
state of North Carolina, controlling deposits of $2.0
billion, representing 11.9 percent of the total commercial bank deposits in the state. 3
First Union, through its subsidiary, CameronBrown Company ("CBC"), and CBC's subsidiaries,
engages in real estate development activities, including investing in, developing and disposing of by sale or
lease, real property. In previous determinations under
section 4(a)(2) of the Act, the Board generally has not
regarded the making of isolated real property investment and development as an activity eligible for permanent grandfather privileges, but, rather has viewed
each real estate investment as a separate activity. 4
Based on its review of the evidence of record in this
matter, however, it is the Board's judgement that First
Union has demonstrated that on June 30, 1968, it was
engaged in an organized pattern of planning, investment, development and disposition of real property,
1. During the pendency of this determination, the Independent Insurance Agents' Association (TIAA") registered objections to First
Union's claim that certain of its insurance agency activities are grandfathered. Upon submission by First Union of evidence to demonstrate
the efficacy of its claim, the IIAA withdrew its objections, as well as
its request for a hearing.
2. On December 31, 1970, First Union was known as First Union
National Bancorp, Inc. It was subsequently renamed Cameron Financial Corporation, and finally, First Union Corporation.
3. Banking data are as of December 31, 1979.
4 . Schroders
Limited,
The Republic
National
6 6 FEDERAL RESERVE B U L L E T I N 2 5 5 ( 1 9 8 0 ) ;
Bank,
(1973).
59 FEDERAL RESERVE BULLETIN 768
and that these activities characterize a company engaged generally in real estate activities. In particular,
CBC has been engaged directly and indirectly through
subsidiaries, including joint ventures, continuously
since prior to June 30, 1968, in the activities of investing in and holding real estate for its own account for
residential and commercial development; developing
for its own account, including construction, incomeproducing properties, such as apartment complexes,
office buildings and shopping centers, for sale or lease;
managing properties in which it has a significant ownership or leasehold interest; and appraising real estate.
Accordingly, these activities appear to be eligible for
retention on the basis of permanent grandfather privileges. Moreover, in view of the fact that these activities historically have accounted for a relatively small
share of First Union's income and total assets, and in
light of certain commitments made by First Union in
this regard, the Board will not require modification or
termination of these activities at this time.
In connection with CBC's real estate activities, First
Union also manages properties in which it does not
have an ownership or leasehold interest, acts as adviser with respect to real estate loans, engages in real estate brokerage, and holds interests in recreational facilities and a water company. From the record, it does
not appear that these represent activities that were engaged in on June 30, 1968, and continuously thereafter,
and accordingly are not eligible to be continued
beyond December 31, 1980, on the basis of permanent
grandfather privileges. Inasmuch as First Union's retention of these activities and interests apparently
arose out of its interpretation of the scope of its permanently grandfathered activities, and these activities
were integrally related to and undertaken directly in
connection with grandfathered real estate activities, it
is the Board's view that First Union may retain the
investments and interests it currently holds, but may
not make new investments or continue to hold itself
out as engaged in those activities without obtaining additional authority from the Board.
First Union engaged indirectly through subsidiaries
in several insurance activities. Through CBC it acts as
agent for the sale of all types of insurance. Another
First Union subsidiary, General Financial Agency,
Inc., acts as agent for the sale of property casualty,
credit life, and credit accident and health insurance in
connection with extensions of credit by affiliates of
First Union. Finally, General Financial Life Insurance
Company engages in the activity of underwriting as
reinsurer credit life and credit accident and health insurance related to extensions of credit by affiliates of
First Union. From the record it appears that First
Union was engaged in these insurance activities
through its subsidiaries on June 30, 1968, and has en-
Legal Developments
gaged in these activities continuously thereafter. Accordingly, the activities appear to be eligible for
retention on the basis of grandfather privileges.
First Union engages through CBC in mortgage banking activities; that is, purchasing, brokering and servicing first and second mortgage loans on residential
and commercial properties. It also engages through its
subsidiary, First Card Corporation, in servicing
Bank's credit card accounts. Inasmuch as First Union
was engaged in these activities on June 30, 1968, and
continuously thereafter, it appears that the activities
may be retained on the basis of grandfather privileges.
On the basis of the foregoing and all the facts before
the Board, including certain commitments by First
Union, it appears that the volume, scope and nature of
the activities of First Union described herein do not
demonstrate an undue concentration of resources, decreased or unfair competition, conflicts of interest or
unsound banking practices. Thus, there appears to be
no reason to require First Union to terminate its grandfathered interests. It is the Board's judgment that, at
this time, termination of the grandfather privileges of
First Union described herein is not necessary in order
to prevent an undue concentration of resources, decreased or unfair competition, conflicts of interest, or
unsound banking practices. This determination does
not authorize the entry into any new activity or product extension that was not engaged in on June 30,
1968, and continuously thereafter, or any activity that
is not the subject of this determination.
A significant alteration in the nature or extent of
First Union's activities or a change in location thereof
will be cause for a reevaluation by the Board of First
Union's activities under the provisions of section
4(a)(2) of the Act; that is, whenever the alteration or
change is such that the Board finds that a termination
of the grandfather privileges is necessary to prevent an
undue concentration of resources or any of the other
adverse consequences at which the Act is directed. No
merger, consolidation, acquisition of assets other than
in the ordinary course of business, or acquisition of
any interest in a going concern, to which First Union
or any nonbank subsidiary thereof is a party, may be
consummated without prior approval of the Board.
Further, the provision of any credit, property, or service by First Union or any subsidiary shall not be subject to any condition which, if imposed by a bank,
would constitute an unlawful tie-in arrangement under
section 106 of the Bank Holding Company Act
Amendments of 1970.
The determination herein does not preclude a later
review by the Board of First Union's nonbank activities and a future determination by the Board in favor of
termination of grandfather benefits of First Union. The
determination herein is subject to the Board's author
65
ity to require modification or termination of the activities of First Union or any of its nonbanking subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
December 23, 1980.
Voting for this action: Chairman Volcker and Governors
Wallich, Partee, Rice, and Gramley. Absent and not voting:
Governors Schultz and Teeters. Governor Wallich did not
vote on this action insofar as it concerns First Union's insurance activities.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Platte Valley Bancorp, Inc.,
Brighton, Colorado
Order Denying Acquisition of Valley Bancorp, Inc.
Platte Valley Bancorp, Inc., Brighton, Colorado, a
bank holding company within the meaning of the Bank
Holding Company Act (the "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) of the
Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire all of the voting shares of Valley Bancorp, Inc.
("VBI"), and its subsidiary, Yampa Valley Industrial
Bank ("Industrial Bank"), both of Steamboat Springs,
Colorado. Applicant has applied to engage, through
Industrial Bank, in the activities of industrial banking
and acting as an insurance agent with respect to insurance directly related to extensions of credit or the provision of other financial services by Industrial Bank.
Such activities have been determined by the Board to
be closely related to banking (12 C.F.R. §§ 225.4(a)(2)
and (9)(ii)(a)).
Notice of the application, affording opportunity for
interested persons to submit comments, has been given in accordance with section 4, of the Act (45 Federal Register 70,982 (1980)). The time for filing comments and views has expired, and the Board has
considered the application and all comments received
in light of the considerations specified in section
4(c)(8) of the Act.
In order to approve an application under section
4(c)(8) of the Act, the Board must determine that the
proposed activity is "so closely related to banking or
to managing or controlling banks as to be a proper incident thereto." Even where, as here, the proposed
activities have been previously determined by regulation to be closely related to banking, the Board is also
66
Federal Reserve Bulletin • January 1981
required to determine whether the performance of the
proposed activities by a nonbank subsidiary of a bank
holding company "can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." This statutory test requires a positive
showing by an applicant that the public benefits of its
proposal outweigh the possible adverse effects.
Applicant is a multibank holding company controlling two commercial banks, Platte Valley Bank,
Brighton, Colorado ("Brighton Bank"), and Platte
Valley Bank of Weld County, Frederick, Colorado
("Frederick Bank"), respectively, the 165th and
272nd largest banks in Colorado, with deposits of
$15.1 million and $5.5 million, representing a combined total of 0.52 percent of total commerical bank
deposits in the state. 1 Applicant also controls an industrial bank, Platte Valley Industrial Bank, Brighton,
Colorado ("Platte Valley"), with $2.8 million in deposits, which engages in industrial loan activities.
This proposal involves a restructuring of the ownership of VBI from control by individuals to control by
a corporation controlled by the same individuals. Upon consummation of the proposal, Applicant would
assume $147,000 of VBI's longterm debt VBI subsequently would be merged into Applicant and
Industrial Bank ($0.4 million in deposits) would become Applicant's direct subsidiary. The Board has frequently indicated that it believes that bank holding
companies should constitute a source of financial and
managerial strength to their subsidiary banks. From
the record relating to this application, it appears that
Applicant's assumption of the acquisition debt associated with this proposal, coupled with Applicant's current leveraged position, could adversely affect Applicant's ability to serve as a source of financial strength
to its banking subsidiaries. Moreover it appears that at
this time all of Applicant's managerial resources are
required to deal with the needs of its existing subsidiaries.
Applicant's industrial banking and banking subsidiaries are all located at least 110 miles from Industrial Bank in separate banking markets. In view of the
distances between Applicant's subsidiaries and Industrial Bank and other facts of record, it appears that no
significant existing or potential competition would be
eliminated between Applicant's subsidiaries and Industrial Bank by consummation of this proposal. Accordingly, the Board concludes that consummation of
the proposal would not have any significant adverse
1. All banking data are as of December 31, 1979.
effects upon competition, and would not increase the
concentration of banking or nonbanking resources in
any relevant area. Therefore, competitive considerations are consistent with approval of the application.
Applicant believes that consummation of the pro- .
posal would produce public benefits that outweigh any
adverse effects associated with the application. Applicant states that the proposed acquisition would assure
continuity and consistency in management to the community served by Industrial Bank and would better enable the resulting organization as a whole to provide
each subsidiary with additional skill and efficiency resulting in "adequate" earnings to "attract further debt
capital and/or service should the need arise." However, in view of the financial and managerial considerations discussed above and other facts of record, the
Board does not view any public benefits resulting from
the consummation of this proposal as sufficient to outweigh the adverse effects that would result from consummation of the proposal.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors that the Board
is required to consider under section 4(c)(8) is not favorable. Accordingly, the application is denied for the
reasons summarized above.
By order of the Board of Governors, effective
December 22, 1980.
Voting for this action: Chairman Volcker and Governors
Partee, Rice, and Gramley. Present and not voting: Governor
Wallich. Absent and not voting: Governors Schultz and
Teeters.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Republic Bancorporation, Inc.,
Tulsa, Oklahoma
Order Denying Acquisition of Guaranty Trust
Company
Republic Bancorporation, Inc., Tulsa, Oklahoma, a
bank holding company within the meaning of the Bank
Holding Company Act (the "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 voting shares of Guaranty Trust Company, Ponca City, Oklahoma ("Guaranty Trust"), a
failed trust company organized under the laws of the
state of Oklahoma, and to engage through Guaranty
Trust in industrial loan activities. Such activities have
Legal Developments
been determined by the Board to be closely related to
banking (12 C.F.R. § 225.4(a)(2)). Applicant has also
requested the Board's approval to establish a branch
of Guaranty Trust in Oklahoma City, Oklahoma, and
to consolidate the Oklahoma City branch of its subsidiary, Republic Trust and Savings Company ("Republic
Trust"), into the Oklahoma City branch of Guaranty
Trust.
Notice of the application, affording opportunity for
interested persons to submit comments, has been published (45 Federal Register 62547 (1980)). The time for
filing comments has expired, and the Board has considered the application and all comments received in
light of the factors set forth in section 4(c)(8) of the
Act.
In order to approve an application under section
4(c)(8) of the Act, the Board must determine that the
proposed activity is "so closely related to banking or
to managing or controlling banks as to be a proper incident thereto." Even where, as here, the proposed
activities have been previously determined by regulation to be closely related to banking, the Board is also
required to determine whether the performance of the
proposed activities by a nonbank subsidiary of a bank
holding company "can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." This statutory test requires a positive
showing by an applicant that the public benefits of its
proposal outweigh the possible adverse effects.
Applicant is a one-bank holding company that controls Republic Bank and Trust Company, Tulsa, Oklahoma, the 26th largest bank in Oklahoma, with deposits of $88.1 million, representing 2.2 percent of total
commercial bank deposits in the state. 1 Applicant also
controls Republic Trust (deposits of $10.3 million), a
trust company organized under Oklahoma law, and
Republic Financial Corporation (deposits of $27.0 million), both of which engage in industrial loan activities.
Guaranty Trust is an inactive company that operated as a trust company under Oklahoma law until
December 29, 1978, when it filed for relief under the
federal Bankruptcy Act and ceased to conduct business
other than that necessary for winding up its affairs.
The state subsequently revoked Guaranty Trust's authority to do business. Guaranty Trust's business consisted primarily of investing the proceeds of passbook
savings deposits and certificates of deposit in securities, as well as trust activities. 2
1. All banking data are as of December 31, 1979.
2. Applicant would not engage in any trust activities through Guaranty Trust.
67
Applicant plans to reorganize Guaranty Trust by assuming a portion of the claims pending against Guaranty Trust ($6.7 million in deposits and $0.6 million in
other unsecured claims) and by acquiring the company's securities portfolio. Applicant proposes to reimburse Guaranty Trust's claimants for 80 percent of
their claims: 16 percent in cash, 32 percent in subordinated debt of Applicant, and 32 percent in preferred
shares of Applicant. 3 The remaining 20 percent would
remain unpaid. The subordinated debt and preferred
shares to be issued by Applicant in connection with
this proposal would mature in seven years.
Since Guaranty Trust is currently an inactive company, consummation of the proposal would have no
effect on existing competition. Furthermore, Applicant's subsidiary industrial loan companies do not engage in the trust activities previously engaged in by
Guaranty Trust. Accordingly, consummaton of the
proposal would not have any significant adverse effects on competition or concentration of resources in
any relevant market.
The Board has frequently indicated that it believes
that bank holding companies should constitute a
source of financial and managerial strength to their
subsidiary banks. From the record relating to this application, it appears that Applicant's assumption of 80
percent of Guaranty Trust's unsecured liabilities could
adversely affect its ability to serve as a source of financial strength to its subsidiary bank. The Board is concerned that Applicant's managerial and financial resources could be strained by the acquisition and
resumption of activities of Guaranty Trust in view of
the insolvent condition of Guaranty Trust. Furthermore, in view of Applicant's leveraged position, the
debt that would be incurred in acquiring Guaranty
Trust could result in an adverse diversion of Applicant's financial and managerial resources.
Applicant believes that consummation of the proposal would produce public benefits that outweigh
any adverse effects associated with the application.
Although the Board recognizes that the partial satisfaction of the claims of the approximately 850 depositors and other unsecured creditors of Guaranty Trust
resulting from this proposal constitutes a public benefit, the record indicates that there are other remedies
available to the claimants. 4 Regardless of whether Ap3. The Board has treated the preferred shares as debt for the purpose of analyzing the financial effects of the proposal because the
shares are nonvoting, are due in seven years, and are subject to redemption by Applicant.
4. The record indicates that if Guaranty Trust is liquidated, its
claimants may recover between 30 and 50 percent of their claims.
Even under Applicant's proposal, the claimants have the option of
requiring Applicant to repurchase its debt instruments not earlier than
210 days, nor later than 360 days, after the date of consummation of
the proposal. Claimants that elect to exercise this right will recover
only 44.8 percent of their claims.
68
Federal Reserve Bulletin • January 1981
plicant's proposal is preferable to other available remedies, the Board does not view the public benefits associated with Applicant's proposal as sufficient to
outweigh the serious adverse financial effects that
would result from consummation of the proposal.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors that the Board
is required to consider under section 4(c)(8) is not favorable. Accordingly, the application should be, and
hereby is, denied for the reasons summarized above.
By order of the Board of Governors, effective
December 17, 1980.
Voting for this action: Vice Chairman Schultz and Governors Teeters, Rice, and Gramley. Absent and not voting:
Chairman Volcker and Governors Partee and Wallich.
[SEAL]
(Signed) JEFFERSON A . WALKER,
Assistant Secretary of the Board.
Seafirst Corporation,
Seattle, Washington
Order Approving Acquisition of Arden Mortgage
Service Corporation
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 voting shares of Arden Mortgage Service Corporation,
Walnut Creek, California ("Company"). Company engages in mortgage lending and servicing and construction financing activities. These activities have been determined by the Board to be closely related to banking
and therefore permissible for bank holding companies
(12 C.F.R. § 225.4(a)(1) and (3)).
Notice of the application, affording an opportunity
for interested persons to submit comments and views
on the public interest factors has been duly published
(45 Federal Register 76249 (1980)). The time for filing
comments 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.
Applicant is a one-bank holding company by virtue
of its control of Seattle First National Bank, Seattle,
Washington (deposits of $6.6 billion), the largest bank
in the state, controlling 37.6 percent of the state's deposits in commercial banks. Applicant also engages in
mortgage banking and construction finance activities
in Washington and Arizona. Company operates solely
in the state of California and does not compete in any
market in which Applicant and its subsidiaries engage
in mortgage banking and construction financing activities. Accordingly, consummation of the proposed
transaction would not result in the elimination of any
existing competition. Although Applicant could enter
the markets in which Company operates de novo,
based on Company's relative size and market share,
this acquisition represents a foothold entry by Applicant into these markets. Accordingly, it does not appear that acquisition of Company by Applicant would
have any significant effects on competition.
Section 4(c)(8) of the Act requires that a determination be made that the performance of a nonbanking activity by a bank holding company can reasonably be
expected to result in benefits to the public that outweigh possible adverse effects. Upon consummation
of the proposed transaction, Applicant will expand the
services currently offered by Company to include the
extension of single-family home construction loans,
acquisition and development loans, apartment house
loans, multi-family project loans and commercial and
industrial financing. Accordingly, it is concluded that
approval of the proposed transaction would result in
net public benefits and would be in the public interest.
Furthermore, there is no evidence in the record to indicate that Applicant's acquisition of Company would
result in any undue concentration of resources, unfair
competition, conflicts of interests, unsound banking
practices, or other adverse effects.
Based on the foregoing and other considerations reflected in the record, it has been determined that the
balance of the public interest factors the Board is required to consider under section 4(c)(8) of the Act is
favorable. Accordingly, the application is hereby approved. This determination is subject to the conditions
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 the provisions and
purposes of the Act and the Board's regulations issued
thereunder, or to prevent evasion thereof.
The transaction shall not be made later than three
months after the effective date of this Order, unless
such period is extended by the Board or by the Federal
Reserve Bank of San Francisco pursuant to delegated
authority.
By order of the Secretary of the Board, acting pursuant to delegated authority from the Board of Governors, effective December 30, 1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Legal Developments
Certifications Pursuant to the Bank Holding
Company Tax Act of 1976
AARESTAD FARM PRODUCTS, INC.,
Halstad, Minnesota
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Aarestad Farm Products, Inc., Halstad, Minnesota
("Aarestad"), has requested a prior tax 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 all of the 9462/3 shares of Red
River State Bank, Halstad, Minnesota ("Bank"),
presently held by Aarestad through the distribution of
such shares to Aarestad's 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: 1
1. Aarestad is a corporation organized under the
laws of the state of Minnesota on February 1, 1955.
2. On January 20, 1969, Aarestad acquired ownership and control of 550 shares, representing 91.67
percent of the outstanding voting shares of Bank.
On July 7, 1970, Aarestad also owned and controlled
550 shares, representing 91.67 percent of the outstanding voting shares of Bank. On January 20,
1972, Aarestad purchased 10 shares from a retiring
director of Bank pursuant to a contract granting
Aarestad the right of first refusal with respect to the
purchase of these shares. On March 6, 1973, Aarestad received 1862/3 shares of Bank stock as a stock
dividend. Also on March 6, 1973, Aarestad purchased 200 additional shares of Bank stock in order
to increase Bank's capital. Thus, Aarestad presently
owns and controls 9462/3 shares, representing 94.67
percent of the outstanding voting shares of Bank.
The remaining 53V3 shares, representing 5.33 percent of Bank's shares, are held by Bank's directors
as qualifying shares. 2
1. This information derives from Aarestad's communications with
the Board concerning its request for this certification, Aarestad's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. Under section 1101(c) 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 corporation. However, where such property was acquired by a qualified
bank holding corporation in a transaction in which gain was not recognized under section 305(a) of the Code, then section 1101(b) is applicable. Aarestad has indicated that the 1862/3 shares of Bank acquired
69
3. Aarestad 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 on that date of more than 25 percent of the
outstanding voting shares of Bank. It registered as
such with the Board on September 15, 1971. Aarestad
would have been a bank holding company on July 7,
1970, had the BHC Act Amendments of 1970 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.
4. Aarestad holds property acquired by it on or before July 7, 1970, the disposition of which is necessary or appropriate to effectuate section 4 of the
BHC Act if Aarestad were to continue to be a bank
holding company beyond December 31, 1980, and
which 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) Aarestad 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 9462/3 shares of Bank that Aarestad proposes to distribute to its shareholders are all or part
of the property by reason of which Aarestad controls (within the meaning of section 2(a) of the BHC
Act) a bank or a bank holding company ;3 and
(C) The distribution of the 9462/3 shares of Bank is
necessary or appropriate to effectuate the policies of
the BHC Act.
This certification is based upon the representations
made to the Board by Aarestad and upon the facts set
forth above. In the event the Board should hereafter
determine that facts material to this certification are
other than as represented by Aarestad, or that Aarestad has failed to disclose other material facts to the
Board, it may revoke this certification.
By order of the Board of Governors, acting through
on March 6, 1973, were acquired as a result of a transaction in which
gain was not recognized under section 305(a) of the Code. Accordingly, even though such shares were acquired after July 7, 1970, these
shares would nevertheless qualify as property eligible for the tax benefits provided in section 1101(b) of the Code by virtue of section
1101(c), if the shares of Bank were in fact received in a transaction in
which gain was not recognized under section 305(a) of the Code. The
10 shares acquired on January 20, 1972, and the 200 shares acquired
on March 6, 1973, however, represent property acquired after July 7,
1970, for which none of the exceptions provided in section 1101(c) of
the Code appears to be available.
3. As noted above 210 of the shares of Bank to be distributed by
Aarestad were acquired by it after July 7, 1970, and do not appear to
be eligible for the tax benefits of section 1101(b) of the Code.
70
Federal Reserve Bulletin • January 1981
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3)) effective December 16,1980.
[SEAL]
(Signed) JEFFERSON A. WALKER,
Assistant Secretary of the Board.
The Archer Company,
Palmer, Nebraska
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
The Archer Company, Palmer, Nebraska ("Archer")
has requested a prior tax 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
932 shares of the State Bank of Palmer, Palmer, Nebraska ("Bank"), presently held by Archer through
distribution of such shares to Archer's 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: 1
1. Archer is a corporation organized under the laws
of the state of Nebraska on December 15, 1969.
2. In December, 1969, Archer acquired ownership
and control of 233 shares, representing 46.6 percent
of the outstanding voting shares, of Bank. 2
3. Archer 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 on that date of more than 25 percent of the
outstanding voting shares of Bank. It registered as a
bank holding company on August 16, 1971.
1. This information derives from Archer's communications with the
Board concerning its request for this certification, Archer's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. On May 17, 1975, Archer acquired 233 additional shares of Bank
as a result of a stock dividend. On February 25, 1980, Archer acquired
an additional 466 shares as a result of another stock dividend. Under
section 1101(c) 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 corporation. However, where such property was acquired by a qualified bank holding
corporation in a transaction in which gain was not recognized under
section 305(a) of the Code, then section 1101(b) is applicable. Archer
has indicated that the shares of Bank acquired in 1975 and 1980 were
acquired as a result of a transaction in which gain was not recognized
under section 305(a) of the Code. Accordingly, even though such
shares were acquired after July 7, 1970, these shares would nevertheless qualify as property eligible for the tax benefits provided in section 1101(b) of the Code by virtue of section 1101(c), if the shares of
Bank were in fact received in a transaction in which gain was not
recognized under section 305(a) of the Code.
4. Archer would have been a bank holding company
on July 7, 1970, had the BHC Act Amendments of
1970 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.
5. Archer holds property acquired by it on or before
July 7, 1970, the disposition of which is necessary or
appropriate to effectuate section 4 of the BHC Act if
Archer were to continue to be a bank holding company beyond December 31, 1980, and which 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) Archer 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 932 shares of Bank that Archer proposes to
distribute to its shareholders are all or part of the
property by reason of which Archer 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.
This certification is based upon representations
made to the Board by Archer and the facts set forth
above. In the event the Board should determine the
facts material to this certification are other than as represented by Archer, or that Archer 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 31, 1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Baldwin-United Corporation,
Cincinnati, Ohio
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Baldwin-United Corporation and its wholly-owned
subsidiary D. H. Baldwin Company ("DHB") (hereinafter jointly referred to as Baldwin) both of Cincinnati, Ohio, have 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 (the "Tax Act"),
Legal Developments
that Baldwin's proposed transfer of 803,362 shares
("Bank Shares") of the stock of Central Bank of Denver
("Bank"), Denver, Colorado, to Central Colorado Company, Denver, Colorado, a Colorado limited partnership
and proposed bank holding company, is necessary or
appropriate to effectuate the policies of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.)
("BHC Act"). The shares of Bank are presently held
by Central Bancorporation, Inc., Denver, Colorado, a
wholly-owned subsidiary of Baldwin. Baldwin proposes to transfer all of the common stock of Central
Bancorporation, Inc., to Central Colorado Company,
in exchange for a Class II limited partnership interest
in Central Colorado Company pursuant to a plan of
divestiture approved by the Board. 1
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification. 2
1. DHB is a corporation organized on February 19,
1898, under the laws of the state of Ohio. On July 1,
1968, DHB acquired ownership and control of
462,069 shares of Bank (then known as Central Bank
& Trust Company). Between July 1, 1968, and July
7, 1970, DHB acquired 43,752 additional shares of
Bank, increasing its ownership to 505,821 shares
representing 99.2 percent of Bank's outstanding
shares. Baldwin currently owns and controls
806,055 shares, representing 99.5 percent of the voting shares of Bank. 3
2. DHB 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 of 25 percent or more of the outstanding
voting shares of Bank, and it registered as such with
the Board on June 1, 1971. DHB would have been a
bank holding company on July 7, 1970, if the BHC
1. 6 6 F E D E R A L RESERVE B U L L E T I N 6 5 5 ( 1 9 8 0 ) .
2. This information derives from Baldwin's correspondence with
the Board concerning its request for this certification, Baldwin's Registration Statement filed with the Board pursuant to the BHC Act and
other records of the Board.
3. Under subsection (c) of the section 1101 of the Code, property
acquired after July 7, 1970, generally does not qualify for the tax benefits of section 6158(a) 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 section 6158(a) is
applicable. Baldwin has stated that with respect to the 505,821 shares
of Bank held as of July 7, 1970, it received an additional 297,541 shares
as a stock dividend, a transaction in which gain was not recognized
under section 305(a) of the Code. If these shares were in fact acquired
in a transaction in which gain was not recognized under section 305(a)
of the Code, these shares would, accordingly, be eligible for the benefits provided in section 6158(a), by virtue of section 1101(c)(1)(A) of
the Code. Baldwin also acquired an additional 2,693 shares of Bank
after July 7, 1970. Since these shares were acquired by Baldwin subsequent to July 7, 1970, section 1101(c) makes these shares ineligible
for the tax benefits of section 6158(a).
71
Act Amendments of 1970 had been in effect on such
date, by virtue of its ownership and control on that
date of 25 percent or more of the voting shares of
Bank.
3. DHB 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 DHB 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.
4. In 1977, DHB filed with the Board an irrevocable
declaration pursuant to section 4(c)(12) of the BHC
Act and 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 and DHB's other banking subsidiaries. In accordance with this portion of the regulation and DHB's commitment, DHB has been permitted to expand its nonbanking activities without
seeking the Board's prior approval.
5. In 1977, DHB was reorganized. DHB became a
subsidiary of New Parent Company (a Delaware
Corporation formed by DHB), Cincinnati, Ohio, and
the common and convertible preferred stockholders
of DHB became stockholders of New Parent Company. In January 1978, New Parent Company
merged with The United Corporation, New York,
New York, and adopted the name Baldwin-United
Corporation.
6. Baldwin has represented that under relevant law,
Baldwin-United Corporation should be regarded as
a successor to DHB. In 1980 Baldwin contributed to
Central Bancorporation, Inc., a wholly-owned subsidiary of Baldwin acquired in 1974, all of its shares
of Bank as well as the shares of all other banking and
certain inactive subsidiaries of Baldwin.
7. Following Baldwin's transfer of the stock of Central Bancorporation, Inc., to Central Colorado Company, no person who is a director, officer or in a
policy-making position (including an advisory or
honorary position) with Baldwin 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 Central Colorado
Company, its general partner, CCB, Inc., Central
Bancorporation, Inc., or with any of its subsidiary
banks.
On the basis of the foregoing information, it is hereby certified that:
(A) Baldwin is a qualified bank holding corporation,
72
Federal Reserve Bulletin • January 1981
within the meaning of section 1103(b) of the Code,
and satisfies the requirements of that subsection;
(B) Bank Shares covered by the instant request are
all or part of the property by reason of which Baldwin controls (within the meaning of section 2(a) of
the BHC Act) a bank or bank holding company; and
(C) the disposition of Bank 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 Baldwin 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
Baldwin, or that Baldwin 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 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 29,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Catlan Corporation,
Amarillo, Texas
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Catlan Corporation, ("Catlan"), Amarillo, Texas, 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 ("Tax Act"), that its proposed divestiture of 48,248 shares, representing 81 percent of
the outstanding voting shares, of The First State Bank
of Stratford, ("Bank"), Stratford, Texas, currently
held by Catlan, through a pro rata distribution of such
shares to Catlan's stockholders, 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. This information derives from Catlan's correspondence with the
Board concerning its request for this certification, Catlan's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
1. Catlan is a corporation organized under the laws
of Texas on September 7, 1961, all of the shares of
which are held by J. A. Whittenburg, III and members of his family.
2. On November 17, 1961, Catlan acquired ownership and control of 1,310 shares, representing 65.5
percent of the outstanding voting shares, of Bank.
On July 7, 1970, Catlan owned and controlled
25,374 shares, representing 84.58 percent of the outstanding voting shares of Bank.
3. Catlan 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 October 6, 1971.
Catlan 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. Catlan currently owns and controls 48,634 shares, of
Bank's total 60,000 shares, representing approximately 81 percent of such shares. 2
4. Catlan holds property acquired by it on or before
July 7, 1970, the disposition of which, but for clause
(ii) of section 4(c) of the BHC Act, and the proviso
of section 4(a)(2) of that Act, would be necessary or
appropriate to effectuate section 4 of the BHC Act if
Catlan were to continue to be a bank holding company beyond December 31, 1980, and which property,
but for such clause and such proviso, would be
"prohibited property" within the meaning of section
1103(c) of the Code. Sections 1103(g) and 1103(h) of
the Code provide that any bank holding company
may elect, for purposes of Part VIII of subchapter O
of Chapter 1 of the Code, to have the determination
whether property is "prohibited property" or is
property eligible to be distributed without recognition of gain under section 1101(b)(1) of the Code,
2. Under subsection (c) of section 1101 of the Code, property acquired after July 7, 1980, generally does not qualify for tax benefits of
section 1101(b) when distributed by an otherwise qualified bank holding corporation. However, when such property was acquired by a
qualified bank holding corporation in a transaction in which gain was
not recognized under section 305(a) of the Code, then section 1101(b)
is applicable. Catlan has stated that, with respect to the 25,374 shares
of Bank it held as of July 7, 1970, on February 18, 1976, it received
24,317 shares of Bank in a transaction in which gain was not recognized under section 305(a) of the Code. If these shares were in fact
acquired in a transaction in which gain was not recognized under
section 305(a) of the Code, these shares would, accordingly, be eligible for the benefits provided in section 1101(b) by virtue of section
1101(c)(1)(A) of the Code. Catlan also acquired 193 shares of Bank
after July 7, 1970, and sold 1,250 shares. These shares and 193 of the
shares acquired in the 1976 transaction do not appear to be eligible for
benefits under the Tax Act.
Legal Developments
made under the BHC Act as if that Act did not contain clause (ii) of section 4(c) or the proviso of section 4(a)(2). Catlan has represented that it will make
such an election. 3
On the basis of the foregoing, it is hereby certified
that:
(A) Catlan 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 48,248 shares of Bank that Catlan proposes
to distribute are all or part of the property by reason
of which Catlan controls (within the meaning of section 2(a) of the BHC Act) a bank; and
(C) distribution of the shares of Bank to shareholders of Catlan is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
made to the Board by Catlan 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 Catlan or that Catlan
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 10,1980.
[SEAL]
(Signed) THEODORE E . ALLISON,
Secretary of the Board.
Central States Investment Company,
Bartlesville, Oklahoma
Adams Affiliates, Inc.,
Bartlesville, Oklahoma
Prior Tax Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Central States Investment Company, Bartlesville,
Oklahoma ("CSI"), and Adams Affiliates, Inc., Bartlesville, Oklahoma ("Affiliates"), have requested prior certifications 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 ("Tax Act"), that CSI's proposed divestiture of
3. Sections 1103(g) and 1103(h) of the Code require only that an
election thereunder be made "at such time and in such manner as the
Secretary [of the Treasury] or his delegate may by regulations prescribe." As of this date no such regulations have been adopted.
73
200,000 shares of First Bancshares, Incorporated, Bartlesville, Oklahoma ("Bancshares"), presently held by
CSI through the distribution of such shares to Affiliates, and Affiliates' ensuing divestiture of the same
shares through the pro rata distribution of such shares
to Affiliates' shareholders are necessary or appropriate
to effecuate 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. CSI is a corporation organized under the laws of
Delaware on March 15, 1956. Affiliates is a corporation organized under the laws of Oklahoma on August 28, 1976.
2. On December 23, 1965, CSI acquired ownership
and control of 19,783 shares of the First National
Bank of Bartlesville ("Bank"), representing 19.8
percent of Bank's 100,000 then outstanding shares.
On July 7, 1970, CSI owned 20,000 shares of Bank,
representing exactly 20 percent of Bank's then outstanding shares.
3. On January 1, 1974, CSI exchanged its 20,000
shares of Bank for 200,000 shares of Bancshares, a
registered bank holding company organized under
the laws of Delaware that now owns 100 percent of
the shares of Bank. CSI currently owns 200,000
shares of Bancshares, which represent 19.0 percent
of Bancshares' 1,052,501 currently outstanding
shares. 2
4. On July 7, 1970, CSI was wholly owned by six
members of the Adams family (mother and five children). On that date, four members of this family and
certain family trusts owned a total of 16,408 shares
of Bank, which represented 16.4 percent of the then
outstanding shares of Bank, and two such family
members were directors of CSI.
5. On April 28, 1977, the ownership and control of
1. This information derives from CSI's communications with the
Board concerning its request for this certification, Bancshares' 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 corporation. However, when such property was acquired by a
qualified bank holding corporation in a transaction in which gain was
not recognized under certain parts of section 354 of the Code pursuant
to a reorganization described in section 368(a)(1)(A) of the Code, then
section 1101(b) is applicable. CSI has stated that, with respect to the
20,000 shares of Bank it held as of July 7, 1970, on January 1, 1974, it
received 200,000 shares of Bancshares in a transaction in which gain
was not recognized under section 354(a)(1) of the Code pursuant to a
reorganization described in section 368(a)(1)(A) of the Code. If these
shares were in fact acquired in a transaction in which gain was not
recognized under section 354(a)(1) of the Code, these shares would be
eligible for the benefits provided in section 1101(b) by virtue of section
1101(c)(1)(A) of the Code.
74
Federal Reserve Bulletin • January 1981
all the outstanding shares of CSI was acquired by
Adams Affiliates, which has been wholly owned by
members of the Adams family since its incorporation. 3 Adams family members and family trusts currently own a total of 15.9 percent of the currently
outstanding shares of Bancshares. Three Adams
family members are currently officers of Affiliates,
two of these individuals are currently officers of
CSI, and one of these two is also a director of both
Bancshares and Bank.
6. In accordance with section 1103(b)(2) of the Tax
Act and pursuant to section 2(a)(2)(c) of the BHC
Act, CSI is deemed, solely for the purpose of issuing
the requested certification, to have controlled Bank/
Bancshares continuously since July 7, 1970, by virtue of exercising a controlling influence over Bank/
Bancshares continuously since July 7, 1970.
7. CSI holds property acquired by it on or before
July 7, 1970, the disposition of which would be necessary or appropriate to effectuate the BHC Act, if
CSI were to continue to be a bank holding company
beyond December 31, 1980, and which property is
"prohibited property" within the meaning of section
1103(c) of the Code.
8. CSI and Affiliates have committed to the Board
that after December 31, 1980, no person holding an
office or position (including an advisory or honorary
position) with CSI and Affiliates or any of their subsidiaries as an officer, director, policy-making employee or management 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 perform any such function with Bancshares, Bank, or any of their subsidiaries. 4
On the basis of the foregoing information, it is hereby certified that:
(A) CSI and Affiliates are qualified bank holding
corporations within the meaning of section 1103(b)
of the Code, and satisfy the requirements of that
section,
(B) The 200,000 shares of Bancshares that CSI proposes to distribute to Affiliates and that Affiliates
proposes to distribute to its shareholders are all or
part of the property by reason of which CSI and Af-
3. No gain was recognized in connection with the transfer of the
shares of CSI to Affiliates. Similarly, the transaction did not alter the
beneficial ownership of Bank and CSI. Accordingly, Affiliates appears
to be a successor to CSI for purposes of section 1101(c) of the Code.
4. Since management interlocks between Affiliates or CSI and
Bancshares are one of the principal means by which Affiliates' or
CSI's control might be maintained over Bancshares, termination of
the interlocking relationships appears necessary to insure a complete
divestiture of Affiliates' and CSI's control over Bancshares.
filiates control, within the meaning of section 2(a) of
the BHC Act, a bank or bank holding company; and
(C) The distribution of the shares of Bancshares is
necessary or appropriate to effectuate the policies of
the BHC Act.
This certification is based upon the representations
made to the Board by CSI and Affiliates and upon the
facts set forth above. In the event that the Board
should hereafter determine the facts material to this
certification are otherwise than as represented by CSI
and Affiliates, or that CSI and Affiliates have 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 31,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Conlon-Moore Corporation,
Berwyn, Illinois
Prior Certification Pursuant to the Bank Holding
Company Tax Act of1976.
Conlon-Moore Corporation, Berwyn, Illinois ("Conlon-Moore") has requested a prior certification pursuant to section 1101(c)(3) 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 its 10,214 shares of Commercial
National Bank of Berwyn, Berwyn, Illinois ("Bank"),
is necessary or appropriate to effectuate the policies of
the Bank Holding Company Act (12 U.S.C. § 1841 et
seq.) ("BHC Act"). Conlon-Moore proposes to exchange the 10,214 shares of Bank that it presently
owns for all of the shares of Moore Financial Corporation, a new subsidiary of Conlon-Moore ("New Corporation"), created and availed of solely for the purpose of receiving Conlon-Moore's shares of Bank, and
immediately thereafter to distribute all of ConlonMoore's shares of New Corporation on a pro rata basis
to Conlon-Moore's shareholders.
In connection with this request, the following information is deemed relevant, for purposes of issuing the
requested certification: 1
1. This information derives from Conlon-Moore's communications
with the Board concerning its request for this certification, ConlonMoore's Registration Statement filed with the Board pursuant to the
BHC Act, and other records of the Board.
Legal Developments
1. Conlon-Moore is a corporation organized under
the laws of the state of Delaware on March 18, 1947.
2. Between 1962 and July 7, 1970, Conlon-Moore
acquired ownership and control of 10,074 shares,
representing 83.95 percent of the 12,000 outstanding
voting shares, of Bank. Conlon-Moore presently
owns and controls 10,214 shares, representing 85.12
percent of the 12,000 outstanding voting stock of
Bank. 2
3. Conlon-Moore 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 October 19,
1971. Conlon-Moore 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.
4. Conlon-Moore 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
Conlon-Moore were to continue to be 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. Conlon-Moore has committed to the Board that
by December 31, 1980, no person holding an office
or position (including honorary position) with Conlon-Moore or any of its subsidiaries as an officer,
director, policy-making employee or management
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 perform
any such function with New Corporation, Bank, or
any of their subsidiaries.
On the basis of the foregoing information, it is hereby certified that:
(A) Conlon-Moore 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 shares of Bank that Conlon-Moore proposes
to exchange for shares of New Corporation are all or
2. Subsequent to July 7, 1970, Conlon-Moore acquired an additional 140 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. Since Conlon-Moore has not claimed that any of the
exceptions to this general rule are applicable to it, the 140 shares acquired after July 7, 1970, appear to be ineligible for tax benefits under
the Act.
75
part of the property by reason of which ConlonMoore controls (within the meaning of section 2(a)
of the BHC Act) a bank or bank holding company;
and
(C) the exchange of the shares of Bank for the
shares of New Corporation and the distribution to
the shareholders of Conlon-Moore of the shares of
New Corporation are necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
made to the board by Conlon-Moore 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 ConlonMoore or that Conlon-Moore has failed to disclose to
the Board other material facts, it may revoke this certification.
By order of the Board of Governers, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(3), effective December 1, 1980.
[SEAL]
(Signed) THEODORE E . ALLISON,
Secretary of the Board.
Criss Concrete Company, Inc.,
Parkersburg, West Virginia
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Criss Concrete Company , Inc. ("Criss Concrete"),
Parkersburg, West Virginia has requested a prior certification pursuant to section 1101(b) of the Internal
Revenue Code (the "Code"), as amended by section
2(a) of the Bank Holding Company Tax Act of 1976,
that its proposed divestiture of 3,732 shares of Williamstown National Bank ("Bank"), Williamstown,
West Virginia presently held by Criss Concrete,
through a pro rata distribution to Criss Concrete's
stockholders, 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. Criss Concrete is a corporation organized under
the laws of West Virginia in 1939.
2. On September 14, 1962, Criss Concrete acquired
1. This information derives from Criss Concrete's correspondence
with the Board concerning its request for this certification, Criss Concrete's Registration Statement filed with the Board pursuant to the
BHC Act, and other records of the Board.
76
Federal Reserve Bulletin • January 1981
ownership and control of 4,897 shares, representing
32.6 percent of the outstanding voting shares of
Bank.
3. Criss Concrete 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 July 19, 1971.
Criss Concrete 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. Criss Concrete presently owns and controls
3,732 shares, representing 24.9 percent of the outstanding voting shares of Bank. 2
4. Criss Concrete holds property acquired by it on
or before July 7, 1970, the disposition of which, but
for clause (ii) of section 4(c) of the BHC Act, and the
proviso of section 4(a)(2) of that Act, would be necessary or appropriate to effectuate section 4 of the
BHC Act, if Criss Concrete were to continue to be a
bank holding company beyond December 31, 1980,
and which property, but for such clause and such
proviso, would be "prohibited property" within the
meaning of section 1103(c) of the Code. Sections
1103(g) and 1103(h) of the Code provide that any
bank holding company may elect, for purposes of
Part VIII of subchapter O of Chapter 1 of the Code,
to have the determination 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 that Act did not contain clause (ii) of section 4(c)
or the proviso of section 4(a)(2). Criss Concrete represented that it will make such an election. 3
On the basis of the foregoing information, it is hereby certified that:
(A) Criss Concrete is a qualified bank holding corporation within the meaning of subsection (b) of sec-
2. Subsequent to July 7, 1970, Criss Concrete acquired 35 shares of
Bank and later sold 1,200 shares of Bank, not including the 35 shares
of Bank acquired after July 7, 1970. 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 tax certification is granted generally is not eligible for tax benefits. Since Criss Concrete has not claimed that any of the exceptions to
these general rules are applicable to it, the 1,200 shares sold prior to
the granting of the tax certification and 35 shares acquired after July 7,
1970, appear to be ineligible for tax benefits under the Tax Act.
3. Sections 1103(g) and 1103(h) of the Code require that an election
thereunder be made "at such time and in such manner as the Secretary [of the Treasury] or his delegate may by regulations prescribe."
As of this date, no such regulations have been adopted.
tion 1103 of the Code, and satisfies the requirements
of that subsection;
(B) The 3,697 shares of Bank acquired prior to July
7, 1970, that Criss Concrete proposes to distribute
are all or part of the property by reason of which
Criss Concrete controls (within the meaning of section 2(a) of the BHC Act) a bank or bank holding
company; and
(C) Distribution of the shares of Bank to the shareholders of Criss Concrete is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
made to the Board by Criss Concrete 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 Criss Concrete or that Criss Concrete has failed to disclose to
the Board other material facts, it may revoke this certification. This certification is granted upon the condition that Criss Concrete make the elections required
by sections 1103(g) and 1103(h) of the Code at such
time and in such manner as the Secretary of the Treasury or his delegate may by regulation prescribe.
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 31,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Frank J. Eicher Company, Inc.,
Coralville, Iowa
Final Certification pursuant to the Bank Holding
Company Tax Act of 1976
Frank J. Eicher Company, Inc., Coralville, Iowa
("Company"), has requested a final certification pursuant to section 1101(e) of the Internal Revenue Code
("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.) (the "BHC Act")
to be held by a bank holding company) disposed of all
the property the desposition of which is necessary or
appropriate to effectuate section 4 of the BHC Act.
In connection with this request, the following information is deemed relevant for purposes of issuing the
requested certification. 1
1. This information derives from Company's communications with
the Board concerning its request for this certification, Company's
Legal Developments
1. Effective April 26, 1979, the Board issued a prior
certification pursuant to section 1101(a)(1) of the
Code with respect to the proposed divestiture by
Company of 1,010 voting shares of Eichers, Inc.,
Iowa City, Iowa ("Eichers"), and 19,750 voting
shares of Seville Corporation, Iowa City, Iowa
("Seville"), then held by Company, through the pro
rata distribution of such shares to the two shareholders of Company, who are husband and wife.
2. The Board's Order certified that:
A. Company 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 1,010 shares of Eichers Inc., and the
19,750 shares of Seville Corporation are "prohibited property" within the meaning of section
1103(c) of the Code.
C. The distribution of the 1,010 shares of Eichers,
Inc., and the 19,750 shares of Seville Corporation
is necessary or appropriate to effectuate the policies of the BHC Act.
3. On September 30, 1979, Company distributed to
its shareholders, on a pro rata basis, all of its shares
of Eichers, Inc., and all of its shares of Seville Corporation. Company does not currently own any
shares of Eichers, Inc., or Seville Corporation.
4. Company has represented that it does not exercise a controlling influence over the management or
policies of Eichers, Inc., or Seville Corporation.
5. Company has represented that it holds no other
property the disposition of which is required by section 4 of the BHC Act.
On the basis of the foregoing information, it is hereby certified that Company has (before the expiration of
the period prohibited property is permitted under the
BHC Act to be held by a bank holding company) disposed of all of the property the disposition of which is
necessary or appropriate to effectuate section 4 of the
BHC Act.
This certification is based upon the representations
made to the Board by Company 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 Company, or that Company
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 31,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Registration Statement filed with the Board pursuant to the BHC Act,
and other records of the Board.
77
Gammino Realty C o m p a n y , Inc.,
Providence, R h o d e Island
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Gammino Realty Company, Inc., Providence, Rhode
Island ("Realty"), has requested a prior certification
pursuant to section 1101(b)(1) of the Internal Revenue
Code ("Code"), as amended by section 2(a) of the
Bank Holding Company Tax Act of 1976 ("Tax Act"),
that its proposed divestiture of substantially all of the
shares of National Columbus Bancorp, Inc. ("Bancorp") currently held by Realty, through the pro rata
distribution of the stock of Bancorp to Realty's 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. Realty is a corporation organized under the laws
of Rhode Island on March 30, 1926.
2. On April 30, 1957, Realty acquired ownership
and control of 557 of the 145,000 outstanding shares
of Columbus National Bank of Rhode Island
("Bank") and continued to purchase shares of
Bank/Bancorp at various times thereafter. Bancorp
became a bank holding company on December 31,
1970, after having acquired 100 percent (less directors' qualifying shares) of the outstanding shares of
Bank in exchange for shares of its own stock on a
one-for-one basis on February 27, 1970. On July 7,
1970, Realty owned 21,000 of the 145,000 outstanding shares of Bancorp, representing 14.5 percent of such shares. Realty currently owns and controls 20,900 shares, representing 14.4 percent of the
outstanding shares of Bancorp.
3. On July 7, 1970, Michael A. Gammino, Jr. was
both the President and a director of Bancorp and a
director of Realty. On that date, he owned and controlled 10,300 shares of Bancorp, representing 7.1
percent of the shares outstanding. Also on that date,
members of the family of Michael A. Gammino, Jr.
(two brothers, a sister, and a brother-in-law) owned
a total of 15,800 shares in Bancorp, representing
10.9 percent of the shares outstanding. Michael A.
Gammino, Jr., currently holds the same positions
with Bancorp and Realty that he held on July 7,
1970, and he currently owns and controls 20,300
1. This information derives from Realty's communications with the
Board concerning its request for this certification, Bancorp's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
78
Federal Reserve Bulletin • January 1981
shares of Bancorp, representing exactly 14 percent
of the shares outstanding. The same members of Mr.
Gammino's family now own 12.3 percent of Bancorp' s outstanding shares.
4. No person other than Michael A. Gammino, Jr.
or the members of his immediate family has ever
owned, controlled, or had power to vote as much as
5 percent of the shares of Bancorp.
5. In accordance with section 1103(b)(2) of the Tax
Act, Realty is deemed, solely for the purpose of issuing the requested certification, to have controlled
Bancorp as of July 7, 1970, by virtue of exercising a
controlling influence over Bancorp as of that date,
pursuant to section 2(a)(2)(C) of the BHC Act. This
control relationship has existed continuously since
July 7, 1970.
6. Realty holds property acquired by it on or before
July 7, 1970, the disposition of which would be necessary or appropriate to effectuate section 4 of the
BHC Act, if Realty were to continue to be a bank
holding company beyond December 31, 1980, and
which property is "prohibited property" within the
meaning of section 1103(c) of the Code.
7. Realty has committed to the Board that after December 31, 1980, no person holding an office or position (including an advisory or honorary position)
with Realty or any of its subsidiaries as an officer,
director, policy-making employee or management
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 perform
any such function with Bancorp, Bank, or any of
their subsidiaries. 2
forth above. In the event the Board should hereafter
determine that facts material to this certification are
otherwise than as represented by Realty, or that Realty 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 30,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
The Gilmanton Company,
Foley, Minnesota
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
On the basis of the foregoing information, it is hereby certified that:
(A) Realty 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 20,900 shares of Bancorp that Realty proposes to distribute to its shareholders are all or part
of the property by reason of which Realty controls,
within the meaning of section 2(a) of the BHC Act, a
bank or bank holding company, and
(C) Distribution to the shareholders of Realty of the
shares of Bancorp is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
made to the Board by Realty and upon the facts set
The Gilmanton Company ("Gilmanton"), Foley, Minnesota, has requested a prior certification pursuant to
section 1101(a)(1) 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 assets of its two unincorporated
insurance agency subsidiaries, Gilman State Insurance
Agency ("Gilman"), Gilman, Minnesota, and Foley
State Insurance Agency ("Foley"), Foley, Minnesota,
currently held by Gilmanton, through distribution to
the sole shareholder of Gilmanton, 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. Gilmanton is a corporation organized under the
laws of Minnesota on February 14, 1969.
2. On February 14, 1969, Gilmanton acquired ownership and control of 720 shares, representing 96
percent of the outstanding voting shares, of First
State Bank of Gilman ("Bank"), Benton County,
Minnesota.
3. Gilmanton 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 August 30, 1971.
Gilmanton would have been a bank holding compa-
2. Since management interlocks between Realty and Bancorp are
one of the principal means by which Realty's control might be maintained over Bancorp, termination of the interlocking relationships appears necessary to insure a complete divestiture of Realty's control of
Bancorp.
1. This information derives from Gilmanton's communications with
the Board concerning its request for this certification, Gilmanton's
registration statement filed with the Board pursuant to the BHC Act,
and other records of the Board.
Legal Developments
ny 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.
4. Since its formation on February 14, 1969, Gilmanton has been engaged in general insurance agency activities through its unincorporated insurance
agency subsidiaries, Gilman and Foley.
5. Gilmanton has not filed an application with the
Board, and has not otherwise obtained the Board's
approval, pursuant to section 4(c)(8) of the BHC
Act, to continue to engage in the operation of insurance agencies. 2
On the basis of the foregoing information it is hereby
certified that:
(A) Gilmanton is a qualified bank holding company
within the meaning of section 1103(b) of the Code,
and satisfies the requirements of that subsection;
(B) The assets of the two insurance agencies that
Gilmanton proposes to distribute are "prohibited
property" within the meaning of section 1103(c) of
the Code;
(C) The distribution of the assets of the two insurance agencies is necessary or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the representations
made to the Board by Gilmanton 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 Gilmanton
or that Gilmanton 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 12,1980.
[SEAL]
(Signed) JEFFERSON A. WALKER,
Assistant Secretary of the Board.
The H. Pat Henson Company,
Maysville, Oklahoma
79
("Henson"), has requested a prior tax certification
pursuant to section 1101(a)(2) 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 its general insurance agency
assets through the pro rata distribution to Henson's
stockholders of the stock of a new corporation ("New
Corporation") created and availed of solely for the
purpose of receiving Henson's general insurance agency assets, 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. Henson is a corporation organized under the laws
of Oklahoma on October 20, 1967.
2. On October 25, 1968, Henson acquired ownership and control of 195.13 of the 700 outstanding
voting shares of First National Bank, Maysville,
Oklahoma ("Bank"). On July 7, 1970, Henson
owned and controlled 360.17 of the shares of Bank,
representing approximately 51.5 percent of such
shares. Henson presently owns and controls 616.83
of the 700 outstanding voting shares of Bank, representing approximately 88.12 percent of the shares of
Bank.
3. Henson 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 September 2, 1971. Henson
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.
4. Henson has directly engaged in the operation of a
general insurance agency since its incorporation.
Henson did not file an application with the Board,
and did not otherwise obtain the Board's approval
pursuant to section 4(c)(8) of the BHC Act, to continue to engage in its insurance activities. 2
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
The H. Pat Henson Company, Maysville, Oklahoma
2. Some or all of Gilman's activities may be among those activities
that the Board previously has determined to be closely related to
banking under section 4(c)(8) of the BHC Act. However, in the absence of approval by the Board of an application by Gilmanton to
retain Gilman, Gilmanton may not retain Gilman beyond December
31, 1980. (See Wachovia Corp., No. TCR 76-132, 63 FEDERAL RESERVE B U L L E T I N 6 0 6 ( 1 9 7 7 ) .
1. This information derives from Henson's communications with
the Board concerning its request for this certification, Henson's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. Some or all of Henson's insurance activities may be among those
activities that the Board has previously determined to be closely related to banking under section 4(c)(8) of the BHC Act. However, in
the absence of approval to retain its insurance activities, Henson may
not retain these activities beyond December 31, 1980. (Cf. Wachovia
Corp. D o c k e t N o . TCR-132, 63 FEDERAL RESERVE BULLETIN 606
(1977)).
80
Federal Reserve Bulletin • January 1981
On the basis of the foregoing information, it is hereby certified that:
(A) Henson 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 insurance agency assets that Henson proposes to exchange for shares of New Corporation
are "prohibited property" within the meaning of
section 1103(c) of the Code;
(C) The exchange of Henson's insurance agency assets for the shares of New Corporation and the distribution to the shareholders of Henson of the shares
of New Corporation are necessary or appropriate to
effectuate section 4 of the BHC Act.
This certification is based upon the presentations
made to the Board by Henson 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 Henson or
that Henson 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 31, 1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Houston Corporation,
Houston, Texas
Final Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Houston Corporation, Houston, Texas ("Houston"),
has requested a final certification pursuant to section
6158(c)(2) of the Internal Revenue Code ("Code"), as
amended by section 3(a) of the Bank Holding Company Tax Act of 1976, 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 the purposes of issuing
the requested certification: 1
1. Effective June 20, 1979, the Board issued a prior
certification pursuant to section 6158(a) of the Code
1. This information derives from Houston's communications with
the Board concerning its request for this certification, Houston's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
with respect to the proposed sale of 66,748 shares,
representing 26 percent of the outstanding voting
shares of Post Oak Bank, Houston, Texas
("Bank"), to one individual ("Buyer"). The
Board's Order certified that:
A. Houston is a qualified bank holding corporation within the meaning of sections 6158(f)(1) and
1103(b) of the Code and satisfies the requirements
of those sections;
B. the Bank shares that Houston proposes to divest are all or part of the property by reason of
which Houston controls (within the meaning of
section 2(a) of the BHC Act) a bank or bank holding company; and
C. the sale of such shares of Bank is necessary or
appropriate to effectuate the policies of the BHC
Act.
2. On June 27, 1979, Houston sold to Buyer all of its
interest in Bank for cash, and Buyer is not otherwise
indebted to Houston.
3. The prior certification issued on June 20, 1979,
was granted on the condition that no person holding
an office or position (including an advisory or honorary position) with Houston as a director, officer, 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 or affiliates. Effective June 28, 1979, all interlocking relationships
between Houston and Bank were terminated.
4. The prior certification issued on June 20, 1979,
was granted upon the representation of Houston
that it would elect, for purposes of Part VIII of subchapter O of Chapter I of the Code, to have a 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 sections
1103(g) and 1103(h) of the Code. Houston made this
election by resolution on June 22, 1979.
5. Houston has represented that it does not exercise
a controlling influence over the management or policies of Bank, or any other bank or bank holding
company.
6. Houston has represented that it does not control
in any manner the election of a majority of the directors, or own or control, directly or indirectly, more
than 5 percent of the outstanding shares of any bank
or bank holding company.
On the basis of the foregoing information, it is hereby certified that Houston has (before the expiration of
Legal Developments
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
and commitments made to the Board by Houston and
upon the facts set out above. In the event the Board
should hereafter determine that facts material to this
certification are otherwise than as represented by
Houston, or that Houston has failed to disclose to the
Board other material facts or to fulfill any of its commitments, 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 10,1980.
[SEAL]
(Signed) JEFFERSON A . WALKER,
Assistant Secretary of the Board.
How-Win Development Co.,
Cresco, Iowa
Final Certification Pursuant to the Bank Holding
Company Tax Act of 1976
How-Win Development Co., Cresco, Iowa ("HowWin"), has requested a final certification pursuant to
Section 1101(e) of the Internal Revenue Code
("Code"), as amended by Section 2(a) of the Bank
Holding Company Tax Act of 1976, 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, divested of all such prohibited property.
In connection with this request, the following information is deemed relevant for the purposes of issuing
the requested certification. 1
1. Effective December 13, 1979, the Board issued a
prior certification pursuant to section 1101(a) with
respect to the proposed divestiture by How-Win of
all of its farmland and farm-related property 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 HowWin.
2. The Board's Order certified that:
A. How-Win is a qualified bank holding corporation within the meaning of section 1103(b) of the
1. This information derives from How-Win's correspondence 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.
81
Code, and satisfies the requirements of that subsection;
B. The assets sold by How-Win were prohibited
property within the meaning of section 1103(c) of
the Code.
C. The sale by How-Win of its farm and farm-related properties was necessary or appropriate to
effectuate section 4 of the BHC Act.
3. On January 1, 1980 How-Win transferred to
Winn-Acres, Ltd. its farm and farm-related property
solely in exchange for all of the stock of Winn
Acres, Ltd.
4. How-Win has represented to the Board that it has
disposed of all of its nonbanking property, and that
it does not own or control any nonbanking shares or
property or engage in any activities that must be disposed of under section 4(a)(2) of the Act.
On the basis of the foregoing information, it is hereby certified that How-Win has (before the expiration of
the period prohibited property is permitted under the
BHC Act to be held by a bank holding company) disposed of all of the property the disposition of which is
necessary or appropriate to effectuate the policies of
section 4 of the BHC Act.
This certification is based upon the representations
made by the Board to How-Win 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 How-Win, or that
How-Win 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 29, 1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Midwest Bancorporation, Inc.,
Hays, Kansas
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Midwest Bancorporation, Inc. ("MBI"), Hays, Kansas, has requested a prior certification pursuant to section 1101(c)(2) 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 its general insurance agency assets
through the pro rata distribution to MBI's stockholders of the stock of a new corporation ("New Corporation") created and availed of solely for the pur-
82
Federal Reserve Bulletin • January 1981
pose of receiving MBFs general insurance agency
assets, 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. MBI is a corporation organized under the laws of
Kansas on April 3, 1970.
2. During April, May, and June of 1970, MBI acquired ownership and control of 2,697 of the 3,000
outstanding voting shares of Farmers State Bank
and Trust Company ("Bank"), representing 89.9
percent of such shares. MBI presently owns and
controls 6,586 of the 7,000 outstanding voting shares
of Bank, representing 94.1 percent of such shares.
3. MBI 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 July 15, 1971. MBI 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.
4. MBI has directly engaged in the operation of a
general insurance agency since its formation on
April 3, 1970. MBI did not file an application with
the Board, and did not otherwise obtain the Board's
approval pursuant to section 4(c)(8) of the BHC Act
to continue to engage in its insurance activities. 2
On the basis of the foregoing information, it is hereby certified that:
(A) MBI 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 insurance agency assets that MBI proposes
to exchange for shares of New Corporation are
"prohibited property" within the meaning of section
1103(c) of the Code;
(C) The exchange of MBI's insurance agency assets
for the shares of New Corporation and the distribu-
1. This information derives from MBI's communications with the
Board concerning its request for this certification, MBI's registration
statement filed with the Board pursuant to the BHC Act, and other
records of the Board.
2. Some or all of MBI's insurance activities may be among those
activities that the Board has previously determined to be closely related to banking under section 4(c)(8) of the BHC Act. However, in
the absence of approval by the Board of an application by MBI to
retain its insurance activities, MBI may not retain these activities
beyond December 31, 1980. (Cf. Wachovia Corp., Docket No. TCR
76-132, 63 FEDERAL RESERVE BULLETIN 606 (1977)).
tion to the shareholders of MBI of the shares of New
Corporation are necessary or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the representations
made to the Board by MBI 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 MBI or that MBI
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 3, 1980.
(Signed)
[SEAL]
E. ALLISON,
Secretary of the Board.
THEODORE
Midwestern Fidelity Corporation,
Milford, Ohio
Prior and Final Certifications Pursuant to the Bank
Holding Company Tax Act of 1976
Midwestern Fidelity Corporation (formerly Midwestern Financial Corporation of Ohio), Milford, Ohio
("MFC"), has requested a prior certification pursuant
to section 6158(a) 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 the sale on September 30, 1975, of all of the assets
of The Miami Deposit Bank, Yellow Springs, Ohio
("Bank"), to MDB Bank, Inc., Yellow Springs, Ohio
("MDB"), a subsidiary of First National Cincinnati
Corporation, Cincinnati, Ohio ("FNCC"), a registered bank holding company, was necessary or appropriate to effectuate the policies of the Bank Holding
Company Act of 1956, as amended (12 U.S.C. § 1841
et seq.) ("BHC Act"). MFC has also requested a final
certification pursuant to section 6158(c)(2) of the Code
that MFC 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. 1
1. Pursuant to sections 2(d)(2) and 3(c)(2) of the Tax Act, in the
case of any sale that takes place either on or before December 31, 1976
(the 90th day after the date of the enactment of the Tax Act), the
certification described in section 6158(a) shall be treated as made before the sale, and the certification described in § 6158(c)(2) shall be
treated as made before the close of the calendar year following the
calendar year in which the last such sale occurred, if application for
such certification was made before the close of December 31, 1976.
MFC's request for such certifications was made to the Board prior to
that date.
Legal Developments
In connection with these requests, the following information is deemed relevant for the purposes of issuing the prior and final certifications: 2
1. MFC is a corporation organized under the laws of
the state of Ohio on January 2, 1968.
2. On August 19, 1969, MFC acquired direct ownership and control of 14,813 shares, representing
82.29 percent of the outstanding voting shares, of
Bank. In addition, on December 11, 1969, two
wholly owned subsidiaries of MFC acquired direct
ownership and control of 3,000 shares, representing
16.7 percent of Bank's outstanding voting shares. 3
3. MFC 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
MFC's 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
August 24, 1971. MFC 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 MFC's direct and indirect ownership and control on that date of more than 25 percent of the outstanding voting shares of Bank.
4. On September 30, 1975, MFC held property acquired by it on or before July 7, 1970, the disposition
of which would have been necessary or appropriate
to effectuate section 4 of the BHC Act if MFC had
remained a bank holding company beyond December 31, 1980, and which property would have been
"prohibited property" within the meaning of section
6158(f)(1) and 1103(c) of the Code.
5. On February 25, 1971, MFC filed with the Board
an irrevocable declarartion, pursuant to section
225.4(d) of the Board's Regulation Y that it would
cease to be a bank holding company by December
31, 1980.
6. On September 30, 1975, MFC sold all of the assets, properties, business, and goodwill of Bank to
MDB, a wholly owned subsidiary of FNCC. 4
7. Neither MFC nor any subsidiary of MFC directly
or indirectly owns, controls or has power to vote 25
percent or more of any class of voting securities of
2. This information derives from MFC's correspondence with the
Board concerning its request for certification, MFC's Registration
Statement, Annual Reports filed with the Board pursuant to the BHC
Act, and other records of the Board.
3. MFC's wholly owned subsidiary, The Midwestern Indemnity
Company ("MIC"), and MIC's wholly owned subsidiary, Mid-America Fire & Casualty Company, both located in Milford, Ohio, together
comprised the "Midwestern Group," which acquired these shares.
4. MDB Bank was organized on August 12, 1975, to acquire the
assets of Bank for $3,562,500 of which $1,000,000 was paid for in cash
on September 30, 1975, and $2,562,500 was indebtedness evidenced
by promissory notes (with interest payable at a rate of 6 percent per
year) issued by FNCC to MFC and MIC, on a pro rata basis, and
payable in varying installments over a period of seven years.
83
any bank or any company that controls a bank.
8. No officer, director (including honorary or advisory director) or employee with policymaking functions of MFC or any subsidiary of MFC also holds
any such position with FNCC or any subsidiary of
FNCC, including Bank, or with any other bank or
any company that owns a bank.
9. MFC 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 FNCC or its subsidiaries, including Bank, or of any other bank or company that controls a bank.
On the basis of the foregoing, it is hereby certified
that:
(A) at the time of its sale of Bank to FNCC, MFC
was a qualified bank holding corporation, within the
meaning of section 6158(f)(1) and subsection (b) of
section 1103 of the Code and satisfied the requirements of that subsection;
(B) the assets of Bank that MFC sold to a subsidiary
of FNCC were all or part of the property by reason
of which MFC controlled (within the meaning of
section 2(a) of the BHC Act) a bank or a bank holding company; 5
(C) the sale of Bank by MFC was necessary or appropriate to effectuate the policies of the BHC Act;
and
(D) MFC 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.
This certification is based upon the representations
and commitments made to the Board by MFC and upon the facts set forth above. In the event that the
Board should hereafter determine that facts material to
these certifications are otherwise than as represented
by MFC, or that MFC has failed to disclose to the
Board other material facts, or has failed to fulfill any
commitments, the Board may revoke these certifications.
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 24,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
5. On July 7, 1970, MFC directly and through its subsidiary MIC,
owned and controlled 17,813 shares, representing 98.96 percent of the
outstanding voting shares of Bank. Under section 6158 of the Code,
the assets representing that portion of Bank acquired by MFC after
July 7, 1970, generally would not qualify for the tax benefits of section
6158(a) of the Code when sold by an otherwise qualified holding company.
84
Federal Reserve Bulletin • January 1981
Steego Corporation,
West Palm Beach, Florida
Milwaukee Western Corporation,
West Palm Beach, Florida
Prior Certifications Pursuant to the Bank Holding
Company Tax Act of 1976
Steego Corporation (formerly Sterling Precision Corporation), West Palm Beach, Florida ("Steego"), and
its subsidiary, Milwaukee Western Corporation, West
Palm Beach, Florida ("MWC"), have requested prior
certifications 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 their proposed sale of 41,282 shares
("Bank Shares"), representing 68.6 percent of the outstanding voting shares of Milwaukee Western Bank,
Milwaukee, Wisconsin ("Bank"), to Western Bancshares, Inc., Milwaukee, Wisconsin ("Western"), 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 these requests for prior certification, the following information is deemed relevant for
purposes of issuing the requested certifications: 1
1. Steego is a corporation organized and existing
under the laws of Delaware on October 24, 1955.
2. MWC is a corporation organized and existing under the laws of Delaware on February 24, 1969.
3. MWC is a subsidiary of Steego by virtue of
Steego's ownership of 1,513,762 voting shares of
MWC, representing 90.5 percent of MWC's common stock. Steego acquired 100 percent of MWC's
voting shares on May 8, 1969, and reduced its ownership interest in MWC to 90.5 on June 30, 1969.
4. On May 8, 1969, Steego, through its subsidiary,
MWC, purchased 29,452 shares, representing 58.9
percent of the outstanding shares of Bank. On December 9, 1969, and January 16, 1970, Steego,
through MWC, purchased an additional 176 shares,
thereby increasing its percentage of ownership of
Bank to 59.26 percent of the outstanding voting
shares of Bank. On July 7, 1970, Steego, through
MWC, held 29,628 of the outstanding shares of
Bank. Between July 7, 1970, and the present,
Steego, through MWC, has acquired 11,654 shares
of Bank in various transactions. 2
1. This information derives from correspondence of Steego and
MWC with the Board concerning their requests for these certifications
and the Registration Statements of Steego and MWC filed with the
Board pursuant to the BHC Act.
2. Under section 6158 of the Code, the shares of Bank acquired by
Steego, through MWC, after July 7, 1970, generally do not qualify for
5. MWC became a bank holding company on December 31, 1970, as a result 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 September 29, 1971.
6. Steego became a bank holding company on December 31, 1970, as a result of the 1970 Amendments to the BHC Act, by virtue of its indirect ownership and control at that time through its
subsidiary, MWC, of more than 25 percent of the
outstanding voting shares of Bank, and it registered
as such with the Board on August 26, 1971.
7. Both Steego and MWC hold property that they
acquired on or before July 7, 1970, the disposition of
which would be necessary or appropriate to effectuate section 4 of the BHC Act if Steego and
MWC were to continue to be bank holding companies beyond December 31, 1980. This property is
"prohibited property" within the meaning of section
1103(c) of the Code.
8. Both Steego and MWC have committed that after
the sale of Bank Shares, no person who is a director,
officer or policymaking employee (including honorary and advisory directors) of Steego, MWC, or
their subsidiaries will serve in a similar capacity
with Bank, Western or its subsidiaries. In addition,
all persons affiliated with Steego and MWC currently serving as directors, officers, or policymaking
employees of Bank will resign their positions effective as of the closing date of the sale.
On the basis of the foregoing information, it is hereby certified that:
(A) Steego and MWC are qualified bank holding
corporations within the meaning of section 1103(b)
of the Code, and satisfy the requirements of that
section;
(B) 29,628 of Bank Shares are part of the property
by reason of which Steego and MWC control (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 Steego and
MWC and upon the facts set forth above. In the event
the tax benefits of section 6158(a) of the Code when sold by an otherwise qualified bank holding company. While Steego and MWC intend
to sell all of the shares of Bank held by them to Western, they are not
seeking tax relief under the Tax Act for shares of Bank acquired after
July 7, 1970.
Legal Developments
the Board should determine that facts material to this
certification are otherwise than as represented by
Steego and MWC, or that Steego or MWC 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
(12 C.F.R. 265.2(b)(3)), effective December 4, 1980.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary of the Board.
Northwestern Financial Corporation,
North Wilkesboro, North Carolina
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Northwestern Financial Corporation, North Wilkesboro, North Carolina ("Northwestern"), 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 300 shares of common stock of M & J Financial Corporation, Shelby, North Carolina ("MJF"), 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 purposes of issuing
the requested certification. 1
1. Northwestern is a corporation organized on January 1, 1969, under the laws of the state of North
Carolina. On August 1, 1969, Northwestern acquired ownership and control of 1,291,875 shares,
representing 100 percent of the outstanding voting
shares of The Northwestern Bank, North Wilkesboro, North Carolina ("Northwestern Bank").
2. Northwestern 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 voting shares of Northwestern Bank, and
it registered as such with the Board on November
26, 1971. Northwestern presently owns and controls
100 percent of the outstanding voting shares of
Bank.
1. This information derives from Northwestern's communications
with the Board concerning its request for certification, Northwestern's registration statement filed with the Board pursuant to the
BHC Act, and other records of the Board.
85
3. On October 31, 1969, Northwestern acquired
ownership and control of 15,000 shares, representing 100 percent of the voting shares, of MJF. 2
4. Northwestern holds property acquired by it on or
before July 7, 1970, the disposition of which would
be necessary or appropriate to effectuate section 4
of the BHC Act if Northwestern is 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. Northwestern has committed to the Board that
after December 31, 1980, no person holding an office
or position (including an advisory or honorary position) with Northwestern or any of its subsidiaries as
an officer, director, policy-making employee or
management 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 perform any such function with MJF, Credithrift,
or any of their subsidiaries.
On the basis of the foregoing information, it is hereby certified that:
(A) Northwestern is a qualified bank holding corporation within the meaning of sections 6158(f)(1) and
1103(b) of the Code and satisfies the requirements of
section 1103(b);
(B) the shares of MJF to be divested are "prohibited property" within the meaning of section
6158(f)(2) and 1103(c) of the Code; and
(C) the sale of MJF is necessary or appropriate 3 to
effectuate section 4 of the BHC Act.
2. Before October 1980, MJF engaged directly in consumer financing, second mortgage lending, data processing services, and acting as
agent for the sale of credit life, accident and health insurance. In October 1980, Northwestern reorganized the corporate structure of MJF
into a holding company format. Northwestern exchanged shares of its
inactive subsidiary, Financial Supplies, Inc. ("Financial") for MJF's
consumer finance assets, which were transferred to Financial. Northwestern exchanged shares of its inactive subsidiary, Northwestern Investment Management Company ("Investment Management"), for the
MJF leasing and data processing activities, which were transferred to
Investment Management. Thereafter MJF terminated its credit insurance, dealer floor plan lending and second mortgage lending activities.
MJF changed its name to M & J Group, Inc. ("Group"), which is the
parent company for all MJF activities. Financial, now a subsidiary of
Group, changed its name to M & J Financial Corporation ("New
MJF"). Investment Management, now a subsidiary of Group,
changed its name to M & J Leasing Corporation. This certification is
being issued with regard to the shares of the New MJF now held by
Group. No gain was recognized in connection with the transfer of the
finance company assets to New MJF, nor did this transfer alter the
beneficial ownership of these assets. Accordingly, New MJF appears
to be a successor to old MJF under section 1101(c) of the Code.
3. Since Northwestern has received Board approval to retain certain offices of MJF, Northwestern's divestiture of all of MJF is no
longer necessary, but would be appropriate to effectuate the policies
of section 4 of the BHC Act, if completed on or before December 31,
1980. In general, section 4 of the BHC Act Amendments of 1970 re-
86
Federal Reserve Bulletin • January 1981
This certification is based upon the representations
made to the Board by Northwestern and upon 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 Northwestern, or that Northwestern 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 30,1980.
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
[SEAL]
Parker Insurance Agency Incorporated,
Cleo Springs, Oklahoma
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Parker Insurance Agency Incorporated, Cleo Springs,
Oklahoma ("Parker"), 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 ("Tax Act"),
that its proposed divestiture of its general insurance
agency assets, through the pro rata distribution to all
of the shareholders of Parker, of shares of a proposed
new corporation ("New Corporation") created and
availed of solely for the purpose of receiving such
property, 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. This information is derived from Parker's communications with
the Board concerning its request for this certification, Parker's registration statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
quires a one-bank holding company to divest either its banking or nonbanking properties on or before December 31, 1980. However, the
policy of section 4(a) also provides an exemption for companies covered by the BHC Act's 1970 Amendments to retain, after December
31, 1980, companies engaged in activities permitted by the Board under section 4(c)(8). Nevertheless, this exemptive provision and the
orders issued pursuant to it should be read as permissive and not mandatory. Such an interpretation accomodates both the policy of section
4 and the flexibility of the Board to create exemptions under section
4(c)(8). Thus, a divestiture of nonbanking property on or before December 31, 1980, is "appropriate" to effectuate the policy of section 4
even if the bank holding company has received the Board's approval
to retain the nonbanking property after December 31, 1980. See, e.g.,
Wachovia
Corp.,
63 FEDERAL RESERVE BULLETIN 863 (1977).
1. Parker is a corporation organized under the laws
of the state of Oklahoma on February 28, 1969.
2. On April 15, 1969, Parker acquired 205 shares of
Cleo State Bank, Cleo Springs, Oklahoma
("Bank"), representing 82 percent of the outstanding voting shares of Bank.
3. Parker 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 July 29, 1971. Parker 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 shares of Bank. Parker presently
owns and controls 800 shares, representing 80 percent of the outstanding voting shares of Bank.
4. Since its formation on February 28, 1969, Parker
has been engaged in general insurance agency activities.
5. Parker has not filed an application with the
Board, and has not otherwise obtained the Board's
approval, pursuant to section 4(c)(8) of the BHC
Act, to continue to engage in the operation of an insurance agency. 2
On the basis of the foregoing information, it is hereby certified that:
A. Parker is a qualified bank holding company within the meaning of section 1103(b) of the Code, and
satisfies the requirements of that subsection;
B. The general insurance agency assets that Parker
proposes to transfer to the proposed new corporation are "prohibited property" within the meaning
of section 1103(c) of the Code; and
C. The exchange of the insurance agency assets for
the shares of New Corporation and the distribution
to the shareholders of Parker of the shares of New
Corporation are necessary or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the reprsentations
made to the Board by Parker 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 Parker or
2. Some or all of Parker's activities may be among those activities
that the Board previously has determined to be closely related to
banking under section 4(c)(8) of the BHC Act. However, in the absence of approval by the Board of an application by Parker to engage
in general insurance activities, Parker may not retain this activity
beyond December 31, 1980. (See Wachovia Corp., No. TCR 76-132,
6 3 FEDERAL RESERVE B U L L E T I N 6 0 6 ( 1 9 7 7 ) .
Legal Developments
that Parker 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 31,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Patagonia Corporation,
Tucson, Arizona
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Patagonia Corporation, Tucson, Arizona C'Patagonia"), 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 1,387,912 shares of common stock
of Pima Savings & Loan Association ("Pima"), to
Heron Corporation Limited of London, England
("Heron"), or its proposed sale of 412,762 shares of
common stock of Great Western Bank & Trust
(formerly Bank of Tucson) ("Bank"), to GWB Holding Company, a Delaware Corporation ("GWB"), is
necessary or appropriate to effectuate the policies of
the Bank Holding Company Act (12 U.S.C. § 1841 et
seq.) ("BHC Act") or section 4 of that Act. 1
In connection with this request the following information is deemed relevant for purposes of issuing the
certification: 2
1. Patagonia is a corporation organized on June 29,
1967, under the laws of the state of Delaware.
2. At the time of incorporation Patagonia acquired
50,948 shares, representing 44 percent of the outstanding shares of Bank, and 100,459 shares, representing 20.005 percent of the outstanding shares of
Pima. On July 7, 1970, Patagonia owned 354,820
shares of common stock of Bank and 200,000 shares
of preferred stock of Bank. Since July 7, 1970, Patagonia has acquired 57,942 additional shares of common stock in Bank, through the conversion of its
1. Patagonia understands that it may receive tax benefits for only
one of these divestitures. Uncertainty as to which transaction will be
consummated prior to December 31, 1980, prompted Patagonia to
request a certification allowing either transaction to receive tax benefits.
2. This information is derived from Patagonia's communications
with the Board concerning its request for this certification, Patagonia's Registration Statement filed with the Board pursuant to the
BHC Act, and other records of the Board.
87
preferred stock. 3 Patagonia also held 821,668 shares
of common stock of Pima on July 7, 1970, and has
since acquired 566,244 additional shares through
stock dividends. 4
3. Patagonia became a bank holding company on
December 31, 1970, as a result of the 1970 Amendments of the BHC Act, by virtue of its ownership
and control at the time of more than 25 percent of
the outstanding voting shares of Bank, and it registered as such with the Board on July 1, 1971. Patagonia would have been a bank holding company on
July 7, 1970, if the 1970 Amendments of the BHC
Act 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.
Patagonia presently owns and controls 412,762
shares, representing 100 percent of the outstanding
voting shares of Bank (except for directors' qualifying shares); and owns and controls 1,387,912
shares, representing 100 percent of the outstanding
voting shares of Pima, (except for director's qualifying shares).
4. Patagonia holds property acquired by it on or before July 7, 1970, the disposition of which would be
necessary or appropriate to effectuate section 4 or
the policies of the BHC Act if Patagonia were to remain a bank holding company beyond December 31,
1980, and which is "prohibited property" within the
meaning of section 1103(c) of the Code.
5. Patagonia held 100,459 shares, representing
20.005 percent of the outstanding shares of Pima prior to June 30, 1968, which shares are exempt from
the December 31, 1980 divestiture requirement under the proviso of section 4(a)(2) of the BHC Act.
3. Under section 1101(c) of the Code, property acquired after July
7, 1970, generally, does not qualify for the tax benefits of section
6158(a) of the Code when divested by an otherwise qualified bank
holding company. However, where such property was acquired by a
qualified bank holding company in a transaction in which gain was not
recognized under section 354 of the Code with respect to a reorganization described in section 368 (a)(1)(E) of the Code, then section
6158(a) is applicable. Patagonia contends that these 57,942 shares of
Bank were acquired in such a transaction. Therefore, even though
these shares of Bank were acquired by Patagonia after July 7, 1970,
these shares would qualify as property eligible for the tax benefits provided in section 6158(a) of the Code, if they were in fact received in a
transaction described in § 368(a)(1)(E) of the Code in which no gain
was recognized.
4. As noted above, property acquired by a qualified bank holding
company after July 7, 1970, generally does not qualify for the tax benefits of section 6158(a) of the Code. However, where such property
was acquired by a qualified bank holding company in a transaction in
which gain was not recognized under § 305(a) of the Code, then section 6158(a) is applicable. Patagonia has indicated that these 566,244
shares of Pima were acquired in such a transaction. Consequently,
even though these shares of Pima were acquired by Patagonia after
July 7, 1970, these shares would qualify as property eligible for the tax
benefits provided in section 6158(a) of the Code, by virtue of
§ 1101(c), if they were in fact received in a transaction described in
§ 305(a) of the Code in which no gain was recognized.
88
Federal Reserve Bulletin • January 1981
Section 1103(g) of the Code provides that any bank
holding company may elect, for the purposes of Part
VIII of subchapter O of chapter 1 of the Code, to
have the determination 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 the proviso of § 4(a)(2)
thereof. Patagonia has represented that it will make
such an election. 5
6. Patagonia has committed to the Board that no
person holding an office or position (including an
advisory or honorary position) with Patagonia or
any of its subsidiaries as an officer, director, policymaking employee, or management 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 Pima or any of their subsidiaries. Patagonia has further committed that all
such interlocking relationships presently existing
will be terminated no later than June 12, 1981.
7. The proposed purchaser of Pima, Heron, will finance part of the purchase through Bank. The financial resources of Heron are more than sufficient to
service this indebtedness, making any potential control by Patagonia over Pima as a creditor of Heron
unlikely in the event the sale of the Bank is not consummated.
On the basis of the foregoing information, it is hereby certified that:
(A) Patagonia 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 1,387,912 shares of Pima that Patagonia
proposes to sell to Heron are "prohibited property"
within the meaning of sections 6158(f)(2) and 1103(c)
of the Code.
(C) The 412,762 shares of Bank that Patagonia proposes to sell to GWB are all or part of the property
by reason of which Patagonia controls (within the
meaning of section 2(a) of the BHC Act) a bank; and
(D) The sale of the Bank or Pima is necessary or
appropriate to effectuate the policies of section 4 or
the policies of the BHC Act.
This certification is based upon the facts set forth
5. Section 1103(g) requires that an election thereunder be made "at
such time and in such manner as the Secretary [of the Treasury] or his
delegate may by regulations prescribe." As of this date, no final regulations have been promulgated. However, Patagonia has indicated
that it will comply with the temporary regulations issued by the Secretary of the Treasury. 26 C.F.R. 7570.
above. In the event the Board should hereafter determine that facts material to this certification are otherwise than as represented by Patagonia or that Patagonia 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 this certification.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 CFR § 265.2(b)(3)), effective December 12, 1980.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary of the Board.
Peoples Bancorp, Inc.,
Kansas City, Missouri
Prior Certification Under the Bank Holding Company
Tax Act of 1976
Peoples Bancorp, Inc. (formerly Feeney Insurance
Agency, Inc.), ("Peoples"), Kansas City, Missouri,
has requested a prior certification pursuant to section
1101(a)(1) of the Internal Revenue Code ("Code"), as
amended by section 2(a) of the Bank Holding Company Tax Act of 1976 ("Tax Act"), that its proposed divestiture of three partnership interests 1 currently held
by Peoples, through the distribution of such property
to the sole shareholder of Peoples, 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. 2
1. Peoples is a corporation organized under the laws
of Missouri on January 12, 1968.
2. On February 20, 1968, Peoples acquired ownership and control of 53,156 shares, representing
66.45 percent of the outstanding voting shares, of
the Peoples Bank of Kansas City ("Bank"), Kansas
City, Missouri.
1. The three partnership interests held by Peoples are described below:
1. An undivided 20 percent interest in a partnership known as Benton County Property, holding real property in Benton County, Missouri;
2. An undivided 10 percent interest in a partnership known as
Leighport Investment Company, holding real property in Platte
County, Missouri; and
3. An undivided 17.5 percent interest in a partnership known as
Sky view East Company, also holding real property in Platte County, Missouri.
2. This information derives from Peoples' communications with the
Board concerning its request for this certification, Peoples' Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
Legal Developments
3. Peoples 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 August 20, 1971.
Peoples 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.
4. Peoples acquired its partnership interests in Benton County Property on January 26, 1970; Leighport
Investment Company on September 12, 1969; and
Sky view East Company on April 12, 1969. Peoples
has held such partnership interests continuously
since acquisition.
5. The disposition of the three partnership interests
would be necessary or appropriate to effectuate section 4 of the BHC Act if Peoples were to continue 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. Peoples 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 distribution of the three partnership interests is necessary or appropriate to effectuate the policies of the BHC Act.
This certification is based upon the representations
made to the Board by Peoples and upon the facts set
forth above. In the event the Board should hereafter
determine that the facts material to this certification
are otherwise than as represented by Peoples or that
Peoples 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 10,1980.
[SEAL]
(Signed) JEFFERSON A. WALKER,
Assistant Secretary of the Board.
Republic of Texas Corporation,
Dallas, Texas
Final Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Republic of Texas Corporation, Dallas, Texas ("Republic"), has requested a final certification pursuant to
89
section 6158(c)(2) of the Internal Revenue Code (the
"Code"), as amended by section 3(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, disposed of all
the property the disposition of which is necessary or
appropriate to effectuate section 4 of the BHC Act.
In connection with this request, the following information is deemed relevant for the purpose of issuing
the requested certification: 1
1. Effective March 30, 1977, the Board issued a prior certification pursuant to section 6158(a) of the
Code with respect to the proposed sale by The Howard Corporation ("Howard"), a subsidiary of Republic, of the Town & Country Shopping Center,
Midland, Texas ("Town & Country").
2. Effective April 15, 1977, the Board issued a prior
certification pursuant to section 6158(a) of the Code
with respect to the proposed sale by Howard of the
Uptown Shopping Center, Shreveport, Louisiana
("Uptown").
3. Effective May 25, 1977, the Board issued a prior
certification pursuant to section 6158(a) of the Code
with respect to the proposed sale by Howard of certain of its nonbanking assets, (the "Howard Assets").
4. Effective January 12, 1978, the Board issued a
prior certification pursuant to section 6158 of the
Code with respect to the proposed sale by Howard
of certain of its nonbanking assets ("Old Howard
Assets").
5. Effective February 14, 1979, the Board issued a
prior certification pursuant to section 6158(a) of the
Code with respect to the proposed sale by Westgate
Company, a subsidiary of Republic, of 4.474 acres
of real estate located in Irving, Texas ("Westgate
Property"), which was acquired by Howard on November 13, 1969.
6. Effective March 30, 1979, the Board issued a
prior certification pursuant to section 6158(a) of the
Code with respect to the proposed sale by Oxford
Corporation, a subsidiary of Republic, of a fifty
percent joint venture interest in Westgate Company,
which owned 37.49 acres of real property in Irving,
Texas ("Westgate"). 2
1. This information derives from Republic's correspondence with
the Board concerning its request for this certification, Republic's Registration Statement filed with the Board pursuant to the BHC Act as
well as the Registration Statement of Republic National Bank and other records of the Board.
2. Westgate and Westgate Property were acquired by Howard on
November 13, 1969, and is a part of the property of Howard in which
Republic acquired a beneficial interest pursuant to section 2(g)(2) of
the BHC Act.
90
Federal Reserve Bulletin • January 1981
7. With respect to each of the above, the Board's
Order certified that:
A. Prior to May 9, 1974, Republic National Bank
of Dallas ("Old Republic Bank") was a "qualified
bank holding corporation" within the meaning of
subsection (b) of section 1103 of the Code, and
satisfied the requirements of that section. 3
B. The present Republic National Bank of Dallas
("New Republic Bank") is a corporation that acquired substantially all of the properties of (Old
Republic Bank) a qualified bank holding corporation, and as such is treated as a qualified bank
holding corporation for the purposes of section
6158 of the Code, pursuant to section 3(d) of the
Tax Act.
C. Republic is a corporation in control (within the
meaning of section 2(a)(2) of the BHC Act) of
New Republic Bank, and as such is treated as a
qualified bank holding corporation for the purposes of section 6158 of the Code, pursuant to
section 3(d) of the Tax Act.
D. Howard is a subsidiary (within the meaning of
section 2(d) of the BHC Act) of Republic, and as
such is treated as a qualified bank holding corporation for the purposes of section 6158 of the
Code, pursuant to section 3(d) of the Tax Act.
E. Town & Country, Uptown, the Howard Assets, the Westgate Property and Westgate are
"prohibited property" within the meaning of section 6158 of the Code.
F. The sale of Town & Country, Uptown, the
Howard Assets, the Westgate Property and Westgate is necessary and appropriate to effectuate
section 4 of the BHC Act.
8. As of May 9, 1979, Republic sold all of its interest
in Town & Country, Uptown, the Howard Assets,
the Westgate Property and Westgate. 4
9. Republic has represented that it has disposed of
all of its impermissible nonbanking property.
On the basis of the foregoing information, it is hereby certified that Republic has (before the expiration of
the period prohibited property is permitted under the
BHC Act to be held by a bank holding company) dis3. On July 7, 1970, Old Republic Bank indirectly controlled 29.9
percent of the outstanding voting shares of Oak Cliff Bank and Trust
Company, Dallas, Texas.
4. By virtue of three one-year extensions granted by the Board,
Republic had until May 9, 1979, to complete the divestitures required
by the Board's Order of October 25, 1973. Pursuant to the provisions
of § 4(a)(2) of the BHC Act, Republic was required by that Order to
divest itself, within two years from the date as of which it would become a bank holding company, of the impermissible nonbanking interests that would be directly or indirectly controlled by the successor by
merger to Old Republic Bank, including such impermissible interest
held by Howard. On May 9, 1974, Republic became a bank holding
company.
posed of all of the property the disposition of which is
necessary or appropriate to effectuate section 4 of the
BHC Act.
This certification is based upon the representations
and commitments made to the Board by Republic and
upon the facts set out above. In the event the Board
should hereafter determine that facts material to its
certification are otherwise than as represented by Republic, or that Republic has failed to disclose to the
Board other material facts or to fulfill any of its commitments, 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 22,1980.
(Signed)
[SEAL]
E. ALLISON,
Secretary of the Board.
THEODORE
Safeway Insurance Company,
Chicago, Illinois
Final Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Safeway Insurance Company, Chicago, Illinois
("Safeway"), has requested a final certification pursuant to section 1101(e) to the Internal Revenue Code
("Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976 ("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 December 31, 1979, the Board issued a
perior certification pursuant to section 1101(b) of the
Code with respect to the proposed divestiture by
Safeway of 411,588 shares of Bank then held by
Safeway through the pro rata distribution of such
shares to the holders of the common stock of Safeway.
2. The Board's Order certified that:
A. Safeway 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;
1. 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.
Legal Developments
B. The 411,588 shares of The National Republic
Bank of Chicago ("Bank") that Safeway proposes
to distribute to its shareholders are all or part of
the property by reason by which Safeway 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 31, 1979, Safeway distributed to its
shareholders on a pro rata basis 376,110 shares of
Bank. On July 7, 1980, Safeway distributed an additional 15,000 shares of Bank. 2 Safeway continues to
own 32,390 shares.
4. Safeway has represented to the Board it will not
own or control more than 5 percent of the outstanding voting shares of any bank or any company
that controls a bank beyond January 10, 1981.
5. Safeway has represented that it has terminated
all interlocking director, officer and management official positions between Safeway and Bank. Safeway
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 Safeway 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.
This certification is based upon representations and
commitments made to the Board by Safeway 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 Safeway or
that Safeway 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 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, 1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
91
Sloan State Corporation,
Sloan, Iowa
Final Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Sloan State Corporation, Sloan, Iowa ("Sloan"), has
requested a final certification pursuant to section
1101(e) of the Internal Revenue Code ("Code"), as
amended by section 2(a) of the Bank Holding Company Tax Act of 1976, 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)
disposed of all property the disposition of which is
necessary or appropriate to effectuate the policies of
section 4 of the BHC Act.
In connection with the request, the following information is deemed relevant for purposes of issuing the
requested certification. 1
1. Effective December 27, 1979, the Board issued a
prior certification pursuant to section 1101(a)(1) of
the Code with respect to the divestiture of approximately 75 acres of real property.
2. The Board's Order certified that:
(A) At the time of the disposition by Sloan of its 75
acres of real property, Sloan was a qualified bank
holding corporation within the meaning of subsection 1103(b) of the Code and satisfies the requirements of that subsection;
(B) The assets divested by Sloan were "prohibited
property" within the meaning of section 1103(c)
of the Code;
(C) The divestiture by Sloan of its 75 acres of real
property was necessary or appropriate to effectuate the policies of section 4 of the BHC Act ;
3. On June 30, 1980, Sloan transferred to its shareholders as tenants in common the approximately 75
acres of real property.
4. Sloan has represented to the Board that it has disposed of all of its nonbanking shares and property,
and that it does not own or control any nonbanking
shares or property or engage in any nonbanking activities that must be disposed of under section 4(a)
(2) of the Act.
On the basis of the foregoing it is hereby certified
that Sloan has (before the expiration of the period prohibited property is permitted under the BHC Act to be
held by a bank holding company) disposed of all the
2. In accordance with the Board's Order, Safeway was required to
divest shares of Bank that it had acquired subsequent to July 7, 1970,
to below 5 percent of Bank's shares. Safeway has not requested certification for the 15,000 shares of Bank it acquired subsequent to July 7,
1970, and which it was required to divest in accordance with the prior
certification.
1. This information derives from Sloan's correspondence with the
Board concerning its request for certification, Sloan's Registration
Statement and other records of the Board.
92
Federal Reserve Bulletin • January 1981
property the disposition of which is necessary or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon representations
made to the Board by Sloan 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 Sloan, or that Sloan
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 29, 1980.
(Signed)
[SEAL]
THEODORE E . ALLISON,
Secretary of the Board.
Southern National Corporation,
Lumberton, North Carolina
Prior and Final Certification Pursuant to the Bank
Holding Company Tax Act of 1976
Southern National Corporation, Lumberton, North
Carolina ("Southern"), has requested a prior certification pursuant to § 6158(a) of the Internal Revenue
Code (the "Code"), as amended by § 3 (a) of the Bank
Holding Company Tax Act of 1976 (the "Tax Act"),
that the sale by Southern of the five general insurance
agency offices of Southern National Insurance Services, Inc. ("Services"), a wholly-owned subsidiary of
Southern, on December 31, 1976, is necessary or appropriate to effectuate the policies of the Bank Holding
Company Act (12 U.S.C. § 1841 et seq.) (the "BHC
Act"). 1 Southern has also requested a final certification pursuant to § 6158(c)(2) of the Code that Southern
has (before the expiration of the period prohibited
property is permitted under the BHC Act to be held by
a bank holding company) disposed of all property the
disposition of which is necessary or appropriate to effectuate section 4 of the BHC Act. 2
In connection with this request, the following infor-
1. The Lumberton, North Carolina office was sold on December 31,
1976, the Fairmont, North Carolina office was sold on February 28,
1977, the Rockingham, North Carolina office was sold on September
1, 1977, the Mayodan, North Carolina office was sold on January 1,
1978, and the Henderson, North Carolina office was sold on
October 31, 1977.
2. Pursuant to §§ 2(d)(2) and 3(e)(2) of the Tax Act, in the case of
any sale that takes place on or before December 31, 1976 (the 90th day
after the date of the enactment of the Tax Act), the certification described in § 6158(a) shall be treated as made before the sale if application for such certification was made before the close of December
31, 1976. Southern's application for such certification was mailed on
December 30, 1976, and was received by the Board on January 3,
1977.
mation is deemed relevant, for purposes of issuing the
requested certification: 3
1. Southern is a corporation organized under the
laws of the state of North Carolina on September 24,
1968.
2. On January 1, 1969, Southern acquired ownership and control of 980,621 shares, representing
100 percent of the outstanding voting shares of
Southern National Bank of North Carolina, Lumberton, North Carolina ("Bank").
3. Southern became a bank holding company on
December 31, 1970, as a result of the 1970 Amendments to the BHC Act, by virtue of its 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 November 2, 1971. Southern would have
been a bank holding company on July 7, 1970, if the
BHC Act Amendments of 1970 had been in affect on
such date, by virtue of its ownership and control on
that date of more than 25 percent of the voting
shares of Bank. Southern presently owns and controls 100 percent (less directors' qualifying shares)
of the outstanding voting shares of Bank.
4. Southern holds property acquired by it on or before July 7, 1970, the disposition of which would be
necessary or appropriate to effectuate § 4 of the
BHC Act if Southern were to continue to be a bank
holding company beyond December 31, 1980, which
property is "prohibited property" within the meaning of sections 6158 (g)(2) and 1103(c) of the Code.
5. On December 31, 1976, Southern sold its Lumberton, North Carolina general insurance agency
business to McLean, Brady & McLean Agency,
Inc; on February 17, 1977, Southern sold its Fairmont, North Carolina general insurance agency
business to Grantham Insurance Agency, Inc.; on
September 1, 1977, Southern sold its Rockingham,
North Carolina general insurance agency business
to Lloyd Johnson and Company, Inc.; on January 1,
1978, Southern sold its Mayodan, North Carolina
general insurance agency business to Idol Insurance
Agency; and October 31, 1977, Southern sold its
Henderson general insurance agency business to
Henderson Loan & Insurance Company. In each instance the sale included the good will, customer records, licenses, accounts receivable and all office furniture and fixtures. The sale of the Mayodan and
Henderson offices were for cash.
6. Southern did not file an application with the
Board and did not otherwise obtain the Board's ap-
3. This information derives from Southern's correspondence with
the Board concerning its request for this certification, Southern's Registration Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
Legal Developments
proval pursuant to section 4(c)(8) of the BHC Act to
continue to engage in any of the activities engaged in
at any of the offices of Services. 4
7. On each of the dates set forth in paragraph 5
Southern held property acquired by it on or before
July 7, 1970, the disposition of which was necessary
or appropriate to effectuate § 4 of the BHC Act if
Southern were to continue to be a bank holding
company beyond December 31, 1980, which property was "prohibited property" within the meaning of
§§ 6158(b)(1) and 1103(c) of the Code.
8. Neither Southern nor any subsidiary of Southern
holds any interest in any of the purchasers of the
property described in paragraph 5 (the "Purchasers") or in any subsidiary of Purchasers.
9. None of the Purchasers, or any subsidiary of Purchasers, holds any interest in Southern or in any
subsidiary of Southern.
10. No officer, director (including honorary or advisory director) or employee with policy-making functions of Southern or any subsidiary of Southern also
holds any such position with any of Purchasers or
any subsidiary of any of Purchasers.
11. Southern does not control in any manner the
election of a majority of the directors, or exercise a
controlling influence over the management or policies of any or Purchasers or any subsidiary of any of
Purchasers.
12. Southern does not at present own or control any
property the disposition of which would be necessary or appropriate to effectuate § 4 of the BHC Act
if Southern were to remain a bank holding company
beyond December 31, 1980.
4. Although Southern did not seek Board approval to retain Services, some or all of Services' activities may be among those activities
that the Board has previously determined to be closely related to
banking, under § 4(c)(8). See 12 C.F.R. §§ 225.4(a)(9); Alabama Association for Insurance Agents et al. v. Board of Governors of the Federal Reserve System, 544 2d. (1977). Under the Board's present procedures, however, the question whether, or to what extent, Southern
would have been permitted to retain these activities would not have
been determinable unless and until Southern filed an application for
permission to retain the activities. In passing upon such an application
the Board would have been required to apply the second test set forth
in § 4(c)(8) and to determine whether the performance of these activities by a subsidiary of Southern "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
the absence of favorable action on such an application Southern would
have had no authority for retaining Services beyond December 31,
1980, if it continued to be a bank holding company beyond that date.
The legislative history of the Tax Act does not indicate a Congressional intent that companies subject to such a divestiture requirement exhaust the possibilities for retaining the activity before being eligible for
tax relief, and in view of the paramount purpose of § 4 of the BHC
Act, that "banking and commerce should remain separate," S. Rep.
No. 1084, 91st Cong., 2d Sess. 12 (1970), it would appear that the
disposition of a potentially permissible activity, without first seeking
approval for retention, is at least "appropriate" to effectuate § 4.
93
On the basis of the foregoing information it is hereby
certified that:
(A) At the time of the sales described in paragraph
5 above, Southern was a qualified bank holding
corporation within the meaning of section 6158(f) 1
and subsection (b) of section 1103 of the Code,
and satisfied the requirements of subsection
1103(b) and;
(B) The properties sold by Southern as described
in paragraph 5 above, are "prohibited property"
within the meaning of §§ 6158(f)(2) and 1103(c) of
the Code; and
(C) Southern has (before the expiration of the period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
disposed of all of property the disposition of
which is necessary or appropriate to effectuate
section 4 of the BHC Act.
These certifications are based on the representations
made to the Board by Southern and on the facts set
forth above. In the event the Board should hereafter
determine that facts material to these certifications are
otherwise than as represented by Southern, or that
Southern has failed to disclose to the Board other material facts, it may revoke these certifications.
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, 1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Tri-State Investment Corporation,
Pensacola, Florida
Prior Certification Pursuant to the
Bank Holding Company Tax Act of 1976
Tri-State Investment Corporation ("Tri-State"), Pensacola, Florida, has requested a prior tax certification
pursuant to section 1101(c)(2) of the Internal Revenue
Code ("Code"), as amended by section 2(a) of the
Bank Holding Company Tax Act of 1976 ("Tax Act"),
that its proposed divestiture of certain nonbanking assets presently held by Tri-State through the pro rata
distribution of Tri-State's stockholders of the stock of
a new corporation ("Corporation") created and availed solely for the purpose of receiving Tri-State's nonbanking assets, 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
94
Federal Reserve Bulletin • January 1981
the requested certification: 1
1. Tri-State is a corporation organized under the
laws of Florida on December 12, 1955.
2. Prior to July 7, 1970, Tri-State had acquired
ownership and control of 10,103 of the 33,000 then
outstanding voting shares of The West Florida Bank
("Bank"), Pensacola, Florida, representing approximately 30.6 percent of such shares. Tri-State presently owns and controls 26,889 of the 61,205 currently outstanding voting shares of Bank,
representing 43.9 percent of such shares.
3. Tri-State 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 October 19, 1971.
Tri-State 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.
4. Tri-State 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 Tri-State
were to continue to be 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. The nonbanking assets of Tri-State constituting its "prohibited property" for purposes of
this prior tax certification and the dates of acquisition of such assets are as follows:
Asset
Date of
Acquisition
(A) Baroco Electric Company (in- July 31, 1963
eluding accounts receivable, work
in progress, inventory and stock in
trade, vehicles, equipment and all
other assets used in and about business of Baroco Electric Company)
(B) Building and real estate located August 31, 1956
at 3605 North Davis Street, Pensacola, Florida
(C) Building and real estate located January 9, 1956
at 3800 Navy Boulevard, Pensacola, Flordia (Lots 21 and 22,
Westerly Heights)
1. This information derives from Tri-State's communications with
the Board concerning its request for this certification, Tri-State's registration statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
Asset
Date of
Acquisition
(D) 160 acres of vacant land de- June 15, 1960
scribed as the SE l U of the NW l U,
SW V4 of the NEV4, NW lU of the
SE V4, SW V4 of the SE l U, all in
Section 5, Township 8 South,
Range 5 East, Baldwin County,
Alabama
(E) 3194 shares of the capital stock
of Pensacola Loan and Savings Bank
("S&L"), a banking corporation
under Florida law, comprising approximately 12.2 percent of the outstanding shares of said Bank
Tri-State acquired 70 shares on
May 18, 1959 and 301 shares on October 31, 1959. This 371 shares represented about 12.2 percent of the
issued stock. As of about August
25, 1970, there had been stock splits
or dividends as the result of which
the 371 shares became 2129 shares
still representing 12.2 percent. On
or about October 30, 1971, there
was a stock dividend of 50 percent
resulting in addition of 1065 shares,
making a total of 3194 shares in lieu
of the original 371 shares.2
May 18, 1959, and October 31, 1959; August
25, 1970, and October
30, 1971 (from stock
splits and dividends)
(F) Two lots in Venice East Sub- April 19, 1966
division near Venice in Sarasota May 13, 1968
County, Florida Lot 12 Block 1,
Section 1 Lot 1, Block 2, Section l 3
6. Tri-State has committed that no person holding
an office or position (including an advisory or honorary position) with Tri-State, or any of its subsidiaries, as a director, officer, policy-making employee or consultant, or who performs functions
comparable to those normally associated with such
office or position, will hold any such office or position or perform any such function with Corporation.
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 when distributed by an otherwise qualified bank holding company. However, when such property was acquried by a qualified bank holding company in a transaction in which gain was not recognized under section 305(a) of the Code, then section 1101 is
applicable. Tri-State has stated that the acquisition of 1758 additional
shares of S&L as of August 25, 1970, and 1065 shares of S&L as of
October 30, 1971, were the result of stock splits and stock dividends in
which gain was not recognized under section 305(a) of the Code. If
these shares were, in fact, received in transactions in which gain was
not recognized under section 305(a) of the Code, then these shares
are, accordingly, eligible for the benefits provided in section 1101(a)
by virtue of section 1101(c)(1)(A) of the Code.
3. In addition to the assets described in paragraph 5 above, TriState presently owns certain other nonbanking assets acquired subsequent to July 7, 1970. Tri-State proposes to likewise divest these
assets by transferring them to Corporation. Since none of the exceptions to the general rule of section 1101(c) of the Code (discussed
in footnote 2 supra) appear to be applicable to these assets and these
assets do not otherwise qualify for certification under the Code, they
appear to be ineligible for benefits under the Tax Act.
Legal Developments
On the basis of the foregoing information, it is herey certified that:
(A) Tri-State is a qualified bank holding company
within the meaning of section 1103(b) of the Code,
and satisfies the requirements of that subsection;
(B) The assets identified in paragraph 5 above that
Tri-State proposes to distribute to its shareholders
are "prhobitied property" within the meaning of
section 1103(c) of the Code;
(C) The exchange of Tri-State's nonbanking assets
for the shares of Corporation and the distribution to
the shareholders of Tri-State of the shares of Corporation are necessary or appropriate to effectuate section 4 of the BHC Act.
This certification is based upon the representations
made to the Board by Tri-State 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 Tri-State or
that Tri-State 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 31,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Twin Valley Agency, Inc.,
Twin Valley, Minnesota
Prior Certification Pursuant to the Bank Holding
Company Tax Act of 1976
Twin Valley Agency, Inc., Twin Valley, Minnesota
("TVA"), 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 ("Tax Act") that
its proposed distribution of 460 shares, representing 92
percent of the outstanding voting shares of the Twin
Valley State Bank, Twin Valley, Minnesota ("Bank"),
to TVA's sole shareholder 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. TVA is a corporation organized under the laws
of the state of Minnesota on April 30, 1969.
2. On May 1, 1969, TVA acquired ownership and
control of 460 shares, representing 92 percent of its
outstanding voting shares, of Bank.
3. TVA 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. It registered as a
bank holding company on June 28, 1971.
4. TVA would have been a bank holding company on July 7, 1970, had the 1970 amendments to the
BHC Act 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.
TVA currently owns 460 shares of Bank, representing 92 percent of the outstanding voting shares.
5. TVA holds property acquired by it on or before
July 7, 1970, the disposition of which would be required under section 4 of the BHC Act if TVA were
to remain a bank holding company beyond December 31, 1980, and which 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. TVA 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 460 shares of Bank that TVA proposes to
distribute are all or part of the property by reason of
which TVA controls (within the meaning of section
2(a) of the BHC Act) a bank or bank holding company;
C. The distribution of such shares is necessary or
appropriate to effectuate the policies of the BHC
Act.
This certification is based upon representations
made to the Board by TVA and the facts set forth
above. In the event the Board should determine that
facts material to this certification are other than as represented by TVA, or that TVA 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 12,1980.
[SEAL]
1. This information derives from TVA's correspondence with the
Board concerning its request for this certification, TVA's registration
95
(Signed) JEFFERSON A. WALKER,
Assistant Secretary of the Board.
statement filed with the Board pursuant to the BHC Act, and other
records of the Board.
96
Federal Reserve Bulletin • January 1981
University Bancorp, Inc.,
Kansas City, Missouri
Final Certification Pursuant to the Bank Holding
Company Tax Act of 1976
University Bancorp, Inc., Kansas City, Missouri
("University") (formerly Orwig and Company, Inc.
("Orwig")) has requested a final certification pursuant
to section 6158(c)(2) of the Internal Revenue Code
("Code"), as amended by section 3(a) of the Bank
Holding Company Tax Act of 1976, 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) disposed of all property
the disposition of which is necessary or appropriate
to effectuate section 4 of the BHC Act. 1
In connection with the request, the following information is deemed relevant for purposes of issuing the
requested certification: 2
1. Effective September 14, 1978, the Board issued a
prior certification pursuant to section 6158(a) of the
Code with respect to the sale of property located at
7215 Topeka Boulevard, Topeka, Kansas, known as
the "Heart of America warehouse property" by
Ward Parkway Building Company ("Ward Parkway"), a wholly owned subsidiary of Merchants Investors, Inc., Kansas City, Missouri ("Merchants"). University is the successor under
Missouri law to all of the rights, privileges and interests of Merchants. 3
2. The Board's Order certified that:
1. Pursuant to sections 2(d)(2) and 3(e)(2) of the Tax Act, in the
case of any sale that takes place on or before December 31, 1976 (the
90th day after the date of the enactment of the Tax Act), the certification described in section 6158(a) shall be treated as made before the
sale, and the certification described in section 6158(c)(2) shall be
treated as made before the close of the calendar year in which the last
such sale occurred, if application for such certification was made before the close of December 31, 1976. University's application for such
certification was dated December 27, 1976, and was received by the
Board on December 29, 1976.
2. This information drives from University's correspondence with
the Board concerning its request for certification, University's Registration Statement, Annual Reports filed with the Board pursuant to the
BHC Act, and other records of the Board.
3. On December 1, 1975, the Board of Governors of the Federal
Reserve System issued an Order approving the application of Orwig
and Company, Kansas City, Missouri ("Orwig", a bank holding company controlled by the Schultz family) to merge with Merchants pursuant to section 3(a)(5) of the BHC Act. On December 31, 1975, Merchants merged with Orwig under the charter and title of Orwig. On
June 9, 1976, Orwig amended its articles of corporation to change its
name to University Bancorp, Inc. ("University"). Under Missouri
law, section 351.450 Mo. Rev. Stat. (1969), University succeeded to
all the rights that Merchants held prior to the merger of Merchants and
Orwig on December 31, 1975.
(A) at the time of the sale by Ward Parkway of its
warehouse property, Merchants was a qualified
bank holding corporation within the meaning of
section 6158(f)(1) and subsection (b) of section
1103 of the Code and satisfies the requirements of
that subsection;
(B) the assets sold by Ward Parkway were "prohibited property" within the meaning of sections
6158(f)(2) and 1103(c) of the Code;
(C) the sale of the Ward Parkway properties was
necessary or appropriate to effectuate section 4 of
the BHC Act.
3. On June 12, 1975, Ward Parkway sold the property to Graham Investment Company, Wichita, Kansas, for $1,450,000 in cash. Neither Graham Investment Company nor its subsidiaries are indebted to
Merchants or its subsidiaries or any corporation
succeeding to the rights and liabilities of Merchants.
On December 31, 1975, Ward Parkway was dissolved and its assets (consisting of cash) were liquidated into Merchants.
4. No director, officer, or employee with policymaking functions of University or any of its subsidiaries (including honorary and advisory directors)
holds any such position with Graham Investment
Company or any of its subsidiaries.
5. University has represnted to the Board that it has
disposed of all of its nonbanking shares and property, and that it does not presently own or control any
nonbanking shares or property or engage in any nonbanking activities that must be disposed of under
section 4(a)(2) of the Act.
On the basis of the foregoing information, it is hereby certified that University has (before the expiration
of the period prohibited property is permitted under
the BHC Act to be held by a bank holding company)
disposed of all of the property the disposition of which
is necessary or appropriate to effectuate section 4 of
the BHC Act.
This certification is based upon the representations
made to the Board by University 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 University, or
that University 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 9,1980.
[SEAL]
(Signed) JEFFERSON A. WALKER,
Assistant Secretary of the Board.
Legal Developments
Orders Under Section 2 of Bank
Holding Company Act
Allied Bancshares,
Houston, Texas
Order Granting Determination Under the Bank
Holding Company Act
Allied Bancshares ("Allied") Houston, Texas, a bank
holding company within the meaning of the Bank
Holding Company Act of 1956, as amended,
(12 U.S.C. § 1841 et seq.) has requested a determination under section 2(g)(3) of the Act (12 U.S.C. § 1841(g)
(3)) that Allied and its subsidiary, Allied Bank of Texas
("Allied Bank") Houston, Texas, are not in fact capable of controlling Lott State Bank ("Bank") Lott,
Texas, Turner E. Hubby ("Hubby"), an individual to
whom Allied Bank transferred 5,220 shares of Bank,
or Allen R. Greenstein ("Greenstein"), an individual
who is jointly liable on a loan from Allied Bank to
Hubby in connection with Hubby's purchase of the
shares of Bank.
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 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. Allied has
not made a request for a hearing. Allied has submitted
evidence to the Board to support its contention that it
is not in fact capable of controlling Hubby, Greenstein
(together, "principals") or Bank either directly or
through Allied Bank, and the Board has received no
contradictory evidence. It is hereby determined that
Allied is not in fact capable of controlling or exercising
a controlling influence, either directly or indirectly,
over principals or Bank. This determination is based
upon the evidence of record in this matter, including
the following facts.
Allied Bank acquired 5,220 shares of Bank by foreclosure in June and August of 1977. These shares were
sold to Hubby in August, 1977, through an independent broker. Hubby received a loan from Allied Bank in
the amount of $349,535.34 on which he pledged 5,020
of the acquired shares of Bank as collateral. Hubby
purchased an additional 5,220 shares of Bank and in
December, 1978, sold 5,120 shares to Greenstein.
Greenstein pledged 5,020 of his shares to Allied Bank
as security for the loan initiated by Hubby, and became jointly and severally liable with Hubby on that
97
loan. The Hubby loan bears interest at the rate of
prime plus one quarter percent with interest payable
quarterly and annual principal reductions over twelve
years. The sale of Bank's shares by Allied appears to
have been at arm's-length. There is no evidence that
the financial resources of principals are not sufficient
to repay the debt to Allied Bank, and the payments on
the loan are current.
Principals indebtedness to Allied Bank is secured by
10,140 shares of Bank. In this regard, Allied has committed, in the event of default by principals, Allied will
not reacquire the pledged shares without notification
to the Federal Reserve Bank of Dallas and should Allied reacquire the shares it will dispose of them within
six months of reacquisition. Finally, Allied has stated
that it will not enter into any oral or written agreement
with principals concerning the shares without the specific written approval of the Federal Reserve Bank of
Dallas. The terms governing the debt relationship are
those reasonably required to ensure repayment of the
debt in accordance with accepted banking practices.
There are no other business relationships between Allied, Allied Bank or any of their subsidiaries and Bank,
any of its subsidiaries or principals. Furthermore,
there are no officer or director or employee interlocks
between Allied, Allied Bank or any of their subsidiaries on the one hand, and Bank or any of its subsidiaries on the other hand. Finally, Allied has submitted resolutions of its Board of Directors stating that
it will not attempt to exercise control over them or
Bank.
Accordingly, it is ordered that the request of Allied
for a determination pursuant to section 2(g)(3) is granted. This determination is based on representations
made to the Board by Allied, Allied Bank, Bank and
principals. In the event that the Board should hereafter
determine that facts material to this determination are
otherwise than as represented, or that Allied, Allied
Bank, Bank or principals have failed to disclose to the
Board other material facts, this determination may be
revoked, and any change in the facts and circumstances relied upon by the Board in making this determination could result in the Board reconsidering the
determination made herein.
By the 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 15,
1980.
[SEAL]
(Signed) JEFFERSON A . WALKER,
Assistant Secretary of the Board.
98
Federal Reserve Bulletin • January 1981
Clinton Cable T.V. Co. Inc.,
Terre Haute, Indiana
Order Granting Determination Under the Bank
Holding Company Act
Clinton Cable T.V. Co. Inc., ("Clinton"), Terre
Haute, Indiana, 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. § 1841a) (Act) by
virtue of its control of Dulaney National Bank of Marshall ("Bank"), Marshall, Illinois, has requested a determination, pursuant to the provisions of section 2(g)
(3) of the Act (12 U.S.C. § 1841(g)(3)), that Clinton is
not in fact capable of controlling George Nichols, to
whom it transferred 1206 shares of Bank, or Bank notwithstanding the fact that George Nichols is an officer
and director of Clinton and Bank.
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 Clinton is not, in fact,
capable of controlling George Nichols. This determination is based on the evidence of record in this matter, including the following facts. Clinton is a small
closely-held corporation of which George Nichols is
the President and members of his immediate family are
the only other shareholders. Clinton divested its interest in Bank by distributing the Bank shares held by it
on a pro rata basis to George Nichols and the other
shareholders of Clinton. Thus, Clinton now has no interest in Bank.
Mr. Nichols and his family now hold a total of 50.0
percent of Bank's voting shares. Inasmuch as
Mr. Nichols and his family are the sole shareholders of
Clinton and he and his family is its only officers and
directors, the divestiture of Bank does not appear to
have been a means of perpetuating Clinton's control
over Bank. On the basis of the above and other facts of
record, the Board concludes that control of Clinton resides with George Nichols and his family as individuals and that Clinton does not control and is not in fact
capable of controlling George Nichols in his capacity
as transferee of Bank's stock or otherwise.
Accordingly, it is ordered that the request of Clinton
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 Clinton and
Mr. Nichols. In the event that the Board should hereafter determine that facts material to this determination are otherwise than as represented or that Clinton
or Mr. Nichols has 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 16,1980.
[SEAL]
(Signed) JEFFERSON A. WALKER,
Assistant Secretary of the Board.
Frank J. Eicher Company, Inc.,
Coralville, Iowa
Order Granting a Determination Under the Bank
Holding Company Act
Frank J. Eicher Company, Inc., Coralville, Iowa
("Company"), 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)) (the
"Act"), by virtue of its ownership and control of uniBank and Trust Company, Coralville, Iowa ("Bank"),
has requested a determination pursuant to the provisions of seciton 2(g)(3) of the Act (12 U.S.C. § 1841(g)
(3) that Company is not in fact capable of controlling
Franklin J. Eicher or Mary Jo Eicher ("Transferees")
individuals to whom it transferred its shares of Eichers
Inc., ("Eichers") and Seville Corporation ("Seville")
both located in Iowa City, Iowa, notwithstanding the
fact that these individuals are officers and directors of
Company, Eichers and Seville.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by a 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. 1 No request for a hearing was made by
Company. Instead, Company has submitted evidence
1. In its January 26, 1978, interpretation of section 2(g)(3), the
Board stated that the presumption would also apply where shares are
transferred directly to one or more persons who are directors or officers of the transferor, 12 C.F.R. § 225.139.
Legal Developments
to the Board to support its contention that it is incapable of controlling Transferees either directly or indirectly. The Board has received no contradictory evidence.
It is hereby determined that Company is not, in fact,
capable of controlling Transferees. This determination
is based upon the evidence in the matter, including the
following facts. Company is a small closely-held corporation. Transferees own 100 percent of Company's
stock and are its only officers and directors. Company
distributed pro rata all the shares of Eichers and Seville, to its shareholders, Transferees. Thus, Company's interest in Eichers and Seville has terminated.
Transferees now own all of the shares of Eichers and
Seville. Transferees are the sole shareholders of Company, and the divestiture does not appear to have been
a means of perpetuating Company's control over Eichers or Seville. On the basis of the above and other
facts of record the Board concludes that control of
Company, Eicher's and Seville resides with Transferees as individuals and that Company does not control
and is not in fact capable of controlling Transferees in
their capacity as transferees of the stock of Eichers
and Seville.
Accordingly, it is ordered, that the request of Company for a determination pursuant to section 2(g)(3) is
granted. This determination is based on the representations made to the Board by Company and Transferees. In the event the Board should hereafter determine
that facts material to this determination are otherwise
than as represented, or that Company, or Transferees
have failed to disclose to the Board other material
facts, this determination may be revoked, and any
change in the facts and 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 31,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
Midwestern Fidelity Corporation,
Milford, Ohio
Order Granting Determination
Holding Company Act
a determination under section 2(g)(3) of the Act
(12 U.S.C. § 1841(g)(3)), that it is not in fact capable
of controlling, directly or indirectly, MDB Bank, Inc.,
Yellow Springs, Ohio ("MDB"), the successor to the
Miami Deposit Bank of Yellow Springs Ohio
("Bank"), or its parent, First National Cincinnati Corporation, Cincinnati, Ohio ("FNCC"), notwithstanding the indebtedness incurred by FNCC to MFC and
its subsidiary, the Midwestern Indemnity Company,
Milford, Ohio ("MIC") in connection with the transfer
of the assets of Bank by MFC to MDB.
Under 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 are
deemed to be 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
MFC is not in fact capable of controlling MDB or
FNCC. This determination is based upon the evidence
of record in this matter, including the following facts.
Prior to the transfer, MFC directly held 82.29 percent, and through its subsidiary MIC indirectly held an
additional 16.7 percent, 1 of the outstanding voting
shares of the Bank. Pursuant to the agreement by
which MFC and MIC transferred the assets of Bank to
MDB, MFC and MIC on a pro rata basis loaned FNCC
$2,562,500, evidenced by a note, to enable FNCC to
purchase the assets of Bank. 2 The principal payments
on the note are payable in varying installments over a
period of seven years. Payments on the note are current and it is anticipated that the note will be paid in
full on September 30, 1982. As of October 23, 1980, the
balance due on the note was $562,500 (representing
15.8 percent of the total purchase price). Based on the
facts of record, it appears that FNCC has adequate resources to repay the loan, and there is no evidence to
indicate that the note will not be repaid in accordance
with its terms. Moreover, inasmuch as the loan is not
secured by the transferred property, there is little likelihood that MFC or MIC would reacquire the property
as a result of FNCC's indebtedness to them. Finally,
MFC has represented to the Board that MFC does not,
and will not attempt to, exercise a controlling influence directly or indirectly over MDB or FNCC.
Based on these and other facts of record, it is hereby
determined that MFC is not, in fact, capable of controlling MDB or FNCC, and that the request of MFC
Under the Bank
Midwestern Fidelity Corporation (formerly Midwestern Financial Corporation of Ohio), Milford, Ohio
("MFC"), a bank holding company within the meaning of the Bank Holding Company Act, has requested
99
1. MFC's wholly-owned subsidiary, MIC, and MIC's wholly-owned
subsidiary, Mid-American Fire & Casualty Company, both located in
Milford, Ohio, together comprised the "Midwestern Group," which
held 16.7 percent of Bank's shares.
2. MDB Bank was organized on August 12, 1975, to acquire the
assets of Bank for $3,562,500, of which $1,000,000 was paid for in cash
by FNCC on September 30, 1975.
100
Federal Reserve Bulletin • January 1981
for a determination pursuant to section 2(g)(3) should
be and hereby is granted. This determination is based
upon representations made to the Board by MFC. In
the event that the Board should hereafter determine
that facts material to this determination are otherwise
than as represented, or that MFC has failed to disclose
any material facts, this determination may be revoked;
and any material change in the facts or circumstances
relied upon in making these determinations or any material breach of any of the commitments upon which
this decision is based could result in reconsideration of
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 24,1980.
[SEAL]
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Baord.
Republic of Texas Corporation
Dallas, Texas
Order Granting a Determination
Holding Company Act
Under the Bank
Republic of Texas Corporation, Dallas, Texas ("Republic"), a bank holding company within the meaning
of the Bank Holding Company Act of 1956, as
amended, (12 U.S.C. § 1841 et seq.) ("Act"), has requested a determination under section 2(g)(3) of the
Act (12 U.S.C. § 1841(g)(3)) that Republic and its subsidiary, Republic National ("Bank"), are not in fact
capable of controlling the assets of certain real estate
joint venture activities, 1 notwithstanding the indebtedness on the part of the purchasers of such property to Bank and Republic.
1. By Order dated October 25, 1973, the Board approved Republic's application to become a bank holding company by acquiring Republic National Bank ("Bank"). The acquisition was consummated
on May 9, 1974. Pursuant to section 4(a)(2) of the Act, Republic had a
total of five years until May 9, 1979 to divest all of Bank's impermissible nonbanking activities, including assets held by The Howard Corporation ("Howard"), as trustee, for the benefit of Bank's shareholders. The impermissible assets of Howard consisted primarily of
numerous oil and gas interests as well as several real estate joint ventures. On May 27, 1977, Republic sold the bulk of the impermissible
Howard assets to American Airlines in a cash transaction. The impermissible assets remaining after that sale consisted of real estate joint
ventures. They were acquired on the following dates: (1) On April 9,
1979, Mr. Alden Wagner acquired Westgate Company, (2) On April
10, 1979, HBH Investment Company ("HBH") sold 140 acres of land
to Fox & Jacobs, Inc., (3) On April 11, 1979, Mr. William Campbell
acquired Collin Corporation, (4) On April 24, 1979, HBH sold 124 acres of land to Messrs. James A. Moran and Harry R. Hoffman, (5) On
April 30, 1979, Mr. Sidney Steiner acquired 1-20 Company and North
Westgate Company, and (6) On April 30, 1979, Calusa Developments
acquired 1-35 Corporation.
Under the provisions of section 2(g)(3) of the Act,
shares 2 transferred after January 1, 1966, by a 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.
The time provided for requesting a hearing has expired. No such request has been received by the
Board. Instead, Republic has submitted evidence to
the Board to show that it is not in fact capable of controlling the assets of the joint ventures or their respective purchasers, and the Board has received no contradictory evidence.
On the basis of the facts of record, it is hereby determined that Republic is not in fact capable of controlling the assets sold by its real estate joint ventures
or the purchasers of those assets. In each case, the
sales of the assets appear to have been negotiated at
arms-length. There are no business relationships between Republic, or any of its subsidiaries and the purchasers of the assets, other than as regular bank customers. Furthermore, there are no officer or director
interlocks between Republic, or any of its subsidiaries,
on one hand, and the purchasers of the assets, on the
other hand. Moreover, there is no evidence that the
financial resources of the purchasers are not sufficient
to repay the debt to Republic and Bank. The terms
governing the debt relationship are those reasonably
required in accordance with sound and accepted banking practices. Finally, Republic has undertaken that it
will not attempt to exercise control over the assets
sold by the real estate joint ventures or the purchasers
of such assets, and the purchasers of the assets have
each undertaken not to allow Republic, to exercise
control over them or the assets purchased from the
real estate joint ventures.
Accordingly, it is ordered that the request of Republic for a determination pursuant to section 2(g)(3) is
granted. This determination is based on the representations made to the Board by Republic, and the purchasers of its real estate joint venture assets. In the
event that the Board should hereafter determine that
facts material to this determination are otherwise than
represented, or that either Republic or the purchasers
of its real estate joint venture assets have failed to disclose to the Board other material facts, this determina-
2. For purposes of section 2(g)(3), the Board deems the transfer of
all or substantially all of the assets of a company or the disposition of a
separate activity of a company to involve a transfer of shares,
12 C.F.R. § 225.139(c)(3).
Legal Developments
tion may be revoked, and any change in the facts and
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 22,1980.
(Signed)
THEODORE E . ALLISON,
Secretary of the Board.
[SEAL]
Southern National Corporation,
Lumberton, North Carolina
Southern National Corporation, Lumberton, North
Carolina (''Southern"), a bank holding company within the meaning of § 2(a) of the Bank Holding Company
Act of 1956, as amended (12 U.S.C. § 1841 et seq.)
(the " A c t " ) , has requested a determination pursuant
to the provisions of section 2(g)(3) of the Act
(12 U.S.C. § 1841(g)(3)), that with respect to the sale
by Southern of three of the offices of its subsidiary,
Southern National Insurance Services, Inc., engaged
in the general insurance agency business in Lumberton, Fairmont and Rockingham all in North Carolina
(together, "insurance agencies"), to McLean, Brady
& McLean Agency, Inc.; Grantham Insurance Agency, Inc.; and Lloyd Johnson & Company, Inc.; respectively, (together, Purchasers"), Southern is not in fact
capable of controlling Sellers notwithstanding the fact
the Purchasers are indebted to Southern in connection
with their purchase of insurance agencies.
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 are deemed to be indirectly owned or controlled by the transferor unless the Board, after oppor-
ORDERS APPROVED
UNDER BANK HOLDING
101
tunity for hearing, determines that the transferor is not
in fact capable of controlling the transferee. No
request for a hearing was made by Southern. Southern
has submitted evidence to the Board in support of its
contention that it is not in fact capable of controlling
Purchasers and the Board has received no contrary
evidence. Based on the evidence of record in this matter, it is hereby determined that Southern is not in fact
capable of controlling Purchasers.
This determination is based upon the evidence of
record in this matter, including the following facts:
That the sale of insurance agencies by Southern was
the result of arms-length negotiations; that Purchasers
are in sound financial condition; that Sellers are unaffiliated with Southern and that there are no management or director interlocks between Southern and its
affiliates and Purchasers. On the basis of the above
and other facts of record the Board concludes that
Southern does not control and is not in fact capable of
controlling Purchasers.
Accordingly, it is ordered that the request of Southern 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 Southern.
In the event the Board should hereafter determine that
facts material to this determination are otherwise than
as represented or that Southern has 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 31,1980.
(Signed) JAMES M C A F E E ,
Assistant Secretary of the Board.
[SEAL]
COMPANY
ACT
By the Board of Governors
During December 1980 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.
102
Federal Reserve Bulletin • January 1981
Section 3
Applicant
Board action
(effective
date)
Bank(s)
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
Manufacturers National Corporation,
Detroit, Michigan
Hobe Sound National Bank,
Hobe Sound, Florida
Bank of Lansing,
Lansing, Michigan
December 2,1980
December 24,1980
Sections 3 and 4
Applicant
Panhandle Aviation, Inc.
Clarinda, Iowa
Nonbanking
company
(or activity)
Bank(s)
Farmers Savings Bank,
Freemont, Iowa
to engage directly in the sale
of general insurance
Effective
date
December 23, 1980
Section 4
Applicant
Guaranty Securities Corporation,
Minneapolis, Minnesota
JCT Trust Company Limited, et al.
Tel Aviv, Israel
Tower-Sudan Agency, Inc.,
Tower, Minnesota
Vic Sather & Associates Inc.,
Bloomington, Minnesota
Nonbanking
company
(or activity)
Effective
date
to continue to act as agent for the sale of
credit life and credit accident and health
insurance directly related to extensions of
credit by its subsidiary bank
to engage in commercial finance activities
December 18, 1980
to retain its general insurance agency business
December 18, 1980
to retain its general insurance agency business
December 29, 1980
December 29, 1980
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are
available upon request to the Reserve Banks.
Section 3
Applicant
Alamosa Bancorporation, Ltd.,
Denver, Colorado
Alpha Banco Inc.,
Alpha, Illinois
Bank(s)
The Alamosa National Bank,
Denver, Colorado
Farmers State Bank of Alpha,
Alpha, Illinois
Reserve
Bank
Effective
date
Kansas City
November 28,1980
Chicago
December 24, 1980
Legal Developments
103
Section 3—Continued
Applicant
The American Bank Corporation,
Denver, Colorado
American National Bancorp, Inc.,
Lawton, Oklahoma
Bank(s)
American Bank of Casper, et al.
Casper, Wyoming
The American National Bank of
Lawton,
Lawton, Oklahoma
American National Sidney Corp.,
The American National Bank of
Sidney, Nebraska
Sidney,
Sidney, Nebraska
First Oklahoma Bank and Trust
Arbuckle Bancorp, Inc.,
Sulphur, Oklahoma
Company,
Sulphur, Oklahoma
Rock Rapids State Bank,
Asco, Inc.,
Rock Rapids, Iowa
Rock Rapids, Iowa
Greater Houston Bank,
Bantex Bancshares, Inc.,
Houston, Texas
Houston, Texas
Citizens Bank of Blythedale,
Blythedale Bancshares, Inc.,
Blythedale, Missouri
Blythedale, Missouri
Bridgeport State Company,
The Bridgeport State Bank,
Bridgeport, Nebraska
Bridgeport, Nebraska
Carter Lake Investment Co.,
First Bank and Trust of Carter Lake
Carter Lake, Iowa
Carter Lake, Iowa
Central Bancorporation, Inc., et al. Central Bank of West Greeley,
Denver, Colorado
Greeley, Colorado
Central Nebraska Bankshares, Inc., Security State Bank,
Broken Bow, Nebraska
Broken Bow, Nebraska
Central Oklahoma Bancshares,
Central Oklahoma Bank,
Inc.,
Depew, Oklahoma
Depew, Oklahoma
Farmers' State Bank of Chadwick,
Chadwick Bancshares, Inc.,
Chadwick, Illinois
Chadwick, Illinois
Chimney Rock Bancorp.,
The First National Bank of Bayard,
Bayard, Nebraska
Bayard, Nebraska
Citizens Holding Company,
Citizens Bank of Waverly,
Waverly, Tennessee
Waverly, Tennessee
Clara City State,
Clara City Bancorporation, Inc.,
Clara City, Minnesota
Clara City, Minnesota
Clement Bancshares, Inc.,
First State Bank,
Plainview, Arkansas
Plainview, Arkansas
Columbus Corp.,
The First National Bank of
Columbus,
Columbus, Kansas
Columbus, Kansas
Commerce Bancorporation, Inc.,
The Bank of Commerce,
McLoud, Oklahoma
McLoud, Oklahoma
Covington First State Bancshares,
First State Bank,
Covington, Oklahoma
Inc.,
Covington, Oklahoma
Derby Bancshares, Inc.,
First National Bank of Derby,
Derby, Kansas
Derby, Kansas
Erick Bancorporation, Inc.,
First American Bank,
Erick,
Erick, Oklahoma
Oklahoma
Reserve
Bank
Effective
date
Kansas City
November 7, 1980
Kansas City
November 26, 1980
Kansas City
November 28, 1980
Kansas City
December 1, 1980
Chicago
December 9, 1980
Dallas
December 19, 1980
Kansas City
December 11, 1980
Kansas City
November 13, 1980
Chicago
December 2, 1980
Kansas City
November 26, 1980
Kansas City
November 14, 1980
Kansas City
November 26, 1980
Chicago
N o v e m b e r 28, 1980
Kansas City
December 1, 1980
Atlanta
December 22, 1980
Minneapolis
December 9, 1980
St. Louis
November 28, 1980
Kansas City
November 14, 1980
Kansas City
December 11, 1980
Kansas City
November 21, 1980
Kansas City
November 20, 1980
Kansas City
November 28, 1980
104
Federal Reserve Bulletin • January 1981
Section 3—Continued
Applicant
Bank(s)
Farmers Bank,
Nebraska City, Nebraska
The Farmers National Bank,
Lincoln, Kansas
Farmers & Stockmens Bank of
Clayton, et al.
Clayton, New Mexico
Peoples Savings Bank Company,
Martins Ferry, Ohio
Security State Bank of Basin,
Basin, Wyoming
First National Bank and Trust
Company,
Centralia, Illinois
First Bancshares of Muskogee, Inc., First of Muskogee Corporation,
Muskogee, Oklahoma
Muskogee, Oklahoma
The First National Bank of
First Breck Holding Company,
Breckenridge,
Breckenridge, Minnesota
Breckenridge, Minnesota
The Carthage Bank,
First Carthage Corporation,
Carthage, Mississippi
Carthage, Mississippi
The First Bank of Chattanooga,
First Chattanooga Corporation,
Chattanooga, Oklahoma
Chattanooga, Oklahoma
The First National Bank of Davis,
First Davis Bancorporation, Inc.,
Davis, Oklahoma
Davis, Oklahoma
The First National Bank of Jenks,
First Jenks Bancorporation,
Jenks, Oklahoma
Incorporated,
Jenks, Oklahoma
The First National Bank and Trust
First Miami Bancshares, Inc.,
Company of Miami,
Miami, Oklahoma
Miami, Oklahoma
First National Bank in Palm Beach,
The First National Bank of Palm
Palm Beach, Florida
Beach, Incorporated,
Palm Beach, Florida
The First National Bank,
First Oklahoma National
Stigler, Oklahoma
Corporation,
Stigler, Oklahoma
The First State Bank, Childress,
First State Bancorporation of
Texas,
Childress, Inc.,
Childress, Texas
Childress, Texas
First State Bank,
First State Bancorporation of
Watonga, Oklahoma
Watonga, Inc.,
Watonga, Oklahoma
The First National Bank of La Jara,
First Western Bancorporation,
La Jara, Colorado
La Jara, Colorado
Holstein State Bank,
Geiger Corporation,
Holstein, Iowa
Edina, Minnesota
Eureka State Bank,
Great Plains Bank Corporation,
Eureka, South Dakota
Eureka, South Dakota
Farmers Bancshares, Inc.,
Nebraska City, Nebraska
Farmers Bancshares, Inc.,
Lincoln, Kansas
Farmers & Stockmens
Bancorporation,
Clayton, New Mexico
Finance Ohio Company,
Martins Ferry, Ohio
Financial Security Corporation,
Basin, Wyoming
First Banc Group, Inc.,
Centralia, Illinois
Reserve
Bank
Effective
date
Kansas City
November 7, 1980
Kansas City
November 13, 1980
Kansas City
November 7, 1980
Cleveland
December 16, 1980
Kansas City
December 1,1980
St. Louis
November 26, 1980
Kansas City
November 7, 1980
Minneapolis
December 15, 1980
Atlanta
November 26, 1980
Kansas City
November 10, 1980
Kansas City
November 28, 1980
Kansas City
November 3, 1980
Kansas City
November 28, 1980
Atlanta
December 3, 1980
Kansas City
November 26, 1980
Dallas
December 22, 1980
Kansas City
November 13, 1980
Kansas City
November 14, 1980
Chicago
November 26,1980
Minneapolis
December 12, 1980
Legal Developments
105
Section 3—Continued
Applicant
Great Western Financial Services,
Inc.,
Colorado Springs, Colorado
Green City Bancshares, Inc.,
Green City, Missouri
Guardian Bancorp, Inc.,
Salt Lake City, Utah
Harrisburg Bancshares, Inc.,
Harrisburg, Illinois
Hawkeye Bancorporation,
Des Moines, Iowa
Hudson Bancshares Corporation,
Hudson, Wisconsin
IDA GROVE BANCSHARES, INC.,
Ida Grove, Iowa
Irene Bancorporation, Inc.,
Irene, South Dakota
Jones National Corporation,
Seward, Nebraska
Lamoni Bancshares, Inc.,
Lamoni, Iowa
McPherson County Bancorp., Inc.,
Canton, Kansas
Morning Sun Bank Corp.,
Morning Sun, Iowa
Mountain Financial Services, Inc.,
Denver, Colorado
Mountain States Bancorporation,
Inc.,
Denver, Colorado
Nimrod Enterprises, Inc.,
Foley, Minnesota
North Holding Company, Inc.,
Neillsville, Wisconsin
North Side Bancshares, Inc.,
Tulsa, Oklahoma
Oakdale Bancshares, Inc.,
Oakdale, Nebraska
Old Kent Financial Corporation,
Grand Rapids, Michigan
Peoples Bancorp, Inc.,
Marietta, Ohio
Pipestone Bancshares, Inc.,
Pipestone, Minnesota
RANDALL-STORY
BANCSHARES, INC.,
Story City, Iowa
Bank(s)
The Western National Bank of
Colorado Springs,
Colorado Springs, Colorado
Farmers Bank of Green City,
Green City, Missouri
Guardian State Bank,
Salt Lake City, Utah
The Harrisburg National Bank,
Harrisburg, Illinois
Capital City State Bank,
Des Moines, Iowa
State Bank of Hudson,
Hudson, Wisconsin
Ida County State Bank,
Ida Grove, Iowa
Farmers State Bank of Irene,
Irene, South Dakota
Jones National Bank and Trust
Company of Seward,
Seward, Nebraska
State Bank of Lamoni,
Lamoni, Iowa
The Farmers State Bank & Trust
Co.,
Canton, Kansas
Iowa State Bank,
Morning Sun, Iowa
Southeast National Bank,
Denver, Colorado
Mountain States Bank,
Denver, Colorado
State Bank of Foley,
Foley, Minnesota
Neillsville Bank,
Neillsville, Wisconsin
North Side State Bank,
Tulsa, Oklahoma
First State Bank,
Oakdale, Nebraska
Old Kent Bank of Kalamazoo,
Kalamazoo, Michigan
The First National Bank of
Caldwell,
Caldwell, Ohio
The First National Bank of
Pipestone,
Pipestone, Minnesota
Randall Story State Bank,
Story City, Iowa
Reserve
Bank
Effective
date
Kansas City
November 28, 1980
Kansas City
November 28, 1980
San Francisco
December 16, 1980
St. Louis
December 12, 1980
Chicago
November 28, 1980
Minneapolis
December 19, 1980
Chicago
December 19, 1980
Minneapolis
November 28, 1980
Kansas City
November 14, 1980
Chicago
November 28, 1980
Kansas City
November 7, 1980
Chicago
December 15, 1980
Kansas City
November 28, 1980
Kansas City
November 28, 1980
Minneapolis
December 11, 1980
Chicago
December 26, 1980
Kansas City
November 28, 1980
Kansas City
December 1, 1980
Chicago
December 19, 1980
Cleveland
December 18, 1980
Minneapolis
December 12, 1980
Chicago
December 4, 1980
106
Federal Reserve Bulletin • January 1981
Section 3—Continued
Applicant
Raymond Bancshares, Inc.,
Raymond, Minnesota
Republic of Texas Corporation,
Dallas, Texas
Bank(s)
Farmers State Bank of Raymond,
Raymond, Minnesota
The First National Bank of
Richmond,
Richmond, Texas
Farmers National Bank of
Ridgeway Bancshares, Inc.,
Ridgeway,
Ridge way, Missouri
Ridgeway, Missouri
First National Bank of Valdosta,
SBT Corporation,
Savannah, Georgia
Valdosta, Georgia
First State Bank,
Security National Corporation,
Maple ton, Iowa
Sioux City, Iowa
Alma Exchange Bank and Trust,
South Banking Company,
Alma, Georgia
etal.
Alma, Georgia
Bank of Riverview,
Southwest Florida Banks, Inc.,
Riverview, Florida
Fort Myers, Florida
First Natchez Bank,
Southwest Security, Inc.,
Natchez, Mississippi
Natchez, Mississippi
Stratford Investment Company,
The Farmers Savings Bank,
Stratford, Iowa
Jewell, Iowa
First National Bank of Temple,
Temple Bancorporation, Inc.,
Temple, Oklahoma
Temple, Oklahoma
Texas Commerce Bancshares, Inc., Banc-Southwest Corporation,
Houston, Texas
Amarillo, Texas
Federal National Bank and Trust
Thunderbird Bancshares, Inc.,
Company of Shawnee,
Shawnee, Oklahoma
Shawnee, Oklahoma
Commerce National Bank of
Trust Company of Georgia,
Warner Robins,
Atlanta, Georgia
Warner Robins, Georgia
State Bank of Bussey,
Twin Cedars Bancorp.,
Bussey, Iowa
Bussey, Iowa
Valley Bank of Kalispell,
Valley Bancshares, Inc.,
Kalispell, Montana
Kalispell, Montana
The Citizens State Bank of Scobey,
VEIS BANKSHARES,
Scobey, Montana
INCORPORATED,
Scobey, Montana
West Bank & Trust,
West Bancshares, Inc.,
West, Texas
West, Texas
Western Bancorp, Inc.,
The Western State Bank,
Garden City, Kansas
Garden City, Kansas
Western Bancshares, Inc.,
Milwaukee Western Bank,
Milwaukee, Wisconsin
Milwaukee, Wisconsin
Western Bancshares of Truth or
Western Bank,
Consequences, Inc.,
Truth or Consequences, New
Truth or Consequences, New
Mexico
Mexico
Winters National Corporation,
The First National Bank of
Dayton, Ohio
Circle ville,
Circleville, Ohio
Reserve
Bank
Effective
date
Minneapolis
November 26, 1980
Dallas
December 18, 1980
Kansas City
November 7, 1980
Atlanta
November 26, 1980
Chicago
December 22, 1980
Atlanta
November 28, 1980
Atlanta
December 22, 1980
Atlanta
December 12, 1980
Chicago
November 28, 1980
Kansas City
November 28, 1980
Dallas
December 24, 1980
Kansas City
December 1, 1980
Atlanta
December 16, 1980
Chicago
November 28, 1980
Minneapolis
December 17, 1980
Minneapolis
December 4,1980
Dallas
November 28, 1980
Kansas City
November 28, 1980
Chicago
November 28, 1980
Dallas
December 18, 1980
Cleveland
December 15, 1980
Legal Developments
107
Section 3—Continued
Bank(s)
Applicant
Wirtz Corporation,
Chicago, Illinois
Wood & Huston Bancorporation,
Inc.,
Marshall, Missouri
First Security Trust and Savings
Bank,
Elmwood Park, Illinois
South East Missouri Bank,
Cape Girardeau, Missouri
Reserve
Bank
Effective
date
Chicago
December 4, 1980
Kansas City
November 21, 1980
Sections 3 and 4
Applicant
Bank(s)
Nonbanking
company
(or activity)
Brunswick Bancshares, Brunswick State Bank, to engage in general
insurance agency
Inc.,
Brunswick,
activities in a
Brunswick, Nebraska
Nebraska
community of less
than 5,000 population
to engage in the sale of
CAARGO Financial
Bentonville State
general insurance in
Corporation,
Bank,
a community with a
Bentonville, Indiana
Bentonville, Indiana
population of less
than 5,000
to engage in general
KEYSTONE, INC.,
Sioux County State
insurance activities
Rock Rapids, Iowa
Bank, et al.
in a community with
Orange City, Iowa
a population of less
than 5,000
to acquire and retain
NorKitt Bancorp, Inc., C-D-L Corporation,
indirect control of
Hallock, Minnesota
Hallock, Minnesota
the assets of
Northwestern
Insurance Agency,
Hallock, Minnesota
Reserve
Bank
Effective
date
Kansas City
November 7, 1980
Chicago
December 10, 1980
Chicago
December 18, 1980
Minneapolis
December 22, 1980
Reserve
Bank
Effective
date
Section 4
Applicant
NORTHWEST INVESTMENT
COMPANY OF CLOQUET,
INC., Cloquet, Minnesota
Oliver Jensen Agency, Inc.,
Ravenna, Nebraska
Republican Valley Investment
Company,
Orleans,
http://fraser.stlouisfed.org/Nebraska
Federal Reserve Bank of St. Louis
Nonbanking
company
(or activity)
to continue to engage in equipment
leasing activities
Minneapolis
December 30, 1980
to continue to engage in general
insurance agency activities
to continue to engage in general
insurance activities
Kansas City
November 21, 1980
Kansas City
October 31, 1980
108
Federal Reserve Bulletin • January 1981
PENDING
CASES INVOLVING
THE BOARD OF
GOVERNORS*
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Securities Industry Association v. Board of Governors, et al., filed October 1980, U.S.D.C. for the
District of Columbia.
Securities Industry Association v. Board of Governors, et al., filed October 1980, U.S.C.A. for the
District of Columbia.
A. G. Becker, Inc. v. Board of Governors et al., filed
October 1980, U.S.D.C. for the District of Columbia.
A. G. Becker, Inc. v. Board of Governors et al., filed
October 1980, U.S.C.A. for the District of Columbia.
Independent Insurance Agents of America and Independent Insurance Agents of Missouri v. Board of
Governors, filed September 1980, U.S.C.A. for the
Eighth Circuit.
Independent Insurance Agents of America and Independent Insurance Agents of Virginia v. Board of
Governors, filed September 1980, U.S.C.A. for the
Fourth Circuit.
Nebraska Bankers Association, et al., v. Board of
Governors, et al., filed September 1980, U.S.D.C.
for the District of Nebraska.
Republic of Texas Corporation v. Board of Governors,
filed September 1980, U.S.C.A. for the Fifth Circuit.
Consumers Union of the United States, Inc., v. Board
of Governors et al, filed August 1980, U.S.D.C. for
the District of Columbia.
A. G. Becker Inc., v. Board of Governors, et al., filed
August 1980, U.S.D.C. for the District of Columbia.
Otero Savings and Loan Association v. Board of Governors, filed August 1980, U.S.D.C. for the District
of Columbia.
Edwin F. Gordon v. Board of Governors, et al., filed
August 1980, U.S.C.A. for the Fifth Circuit.
Martin-Trigona v. Board of Governors, filed July 1980,
U.S.C.A. for the District of Columbia.
U.S. League of Savings Associations v. Depository
Institutions Deregulation Committee, et al., filed
June 1980, U.S.D.C. for the District of Columbia.
Berkovitz, et al., v. Government of Iran, et al., filed
June 1980, U.S.D.C. for the Northern District of
California.
Mercantile Texas Corporation v. Board of Governors,
filed May 1980, U.S.C.A. for the Fifth Circuit.
Corbin, Trustee v. United States, filed May 1980,
United States Court of Claims.
Louis J. Roussel v. Board of Governors, filed April
1980, U.S.D.C. for the District of Columbia.
Ulysses S. Crockett v. United States et al., filed April
1980, U.S.D.C. for the Eastern District of North
Carolina.
County National Bancorporation and TGB Co. v.
Board of Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
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.
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.
Security Bancorp and Security National Bank v. Board
of Governors, filed March 1978, 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.
David Merrill, et al., v. Federal Open Market Committee, filed May 1975, U.S.D.C. for the District of
Columbia.
A1
Financial and Business Statistics
CONTENTS
Domestic Financial
Statistics
A3 Monetary aggregates and interest rates
A4 Reserves of depository institutions, reserve,
bank credit
A5 Reserves and borrowings of depository
institutions
A6 Federal funds and repurchase agreements of
large member banks
WEEKLY REPORTING
COMMERCIAL
BANKS
Assets and liabilities
A18 All reporting banks
A19 Banks with assets of $ 1 billion or more
A20
Banks in New York City
A21 Balance sheet memoranda
A22 Commercial and industrial loans
A23 Gross demand deposits of individuals,
partnerships, and corporations
POLICY
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Depository institutions reserve requirements
A9 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A24 Terms of lending at commercial banks
A25 Interest rates in money and capital markets
A26 Stock market—Selected statistics
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
A27 Savings institutions—Selected assets and
liabilities
MONETARY
FEDERAL
AND CREDIT
AGGREGATES
A12 Bank debits and deposit turnover
A13 Money stock measures and components
A14 Aggregate reserves of depository institutions
and member bank deposits
A15 Loans and securities of all commercial banks
COMMERCIAL
BANKS
A16 Major nondeposit funds
A17 Assets and liabilities, last Wednesday-of-month
series
A28
A29
A30
A30
FINANCE
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government marketable s e c u r i t i e s Ownership, by maturity
A32 U.S. government securities d e a l e r s Transactions, positions, and financing
A33 Federal and federally sponsored credit
agencies—Debt outstanding
2
Federal Reserve Bulletin • January 1981
SECURITIES
CORPORATE
MARKETS
AND
FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
A36 Nonfinancial corporations—Assets and liabilities
A36 Total nonfarm business expenditures on new
plant and equipment
A37 Domestic finance companies—Assets and
liabilities; business credit
REAL
ESTATE
A53 U.S. reserve assets
A54 Foreign branches of U.S. banks—Balance sheet
data
A56 Selected U.S. liabilities to foreign official
institutions
REPORTED
BY BANKS
IN THE UNITED
STATES
A56
A57
A59
A60
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A60 Banks' own claims on unaffiliated foreigners
A61 Claims on foreign countries—Combined
domestic offices and foreign branches
A38 Mortgage markets
A39 Mortgage debt outstanding
SECURITIES
CONSUMER
INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Extensions and liquidations
FLOW
OF
HOLDINGS
AND
TRANSACTIONS
A62 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
A62 Foreign official assets held at Federal Reserve
Banks
A63 Foreign transactions in securities
FUNDS
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
Domestic Nonfinancial
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
Statistics
INTEREST
A44 Nonfinancial business activity—Selected
measures
A44 Output, capacity, and capacity utilization
A45 Labor force, employment, and unemployment
A46 Industrial production—Indexes and gross value
A48 Housing and construction
A49 Consumer and producer prices
A50 Gross national product and income
A51 Personal income and saving
International
AND EXCHANGE
RATES
A66 Discount rates of foreign central banks
A66 Foreign short-term interest rates
A66 Foreign exchange rates
Special
Tables
A67 Survey of time and savings deposits at
commercial banks, October 31, 1980
Statistics
A52 U.S. international transactions—Summary
A53 U.S. foreign trade
BUSINESS
STATES
A71 Guide to Tabular
Presentation,
Statistical Releases, and Special Tables
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES AND INTEREST RATES
1979
1980
1980
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
Reserves of depository institutions
Total
Required
Nonborrowed
Monetary base 2
5
6
7
8
9
Concepts of money and liquid assets3
M-1A
M-1B
M-2
M-3
L
Time and savings deposits
Commercial banks
10 Total
11 Savings4
12 Small-denomination time 5
13 Large-denomination time 6
14 Thrift institutions7
15 Total loans and securities at commercial banks 8
0.4'
0.6'
7.4'
5.2'
11.6'
10.4'
5.1'
9.3'
3.9'
5.1'
2.9'
7.6'
4.5
5.0
7.1
9.1
8.5
4.8
5.9
7.2
7.8
8.3
-3.9
-2.4
5.5
5.7
7.7
12.4
-16.5
32.1
19.7
6.7
8.4
-19.3
29.1
11.3
2.7
9.8
-22.6
33.9
10.1
5.0
8.6
9.5
-.5
6.7'
5.8'
12.4'
9.9'
15.3'
14.9'
7.0'
15.1'
21.3'
22.9'
0.7'
9.7'
5.2'
6.8'
5.4'
10.1'
35.9
27.0
13.2
14.9
7.8
11.1
18.2
13.5
7.7
19.3
21.6
14.5
13.6
13.3
12.6
15.8
8.6
9.2
14.2
9.4
11.5
8.8'
10.4'
7.9
6.8
9.3
10.4
14.8
n.a.
4.2
26.4
0.6
-8.3
10.0
2.3
38.6
-3.1
-19.7
9.1
7.3
26.5
0.0
1.5
11.3
12.4
7.6
6.1
23.1
10.5'
11.1
9.4
10.9
12.6
11.8'
22.0
-7.5
28.1
38.9
13.1
7.0
8.2
17.9
14.1
13.3
16.6
11.0
13.5
15.5
12.6'
9.6
3.5'
0.9'
3.1'
8.8'
1980
Q1
Q2
1980
Q4
Q3
Aug.
Sept.
Oct.
Nov.
Dec.
Interest rates (levels, percent per annum)
16
17
18
19
Short-term rates
Federal funds 9
Federal Reserve discount 10
Treasury bills (3-month market yield) 11
Commercial paper (3-month) 1 1 ' 2
Long-term rates
Bonds
20
U.S. government 13
21 State and local government 14
22 Aaa utility (new issue)15
23 Conventional mortgages 16
15.05'
12.51
13.35
14.54
12.69'
12.45
9.62
11.18
9.83'
10.35
9.15
9.65
15.85
11.78
13.61
15.26
9.61
10.00
9.13
9.57
10.87
10.17
10.27
10.97
12.81
11.00
11.62
12.52
15.85'
11.47
13.73
15.18
18.90
12.87
15.49
18.07
11.78
8.23
13.22
14.32
10.58
7.95
11.77
12.70
10.95
8.58
12.20
n.a.
12.23
n.a.
13.49
n.a.
11.07
8.67
12.32
13.25
11.47
8.94
12.74
13.65
11.75
9.11
13.18
14.10
12.44
9.56
13.85
14.70
12.49
10.11
14.51
15.05
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 reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all depository institutions plus currency outside the U.S. Treasury, Federal Reserve Banks,
the vaults of depository institutions, and surplus vault cash at depository institutions.
3. M-1A: Averages of daily figures for (1) demand deposits at all commercial
banks other than those due to domestic banks, the U.S. government, and foreign
banks and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automated transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than
$100,000.
6. Large-denomination time deposits are those issued in amounts of $100,000 or
more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. 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.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. 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.
16. 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
1.11
Domestic Financial Statistics • January 1981
RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week-ending
1980
1980
Oct.P
Nov.P
Dec.P
Nov. 19p
Nov. 26P
Dec. 3p
Dec. 10p
Dec. 17 p
Dec. 24p
Dec. 31 p
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
141,695
142,984
143,250
142,641
142,123
142,557
141,255
143,982
144,173
145,857
2 U.S. government securities1
3 Bought outright
4 Held under repurchase agreements
5 Federal agency securities
6 Bought outright
7
Hela under repurchase agreements
121,455
119,866
1,589
9,206
8,769
437
120,656
119,094
1,562
9,087
8,761
326
119,074
118,548
526
8,821
8,743
78
120,131
118,976
1,155
8,914
8,761
153
121,150
118,974
2,176
9,083
8,761
322
119,126
118,111
1,015
8,977
8,757
220
118,947
117,991
956
8,843
8,750
93
121,322
120,724
598
8,881
8,739
142
119,337
119,071
266
8,749
8,739
10
117,608
117,098
510
8,837
8,739
98
353
1,335
3,722
5,624
397
2,156
4,288
6,400
124
1,617
5,797
7,817
195
1,979
5,107
6,315
312
2,215
3,209
6,154
279
2,142
5,561
6,472
215
1,786
4,482
6,982
112
1,505
4,221
7,941
30
1,649
6,038
8,370
191
1,627
9,049
8,544
11,165
3,268
13,369
11,163
3,325
13,439
11,161
3,313
13,409
11,163
3,354
13,376
11,163
3,368
13,376
11,162
3,368
13,554
11,162
3,368
13,399
11,161
3,368
13,408
11,161
3,368
13,410
11,161
3,125
13,426
130,582
464
132,787
458
135,663
447
133,159
476
133,080
454
134,256
450
134,892
448
135,365
445
135,960
446
136,912
445
3,196
284
330
2,964
314
401
2,722
353
403
3,468
308
375
2,946
309
387
2,845
323
472
2,228
284
384
2,784
386
391
2,287
395
392
3,286
375
416
4,665
29,976
4,772
29,215
4,881
26,664
4,674
28,079
4,785
28,068
4,785
27,510
4,851
26,096
4,977
27,572
4,974
27,659
4,857
27,277
8
9
10
11
Acceptances
Loans
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account ..
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than member bank reserves,
with Federal Reserve Banks
17 Treasury
18 Foreign
19 Other
20 Other Federal Reserve liabilities and
capital
21 Reserve accounts2
End-of-month figures
Wednesday figures
1980
1980
Oct.
Nov.
Dec.
Nov. 19
Nov. 26
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
SUPPLYING RESERVE FUNDS
22 Reserve bank credit outstanding
141,189
146,115
146,382
144,379
144,197
135,751
138,306
148,364
147,075
146,382
23 U.S. government securities1
24 Bought outright
25 Held under repurchase agreements
26 Federal agency securities
27 Bought outright
121,482
119,852
1,630
9,220
8,761
120,812
118,936
1,876
9,165
8,761
121,328
119,299
2,029
9,264
8,739
121,690
119,145
2,545
8,904
8,761
120,642
119,161
1,481
9,086
8,761
114,677
114,677
114,992
114,992
118,308
118,308
8,752
8,752
8,739
8,739
122,123
120,069
2,054
9,128
8,739
8,739
8,739
121,328
119,299
2,029
9,264
8,739
459
404
525
143
325
389
525
566
1,567
2,194
6,160
523
2,284
6,792
6,539
776
1,809
4,467
8,738
374
2,468
4,981
5,962
387
3,985
3,599
6,498
1,355
3,866
7,101
2,101
4,934
7,540
327
1,616
6,561
8,609
1,388
9,673
8,967
776
1,809
4,467
8,738
11,163
3,268
13,716
11,162
3,368
13,779
11,161
2,518
13,427
11,163
3,368
13,376
11,162
3,368
13,376
11,162
3,368
13,396
11,161
3,368
13,408
11,161
3,368
13,408
11,161
3,368
13,423
11,161
2,518
13,427
131,075
460
134,104
449
136,829
441
133,351
455
133,823
451
134,875
450
134,630
446
135,904
441
136,771
447
136,829
441
1,864
368
338
2,435
368
478
3,062
411
617
3,477
236
363
2,323
279
461
3,116
283
391
1,516
272
466
2,653
287
403
2,540
413
379
3,062
411
617
4,713
30,518
5,061
31,528
4,671
27,456
4,658
29,746
4,621
30,144
4,461
20,101
4,616
23,297
5,009
31,604
4,741
29,735
4,671
27,456
28
29
30
31
32
Held under repurchase agreements
Acceptances
Loans
Float
Other Federal Reserve assets
33 Gold stock
34 Special drawing rights certificate account ..
35 Treasury currency outstanding
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 Reserve accounts2
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes reserve balances of all depository institutions,
NOTE: For amounts of currency and coin held as reserves, see table 1.12.
Member Banks
1.12
RESERVES AND BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages of daily figures
Reserve classification
1980
1979
Nov.
Dec.
1 Reserve balances with Reserve Banks
1
Apr.
May
June
July
Aug.
Sept.
Oct.
32,473
33,777
32,755
32,125
31,384
28,923
29,164
29,976
29,215
15.311
26,664
18,149
->
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Vault cash at institutions with required
reserve balances 2
Vault cash equal to required reserves at
other institutions
Surplus vault cash at other institutions3 .
Reserve balances + total vault cash4
Reserve balances + total vault cash used
to satisfy reserve requirements 4 - 5
Required reserves (estimated)
Excess reserve balances at Reserve Banks4-6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Large commercial banks
Reserves held
Required
Excess
Small commercial banks
Reserves held
Required
Excess
U.S. agencies and branches
Reserves held
Required
Excess
All other institutions
Reserves held
Required
Excess
Dec.
11,344
10,889
10,999
11,141
11,287
11,262
11,811
11,678
11,876
12,602
n. a.
n.a.
43,!972
n.a.
n.,a.
44,877
n. a.
n. a.
43,968
n. a.
n. a.
43,479
n. a.
n. a.
42,859
n.a.
n. a.
40,373
n.a.
n. a.
41,164
n. a.
n. a.
41,815
439
2,996
44,674
704
4,843
44,940
n.a.
43,578
394
1,473
82
n.a.
44,683
194
2,455
155
n. a.
43,785
183
1,028
63
n. a.
43,268
211
380
12
n. a.
42,575
284
395
7
n. a.
40,071
302
659
10
n.a.
40,908
256
1,311
26
n. a.
41,498
317
1,335
67
41,678
40,723
955
2,156
99
40,097
40,067
30
1,617
116
24,940
25,819
-879
n.,a.
n.a.
n.a.
n. a.
n. a.
n. a.
n.a.
n. a.
n, a.
13,719
13,523
196
260
230
30
494
495
-1
Weekly averages of daily figures for week ending
Oct. 29
24 Reserve balances with Reserve Banks 1
25 Total vault cash (estimated)
26
Vault cash at institutions with required
reserve balances 2
27
Vault cash equal to required reserves at
other institutions
28 Surplus vault cash at other institutions 3 .
29 Reserve balances + total vault cash4
30 Reserve balances + total vault cash used
to satisfy reserve requirements 4 - 5
31 Required reserves (estimated)
32 Excess reserve balances at Reserve Banks4-6
33 Total borrowings at Reserve Banks
34
Seasonal borrowings at Reserve Banks
Large commercial banks
35 Reserves held
Required
36
37 Excess
Small commercial banks
38 Reserves held
39 Required
40
Excess
U.S. agencies and branches
41 Reserves held
42 Required
43 Excess
All other institutions
44 Reserves held
Required
45
46
Excess
Nov. 5
Nov. 12
Nov. 19
Nov. 26
30,258
30,412
29,658
28,079
17,350
28,068
16,937
Dec. 10
Dec. 17
Dec. 24
27,510
18,317
26,096
18,064
27,572
18,317
27,659
17,663
27,277
18,482
Dec. 31
11,544
12,028
12,273
11,553
11,385
12,413
12,531
12,660
12,345
12,954
n. a.
n. a.
41,966
n. a.
n. a.
42,599
n.a.
n. a.
42,090
730
5,067
45,588
730
4,822
45,134
740
5,164
45,955
700
4,833
44,288
700
4,957
46,013
700
4,618
45,456
700
4,828
45,882
n. a.
41,930
36
1,435
87
n.a.
42,032
567
1,878
72
n. a.
41,686
404
2,067
96
40,521
40,017
504
1,979
96
40,312
39,995
317
2,215
115
40,791
39,910
881
2,142
110
39,455
39.193
262
1,786
111
41,056
40,554
502
1,505
124
40,838
40,029
809
1,649
119
41,054
40,558
496
1,627
116
24,526
25,763
-1,237
25,354
25,724
-370
25,698
25,631
67
24,495
25,171
-676
25,584
26,248
-664
25,757
25,773
-16
25,700
26,163
-463
14,187
13,491
696
13,618
13,574
44
13,880
13,547
333
13,517
13,324
193
13,706
13,566
140
13,828
13,551
277
13,955
13,643
312
233
259
-26
235
228
7
237
244
-7
244
230
14
274
223
51
261
221
40
262
234
28
478
504
-26
487
469
18
500
488
12
454
468
-14
535
517
18
463
484
-21
527
518
9
n. a.
n. a.
n.a.
1. Includes all reserve balances of depository institutions.
2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by
member banks.
3. Total vault cash at institutions without required reserve balances less vault
cash equal to their required reserves.
4. 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 merged into an
Dec. 3
existing member bank, or when a 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.
5. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves. (This measure of excess reserves is
comparable to the old excess reserve concept published historically.)
A6
1.13
Domestic Financial Statistics • January 1981
FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Large Member Banks'
Averages of daily figures, in millions of dollars
1980, week ending Wednesday
By maturity and source
Nov. 5
One day and continuing contract
1 Commercial banks in United States
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
3 Nonbank securities dealers
4 Allother
Nov. 12
Nov. 19'
Nov. 26'
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec. 31
49,000
52,886'
51,545
47,910
51,213
52,508
51,140
46,739
45,902
14,139
2,670
16,584
15,280
2,698
15,873
15,986
2,638
17,505
15,573
2,793
17,067
14,205
2,581
15,484
14,306
2,355
18,042
14,076
2,864
17,847
13,924
2,682
16,656
14,050
2,252
14,937
All other maturities
5 Commercial banks in United States
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
7 Nonbank securities dealers
8 Allother
4,645'
4,781'
3,868
4,112
4,501
4,007
4,070
4,322
5,165
7,790'
4,051
10,987
7,927'
4,186
10,790
7,438
4,174
9,874
7,283
4,240
10,611
7,225
4,494
12,147
7,309
4,139
10,303
7,534
4,136
9,981
7,750
4,495
10,834
7,748
4,476
13,463
MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract
9 Commercial banks in United States
10 Nonbank securities dealers
13,305
2,774
12,545'
2,731
14,872
2,787
11,316
2,547
14,697
2,721
14,163
2,974
14,411
2,950
13,389
3,253
15,340
2,768
1. Banks with assets of $1 billion or more as of December 31, 1977.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit
Short-term
adjustment credit1
Federal Reserve
Bank
Emergency credit
to all others
under section 133
Special circumstances2
Seasonal credit
Rate on
12/31/80
Effective
date
Previous
rate
Rate on
12/31/80
Effective
date
Previous
rate
Rate on
12/31/80
Effective
date
Previous
rate
Rate on
12/31/80
Effective
date
Previous
rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
13
13
13
13
13
13
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
12
12
12
12
12
12
13
13
13
13
13
13
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
12
12
12
12
12
12
14
14
14
14
14
14
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
13
13
13
13
13
13
16
16
16
16
16
16
12/8/80
12/5/80
12/8/80
12/5/80
12/5/80
12/5/80
15
15
15
15
15
15
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
13
13
13
13
13
13
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
12
12
12
12
12
12
13
13
13
13
13
13
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
12
12
12
12
12
12
14
14
14
14
14
14
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
13
13
13
13
13
13
16
16
16
16
16
16
12/8/80
12/5/80
12/5/80
12/5/80
12/8/80
12/5/80
15
15
15
15
15
15
Range of rates in recent years4 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. 15
Feb. 26
Mar. 2
Apr. 23
May 4
11
18
June 11
15
July 2
Aug. 14
23
Range (or
level)—
AH F.R.
Banks
F.R.
Bank
of
N.Y.
5Yi
5Y+-5Yi
5VA
5-51/4
5-51/4
5
43A-5
5 Yi
5VA
5VA
5Va
5
5
5
3
43/4
4 /4
4^-5
5
43/4-5
43/4
4 YItAVA
4^4 3 /4
4 Yi
5
5
5
5
5-5 Yi
5Yi
5^-53/4
5
5Vi
5Yi
5Yi
53/4
53/4
5 /4-6
6
6-6Y2
6 Yi
7
1-1 Yi
IVi
6
6
6 Yi
6 Yi
1
lYi
IVi
3
43/4
4 3 /4
4 Yi
AYi
Effective date
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
1976— Jan. 19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
July 3
Range (or
level)—
All F.R.
Banks
lYi-%
8
73/4-8
73/4
IYA
IVA
IVA
&/*r-lY\
3
6 /4
6>/4-63/4
6V4
6-6V4
5^-6
5V2
5V4-5 Yi
5V4
5V4-5 3 /4
F.R.
Bank
of
N.Y.
8
8
3
7 /4
73/4
1V4
71/4
Effective date
10
21
22
16
20
Nov. 1
3
1978— July
Aug.
Sept.
Oct.
7V4-7 3 /4
F.R.
Bank
of
N.Y.
7V4
7 3 /4
7 3 /4
8
S-SYl
8 Vi
SV2r-9Vl
9 Yi
8
8 Vi
8Y2
9 Yi
9 Yi
1979— July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10 Yi
11
11-12
12
10
WYi
10 Yi
11
11
12
12
1980— Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
12
11
11
10
10
11
12
13
13
13
13
7V4
63/4
63/4
61/4
6^4
6
5Y1
5Yi
5Va
5Va
5V4
5V+-53/4
53/4
6
6
6-6 Yi
6Vz
6Y2r-l
7
7-71/4
evi
6Y1
7
7
1V4
53/4
53/4
In effect Dec. 31, 1980
1. Effective Dec. 5, 1980, a 3 percent surcharge was applied to short term
adjustment credit borrowings by institutions with deposits of $500 million or more
who borrowed in successive weeks or in more than 4 weeks in a calendar quarter.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution as described in section 201.3(b) (2) of Regulation A.
3. Applicable to emergency advances to individuals, partnerships, and corporations as described in section 201.3(c) of Regulation A.
Range (or
level)—
All F.R.
Banks
iote-11
4. Rates for short-term adjustment credit. 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,
1973-1977, and 1974-1978.
5. Twice in 1980, the Federal Reserve applied a surcharge to short-term adjustment credit borrowings by institutions with deposits of $500 million or more
who had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. On Nov. 17,1980, a 2 percent surcharge was adopted which was subsequently
raised to 3 percent on Dec. 5, 1980.
A8
1.15
Domestic Financial Statistics • January 1981
DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS'
Percent of deposits
Type of deposit, and deposit interval
in millions of dollars
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Effective date
Depository institution requirements
after implementation of the
Monetary Control Act 5
Percent
Effective date
3
12
11/13/80
11/13/80
Nonpersonal time deposits
By original maturity
Less than 4 years
4 years or more
3
0
11/13/80
11/13/80
Eurocurrency liabilities
All types
3
11/13/80
6
2
Net demand
0-2
2-10
10-100
100-400
Over 400
Time and savings2
Savings
Type of deposit, and
deposit interval
7
9 Vi
11^4
3
12 /4
I6V4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
Time 4
0-5, by maturity
30-179 days
180 days to 4 years
4 years or more
Over 5, by maturity
30-179 days
180 days to 4 years
4 years or more
3
3/16/67
1/8/76
10/30/75
2 Vi
1
6
2Vi
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report for
1976, table 13. Under provisions of the Monetary Control Act, depository institutions include commercial banks, mutual savings banks, savings and loan associations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
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
ana demand balances due from domestic banks.
(b) The Federal Reserve Act as amended through 1978 specified different ranges
of requirements for reserve city banks and for other banks. Reserve cities were
designated under a criterion adopted effective Nov. 9,1972, by which a bank having
net demand deposits of more than $400 million was considered to have the character
of business of a reserve city bank. The presence of the head office of such a bank
constituted designation of that place as a reserve city. Cities in which there were
Federal Reserve Banks or branches were also reserve cities. Any banks having net
demand deposits of $400 million or less were considered to have the character of
business of banks outside of reserve cities and were permitted to maintain reserves
at ratios set for banks not in reserve cities.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U.S residents were reduced to zero from 4 percent and
1 percent, respectively. The Regulation D reserve requirement 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 were subject to the same reserve requirements as deposits of member banks.
3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such
as Christmas and vacation club accounts were subject to the same requirements
as savings deposits.
(b) The average reserve requirement on savings and other time deposits before
implementation of the Monetary Control Act had to be at least 3 percent, the
minimum specified by law.
4. (a) Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits o f $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
1
3/16/67
3
Net transaction accounts
$0-$25 million
Over $25 million
(b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a
marginal reserve requirement of 8 percent was added to managed liabilities in
excess of a base amount. This marginal requirement was increased to 10 percent
beginning April 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was reduced to zero beginning July 24, 1980. Managed liabilities are defined as
large time deposits. Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, feeleral funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement was originally the greater of (a) $100 million or (b)
the average amount of the managed liabilities held by a member bank, Edge
corporation, or family of U.S. branches and agencies of a foreign bank for the two
statement weeks ending Sept. 26,1979. For the computation period beginning Mar.
20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's
U.S. office gross loans to foreigners and gross balances due from foreign offices
of other institutions between the base period (Sept. 13-26, 1979) and the week
ending Mar. 12,1980, whichever was greater. For the computation period beginning
May 29,1980, the base was increased by lYi percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and
balances declined.
5. For existing nonmember banks and thrift institutions, there is a phase-in
period ending Sept. 3, 1987. For existing member banks the phase-in period is
about three years, depending on whether their new reserve requirements are greater
or less than the old requirements. For existing agencies and branches of foreign
banks, the phase-in ends Aug. 12, 1982. All new institutions will have a two-year
phase-in beginning with the date that they open for business.
6. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment
orders of withdrawal, telephone and preauthorized transfers (in excess of three per
month), for the purpose of making payments to third persons or others.
7. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which the beneficial interest is
held by a depositor which is not a natural person. Also included are certain transferable time deposits held by natural persons, and certain obligations issued to
depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. After implementation of the Monetary Control Act,
nonmembers may maintain reserves on a pass-through basis with certain approved
institutions.
Policy Instruments
1.16
A9
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Savings and loan associations and
mutual savings banks
Commercial banks
Type and maturity of deposit
In effect Dec. 31, 1980
Percent
1 Savings
2 Negotiable order of withdrawal accounts 2
Time accounts 3
Fixed ceiling rates by maturity 4
3
14-89 days °
4
90 days to 1 year
5
1 to 2 years '
6
2 to 2Vz years 7
7
2Vz to 4 years 7
8
4 to 6 years 8
9
6 to 8 years 8
10
8 years or more 8
11
Issued to governmental units (all maturities') 10
12
Individual retirement accounts and Keogh (H.R. 10)
plans (3 years or more) 10 > u
13
14
Special variable ceiling rates by maturity
6-month money market time deposits 12
2Vz years or more
54
V
5V4
54
V
Effective
date
Percent
6 Vz
7VA
iVz
IVA
8/1/79
1/1/80
5
7/1/73
53/4
53/4
7/1/73
11/1/73
12/23/74
6/1/78
6/1/78
(9L 4
7
^
(6)I
6/1/78
8
RESERVE BULLETIN f o r O c t o b e r 1962 ( p . 1279), A u g u s t 1965 (p. 1084), a n d F e b -
ruary 1968 (p. 167).
4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts
at savings and loan associations was decreased to 14 days and the minimum maturity
period for time deposits at savings and loan associations in excess of $100,000 was
decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice
period for time deposits was decreased from 30 days to 14 days for mutual savings
banks.
5. Effective Oct. 30, 1980, the minimum maturity or notice period for time
deposits was decreased from 30 days to 14 days for commercial banks.
6. No separate account category.
7. No 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.
8. No 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 November 1976 respectively.
9. 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 6Vz percent ceiling on time
deposits maturing in 2Vz years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denomination requirements.
11. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on I R A and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2^-year or more variable ceiling certificates or in 26-week money market certificates regardless of the level of the Treasury
bill rate.
12. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
13. 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 on money market time deposits entered into
before June 5,1980, is the discount rate (auction average) on most recently issued
six-month U.S. Treasury bills. Until Mar. 15,1979, the ceiling rate for savings and
loan associations and mutual savings banks was V4 percentage point higher than
the rate for commercial banks. Beginning March 15,1979, the VVpercentage-point
interest differential is removed when the six-month Treasury bill rate is 9 percent
or more. The full differential is in effect when the six-month bill rate is 83/4 percent
8
Effective
date
In effect Dec. 31, 1980
Percent
Effective
date
7/1/73
1/1/74
7/1/79
12/31/80
1. July 1, 1973, for mutual savings banks; 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
(NOW) 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. 10, 1978, and in New Jersey on Dec. 28, 1979. Authorization to issue N O W accounts was extended to similar institutions nationwide
effective Dec. 31, 1980.
3. For exceptions with respect to certain foreign time deposits see the FEDERAL
Previous maximum
5h
5 Vi
53/4
73/4
73/4
5Vz
51/4
7/1/79
12/31/80
7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
6<6)
1/1/80
li/i/73*
73/4
6 Vz
0)
(')
IVz
' 12/23/74
11/1/73
12/23/74
6/1/78
6/1/78
7/6/77
6/1/78
63/4
Previous maximum
Percent
5V4
5
(6)
53/4
53/4
6
6
>7*
}
73/4
73/4
c
m
or less. Thrift institutions may pay a maximum 9 percent when the six-month bill
rate is between 83/4 and 9 percent. Also effective March 15, 1979, interest compounding was prohibited on six-month money market time deposits at all offering
institutions. The maximum allowable rates in December for commercial banks ana
thrift institutions were as follows: Dec. 4,14.804; Dec. 11,15.319; Dec. 18,15.673;
Dec. 26, 14.282. Effective for all six-month money market certificates issued beginning June 5, 1980, the interest rate ceilings will be determined by the discount
rate (auction average) of most recently issued six-month U.S. Treasury bills as
follows:
Bill rate
Commercial bank ceiling
Thrift ceiling
8.75 and above
bill rate + V4 percent
bill rate + VA percent
8.50 to 8.75
bill rate + VA percent
9.00
7.50 to 8.50
bill rate + VA percent
bill rate + Vz percent
7.25 to 7.50
7.75
bill rate + Vz percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues.
14. Effective Jan. 1,1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2Vz years
or more. The maximum rate for commercial banks is 3A percentage point below
the yield on 2kz-year U.S. Treasury securities; the ceiling rate for thrift institutions
is VA percentage point higher than that for commercial banks. Effective Mar. 1,
1980, a temporary ceiling of 11^4 percent was placed on these accounts at commercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable ceiling nonnegotiable time
deposits with maturities of 2Vz years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:
Treasury yield
Commercial bank ceiling
Thrift ceiling
12.00 and above
11.75
12.00
9.50 to 12.00
Treasury y i e l d - VA percent
Treasury yield
Below 9.50
9.25
9.50
Interest may be compounded on these time deposits. The ceiling rates of interest
at which these accounts may be offered vary biweekly. The maximum allowable
rates in December for commercial banks were as follows: Dec. 11, 11.75; Dec. 26,
11.75. The maximum allowable rates in December for thrift institutions were as
follows: Dec. 11, 12.00; Dec. 26, 12.00.
15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were 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 was 1^4 percentage points below
the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions
was VA percentage point higher than that for commercial banks.
NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were established by the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the Federal
Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526,
respectively. Title II of the Depository Institutions Deregulation and Monetary
Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to
establish maximum rates of interest payable on deposits to the Depository Institutions Deregulation Committee. 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 Home Loan Bank
Board Journal, and the Annual Report of the Federal Deposit Insurance Corporation.
A10
1.17
Domestic Financial Statistics • January 1981
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1980
Type of transaction
1977
1979
1978
May
July
June
Aug.
Sept.
Oct.
Nov.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year1
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
13,738
7,241
0
2,136
16,628
13,725
0
2,033
15,998
6,855
0
2,900
838
232
0
0
322
0
274
0
0
2,264
0
950
0
47
0
0
200
237
0
0
991
531
0
700
0
600
0
500
3,017
0
4,499
2 500
1,184
0
-5,170
0
3,203
0
17,339
-11,308
2,600
155
0
1,670
-5,276
0
121
0
412
-1,479
0
0
0
311
-788
0
137
0
2,423
-3,134
0
0
0
589
-1,459
0
0
0
596
-420
0
0
0
2,368
-879
0
2,833
0
4,188
0
6 649
178
2,148
0
-12,693
7,508
405
0
-1,302
3,000
465
0
-412
1,479
0
0
-311
788
541
0
-720
1,750
0
0
-589
1,459
0
0
-596
420
0
0
-2,368
500
758
0
1,526
0
584
2,803
523
0
-4,646
2,181
133
0
-25
1,300
164
0
0
0
0
0
0
0
236
0
-1,703
1,000
0
0
0
0
0
0
0
0
0
0
0
220
553
0
1,063
0
1,565
2,545
454
0
0
1,619
216
0
-342
976
129
0
0
0
0
0
0
0
320
0
0
384
0
0
0
0
0
0
0
0
0
0
0
159
20,898
7,241
4,636
24,591
13,725
2,033
22,325
6,855
5,500
1,747
232
0
1,200
0
0
0
2,264
950
1,234
47
0
200
237
0
991
531
700
0
600
500
1
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
25
26
Matched transactions
Gross sales
Gross purchases
425,214
423,841
511,126
510,854
627,350
624,192
49,934
50,965
50,590
52,076
48,370
46,023
72,315
71,645
55,766
56,207
55,787
56,462
40,944
41,129
27
28
Repurchase agreements
Gross purchases
Gross sales
178,683
180,535
151,618
152,436
107,051
106,968
7,717
4,811
12,810
15,258
10,719
10,110
2,783
3,016
3,203
2,743
20,145
19,808
24,169
23,924
29
Net change in U.S. government securities
5,798
7,743
6,896
5,452
238
-4,952
284
863
771
-670
1,433
0
223
301
173
235
853
399
134
0
0
0
0
0
2
0
0
2
0
0
0
0
91
0
0
21
0
0
0
13,811
13,638
40,567
40,885
37,321
36,960
1,611
1,258
3,035
3,351
1,737
1,242
1,082
1,132
977
1,188
5,922
5,734
4,825
4,880
1,383
-426
681
353
-318
492
-50
-302
167
-55
-196
159
0
-366
0
116
0
366
0
7
0
-64
0
-33
0
222
0
67
0
-43
-37
-366
116
366
7
-64
-33
222
67
-43
7,143
6,951
7,693
6,171
-73
-4,523
202
784
1,005
-768
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35
Net change in federal agency obligations
*
BANKERS ACCEPTANCES
36
37
Outright transactions, net
Repurchase agreements, net
38
Net change in bankers acceptances
39
Total net change in System Open Market
Account
1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): September 1977, 2,500; March 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.
Reserve Banks
1.18
FEDERAL RESERVE BANKS
All
Condition and Federal Reserve Note Statements
Millions of dollars
Wednesday
1980
Account
Dec. 3
End of month
1980
Dec. 24
Dec. 17
Dec. 10
Dec. 31
Oct.
Dec.
Nov.
Consolidated condition statement
ASSETS
11,162
3,368
400
11,161
3,368
394
11,161
3,368
401
11,161
3,368
405
11,161
2,518
397
11,163
3,268
429
11,162
3,368
416
11,161
2,518
397
1,355
0
2,101
0
1,616
0
1,388
0
1,809
0
1,567
0
2,284
0
1,809
0
1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5
Other
Acceptances
6 Held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
U.S. government securities
Bought outright
9
Bills
10
Notes
Bonds
11
12
Total 1
13 Held under repurchase agreements
14 Total U.S. government securities
0
0
327
0
776
566
523
776
8,752
0
8,739
0
8,739
389
8,739
0
8,739
525
8,761
459
8,761
404
8,739
525
39,166
58,618
16,893
114,677
0
114,677
39,481
58,618
16,893
114,992
0
114,992
44,458
58,718
16,893
120,069
2,054
122,123
42,697
58,718
16,893
118,308
0
118,308
43,688
58,718
16,893
119,299
2,029
121,328
44,341
58,703
16,808
119,852
1,630
121,482
43,425
58,618
16,893
118,936
1,876
120,812
43,688
58,718
16,893
119,299
2,029
121,328
15 Total loans and securities
124,784
125,832
133,194
128,435
133,177
132,835
132,784
133,177
10,849
456
11,380
457
14,466
458
17,225
454
12,554
457
8,691
453
12,831
457
12,554
457
3,667
2,978
4,416
2,667
5,086
3,065
5,137
3,376
5,104
3,177
2,750
2,957
3,631
2,451
5,104
3,177
157,664
159,675
171,199
169,561
168,545
162,546
167,100
168,545
122,329
123,062
123,338
124,201
124,241
118,248
121,191
124,241
20,101
3,116
283
391
23,297
1,516
272
466
31,604
2,653
287
403
29,735
2,540
413
379
27,456
3,062
411
617
30,518
1,864
368
338
31,528
2,435
368
478
27,456
3,062
411
617
23,891
25,551
34,947
33,067
31,546
33,088
34,809
31,546
6,983
1,888
6,446
2,030
7,905
2,357
7,552
2,112
8,087
2,265
6,497
2,042
6,039
2,317
8,087
2,265
155,091
157,089
168,547
166,932
166,139
159,875
164,356
166,139
1,199
1,145
229
1,199
1,145
242
1,202
1,145
305
1,202
1,145
282
1,203
1,203
0
1,199
1,145
327
1,199
1,145
400
1,203
1,203
0
157,664
159,675
171,199
169,561
168,545
162,546
167,100
168,545
90,562
90,891
91,227
92,963
91,795
86,150
90,529
91,795
16 Cash items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 Allother
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22 Depository institutions
23 U.S. Treasury—General account
24 Foreign—Official accounts
25
Other
26 Total deposits
27 Deferred availability cash items
28 Other liabilities and accrued dividends 3
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Bank) . . .
Less-held by bank 4
36
Federal Reserve notes, net
37
Collateral for Federal Reserve notes
38 Gold certificate account
39 Special drawing rights certificate account
40
Other eligible assets
41 U.S. government and agency securities
42 Total collateral
139,468
17,139
122,329
140,268
17,206
123,062
140,697
17,359
123,338
140,393
16,192
124,201
140,184
15,943
124,241
137,871
19,623
118,248
138,699
17,508
121,191
140,184
15,943
124,241
11,162
3,368
0
107,799
11,161
3,368
0
108,533
11,161
3,368
108,809
11,161
3,368
0
109,672
11,161
2,518
0
110,562
11,163
3,268
0
103,817
11,162
3,368
0
106,661
11,161
2,518
0
110,562
122,329
123,062
123,338
124,201
124,241
118,248
121,191
124,241
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies and foreign currencies warehoused for the U.S. Treasury. Assets shown in this line are revalued monthly at market exchange rates.
0
3. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank
are exempt from tne collateral requirement.
A12
1.19
Domestic Financial Statistics • January 1981
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
1980
Type and maturity groupings
Dec. 3
Dec. 10
End of month
1980
Dec. 17
Dec. 24
Dec. 31
Oct. 31
Nov. 30
Dec. 31
1 Loans—Total
2 Within 15 days
3
16 days to 90 days
4 91 days to 1 year
1,355
1,313
42
0
2,101
2,041
60
0
1,616
1,573
43
0
1,388
1,364
24
0
1,809
1,757
52
0
1,567
1,550
17
0
2,283
2,272
11
0
1,809
1,757
52
0
5 Acceptances—Total
6 Within 15 days
7
16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
327
327
0
0
0
0
0
0
776
776
0
0
566
566
0
0
523
523
0
0
776
776
0
0
9 U.S. government securities—Total
10 Within 15 days1
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
114,677
5,276
17,230
29,157
34,657
13,355
15,002
114,992
2,185
19,116
30,677
34,657
13,355
15,002
122,123
5,011
22,888
31,210
34,657
13,355
15,002
118,308
4,303
19,542
31,450
34,657
13,354
15,002
121,328
4,780
23,499
30,187
34,505
13,355
15,002
121,482
2,993
24,059
30,293
36,160
13,135
14,842
120,812
5,494
23,086
28,934
34,942
13,354
15,002
121,328
4,780
23,499
30,187
34,505
13,355
15,002
16 Federal agency obligations—Total
17 Within 15 days1
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
8,752
63
541
1,490
4,881
1,092
685
8,739
0
595
1,530
4,837
1,092
685
9,128
389
595
1,530
4,837
1,092
685
8,739
180
415
1,530
4,837
1,092
685
9,264
705
426
1,519
4,837
1,092
685
9,220
63
1,003
1,558
4,771
1,140
685
9,165
556
467
1,495
4,870
1,092
685
9,264
705
426
1,519
4,837
1,092
685
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.
1980
Bank group, or type of customer
1977
1978
1979
July
Aug.
Sept.
Oct.
Nov.
1
Debits to demand deposits (seasonally adjusted)
1 All commercial banks
2 Major New York City banks
3 Other banks
34,322.8
13,860.6
20,462.2
40,297.8
15,008.7
25,289.1
49,750.7
18,512.2
31,238.5
63,088.5
25,538.8
37,549.8
65,385.9
26,705.7
38,680.2
65,111.5
26,103.5
39,008.0
65,645.5
26,034.2
39,611.4
67.780.0
26.822.1
40,957.9
193.0
98.6
775.5
1,067.1
172.8
94.2
570.2
837.2
Debits to savings deposits 2 (not seasonally adjusted)
4
5
6
7
ATS/NOW 3
Business4
Others 5
All accounts
5.5
21.7
152.3
179.5
17.1
56.7
359.7
432.9
83.3
77.4
557.6
718.2
161.6
85.1
633.7
880.4
145.2
84.9
631.1
861.2
175.0
91.4
719.2
985.6
Demand deposit turnover 1 (seasonally adjusted)
8 All commercial banks
9 Major New York City banks
10 Other banks
129.2
503.0
85.9
139.4
541.9
96.8
163.4
646.2
113.2
203.7
844.5
134.4
205.5
859.6
134.7
202.1
818.5
134.4
201.4
779.3'
135.0
209.7
842.2
140.5
Savings deposit turnover 2 (not seasonally adjusted)
11
12
13
14
ATS/NOW 3
Business4
Others 5
All accounts
6.5
4.1
1.5
1.7
1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. 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).
5. Savings accounts other than NOW; business; and, from December 1978, ATS.
7.0
5.1
1.7
1.9
7.8
7.2
2.9
3.3
9.7
8.5
3.6
4.3
8.2
7.9
3.5
4.1
9.4
8.5
4.0
4.7
10.0
8.9
4.3
5.0
8.4
8.6
3.2
4.0
NOTE: Historical data for the period 1970 through June 1977 have been estimated;
these estimates are based in part on the debits series for 233 SMS As, which were
available through June 1977. Back data are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. Debits and turnover data for savings deposits
are not available before July 1977.
Monetary Aggregates
1.21
A13
MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
t
1976
1977
1978
1980
1979
uec.
June
July
Aug.
Sept.
383.7
406.9
1,640.9
1,900.7'
2,295.1
Oct.
Nov.
Seasonally adjusted
MEASURES 1
1
2
3
4
5
305.0
307.7
1,166.7
1,299.7
1,523.5
M-1A
M-1B
M-2
M-3
L2
328.4
332.5
1,294.1
1,460.3
1,715.5
351.6
359.9
1,401.5
1,623.6
1,927.7
369.7
386.4
1,525.5
1,775.5
2,141.1
371.3
390.9
1,585.7
1,844.5
2,229.1
373.7
394.5
1,609.7
1,865.2
2,243.4
379.7
401.6
1,629.2
1,886.3
2,268.2
80.7
224.4
447.7
396.6
118.0
88.7
239.7
486.5
454.9
145.2
97.6
253.9
476.1
533.8
194.7
106.3
263.4
416.7
656.5
219.4
111.0
260.3
381.4
719.6
112.0
261.6
393.8
717.2
113.4
266.3
403.9
717.1
230.7
226.2
225.3
386.7
410.8
1,652.9'
1,917.1'
2,310.1'
388.9
414.0
1,667.2
1,940.8
113.9
269.8
407.9
720.9
115.1
271.6
410.1'
727.9
115.9
273.1
405.1
743.9
229.0
231.9'
241.7
n.a.
COMPONENTS
6
7
8
9
10
Currency
Demand deposits
Savings deposits
Small-denomination time deposits 3
Large-denomination time deposits 4
Not seasonally adjusted
MEASURES 1
11
12
13
14
15
337.2
341.3
1,295.9
360.9
369.3
1,403.7
1,303.8
1,527.1
1,464.5
1,629.2
379.2
396.0
1,527.3
1,780.8
1,718.5
1,931.1
2,143.6
370.1
389.7
1,587.5
1,843.9
2,227.3
82.1
231.3
2.7
90.3
247.0
4.1
99.4
261.5
108.2
271.0
259.0
16.7
19.6
25.3
43.6
413.8
22.5
74.2
383.6
720.4
228.4
313.5
M-1A
M-1B
M-2
M-3
316.1
1,169.1
L2
375.7
396.5
377.5
399.4
1,615.1
1,868.3
1,626.2
1,883.3
2,244.6'
2,264.1
382.9
388.4
412.5'
406.1
1,638.8'
1,653.3'
1,898.4'
2,284.7
1,918.3'
2,309.0
391.7
416.8
1,662.2
1,936.2
n.a.
COMPONENTS
16
17
18
19
>0
11
!2
3
Currency
Demand deposits
Other checkable deposits 5
Overnight RPs and Eurodollars 6
Money market mutual funds
Savings deposits
Small-denomination time deposits 3 . . . .
Large-denomination time deposits 4 . . . .
13.6
18.6
3.4
444.9
393.5
119.7
3.8
483.2
451.3
147.7
8.3
23.9
10.3
472.9
529.8
198.2
1. Composition of the money stock measures is as follows:
M-1A: Averages of daily figures for (1) demand deposits at all commercial banks
>ther than those due to domestic banks, the U.S. government, and foreign banks
,nd official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
he vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automatic transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-lB plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by U.S. residents other than banks at Caribbean branches of member
banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
651.5
223.0
111.1
112.7
263.0
20.8
26.6
80.6
396.7
717.7
223.8
113.7
263.9
21.9
28.9
80.7
404.6
715.6
225.4
113.7
269.2
23.2
30.1
78.2
408.2
719.4
228.7
114.9
273.5
24.1
29.9'
77.4
408.8'
727.9
232.7'
116.7
275.0
25.1
30.3
77.0
403.1
738.1
242.0
2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper. Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Small-denomination time deposits are those issued in amounts of less than
$100,000.
4. Large-denomination time deposits are those issued in amounts of $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institutions.
5. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Caribbean branches of member banks to U.S. nonbank customers.
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.
A14
1.22
Domestic Financial Statistics • January 1981
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS1 AND MEMBER BANK DEPOSITS
Billions of dollars, averages of daily figures
1980
Item
1977
Dec.
1978
Dec.
1979
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov. 2
Seasonally adjusted
1 Total reserves3
36.00
41.16
43.57
44.45
43.96
42.78
40.75
41.52'
41.73'
41.23
2 Nonborrowed reserves
3 Required reserves
4 Monetary base 4
35.43
35.81
127.6
40.29
40.93
142.2
42.10
43.13
153.8
43.43
44.27
158.5
43.58
43.76
158.9
42.39
42.50
158.8
40.09
40.45
158.2
40.21'
41.26'
159.5
40.42'
41.52
160.9
39.17
40.73
160.6
5 Member bank deposits subject to reserve requirements 5
567.6
616.1
644.4
656.8
658.0
658.5
667.8
678.2
684.7'
694.5
6 Time and savings
Demand
7
Private
8
U.S. government
385.6
428.7'
451.1
467.7
467.9
467.0
474.2
482.0
486.7'
494.2
178.5
3.5
185.1
2.2
191.5
1.8
187.3
1.8
188.4
1.7
189.1
2.5
191.5
2.1
194.5
1.8
195.6'
2.4
198.2
2.2
Not seasonally adjusted
9 Monetary base4
129.8
144.6
156.3
157.8
158.6
159.6
158.0
158.9'
160.6
161.4
10 Member bank deposits subject to reserve requirements 5
575.3
624.0
652.6
651.5
656.9
658.2
662.5
675.6
684.2'
694.8
11 Time and savings
Demand
Private
U.S. government
386.4
429.6
452.0
467.7
467.4
466.0
471.8
479.6
485.8'
493.2
185.1
3.8
191.9
2.5
198.6
2.0
182.1
1.7
187.2
2.3
190.0
2.2
189.0
1.7
193.9
2.1
196.4'
2.1
199.7
1.9
12
13
1. Reserves of depository institutions series reflect actual reserve requirement
percentages with no adjustment to eliminate the effect of changes in Regulations
D and M. Before Nov. 13, 1980, the date of implementation of the Monetary
Control Act, only the reserves of commercial banks that were members of the
Federal Reserve System were included in the series. Since that date the series
include the reserves of all depository institutions. In conjunction with the implementation of the act, required reserves of member banks were reduced about $4.3
billion and required reserves of other depository institutions were increased about
$1.4 billion. Effective Oct. 11, 1979, an 8 percentage point marginal reserve requirement was imposed on "Managed Liabilities." This action raised required
reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point marginal reserve requirement was raised to 10 percentage points. In addition the base
upon which the marginal reserve requirement was calculated was reduced. This
action increased required reserves about $1.7 million in the week ending Apr. 2,
1980. Effective May 29, 1980 the marginal reserve requirement was reduced from
10 to 5 percentage points and the base upon which the marginal reserve requirement
was calculated was raised. This action reduced required reserves about $980 million
in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal
reserve requirement on managed liabilities and the 2 percent supplementary reserve
requirement against large time deposits were removed. These actions reduced
required reserves about $3.2 billion.
2. Reserve measures for November reflect increases in required reserves associated with the reduction of weekend avoidance activities of a few large banks. The
reduction in these activities leads to essentially a one-time increase in the average
level of required reserves that need to be held for a given level of deposits entering
the money supply. In November, this increase in required reserves is estimated at
$550 to $600 million.
3. Reserve balances with Federal Reserve Banks plus vault cash at institutions
with required reserve balances plus vault cash equal to required reserves at other
institutions.
4. Includes reserve balances at Federal Reserve Banks in the current week plus
vault cash held two weeks earlier used to satisfy reserve requirements at all
depository institutions plus currency outside the U.S. Treasury, Federal Reserve
Banks, the vaults of depository institutions, and surplus vault cash at depository
institutions.
5. 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 from domestic commercial banks.
NOTE. Latest monthly and weekly figures are available from the Board's H.3(502)
statistical release. Back data and estimates of the impact on required reserves and
changes in reserve requirements are available from the Banking Section, Division
of Research and Statistics.
Monetary Aggregates
1.23
LOANS AND SECURITIES
A15
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
Category
1977
1978
Dec.
1980
1979
uec.
Oct.
1977
Nov.
1978
Dec.
Dec.
Seasonally adjusted
1 Total loans and securities2
891.1
2 U.S. Treasury securities
3 Other securities
4 Total loans and leases2
5 Commercial and industrial loans
6
Real estate loans
7 Loans to individuals
8 Security loans
9
Loans to nonbank financial institutions .
10 Agricultural loans
11 Lease financing receivables
12 All other loans
99.5
159.6
632.1
211.25
175.2s
138.2
20.6
25.85
25.8
5.8
29.5
MEMO:
13 Total loans and securities plus loans sold 2 ' 9
2 9
14 Total loans plus loans sold 15 Total loans sold to affiliates 9
16 Commercial and industrial loans plus loans
sold9
17 Commercial and industrial loans sold9 . .
18 Acceptances held
19 Other commercial and industrial loans ..
20
To U.S. addressees 11
21
To non-U.S. addressees
22 Loans to foreign banks
23 Loans to commercial banks in the
United States
895.9
Oct.
Nov.
Not seasonally adjusted
1,014.33
1,132.54
1,204.5
1,221.2
899.1
1,023.83
1,143.04
1,206.3
1,223.3
93.4
173.13
747.83
246.56
210.5
164.9
19.4
27.17
28.2
7.4
43.63
93.8
191.5
847.24
290.54
242.44
182.7
18.3
30.34
31.0
9.5
42.6
107.9
210.3
886.2
312.0
256.1
171.4
15.9
29.5
33.5
10.9
56.9
109.3
212.5
899.4
318.4
258.3
171.6
16.9
30.2
33.9
100.7
160.2
638.3
212.6s
175.5s
139.0
22.0
26.3 s
25.7
5.8
31.5
94.6
173.93
755.43
248.26
210.9
165.9
20.7
27.67
28.1
7.4
46.63
95.0
192.3
855.74
292.44
242.94
183.8
19.6
30.84
30.8
9.5
45.9
105.5
210.6
890.2
311.8
257.3
173.3
16.1
29.6
33.8
10.9
57.3
108.2
212.7
902.4
318.4
259.6
173.0
17.2
30.3
34.0
1,207.2
1,223.9
903.9
1,027.63
1,145.74'8
1,018.13
1,135.34'8
11.0
59.1
11.0
58.9
1,209.0
1,226.0
636.9
4.8
751.63
3.8
850.00 2.8«
889.0
2.8
902.1
2.6
643.0
4.8
759.23
3.8
858.44-8
2.8 8
893.0
2.8
905.1
2.6
213.95
2.7
7.5
203.75
193.8s
9.9 s
13.5
248.56-10
1.910
6.8
239.7
226.6
13.1
21.2
292.34-8
1.8«
8.5
282.0
263.2
18.8
18.7
313.8
1.8
9.2
302.9
281.4
21.5
23.9
320.1
1.7
8.7
309.7
287.6
22.1
24.6
215.3s
2.7
8.6
203.9 s
193.7s
10.3s
14.6
250.16.io
1.910
7.5
240.9
226.5
14.4
23.0
294.24-8
1.88
9.4
283.1
263.2
19.8
20.1
313.6
1.8
9.0
302.8
281.6
21.2
23.4
320.1
1.7
9.1
309.3
287.1
22.2
23.9
77.8
97.7
n.a.
56.9
60.3
81.9
94.9
n.a.
54.1
57.3
4 8
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 securities 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 securities
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 $0.2 billion and nonbank financial loans $0.1 billion; real estate loans were
increased $0.3 billion.
6. As of Dec. 31,1978, commercial and industrial loans were reduced $0.1 billion
as a result of reclassifications.
1980
1979
Dec.
7. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the
result of reclassification.
8. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
9. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. 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.
11. 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.
A16
1.24
Domestic Financial Statistics • January 1981
MAJOR NONDEPOSIT F U N D S OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
December outstanding
Outstanding in 1980
Source
1977
1
2
3
4
5
6
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other borrowings from nonbanks
Seasonally adjusted 3
Not seasonally adjusted
Net Eurodollar borrowings, not seasonally adjusted . . .
Loans sold to affiliates, not seasonally adjusted 4 - 5
1978
1979
Mar.
Apr.
May
June
July'
124.2
121.1
119.9'
123.0'
114.1'
114.2'
112.2
116.4
107.3
110.3
112.0
112.5
115.4
116.4
n.a.
n.a.
Aug.'
Sept.'
Oct.
Nov.
61.8
60.4
85.4
84.4
118.8
117.4
133.3'
130.2'
58.4
57.0
-1.3
4.8
74.8
73.8
6.8
3.8
88.0
86.5
28.1
2.8
97.9
94.8
32.8'
2.6
94.7
91.7
26.9'
2.6
94.2
97.4
23.0'
2.6
96.7'
96.8'
14.6'
2.8
98.5
102.7
10.9
2.8
94.0
97.1
10.3
2.9
100.2
100.8
8.9
2.9
103.2
104.2
9.5
2.8
n.a.
n.a.
6.7
2.6
-12.5
21.1
8.6
-10.2
24.9
14.7
6.5
22.8
29.3
9.3
23.6
33.0'
5.9'
24.5'
30.4
2.6'
27.4'
30.0
-5.4'
30.1'
24.7
-8.4
32.7
24.3
-10.3
35.8
25.5
-14.5
38.2
23.7
-12.9
38.4
25.5
-14.3
36.9
22.6
11.1
10.3
21.4
36.3
35.1
4.4
5.1
162.0
165.4
17.0
14.2
31.2
44.8
43.6
8.7
10.3
213.0
217.9
21.6
28.9
50.5
49.2
47.9
8.1
9.6
227.7
233.0
23.5'
31.9
55.6
45.0
44.1
7.5
7.8
237.1
239.2
20.9
28.4'
49.4
41.5
40.6
8.6
9.0
240.3
238.4
19.9
28.5
48.4
45.0
44.7
8.6
10.0
237.0
234.9
19.3
30.8
50.1
50.4
50.2
10.7
9.2
233.1
229.2
20.6
30.9
51.6
52.7
54.2
11.6
9.1
233.4
231.1
23.3
30.3
53.6
51.4
53.8
12.5
14.1
237.9
235.8
22.4
29.3
51.6
54.8
54.6
13.9
12.7
240.4
239.9
21.0
31.8
52.8
53.7
55.7
7.1
6.9
248.2
249.7
MEMO
7 Domestic chartered banks net positions with own foreign branches, not seasonally adjusted 6
8
Gross due from balances
Gross due to balances
9
10 Foreign-related institutions net positions with directly
related institutions, not seasonally adjusted 7
11 Gross due from balances
12 Gross due to balances
13 Security RP borrowings, seasonally adjusted 8
14 Not seasonally adjusted
15 U.S. Treasury demand balances, seasonally adjusted 9 .
16 Not seasonally adjusted
17 Time deposits, $100,000 or more, seasonally adjusted 10
18 Not seasonally adjusted
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.
20.5
28.4
48.8
40.1
42.1
9.4
8.4
242.0
240.1
4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.
6. Includes averages of daily figures for member banks and quarterly call report
figures for nonmember banks.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages of daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.
Commercial Banks
1.25
ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
A17
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1980
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 1
1 Loans and investments, excluding
interbank
2 Loans, excluding interbank
3
Commercial and industrial
4
Other
5 U.S. Treasury securities
6 Other securities
7 Cash assets, total
8
Currency and coin
9
Reserves with Federal Reserve Banks
10 Balances with depository institutions
11 Cash items in process of collection ..
12 Other assets2
1,085.6'
799.0'
256.2
542.9
93.6
192.9
1,087.2'
799.0'
258.3
540.7
94.2
193.9
1,089.5'
798.8'
259.2
539.6
93.5
197.2
1,083.1'
789.7'
256.0
533.7
93.9
199.5
1,086.6'
790.4'
256.8
533.6
95.2
201.0
1,091.5'
790.6'
256.4
534.1
97.6
203.3
1,104.7'
799.1'
258.7
540.3
100.3
205.3
1,115.1'
806.9'
262.9
543.9
102.1
206.1
1,132.3'
819.5'
268.2
551.3
103.3
209.4
1,148.0'
830.5'
274.8
555.7
106.0
211.5
149.9
17.1
30.7
43.4
58.7
153.8
16.8
34.2
43.1
59.8
168.2
16.8
33.2
49.7
68.6
172.4
17.8
37.9
47.9
68.9
150.4
17.4
29.5
45.4
58.0
154.1
17.7
32.1
44.7
59.6
148.7
18.4
28.9
45.6
55.8
156.6
18.0
31.2
46.6
60.9
156.0
18.5
31.6
47.0
58.8
175.7
17.1
30.3
56.2
72.2
123.0'
121.7'
135.7'
140.1'
144.0'
143.8'
150.4'
154.6'
154.9'
151.5'
1,174.5
849.3
280.7
568.6
110.0
215.1
194.4
20.2
28.2
63.0
83.0
166.8
13 Total assets/total liabilities and capital ..
1,358.4
1,362.7
1,393.5
1,395.7
1,381.0
1,389.4
1,403.8
1,426.3
1,443.2
1,475.2
1,535.6
14 Deposits
15 Demand
16 Savings
17 Time
1,028.9
358.7
199.9
470.3
1,032.1
354.5
196.5
481.1
1,060.0
377.4
189.3
493.4
1,057.3
370.2
192.3
494.8
1,044.7
358.0
197.8
488.9
1,050.1
363.6
205.7
480.8
1,059.5
363.4
208.7
487.4
1,074.9
370.0
209.4
495.5
1,091.1
376.3
211.4
503.5
1,124.3
393.4
210.0
520.9
1,185.4
432.7
201.8
550.9
145.1
81.6
102.9
142.1
84.2
104.2
147.0
81.2
105.2
154.1
78.5
105.7
152.5
76.6
107.1
158.6
74.8
106.0
165.3
76.4
109.6
163.4
75.6
113.1
159.0
79.0
112.9
156.8
80.0
113.5
8.1
14,609
9.4
14,626
14.3
14,629
5.1
14,639
13.1
14,646
7.6
14,658
15.2
14,678
11.5
14,760
4.4
14,692
9.5
14,693
1,152.5'
862.7'
298.5
564.2
95.5
194.4
1,156.6'
865.0'
301.7
563.4
96.2
195.4
1,158.8'
864.7'
302.0
562.7
95.5
198.6
1,151.2'
854.4'
298.1
556.2
95.9
201.0
1,157.1'
857.4'
297.8
559.6
97.2
202.4
1,192.4'
877.0'
307.1
573.1
104.5
207.7
168.8
17.1
31.3
60.5
60.0
174.0
16.8
35.0
61.1
61.2
187.3
16.8
33.9
66.6
69.9
190.7
17.8
38.7
63.8
70.4
172.0
17.4
30.3
64.6
59.7
179.8
18.0
31.7
67.6
62.5
n. a.
n. a.
n. a.
18 Borrowings
19 Other liabilities
20 Residual (assets less liabilities)
160.1
76.2
108.0 -
MEMO:
21 U.S. Treasury note balances included in
borrowing
22 Number of banks
8.7
14,666
ALL COMMERCIAL BANKING
INSTITUTIONS3
23 Loans and investments, excluding
interbank
24 Loans, excluding interbank
25 Commercial and industrial
26
Other
27 U.S. Treasury securities
28 Other securities
29 Cash assets, total
30 Currency and coin
31 Reserves with Federal Reserve Banks
32 Balances with depository institutions
33 Cash items in process of collection ..
34 Other assets2
165.1'
166.8'
181.1'
186.1'
190.3'
n. a.
n. a.
204.4'
35 Total assets/total liabilities and capital ..
1,486.5
1,497.5
1,527.2
1,528.0
1,519.4
1,576.6
36 Deposits
37
Demand
38 Savings
39 Time
1,070.0
376.8
200.3
492.9
1,073.5
373.6
196.7
503.2
1,101.1
396.6
189.5
515.0
1,097.1
387.7
192.6
516.9
1,088.7
379.1
198.2
511.4
1,122.2
391.2
209.8
521.2
182.9
128.4
105.2
186.5
130.9
106.5
190.8
127.8
107.4
196.3
126.6
108.1
197.9
124.1
108.7
212.6
130.6
111.2
8.1
14,978
9.4
14,995
14.3
15,004
5.1
15,016
13.1
15,019
15.2
15,069
40 Borrowings
41 Other liabilities
42 Residual (assets less liabilities)
MEMO:
43 U.S. Treasury note balances included in
borrowing
44 Number of banks
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. Other assets include loans to U.S. commercial banks.
3. 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.
A18
1.26
Domestic Financial Statistics • January 1981
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
1980
VTov. 5
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depository institutions
4 Total loans and securities
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
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 .
Nov. 12
Nov. 19
Nov 26
Dec. 3P
Dec. 10 P
Dec. 17p
Dec. 24P
Dec. 31P
60,774
62,167
53,195
58,074
57,443
53,026
59,930
58,175
66,468
24,903
35,103
24,449
31,660
18,245
34,215
18,702
33,679
19,632
24,940
18,353
28,825
19,448
36,905
19,693
34,018
21,643
34,316
544,001
545,182
542,085
543,367
554,145
553,585
556,117
555,787
563,622
38,294
4,360
33,933
8,528
21,981
3,424
76,722
3,142
73,580
15,907
54,987
7,354
47,633
2,686
38,397
4,380
34,017
8,611
22,011
3,395
77,274
3,458
73,815
15,939
55,174
7,432
47,742
2,702
38,741
4,689
34,052
8,615
22,042
3,395
76,907
2,967
73,940
15,889
55,288
7,434
47,854
2,763
38,506
4,354
34,153
8,745
22,053
3,355
76,756
2,745
74,011
15,855
55,398
7,406
47,991
2,758
39,409
4,987
34,422
9,161
21,947
3,314
77,111
3,132
73,978
15,814
55,367
7,467
47,900
2,798
39,557
5,175
34,382
9,202
21,846
3,334
77,764
3,781
73,982
15,802
55,400
7,452
47,948
2,780
39,181
4,788
34,392
9,167
21,821
3,404
77,311
3,018
74,292
16,027
55,512
7,475
48,037
2,754
37,985
3,883
34,102
9,098
21,691
3,313
77,809
3,067
74,742
16,221
55,729
7,486
48,243
2,792
39,566
4,300
35,265
10,245
21,662
3,358
78,496
3,355
75,141
16,235
56,095
7,344
48,751
2,810
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 paper . .
26
All other
27
U.S. addressees
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 purchasing and carrying securities 2
37
To finance agricultural production
38
Allother
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets
27,267
20,448
4,660
2,158
414,517
169,140
4,692
164,449
157,948
6,500
109,743
71,073
28,163
19,944
5,252
2,968
414,180
169,593
4,713
164,880
158,286
6,593
110,164
70,955
24,858
17,640
5,307
1,910
414,426
169,456
4,313
165,142
158,351
6,791
110,493
71,042
23,505
16,741
4,663
2,100
417,425
171,395
4,374
167,022
160,132
6,890
110,602
71,226
30,179
22,116
5,621
2,442
420,261
172,260
4,104
168,157
161,196
6,961
110,743
71,301
29,115
20,207
6,092
2,816
420,008
172,761
3,952
168,809
161,954
6,855
111,035
71,492
28,063
20,650
5,540
1,873
424,408
174,017
3,709
170,308
163,223
7,085
111,315
71,836
27,469
19,387
6,054
2,028
425,307
172,582
3,696
168,885
161,826
7,060
111,482
72,385
27,761
19,396
6,377
1,988
430,095
174,570
4,183
170,387
163,104
7,283
111,675
72,511
3,877
8,449
9,796
15,540
5,613
2,130
5,497
13,658
7,078
5,722
401,718
9,013
81,252
4,197
8,455
9,056
15,578
5,466
2,115
5,466
13,134
7,076
5,755
401,349
9,030
82,535
3,812
8,374
8,907
15,691
6,034
2,164
5,469
12,982
7,081
5,766
401,579
9,062
80,828
4,074
8,333
9,061
15,398
5,874
2,148
5,369
13,943
7,053
5,772
404,600
9,078
81,588
4,142
8,596
9,276
15,566
6,795
2,155
5,331
14,094
7,004
5,811
407,446
9,094
83,058
3,568
8,634
9,597
15,513
6,251
2,185
5,282
13,689
7,041
5,818
407,149
9,091
82,811
4,245
8,807
10,446
15,883
6,471
2,198
5,284
13,906
7,040
5,806
411,562
9,103
83,210
4,938
9,535
9,977
15,638
6,144
2,168
5,300
15,157
7,034
5,750
412,523
9,143
84,574
4,897
9,699
10,119
15,904
7,811
2,152
5,404
15,352
6,650
5,646
417,800
9,279
87,930
44 Total assets
755,047
755,022
737,629
744,488
748,312
745,691
764,714
761,391
783,259
218,474
868
146,716
5,088
2,927
44,183
7,975
2,261
8,455
291,389
76,550
71,714
219,874
873
149,846
4,569
1,359
44,329
8,929
1,933
8,036
294,984
75,748
70,958
197,063
618
137,070
4,674
2,883
33,869
8,810
1,424
7,716
297,515
75,349
70,548
201,805
607
142,094
4,922
2,143
34,419
8,139
1,585
7,895
300,364
74,645
69,917
208,754
718
144,784
4,804
2,964
36,789
7,661
2,149
8,884
300,976
74,965
70,286
200,317
602
141,132
4,644
2,078
33,148
8,797
1,870
8,046
302,899
74,319
69,728
208,368
619
145,592
4,807
1,248
37,358
7,931
1,477
9,336
305,916
73,386
68,990
208,122
700
145,212
4,888
1,457
37,587
8,883
2,019
7,376
311,027
71,631
67,403
228,492
842
158,315
5,905
1,104
41,606
9,121
2,417
9,182
313,642
72,216
67,959
4,142
674
20
214,839
182,735
19,521
328
5,805
4,102
664
24
219,236
186,727
19,767
322
5,998
4,066
709
25
222,166
189,201
20,123
308
6,097
4,052
655
22
225,719
192,594
20,237
303
6,261
4,011
649
19
226,011
193,252
19,873
291
6,285
3,973
598
20
228,579
195,445
19,818
292
6,614
3,771
605
21
232,530
198,530
19,898
270
7,454
3,633
568
26
239,397
203,890
20,435
301
8,135
3,605
628
24
241,426
205,777
20,244
300
8,430
6,451
6,422
6,437
6,324
6,309
6,411
6,377
6,636
6,677
2,365
774
132,295
1,401
278
129,418
1,638
1,901
128,318
2,975
2,839
124,449
740
432
126,743
1,322
173
128,836
725
5,590
129,345
656
7,022
122,450
1,055
6,605
119,911
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
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
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations . . .
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and
banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated notes and
debentures
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
60,207
59,500
61,869
62,620
60,784
62,387
65,127
62,570
63,387
705,504
705,454
688,304
695,052
698,430
695,934
715,071
711,847
733,092
49,543
49,568
49,325
49,436
49,881
49,757
49,643
49,544
50,166
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion
or more on Dec. 31, 1977, see table 1.13.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.27
A19
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
1980
Account
1 Cash items in process of collection
2 Demand deposits due from banks in the United States . . .
3 All other cash and due from depository institutions
4 Total loans and securities
Securities
U.S. Treasury securities
6
Trading account
7
Investment account, by maturity
8
One year or less
9
Over one through five years
in
Over five years
ii Other securities
Trading account
i?
Investment account
13
14
U.S. government agencies
States and political subdivision, by maturity
15
16
One year or less
Over one year
17
Other bonds, corporate stocks and securities
18
Dec. 17 P
Dec. 31p
Nov. 19
Nov. 26
57,905
24,236
32,746
58,552
23,763
29,320
50,530
17,675
31,886
54,967
18,144
31,561
54,621
19,036
23,151
50,465
17,797
26,935
57,108
18,845
34,599
55,174
18,858
31,590
63,071
20,889
31,838
507,419
508,958
505,741
506,792
517,051
516,512
518,944
518,658
525,527
35,628
4,293
31,334
7,996
20,278
3,060
70,365
3,049
67,315
14,699
50,101
6,581
43,520
2,515
35,719
4,297
31,422
8,085
20,306
3,031
70,909
3,391
67,518
14,718
50,266
6,648
43,618
2,534
36,055
4,616
31,438
8,080
20,327
3,031
70,514
2,894
67,620
14,665
50,360
6,638
43,722
2,595
35,824
4,296
31,527
8,200
20,327
3,000
70,352
2,684
67,668
14,624
50,456
6,607
43,849
2,588
36,618
4,926
31,692
8,491
20,240
2,960
70,725
3,075
67,650
14,585
50,440
6,675
43,765
2,625
36,784
5,140
31,644
8,516
20,152
2,976
71,335
3,714
67,621
14,547
50,466
6,665
43,801
2,607
36,403
4,747
31,655
8,484
20,125
3,046
70,827
2,939
67,888
14,745
50,562
6,678
43,884
2,580
35,190
3,842
31,348
8,410
19,996
2,941
71,289
2,999
68,290
14,895
50,777
6,690
44,087
2,618
36,605
4,252
32,352
9,464
19,912
2,977
71,951
3,282
68,669
14,902
51,130
6,529
44,601
2,637
Dec. 3P
Dec. 10P
Dec. 24P
Nov. 12
Nov. 5
Loans
19 Federal funds sold 1
70
To commercial banks
71
To nonbank brokers and dealers in securities
77
To others
73 Other loans, gross
Commercial and industrial
74
75
Bankers acceptances and commercial paper
All other
26
U.S. addressees
27
Non-U.S. addressees
28
Real estate
29
30
To individuals for personal expenditures
To financial institutions
Commercial banks in the United States
31
Banks in foreign countries
32
Sales finance, personal finance companies, etc
33
Other financial institutions
34
35
To nonbank brokers and dealers in securities
36
To others for purchasing and carrying securities 2
37
To finance agricultural production
Allother
38
39 LESS: Unearned income
Loan loss reserve
40
41 Other loans, net
42 Lease financing receivables
43 All other assets
23,987
17,514
4,342
2,130
389,296
160,542
4,472
156,070
149,635
6,435
103,448
62,702
25,297
17,468
4,895
2,934
388,920
160,980
4,485
156,496
149,968
6,528
103,852
62,606
21,998
15,101
5,027
1,870
389,074
160,781
4,086
156,695
149,970
6,725
104,175
62,672
20,167
14,264
4,288
2,066
391,879
162,649
4,145
158,504
151,678
6,826
104,294
62,805
26,768
19,228
5,143
2,398
394,780
163,502
3,885
159,617
152,718
6,898
104,408
62,865
25,802
17,317
5,705
2,780
394,472
164,025
3,754
160,271
153,477
6,794
104,676
63,013
24,895
17,937
5,131
1,827
398,687
165,193
3,504
161,689
154,666
7,023
104,931
63,318
24,578
17,031
5,550
1,996
399,414
163,760
3,495
160,264
153,266
6,998
105,106
63,791
24,330
16,494
5,879
1,957
403,970
165,614
3,983
161,631
154,409
7,222
105,273
63,839
3,754
8,372
9,632
15,136
5,527
1,885
5,333
12,964
6,466
5,391
377,440
8,752
78,923
4,075
8,344
8,881
15,165
5,384
1,873
5,301
12,458
6,463
5,424
377,033
8,768
80,320
3,684
8,300
8,715
15,272
5,954
1,926
5,305
12,292
6,466
5,434
377,174
8,800
78,724
3,892
8,257
8,868
14,982
5,804
1,903
5,212
13,212
6,442
5,437
379,999
8,814
79,394
4,018
8,523
9,092
15,158
6,724
1,910
5,175
13,405
6,365
5,475
382,940
8,827
80,822
3,437
8,557
9,413
15,112
6,175
1,937
5,128
12,999
6,399
5,481
382,591
8,824
80,727
4,126
8,721
10,274
15,471
6,380
1,955
5,130
13,188
6,396
5,472
386,819
8,836
81,027
4,783
9,454
9,796
15,233
6,058
1,922
5,143
14,367
6,395
5,417
387,601
8,876
82,378
4,767
9,628
9,937
15,503
7,683
1,907
5,245
14,573
6,018
5,311
392,641
9,007
85,444
44 Total assets
709,981
709,682
693,356
699,674
703,509
701,260
719,358
715,535
735,778
205,451
829
136,612
4,489
2,654
42,644
7,854
2,259
8,109
271,230
70,762
66,308
3,826
607
20
200,468
170,459
17,678
313
5,566
6,451
206,548
838
139,312
3,991
1,243
42,714
8,829
1,916
7,705
274,790
70,032
65,614
3,786
607
24
204,758
174,368
17,908
306
5,753
6,422
184,872
588
127,439
4,094
2,672
32,507
8,728
1,422
7,423
277,141
69,676
65,248
3,755
649
25
207,465
176,679
18,218
293
5,838
6,437
189,184
577
131,981
4,357
1,988
33,050
8,059
1,566
7,604
279,865
69,005
64,642
3,739
602
21
210,860
179,911
18,345
287
5,993
6,324
195,988
687
134,779
4,283
2,724
35,252
7,573
2,119
8,571
280,513
69,312
64,996
3,701
595
19
211,202
180,621
17,975
276
6,020
6,309
188,059
574
131,272
4,145
1,929
31,850
8,706
1,854
7,729
282,393
68,708
64,482
3,658
547
20
213,685
182,729
17,929
277
6,340
6,411
195,674
596
135,451
4,265
1,098
35,959
7,819
1,472
9,013
285,320
67,843
63,803
3,475
544
21
217,476
185,648
18,026
255
7,170
6,377
195,125
671
134,760
4,251
1,330
36,261
8,800
2,002
7,049
290,214
66,227
62,333
3,351
517
26
223,987
190,718
18,525
286
7,823
6,636
214,215
810
147,108
5,268
988
39,955
9,006
2,412
8,669
292,654
66,756
62,850
3,317
566
24
225,898
192,548
18,282
284
8,107
6,677
2,352
710
125,112
58,812
1,154
230
122,523
58,114
1,528
1,730
121,532
60,493
2,797
2,640
117,819
61,203
603
360
120,033
59,386
1,298
134
121,926
60,966
640
5,223
122,403
63,725
543
6,527
115,692
61,155
972
6,142
113,105
61,809
663,667
663,361
647,295
653,508
656,884
654,776
672,984
669,256
688,897
46,314
46,321
46,060
46,165
46,625
46,484
46,374
46,279
46,881
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
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
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit . . .
Domestic governmental units
Allother
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 3
Other liabilities and subordinated notes and debentures
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
A20
1.28
Domestic Financial Statistics • January 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1980
Nov. 5
1 Cash items in process of collection
2 Demand deposits due from banks in the United States . .
3 All other cash and due from depository institutions
4 Total loans and securities 1
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Securities
U.S. Treasury securities 2
Trading account 2
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities 2
Trading account 2
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
Allother
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate
30
To individuals for personal expenditures
31 To financial institutions
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 purchasing and carrying securities 4
37
To finance agricultural production
38
Allother
39 LESS: Unearned income
40
Loan loss reserve
41 Other loans, net
42 Lease financing receivables
43 All other assets 5
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
Deposits
Demand deposits
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
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for profit . .
Domestic governmental units
Allother
Time
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Commercial banks in the United States
Foreign governments, official institutions, and banks
Liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 6
Other liabilities and subordinated notes and debentures .
70 Total liabilities
71 Residual (total assets minus total liabilities) 4
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.
Nov. 12
Nov. 19
Nov. 26
Dec. 3P
Dec. 1 0 P
Dec. HP
Dec. 24P
Dec. 31 P
22,246
18,887
9,670
22,704
18,161
8,744
18,836
12,747
8,784
20,101
12,558
9,183
21,348
13,340
6,480
20,636
12,850
7,223
23,140
13,237
11,737
19,879
12,343
8,528
24,782
14,724
7,742
122,382
122,470
122,274
122,367
125,853
124,994
125,774
126,070
129,259
8,097
1,323
6,236
538
8,169
1,340
6,291
538
8,237
1,366
6,332
538
8,292
1,387
6,357
549
8,440
1,402
6,500
538
8,446
1,437
6,471
538
8,474
1,442
6,494
539
8,320
1,438
6,343
539
8,418
1,454
6,412
551
13,791
2,396
10,837
1,789
9,048
558
13,860
2,396
10,895
1,846
9,050
569
13,827
2,342
10,900
1,852
9,048
586
13,782
2,309
10,892
1,830
9,061
582
13,803
2,312
10,885
1,835
9,050
606
13,809
2,307
10,894
1,822
9,072
608
13,802
2,302
10,890
1,809
9,081
611
13,859
2,301
10,946
1,825
9,121
613
13,676
2,305
10,750
1,664
9,087
620
7,467
4,061
2,102
1,303
95,938
49,593
1,036
48,557
46,438
2,119
14,404
9,038
8,115
4,553
2,398
1,163
95,260
49,831
875
48,956
46,800
2,156
14,472
9,050
7,575
3,868
2,596
1,112
95,590
49,754
931
48,822
46,632
2,190
14,559
9,060
6,967
3,641
2,193
1,133
96,281
50,418
885
49,533
47,369
2,164
14,559
9,084
8,831
5,399
2,317
1,116
97,737
51,105
894
50,211
47,976
2,235
14,573
9,148
7,889
4,044
2,888
957
97,824
51,780
832
50,948
48,682
2,266
14,611
9,187
6,790
3,292
2,747
751
99,672
51,864
594
51,269
48,884
2,385
14,651
9,242
7,189
3,555
2,676
957
99,667
50,754
537
50,217
47,854
2,364
14,741
9,318
7,284
3,461
3,061
762
102,815
51,836
767
51,068
48,558
2,510
14,826
9,369
1,328
4,339
4,379
4,523
3,380
426
534
3,994
1,124
1,787
93,027
1,682
31,736
1,780
4,019
3,858
4,405
3,023
400
531
3,890
1,131
1,803
92,326
1,684
33,384
1,519
4,172
3,665
4,586
3,391
427
533
3,924
1,144
1,812
92,634
1,694
31,724
1,542
4,029
3,821
4,392
3,408
403
516
4,108
1,149
1,807
93,325
1,696
32,462
1,413
4,110
3,836
4,453
3,932
413
506
4,247
1,134
1,825
94,778
1,705
33,346
1,218
4,056
4,141
4,486
3,478
428
492
3,948
1,139
1,836
94,848
1,705
33,746
1,607
4,221
4,718
4,668
3,628
460
481
4,132
1,140
1,824
96,708
1,710
33,707
2,043
4,780
4,371
4,690
3,394
420
461
4,694
1,164
1,801
96,702
1,711
33,741
1,768
5,015
4,395
4,848
4,838
405
435
5,079
1,149
1,783
99,882
1,758
37,241
206,604
207,147
196,060
198,367
202,072
201,153
209,305
202,273
215,506
75,142
402
34,531
374
393
27,485
6,201
1,992
3,762
51,900
10,003
9,512
348
138
5
41,897
35,270
1,784
26
1,970
2,846
75,726
439
34,242
395
207
28,033
7,172
1,611
3,628
53,307
9,980
9,463
356
151
8
43,328
36,571
1,823
29
2,044
2,860
63,335
299
31,258
366
672
18,961
7,063
1,111
3,603
54,057
9,936
9,407
353
168
8
44,121
37,379
1,845
26
2,015
2,856
64,681
270
32,986
379
524
19,411
6,256
1,290
3,566
54,843
9,866
9,350
366
143
7
44,977
38,288
1,773
22
2,038
2,856
68,558
339
34,564
414
694
20,534
5,947
1,836
4,230
54,851
9,858
9,379
350
124
5
44,992
38,381
1,781
22
1,992
2,817
66,066
285
33,380
353
484
19,227
6,949
1,487
3,900
54,910
9,788
9,325
341
117
6
45,122
38,500
1,763
21
1,993
2,845
69,820
290
35,004
330
294
21,818
6,080
1,186
4,818
55,866
9,666
9,239
320
99
7
46,201
39,570
1,703
21
2,149
2,758
67,066
350
33,694
421
333
20,592
6,868
1,645
3,162
56,994
9,480
9,063
311
98
8
47,514
40,761
1,600
14
2,278
2,860
76,854
436
38,570
578
173
23,832
7,149
2,032
4,083
57,318
9,547
9,124
308
107
8
47,770
41,064
1,436
14
2,370
2,886
2
40,275
23,911
1
40,083
22,652
900
319
38,058
24,060
1,725
633
37,555
23,703
31
39,706
23,346
39,391
24,435
1,703
40,165
26,201
1,941
37,392
23,538
475
1,831
37,977
25,296
191,231
191,769
180,729
183,140
186,492
185,617
193,755
186,931
199,751
15,374
15,379
15,330
15,227
15,580
15,536
15,550
15,341
15,755
815
5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase
4.This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
Weekly Reporting Banks
1.29
LARGE WEEKLY REPORTING COMMERCIAL BANKS
A21
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1980
Account
Nov. 5
Nov. 12
Nov. 19
Nov. 26
Dec.
3P
Dec. 10p
Dec. 17 P
Dec. 24P
Dec. 31 P
BANKS WITH ASSETS OF $ 7 5 0 MILLION OR M O R E
1 Total loans (grossl and securities adjusted 1
2 Total loans (gross) adjusted 1
3 Demand deposits adjusted 2
532,474
417,458
110,589
533,873
418,202
112,018
533,479
417,831
107,116
535,376
420,114
107,169
540,702
424,182
111,559
542,669
425,348
112,065
544,068
427,576
109,831
544,246
428,451
110,902
551,625
433,563
119,314
4 Time deposits in accounts of $100,000 or more
5 Negotiable CDs
6
Other time deposits
139,328
100,475
38,853
142,411
102,792
39,619
144,967
104,777
40,190
148,024
107,450
40,574
147,896
107,400
40,496
150,091
109,049
41,042
153,003
111,327
41,676
158,514
115,608
42,906
159,350
116,597
42,753
2,733
1,734
999
2,597
1,704
892
2,577
1,700
877
2,650
1,744
906
2,657
1,742
915
2,668
1,768
900
2,712
1,767
945
2,736
1,791
946
2,744
1,795
949
10
11
Total loans (gross) and securities adjusted 1
Total loans (gross) adjusted 1
12 Demand deposits adjusted 2
498,007
392,014
102,248
499,302
392,674
104,040
498,857
392,288
99,163
500,516
394,341
99,178
505,646
398,303
103,390
507,638
399,519
103,815
508,749
401,519
101,508
508,656
402,177
102,359
515,595
407,039
110,201
13 Time deposits in accounts of $100,000 or more
14 Negotiable CDs
15 Other time deposits
130,971
94,467
36,504
134,016
96,728
37,287
136,405
98,615
37,790
139,328
101,177
38,151
139,274
101,220
38,054
141,428
102,868
38,559
144,234
105,092
39,143
149,499
109,197
40,302
150,274
110,144
40,130
2,688
1,708
980
2,554
1,678
876
2,534
1,675
859
2,606
1,720
887
2,614
1,719
895
2,630
1,746
884
2,669
1,744
925
2,693
1,768
925
2,706
1,778
928
119,904
98,016
25,017
119,071
97,042
24,782
119,843
97,778
24,865
120,140
98,065
24,645
122,000
99,756
25,982
122,706
100,451
25,719
123,839
101,563
24,568
123,437
101,258
26,261
126,963
104,870
28,067
32,895
24,383
8,512
34,075
25,428
8,647
34,784
26,010
8,773
35,569
26,837
8,732
35,549
26,655
8,894
35,632
26,657
8,975
36,529
27,457
9,072
37,720
28,583
9,137
37,701
28,649
9,052
7 Loans sold outright to affiliates 3
8 Commercial and industrial
9 Other
BANKS WITH ASSETS OF $ 1 BILLION OR M O R E
16 Loans sold outright to affiliates 3
17 Commercial and industrial
18 Other
BANKS IN NEW YORK CITY
19 Total loans (gross) and securities adjusted 1 - 4
20 Total loans (gross) adjusted 1
21 Demand deposits adjusted 2
22 Time deposits in accounts of $100,000 or more
23 Negotiable CDs
24 Other time deposits
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,
4. Excludes trading account securities.
A22
1.30
DomesticNonfinancialStatistics • January 1981
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Domestic Classified Commercial and Industrial Loans
Millions of dollars
Outstanding
1980
Industry classification
Net change during
1980
Aug. 2 7 '
....
8 Mining (including crude petroleum
and natural gas)
Oct. 2 9 '
Nov. 26
Dec. 31 P
22,964
1 Durable goods manufacturing
2 Nondurable goods manufacturing
3
Food, liquor, and tobacco
4
Textiles, apparel, and leather
5
Petroleum refining
Chemicals and rubber
6
7
Other nondurable goods
Sept. 24'
23,512
23,335
24,088
24,657
783
1,145
-177'
754
569
46
18,798
3,896
5,230
2,694
3,707
3,270
19,533
4,350
5,204
2,686
3,733
3,559
20,273
4,584
5,070
3,153
3,846
3,620
20,804
4,921
4,906
3,129
4,158
3,690
20,469
5.382
4,136
3,618
3.922
3,410
1,195
649
269
-28
30
275
935
1,032
-1,068
932
188
-148
740'
234
-133
466'
112
61
530
337
-164
-24
312
70
-335
460
-770
489
-236
-279
39
6
6
1
14
12
Q3'
0 4P
Adjustment
bank 1
Oct.
Nov.
Dec.P
13,559
13,956
14,716
15,338
16,408
199
2,452
760
622
1,070
14
9 Trade
10 Commodity dealers
11 Other wholesale
12 Retail
24,732
1,853
11,611
11,268
24,950
2,118
11,586
11,245
26,270
2.470
11,876
11,923
27,050
2,402
12,182
12,467
26,270
2,562
12,298
11,409
350
588
-94
-144
1,320
444
712
164
1,320
352
290'
678'
781
-69
306
544
-780
161
117
-1,058
121
6
34
82
14
15
16
13 Transportation, communication.
and other public utilities
Transportation
Communication
Other public utilities
19,218
7,651
2,918
8,649
19,223
7,735
2,993
8,495
19,316
7,788
3,094
8,434
20,099
8,019
3,161
8,919
21.310
8,379
3,315
9,616
478
136
154
188
2,088
643
322
1,121
93
52
101
-60
783
231
67
484
1,211
359
154
697
14
7
1
5
17 Construction
18 Services
19 All other 2
5,871
20,805
15,250
6,030
21,311
15,402
5,924
21.530
15,634
5,992
22,160
16,146
5.994
22,854
16,447
60
1,014
403
-37
1,543
1,045
-106'
219'
232'
69
630
511
1
694
301
23
96
288
141,197
143,917
146,998
151,678
154,409
4,483
10,492
3,081'
4,679
2,731
641
74,976
76,536
76,912
78,956
81,671
2,241
5,135
376
2,044
2,714
33
20 Total domestic loans
21 MEMO: Term loans (original maturity
more than 1 year) included in domestic loans
1. Adjustment bank amounts represent accumulated adjustments originally
made to offset the cumulative effects of mergers. These adjustment amounts should
be added to outstanding data for any date in the year to establish comparability
with any date in the subsequent year. Changes shown have been adjusted for these
amounts.
2. 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-the-month basis. Partly estimated historical data are available from the Banking Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C., 20551.
Deposits and Commercial Paper
1.31
A23
GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations!
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
19792
1975
Dec.
1976
Dec.
1977
Dec.
1980
1978
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
1 All holders—Individuals, partnerships, and
corporations
236.9
250.1
274.4
294.6
285.6
292.4
302.2
288.4
288.6
302.0
2
3
4
5
6
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
27.8
152.7
97.4
2.7
14.1
25.4
145.1
98.6
2.8
13.7
26.7
148.8
99.2
2.8
14.9
27.1
157.7
99.2
3.1
15.1
28.4
144.9
97.6
3.1
14.4
27.7
145.3
97.9
3.3
14.4
29.6
151.9
101.8
3.2
15.5
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
19793
1975
Dec.
1976
Dec.
1977
Dec.
June
7 AH holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Sept.
Dec.
Mar.
June
Sept.
124.4
128.5
139.1
147.0
128.8
132.7
139.3
133.6
133.9
140.6
15.6
69.9
29.9
2.3
6.6
Financial business
Nonfinancial business
Consumer
Foreign
Other
17.5
69.7
31.7
2.6
7.1
18.5
76.3
34.6
2.4
7.4
19.8
79.0
38.2
2.5
7.5
18.4
68.1
33.0
2.7
6.6
19.7
69.1
33.7
2.8
7.4
20.1
74.1
34.3
3.0
7.8
20.1
69.1
34.2
3.0
7.2
20.2
69.2
33.9
3.1
7.5
21.2
72.4
36.0
3.1
7.9
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. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 BULLETIN, p. 466.
2. 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.
1.32
1980
1978
Dec.
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1980
Instrument
1976
Dec.
1977
Dec.
19791
Dec.
1978
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
Commercial paper (seasonally adjusted)
1 All issuers
2
3
4
5
6
Financial companies 2 3
Dealer-placed paper
Total
Bank-related
Directly placed paper4
Total
Bank-related
Nonfinancial companies 5
53,010
65.036
83,420
112,803
121,032
123,937
122,259
122,607
123,460
122,383
124,776
7,263
1,900
8,888
2,132
12,300
3,521
17,579
2,874
18,526
3,591
19,100
3,188
18,207
3,198
19,092
3,313
19,509
3,370
18,992
3,442
19,556
3,436
32,622
5,959
13,125
40,612
7,102
15,536
51,755
12,314
19,365
64,931
17,598
30,293
63,813
18,845
38,693
62,623
19,436
42,214
63,777
19,239
40,275
64,550
19,909
38,965
65,542
19,692
38,409
66,628
21,146
36,763
67,345
21,939
37,875
Bankers dollar acceptances (not seasonally adjusted)
7 Total
8
9
10
11
12
13
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14. Imports into United States
15 Exports from United States
16 All other
22,523
25,450
33,700
45,321
52,636
54,356
54,334
54,486
55,774
56,610
55,226
10,442
8,769
1,673
10,434
8,915
1,519
8,579
7,653
927
9,865
8,327
1,538
9,262
8,768
493
10,051
9,113
939
9,764
8,603
1,161
9,644
8,544
1,100
10,275
9,004
1,270
11,317
9,808
1,509
10,236
8,837
1,399
991
375
10,715
954
362
13,700
1
664
24,456
704
1,382
33,370
366
1,718
41,290
373
1,784
42,147
310
1,899
42,361
277
1,841
42,724
499
1,820
43,179
566
1,915
42,813
523
1,852
42,616
4,992
4,818
12,713
6,378
5,863
13,209
8,574
7,586
17,540
10,270
9,640
25,411
11,651
11,347
29,637
11,536
11,339
31,480
12,109
12,401
29,824
11,861
12,582
30,043
11,731
12,991
31,052
12,254
13,445
30,911
11,774
13,670
29,782
1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Institutions engaged primarily in activities such as, but not limited to, commercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, and other business lending; insurance underwriting; and
other investment activities.
FRASER
Digitized for
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 such activities as communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and reserves.
A24
1.33
DomesticNonfinancialStatistics • January 1981
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective Date
Rate
Effective date
12.50
13.00
13.50
14.00
14.50
15.50
16.25
17.00
17.75
1980—Sept 19
26
Oct. 1
17
29
Nov. 6
17
21
26
1980—Dec
1981—Jan.
2
5
10
16
19
1979—Sept.
Oct.
Nov.
Dec.
20.50
12.90
14.39
15.55
15.30
1980—Jan.
Feb.
Mar.
Apr.
18.50
19.00
20.00
21.00
21.50
2
Average
rate
Month
Rate
15.25
15.63
18.31
19.77
Month
1980—May
June
July
Aug
Sept
Oct
Nov
Dec
•
1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 3-8, 1980
Size of loan (in thousands of dollars)
Item
All
sizes
1-24
50-99
25-49
100-499
500-999
1,000
and over
SHORT-TERM COMMERCIAL AND
INDUSTRIAL LOANS
1
2
3
4
5
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
13,100,722
131,579
2.2
15.71
15.12-16.65
729,247
92,779
3.0
15.97
14.75-17.23
549,089
16,539
3.5
15.72
13.52-17.11
562,389
9,235
2.9
16.39
15.50-17.50
1,819,646
10,024
3.0
15.52
14.50-16.75
665,483
1,049
3.4
15.87
15.31-16.61
8,774,868
1,953
1.7
15.68
15.25-16.50
50.5
45.7
25.2
25.0
25.1
14.9
27.9
22.3
12.0
40.7
35.3
17.4
52.1
46.4
24.3
68.3
65.6
31.0
53.0
48.0
27.1
Percentage of amount of loans
6 With floating rate
7 Made under commitment
8 With no stated maturity
LONG-TERM COMMERCIAL AND
INDUSTRIAL LOANS
9
10
11
12
13
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range1
3,152,110
17,989
46.3
15.07
14.50-15.62
306,233
15,060
48.3
15.42
14.93-16.65
571,615
2,245
34.4
15.29
14.75-15.50
171,411
245
40.6
15.20
14.50-16.25
2,102,851
439
49.6
14.95
14.50-15.50
70.1
58.1
39.3
29.0
29.5
25.1
72.3
70.2
85.5
70.3
Percentage of amount of loans
14 With floating rate
15 Made under commitment
CONSTRUCTION AND
LAND DEVELOPMENT LOANS
16
17
18
19
20
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range 1
21
22
23
24
1,072,203
24,383
13.4
15.31
14.00-16.65
105,341
13,527
9.4
15.23
14.04-16.99
242,030
6,586
5.0
14.64
13.10-15.50
167,557
2,637
19.4
14.74
14.00-14.75
230,726
1,413
10.0
15.24
14.00-17.00
326,549
221
18.0
16.16
15.50-17.00
44.4
81.9
60.9
16.5
22.7
84.3
48.7
4.9
8.8
98.2
60.9
26.9
45.6
96.7
21.5
3.1
47.9
89.8
78.2
35.8
74.7
56.0
73.0
5.8
40.9
8.2
50.9
75.0
2.2
22.7
66.9
57.7
3.6
38.7
24.9
8.9
66.2
13.3
10.7
76.0
Percentage of amount of loans
With floating rate
Secured by real estate
Made under commitment
With no stated maturity
Type of construction
25 1- to 4-family
26 Multifamiip.O
27 Nonresidential
All
sizes
1-9
23.1
10-24
25-49
50-99
100-249
250
and over
LOANS TO FARMERS
28
29
30
31
32
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per annum) .
Interquartile range1
33
34
35
36
37
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
1,301,641
72,123
7.3
15.46
14.49-16.64
191,079
46,721
6.7
15.10
14.30-15.97
217,452
14,605
7.1
15.02
14.32-15.95
190,952
5,800
5.6
15.22
14.04-16.21
196,075
2,838
6.6
15.55
15.00-16.10
275,324
1,789
10.6
15.74
14.48-16.64
230,759
370
5.8
15.96
14.93-17.05
15.45
15.35
15.44
15.13
15.75
15.10
15.19
15.17
15.01
14.91
15.09
15.96
15.14
14.81
13.90
14.93
14.84
15.33
15.44
16.06
15.23
15.46
15.88
15.42
15.79
15.79
15.30
15.97
(2)
15.44
16.32
(2)
15.21
(2)
17.25
1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.
NOTE. For more detail, see the Board's E.2(416) statistical release,
Securities Markets
1.35
A25
I N T E R E S T R A T E S Money and Capital Markets
Averages, percent per annum
1980 and 1981, week ending
1980
Instrument
1978
1979
1980
Sept.
Oct.
Nov.
Dec.
Dec. 5
Dec. 12
Dec. 19
Dec. 26
Jan. 2
Money market rates
1 Federal funds 1
Commercial paper 2 - 3
7
1-month
3 3-month
4 6-month
Finance paper, directly placed2-3
5
1-month
6 3-month
7 6-month
8 Prime bankers acceptances, 90-day3-4 . . .
Certificates of deposit, secondary market 5
9
1-month
10 3-month
11 6-month
12 Eurodollar deposits, 3-month 6
U.S. Treasury bills3-7
Secondary market
13
3-month
14
6-month
15
1-year
Auction average 8
16
3-month
17
6-month
1-vear
18
7.93'
11.19'
13.36
10.87
12.81
15.85'
18.90
17.72
18.82
19.83
19.44
18.45
7.76
7.94
7.99
10.86
10.97
10.91
12.76
12.66
12.29
10.82
10.97
11.04
12.59
12.52
12.32
15.23
15.18
14.73
18.95
18.07
16.49
17.42
17.09
16.05
19.64
19.00
17.57
20.33
19.55
17.49
19.06
17.51
15.49
17.89
16.34
15.05
7.73
7.80
7.78
8.11
10.78
10.47
10.25
11.04
12.44
11.49
11.28
12.78
10.62
10.28
10.29
11.13
12.32
11.24
11.15
12.69
14.87
13.14
13.07
15.34
17.87
15.00
14.78
17.96
16.90
14.18
14.03
17.28
18.55
15.17
14.84
19.23
19.36
15.62
15.32
19.24
17.30
15.26
15.11
16.84
16.66
14.63
14.53
16.28
7.88
8.22
8.61
8.74
11.03
11.22
11.44
11.96
12.91
13.07
12.99
14.00
10.89
11.29
11.73
12.07
12.69
12.94
12.99
13.55
15.39
15.68
15.36
16.46
19.24
18.65
17.10
19.47
17.66
17.58
16.57
18.16
20.08
19.93
18.34
19.46
20.76
20.23
18.19
21.36
19.23
17.60
15.87
19.29
17.87
16.99
15.76
17.79
7.19
7.58
7.74
10.07
10.06
9.75
11.43
11.37
10.89
10.27
10.57
10.48
11.62
11.63
11.30
13.73
13.50
12.66
15.49
14.64
13.23
14.98
14.57
13.43
16.76
15.39
13.75
16.21
15.18
13.71
14.62
13.81
12.40
14.31
13.73
12.38
7.221
7.572
7.678
10.041
10.017
9.817
11.506
11.374
10.748
10.321
10.546
9.967
11.580
11.566
11.136
13.888
13.612
12.219
15.661
14.770
13.261
14.649
14.554
13.261
16.335
15.069
16.667
15.423
14.992
14.032
13.908
13.411
12.074
15.52
14.66
13.82
13.15
14.10
13.68
13.38
13.19
12.86
12.78
15.44
14.77
14.15
14.17
13.69
13.40
13.18
12.81
12.68
12.91
12.50
12.37
12.29
11.99
11.87
13.86
13.00
12.75
12.81
12.54
12.43
12.36
12.05
11.95
Capital market rates
U . S . TREASURY NOTES AND BONDS
19
20
21
22
23
24
25
26
27
Constant maturities 9
1-year
2-year
2^-year 10
3-year
5-year
7-year
10-year
20-year
30-year
8.34
8.34
10.67
10.12
12.05
11.77
11.52
11.57*
12.49
12.09
14.15
13.51
14.88
14.08
8.29
8.32
8.36
8.41
8.48
8.49
9.71
9.52
9.48
9.44
9.33
9.29
11.55
11.48
11.43
11.46
11.39
11.30
11.57
11.62
11.57
11.51
11.47
11.34
12.01
11.86
11.79
11.75
11.75
11.59
13.31
12.83
12.71
12.68
12.44
12.37
13.65
13.25
13.00
12.84
12.49
12.40
15.18
14.21
14.00
13.77
13.40
13.09
12.91
12.48
12.44
28
Composite 11
Over 10 years (long-term)
7.89
8.74
10.81
10.94
11.20
11.83
11.89
11.92
12.25
12.15
11.38
11.49
5.52
6.27
6.03
5.92
6.73
6.52
7.85
9.01
8.59
8.36
9.38
8.94
8.38
9.41
9.11
8.71
9.74
9.56
9.44
10.64
10.11
9.20
10.00
9.84
9.40
11.00
10.42
9.80
11.00
10.56
9.80
11.00
9.99
9.00
10.20
9.76
STATE AND LOCAL NOTES AND BONDS
Moody's series12
29
30 Baa
31. Bond Buyer series 13
CORPORATE BONDS
32 Seasoned issues, all industries 14
By rating group
33 Aaa
34
Aa
35 A
36 Baa
Aaa utility bonds 15
37 New issue
Recently offered issues
38
MEMO: Dividend/price ratio 16
39 Preferred stocks
40 Common stocks
9.07
10.12
12.75
12.80
13.07
13.64
14.04
13.85
14.19
14.31
13.91
13.82
8.73
8.92
9.12
9.45
9.63
9.94
10.20
10.69
11.94
12.50
12.89
13.67
12.02
12.52
12.97
13.70
12.31
12.68
13.05
14.23
12.97
13.34
13.59
14.64
13.21
13.78
14.03
15.14
13.15
13.59
13.83
14.84
13.47
13.95
14.11
15.21
13.49
14.05
14.33
15.36
12.89
13.64
13.94
15.19
12.83
13.54
13.82
15.09
8.96
8.97
10.03
10.02
12.74
12.70
12.74
12.72
13.18
13.13
13.85
13.91
14.51
14.38
14.16
14.51
15.03
14.25
14.20
14.15
8.25
5.28
9.07
5.46
10.57
5.25
10.14
4.90
10.64
4.80
11.33?
4.65 P
11.94
4.74
11.66
4.63
12.04
4.94
12.08
4.78
11.83
4.66
12.09
4.67
1. Weekly figures are seven-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 November 1979, maturities for data shown
are 30-59 days, 90-119 days, and 120-179 days for commercial paper; and 30-59
days, 90-119 days, and 150-179 days for finance paper.
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 (three-month series was
previously a seven-day average).
6. Averages of daily quotations for the week ending Wednesday.
7. Except for auction averages, yields are computed from 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 maturities by
the U.S. Treasury, based on daily closing bid prices.
10. Each monthly figure is an average of only five business days near the end
of the month. The rate for each month was used to determine the maximum interest
rate payable in the following month on small saver certificates, until June 2, 1980.
Each weekly figure is calculated on a biweekly basis and is the average of five
business days ending on the Monday following the calendar week. Beginning June
2, the biweekly rate is used to determine the maximum interest rate payable in the
following two-week period on small saver certificates. (See table 1.16.)
11. Unweighted averages for all outstanding notes and bonds neither due nor
callable in less than 10 years, including several very low yielding "flower" bonds.
Based on daily closing bid prices.
12. General obligations only, based on figures for Thursday, from Moody's
Investors Service.
13. Twenty issues of mixed quality.
14. Averages of daily figures from Moody's Investors Service.
15. Compilation of the Federal Reserve. 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. Standard and Poor's corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one transportation. Common stock ratios on the 500 stocks in the price index.
A26
1.36
DomesticNonfinancialStatistics • January 1981
STOCK MARKET
Selected Statistics
1980
Indicator
1980
1979
1978
July
June
Aug.
Sept.
Oct.
Nov.
Dec.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31, 1965 = 50) .
2
Industrial
3 Transportation
4
Utility
5
Finance
6 Standard & Poor's Corporation (1941^3 = 10)1 ..
7 American Stock Exchange (Aug. 31, 1973 = 100)
53.76
58.30
43.25
39.23
56.74
96.11
144.56
55.67
61.82
45.20
36.46
58.65
98.34
186.56
68.06
78.64
60.52
37.35
64.28
118.71
300.94
65.43
74.47
54.04
38.50
65.16
114.55
286.21
68.56
78.67
59.14
38.77
66.76
119.83
310.29
70.87
82.15
62.48
38.18
67.22
123.50
321.87
73.12
84.92
65.89
38.77
69.33
126.49
337.01
75.17
88.00
70.76
38.44
68.29
130.22
350.08
78.15
92.32
77.22
38.35
67.21
135.65
349.97
76.69
90.37
75.74
37.84
67.46
133.48
347.56
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
28,591
3,622
32,233
4,182
44,867
6,377
39,508
5,240
46,444
6,195
45,984
6,452
50,397
7,880
44,860
7,087
54,895
7,852
46,620
6,410
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers 2
11,035
11,619
11,370
11,522
12,007
12,731
13,293
14,363
11 Margin stock 3
12 Convertible bonds
13 Subscription issues
10,830
205
1
11,450
167
2
11,200
166
4
11,320
198
4
11,800
204
3
12,520
208
3
13,080
211
2
14,140
220
3
835
2,510
1,105
4,060
1,345
4,790
1,665
4,905
1,695
4,925
1,850
5,680
5,500
1,950
5,590
2,120
Free credit balances at brokers4
14 Margin-account
15 Cash-account
n. a.
n .a.
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
33.0
28.0
18.0
10.0
6.0
5.0
100.0
100.0
16.0
29.0
27.0
14.0
8.0
7.0
n..a.
1
t
100.0
100.0
100.0
100.0
100.0
17.0
31.0
23.0
13.0
8.0
7.0
12.0
27.0
28.0
16.0
9.0
8.0
11.0
25.0
30.0
16.0
10.0
8.0
13.0
28.0
26.0
15.0
10.0
8.0
13.0
29.0
25.0
15.0
10.0
8.0
13.0
18.0
31.0
18.0
n.a.
1
1
11.0
•
9.0
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of 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
16,920
17,886
18,350
19,283
19,929
21,600
•
47.6
48.7
48.2
49.0
46.8
46.5
1
t
43.4
9.0
43.8
8.0
44.6
7.0
43.4
7.6
46.2
7.0
46.8
6.7
13,092
16,150
41.3
44.2
t
1
n.a.
45.1
13.6
47.0
8.8
t
1
1
t
n.a.
1
Margin requirements (percent of market value and effective date) 7
Mar. 11, 1968
27 Margin stocks
28 Convertible bonds
29 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
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-ofmonth 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.
Jan. 3, 1974
50
50
50
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually sales proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount
of credit to purchase and carry margin stocks that may be extended on securities
as collateral by prescribing a maximum loan value, which is a specified percentage
of the market value of the collateral at the time the credit is extended. Margin
requirements are the difference between the market value (100 percent) and the
maximum loan value. The term "margin stocks" is defined in the corresponding
regulation.
Thrift Institutions
1.37
SAVINGS INSTITUTIONS
A27
Selected Assets and Liabilities
Millions of dollars, end of period
1980
Account
1978
1979
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov./7
Savings and loan associations
1 Assets
523,542
589,498 591,108 593,321 594,792
597,023
603,720
609,764
617,773 623,744
2 Mortgages
3 Cash and investment securities1
4 Other
432,808 475,797 477,303 479,078 480,165 480,092 481,184
50,899
44,884 46,541 50,168
50,576
52,670
52,613
58,214
45,850
56,969
59,521
60,367 60,559
60,995
482,985
52,370
61,668
487,198
53,545
62,977
492,068
53,647
64,049
496,495
56,146
65,132
5 Liabilities and net worth
6
7
8
9
10
11
Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other
579,307
579,307
585,685
597,023
603,720
609,764
617,773 623,744
430,953 470,171 473,862 478,265 478,591 481,613 486,900 489,123
54,950
42,907
55,375
55,276
57,346
57,407
53,615
55,353
40,441 40,337
31,990
42,413 42,724 41,529
40,613
39,882
14,934
14,939
14,933
13,824
13,733
10,917
14,683
14,337
8,269
6,974
9,511
8,079
7,660
7,126
7,055
10,721
11,684
9,904
15,385
12,683
14,260
13,056
14,455
16,246
491,638
55,552
41,005
14,547
7,483
16,291
497,244
58,578
42,547
16,031
8,184
12,877
500,861
60,727
44,325
16,402
8,654
14,502
503,329
61,958
45,543
16,415
£
5,837
16,421
523,542
585,685
589,498 591,108 593,321 594,792
499,945
57,206
66,593
12 Net worth 2
29,057
32,566
32,893
33,125
33,190
32,983
32,912
32,775
32,756
32,881
33,029
33,199
13 MEMO: Mortgage loan commitments outstanding 3
18,911
16,007
16,744
15,844
14,193
13,929
15,368
18,020
20,280
20,313
19,077
17,846
Mutual savings banks 4
158,174
163,405
164,270
165,107
165,366
166,340
166,982
167,959
168,752
169,409
170,432
95,157
7,195
98,908
9,253
99,220
10,044
99,151
10,131
99,045
10,187
99,163
10,543
99,176
11,148
99,301
11,390
99,289
11,122
99,306
11,415
99,523
11,382
4,959
3,333
39,732
3,665
4,131
7,658
2,930
37,086
3,156
4,412
7,436
2,853
37,223
3,012
4,481
7,629
2,824
37,493
3,361
4,518
7,548
2,791
37,801
3,405
4,588
7,527
2,727
38,246
3,588
4,547
7,483
2,706
38,276
3,561
4,631
7,796
2,702
38,863
3,260
4,648
8,079
2,709
39,327
3,456
4,770
8,434
2,728
39,609
3,153
4,764
8,622
2,754
39,720
3,592
4,839
22 Liabilities
158,174
163,405
164,270
165,107
165,366
166,340
166,982
167,959
168,752
169,409
170,432
23
24
25
26
27
28
29
30
142,701
141,170
71,816
69,354
1,531
4,565
10,907
146,006
144,070
61,123
82,947
1,936
5,873
11,525
145,171
143,284
58,234
85,050
1,887
7,485
11,615
146,328
144,214
56,948
87,266
2,115
7,135
11,643
145,821
143,765
54,247
89,517
2,056
7,916
11,629
146,637
144,646
54,669
89,977
1,990
8,161
11,542
148,606
146,416
56,388
90,028
2,190
6,898
11,478
149,580
147,408
57,737
89,671
2,172
6,964
11,416
150,187
148,018
58,191
89,827
2,169
7,211
11,353
151,765
149,395
58,658
90,736
2,370
6,299
11,344
151,998
149,797
57,651
92,146
2,200
7,117
11,317
4,400
3,182
2,618
2,397
2,097
1,883
1,898
1,939
1,849
1,883
1,817
14 Assets
15
16
17
18
19
20
21
Loans
Mortgage
Other
Securities
U.S. government 5
State and local government
Corporate and other 6
Cash
Other assets
Deposits
Regular 7
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO: Mortgage loan commitments outstanding 8
n .a.
Life insurance companies
31 Assets
32
33
34
35
36
37
38
39
40
41
42
Securities
Government
United States 9
State and local
Foreign 10
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
389,924 432,282
438,638 439,733 442,932
447,020 450,858 455,759
459,362
464,483
468,057
20,009
4,822
6,402
8,785
198,105
162,587
35,518
106,167
11,764
30,146
23,733
20,438 20,545
5,004
4,898
6,454
6,488
9,087
9,052
223,423 221,214
182,521 182,536
40,902
38,678
120,926 122,314
13,201
13,512
35,839
36,901
25,247
24,811
20,529
5,107
6,352
9,070
223,556
183,356
40,200
124,563
13,981
38,890
25,501
20,736
5,325
6,361
9,050
228,645
186,385
42,260
126,461
14,164
39,649
26,104
20,833
5,386
6,421
9,026
230,477
187,839
42,638
127,357
14,184
39,925
26,586
20,853
5,361
6,474
9,018
233,652
189,586
44,066
128,089
14,460
40,258
27,171
20,942
5,390
6,484
9,068
236,115
191,229
44,886
128,977
14,702
40,548
26,765
0,338
4,888
6,428
9,022
222,332
178,371
39,757
118,421
13,007
34,825
27,563
20,470
5,059
6,351
9,060
222,175
182,750
39,425
123,587
13,696
38,166
24,838
20,395
4,990
6,349
9,056
224,874
184,329
40,545
125,455
14,085
39,354
26,695
n. a.
Credit unions
43 Total assets/liabilities and
capital
62,348
65,854
64,857
65,678
65,190
66,103
68,102
68,429
69,553
70,515
70,702
71,335
44
45
46
47
48
49
50
51
34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715
35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702
35,425
29,432
51,626
27,783
23,843
55,790
32,256
25,534
36,091
29,587
51,337
27,685
23,652
56,743
30,948
25,795
35,834
29,356
50,344
27,119
23,225
56,338
30,851
25,487
36,341
29,762
49,469
26,550
22,919
57,197
31,403
25,794
37,555
30,547
48,172
25,773
22,399
59,310
32,764
26,546
37,573
30,856
47,829
25,435
22,394
60,574
33,472
27,102
38,168
31,385
47,884
25,401
22,483
61,403
33,964
27,439
39,219
31,296
47,211
25,381
21,830
63,728
35,961
27,767
39,155
31,547
47,221
25,288
21,933
63,957
36,030
27,927
39,428
31,907
47,299
25,273
22,026
64,304
36,183
28,121
Federal
State
Loans outstanding
Federal
State
Savings
Federal (shares)
State (shares and deposits)
For notes see bottom of page A28.
A28
1.38
DomesticNonfinancialStatistics • January 1981
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1978
Fiscal
year
1979
Fiscal
year
1980
1979
HI
1980
H2
HI
1980
Sept.
Oct.
Nov.
U.S. budget
1 Receipts'
2 Outlays1
3 Surplus, or deficit( - )
4 Trust funds
'
Federal funds 2
401,997
450,836
-48,839
12,693
-61,532
465,940
493,673
-27,733
18,335
-46.069
520,050
579,011
-58,961
8,791
-67,752
246,574
245.616
958
4.041
-3.083
233,952
263,044
-29,093
9,679
-38,773
270,864
289,899
-19,035
4,383
-23,418
53,544
47,289
6,255
8,286
-2,031
38,923
56,304
-17,382
-7,452
-9,929
39,175
48,049
-8,874
-3,049
-5,825
Off-budget entities (surplus, or deficit
("))
6 Federal Financing Bank outlays
7 Other 3
-10,661
334
-13,261
832
-14,549
330
-7.712
-447
-5,909
805
-7,735
-528
-1,861
41
-1,157
1,403
-1,358
-466
-59,166
-40,162
-73,180
-7.201
-34,197
-27,298
4,435
-17,136
-10,698
59,106
33,641
70,515
6,039
31,320
24,435
6,260
4,758
9,231
-3,023
3,083
-408
6,929
-355
3,020
-8,878
10,040
3,059
-182
-3,482
6,345
-9,692
-1,002
8,488
3,890
4,077
-2,610
22,444
16,647
5,797
24,176
6,489
17,687
20,990
4,102
16,888
17.485
3,290
14.195
15,924
4,075
11,849
14,092
3,199
10,893
20,990
4,102
16,888
12,678
1,864
10,814
7,226
2,435
4,791
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 ( - ))*
11 Other 5
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 are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Includes Pension Benefit Guaranty Corporation; 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; allocations of special drawing
rights; 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 IMF valuation adjustment; and profit on
the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government," Treasury Bulletin, and the Budget of the United States Government,
Fiscal Year 1981.
NOTES TO TABLE 1.37
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.
Before 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 of 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 annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differences between market and book values are not made on each item separately but
are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration for a
group of federal and 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
1.39
A29
U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1978
Fiscal
year
1979
Fiscal
year
1980
1980
1980
1979
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
1
1 All sources
401,997
465,940
520,050
246,574
233,952
270,864
53,544
38,923
39,175
180,988
165,215
39
47,804
32,070
217,841
195,295
36
56,215
33,705
244,069
223,763
39
63,746
43,479
111,603
98,683
32
44,116
31,228
115,488
105,764
3
12,355
2,634
119,988
110,394
34
49,707
40,147
26,936
18,731
0
8,632
429
21,150
20,237
0
1,454
540
20,851
20,379
0
673
201
65,380
5,428
71,448
5,771
72,380
7,790
42,427
2,889
29,169
3,306
43,434
4,064
9,531
647
2,598
1,314
1,774
771
123,410
141,591
160,747
75,609
71,031
86,597
12,860
11,283
13,242
99,626
115,041
133,042
59,298
60,562
69,077
11,520
9,645
11,189
4,267
13,850
5,668
5,034
15,387
6,130
5,723
15,336
6,646
4,616
8,623
3,072
417
6,899
3,149
5,535
8,690
3,294
419
299
622
0
1,068
570
0
1,499
554
18,376
6,573
5,285
7,413
18,745
7,439
5,411
9,237
24,329
7,174
6,389
12,741
8,984
3,682
2,657
4,501
9,675
3,741
2,900
5,254
11,383
3,443
3,091
6,993
2,734
605
611
914
2,778
654
610
1,163
2,080
546
543
909
450,836
493,673
579,011
245,616
263,044
289,899
47,289
56,304c
48,049
National defense
International affairs
General science, space, and technology ..
Energy
Natural resources and environment
Agriculture
105,186
5,922
4,742
5,861
10,925
7,731
117,681
6,091
5,041
6,856
12,091
6,238
135,880
10,476
5,999
6,339
14,142
4,951
57,643
3,538
2,461
4,417
5,672
3,020
62,002
4,617
3,299
3,281
7,350
1,709
69,132
4,602
3,150
3,126
6,668
3,193
11,636
532
391
630
1,314
-184
13,040
984
588
631
1,406
221
11,812
674
549
627
1,086
878
Commerce and housing credit
Transportation
Community and regional development . . .
Education, training, employment, social
services
29 Health
30 Income security1
3,324
15,445
11,039
2,565
17,459
9,482
7,537
20,840
10,182
60
7,688
4,499
3,002
10,298
4,855
3,878
9,582
5,302
-26
2,077
1,128
1,626
2,066
989
-357
1,808
847
26,463
43,676
146,212
29,685
49,614
160,198
31,397
58,165
192,160
14,467
24,860
81,173
14,579
26,492
86,007
16,686
29,299
94,600
2,595
5,284
17,487
2,947
5,432
18,361
2,223
4,891
17,216
18,974
3,802
3,737
9,601
43,966
-15,772
19,928
4,153
4,153
8,372
52,556
-18,489
21,167
4,553
4,878
8,268
64,571
-22,494
10,127
2,096
2,291
3,890
26,934
-8,999
10,113
2,174
2,103
4,286
29,045
-12,164
9,758
2,291
2,422
3,940
32,658
-10,387
747
350
428
150
4,752
-2,000
2,859
466
39
1,929
5,349
-2,630
719
348
464
210
5,338
-1,285
7 Individual income taxes, net
3 Withheld
Presidential Election Campaign Fund ..
4
S Nonwithheld
Refunds 1
6
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Payroll employment taxes and
contributions 2
taxes and
11 Self-employment 3
contributions
12 Unemployment insurance
13 Other net receipts4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
OUTLAYS
18 All types
19
20
21
22
23
24
1
25
26
27
28
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
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 from an accrual basis to a cash basis for the
interest on special issues for U.S. government accounts.
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 1981.
A30
1.40
Domestic Financial Statistics • January 1981
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1979
1978
1980
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31.
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
780.4
797.7
804.6
812.2
833.8
852.2
870.4
884.4
914.3
2 Public debt securities
Held by public
3
4
Held by agencies
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
845.1
658.0
187.1
863.5
677.1
186.3
877.6
682.7
194.9
907.7
710.0
197.7
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
7.1
5.6
1.5
7.0
5.5
1.5
6.8
5.3
1.5
6.6
5.1
1.5
5 Agency securities
6
Held by public
Held by agencies
7
772.7
790.3
797.9
806.0
827.6
846.2
864.5
878.7
908.7
9 Public debt securities
10 Other debt 1
770.9
1.8
788.6
1.7
796.2
1.7
804.3
1.7
825.9
1.7
844.5
1.7
862.8
1.7
877.0
1.7
907.1
1.6
11 MEMO: Statutory debt limit
798.0
798.0
798.0
830.0
830.0
879.0
879.0
925.0
925.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
NOTE. Data from Treasury Bulletin (U.S. Treasury Department),
Types and Ownership
Billions of dollars, end of period
1980
Type and holder
1976
1977
1978
1979
Aug.
1 Total gross public debt
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^
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes
Government account series4
15 Non-interest-bearing debt
16
17
18
19
20
21
22
23
By holder5
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other companies
State and local governments
Individuals
24
Savings bonds
25
Other securities
26 Foreign and international 6
27 Other miscellaneous investors7
Oct.
Nov.
Dec.
653.5
718.9
789.2
845.1
893.4
907.7
908.2
913.8
930.2
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
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
888.7
583.4
199.3
300.3
83.9
305.3
906.4
594.5
199.8
310.9
83.8
311.9
906.9
599.4
202.3
311.9
85.2
307.5
909.4
605.4
208.7
311.1
85.5
304.0
928.9
623.2
216.1
321.6
85.4
305.7
23.6
25.8
19.4
6.4
73.2
182.4
23.6
25.2
18.7
6.4
73.0
189.8
23.9
24.8
18.4
6.4
73.0
185.7
24.0
24.5
18.1
6.4
72.8
182.4
23.8
24.0
17.6
6.4
72.5
185.1
1.1
3.7
6.8
1.2
4.7
1.3
1.3
4.4
1.3
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
15.5
22.7
54.8
170.0
109.6
508.6
93.1
5.0
14.9
21.2
64.4
187.1
117.5
540.5
97.0
4.7
14.4
23.9
67.4
189.8
119.3
583.8
98.1
5.0
14.1
24.6
70.7
197.7
120.7
589.2
100.9
5.3
14.4
25.5
73.4
193.4
121.5
593.3
103.4
5.5
15.3
25.3
73.1
72.0
28.8
78.1
38.9
76.7
28.6
109.6
46.0
80.7
33.3
137.8
58.2
79.9
34.2
123.8
97.6
73.2
50.9
125.4
121.8
72.7
50.0
126.0
120.7
73.0
49.9
127.6
120.2
1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository 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 IV2 percent, 5-year marketable Treasury notes. Convertible bonds that have been so exchanged are removed from this category and recorded in the notes category (line 5).
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. Data 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 Fund.
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 from Monthly Statement of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.
Federal Finance
1.42
U.S. GOVERNMENT MARKETABLE SECURITIES
A31
Ownership, by maturity
Par value; millions of dollars, end of period
1980
Type of holder
1978
1980
1979
1978
Sept.
1979
Oct.
Sept.
All maturities
Oct.
1 to 5 years
1 All holders
487,546
530,731
594,506
599,406
162,886
164,198
195,784
196,129
2 U.S. government agencies and trust funds
3 Federal Reserve Banks
12,695
109,616
11,047
117,458
10,078
120,711
10,078
121,482
3,310
31,283
2,555
28,469
2,255
37,285
2,255
37,162
365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288
402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072
463,717
75,029
3,605
11,464
8,182
4,021
20,467
340,948
467,845
76,921
3,746
12,026
8,085
3,994
20,410
342,665
128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433
133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546
156,244
45,390
1,880
4,417
2,370
2,193
4,555
95,439
156,712
45,571
1,943
4,679
2,741
2,183
4,642
94,952
4 Private investors
5
Commercial banks
6
Mutual savings banks
7
Insurance companies
8
Nonfinancial corporations
Savings and loan associations
9
10 State and local governments
11 All others
Total, within 1 year
12 All holders
13 U.S. government agencies and trust funds
14 Federal Reserve Banks
15 Private investors
16 Commercial banks
17 Mutual savings banks
18 Insurance companies
19 Nonfinancial corporations
20 Savings and loan associations
21 State and local governments
22 All others
5 to 10 years
228,516
255,252
276,529
279,673
50,400
50,440
53,372
53,337
1,488
52,801
1,629
63,219
1,084
55,326
1,084
56,243
1,989
14,809
871
12,977
1,398
13,165
1,398
13,192
174,227
20,608
817
1,838
4,048
1,414
8,194
137,309
190,403
20,171
836
2,016
4,933
1,301
5,607
155,539
220,084
21,308
981
1,807
4,638
1,680
7,236
182,434
222,346
22,713
1,057
1,833
4,123
1,656
7,067
183,896
33,601
7,490
496
2,899
369
89
1,588
20,671
36,592
8,086
459
2,815
308
69
1,540
23,314
38,809
5,871
454
2,943
318
82
2,118
27,022
38,747
5,841
459
3,043
367
88
2,076
26,875
Bills, within 1 year
23 AH holders
24 U.S. government agencies and trust funds
25 Federal Reserve Banks
26 Private investors
27 Commercial banks
28 Mutual savings banks
29
Insurance companies
30 Nonfinancial corporations
31 Savings and loan associations
32
State and local governments
33 All others
10 to 20 years
161,747
172,644
19,800
27,588
35,481
36,926
2
42,397
0
45,337
1
44,098
1
44,650
3,876
2,088
4,520
3,272
3,686
5,895
3,686
5,903
119,348
5,707
150
753
12
262
5,524
105,161
127,306
5,938
262
473
2,793
219
3,100
114,522
155,732
8,168
257
528
2,363
802
4,836
138,779
157,658
9,455
340
498
1,891
801
4,912
139,761
13,836
956
143
1,460
86
60
1,420
9,711
19,796
993
127
1,305
218
58
1,762
15,332
25,901
1,129
185
1,495
403
54
3,559
19,076
27,338
1,425
186
1,740
429
54
3,574
19,930
199,832
202,309
Other, within 1 year
Over 20 years
34 AH holders
66,769
82,608
76,697
77,364
25,944
33,254
33,340
33,340
35 U.S. government agencies and trust funds
36 Federal Reserve Banks
1,487
10,404
1,629
17,882
1,083
11,262
1,083
11,593
2,031
8,635
1,472
9,520
1,656
9,005
1,656
8,982
37 Private investors
38 Commercial banks
39 Mutual savings banks
40 Insurance companies
41 Nonfinancial corporations
42
Savings and loan associations
43 State and local governments
44
All others
54,879
14,901
667
1,084
2,256
1,152
2,670
32,149
63,097
14,233
574
1,543
2,140
1,081
2,508
41,017
64,351
13,140
724
1,280
2,275
878
2,400
43,655
64,688
13,258
717
1,336
2,232
855
2,155
44,135
15,278
1,446
126
774
135
17
3,616
9,164
22,262
1,470
113
842
130
19
3,339
16,340
22,680
1,332
104
802
454
13
2,998
16,978
22,702
1,371
100
730
425
13
3,051
17,011
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, 1980: (1) 5,356 commercial banks,
460 mutual savings banks, and 723 insurance companies, each about 80 percent;
(2) 413 nonfinancial corporations and 479 savings and loan associations, each about
50 percent; and (3) 492 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.
A32
1.43
DomesticNonfinancialStatistics • January 1981
U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
1980, week ending Wednesday
1978
Item
1979
Aug.
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
10,838
6,746
237
2,320
1,148
388
6,173
392
1,889
965
867
7,915
454
2,417
1,121
1,276
Oct
17,892
10,285
Sept.
17,608
17,464
10,387
465
2,745
1,692
1,802
10,789
325
3,377
1,611
1,506
11,543
350
2,745
1,060
1,766
Aug. 27
Sept. 3
Sept. 10
Sept. 17
15,533
9,843
433
4,544
979
1,490
10,475
377
2,813
3,091
1,634
9,520
310
2,508
1,793
1,402
Sept. 24
Oct. 1
19,832
11,333
178
2,805
1,382
1,476
18,413
11,730
290
4,754
1,686
1,372
10,818
465
3,777
1,281
2,071
By type of customer
7 U.S. government securities
dealers
8 U.S. government securities
brokers
9 Commercial banks
10 All others 1
1,268
1,135
1,448
1,333
1,503
1,296
1,541
1,257
1,103
1,397
1,902
3,709
2,294
3,567
3,838
1,804
3,508
5,170
1,904
4,660
7,418
2,164
6,977
7,220
2,228
6,657
7,664
2,019
6,485
7,120
2,290
6,337
7,329
2,451
7,354
6,414
2,004
6,012
7,058
2,354
6,365
8,179
2,371
7,381
7,342
2,169
6,808
11 Federal agency securities
1,729
2,666
3,277
2,958
2,456
2,347
2,311
3,392
2,822
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.
1.44
U.S. GOVERNMENT SECURITIES DEALERS
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.
Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
1980, week ending Wednesday
1980
Item
1977
1978
1979
Aug.
Sept.
Oct.
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Sept. 3
Positions 1
1 U.S. government securities
5,172
2,656
3,223
5,947
3,338
2,701
7,076
6,230
7,571
6,568
4,351
4,500
2
3
4
5
6
4,772
99
60
92
149
2,452
260
-92
40
-4
3,813
-325
-455
160
30
5,149
-1,336
1,391
218
526
3,753
-1,685
620
122
529
2,557
-1,082
755
-221
692
5,674
-1,138
2,031
-99
609
5,381
-910
1,739
-373
393
5,318
-1,186
2,152
442
846
6,337
-1,558
1,026
328
435
4,300
-1,510
939
172
450
4,330
-1,603
648
674
451
693
606
1,471
691
320
979
949
845
857
821
428
269
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7 Federal agency securities
Financing 2
8 All sources
9
10
11
12
Commercial banks
New York City
Outside New York City
Corporations 3
All others
9,877
10,204
16,003
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,313
1,987
2,358
4,158
599
2,174
2,379
5,052
1,396
2,868
3,373
4,104
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1. Net amounts (in terms of par values) of securities owned by nonbank dealer
firms and dealer departments of commercial banks on a commitment, that is, tradedate 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 agreeement to
resell are excluded when 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
1.45
A33
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding
Millions of dollars, end of period
1980
Agency
1976
1977
1978
Mar.
1 Federal and federally sponsored agencies1
2 Federal agencies
3
Defense Department 2
4
Export-Import Bank3-4
5
Federal Housing Administration 5
6
Government National Mortgage Association
participation certificates 6
7
Postal Service7
8
Tennessee Valley Authority
9
United States Railway Association 7
10 Federally sponsored agencies1
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 Association 8
19 Other
Apr.
May
June
July
Aug.
103,848
112,472
137,063
173,216
176,880
179,062
179,353
180,119
179,545
22,419
1,113
8,574
575
22,760
983
8,671
581
23,488
968
8,711
588
25,583
709
9,627
550
25,776
688
9,615
537
25,904
679
9,597
531
26,667
674
10,275
524
26,810
661
10,248
516
26,930
651
10,232
508
4,120
2,998
4,935
104
3,743
2,431
6,015
336
3,141
2,364
7,460
356
2,979
1,837
9,440
441
2,937
1,837
9,695
467
2,937
1,770
9,920
470
2,877
1,770
10,075
472
2,842
1,770
10,300
473
2,842
1,770
10,445
482
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
147,633
35,309
2,644
51,614
15,106
2,144
584
38,446
1,785
1
151,104
36,352
2,643
52,456
13,940
2,144
584
41,039
1,945
1
153,158
37,540
2,642
52,573
13,940
2,144
584
41,629
2,105
1
152,686
36,748
2,642
52,389
13,940
2,144
584
42,058
2,180
1
153,309
36,039
2,634
52,114
12,765
1,821
584
45,111
2,240
1
152,615
35,690
2,634
52,001
12,765
1,821
584
44,824
2,295
1
28,711
38,580
51,298
71,885
74,009
76,009
77,408
78,870
80,024
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,898
2,114
915
5,635
356
8,849
1,587
1,785
7,715
441
8,849
1,587
1,945
7,970
467
8,849
1,520
2,105
8,195
470
9,558
1,520
2,180
8,350
472
9,558
1,520
2,240
8,575
473
9,558
1,520
2,295
8,720
482
10,750
1,415
4,966
16,095
2,647
6,782
23,825
4,604
6,951
33,410
7,039
11,059
34,755
7,155
11,281
35,745
7,631
11,494
35,745
7,942
11,641
36,715
8,084
11,705
37,403
8,233
11,813
MEMO:
20 Federal Financing Bank debt7-9
21
22
23
24
25
Lending to federal and federally sponsored agencies
Export-Import Bank 4
Postal Service7
Student Loan Marketing Association 8
Tennessee Valley Authority
United States Railway Association 7
Other Lending10
26 Farmers Home Administration
27 Rural Electrification Administration
28 Other
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; D e p a r t m e n t of Health, Education, and Welfare; D e p a r t m e n t
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.
A34
DomesticNonfinancialStatistics • January 1981
1.46
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1980
Type of issue or issuer,
or use
1977
1979
1978
Apr.
1 All issues, new and refunding
2
3
4
5
1
July
Aug.
Sept.P
4,833
4,570
5,960
4,692
3,792
4,255
17,854
30,658
12,109
31,256
1,662
3,170
1,534
3,032
1,886
4,071
1,368
3,319
787
2,995
1,344
2,902
95
125
1
4
3
5
10
9
6,354
21,717
18,623
6,632
24,156
17,718
4,314
23,434
15,617
466
2,175
2,192
749
2,276
1,539
897
3,414
1,647
185
3,034
1,468
304
2,200
1,278
640
2,603
1,003
36,189
37,629
41,505
4,704
4,501
5,886
4,327
3,771
3,639
5,076
2,951
8,119
8,274
4,676
7,093
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
43,490
72
8 Municipalities, counties, townships, school districts
48,607
18,042
28,655
9 Issues for new capital, total
5,003
3,460
9,026
10,494
3,526
6,120
5,130
2,441
8,594
15,968
3,836
5,536
488
299
607
2,062
315
933
297
193
688
1,801
484
1,038
783
329
563
2,986
332
893
618
143
1,221
1,607
120
618
263
98
1,176
1,421
340
473
422
425
716
198
331
547
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 reauiring the Housing Assistance Administration to make annual contributions to the local authority.
1.47
June
46,769
Type of issue
General obligation
Revenue
Housing Assistance Administration 2
U.S. government loans
Type of issuer
6 State
7 Special district and statutory authority
10
11
12
13
14
15
May
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use
1980
1977
1978
1979
Mar.
1 All issues
1
Apr.
May
June
July'
Aug.
Sept.
53,792
47,230
51,464
4,353
5,677
9,067
9,511
7,941
5,371
4,922
2 Bonds
42,015
36,872
40,139
2,771
4,775
7,335
8,148
6,567
4,147
2,813
Type of offering
3 Public
4 Private placement
24,072
17,943
19,815
17,057
25,814
14,325
1,985
786
3,828
947
6,810
525
7,548
600
5,354
1,213
3,843
304
2,421
392
12,204
6,234
1,996
8,262
3,063
10,258
9,572
5,246
2,007
7,092
3,373
9,586
9,667
3,941
3,102
8,118
4,219
11,095
693
215
94
1,423
196
152
1,697
457
173
572
598
1,278
2,400
560
364
723
1,171
2,116
2,318
1,629
385
1,412
209
2,195
2,851
999
329
316
787
1,284
1,499
203
338
971
580
556
509
357
401
555
517
472
11,777
10,358
11,325
1,582
902
1,732
1,363
1,374
1,224
2,109
3,916
7,861
2,832
7,526
3,574
7,751
525
1,057
223
679
202
1,530
382
981
360
1,014
101
1,123
392
1,717
1,189
1,834
456
5,865
1,379
1,049
1,241
1,816
263
5,140
264
1,631
1,679
2,623
255
5,171
303
1,293
598
404
36
408
27
109
81
374
9
319
53
67
215
512
27
615
25
338
127
202
9
494
126
406
165
390
293
238
32
463
46
152
502
569
54
633
6
345
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 Common
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
714
104
1933, employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
SOURCE. Securities and Exchange Commission.
Corporate Finance
1.48
OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1980
Item
1978
1979
Apr.
May
June
July
Aug.
Sept.
Oct /
Nov.
INVESTMENT COMPANIES 1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
4
5
6
7,495
8,393
-898
1,010
762
248
1,175
647
528
1,772
775
997
1,890
863
1,027
1,507
1,019
488
1,405
1,228
177
1,523
1,362
161
1,289
1,086
203
44,980
4,507
40,473
Assets 4
Cash position 5
Other
6,645
7,231
-586
49,493
4,983
44,510
47,270
5,862
41,708
50,539
6,209
44,330
52,946
6,495
46,451
54,406
5,629
48,777
54,941
5,619
49,322
55,779
5,481
50,298
56,156
5,460
50,696
60,335
5,470
54,865
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment
of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to another in the same group.
4. Market value at end of period, less current liabilities.
1.49
5. Also includes all U.S. government securities and other short-term debt securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Account
1977
1978
1980
1979
01
02
03
04
Q1
02
Q3
1
Profits before tax
177.1
206.0
236.6
233.3
227.9
242.3
243.0
260.4
204.8
222.4
2
3
4
5
6
7
Profits tax liability
Profits after tax
Dividends
Undistributed profits
Capital consumption allowances
Net cash flow
72.6
104.5
42.1
62.4
109.3
171.7
84.5
121.5
47.2
74.4
119.8
194.1
92.5
144.1
52.7
91.4
131.0
222.3
91.3
142.0
51.5
90.5
125.4
215.9
88.7
139.2
52.3
86.9
130.4
217.3
94.0
148.3
52.8
95.5
132.8
228.3
96.1
146.9
54.4
92.5
135.2
227.7
102.4
158.0
56.7
101.3
137.4
238.7
77.6
127.2
58.6
68.6
139.3
207.9
85.2
137.2
59.7
77.5
141.4
218.9
SOURCE. Survey of Current Business (U.S. Department of Commerce).
A36
1.50
DomesticNonfinancialStatistics • January 1981
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1979
Account
1975
1976
1977
Q1
1 Current assets
1980
1978
Q2
Q3
Q4
Q2
Q1
759.0
826.8
902.1
1,030.0
1,081.0
1,108.2
1,169.5
1,200.9
1,235.2
1,233.8
82.1
19.0
272.1
315.9
69.9
88.2
23.4
292.8
342.4
80.1
95.8
17.6
324.7
374.8
89.2
104.5
16.3
383.8
426.9
98.5
102.7
17.4
408.1
451.4
101.4
100.1
18.6
421.1
465.2
103.2
103.7
15.8
453.0
489.4
107.7
116.1
15.6
456.8
501.7
110.8
110.2
15.1
471.2
519.5
119.3
111.4
13.9
464.2
525.7
118.7
7 Current liabilities
451.6
494.7
549.4
665.5
705.4
724.7
777.8
809.1
838.3
828.1
8 Notes and accounts payable
9 Other
264.2
187.4
281.9
212.8
313.2
236.2
373.7
291.7
391.3
314.1
406.4
318.3
438.8
339.0
456.3
352.8
467.9
370.4
463.1
364.9
307.4
332.2
352.7
364.6
375.6
383.5
391.7
391.8
397.0
405.7
1.681
1.672
1.642
1.548
1.532
1.529
1.504
1.484
1.474
1.490
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.
All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.
NOTE: For a description of this series, see "Working Capital of Nonfinancial
C o r p o r a t i o n s " in t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
SOURCE. Federal Trade Commission.
1.51
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Industry
1979
1980
1981
19802
Q3
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
Gas and other
9
10 Trade and services
11 Communication and other 1
Q1
Q2
Q3
Q42
Ql2
Q2 2
270.46
294.30
273.15
284.30
291.89
294.36
296.23
294.95
310.59
323.84
51.07
47.61
58.25
56.65
52.13
47.97
55.03
51.55
58.28
53.49
59.38
56.32
58.19
58.21
57.42
57.96
60.23
62.46
65.36
65.21
11.38
13.50
11.40
11.86
11.89
12.81
13.86
15.25
16.07
18.02
4.03
4.01
4.31
4.17
3.97
3.84
4.13
3.95
4.60
4.24
4.55
4.41
4.46
3.90
4.11
4.06
4.27
3.76
3.98
4.06
4.18
4.22
3.59
3.44
3.62
4.04
3.83
4.07
3.41
4.13
27.65
6.31
79.26
34.83
27.44
7.18
82.28
37.02
28.71
6.35
78.86
35.05
27.16
6.92
82.69
35.90
28.98
7.28
82.17
37.34
27.91
7.12
81.07
37.66
28.14
7.44
81.19
36.97
25.05
6.90
84.87
36.26
27.99
8.79
84.09
39.48
27.93
8.29
87.43
40.01
1. "Other" consists of construction; social services and membership organization;
and forestry, fisheries, and agricultural services.
Q4
2. Anticipated by business,
SOURCE. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1979
1974
Account
1975
1976
1977
1980
1978
Q3
Q4
01
Q2
03
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
Allother
36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0
38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3
62.3
68.1
130.4
18.7
111.7
79.6
81.6
89.2
104.3
122.4
9.7
20.7
8.0
22.2
6.3
23.7
5.9
29.6
4.9
26.5
5.5
9 Total assets
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
65.7
70.3
136.0
20.0
116.0
67.7
70.6
138.4
20.4
118.0
70.2
70.3
140.4
21.4
119.0
71.7
66.9
138.6
22.3
116.3
24.9
23.7
26.1
28.3
137.4
140.9
141.7
145.1
144.7
6.5
34.5
7.8
39.2
8.5
43.3
9.7
40.8
10.1
40.7
10.1
40.5
4.5
27.6
6.8
5.4
32.3
8.1
6.2
36.0
11.5
8.1
43.6
12.6
9.1
47.5
15.4
8.2
46.7
14.2
7.4
48.9
15.7
7.9
50.5
16.0
7.7
52.0
14.6
25.81
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Short-term, n.e.c
13 Long-term n.e.c
14 Other
15 Capital, surplus, and undivided profits
12.4
12.5
13.4
15.1
17.2
18.4
19.9
19.2
19.9
19.8
16 Total liabilities and capital
79.6
81.6
89.2
104.3
122.4
137.4
140.9
141.7
145.1
144.7
1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined.
NOTE. Components may not add to totals due to rounding.
1.53
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding
Sept. 30,
1981'
Changes in accounts
receivable
Extensions
Repayments
1980
1980
1980
July
Aug.
Sept.
July
Aug.
Sept.
July
Aug.
Sept.
1 Total
66,893
-599
-412
-321
15,187
15,545
14,808
15,786
15,957
15,129
2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial and
farm equipment
5 Loans on commercial accounts receivable and
factored commercial accounts receivable .
6 All other business credit
12,799
10,004
-363
-514
-232
-101
-221
-333
772
4,338
883
4,710
889
4,125
1,135
4,852
1,115
4,811
1,110
4,458
1. Not seasonally adjusted.
21,311
295
155
586
1,466
1,601
1,595
1,171
1,446
1,009
5,843
16,936
-194
177
-358
124
-827
474
6,479
2,132
6,349
2,002
5,938
2,261
6,673
1,955
6,707
1,878
6,765
1,787
A38
1.54
DomesticNonfinancialStatistics • January 1981
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1980
Item
1976
1977
1978
July
June
Sept.
Aug.
Nov.
Oct.
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 (percentper
7 FHLBB series3
8 HUD series4
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
81.3
58.0
74.1
28.4
2.21
12.24
89.0
63.7
73.5
28.9
2.13
12.11
88.6
61.5
71.2
27.7
2.12
11.84
83.7
58.7
72.2
27.6
2.10
11.95
84.0
61.3
75.0
28.2
2.16
12.20
77.1
56.1
75.2
27.6
2.15
12.62
8.99
8.99
9.01
8.95
9.54
9.68
12.66
12.45
12.51
12.45
12.25
13.25
12.35
13.70
12.60
14.10
14.70
8.82
8.17
8.68
8.04
9.70
8.98
11.85
11.04
12.39
11.53
13.54
12.34
14.26
12.84
14.38
12.91
14.47
13.55
8.99
9.11
8.73
8.98
9.77
10.01
12.35
12.93
12.65
12.80
13.92
13.66
14.77
14.45
14.94
14.70
15.54
15.30
annum)
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5
10 GNMA securities6
FNMA auctions7
11 Government-underwritten loans
12 Conventional loans
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
32,904
18,916
9,212
4,776
34,370
18,457
9,315
6,597
43,311
21,243
10,544
11,524
55,419
n.a.
n.a.
18,001
55,362
n.a.
n.a.
18,034
55,361
n.a.
n.a.
18,049
55,632
n.a.
n.a.
18,074
56,188
n.a.
n.a.
18,148
56,619
n.a.
n.a.
18,239
Mortgage transactions (during period)
17 Purchases
18 Sales
3,606
86
4,780
67
12,303
5
206
0
100
0
167
0
500
0
771
0
579
0
Mortgage commitments8
19 Contracted (during period)
20 Outstanding (end of period)
6,247
3,398
9,729
4,698
18,960
9,201
441
4,215
734
4,230
1,180
4,545
1,070
4,789
514
4,399
472
3,963
4,929.8
2,787.2
7,974.1
4,846.2
12,978
6,747.2
602.5
266.5
1,055.6
430.3
1,063.3
628.10
907.0
538.0
427.8
257.7
252.0
135.6
2,595.7
1,879.2
5,675.2
3,917.8
9,933.0
5,110.9
169.7
76.0
228.7
140.9
430.4
218.8
347.7
209.8
107.6
93.9
81.6
68.8
Mortgage holdings (end of period)10
25 Total
26 FHA/VA
27 Conventional
4,269
1,618
2,651
3,276
1,395
1,881
3,064
1,243
1,822
4,014
1,072
2,942
4,151
1,066
3,085
4,295
1,058
3,237
4,543
1,050
3,492
4,727
1,044
3,629
4,843
1,038
3,715
Mortgage transactions (during period)
28 Purchases
29 Sales
1,175
1,396
3,900
4,131
6,524
6,211
225
232
440
288
495
320
521
275
398
187
n.a.
93.7
Mortgage commitments11
30 Contracted (during period)
31 Outstanding (end of period)
1,477
333
5,546
1,063
7,451
1,410
577
1,246
708
1,386
476
1,300
218
934
222
726
180
653
14
15
16
FHA-insured
VA-guaranteed
Conventional
Auction of 4-month commitments to buy
Government-underwritten loans
Offered 9
Accepted
Conventional loans
23 Offered 9
24 Accepted
21
22
FEDERAL HOME LOAN MORTGAGE CORPORATION
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 g u a r a n t e e d , m o r t g a g e - b a c k e d , 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 4month commitments to purchase home mortgages, assuming prepayment in 12
years for 30-year mortgages. No adjustments are made for FNMA 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 FNMA-GNMA 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
1.55
A39
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1979
Type of holder, and type of property
1977
Q3
1 All holders
2 1- to 4-family
3 Multifamily
4 Commercial
5
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
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
26 Federal and related agencies
27
Government National Mortgage Association
28
1- to 4-family
29
Multifamily
1980
1979
1978
Q4
Q1
Q2
Q3
1,023,505
1,172,754
1,333,550
1,295,935
1,333,550
1,363,787
1,386,344
1,419,155
656,566
111,841
189,274
65,824
761,843
121,972
212,746
76,193
872,068
130,713
238,412
92,357
846,287
128,270
232,208
89,170
872,068
130,713
238,412
92,357
890,121
132,795
243,839
97,032
904,226
133,646
247,085
101,387
926,161
136,010
252,715
104,269
745,011
178,979
105,115
9,215
56,898
7,751
848,095
213,963
126,966
10,912
67,056
9,029
939,487
245,998
145,975
12,546
77,096
10,381
920,231
239,627
142,195
12,221
75,099
10,112
939,487
245,998
145,975
12,546
77,096
10,381
951,898
251,198
149,061
12,811
78,725
10,601
958,887
253,098
150,188
12,908
79,321
10,681
977,449
257,998
153,095
13,158
80,857
10,888
88,104
57,637
15,304
15,110
53
95,157
62,252
16,529
16,319
57
98,908
64,706
17,180
16,963
59
97,929
64,065
17,010
16,795
59
98,908
64,706
17,180
16,963
59
99,151
64,865
17,223
17,004
59
99,150
64,864
17,223
17,004
59
99,306
64,966
17,249
17,031
60
381,163
310,686
32,513
37,964
432,808
356,114
36,053
40,641
475,797
394,436
37,588
43,773
468,307
387,992
37,277
43,038
475,797
394,436
37,588
43,773
479,078
398,114
37,224
43,740
481,184
398,864
37,340
43,980
492,068
408,908
38,185
44,975
96,765
14,727
18,807
54,388
8,843
106,167
14,436
19,000
62,232
10,499
118,784
16,193
19,274
71,137
12,180
114,368
14,884
19,107
68,513
11,864
118,784
16,193
19,274
71,137
12,180
122,471
16,850
19,590
73,618
12,413
125,455
17,796
19,284
75,693
12,682
128,077
17,996
19,357
77,995
12,729
70,006
3,660
1,548
2,112
81,853
3,509
877
2,632
97,293
3,852
763
3,089
93,143
3,382
780
2,602
97,293
3,852
763
3,089
104,133
3,919
749
3,170
108,742
4,466
736
3,730
110,695
4,389
719
3,670
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
1,353
626
275
149
303
926
288
320
101
217
1,274
417
71
174
612
1,383
163
299
262
659
1,274
417
71
174
612
2,845
1,139
408
409
889
3,375
1,383
636
402
954
3,525
978
774
370
1,403
35
36
37
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
5,212
1,627
3,585
5,419
1,641
3,778
5,764
1,863
3,901
5,672
1,795
3,877
5,764
1,863
3,901
5,833
1,908
3,925
5,894
1,953
3,941
5,769
1,826
3,943
38
39
40
Federal National Mortgage Association
1- to 4-family
Multifamily
34,369
28,504
5,865
43,311
37,579
5,732
51,091
45,488
5,603
49,173
43,534
5,639
51,091
45,488
5,603
53,990
48,394
5,596
55,419
49,837
5,582
55,632
50,071
5,561
41
42
43
Federal Land Banks
1- to 4-family
Farm
22,136
670
21,466
25,624
927
24,697
31,277
1,552
29,725
29,804
1,374
28,430
31,277
1,552
29,725
33,311
1,708
31,603
35,574
1,893
33,681
36,837
1,985
34,852
44
45
46
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
3,276
2,738
538
3,064
2,407
657
4,035
3,059
976
3,729
2,850
879
4,035
3,059
976
4,235
3,210
1,025
4,014
3,037
977
4,543
3,459
1,084
70,289
44,896
43,555
1,341
88,633
54,347
52,732
1,615
119,278
76,401
74,546
1,855
110,648
69,357
67,535
1,822
119,278
76,401
74,546
1,855
124,632
80,843
78,872
1,971
129,647
84,282
82,208
2,074
135,356
89,452
87,276
2,176
6,610
5,621
989
11,892
9,657
2,235
15,180
12,149
3,031
14,421
11,568
2,853
15,180
12,149
3,031
15,454
12,359
3,095
16,120
12,886
3,234
16,659
13,318
3,341
18,783
11,397
759
2,945
3,682
22,394
13,400
1,116
3,560
4,318
27,697
14,884
2,163
4,328
6,322
26,870
14,972
1,763
4,054
6,081
27,697
14,884
2,163
4,328
6,322
28,335
14,926
2,159
4,495
6,755
29,245
15,224
2,159
4,763
7,099
29,245
15,224
2,159
4,763
7,099
138,199
72,115
20,538
21,820
23,726
154,173
82,567
21,393
22,837
27,376
177,492
96,037
23,436
24,941
33,078
171,913
92,580
22,921
24,447
31,965
177,492
96,037
23,436
24,941
33,078
183,153
99,012
23,936
25,493
34,712
189,068
102,357
24,558
25,922
36,231
195,655
106,340
25,353
26,724
37,238
47 Mortgage pools or trusts 2
48
Government National Mortgage Association
49
1- to 4-family
50
Multifamily
51
52
53
Federal Home Loan Mortgage Corporation
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
60
1- to 4-family
61 Multifamily
62 Commercial
63 Farm
1. Includes loans held by nondeposit trust companies but not bank trust departments.
2. Outstanding principal balances of mortgages backing securities insured or
guaranteed by the agency indicated.
3. 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 governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.
A40
1.56
Domestic Financial Statistics • January 1981
CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A
Millions of dollars
1980
Holder, and type of credit
1977
1978
1979
May
June
July
Aug.
Sept.
Oct.
Nov.
Amounts outstanding (end of period)
1 Total
230,564
273,645
312,024
305,788
304,399
303,853
305,763
306,926
307,222
308,051
112,373
44,868
37,605
23,490
7,089
2,963
2,176
136,016
54,298
44,334
25,987
7,097
3,220
2,693
154,177
68,318
46,517
28,119
8,424
3,729
2,740
149,238
72,101
44,139
24,970
8,782
3,948
2,610
147,883
73,118
42,995
24,786
8,823
4,175
2,619
146,555
73,909
42,644
24,620
8,991
4,500
2,634
146,548
74,433
43,347
24,918
9,141
4,710
2,666
146,362
74,823
43,562
25,301
9,266
4,872
2,740
145,895
74,985
43,518
25,703
9,611
4,736
2,774
145,147
75,690
43,606
26,469
9,687
4,662
2,790
By major type of credit
9 Automobile
10
Commercial banks
11
Indirect paper
12
Direct loans
13
Credit unions
14
Finance companies
82,911
49,577
27,379
22,198
18,099
15,235
101,647
60,510
33,850
26,660
21,200
19,937
116,362
67,367
38,338
29,029
22,244
26,751
17,058
65,035
37,435
27,600
21,107
30,916
116,456
64,224
36,948
27,276
20,558
31,674
116,125
63,344
36,233
27,111
20,392
32,389
116,868
63,177
36,047
27,130
20,728
32,963
116,781
62,734
35,768
26,966
20,831
33,216
116,657
62,350
35,572
26,778
20,810
33,497
116,517
61,848
35,284
26,564
20,852
33,817
15 Revolving
16
Commercial banks
17
Retailers
18
Gasoline companies
39,274
18,374
17,937
2,963
48,309
24,341
20,748
3,220
56,937
29,862
23,346
3,729
53,225
28,617
20,660
3,948
53,042
28,280
20,587
4,175
53,036
28,073
20,463
4,500
53,771
28,305
20,756
4,710
54,406
28,403
21,131
4,872
54,598
28,331
21,531
4,736
55,304
28,360
22,282
4,662
19 Mobile home
20
Commercial banks
21
Finance companies
22
Savings and loans
23
Credit unions
14,945
9,124
3,077
2,342
402
15,235
9,545
3,152
2,067
471
16,838
10,647
3,390
2,307
494
16,912
10,532
3,529
2,382
469
16,988
10,593
3,544
2,391
460
17,004
10,568
3,546
2,437
453
17,068
10,564
3,566
2,477
461
17,113
10,538
3,601
2,511
463
17,276
10,502
3,657
2,654
463
17,293
10,452
3,702
2,675
464
24 Other
25
Commercial banks
26
Finance companies
27
Credit unions
28
Retailers
29
Savings and loans
30
Mutual savings banks
93,434
35,298
26,556
19,104
5,553
4,747
2,176
108,454
41,620
31,209
22,663
5,239
5,030
2,693
121,887
46,301
38,177
23,779
4,773
6,117
2,740
118,593
45,054
37,656
22,563
4,310
6,400
2,610
117,913
44,786
37,900
21,977
4,199
6,432
2,619
117,688
44,570
37,974
21,799
4,157
6,554
2,634
118,056
44,502
37,904
22,158
4,162
6,664
2,666
118,626
44,687
38,006
22,268
4,170
6,755
2,740
118,691
44,712
37,831
22,245
4,172
6,957
2,774
118,937
44,487
38,171
22,290
4,187
7,012
2,790
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
Net change (during period) 3
31 Total
35,462
43,079
38,381
-2,677
-2,045
-1,199
489
1,055
702
839
18,645
5,949
6,436
2,654
1,309
132
337
23,641
9,430
6,729
2,497
7
257
518
18,161
14,020
2,185
2,132
1,327
509
47
-1,936
246
-986
-46
100
-47
-8
-1,783
744
-1,298
68
96
124
4
-1,749
439
-270
89
155
132
5
-682
387
465
160
5
136
18
-265
613
36
456
93
90
32
-336
454
63
134
246
98
43
-120
594
218
52
-14
72
37
By major type of credit
39 Automobile
40
Commercial banks
41
Indirect paper
42
Direct loans
43
Credit unions
44
Finance companies
15,204
9,956
5,307
4,649
2,861
2,387
18,736
10,933
6,471
4,462
3,101
4,702
14,715
6,857
4,488
2,369
1,044
6,814
-1,041
-1,008
-460
-548
-481
448
-1,026
-1,007
-601
-406
-636
617
-717
-1,083
-784
-299
-108
474
355
-344
-286
-58
215
484
84
-362
-282
-80
10
436
201
-348
-170
-178
18
531
245
-138
-44
-94
101
282
45 Revolving
46
Commercial banks
47
Retailers
48
Gasoline companies
6,248
4,015
2,101
132
9,035
5,967
2,811
257
8,628
5,521
2,598
509
-287
-241
1
-47
-95
-338
119
124
38
-259
165
132
281
-24
169
136
478
-81
469
90
273
-19
194
98
265
121
72
72
49 Mobile home
50
Commercial banks
51
Finance companies
52
Savings and loans
53
Credit unions
371
387
-187
101
70
286
419
74
-276
69
1,603
1,102
238
240
23
-50
-71
7
23
-9
58
26
12
29
-9
14
-23
-2
45
-6
33
-8
14
21
6
43
-22
30
35
0
141
-21
42
120
0
24
-33
44
11
2
13,639
4,287
3,749
3,505
553
1,208
337
15,022
6,322
4,654
3,559
-314
283
518
13,435
4,681
6,968
1,118
-466
1,087
47
-1,299
-616
-209
-496
-47
77
-8
-982
-464
115
-653
-51
67
4
-534
-384
-33
-156
-76
110
5
-180
-306
-111
244
-9
-16
18
450
200
147
26
-13
58
32
87
52
-119
45
-60
126
43
305
-70
268
115
-20
-25
37
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies
Mutual savings banks
54 Other
55
Commercial banks
56
Finance companies
57
Credit unions
58
Retailers
59
Savings and loans
60
Mutual savings banks
1. The Board's series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); 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 $70.9 billion at the end of 1979, $64.7 billion at the
end of 1978, $58.6 billion at the end of 1977, and $55.4 billion at the end of 1976.
^
These data have been revised
Consumer Debt
1.57
C O N S U M E R I N S T A L L M E N T C R E D I T Extensions and Liquidations
A41
A
Millions of dollars; monthly data are seasonally adjusted.
1980
Holder, and type of credit
1977
1978
1979
May
June
July
Aug.
Sept.
Oct.
Nov.
Extensions
257,600
297,668
324,777
22,093
22,349
23,997
26,176
27,064
27,365
25,991
117,896
41,989
34,028
42,183
4,978
14,617
1,909
142,433
50,505
38,111
44,571
3,724
16,017
2,307
154,733
61,518
34,926
47,676
5,901
18,005
2,018
9,785
4,320
1,575
4,072
508
1,700
133
9,892
4,439
1,318
4,186
518
1,847
149
10,098
4,809
2,305
4,148
582
1,902
153
11,107
5,155
3,085
4,263
454
1,941
171
11,671
5,355
2,752
4,596
539
1,965
186
11,977
5,323
2,872
4,291
695
2,009
198
11,432
4,852
2,795
4,250
444
2,024
194
By major type of credit
9 Automobile
10 Commercial banks
11
Indirect paper
12
Direct loans
13 Credit unions
14 Finance companies
75,641
46,363
25,149
21,214
16,616
12,662
87,981
52,969
29,342
23,627
18,539
16,473
93,901
53,554
29,623
23,931
17,397
22,950
5,533
2,745
1,600
1,145
817
1,971
5,550
2,815
1,490
1,325
707
2,028
6,068
2,771
1,329
1,442
1,197
2,100
7,400
3,606
1,866
1,740
1,570
2,224
7,518
3,713
2,035
1,678
1,455
2,350
7,544
3,791
2,135
1,656
1,457
2,296
7,117
3,552
1,962
1,590
1,402
2,163
15 Revolving
16 Commercial banks
17 Retailers
18 Gasoline companies
87,596
38,256
34,723
14,617
105,125
51,333
37,775
16,017
120,174
61,048
41,121
18,005
10,302
4,996
3,606
1,700
10,341
4,771
3,723
1,847
10,679
5,059
3,718
1,902
10,700
4,989
3,770
1,941
11,143
5,067
4,111
1,965
11,124
5,264
3,851
2,009
10,953
5,155
3,774
2,024
19 Mobile home
20
Commercial banks
21 Finance companies
22 Savings and loans
23 Credit unions
5,712
3,466
644
1,406
196
5,412
3,697
886
609
220
6,471
4,542
797
948
184
299
164
52
81
2
424
281
54
87
2
377
226
52
95
4
415
263
56
78
18
442
250
84
95
13
513
257
89
159
8
424
243
93
74
14
88,651
29,811
28,683
17,216
7,460
3,572
1,909
99,150
34,434
33,146
19,352
6,796
3,115
2,307
104,231
35,589
37,771
17,345
6,555
4,953
2,018
5,959
1,880
2,297
756
466
427
133
6,034
2,025
2,357
609
463
431
149
6,873
2,042
2,657
1,104
430
487
153
7,661
2,249
2,875
1,497
493
376
171
7,961
2,641
2,921
1,284
485
444
186
8,184
2,665
2,938
1,407
440
536
198
7,497
2,482
2,596
1,379
476
370
194
1 Total
2
3
4
5
6
7
8
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 1
Savings and loans
Gasoline companies
Mutual savings banks
24 Other
25 Commercial banks
26 Finance companies
27
Credit unions
28 Retailers
29 Savings and loans
30 Mutual savings banks
Liquidations
222,138
254,589
286,396
24,770
24,394
25,196
25,687
26,009
26,663
25,152
99,251
36,040
27,592
39,529
3,669
14,485
1,572
118,792
41,075
31,382
42,074
3,717
15,760
1,789
136,572
47,498
32,741
45,544
4,574
17,496
1,971
11,721
4,074
2,561
4,118
408
1,747
141
11,675
3,695
2,616
4,118
422
1,723
145
11,847
4,370
2,575
4,059
427
1,770
148
11,789
4,768
2,620
4,103
449
1,805
153
11,936
4,742
2,716
4,140
446
1,875
154
12,313
4,869
2,809
4,157
449
1,911
155
11,552
4,258
2,577
4,198
458
1,952
157
By major type of credit
39 Automobile
40 Commercial banks
41
Indirect paper
42
Direct loans
43 Credit unions
44 Finance companies
60,437
36,407
19,842
16,565
13,755
10,275
69,245
42,036
22,871
19,165
15,438
11,771
79,186
46,697
25,135
21,562
16,353
16,136
6,574
3,753
2,060
1,693
1,298
1,523
6,576
3,822
2,091
1,731
1,343
1,411
6,785
3,854
2,113
1,741
1,305
1,626
7,045
3,950
2,152
1,798
1,355
1,740
7,434
4,075
2,317
1,758
1,445
1,914
7,343
4,139
2,305
1,834
1,439
1,765
6,872
3,690
2,006
1,684
1,301
1,881
45 Revolving
46
Commercial banks
47 Retailers
48 Gasoline companies
81,348
34,241
32,622
14,485
96,090
45,366
34,964
15,760
111,546
55,527
38,523
17,496
10,589
5,237
3,605
1,747
10,436
5,109
3,604
1,723
10,641
5,318
3,553
1,770
10,419
5,013
3,601
1,805
10,665
5,148
3,642
1,875
10,851
5,283
3,657
1,911
10,688
5,034
3,702
1,952
49 Mobile home
50 Commercial banks
51 Finance companies
52 Savings and loans
53 Credit unions
5,341
3,079
831
1,305
126
5,126
3,278
812
885
151
4,868
3,440
559
708
161
349
235
45
58
11
366
255
42
58
11
363
249
54
50
10
382
271
42
57
12
399
272
54
60
13
372
278
47
39
8
400
276
49
63
12
75,012
25,524
24,934
13,711
6,907
2,364
1,572
84,128
28,112
28,492
15,793
7,110
2,832
1,789
90,796
30,908
30,803
16,227
7,021
3,866
1,971
7,258
2,496
2,506
1,252
513
350
141
7,016
2,489
2,242
1,262
514
364
145
7,407
2,426
2,690
1,260
506
377
148
7,841
2,555
2,986
1,253
502
392
153
7,511
2,441
2,774
1,258
498
386
154
8,097
2,613
3,057
1,362
500
410
155
7,192
2,552
2,328
1,264
496
395
157
31 Total
32
33
34
35
36
37
38
By major holder
Commercial banks
Finance companies
Credit unions
Retailers 1
Savings and loans
Gasoline companies
Mutual savings Banks
54 Other
55 Commercial banks
56 Finance companies
57 Credit unions
58 Retailers
59 Savings and loans
60 Mutual savings banks
1. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
A These data have b e e n revised,
A42
1.58
DomesticNonfinancialStatistics • January 1981
F U N D S R A I S E D IN U.S. C R E D I T M A R K E T S
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Transaction category, sector
1974
1975
1976
1977
1978
1978
1979
1980
1979
H2
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
Private domestic nonfinancial sectors
9
10
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations
14
Corporate bonds
191.3
187.4
210.8
200.7
271.9
261.1
338.5
335.4
400.3
398.2
394.9
390.6
378.9
373.8
384.5
387.1
416.1
409.3
380.5
377.7
408.2
402.3
325.1
316.5
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
37.4
38.8
-1.4
357.6
4.3
353.2
336.4
3.5
333.0
199.9
18.9
21.2
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
28.6
30.9
-2.3
351.9
2.8
349.1
338.6
2.8
335.8
198.8
16.0
22.4
46.1
46.6
-.5
362.1
5.9
356.2
333.0
4.1
328.9
201.1
21.8
19.9
62.8
63.4
-.6
262.3
8.6
253.7
234.2
6.3
227.8
168.1
17.8
33.3
39.5
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
109.1
8.9
25.7
16.2
133.0
44.2
50.6
10.9
27.3
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
109.8
8.1
26.0
16.6
137.0
48.3
48.2
12.0
28.4
108.5
9.7
25.4
15.9
127.8
39.0
52.9
9.7
26.2
72.3
7.2
20.9
16.6
59.7
-9.2
17.8
29.7
21.3
15
16
17
18
19
20
21
22
23
Home
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
34.8
6.9
15.1
5.0
62.0
9.9
31.7
6.6
13.7
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
24
25
26
27
28
29
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
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
15.4
94.7
336.4
15.5
165.0
25.8
15.8
114.3
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
338.6
13.0
168.1
23.5
15.3
118.7
333.0
18.0
161.0
28.1
16.0
109.8
234.2
16.0
91.4
23.6
9.2
94.1
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
.9
20.3
3.9
2.3
11.2
3.0
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
13.3
13.3
3.0
1.0
6.1
3.1
29.1
1.7
27.3
4.7
3.5
16.3
2.8
28.1
2.2
25.9
2.0
2.7
15.7
5.5
30
31
32
33
34
35
36
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
*
11.0
*
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 repurchase
agreements
Loans from Federal Home Loan Banks
By sector
50 Sponsored credit agencies
51 Mortgage pools
52 Private financial sectors
53 Commercial banks
54 Bank affiliates
55 Savings and loan associations
56
Other insurance companies
57
Finance companies
58
REITs
59
Open-end investment companies
39.2
12.7
24.1
54.0
81.4
87.4
60.3
80.7
82.1
87.0
87.8
59.2
23.1
16.6
5.8
.7
16.2
.3
15.9
2.1
-1.3
4.6
13.5
2.3
10.3
.9
-.8
.6
-1.4
2.9
2.3
-3.7
18.6
3.3
15.7
-.4
5.5
1.0
4.4
5.8
2.1
-3.7
26.3
7.0
20.5
-1.2
27.7
.9
26.9
10.1
3.1
-.3
41.4
23.1
18.3
52.4
24.3
28.1
29.9
6.8
23.1
38.5
21.9
16.6
44.3
24.3
20.1
45.8
21.5
24.2
40.0
1.7
38.3
7.5
.9
2.8
35.0
1.2
33.8
7.8
-1.2
-.4
30.4
.8
29.6
10.1
3.0
1.2
42.2
2.2
40.0
8.5
2.1
2.5
37.8
1.1
36.7
6.4
-.3
3.1
41.2
2.8
38.4
8.7
-.5
-.7
59.0
27.0
32.0
0
28.8
-.4
29.2
7.0
-1.9
-.2
45.8
25.1
20.7
0
13.3
8.5
4.8
10.7
-6.7
.3
3.8
6.7
1.1
-4.0
2.2
-2.0
9.6
4.3
14.6
12.5
18.4
9.2
9.5
5.8
13.5
13.2
15.7
11.8
23.0
7.8
13.8
10.5
-3.5
4.1
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
24.3
28.1
35.0
1.6
4.5
11.4
1.0
18.9
-.4
-2.1
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
21.5
24.2
41.2
1.3
6.2
9.9
1.0
23.5
-.6
-.3
27.0
32.0
28.8
1.8
2.9
12.9
.9
14.3
-.1
-3.9
25.1
20.7
13.3
2.3
4.5
-4.6
.8
5.5
-.9
5.7
0
0
0
0
0
0
All sectors
60 Total funds raised, by instrument
230.5
223.5
296.0
392.5
481.7
482.3
439.2
465.2
498.3
467.4
496.0
384.2
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
-.7
4.8
226.4
34.3
16.5
23.9
60.5
9.9
41.0
17.7
22.7
-.1
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
-2.1
7.6
476.8
89.9
18.9
32.9
158.6
44.2
52.5
40.5
39.5
-1.3
7.2
433.3
97.4
25.0
41.1
145.1
44.5
34.4
14.0
31.8
-.5
.1
465.5
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
5.8
461.9
74.5
16.0
34.1
159.8
48.3
48.6
41.1
39.4
-3.9
9.3
490.5
105.2
21.8
31.5
157.4
39.0
56.2
39.8
39.5
5.7
11.4
367.2
108.8
17.8
45.9
110.2
-9.2
20.9
41.9
30.8
Flow of Funds
1.59
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates
1977
Transaction category, or sector
1974
1975
1977
1976
1978
1980
1979
1978
1979
H2
1 Total funds advanced in credit markets to nonfinancial
sectors
HI
H2
HI
H2
HI
187.4
200.7
261.1
355.4
398.2
390.6
373.8
387.1
409.3
377.7
402.3
316.5
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
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
80.1
2.0
36.1
9.2
32.8
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
47.6
-22.1
32.6
7.8
29.2
112.5
26.2
39.6
10.5
36.3
104.7
24.8
33.5
4.1
42.3
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1
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
22.5
57.5
7.7
-7.7
52.4
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
23.8
49.9
.9
-27.0
45.8
21.3
65.2
14.5
11.7
59.0
32.2
44.0
14.3
14.2
45.8
Private domestic funds advanced
1? Total net advances
13 U.S. government securities
14 State and local obligations
15 Corporate and foreign bonds
16 Residential mortgages
17 Other mortgages and loans
18 LESS: Federal Home Loan Bank advances
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
362.9
87.9
18.9
25.6
81.8
157.9
9.2
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
375.9
96.6
16.0
26.9
85.1
159.1
7.8
348.8
79.1
21.8
24.3
78.5
155.6
10.5
257.7
83.9
17.8
31.5
45.9
82.6
4.1
Private financial intermediation
19 Credit market funds advanced by private financial
institutions
20 Commercial banking
21 Savings institutions
22 Insurance and pension funds
23 Other finance
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
291.4
121.1
56.3
70.4
43.6
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
20.8
308.2
124.6
57.7
75.4
50.6
274.5
117.6
54.9
65.5
36.6
231.3
57.3
28.8
84.6
60.7
24 Sources of funds
Private domestic deposits
25
26 Credit market borrowing
27 Other sources
Foreign funds
28
Treasury balances
29
Insurance and pension reserves
30
Other, net
31
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
291.4
136.7
33.8
120.9
26.3
.4
49.0
45.2
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
308.2
121.7
38.4
148.1
49.4
5.1
53.9
39.6
274.5
151.6
29.2
93.7
3.2
-4.3
44.0
50.8
231.3
149.7
4.8
76.8
-16.5
-2.0
59.8
35.4
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
105.4
57.8
-2.5
12.2
10.7
27.1
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
106.1
64.1
-2.3
7.1
12.5
24.7
103.5
51.5
-2.7
17.2
9.0
28.5
31.2
14.6
-3.4
5.3
-8.0
22.6
38 Deposits and currency
Security RPs
39
40 Money market fund shares
41 Time and savings accounts
Large at commercial banks
42
Other at commercial banks
43
44
At savings institutions
Money
45
Demand deposits
46
Currency
47
73.8
-2.2
2.4
65.4
32.4
11.3
21.8
8.2
1.9
6.3
98.1
.2
1.3
84.0
-15.8
40.3
59.4
12.6
6.4
6.2
131.9
2.3
113.5
-13.2
57.6
69.1
16.1
8.8
7.3
149.5
2.2
.2
121.0
23.0
29.0
69.0
26.1
17.8
8.3
151.8
7.5
6.9
115.2
45.9
8.2
61.1
22.2
12.9
9.3
144.7
6.6
34.4
84.7
.4
39.3
45.1
18.9
148.7
9.8
6.1
110.7
33.9
18.4
58.5
22.1
11.6
10.5
154.8
5.1
7.7
119.8
57.9
-1.9
63.8
22.3
14.2
8.1
131.1
18.5
30.2
71.4
-25.3
41.3
55.4
10.9
1.6
9.3
158.1
-5.3
38.6
97.9
26.0
37.3
34.7
26.8
20.3
6.5
158.7
5.3
61.9
91.6
-11.0
7.9
154.5
.2
.9
126.7
49.6
11.4
65.7
26.8
16.1
10.8
48 Total of credit market instruments, deposits and
currency
7
3
4
5
6
7
8
9
10
11
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
*
11.0
60.8
41.8
-.1
-9.2
9.0
121.0
143.9
171.4
197.0
223.2
250.0
218.6
209.8
236.6
237.1
261.6
189.9
Public support rate (in percent)
Private financial intermediation (in percent)
Total foreign funds
28.7
80.0
21.5
22.2
72.2
-2.6
20.8
84.4
10.6
25.4
92.5
40.5
27.5
90.0
44.0
20.5
80.3
18.6
27.9
88.5
51.2
26.5
93.5
36.3
28.5
86.6
51.8
12.6
82.0
22.4
28.0
78.7
14.9
33.1
89.8
-2.2
MEMO: Corporate equities not included above
52 Total net issues
53 Mutual fund shares
Other equities
54
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
5.5
-2.1
7.6
5.9
-1.3
7.2
-.4
-.5
.1
7.9
-1.5
9.4
5.5
-.3
5.8
5.4
-3.9
9.3
17.0
5.7
11.4
5.8
-1.7
9.6
1.1
12.3
-.4
7.4
-3.4
7.6
-3.8
15.7
-10.2
8.1
-2.2
.4
-.8
14.7
-6.8
12.5
-7.0
18.9
-13.5
16.7
.3
49
50
51
55 Acquisitions by financial institutions
56 Other net purchases
NOTES BY LINE NUMBER.
1.
2.
6.
11.
12.
17.
25.
26.
28.
29.
Line 2 of p. A-42.
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, 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
Includes farm and commercial mortgages.
Sum of lines 39, 40, 41, and 46.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainlv retained earnings and net miscellaneous liabilities.
32. Line 1 2 less line 19 plus line 26.
*
33-37. Lines 13-17 less amounts acquired by private finance. Lifie 37 includes
mortgages.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. 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.
A44
2.10
Domestic Nonfinancial Statistics • January 1981
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1980
Measure
1977
1978
1979
Apr.
May
June
July
Aug.
Sept.
Oct.'
Nov.
Dec. e
1 Industrial production 1
138.2
146.1
152.5
148.3
144.0
141.5
140.4
141.8
144.1'
146.8
149.2
150.7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
137.9
135.9
145.3
123.0
145.1
138.6
144.8
142.2
149.1
132.8
154.1
148.3
150.0
147.2
150.8
142.2
160.5
156.4
146.6
143.1
145.3
145.6
150.8
151.0
143.7
142.3
142.4
144.0
146.2
144.3
142.5
142.4
142.1
142.6
143.5
140.0
142.8
142.8
142.0
142.9
144.5
136.5
143.8
143.9'
142.7
142.9
147.6
138.6
145.3'
143.9'
144.3'
143.2'
150.6'
142.4'
147.1
145.7
146.6
144.5
152.4
146.4
148.7
147.2
148.1
146.1
154.0
150.0
149.6
148.0
148.4
147.4
155.4
152.4
138.4
146.8
153.6
147.9
143.4
140.3
139.1
140.6
143.4'
146.4
148.9
150.3
81.9
82.7
84.4
85.6
85.7
87.4
80.3
82.1
77.6
78.3
75.7
75.7
74.9
73.7
75.5
74.6
76.7'
76.4'
78.1
78.4
79.3
80.2
79.8
81.2
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent) 1 - 2
9 Manufacturing
10 Industrial materials industries
11 Construction contracts (1972 = 100)3
160.5
174.3
181.5
130.0
125.0
145.0
148.0
192.0
163.0
167.0
210.0
n.a.
12 Nonagricultural employment, total 4
13 Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16 Service-producing
17 Personal income, total
18 Wages and salary disbursements
19
Manufacturing
20 Disposable personal income5
125.3
104.5
101.2
98.8
136.7
244.4
230.2
198.3
240.9'
131.4
109.8
105.3
102.8
143.2
274.1
258.1
222.4
268.7'
136.0
114.0
107.9
104.9
148.1
307.1
287.2
246.8
301.5'
138.2
112.1
106.1
101.7
152.6
330.7
306.2
257.8
137.5
110.5
104.3
99.1
152.3
331.8
306.4
254.4
327.7'
136.8
109.1
102.9
97.4
152.1
333.6
307.0
252.9
136.6
108.0
102.0
96.2
152.3
339.0
307.6
252.8
137.0
108.6
102.5
97.0
152.6
342.0
311.1
255.9
338.0'
137.4
109.3
103.1
97.7
152.7
345.8
314.1
260.2
137.9
110.0
103.7
100.7
153.1
349.5
318.4
264.3
138.2
110.7
104.3
99.1
153.2
n.a.
n.a.
n.a.
138.5
111.2
104.6
99.5
153.4
n.a.
n.a.
n.a.
na
21 Retail sales6
229.8
253.8
281.6
286.6
285.0
290.4
299.1
301.0
306.0
308.0
313.1
308.9
Prices7
22 Consumer
23 Producer finished goods
181.5
180.6
195.4
194.6
217.4
216.1
242.5
240.5
244.9
241.6
247.6
243.0
247.8
246.6
249.4
249.0
251.7
248.9
253.9
252.2
256.2
235.2
n.a.
254.7
1. The industrial production and capacity utilization series have been revised
back to January 1979.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Commerce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
Monthly data for lines 12 through 16 reflect March 1979 benchmarks; only seasonally adjusted data are presently available.
2.11
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the
Survey of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
Series
Q1
02
Q3'
Q4
Output (1967 = 100)
1 Manufacturing
2 Primary processing
3 Advanced processing
152.8
160.5
148.8
143.9
145.0
143.3
141.0
139.6
141.8
4 Materials
156.3
145.1
155.0
117.1
179.3
187.5
120.6
146.1
233.6
130.8
140.6
100.6
166.0
171.9
116.4
142.1
208.3
130.0
5 Durable goods
6
Metal materials
7 Nondurable goods
Textile, paper, and chemical
8
9
Textile
10
Paper
11
Chemical
12 Energy materials
01
Q2
Q3
Q4
Capacity (percent of 1967 output)
148.5
153.0
146.2
02
Q1
0 3
Utilization rate (percent)
183.3
188.5
180.5
184.8
190.0
182.0
186.3
191.5
183.5
187.8
193.0
185.0
83.4
85.1
82.5
77.9
76.3
78.7
75.7
72.9
77.3
139.2
182.8
184.3
185.8
187.2
85.5
78.7
74.9
131.5
86.6
161.9
165.6
113.4
142.9
197.9
129.6
187.2
140.7
199.8
208.3
138.8
154.7
260.4
151.1
188.6
140.8
202.0
211.0
139.2
156.0
264.6
151.8
190.0
140.9
204.3
213.7
139.6
157.4
268.7
152.6
191.5
82.8
83.2
89.7
90.0
86.9
94.5
89.7
86.6
74.6
71.4
82.2
81.5
83.7
91.0
78.7
85.6
69.2'
61.5'
79.2
77.5'
81.2
90.7'
73.6'
85.0
175.1
182.3
129.1
206.5
216.2
0 4
Labor Market
2.11
A45
Continued
Previous cycle1
Latest cycle2
1979
Low
Dec.
1980
Series
High
Low
High
June
July
Aug.
Sept/
Nov/
Oct/
Dec.
Capacity utilization rate (percent)
13 Manufacturing
88.0
69.0
87.2
74.9
84.1
75.7
74.9
75.5
76.7
78.1
79.3
79.8
14
15
93.8
85.5
68.2
69.4
90.1
86.2
70.9
77.1
86.3
82.8
72.7
77.4
70.9
77.1
72.5
77.1
75.2
77.7
77.6
78.5
79.6
79.2
80.6
79.3
92.6
91.5
98.3
69.4
63.6
68.6
88.8
88.4
96.0
73.7
68.0
58.4
86.1
83.6
84.8
75.7
70.8
67.0
73.7
68.0
58.4
74.6
69.1
62.2
76.4
70.4
63.9
78.4
73.4
71.5
80.2
76.2
80.4
81.2
77.6
Primary processing
Advanced processing
16 Materials
17 Durable goods
Metal materials
18
19
20
21
22
23
Nondurable goods
Textile, paper, and chemical
Textile
Paper
Chemical
94.5
95.1
92.6
99.4
95.5
67.2
65.3
57.9
72.4
64.2
90.9
91.4
90.1
97.6
91.2
76.8
74.5
79.5
88.1
69.6
90.8
91.4
89.3
97.6
90.5
78.7
77.1
81.8
91.6
72.7
76.8
74.5
82.0
88.1
69.6
78.2
76.4
79.5
90.2
72.5
82.7
81.6
82.0
93.9
78.7
84.4
83.8
81.8
93.5
82.1
84.7
84.2
81.6
93.7
82.5
85.2
84.9
24
Energy materials
94.6
84.8
88.8
83.2'
86.0
85.8
85.6
85.2
84.1
83.2
84.5
85.0
1. Monthly high 1973; monthly low 1975.
2. Preliminary; monthly highs December 1978 through January 1980; monthly
lows July 1980 through October 1980.
2.12
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1980
1977
Category
1978
1979
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
158,559
2 Labor force (including Armed Forces) 1 ..
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
161,058
163,620
166,105
166,391
166,578
166,789
167,005
167,201
99,534
97,401
102,537
100,420
104,996
102,908
106,634
104,542
107,302
105,203
107,139
105,025
107,155
105,034
107,301
105,180
107,439
105,320
87,302
3,244
91,031
3,342
93,648
3,297
93,346
3,191
93,739
3,257
93,826
3,180
93,765
3,442
93,851
3,324
94,054
3,342
6,855
7.0
59,025
6,047
6.0
58,521
5,963
5.8
58,623
8,006
7.7
59,471
8,207
7.8
59,091
8,019
7.6
59,439
7,827
7.5
59,633
8,005
7.6
59,704
7,924
7.5
59,762
82,423
86,446
89,497
90,047
89,867
90,142
90,384
90,710'
90,917r
91,122
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
20,979
958
4,642
5,154
20,140
4,964
17,047
15,613
20,014
1,029
4,379
5,134
20,459
5,150
17,652
16,230
19,828
1,013
4,322
5,114
20,506
5,167
17,760
16,157
19,940
1,013
4,359
5,129
20,589
5,180
17,788
16,144
20,044
1,028
4,404
5,124
20,620
5,194
17,861
16,109
20,157'
1,037'
4,442'
5,147'
20,641'
5,214'
17,913'
16,159'
20,282'
1,054'
4,468'
5,133'
20,647'
5,227'
17,951'
16,155'
20,349
1,070
4,497
5,135
20,626
5,240
18,025
16,180
n. a.
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment 3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
....
1. Persons 16 years of age and over. Monthly figures, which are based on sample
data, relate to the calendar week that contains the 12th day; annual data are
averages of monthly figures. By definition, seasonality does not exist in population
figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.13
Domestic Nonfinancial Statistics • January 1981
INDUSTRIAL PRODUCTION
Indexes and Gross Value'
Monthly data are seasonally adjusted.
Grouping
1967
proportion
1979
average
1979
Dec.
Jan.
Mar.
Apr
May
June
July
Aug.
Sept.
Oct.
NOV.P
Index (1967 = 100)
MAJOR MARKET
100.00
152.5
152.5
152.7
152.1
148.3
144.0
141.5
140.4
141.8
144.1
146.8
149.2
60.71
AIM
27.68
20.14
12.89
39.29
150.0
147.2
150.8
145.8
160.5
156.4
149.8
147.2
148.6
145.2
159.6
156.6
149.9
147.0
147.9
145.8
160.8
157.0
150.0
147.7
148.6
146.6
158.3
155.3
146.6
145.4
145.3
145.6
150.8
151.0
143.7
143.1
142.4
144.0
146.2
144.3
142.5
142.3
142.1
142.6
143.5
140.0
142.8
142.4
142.0
142.9
144.5
136.5
143.8
142.8
142.7
142.9
147.6
138.6
145.3
143.9
144.3
143.2
150.6
142.4
147.1
145.7
146.6
144.5
152.4
146.4
148.7
147.2
148.1
146.1
154.0
150.0
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
155.8
167.7
154.3
136.7
201.5
142.3
141.8
121.4
110.2
200.3
142.3
131.3
108.7
98.0
188.5
144.1
141.0
122.0
114.9
189.1
136.3
126.3
102.3
97.1
187.2
128.8
118.5
92.6
88.4
184.0
128.2
121.6
97.1
95.7
183.7
128.3
129.2
106.4
105.2
186.9
128.6
121.5
94.1
91.3
191.1
132.7
130.6
105.5
98.0
194.2
139.6
141.8
120.2
110.7
196.8
142.4
145.4
124.2
114.3
199.3
13
14
15
16
17
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
5.06
1.40
1.33
1.07
2.59
149.2
127.4
129.3
173.0
151.1
149.4
129.8
135.5
170.8
149.4
148.5
128.9
130.0
170.9
149.8
145.8
122.1
125.0
169.1
149.0
142.0
114.8
117.5
165.8
146.8
134.6
102.8
106.0
154.2
143.8
132.0
105.6
108.5
146.7
140.2
127.7
102.3
103.4
136.1
138.1
132.6
114.2
114.2
141.1
139.1
134.0
116.3
117.6
146.1
138.6
138.3
123.5
125.6
150.2
141.5
140.8
126.9
129.5
154.1
142.8
18 Nondurable consumer goods
19 Clothing
20 Consumer staples
21
Consumer foods and tobacco
Nonfood staples
22
Consumer chemical products
23
24
Consumer paper products
Consumer energy products
25
Residential utilities
26
19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45
148.8
131.9
153.5
145.0
163.4
205.5
120.8
152.2
163.8
149.3
131.3
154.3
145.8
164.3
207.8
121.0
152.4
165.0
150.1
130.2
155.6
146.9
165.8
210.5
124.1
151.5
161.9
150.3
131.8
155.5
147.3
165.0
208.9
121.6
152.7
169.6
148.8
128.7
154.5
146.2
164.0
206.9
120.4
152.8
172.5
147.7
127.9
153.2
146.1
161.5
203.0
120.2
150.1
169.8
147.6
126.7
153.4
146.2
161.7
202.6
120.6
150.9
170.1
147.4
122.5
154.3
146.4
163.6
204.3
121.5
153.5
176.5
148.3
123.6
155.1
146.0
165.7
209.3
122.0
153.9
178.6
148.9
122.1
156.3
147.0
167.1
213.0
122.3
154.0
178.3
149.4
126.1
155.9
147.5
165.6
210.2
124.8
150.9
174.9
Equipment
27 Business
28 Industrial
29
Building and mining
Manufacturing
30
31
Power
12.63
6.77
1.44
3.85
1.47
171.3
152.2
206.3
130.3
156.3
174.1
153.2
205.0
132.1
157.8
174.9
157.2
222.1
132.6
157.9
176.1
159.3
235.6
133.1
153.2
174.2
159.3
239.5
131.9
152.3
171.9
157.8
242.2
129.5
149.1
169.8
155.2
241.0
126.1
147.1
170.1
154.8
244.4
126.0
142.0
170.3
154.5
243.6
124.4
145.9
170.5
154.2
243.4
123.9
146.1
171.8
154.3
244.3
123.6
146.1
173.4
155.8
249.3
124.1
146.9
5.86
3.26
1.93
67
193.4
228.1
151.6
144.9
198.1
237.2
151.9
141.0
195.2
238.2
142.8
137.1
195.5
240.4
142.5
129.7
191.5
235.6
143.0
116.4
188.2
232.0
136.3
124.6
186.7
228.8
138.0
121.6
187.8
229.0
140.9
122.5
188.4
233.6
138.4
112.7
189.4
237.2
133.8
116.8
192.0
240.5
135.0
120.2
193.9
242.0
137.4
122.4
36 Defense and space
7.51
93.4
96.7
97.0
97.1
97.6
97.2
96.8
97.2
96.9
97.4
98.5
100.2
Intermediate products
37 Construction supplies
38 Business supplies
39 Commercial energy products
6.42
6.47
1.14
158.0
163.1
172.0
155.7
163.5
173.8
156.4
165.1
172.4
152.3
164.3
174.1
139.4
162.0
174.8
133.0
159.4
172.0
128.5
158.4
168.7
128.6
160.4
172.1
133.1
161.9
173.7
137.4
163.6
175.2
140.5
164.2
174.5
143.1
164.8
175.0
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
157.8
137.1
189.9
150.1
124.1
155.8
125.1
196.7
147.8
118.1
156.0
120.8
199.8
148.5
118.8
154.2
120.3
199.2
145.5
116.6
148.2
110.6
195.8
139.8
109.3
139.8
100.1
190.8
130.5
100.0
133.8
96.0
182.5
125.0
95.9
129.0
93.9
177.6
118.9
84.7
131.3
98.1
176.3
122.4
89.4
134.2
104.2
176.0
125.4
91.7
140.2
110.8
178.5
133.0
102.0
145.9
115.5
183.3
139.6
113.0
45 Nondurable goods materials
46 Textile, paper, and chemical materials .
47
Textile materials
Paper materials
48
Chemical materials
49
50
Containers, nondurable
51 Nondurable materials n.e.c
10.47
7.62
1.85
1.62
4.15
1.70
1.14
175.9
183.7
121.0
143.5
227.4
167.4
136.8
180.2
189.2
123.8
150.1
233.6
168.2
138.8
181.0
189.3
120.1
148.2
236.3
172.7
137.5
177.0
185.2
120.7
144.2
230.1
167.1
137.4
173.2
180.7
117.7
141.2
224.3
166.8
133.0
165.2
171.5
117.6
141.7
207.3
155.8
136.4
159.6
163.4
114.0
143.4
193.3
157.7
136.8
156.2
158.5
114.4
138.4
186.1
159.0
136.6
159.8
163.2
142.0
194.9
158.8
137.9
169.7
175.1
114.7
148.2
212.6
167.2
137.2
173.8
180.6
114.5
148.1
222.9
168.6
135.7
174.9
182.0
114.3
148.8
225.2
168.9
136.5
52 Energy materials
53 Primary energy
54
Converted fuel materials
8.48
4.65
3.82
128.9
113.5
147.7
129.4
113.7
148.5
130.0
114.4
149.0
130.9
115.6
149.6
130.1
116.4
146.9
129.6
116.2
145.8
130.4
117.3
146.4
130.4
115.6
148.4
130.0
114.0
149.4
128.4
114.3
145.4
127.4
113.8
143.9
129.4
114.5
147.6
Supplementary groups
55 Home goods and clothing
56 Energy, total
57 Products
58 Materials
9.35
12.23
3.76
8.48
141.3
137.9
158.2
128.9
141.1
138.4
158.9
129.4
140.1
138.6
157.8
130.0
139.4
139.6
159.1
130.9
135.9
139.1
159.5
130.1
131.5
137.9
156.7
129.6
129.5
138.4
156.3
130.4
125.3
139.2
159.1
130.4
128.5
139.2
159.9
130.0
128.5
138.2
160.5
128.4
132.7
136.8
158.0
127.4
134.5
138.7
159.7
129.4
1 Total index
2 Products
3 Final products
Consumer goods
4
5
Equipment
6 Intermediate products
7 Materials
32
33
34
35
Commercial transit, farm
Commercial
Transit
Farm
For notes see opposite page.
111.0
150.3
156.8
147.8
167.1
210.9
126.3
153.1
Dec.e
Output
2.13
A47
Continued
Grouping
SIC
code
1967
proportion
1979
Avg.
1980
1979
Dec.
Jan.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Index (1967 = 100)
MAJOR INDUSTRY
12.05
6.36
5.69
3.88
87.95
35.97
51.98
144.7
125.5
166.0
185.8
153.6
164.0
146.4
148.2
131.4
166.9
186.0
153.2
165.3
144.8
148.2
133.5
164.8
183.4
153.4
166.0
144.7
151.4
133.0
172.0
192.4
152.1
164.7
143.4
150.1
133.1
169.1
187.9
147.9
161.6
138.4
149.6
133.4
167.7
186.0
143.4
158.0
133.3
150.1
132.9
169.3
188.7
140.3
155.3
129.9
150.1
130.6
171.8
192.4
139.2
154.7
128.3
150.5
129.6
173.8
195.4
140.6
156.9
129.4
150.5
130.5
172.7
193.9
143.4
160.3
131.7
149.9
132.0
169.9
189.6
146.4
161.9
135.6
151.8
134.9
170.7
154.4
137.4
173.4
148.9
163.6
138.8
150.3
165.2
139.9
10
11.12
13
14
.51
.69
4.40
.75
127.0
135.6
121.7
137.6
136.9
143.4
127.2
141.4
137.6
141.0
129.9
144.6
132.7
137.2
131.8
136.0
123.5
143.4
132.5
133.1
120.8
145.0
133.9
128.1
120.0
150.0
133.2
123.9
83.1
149.8
134.3
123.7
71.2
154.9
133.6
123.5
73.1
148.9
134.7
128.2
89.1
145.7
135.4
129.0
100.5
151.6
137.1
130.5
159.7
137.9
8.75
.67
2.68
3.31
3.21
147.5
117.8
145.0
134.4
151.0
148.4
116.6
148.0
131.1
155.7
148.5
118.7
143.4
131.5
157.4
149.3
122.2
142.0
136.1
152.7
147.8
121.9
139.9
131.3
148.2
149.5
116.2
137.1
128.6
145.7
149.0
113.9
133.6
127.2
146.2
148.9
119.6
132.5
121.5
143.6
148.3
117.4
132.6
123.8
147.1
148.6
119.1
133.0
126.7
152.3
149.4
123.1
134.1
128.1
153.4
135.8
15 Apparel products
16 Paper and products
20
21
22
23
26
154.0
155.5
17
18
19
20
21
27
28
29
30
31
4.72
7 74
1.79
2.24
.86
136.9
211.8
143.9
272.2
71.7
137.8
216.8
145.4
263.8
71.2
138.9
218.0
147.5
265.5
74.2
139.2
213.6
140.7
264.4
72.8
136.5
209.1
137.4
261.8
69.9
135.5
199.2
133.0
248.1
70.1
135.4
191.1
131.3
242.9
68.5
138.6
190.3
130.5
242.5
67.8
140.3
197.8
126.7
245.9
67.7
140.3
206.8
130.5
253.1
67.2
141.5
209.2
129.1
258.1
70.2
143.2
212.7
131.8
260.4
71.0
145.1
19.91
24
25
32
3.64
1.64
1.37
2.74
75.2
136.9
161.5
163.9
77.5
132.4
161.0
163.8
77.1
131.6
160.8
165.0
76.9
25.3
159.5
156.4
77.5
105.2
157.1
148.8
77.9
104.5
149.5
140.8
77.5
109.7
143.1
134.5
77.1
112.8
138.6
134.2
77.2
121.7
141.1
135.7
77.1
122.6
144.8
141.4
79.1
122.2
147.2
144.2
79.9
125.4
148.0
146.7
80.5
33
331.2
34
35
36
6.57
4.21
5.93
9.15
8.05
121.3
113.2
148.5
163.7
175.0
115.3
106.6
146.2
163.0
181.6
116.4
107.2
145.0
167.1
181.7
113.7
105.9
145.5
166.5
179.2
106.4
97.4
141.4
163.2
177.0
96.1
84.4
133.2
162.1
171.4
90.4
75.4
126.1
158.3
166.6
81.7
68.1
123.8
158.5
165.0
86.0
75.3
125.8
158.8
166.7
90.1
79.8
129.0
159.1
167.5
100.8
93.3
132.8
160.5
170.0
112.4
107.1
134.3
161.7
172.3
116.7
37
371
9.27
4.50
135.4
159.9
127.3
137.1
122.1
126.2
123.8
130.1
115.1
114.7
109.8
105.9
110.0
106.7
110.7
107.9
108.3
104.4
112.9
113.4
118.8
124.2
121.8
129.2
120.6
126.7
372-9
38
39
4.77
2.11
1.51
112.2
174.9
154.7
118.1
175.0
153.7
118.3
175.9
153.8
117.8
173.5
152.8
115.5
173.8
151.2
113.5
171.0
147.3
113.1
169.2
43.7
113.4
167.5
144.7
111.9
167.6
144.2
112.3
167.4
142.8
113.6
169.6
145.0
114.8
170.9
147.5
114.9
172.6
149.1
3
Utilities
7
Durable
Mining
8 Metal
9 Coal
10 Oil and gas extraction
Nondurable
manufactures
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products
Leather and products
....
Durable manufactures
22 Ordnance, private and
government
23 Lumber and products
24 Furniture and fixtures
25 Clay, glass, stone products
26
27
28
29
30
...
. .
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery
Electrical machinery
31 Transportation equipment
32 Motor vehicles and parts
33 Aerospace and miscellaneous
transportation equipment
34 Instruments
35 Miscellaneous manufactures
149.5
135.4
135.7
162.1
174.2
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total
507.4
625.3
619.7
615.8
619.0
599.5
588.6
585.0
586.7
585.9
593.3
604.0
611.4
613.6
37 Final
38 Consumer goods
39
Equipment ..
40 Intermediate
390.92
277.52
113.42
116.62
480.8
327.1
153.6
144.6
476.1
322.1
154.0
143.6
471.2
317.6
153.6
144.6
475.9
321.3
154.6
143.1
464.5
312.5
152.0
135.0
457.3
306.3
151.0
131.3
455.6
305.8
149.8
129.4
456.9
307.7
149.2
129.9
453.0
305.1
147.9
132.9
458.0
309.0
149.0
135.3
467.0
316.1
150.9
137.0
473.0
320.1
152.9
138.4
473.9
321.0
153.0
139.6
1. The industrial production series has been revised back to January 1979.
2. 1972 dollars.
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.
A48
2.14
Domestic Nonfinancial Statistics • January 1981
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1980
Item
1977
1978
1979
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
1,677
1,125
551
1,801
1,183
618
1,552
981
570
789
473
316
825
495
330
1,078
628
450
1,236
781
455
1,361
857
504
1,564
914
650
1,333
819
514
1,371
794
577
4 Started
5
1-family
6
2-or-more-family
1,987
1,451
536
2,020
1,433
587
1,745
1,194
551
1,030
628
402
906
628
278
1,223
757
466
1,265
869
396
1,429
1,003
426
1,541
1,059
482
1,561
1,037
524
1,555
987
568
7 Under construction, end of period 1 ..
1-family
8
9
2-or-more-family
1,208
730
478
1,310
765
546
1,140
639
501
978
535
443
911
495
416
871
474
397
851
473
378
890'
517'
373'
867
499
368
843
474
369
n.a.
n.a.
n.a.
1,656
1,258
399
1,868
1,369
499
1,855
1,286
570
1,897
1,135
762
1,536
970
566
1,469
886
583
1,502
876
626
1,274'
807'
467'
1,251
751
500
1,405
917
488
n.a.
n.a.
n.a.
277
276
277
201
162
163
215
206
238
246
n.a.
820
408
818
419
709
402
345
364
458
351
544
340
646
333
632'
330
570
336
545
335
577
338
49.0
55.8
62.7
62.8
63.2
65.4
64.4
63.2
68.7
66.0
68.0
54.4
62.7
71.9
74.1
73.1
76.3
76.8
76.5'
80.6
78.1
83.2
3,572
3,905
3,742
2,420
2,310
2,480
2,920
3,030
3,380
3,300
3,020
42.8
47.1
48.7
55.1
55.5
64.0
60.4
70.6
61.2
71.2
63.4
75.7
64.1
75.7
64.9
76.2
64.2
75.5
62.7
73.4
54.3
74.9
10 Completed
11
1-family
12 2-or-more-family
13 Mobile homes shipped
14
15
16
17
Merchant builder activity in 1-family
units
Number sold
Number for sale, end of period 1
Price (thousands of dollars)2
Median
Units sold
Average
Units sold
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thous. of do liars)2
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
173,976
205,457
228,948
225,833
218,909
215,021
214,315'
215,149'
223,660
226,208
231,786
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
27
Other
28
Public utilities and other
135,799
80,957
54,842
159,555
93,423
66,132
179,948
99,029
80,919
171,488
83,467
88,021
164,791
76,957
87.834
161,349
73,360
87,989
158,593'
74,277'
84,316'
162,057'
78,632'
83,425'
167,882
84,378
83,504
171,127
87,448
83,679
177,969
93,543
84,426
7,713
14,789
6,200
26,140
10,993
18,568
6,739
29,832
14,953
24,924
7,427
33,615
13,611
30,878
8,220
35,312
14,197
30,149
8,571
34,917
15,022
29,609
8,256
35,102
13,267
28,063
8,115
34,871'
13,046
27,993
8,095
34,291'
13,102
27,425
8,447
34,530
12,996
28,417
8,760
33,506
13,283
28,793
8,967
33,383
38,172
1,428
9,380
3,862
23,502
45,901
1,501
10,713
4,457
29,230
49,001
1,641
11,915
4,586
30,859
54,344
2,048
14,393
5,000
32,903
54,118
1,671
13,230
5,285
33,932
53,672
1,748
14,012
4,241
33,671
55,721'
2,041'
13,758
5,893
34,029'
53,092'
2,315'
10,866
4,295
35,616'
55,778
1,717
n.a.
n.a.
n.a.
55,081
2,144
n.a.
n.a.
n.a.
53,817
1,914
n.a.
n.a.
n.a.
29 Public
30 Military
31 Highway
32 Conservation and development
33 Other 4
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly comparable
with data in prior periods 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 from originating agency. Permit authorizations are
those reported to the Census Bureau from 14,000 jurisdictions through 1977, and
16,000 jurisdictions beginning with 1978.
Prices
2.15
A49
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
Item
Index
level
Nov.
1980
(1967
= 100)'
1980
1980
1979
1979
Nov.
1 month to
3 months (at annual rate) to
1980
Nov.
Dec.
Mar.
June
Sept.
July
Aug.
Sept.
Oct.
Nov.
CONSUMER PRICES 2
1
12.6
All items
2 Commodities
3 Food
4
Commodities less food
5
Durable
6
Nondurable
7 Services
Rent
8
9 Services less rent
Other groupings
10 All items less food
All items less food and energy
12 Homeownership
11
12.6
13.7
18.1
11.6
7.0
0.0
.7
1.0
1.0
1.0
256.2
12.7
9.8
13.9
10.2
18.9
12.6
8.1
13.3
11.5
10.6
12.0
11.2
13.0
14.1
8.9
14.8
12.5
12.1
12.7
13.2
12.8
15.8
9.0
16.9
16.1
3.8
22.1
7.6
39.8
20.9
8.3
22.8
5.0
5.6
4.7
6.8
3.5
21.6
10.0
23.3
12.8
18.9
10.6
15.7
4.0
-.6
8.6
1.8
.6
1.0
.5
.5
-.8
.5
-.9
1.2
1.8
.9
1.6
.4
-.1
.6
-.2
1.2
1.6
1.1
1.6
.2
.7
1.0
.7
.8
.8
.8
1.2
.1
1.2
1.0
1.2
1.0
1.1
.9
1.3
.5
1.0
.6
1.1
242.5
264.5
230.0
220.6
240.5
280.9
198.3
296.4
13.3
10.7
18.3
13.0
12.2
16.6
14.2
13.9
25.6
21.7
15.7
24.1
13.0
13.5
26.6
4.6
5.1
-5.6
-.2
-.2
-1.8
.4
.5
-.2
.9
.9
.6
1.0
1.2
2.1
.9
1.1
1.7
253.2
242.4
329.4
13.0
14.8
8.9
18.0
8.6
15.5
11.9
12.2
7.1
14.7
12.4
13.3
14.6
8.6'
17.9
10.0
17.0
19.3
21.6
-1.2'
34.8
13.4
24.0
6.7
4.9
-7.8'
11.3
11.3
5.2
20.6
12.5
27.8
5.7
.3
PRODUCER PRICES
13 Finished goods
14 Consumer
15
Foods
16
Excluding foods
17 Capital equipment
18 Intermediate materials 3
Crude materials
19 Nonfood
Food
20
24.9
11.5
11.3
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.
21.9
-16.7
-3.9
-10.5
12.2
13.8
36.9'
4.4
8.5
6.4
1.5
1.8'
3.9'
.8'
1.4'
.7'
1.5
1.6'
4.3'
.4'
.7'
.7'
-.2
-.2
-.2'
-.2'
-.1
.1'
.8
.6
.5
.6
1.4
.6
.6
.7
.5
.7
.6
.9
253.2
254.7
246.9
255.9
249.1
288.0
39.1
96.4
3.3'
9.0
2.8'
9.0
2.2'
-.4
2.5
1.5
1.8
.6
452.0
277.3
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
A50
2.16
Domestic Nonfinancial Statistics • January 1981
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1979
Account
1977
1978
1980
1979
Q3
04
Q1
02
03
GROSS NATIONAL PRODUCT
1 Total
1,918.0
2,156.1
2,413.9
2,444.1
2,496.3
2,571.7
2,564.8
2,637.3
By source
2 Personal consumption expenditures
3 Durable goods
4 Nondurable goods
Services
1,205.5
178.8
479.0
547.7
1,348.7
199.3
529.8
619.6
1,510.9
212.3
602.2
696.3
1,529.1
213.3
611.5
704.3
1,582.3
216.1
639.2
727.0
1,631.0
220.9
661.1
749.0
1,626.8
194.4
664.0
768.4
1,682.2
208.8
674.2
799.2
322.3
301.3
205.5
64.6
140.9
95.8
92.0
375.3
353.2
242.0
78.7
163.3
111.2
106.9
415.8
398.3
279.7
96.3
183.4
118.6
113.9
421.7
408.3
288.5
99.6
189.0
119.8
114.9
410.0
410.8
290.2
105.1
185.1
120.6
115.4
415.6
413.1
297.8
108.2
189.7
115.2
110.1
390.9
383.5
289.8
108.4
181.4
93.6
88.9
377.1
393.2
294.0
107.3
186.8
99.2
94.5
21.0
20.2
22.2
21.8
17.5
13.4
13.3
7.8
-0.8
-4.4
2.5
1.5
7.4
6.1
-16.0
-12.3
15 Net exports of goods and services
16 Exports
17 Imports
-0.4
183.3
187.5
-0.6
219.8
220.4
13.4
281.3
267.9
17.9
293.1
275.2
7.6
306.3
298.7
8.2
337.3
329.1
17.1
333.3
316.2
44.5
342.4
297.9
18 Government purchases of goods and services
19 Federal
20 State and local
394.5
143.9
250.6
432.6
153.4
279.2
473.8
167.9
305.9
475.4
165.1
310.4
496.4
178.1
318.3
516.8
190.0
326.8
530.0
198.7
331.3
533.5
194.9
338.6
1,897.0
852.6
362.7
489.9
869.0
196.5
2,133.9
946.6
409.8
536.8
976.3
233.2
2,396.4
1,056.0
451.2
604.7
1,097.2
260.8
2,430.8
1,064.9
455.9
609.0
1,112.0
267.3
2,497.1
1,078.4
448.1
630.3
1,142.8
275.1
2,569.1
1,116.9
456.4
660.5
1,178.6
276.2
2,557.4
1,106.4
444.6
661.8
1,205.6
252.8
2,653.4
1,129.4
456.5
672.9
1,249.0
258.9
21.0
8.8
12.2
22.2
17.8
4.4
17.5
11.5
6.0
13.3
6.7
6.6
-0.8
-0.4
-0.5
2.5
-11.8
14.3
7.4
3.3
4.1
-16.0
-8.4
-7.7
1,371.7
1,436.9
1,483.0
1,488.2
1,490.6
1,501.9
1,463.3
1,471.9
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
Nonfarm
13
14
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 GNP in 1972 dollars
NATIONAL INCOME
31 Total
1,546.5
1,745.4
1,963.3
1,986.2
2,031.3
2,088.5
2,070.0
2,122.4
32 Compensation of employees
33 Wages and salaries
34
Government and government enterprises
Other
35
36 Supplement to wages and salaries
37
Employer contributions for social insurance
Other labor income
38
1,152.3
983.8
202.3
781.5
168.5
79.5
89.0
1,299.7
1,105.4
219.6
885.7
194.3
92.1
102.2
1,460.9
1,235.9
235.9
1,000.0
225.0
106.4
118.6
1,476.7
1,248.5
237.0
1,011.6
228.2
107.3
120.9
1,518.1
1,282.4
243.3
1,039.1
235.7
109.8
126.0
1,558.0
1,314.5
246.7
1,067.9
243.5
112.6
130.9
1,569.0
1,320.4
250.5
1,069.9
248.6
113.6
135.1
1,597.4
1,342.3
253.9
1,088.4
255.0
116.0
139.1
103.5
85.1
18.3
117.1
91.0
26.1
131.6
100.7
30.8
132.9
107.3
30.2
136.3
112.2
29.5
133.7
114.8
25.7
124.9
105.5
23.3
129.7
113.1
22.1
39 Proprietors'income 1
40 Business and professional 1
41 Farm 1
42 Rental income of persons 2
43 Corporate profits 1
44
Profits before tax 3
45
Inventory valuation adjustment
46 Capital consumption adjustment
47 Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.
25.1
27.4
30.5
30.3
31.0
31.2
31.5
32.0
176.7
192.6
-15.8
-12.0
199.0
223.3
-24.3
-13.5
212.7
255.4
-42.6
-15.9
199.5
262.0
-46.5
-16.1
189.4
255.4
-50.8
-15.1
200.2
277.1
-61.4
-15.4
169.3
217.9
-31.1
-17.6
177.9
237.6
-41.7
-17.9
100.8
115.8
143.4
146.8
156.5
165.4
175.3
185.3
3. For after-tax profits, dividends, and the like, see table 1.49.
SOURCE. Survey of Current Business (Department of Commerce).
National Income Accounts
2.17
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1980
1977
1978
Q3
Q4
Q1
Q2
PERSONAL INCOME AND SAVING
1,538.0
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
17
Other labor income
Proprietors'income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
1,943.8
1,972.3
2,032.0
2,088.2
2,114.5
1,105.2
389.1
299.2
270.5
1,236.1
437.9
333.4
303.0
259.2
236.1
1,248.6
441.6
335.5
306.5
263.4
237.1
1,282.2
1,314.7
461.7
347.9
322.6
283.6
246.8
1.320.4
456.0
343.2
323.2
290.8
250.5
118.6
131.6
120.9
132.9
102.7
30.2
30.3
48.6
214.3
257.8
137.8
126.0
130.9
133.7
107.9
25.7
31.2
52.4
239.9
271.7
142.0
135.1
124.9
81.2
82.4
86.2
85.9
2,088.2
2.114.5
266.0
239.4
198.6
202.3
226.1
219.4
89.0
103.5
85.1
18.3
25.1
38.7
151.6
207.5
104.9
102.2
117.2
91.0
26.1
27.4
43.1
173.2
223.3
116.2
30.8
30.5
48.6
209.6
249.4
131.8
61.1
69.6
80.6
100.8
450.4
340.4
315.0
273.7
243.1
136.3
106.8
29.5
31.0
50.1
225.7
263.1
139.3
101.6
23.3
31.5
54.2
253.6
280.7
144.7
1,538.0
18 EQUALS: Personal income
19
1,721.8
983.9
343.5
LESS: Personal tax and nontax payments
1.721.8
1,943.8
1,972.3
2.032.0
226.5
258.8
302.0
308.4
321.8
323.1
330.3
1,784.1
20 EQUALS: Disposable personal income
1,311.5
1.462.9
1,641.7
1,663.8
1.710.1
1,765.1
21
1,237.4
1,386.6
1,555.5
1,574.5
1,629.4
1,678.7
1,674.1
74.1
76.3
86.2
89.3
86.4
110.0
6,323
3,061
4,332
5.6
6,568
4,136
4,487
5.2
6,721
4,219
4,584
5.2
6,737
4,225
4,598
5.4
6,730
4,251
4,596
4.7
6,768
4,251
4,600
4.9
6,580
4,134
4,532
304.0
355.2
412.0
422.3
402.0
404.5
394.5
322.4
74.1
80.1
-15.8
355.4
76.3
95.7
-24.3
398.9
86.2
117.6
-42.6
409.8
89.3
60.9
-46.5
396.4
80.7
50.6
-50.8
413.0
86.4
52.1
-61.4
435.9
122.4
73.7
.0
136.4
84.8
.0
155.4
98.2
158.7
100.8
161.5
103.6
.0
167.1
107.4
.0
173.0
110.7
.0
-18.3
-46.4
28.1
-0.2
-29.2
29.0
11.9
-14.8
26.7
11.3
-15.2
26.5
4.4
-24.5
28.9
1.7
-36.3
-29.6
-66.5
23.9
.0
.0
1.1
1.1
1.1
1.1
1.1
392.5
390.9
1.7
LESS: Personal outlays
22 EQUALS: Personal saving
MEMO:
Per capita (1972 dollars)
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
6.2
GROSS SAVING
27 Gross saving
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
allowances
32 Corporate
33 Noncorporate
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and product
accounts
36
Federal
37
State and local
38 Capital grants received by the United States, net
39 Gross investment
40 Gross private domestic
41 Net foreign
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
.0
26.6
308.4
361.6
414.1
425.1
401.3
407.3
322.3
-13.9
375.3
-13.8
415.8
-1.7
421.7
3.4
410.0
-8.7
415.6
-8.3
4.4
6.4
110.0
42.1
-31.1
.0
2.2
SOURCE. Survey of Current Business (Department of Commerce).
A51
A52
3.10
International Statistics • January 1981
U . S . I N T E R N A T I O N A L T R A N S A C T I O N S Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1979
Item credits or debits
1977
1978
Q3
1 Balance on current account
10
11
Merchandise trade balance 2
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net
MEMO: Balance on goods and services3-4
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
12 Change in U.S. government assets, other than official reserve assets, net (increase, - )
13 Change in U.S. official reserve assets (increase, - )
14 Gold
15 Special drawing rights (SDRs)
16 Reserve position in International Monetary Fund
17 Foreign currencies
18 Change in U.S. private assets abroad (increase, - ) 3
19 Bank-reported claims
20 Nonbank-reported claims
21 U.S. purchase of foreign securities, net
22 U.S. direct investments abroad, net 3
23 Change in foreign official assets in the United States
(increase, + )
U.S. Treasury securities
Other U.S. government obligations
Other U.S. government liabilities5
Other U.S. liabilities reported by U.S. banks
Other foreign official assets6
24
25
26
27
28
29 Change in foreign private assets in the United States
(increase, + ) 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 . . .
35 Allocation of SDRs
36 Discrepancy
Owing to seasonal adjustments
37
38 Statistical discrepancy in recorded data before seasonal
adjustment
04
Q2'
Q1
Q3 P
-14,068
-14,259
-788
1,099
-2,909
-1,802
486
-2,610'
-2,426'
-2,431
-680
4,900
480
-30,873
120,816
-151,689
1,628
17,988
1,794
-9,464
-33,759
142,054
-175,813
886
20,899
2,769
-9,204
-29,469
182,055
-211,524
-1,274
32,509
3,112
4,878
-7,060
47,198
-54,258
-443
9,319
690
2,506
-9,225
50,237
-59,462
-700
8,883
792
-250
-10,850'
54,708
-65,558'
-922
10,094
880
-798'
-7,505
54,710
-62,215
-994
6,133
1,261
-1,105
-2,828
56,288
-59,116
-632
8,467
1,370
6,377
-1,830
-2,775
-1,884
-3,171
-2,142
-3,524
-529
-878
-665
-887
-565
-1,247
-564
-762
-574
-903
-3,693
-4,644
-3,783
-766
-925
-1,467
-1,191
-1,320
-375
-118
-121
-294
158
732
-65
1,249
4,231
-4,683
-1,132'
-65
-1,136
-189
257'
2,779
0
0
-52
2,831
-649'
-65
0
27
-611'
-3,268'
0
1,152
-34
-2,082'
502
0
112
-99
489
-1,109
0
261
-294
-554
-31,725
-11,427
-1,940
-5,460
-12,898
-57,279
-33,631
-3,853
-3,450
-16,345
-56,858
-25,868
-2,029
-4,643
-24,318
-27,228
-16,997
-932
-2,143
-7,156
-11,918
-7,213
410
-986
-4,129
-7,976
-274
-1,474
-765
-5,463
-25,023
-21,051
147
-1,246
-2,873
-17,767
-12,477
n.a.
-805
-4,485
36,574
30,230
2,308
1,159
773
2,105
33,292
23,523
666
2,220
5,488
1,395
-14,270
-22,356
465
-714
7,219
1,116
5,789
5,024
335
216
56
158
-1,221
-5,769
41
-924
4,881
550
-7,215
-5,357
801
181
-3,185
345
7,775
4,314
250
737
1,652
822
8,025
3,769
549
305
1,989
1,413
14,167
6,719
473
30,804
16,259
1,640
51,845
32,668
1,692
19,152
13,185
606
5,246
400
1,050
14,409
6,355
683
174
-4,208
1,331
2,978
36
n.a.
534
2,713
3,728
2,197
2,811
7,896
4,830
2,942
9,713
920
313
2,563'
3,278
2,427
1,666
-1,225
1,194
3,082
-254
990
2,206
0
-880
0
11,354
1,139
22,848'
0
-825
-3,641
0
11,269'
2,400
1,152
6,975'
-99'
0
20,194
1,460
0
4,293
-4,022
-880
11,354
23,848'
2,816
8,869'
7,074'
18,734
8,315
1
3
4
5
6
7
8
9
1980
1979
1,466
677
3,218'
MEMO:
Changes in official assets
U.S. official reserve assets (increase, - )
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 23
above)
42 Transfers under military grant programs (excluded from
lines 4, 6, and 11 above)
39
40
-375
732
2,779
-649'
-3,268'
502
-1,109
35,416
31,072
-13,556
5,573
-297
-7,396
7,038
7,720
6,351
-1,137
5,508
1,676
4,955
2,930
4,749
4,380
204
236
305
88
139
144
155
110
1. Seasonal factors are no longer calculated for lines 13 through 42.
2. Data are on an internationalaccounts (IA) basis. Differs from the census basis
primarily because the IA 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 from the definition of "net exports of goods and services" in the
national income and product (GNP) account. The GNP definition makes various
adjustments to merchandise trade and service transactions.
-1,132'
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 from Bureau of Economic Analysis, Survey of Current Business
(U.S. Department of Commerce).
Trade and Reserve Assets
3.11
A53
U.S. FOREIGN T R A D E
Millions of dollars; monthly data are seasonally adjusted.
1980
Item
1977
1978
1979
May
1
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
2
GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
3
Trade balance
121,150
143,578
181,637
147,685
171,978
206,326
-26,535
-28,400
-24,690
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 international-accounts-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").
3.12
17,678
20,439'
-2,762
June
July
Aug.
Sept.
Oct.
Nov.
18,642
18,075
19,103
18,701
19,088
18,634
19,893
18,995
19,236
19,465
20,060
19,422
-1,251
-920
-132
-764
-972
-788
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).
U.S. R E S E R V E ASSETS
Millions of dollars, end of period
1980
Type
1977
1978
1979
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1
Total1
19,312
18,650
18,956
21,943
21,845
22,691
22,994
23,967
25,673
26,756
2
Gold stock, including Exchange Stabilization Fund 1
11,719
11,671
11,172
11,172
11,172
11,172
11,168
11,163
11,162
11,160
3
Special drawing rights2 3
2,629
1,558
2,724
3,782
3,842
4,009
4,007
3,939
3,954
2,610
4
Reserve position in International Monetary Fund 2
4,946
1,047
1,253
1,385
1,410
1,564
1,665
1,671
1,822
2,852
5
Foreign currencies4-5
18
4,374
3,807
5,604
5,421
5,946
6,154
7,194
8,735
10,134
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
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of 16 member countries.
The U.S. SDR holdings and reserve position in the IMF also are valued on this
basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan.
1, 1972; $1,139 million on Jan. 1, 1979; and $1,152 million Jan. 1, 1980; plus net
transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.
5. Includes U.S. government securities held under repurchase agreement against
receipt of foreign currencies, if any.
A54
3.13
International Statistics • January 1981
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
Millions of dollars, end of period
1980
Asset account
1977
19781
1979
Apr.
May
June
July
Aug.
Sept.
Oct.P
All foreign countries
1 Total, all currencies
2 Claims on United States
3
Parent bank
4
Other
5 Claims on foreigners
Other branches of parent bank
6
7
Banks
Public borrowers 2
8
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
258,897
306,795
364,233
376,146
378,899
376,722
377,813
386,200
385,011
380,988
11,623
7,806
3,817
17,340
12,811
4,529
32,302
25,929
6,373
34,183
26,290
7,893
35,606
26,139
9,467
29,069
18,565
10,504
29,053
17,525
11,528
36,821
26,684
10,137
29,320
19,676
9,644
30,439
21,447
8,992
238,848
55,772
91,883
14,634
76,560
278,135
70,338
103,111
23,737
80,949
317,175
79,661
123,395
26,072
88,047
325,623
79,500
130,198
25,239
90,686
326,340
76,317
130,313
25,438
94,272
330,171
76,061
132,587
25,632
95,891
331,301
75,196
134,624
25,474
96,007
332,317
72,417
136,484
26,112
97,304
338,388
73,638
139,604
26,492
98,654
333,522
72,240
137,600
26,376
97,306
8,425
11,320
14,756
16,340
16,953
17,482
17,459
17,303
17,027
193,764
224,940
267,711
277,791
277,542
275,232
275,719
283,707'
17,062
281,444
278,239
11,049
7,692
3,357
16,382
12,625
3,757
31,171
25,632
5,539
32,899
25,920
6,979
34,314
25,778
8,536
27,867
18,254
9,613
27,688
17,209
10,479
35,508
26,363
9,145
28,117
19,405
8,712
29,022
21,050
7,972
178,896
44,256
70,786
12,632
51,222
203,498
55,408
78,686
19,567
49,837
229.118
61,525
96,243
21.629
49,721
235.953
61,768
103,256
20,998
49,931
234,159
58,908
102,693
21,221
51,337
238,213
58,456
104,902
21,382
53,473
239,271
57,813
106,313
21,233
53,912
239,356'
54,965
107,976
21,785
54,630'
244,910
56,445
111,651
22,059
54,755
240,707
55,031
108,872
22,406
54,398
3,820
5,060
7,422
8,939
9,069
9,152
8,760
8,843
8,417
8,510
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
90,933
106,593
130,873
138,915
138,930
139,066
135,669
136,467
136,872
137,096
4,341
3,518
823
5,370
4,448
922
11,117
9,338
1,779
11,533
9,300
2,233
11,399
9,140
2,259
9,157
6,870
2,287
8,366
5,705
2,661
8,465
6,023
2,442
8,022
5,788
2,234
8,206
5,969
2,237
84,016
22,017
39,899
2,206
19,895
98,137
27,830
45,013
4,522
20,772
115,123
34,291
51,343
4,919
24,570
122,105
36,015
54,020
5,578
26,492
121,851
34,305
54,076
5,591
27,879
124,059
34,824
54,855
5,897
28,483
120,914
32,231
54,824
5,710
28,149
121,805
31,607
55,530
5,865
28,803
122,825
30,792
56,911
6,005
29,117
122,890
31,399
56,396
5,943
29,152
2,576
3,086
4,633
5,277
5,680
5,850
6,389
6,197
6,025
6,000
66,635
75,860
94,287
100,628
98,809
98,013
93,158
93,720'
94,355
94,365
4,100
3,431
669
5,113
4,386
727
10,746
9,297
1,449
11,071
9,179
1,892
10,988
9,059
1,929
8,790
6,810
1,980
7,831
5,629
2,202
7,954
5,960
1,994
7,656
5,744
1,912
7,637
5,817
1,820
61,408
18,947
28,530
1,669
12,263
69,416
22,838
31,482
3,317
11,779
81,294
28,928
36,760
3,319
12,287
86,818
29,980
39,159
4.277
13,402
85,013
28,466
38,594
4,277
13,676
86,404
28,692
39,050
4,396
"14,266
82,434
26,083
38,471
4,280
13,600
82,705'
25,565
39,070
4,327
13,743'
83,933
24,907
40,817
4,419
13,790
83,961
25,577
39,988
4,381
14,015
1,126
1,331
2,247
2,739
2,808
2,819
2,893
3,061
2,766
2,767
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.
79,052
91,735
108,977
115,840
116,538
115,276
120,243
128,429
123,076
119,379
5,782
3,051
2,731
9,635
6,429
3,206
19,124
15,196
3,928
20,060
15,269
4,791
21,406
15,334
6,072
17,682
10,660
7,022
18,240
10,497
7,743
25,846
19,129
6,717
18,293
11,839
6,454
19,642
13,857
5,785
71,671
11,120
27,939
9,109
23,503
79,774
12,904
33,677
11,514
21,679
86,718
9,689
43,171
12,905
20,953
91,683
13,438
47,212
11,355
19,678
90,995
12,454
46,782
11,636
20,123
93,432
12,977
48,012
11,554
20,889
98,001
14,362
50,780
11,627
21,232
98,463
13,160
51,712
12,054
21,537
100,832
14,724
52,622
12,076
21,410
95,854
13,093
49,673
12,439
20,649
1,599
2,326
3,135
4,097
4,137
4,162
4,002
4,120
3,951
3,883
73,987
85,417
102,368
109,728
110,872
109,715
114,474
122,581
117,142
113,538
Overseas Branches
3.13
A55
Continued
1980
Liability account
1977
19781
1979
Apr.
May
June
July
Aug.
377,813
386,200
Sept.
Oct .P
All foreign countries
52 Total, all currencies
53 To United States
54 Parent bank
55 Other banks in United States
56
Nonbanks
57 To foreigners
58 Other branches of parent bank
59 Banks
60
Official institutions
61 Nonbank foreigners
62 Other liabilities
63 Total payable in U.S. dollars
64 To United States
65
Parent bank
66
Other banks in United States
67
Nonbanks
68 To foreigners
69
Other branches of parent bank
70
Banks
71 Official institutions
72
Nonbank foreigners
73 Other liaHMties
258,897
306,795
364,233
385,011
380,988
44,154
24,542
57,948
28,590
12,212
17,146
66,618
24,462
13,968
28,188
69,571'
24,348
12,833'
32,390
73,263'
26,603
13,090'
33,570
76,297'
30,918
12,432'
32,947
83,151'
35,357
11,415'
36,379
87,492'
37,400
14,725'
35,367'
83,938
38,398
12,618
32,922
84,096
37,103
12,908
34,085
206,579
53,244
94,140
28,110
31,085
238,912
67,496
97,711
31,936
41,769
283,344
77,601
122,849
35,664
47,230
291,113'
75,096
130,675'
35,107
50,235
289,754'
72,530
130,805'
34,910
51,509
284,539'
72,061
127,636'
34,141
50,701
279,567'
72,067
122,708'
33,073
51,719
283,924'
69,158
130,344'
33,080
51,342'
287,018
70,258
130,968
33,079
52,713
283,050
69,462
131,359
30,591
51,638
376,146
378,899
376,722
8,163
9,935
14,271
15,462
15,882
15,886
15,095
14,784
14,055
13,842
198,572
230,810
273,819
283,880
285,131
282,578
283,026
291,606
288,436
285,734
42,881
24,213
55,811
27,519
11,958
16,334
64,530
23,403
13,771
27,356
67,216'
23,102
12,584'
31,530
70,826'
25,279
12,826'
32,721
73,704'
29,547
12,162'
31,995
80,630'
33,977
11,155'
35,498
84,650'
35,906
14,419'
34,325'
81,050
36,799
12,382
31,869
81,295
35,443
12,609
33,243
151,363
43,268
64,872
23,972
19,251
169,927
53,396
63,000
26,404
27,127
201,476
60,513
80,691
29,048
31,224
207,847'
59,423
87,606'
28,685
32,133
205,263'
56,577
87,029'
28,360
33,297
199,872'
56,247
84,290'
26,961
32,374
194,322'
56,206
78,911'
26,177
33,028
198,754'
53,335
86,404'
26,165
32,850'
199,625
54,753
85,345
25,659
33,868
197,095
53,516
86,224
23,274
34,081
4,328
5,072
7,813
8,817
9,042
9,002
8,074
8,202
7,761
7,344
136,467
United Kingdom
74 Total, all currencies
75 To United States
76
Parent bank
77
Other banks in United States
78
Nonbanks
79 To foreigners
80
Other branches of parent bank
81 Banks
82
Official institutions
83 Nonbank foreigners
84 Other liabilities
85 Total payable in U.S. dollars
86 To United States
87
Parent bank
88
Other banks in United States
89 Nonbanks
90 To foreigners
91 Other branches of parent bank
92 Banks
93 Official institutions
94 Nonbank foreigners
95 Other liabilities
90,933
106,593
130,873
138,915
138,930
139,066
135,669
136,872
137,096
7,753
1,451
6,302
9,730
1,887
4,232
3,611
20,986
3,104
7,693
10,189
20,838
2,301
6,382
12,155
19,877
2,118
6,265
11,494
20,189
2,410
6,306
11,473
21,404
3,275
5,567
12,562
20,608'
2,542
5,910
12,156'
19,343
2,951
5,361
11,031
19,185
2,712
5,848
10,625
80,736
9,376
37,893
18,318
15,149
93,202
12,786
39,917
20,963
19,536
104,032
12,567
47,620
24,202
19,643
111,375
14,268
53,955
23,453
19,699
111,769
13,824
54,309
23,628
20,008
111,878
13,767
54,750
22,577
20,784
107,739
12,694
51,203
21,088
22,754
109,604'
13,343
51,452
22,600
22,209'
111,866
13,295
53,749
22,437
22,385
112,476
13,730
56,008
19,807
22,931
2,445
3,661
5,855
6,702
7,284
6,999
6,526
6,255
5,663
5,435
100,117
95,314
96,453
96,403
96,133
67,573
77,030
95,449
101,679
101,170
7,480
1,416
6,064
9,328
1,836
4,144
3,348
20,552
3,054
7,651
9,847
20,337
2,252
6,318
11,767
19,284
2,060
6,210
11,014
19,498
2,315
6,233
10,950
20,843
3,238
5,486
12,119
20,007'
2,496
5,809
11,702'
18,687
2,892
5,259
10,536
18,579
2,634
5,742
10,203
58,977
7,505
25,608
15,482
10,382
66,216
9,635
25,287
17,091
14,203
72,397
8,446
29,424
20,192
14,335
78,296
10,468
34,485
19,554
13,789
78,278
10,021
34,488
19,558
14,211
77,145
9,758
35,217
18,300
13,870
71,489
8,672
31,352
16,846
14,619
73,431'
9,128
31,726
18,253
14,324'
75,001
9,215
32,865
18,046
14,875
75,190
9,731
34,741
15,338
15,380
1,116
1,486
2,500
3,046
3,608
3,474
2,982
3,015
2,715
2,364
120,243
128,429
Bahamas and Caymans
79,052
91,735
108,977
123,076
119,379
97 To United States
98
Parent bank
99
Other banks in United States
100 Nonbanks
32,176
20,956
_
11,220
39,431
20,482
6,073
12,876
37,719
15,267
5,204
17,248
41,919'
17,066
5,418'
19,435
45,618'
19,170
5,721'
20,727
48,431'
22,748
5,200'
20,483
54,190'
26,589
4,821'
22,780
58,877'
29,189
7,460'
22,228
56,263
29,329
6,047
20,887
56,139
27,694
5,945
22,500
101 To foreigners
102 Other branches of parent bank
103 Banks
104 Official institutions
105 Nonbank foreigners
45,292
12,816
24,717
3,000
4,759
50,447
16,094
23,104
4,208
7,041
68,598
20,875
33,631
4,866
9,226
70,601'
22,470
33,046'
5,435
9,650
67,971'
20,009
32,174'
5,461
10,327
63,935'
20,102
28,917'
5,096
9,820
63,171'
20,409
27,126'
5,525
10,111
66,593'
18,081
34,086'
4,119
10,307
63,918
17,079
32,155
4,250
10,434
60,438
16,719
29,193
4,575
9,951
96 Total, all currencies
106 Other liabilities
107 Total payable in U.S. dollars
116,538
115,276
1,584
1,857
2,660
3,320
2,949
2,910
2,882
2,959
2,895
2,802
74,463
87,014
103,460
111,486
112,509
111,494
116,182
124,017
118,473
115,021
l.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-
115,840
rowers, including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official institutions.
A56
3.14
International Statistics • January 1981
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1980
1977
Item
1978
1979
May
1 Total1
2
3
4
5
6
1
8
9
10
11
12
July
Aug.
Sept.
Oct.P
Nov.P
131,097
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
162,589
149,451
143,465
149,094
152,982
154,579
156,804
157,259
163,082
18,003
47,820
23,290
67,671
30,475
47,666
28,566
42,731
28,940
45,907
29,201
47,982
29,449
49,811
30,918
49,361
28,785
50,392
29,582
55,104
32,164
20,443
12,667
35,894
20,970
14,764
37,590
17,387
16,333
38,029
16.184
17,955
39,745
15,954
18,548
40.507
15,954
19,338
39,762
15,654
19,903
40,760
15,254
20,511
41,424
15,254
21,404
41,725
15,254
21,417
70,748
2,334
4,649
50,693
1,742
931
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 securities5
93,089
2,486
5,046
58,817
2,408
743
85,602
1,898
6,291
52,763
2,412
485
74.174
2.134
5,955
57,382
2.889
931
75,246
2,157
5,932
62,164
2,694
901
78,141
1,907
6,276
62,989
2,930
739
78,424
2,156
6,049
64,191
3,281
478
76,649
1,901
6,610
67,600
3,232
812
75,999
1,736
6,008
68,920
3,520
1,076
80,875
1,433
5,722
69,934
3,867
1,251
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.
3.15
June
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.
LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1979
Item
1977
Sept.
1 Banks' own liabilities
2 Banks'own claims'
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2
925
2,356
941
1.415
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.
1980
1978
2.363
3.682
1.795
1.887
358
2.401
3,024
1,376
1.648
609
Dec.
1,868
2,448
1,003
1,445
582
Mar.
2,237
2,812
1,212
1,600
1.060
June
2,580
2,994
1,048
1,946
798
Sept.
2,688
3,161
1,120
2,040
595
NOTE: Data on claims exclude foreign currencies held by U.S. monetary authorities.
Nonbank-Reported
3.16
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
A57
Reported by Banks in the United States
Millions of dollars, end of period
1980
1978
Holder and type of liability
1979
May
July
Aug.
Sept.
Oct.
Nov.P
166,816
187,376
184,309
187,012
188,354
201,388
191,576'
195,574
204,564
78,718
19,218
12,431
9,693
37,376
117,183
23,325
13,627
16,392
63,839
116,348
22.511
12,678
16,027
65,133
116,811
25,967
12,778
16,774
61,292
116,645
22,138
12,899
18,737
62,871
128,246
22,511
13,158
18,721
73,856
118,663'
22,474'
13,824'
17,980'
64,385'
120,992
22,456
14,101
17,224
67,210
124,836
22,847
15,035
17,085
69,869
88,098
68,202
70,193
48,573
67,961
45,523
70,201
48,193
71,708
49,627
73,142
51,505
72,913
50,731
74,582
51,990
79,728
56,484
17,396
2,499
19,270
2,350
19,645
2,793
19,433
2,575
19,349
2,732
19,054
2,584
19,671
2,511
19,962
2,630
20,609
2,635
3,274
2,607
2,351
3,212
3,504
2,903
2,820
2,549
2,734
2,476
231
139
906
330
84
492
709
260
151
298
377
144
88
145
847
99
92
657
607
214
93
299
501
171
101
229
476
141
100
235
352
115
95
143
383
187
92
104
1,701
201
1,643
102
2.835
1.519
2.657
1,106
2,296
604
2,319
644
2,073
316
2,382
581
2,093
337
1,499
1
1,538
2
1,317
0
1,551
0
1,692
0
1,675
0
1,757
0
1,800
0
1,756
0
20 Official institutions 8
90,706
78,142
71,297
74,848
77,183
79,260
80,279 r
79,177
84,687
21 Banks' own liabilities
22
Demand deposits
23
Time deposits 1
24
Other 2
12,129
3,390
2,550
6,189
18,228
4,704
3,041
10,483
15,442
4,484
2,591
8.367
16,341
5,042
2,670
8,628
17,061
4,218
2,695
10,148
17,591
3,898
2,959
10,735
18,548'
4,348'
3,477'
10,724
16,157
3,406
3,390
9,362
16,893
3,553
3,623
9,717
78,577
67,415
59,914
47,666
55,854
42,731
58,507
45,907
60,122
47,982
61,669
49,811
61,731
49,361'
63,020
50,392
67,793
55,104
10,992
170
12,196
52
13,084
40
12,554
45
12,092
48
11,807
52
12,307
63
12,537
90
12,633
56
57,483
88,357
92,049
89,661
90,328
100,977
90,045 r
94,817
97,620
52,693
15,317
11,257
1,443
2,617
83,357
19,517
13,274
1,680
4,563
86,221
21,088
13,003
1,423
6,662
84,270
22,977
14,986
1,479
6,512
84,846
21,975
12,974
1,544
7,457
95,664
21,808
13,427
1,514
6,867
84,804'
20,419'
12,995'
1,412'
6,012'
89,459
22,248
13,842
1,724
6,682
91,740
21,871
13,714
2,206
5,951
37,376
63,839
65,133
61,292
62,871
73,856
64,385'
67,210
69,869
4,790
300
5,000
422
5,828
765
5,392
594
5,482
557
5,313
577
5,241
361
5,359
515
5,880
529
2,425
2,065
2,405
2,173
2.490
2,574
2,522
2,277
2.395
2,530
2,435
2,301
2,533
2,347
2,417
2,427
2,883
2,467
1 All foreigners
2 Banks' own liabilities
3
Demand deposits
4
Time deposits 1
5
Other 2
6
Own foreign offices 3
7 Banks' custody liabilities 4
8
U.S. Treasury bills and certificates 5
9
Other negotiable and readily transferable
instruments 6
10
Other
11 Nonmonetary international and regional
organizations 7
12 Banks' own liabilities
13
Demand deposits
14
Time deposits 1
15
Other 2
16 Banks' custody liabilities 4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
126,168
June
18,996
11,521
48,906
706
3,528
1,797
25 Banks' custody liabilities 4
26
U.S. Treasury bills and certificates 5
27
Other negotiable and readily transferable
instruments 6
28
Other
29 Banks 9
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits 1
34
Other 2
35
42,335
10,933
2,040
Own foreign offices 3
36 Banks' custody liabilities 4
37
U.S. Treasury and certificates
38
Other negotiable and readily transferable
instruments 6
39
Other
40 Other foreigners
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 2
45 Banks' custody liabilities 4
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 6
48
Other
49 MEMO: Negotiable time certificates of deposit
in custody for foreigners
14,736
16,020
18,526
17,752
18,999
17,940
18,330
18,703 r
18,845
19,782
4,304
7,546
12,990
4,242
8,353
394
14,890
5,087
8,755
1,048
14.309
4,880
8.576
853
15,353
5,840
8,537
977
14,131
4,732
8,566
833
14,490
5,014
8,585
891
14,835'
4,991
8,836
1.009'
15,023
5,093
8,892
1,038
15,820
5,392
9,113
1,314
240
3,030
285
3,636
382
3.443
508
3,646
586
3,809
484
3,841
473
3,868
693
3,822
502
3,962
513
2,481
264
3,131
123
2.755
180
2,806
254
3,170
154
3,137
231
3,074
100
3,208
112
3,337
112
11,007
10,974
11.685
11,773
10,500
10,433
10,704
10,751
10,528
1. Excludes negotiable time certificates of deposit, which are included in "Other
negotiable and readily transferable instruments." Data for time deposits before
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 majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks.
5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time certificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in "Official institutions."
A58
3.16
International Statistics • January 1981
LIABILITIES TO FOREIGNERS Continued
1980
Area and country
1977
1978
1979
May
June
July
Aug.
Sept.
Oct.
NOV.p
1 Total
126,168
166,816
187,376
184,309
187,012
188,354
201,388
191,576'
195,574
204,564
2 Foreign countries
122,893
164,209
185,025
181,097
183,508
185,451
198,568
189,027'
192,840
202,088
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
85,157
513
2.550
1,946
346
9,208
17,286
826
7,739
2,402
1,271
330
870
3,121
18,225
157
14,265
254
3,440
82
325
90,935
413
2,375
1,092
398
10,433
12,935
635
7,782
2,327
1,267
557
1,259
2,005
17,954
120
24,694
266
4,070
52
302
82.756
352
2,795
588
435
10.850
5.427
610
6.942
2.128
1.221
339
1.386
1,632
14.517
136
27.251
144
5.606
40
354
82,911
383
3,982
553
438
11,272
6,954
626
5,778
2,676
1,282
391
1,366
1,999
14,736
153
24,192
254
5,468
49
357
83,871
432
3,837
534
433
12,178
7,626
567
7,138
2,830
1,140
398
1,371
1,795
14,359
156
22,579
190
6,006
36
267
86,072
390
3,673
525
403
12,596
9,121
642
6,530
2,491
1,040
506
1,491
1,861
14,252
147
22,925
135
7,002
70
271
83,476'
432
3,696
528
311
12,332
7,854
591
5,969'
2,540
1,074
571
1,321
1,826
13,524
237
22,818'
169
7,250
39
392
83,984
460
3,322
493
307
11,654
7,557
643
6,796
2,555
1,381
491
1,520
1,813
13,694
171
23,795
203
6,875
33
220
90,794
519
3,696
586
363
12,380
9,171
710
7,277
2,825
1,444
437
1,379
1,811
16,574
257
24,518
533
5,834
64
416
3 Europe
4
Austria
5
Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
21 Other Western Europe 1
22
U.S.S.R
23 Other Eastern Europe 2
4,607
6,969
7,379
8,201
9,157
9,228
9,187
10,234
9,992
9,871
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29
Brazil
30
British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala 3
36 Jamaica 3
37
Mexico
38 Netherlands Antilles
39
Panama
40
Peru
41 Uruguay
Venezuela
42
Other Latin America and Caribbean
43
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330
2,876
196
2,331
287
243
2,929
2,167
31,627
1,484
6,752
428
1,125
6,014
398
1,756
13
322
416
52
3,417
308
2,967
363
231
3,821
1,760
49,576
1,582
15,255
430
1,005
11,117
468
2,617
13
425
414
76
4,096
499
4,483
383
202
4,192
2,318
48.886
1,903
16,468
512
1.527
9,571
416
2.780
7
337
350
138
4,111
335
4.082
412
208
3.953
1.775
46,975
1,705
12,887
576
1,454
10,369
450
2,854
6
455
360
91
3,918
250
4,176
346
232
4,707
2,139
49,301
1,841
13,173
464
1,474
12,072
453
2,932
6
346
373
137
4,208
332
4,685
350
232
4,350
1,873
58,306
1,880
21,179
559
1,378
13,422
475
2,893
7
818
372
100
4,202
314
4,617
401
241
3,692
1,755
48,674'
1,875
13,924'
677
1,168'
11,410'
431
2,916
5
381
373
101
4,119'
360'
3,894
355
199
4,405
2,080
52,257
1,996
17,340
595
1,342
12,023
447
3,037
5
387
365
85
4,575
393
3,595
380
220
3,659
1,811
53,132
1,996
16,791
547
1,558
12,131
456
2,962
6
437
359
79
4,583
568
4,575
345
244
3,667
1,826
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle-East oil-exporting countries 4
Other Asia
30,488
36,492
32,991
36,047
39,468
38,020
39,850
41,847'
40,877
41,821
53
1.013
1,094'
961
410
559
14,616
602
687
264
8.979
1,250
67
502
1,256
790
449
688
21,927
795
644
427
7,534
1,414
49
1,393
1,672
527
504
707
8,907
993
800
277
15,282
1,879
30
1.396
1.944
740
670
570
10.790
988
885
472
15.788
1.771
44
1,524
2,270
633
807
584
12,430
1,087
883
405
16,792
2,010
38
1,438
2,186
494
849
488
12,547
1,482
935
405
15,350
1,808
37
1,552
1,991
631
632
569
14,059
1,473
778
304
15,791
2,033
38
1,595
2,204
529'
827
534'
15,414
1,994
814
517
15,409'
1,972
46
1,610
2,148
485
811
530
15,354
1,809
838
403
14,611
2,232
63
1,635
2,245
438
715
548
15,704
1,764
800
440
15,219
2,250
57 Africa
Egypt
58
Morocco
59
60
South Africa
Zaire
61
62
Oil-exporting countries 5
63
Other Africa
2,535
404
66
174
39
1,155
698
2,886
404
32
168
43
1,525
715
3.239
475
33
184
110
1,635
804
3.810
376
31
316
86
2.231
768
3,708
346
35
325
107
2,100
796
3,792
447
33
360
78
2,094
779
4,218
347
47
404
38
2,685
697
3,902
322
32
354
42
2,459
694
4,245
269
57
288
36
2,911
685
4,725
374
38
332
34
3,211
735
64 Other countries
Australia
65
Allother
66
1,297
1,140
158
1,076
838
239
904
684
220
1.397
1.150
247
1,290
1,019
271
1,239
959
281
936
692
243
894
613
281
1,484
1,190
294
1,746
1,413
333
67 Nonmonetary international and regional
organizations
International
68
69 Latin American regional
70 Other regional 6
3,274
2.752
278
245
2,607
1,485
808
314
2,351
1,238
806
308
3.212
2,133
790
289
3,504
2,394
807
302
2,903
1,804
785
314
2,820
1,736
800
285
2,549
1,389
837
323
2,734
1,586
841
307
2,476
1,366
801
309
24 Canada
45
46
47
48
49
50
51
52
53
54
55
56
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran. Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in "Other Western
Europe."
Nonbank-Reported
3.17
Data
A59
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1980
Area and country
1977
1979
1978
May
1 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 1
22 U.S.S.R
23 Other Eastern Europe 2
90,206
115,603
90,163
115,547
133,855
133,823
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
24,232
140
1,200
254
305
3,735
845
164
1,523
677
299
171
1,120
537
1,283
300
10,172
363
122
366
657
28,389
284
1,339
147
202
3,302
1,179
154
1,631
514
276
330
1,051
542
1,165
149
13,794
611
175
290
1,254
June
July
Aug.
Sept.
Nov.P
Oct.
139,733
149,447
151,196
163,300
161,518'
162,469
167,583
139,699
149,413
151,165
163,262
161,484'
162,429
167,549
26,206
292
1,471
168
273
2,740
1,104
329
1,748
457
172
246
1,106
661
916
151
11,851
614
266
247
1,394
29,707
305
1,866
167
307
2,689
1,131
346
1,940
590
219
300
1,189
677
1,237
144
14,026
658
203
289
1,424
28,439
309
1,622
149
223
2,582
1,004
279
2,295
492
270
346
1,011
534
1,319
143
13,175
648
170
531
1,336
29,394
280
1,881
164
215
3,288
1,131
265
2,433
628
231
335
1,139
558
1,581
137
12,638
647
172
232
1,438
29,797'
264
1,954
180
184
3,232
1,018
221
2,560
546
248
330
1,106
716
1,337
144
13,155'
682
245
241
1,434
29,241
196
1,680
132
253
2,551
987
278
2,852
557
335
341
1,113
736
1,591
124
12,923
684
226
257
1,427
32,880
214
1,946
165
248
3,499
1,505
265
3,062
749
138
468
1,094
633
1,931
149
14,305
690
234
271
1,314
3,355
5,152
4,143
4,283
5,272
4,654
4,775
5,255'
4,614
4,542
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
Guatemala 3
35
36 Jamaica 3
37 Mexico
38 Netherlands Antilles
39 Panama
40
Peru
41 Uruguay
42 Venezuela
Other Latin America and Caribbean
43
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,909
224
1,410
962
80
2,318
1,394
57,567
2,281
21,555
184
6,251
9,692
970
1,012
0
705
94
40
5,479
273
3,098
918
52
3,474
1,490
68,011
4,389
18,918
496
7,720
9,822
1,441
1,614
4
1,025
134
47
9,099
248
6,031
652
105
4,669
1,598
71,656
5,117
23,295
296
8,064
9,047
1,355
1,408
4
1,007
107
43
9,726
693
4,538
628
154
4,528
1,646
74,100
5,226
25,093
175
8,316
8,667
1,367
1,435
4
1,058
120
36
10,239
728
4,952
711
103
4,295
1,576
78,703
5,234
28,710
194
9,002
8,637
1,359
1,448
4
1,051
153
31
10,660
760
4,552
647
91
4,469
1,700
89,189
5,393
31,866
256
9,218
14,570
1,487
1,490
3
1,136
102
31
10,750
729
4,931
687
105
4,737
1,697
85,693'
5,629
30,194'
216
9,639
11,980'
1,627
1,493'
6'
1,111
105
33
11,123
710
4,461
671
100
4,879
1,715
87,491
5,859
30,066
399
10,135
12,617
1,721
1,575
3
1,157
112
35
11,745
799
3,972
719
100
4,743
1,736
89,268
6,275
29,675
262
10,029
13,641
1,730
1,582
3
1,157
114
40
11,979
816
4,368
749
105
5,113
1,631
44 Asia
China
Mainland
45
Taiwan
46
47 Hong Kong
48 India
49 Indonesia
50 Israel
51 Japan
52 Korea
53 Philippines
54 Thailand
55 Middle East oil-exporting countries 4
56 Other Asia
19,236
25,386
30,628
34,902
37,261
36,260
36,907
37,620'
37,808
37,783
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947
4
1,499
1,479
54
143
888
12,671
2,282
680
758
3,125
1,804
35
1,821
1,804
92
131
990
16,924
3,796
737
935
1,548
1,813
40
1,889
2,362
61
128
828
20,395
5,057
717
918
978
1,530
75
2,100
2,269
83
155
1,028
21,606
5,417
780
922
1,262
1,564
68
2,224
2,174
97
205
950
20,575
5,521
881
939
1,120
1,506
50
2,284
2,063
118
245
1,012
21,187
5,462
1,019
947
1,040
1,480
117'
2,492'
2,099
84
208
918
20,663
5,574
1,169
947
1,471
1,876
126
2,332
1,980
103
214
1,055
20,567
5,885
1,081
925
1,300
2,240
187
2,382
1,931
125
248
1,127
20,313
5,842
1,120
916
1,538
2,052
57 Africa
58 Egypt
59 Morocco
60
South Africa
61 Zaire
62 Oil-exporting countries 5
Other
63
2,518
119
43
1,066
98
510
682
2,221
107
82
860
164
452
556
1,797
114
103
445
144
391
600
1,770
134
107
465
108
325
632
2,016
95
121
616
107
364
714
2,166
112
134
691
107
365
757
1,977
135
180
469
98
349
746
2,029
123
166
535
101
374
729
2,090
159
119
440
123
469
780
1,933
165
146
375
98
402
747
64 Other countries
65 Australia
Allother
66
1,090
905
186
988
877
111
855
673
182
883
695
187
1,056
860
196
943
743
200
1,021
793
228
1,091
879
213
1,185
942
243
1,143
915
228
43
56
32
34
34
31
38
34
40
34
24 Canada
67 Nonmonetary international and regional
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other
Western Europe."
NOTE. Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners.
A60
3.18
International Statistics • January 1981
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
1980
Type of claim
1977
1979
1978
May
1 Total
2
3
4
5
6
7
8
Claims of banks' domestic customers 2
Deposits
Negotiable and readily transferable instruments 3 ..
Outstanding collections and other claims'*
. .
6,176
13 MEMO- Customer liability on acceptances
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United
States5
Aug.
151,196
16,444
58,499
42,007
6,176
35,832
34,245
163,300
17,238
64,016
47,528
7,268
40,261
34,518
Sept.
174,621
Oct.
Nov.P
162,469
19,051
61,402
46,560
7,115
39,445
35,455
167,583
20,470
62,420
48,914
7,666
41,248
35,778
21,996
n.a.
187,131'
126,851
153,953
133,855
15,491
47,447
41,023
6,224
34,799
29,894
11,248
480
5,414
5,353
20,098
955
13,124
6,019
25,174
910
17,470
6,794
25,613
1,218
15,265
9,130
14,969
18,058
22,302
23,400
13,113
21,364
139,733
15,115
50,108
42,859
6.507
36,352
31,652
24,704
149,447
15,723
56,064
44,061
6,573
37,488
33,600
23,216
24,790
161,518'
18,969'
61,879'
46,008
7,216'
38,792'
34,661'
23,516
21,509
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. 550.
1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due from head office or parent foreign bank, and foreign
branches, agencies, or wholly owned subsidiaries of head office or parent foreign
bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.
3.19
July
115,603
10,263
41,628
40,545
5,428
35,117
23,167
90,206
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9
10
11
12
June
NOTE: Beginning April 1978, data for banks' own claims are given on a monthly
basis, but the data for claims of banks' own domestic customers are available on
a quarterly basis only.
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
1980
Maturity; by borrower and area
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
1 Total
73,771
77,742
87,580
86,224
85,242
93,070
98,556
By borrower
2 Maturity of 1 year or less1
3
Foreign public borrowers
4
All other foreigners
5 Maturity of over 1 year1
6
Foreign public borrowers
7
All other foreigners
58,481
4,583
53,898
15,289
5,361
9,928
60,078
4.609
55,469
17,664
6,433
11.231
68,404
6,067
62,337
19,176
7,652
11,524
65,215
7,038
58,177
21,009
8.114
12,895
63,883
6,488
57,035
21,359
8,430
12,929
71,690
6,972
64,718
21,380
8,512
12,869
75,565
8,612
66,954
22,991
9,592
13,399
15,176
2,670
20,990
17,579
1,496
569
14.033
2,703
23,148
18,191
1,438
565
16,799
2,471
25,690
21,519
1,401
524
15,214
1.777
24,974
21,677
1,080
493
13,844
1,818
23,178
23,374
1,043
627
17,407
2,013
24,477
25,749
1,320
724
16,849
2,161
27,816
26,592
1,394
754
3,142
1.426
8,464
1,407
637
214
3.483
1.221
10,279
1.884
614
183
3,653
1,364
11,771
1,578
623
188
4,140
1,317
12,821
1,911
652
169
4,248
1,214
13,397
1,728
620
152
4,033
1,199
13,902
1,524
576
146
4,714
1,191
14,215
2,178
567
125
8
9
10
11
12
13
14
15
16
17
18
19
By area
Maturity of 1 year or less1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2
Maturity of over 1 year1
Europe
Canada
Latin America and Caribbean
Asia
Africa
Mother2
1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.
Nonbank-Reported
3.20
Data
A61
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks*
Billions of dollars, end of period
19782
Area or country
1976
1980
1979
1977
Sept.
1 Total
206.8
240.0
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
247.5
266.3
264.0
275.6
294.0
303.8
307.6
328.2
338.5
140.4
10.8
12.0
11.4
6.2
4.3
2.4
4.4
57.6
6.8
24.7
154.4
13.1
14.1
12.7
6.9
4.5
2.7
3.4
64.7
7.2
25.2
159.7
13.6
13.9
12.9
7.2
4.4
2.8
3.5
67.3
7.9
26.2
Sept.P
100.3
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.7
5.1
15.9
116.4
8.4
11.0
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8
113.5
8.4
11.7
9.7
6.1
3.5
2.2
4.3
44.2
4.9
18.5
124.8
9.0
12.2
11.3
6.7
4.4
2.1
5.4
47.3
6.0
20.6
119.1
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4
5.9
19.0
125.3
9.7
12.7
10.8
6.1
4.0
2.0
4.8
50.3
5.5
19.5
135.8
10.7
12.0
12.8
6.1
4.7
2.3
5.0
53.7
6.0
22.3
138.4
11.1
11.6
12.2
6.4
4.8
2.4
4.8
56.4
6.3
22.4
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22
Other Western Europe
23 South Africa
24
Australia
15.0
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2
18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
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
3.5
1.5
1.3
2.0
1.4
18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3
18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9
1.8
1.4
19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.5
1.7
1.3
19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3
18.8
1.7
2.1
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.2
20.3
1.8
2.2
1.3
2.5
2.4
.6
3.9
1.4
1.6
1.5
1.2
20.4
1.7
2.3
1.2
2.6
2.4
38.6
4.2
1.3
1.7
1.2
1.2
25 OPEC countries 3
26 Ecuador
27 Venezuela
28
Indonesia
29 Middle East countries
30 African countries
12.6
.7
4.1
2.2
4.2
1.4
17.6
1.1
5.5
2.2
6.9
1.9
20.4
1.6
6.2
1.9
'8.7
2.0
22.7
1.6
7.2
2.0
9.5
2.5
22.6
1.5
7.2
1.9
9.4
2.6
22.7
1.6
7.6
1.9
9.0
2.6
23.4
1.6
7.9
1.9
9.2
2.8
22.9
1.7
8.7
1.9
8.0
2.6
21.8
1.8
7.9
1.9
7.8
2.5
20.9
1.8
7.9
1.9
6.9
2.5
21.2
1.9
8.3
1.9
6.7
2.4
31 Non-OPEC developing countries
44.2
48.7
49.6
52.6
53.9
55.9
58.8
62.8
63.7
67.5
72.8
1.9
11.1
.8
1.3
11.7
1.8
2.8
2.9
12.7
.9
1.3
11.9
1.9
2.6
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
3.1
14.9
1.7
1.5
10.9
1.6
3.5
3.5
15.1
1.8
1.5
10.7
1.4
3.3
4.1
15.1
2.2
1.7
11.4
1.4
3.6
5.0
15.2
2.5
2.2
12.0
1.5
3.7
5.5
15.0
2.5
2.1
12.1
1.3
3.6
5.6
15.3
2.7
2.2
13.6
1.4
3.6
7.5
15.8
3.2
2.3
14.4
1.5
3.9
2 G-10 countries and Switzerland
3
Belgium-Luxembourg
4
France
5
Germany
6
Italy
Netherlands
7
8
Sweden
9
Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
Latin America
Argentina
Brazil
Chile
36
37
38
Mexico
Peru
Other Latin America
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia4
Philippines
Thailand
Other Asia
0
2.4
.2
1.0
3.1
.5
2.2
.7
.5
.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4
.0
2.4
.3
.7
3.5
.6
2.8
1.1
.3
.0
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
.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.3
.1
3.4
.2
1.3
5.5
.9
4.2
1.6
.4
.1
3.6
.2
.9
6.5
.8
4.4
1.4
.4
.1
3.7
.2
1.2
7.1
.9
4.6
1.5
.5
.1
4.1
.2
1.1
7.3
.9
4.8
1.5
.5
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 5
.4
.3
.2
1.2
.3
.5
.3
.7
.4
.5
.2
1.3
.4
.6
.2
1.4
.5
.6
.2
1.4
.7
.5
.2
1.5
.6
.5
.2
1.6
.6
.6
.2
1.7
.7
.5
.2
1.8
.7
.5
.2
1.8
.7
.6
.2
2.0
54
55
Yugoslavia
Other
5.2
1.5
.8
2.9
6.3
1.6
1.1
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
7.2
.9
1.8
4.6
7.3
.7
1.8
4.8
7.3
.6
1.9
4.9
7.2
.5
2.1
4.6
7.3
.5
2.1
4.7
24.7
10.1
.5
3.8
.6
3.0
.1
2.2
4.4
.0
26.1
9.9
.6
3.7
.7
3.1
.2
3.7
3.7
.5
30.1
11.5
.7
6.7
.6
3.1
.1
4.0
2.9
.5
30.9
10.4
.7
7.4
.8
3.0
.1
4.2
3.9
.5
33.7
12.3
.6
7.1
.8
3.4
.1
4.8
4.2
.4
37.0
14.4
.7
7.4
1.0
3.8
.1
4.9
4.2
.4
38.6
13.0
.7
9.5
1.1
3.4
.2
5.5
4.9
.4
40.4
13.7
.8
9.4
1.2
4.3
.2
6.0
4.5
.4
42.6
14.0
.6
11.3
.9
4.9
.2
5.7
4.7
.4
43.8
13.6
.6
9.5
1.1
5.6
.2
6.9
5.9
.4
43.7
12.6
.6
10.1
1.3
5.7
.2
7.3
5.6
.4
5.0
5.3
8.6
9.1
9.5
9.9
10.6
11.7
13.1
14.3
13.7
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama 6
62 Lebanon
63
Hong Kong
64 Singapore
65 Others 7
66 Miscellaneous and unallocated 8
1.The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (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.Beginning with data for June 1978, the claims of the U.S. offices
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.In addition to the Organization of Petroleum Exporting Countries shown individually, this group includes other members of OPEC (Algeria, Gabon, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates)
as well as Bahrain and Oman (not formally members of OPEC).
4.Foreign branch claims only through December 1976.
5.Excludes Liberia.
6.Includes Canal Zone beginning December 1979.
7.Foreign branch claims only.
8.Includes New Zealand, Liberia, and international and regional organizations.
A62
3.21
International Statistics • January 1981
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Holdings and Transactions
Millions of dollars
1980
Country or area
1978
1980
1979
Jan.Nov.
June
May
July
Aug.
Sept.
Oct.
NOV.P
Holdings (end of period) 1
1 Estimated total2
44,946
50,255
51,294
53,054
53,742
52,979
54,727
55,411r
2 Foreign countries2
39,817
44,796
46,833
48,653
49,448
48,850
50,031
50,934'
51,728
3 Europe 2
4
Belgium-Luxembourg
5
Germany 2
6
Netherlands
7
Sweden
Switzerland2
8
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
17,072
19
8,705
1,358
285
977
5,373
354
0
152
23,705
60
12,937
1,466
647
1,868
6,236
491
0
232
24,075
28
13,225
1,412
653
1,574
6,665
519
24,377
28
12,976
1,437
647
1,731
7,001
556
385
423
24,157
45
12,578
1,547
650
1,675
7,091
571
0
481
23,541
89
11,978
1,522
640
1,675
7,106
531
0
469
23,914
91
11,991
1,640
611
1,566
7,473
542
0
480
23,681
78
11,704
1,658
607
1,517
7,555
562
0
503
23,608
74
11,639
1,777
614
1,491
7,428
584
0
532
13
14
15
16
17
18
19
20
416
144
110
162
21,488
11,528
691
-3
466
103
200
163
19,805
11,175
591
-3
512
103
209
200
21,270
9,543
593
-2
616
200
215
200
22,752
9,545
492
-6
690
248
242
200
23,535
9,614
592
-6
706
261
240
205
23,546
9,465
592
-5
768
302
241
225
24,253
9,444
617
0
768
292
255
221
25,291
9,503
685'
5
942
292
278
372
25,927
9,547
715
4
21 Nonmonetary international and regional
organizations
5,129
5,429
4,461
4,401
4,294
4,129
4,696
4,477
4,350
22
23
5,089
41
5,388
37
4,401
60
4,338
60
4,234
60
4,066
60
4,632
65
4,430
44
4,302
44
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
International
Latin American regional
56,078
Transactions (net purchases, or sales ( - ) during period)
24 Total2
6,305
25 Foreign countries
26
Official institutions
27 Other foreign 2
28 Nonmonetary international and regional
organizations
MEMO: Oil-exporting countries
29 Middle East 3
30 Africa 4
5,278
5,854
-716
1,757
692
-767
1,752
681'
667
5,921
3.729
2.193
2
4,980
1,697
3,284
6,932
4,135
2,795
479
386
93
1,820
1,716
104
795
762
33
-598
-745
146
1,181
998
183
903'
664'
240
794
302
492
383
301
-1,077
-1,195
-63
-104
-168
571
-1,785
329
- 1,014
- 100
7,314
123
462
0
1,427
-100
598
100
140
0
601
25
990
68'
-127
561
30
2. Beginning December 1978. includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
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.
3.22
-222
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1980
Assets
1977
1978
1979
June
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold2
Aug.
Sept.
Oct.
Nov.
Dec .P
424
367
429
691
436
336
460
368
368
411
91,962
15,988
117,126
15,463
95,075
15,169
93,661
15,034
95,525
15,034
96,504
15,025
96,227
14,987
98,121
14,986
102,786
14,968
102,417
14,965
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
3.23
A63
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
_
, __
Transactions, and area or country
1980
1980
Jan.May
NOV.
June
Aug.
July
Sept.
Oct.
NOV.P
U.S. corporate securities
STOCKS
20,145
17,723
22,643
21,017
35,855
31,164
1.940
1,958
2,550
2,390
3,080
2,781
3,505
3,301
3,569
3,329
4,438
3,920
4,455
3,588
3 Net purchases, or sales ( - )
2,423
1,627
4,690
-17
160
299
203
241
519
867
4 Foreign countries
2,469
1,610
4,694
-19
162
296
205
246
524
865
1,283
47
620
-22
-585
1,230
74
151
781
189
-13
3
217
122
-221
-71
-519
964
552
-19
656
211
-14
7
2,813
422
177
-311
394
2,203
617
155
1,007
65
2
35
105
23
14
-40
-17
106
-42
-4
-60
-21
0
3
56
9
-5
-25
-19
99
24
27
20
28
-2
8
115
62
-13
-27
-82
188
81
-25
130
-5
-1
2
42
30
-21
-26
-127
216
13
-32
183
-22
0
21
-83
-33
-18
-38
-122
153
-22
-83
410
19
2
4
300
53
35
-29
83
172
-66
132
126
33
2
-3
631
109
121
-58
263
251
263
57
-109
18
0
5
-46
17
-4
2
-2
2
-2
-5
-6
2
18 Foreign purchases
19 Foreign sales
7,985
5,688
8,835
7,602
14,309
9,137
1.280
1.257
1,834
1,152
1,695
898
1,087
589
645
481
1,612
739
1,181
902
20 Net purchases, or sales ( - )
2,297
1,233
5,172
23
682
797
498
165
8731 »
278
21 Foreign countries
1,878
1,330
5,251
249
625
769
475
214
918
283
22
23
24
25
26
27
28
29
30
31
32
33
736
30
-2
12
-202
930
102
98
810
131
-1
1
626
11
58
-202
-118
814
80
109
424
88
1,521
131
191
-82
40
1,275
142
190
3,299
84
5
10
92
47
104
-14
-29
-34
9
25
104
17
1
105
12
-14
6
-10
110
5
23
483
5
129
8
-50
-26
-16
196
-2
29
600
13
27
6
-11
-7
-9
53
25
32
382
9
-23
-2
4
7
284
16
30
8
1
235
9
7
594
24
0
0
0
4
1
0
0
-2
0
0
151
12
13
-7
8
154
21
11
105
-3
0
-1
419
-96
-79
-226
57
28
23
-49
-45
-4
1 Foreign purchases
2 Foreign sales
5
6
7
8
9
10
11
12
13
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
17 Nonmonetary international and regional
organizations
BONDS 2
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
34 Nonmonetary international and regional
organizations
1
1
0
-5
12
18
194
14
0
Foreign securities
35 Stocks, net purchases, or sales ( - )
36 Foreign purchases
37 Foreign sales
527
3,666
3,139
-786
4,615
5,401
-2,160
7,105
9,265
-241
450
691
-164
491
655
-76
654
731
-201
605
805
-558
694
1,253
-335
788
1,143
134
924
790
38 Bonds, net purchases, or sales ( - )
39 Foreign purchases
40 Foreign sales
-4,185
11,098
15,283
-3,858
12,661
16,519
-1,071
15,241
16,312
-251
1,479
1.730
-618
1,637
2,255
374
1,725
1,351
-259
1,374
1,634
-84
1,231
1,316
-206
1,651
1,857
92
1,247
1,156
-3,658
-4,644
-3,231
-491
-781
298
-460
-643
-561
226
-3,471
-61
-3,229
221
186
-441
-146
-3,894
-1,646
-2,601
345
48
-65
25
-3,733
-858
-2,096
137
-1,041
31
93
-498
-214
-256
45
-82
4
5
-800
-474
-283
-25
-65
3
44
-32
10
-29
34
-55
1
7
-384
-176
42
-14
-313
76
-680
-110
-344
7
-223
-4
-6
-576
113
-651
-35
-16
29
-16
203
-30
328
-24
-73
-1
3
-187
-750
502
7
19
330
-76
37
15
23
41 Net purchases, or sales ( - ) , of stocks and bonds
42
43
44
45
46
47
48
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).
0
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.
A64
International Statistics • January 1981
3.24
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States'
Millions of dollars, end of period
1979
Type, and area or country
1978
1980
1979
Mar.
June
Sept.
Dec.
Mar.
June.
1 Total
14,879'
16,950'
14,512'
15,519'
15,700'
16,950'
17,373'
18,500
2 Payable in dollars
3 Payable in foreign currencies 2
11,516'
3,363
13,932'
3,018'
11,535'
2,977
12,631'
2,888'
12,692'
3,008'
13,932'
3,018'
14,437
2,936'
15,145
3,354
By type
4 Financial liabilities
5
Payable in dollars
6 Payable in foreign currencies
6,305
3,841
2,464
7,311'
5,101'
2,210'
6,062'
3,804'
2,258
6,049'
3,876'
2,173'
6,131'
3,877'
2,254'
7,311'
5,101'
2,210'
7,802'
5,618
2,184'
8,303
5,757
2,546
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities
8,574'
4,008'
4,566
9,639'
4,380'
5,258'
8,450'
3,528'
4,922
9,470'
4,302'
5,168
9,568'
4,051'
5,518
9,639'
4,380'
5,258'
9,571
4,138
5,433
10,197
4,299
5,898
7,675'
899
8,830'
808'
7,731'
719
8,755'
715'
8,815'
754'
8,830'
808'
8,819
752
9,388
809
3,903
289
167
366
390
248
2,110
4,579'
345
168
497
834
168
2,372'
3,665'
266
139
311
422
244
2.069'
3,582'
355
134
283
401
235
1,955'
3,713'
317
126
381
542
190
1,957
4,579'
345
168
497
834
168
2,372'
4,813
360
188
520
801
172
2,568
5,389
413
341
668
804
231
2,763
10
11
12
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
27
28
29
Japan
Middle East oil-exporting countries 3
244
445
252
290
304
445
383
1,357
478'
4'
10
194
102
49
1,483
375'
81'
18
514
121
72
1,346
447'
5'
13
201
101
55
1,395
477'
2'
19
189
131
68
1,347
390'
2'
14
198
122
71
1,483
375'
81'
18
514
121
72
1,764'
459
83'
22
694'
101
70
791
714
32
795
723
31
790
714
23
772
706
25
757
700
19
795
723
31
821
737
26
775
680
31
482
1,632
433
2
25
700
101
72
30
31
Africa
Oil-exporting countries 4
5
2
4
1
5
1
6
2
5
1
4
1
11
1
10
1
32
All other 5
5
4
5
5
5
4
10
15
3,033
75
321
529
246
302
824
3,621'
137
467
534
227
310
1,073'
3,003
70
350
395
224
329
870
3,621'
137
467
534
227
310
1,073'
3,682
117
503
533
288
382
994
4,006
132
485
714
245
462
1,120
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
3,303'
81
353
471
230
439
997
3,393'
103
394
539
206
348
1,015
40
Canada
667
720
591
41
42
43
44
45
46
47
Latin America
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
997
25
97
74
53
106
303
1,323
69
32
203
21
257
301
1,168
16
42
61
89
236
356
1,335
65
82
165
121
216
323
1,401
89
48
186
21
270
359
1,323
69
32
203
21
257
301
1,253
4
47
228
20
235
211
1,307
26
107
151
37
311
210
2,932'
448'
1,523
2.865'
488'
1,017'
2,650'
429'
1,122
3,034'
516'
1,225
2,996'
517'
1,070
2,865'
488'
1,017'
2,912
578
901
3,051
411
1,017
48
49
50
Japan
Middle East oil-exporting countries 3
868'
614
663'
717'
868'
51
52
Africa
Oil-exporting countries 4
743
312
728
384
779
343
891
410
775
370
728
384
742
382
875
498
53
Allother 5
203
233'
237
243
287
233'
263
367
1. For a description of the changes in the International Statistics tables, see July
1979 BULLETIN, p. 550.
2. Before 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
3.25
CLAIMS ON UNAFFILIATED FOREIGNERS
United States*
A65
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1980
1979
Type, and area or country
1978
1979
Mar.
June
Sept.
Dec.
Mar.
June
1
27,859'
30,859'
30,798'
30,296'
30,949'
30,859'
31,953
31,808
2 Payable in dollars
3 Payable in foreign currencies 2
24,861'
2,998'
27,703'
3,156'
27,990'
2,808'
27,394'
2,902'
28,280'
2,668'
27,703'
3,156'
28,956
2,997
28,778
3,030
Payable in dollars
Payable in foreign currencies
Other financial claims
Payable in dollars
Payable in foreign currencies
16,522'
11,062'
10,000'
1,061
5,461'
3,855'
1,606
18,107'
12,461'
11,572'
889'
5,646
3,792'
1,854'
20,072'
14,615'
13,695'
920
5,458
3,906'
1,551'
19,303'
13,643'
12,706'
938
5,660'
4,059'
1,601'
19,176'
13,730'
12,830'
901
5,446'
4,030'
1,416'
18,107'
12,461'
11,572'
889'
5,646
3,792'
1,854'
19,237
13,563
12,601
963
5,673
4,046
1,627
18,467
12,626
11,766
860
5,841
4,097
1,744
11 Commercial claims
17 Trade receivables
13 Advance payments and other claims
11,337
10,778'
559
12,752'
12,064'
688
10,726'
10,056'
670
10,993'
10,364'
628
11,773
11,061
712
12,752'
12,064'
688
12,716
12,071
645
13,341
12,638
703
14
15
11,006'
331
12,339'
413'
10,389'
337
10,629'
363
11,421
352
12,339'
413'
12,309
407
12,915
426
5,218'
48
178
510
103
98
4,023'
6,115'
32
177
407'
53
73
5,053'
5,350'
63
171
266
85
96
4,431'
5,638'
54
183
361
62
81
4,650'
6,562'
33
191
393
51
85
5,522'
6,115'
32
177
407'
53
73
5,053'
5,826
19
290
298
39
89
4,778
5,812
23
307
185
37
96
4,835
Canada
4,482
4,812'
5,232'
5,146'
4,767'
4,812'
4,882
4,778
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,665'
2,959'
80
151
1,288'
163
150
6,190'
2,680'
30
163
2,001'
158
133
8,405'
4,493'
63
156
2,536'
160
142
7,433'
3,637'
57
141
2,407'
159
151
6,682'
3,284'
31
133'
1,838
156
139
6,190'
2,680'
30
163
2,001'
158
133
7,512
3,448
34
128
2,591
169
132
6,800
2,962
25
120
2,393
178
132
922
307
18
693
190
16
829
207
16
800
217
17
818
222
21
693
190
16
708
226
18
756
253
16
181
10
253
49
204
26
227
23
277
41
253
49
265
40
256
35
55
44
52
61
69
44
43
65
3,811
173
490
504
275
230
676
3,833
170
470
421
307
232
731
4,127
179
518
448
262
224
818
4,751
208
703
515
347
349
924
4,808
255
662
504
297
429
904
By type
4
5
6
7
8
9
10
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Japan
Middle East oil-exporting countries 3
Africa
Oil-exporting countries 4
All other 5
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
4,895'
203
727
584'
298
269
905
4,895'
203
727
584'
298
269
905
Canada
1,096'
1,111'
1,106'
1,164'
843
862
895
Latin America and Caribbean
Bahamas
2,547
109
215
629
9
506
292
2,853'
21
197
647
16
698'
342
2,395
117
241
495
10
489
274
2,406
98
118
503
25
584
296
2,595'
16
154
568
13
648
346
2,853'
21
197
647
16
698'
342
2,990
19
135
656
11
833
349
3,278
19
133
697
9
918
394
3,082'
976'
717
3,365'
1,127
766'
2,765
896
682
2,967
1,005
685
3,116
1,128
701
3,365'
1,127
766'
3,370
1,209
718
3,544
1,129
830
447
136
556
133
443
131
487
139
549
140
556
133
518
114
567
116
179
240
200
194
220
240
225
249
Brazil
British West Indies
52
53
54
Middle East oil-exporting countries
55
56
Oil-exporting countries 4
57
3,985
144
609
399
267
198
827
Allother 5
3
1. For a description of the changes in the International Statistics tables, see July
1979 BULLETIN, p . 5 5 0 .
2. Prior to December 1978, foreign currency data include only liabilities denominated in foreign currencies with an original maturity of less than one year.
843'
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.
A66
3.26
International Statistics • January 1981
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Country
Country
Percent
Percent
Dec. 1980
Mar. 1980
July 1980
June 1980
Dec. 1980
Oct. 1980
France
Germany, Fed. Rep. of
Italy
Japan
Netherlands
Norway
Aug. 1977
May 1980
Sept. 1980
Nov. 1980
Oct. 1980
Nov. 1979
Percent
Sweden
Switzerland . . . .
United Kingdom
Venezuela
10.0
3.0
14.0
10.0
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.
NOTE. Rates shown are mainly those at which the central bank either
d i s c o u n t s or m a k e s a d v a n c e s against eligible c o m m e r c i a l p a p e r a n d / o r
government securities for commercial banks or brokers. For countries with
3.27
Month
effective
9.5
7.5
16.5
7.25
8.0
9.0
Month
effective
137.01
6.75
12.0
40.0
17.26
11.00
Argentina
Austria ..
Belgium .
Brazil . . .
Canada .
Denmark
Rate on Dec. 31, 1980
Rate on Dec. 31. 1980
Rate on Dec. 31, 1980
Country
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1980
1978
Country, or type
1980
1979
July
June
1
2
3
4
5
6
7
8
9
10
Sept.
Oct.
Nov.
Dec.
8.74
9.18
8.52
3.67
0.74
Netherlands
France
Italy
Belgium
Japan
11.96
13.60
11.91
6.64
2.04
14.00
16.59
13.12
9.45
5.79
9.41
16.68
11.73
10.00
5.64
9.33
15.82
10.91
9.59
5.29
10.82
16.45
10.47
8.93
5.52
12.07
15.89
10.73
8.90
5.57
13.55
15.87
11.71
8.99
5.40
16.46
15.84
12.96
9.37
5.53
19.47
14.64
16.83
10.11
6.61
6.53
8.10
11.40
7.14
4.75
Eurodollars
United Kingdom
Canada
Germany
Switzerland
9.33
9.44
11.85
10.48
6.10
10.60
12.18
17.50
14.06
11.45
10.72
12.37
17.25
14.69
13.51
10.06
11.87
17.49
13.30
12.89
9.97
11.20
17.30
12.52
12.04
10.31
11.81
17.50
12.35
11.46
9.63
11.69
18.16
12.24
10.98
9.59
11.26
17.51
12.40
9.74
9.69
11.52
17.47
12.75
9.60
NOTE. Rates are for 3-month interbank loans except for the following:
C a n a d a , finance company p a p e r ; Belgium, time deposits of 20 million
3.28
Aug.
francs and over; and Japan, loans and discounts that can be called after
being held over a minimum of two month-ends.
FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1980
Country/currency
1978
1979
1980
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
Denmark/krone
114.41
6.8958
3.1809
87.729
18.156
111.77
7.4799
3.4098
85.386
19.010
114.00
7.7349
3.4247
85.530
17.766
115.29
7.9421
3.5335
86.836
18.215
115.85
8.0578
3.5766
86.783
18.487
115.77
7.8840
3.4883
86.263
18.070
117.04
7.8916
3.4844
85.861
18.068
117.43
7.6714
3.3875
85.538
17.639
116.75
7.3433
3.2457
84.286
16.962
116.86
7.1549
3.1543
83.560
16.573
6
7
8
9
10
Finland/markka
France/franc
Germany/deutsche mark
India/rupee
Ireland/pound
24.337
22.218
49.867
12.207
191.84
27.732
23.504
54.561
12.265
204.65
26.892
23.694
55.089
12.686
205.77
27.448
24.310
56.584
12.751
211.16
27.699
24.657
57.245
12.875
214.74
27.353
24.106
55.867
12.849
210.62
27.428
24.056
55.883
12.903
210.34
27.122
23.489
54.280
12.932
203.88
26.452
22.515
52.113
12.868
194.59
25.903
21.925
50.769
12.608
189.01
11
12
13
14
15
Italy/lira
Japan/yen
Malavsia/ringgit
Mexico/peso
Netherlands/guilder
16
17
18
19
20
New Zealand/dollar
Norway/krone
Portugal/escudo
South Africa/rand
Spain/peseta
103.64
19.079
2.2782
115.01
1.3073
102.23
19.747
2.0437
118.72
1.4896
97.337
20.261
1.9980
128.54
1.3958
98.729
20.608
2.0422
129.00
1.4280
98.643
20.762
2.0466
130.79
1.4122
97.738
20.555
2.0163
131.55
1.3810
98.309
20.676
2.0096
132.73
1.3639
98.069
20.421
1.9756
133.13
1.3423
96.770
19.938
1.9178
133.20
1.3085
95.404
19.370
1.8773
132.83
1.2653
21
22
23
24
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United Kingdom/pound
6.3834
22.139
56.283
191.84
6.4226
23.323
60.121
212.24
6.1947
23.647
59.697
232.58
6.2186
23.995
61.207
233.59
6.3288
24.238
62.203
237.32
6.2980
23.953
60.527
237.04
6.3196
24.072
61.012
240.12
5.9707
23.845
60.185
241.64
5.8139
23.240
57.942
239.41
5.7379
22.722
56.022
234.59
92.39
88.09
87.39
85.29
84.65
86.09
85.50
86.59
89.31
90.99
1
2
3
4
5
.11782
.47981
43.210
4.3896
46.284
.12035
.45834
45.720
4.3826
49.843
.11694
.44311
45.967
4.3535
50.369
.11973
.45894
46.625
4.3684
51.578
.12026
.45232
46.658
4.3511
52.337
.11801
.44666
46.484
4.3389
51.305
.11742
.46644
47.127
4.3443
51.398
.11441
.47777
46.902
4.3324
50.052
.11000
.46928
46.187
4.3166
48.102
.10704
.47747
45.406
4.3071
46.730
MEMO:
25 United States/dollar 1
1. Index of weighted average exchange value of U.S. dollar against currencies of other G - 1 0 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global t r a d e of each of the 10 c o u n t r i e s . 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.
Time and Savings Deposits
4.10
TIME AND SAVINGS DEPOSITS
A67
Held by Insured Commercial Banks on Recent Survey Dates
Deposits
Types of deposits, denomination,
and original maturity
Number of issuing banks
Apr. 30,
1980
July 30,
1980
Millions of dollars
Oct. 29,
1980
Apr. 30,
1980
July 30,
1980
Percentage change
Oct. 29,
1980
Apr. 30July 30
July 30Oct. 29
Total time and savings deposits
14,209
14,188
14,364
683,250
685,224
713,860
0.3
Savings
Holder
Individuals and nonprofit organizations
Partnerships and corporations operated for profit
(other than commercial banks)
Domestic governmental units
Allother
14,209
14,188
14,364
187,946
204,139
211,128
8.6
3.4
14,209
14,188
14,364
175,571
190,035
196,074
8.2
3.2
10,242
8,849
1,431
10,675
8,946
2,092
10,528
9,333
1,530
8,032
3,868
475
9,860
3,632
612
10,974
3,567
512
22.8
-6.1
28.9
11.3
-1.8
-16.3
14,094
14,073
14,246
271,514
269,173
274,507
-0.9
2.0
9,680
4,050
5,920
4,278
7,608
14,012
4,357
10,528
7,405
13,392
12,773
13,412
11,443
8,310
10,284
10,098
4,276
5,965
5,019
7,826
13,991
4,882
10,363
7,797
13,707
12,575
13,443
11,627
8,488
10,283
9,125
3,551
5,224
3,756
7,334
14,127
4,360
10,583
7,802
13,597
12,636
13,496
11,586
8,111
10,392
1,785
463
447
370
504
97,704
1,748
16,655
2,173
13,507
9,291
33,131
18,775
2,424
5,064
2,069
581
555
428
505
92,210
1,572
16,451
1,991
12,207
8,529
30,587
18,373
2,501
5,309
2,232
540
485
335
871
85,446
1,404
15,262
1,895
11,108
7,606
27,866
17,776
2,528
5,488
15.9
25.4
24.1
15.8
0.1
-5.6
-10.1
-1.2
-8.4
-9.6
-8.2
-7.7
-2.1
3.2
4.9
7.9
-7.0
-12.5
-21.8
72.5
-7.3
-10.7
-7.2
-4.8
-9.0
-10.8
-8.9
-3.2
1.1
3.4
13,666
13,670
13,830
158,198
147,893
152,848
-6.5
3.4
12,612
12,888
13,374
8,763
21,691
28,493
147.5
31.4
Interest-bearing time deposits, less than $100,000
Holder
Domestic governmental units1
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
Other than domestic governmental units1
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to ZVi years
2Vi up to 4 years
4 up to 6 years
6 up to 8 years
8 years and over
IRA and Keogh Plan time deposits, 3 years or more .
Money market certificates, $10,000 or more, exactly 6
months
Variable interest rate ceiling time deposits of less than
$100,000 with maturities of 2Vi years or more 2 . . .
4.2
12,519
12,593
13,163
218,256
205,372
222,513
-5.9
8.3
Non-interest-bearing time deposits
Less than $100,000
$100,000 or more
1,463
1,166
607
1,319
914
719
1,386
1,018
688
3,965
939
3,026
4,310
838
3,472
4,230
910
3,319
8.7
-10.8
14.7
-1.9
8.7
-4.4
Club accounts (Christmas savings, vacation, and the like)
8,968
8,962
8,375
1,570
2,232
1,483
42.1
-33.6
Interest-bearing time deposits, $100,000 or more
1. Excludes all money market certificates, IRAs, and Keogh Plan accounts.
2. Effective Jan. 1, 1980, 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 2Vi years or more. The
maximum rate for commercial banks is 3/4 percentage points below the yield on
2^-year U.S. Treasury securities: the ceiling rate for thrift institutions is Va percentage point higher than that for commercial banks.
NOTE. All banks that had either discontinued offering or never offered certain
types of deposits as of the survey date are not counted as issuing banks. However,
small amounts of deposits held at banks that had discontinued issuing certain types
of deposits are included in the amounts outstanding.
Details may not add to totals because of rounding.
A68
4.11
Special Tables • January 1981
SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on July 30, 1980,
and Oct. 29, 1980, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New
Deposits in Each Category, and by Size of Bank
Size of bank
(total deposits in millions of dollars)
Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, ana distribution of deposits by
most common rate
All banks
All banks
Less than 100
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
July 30,
1980
100 and over
Oct. 29,
1980
Less than 100
July 30,
1980
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
100 and over
July 30,
1980
Oct. 29,
1980
July 30,
1980
Amount of deposits (in millions of dollars)
or percentage distribution
Number of banks, or percentage distribution
Savings deposits
Individuals and nonprofit
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO: Paying ceiling rate 1
Partnerships and corporations
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO: Paying ceiling rate 1
Domestic governmental units
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO: Paying ceiling rate 1
All other
Issuing banks
Distribution, total
4.50 or less
4.51-5.00
5.01-5.25
MEMO: Paying ceiling rate 1
Time deposits less than $100,000
Domestic governmental units
30 up to 90 days
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
5.51-8.00
MEMO: Paying ceiling rate 1
90 up to 180 days
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
5.51-8.00
MEMO: Paying ceiling rate 1
180 days up to 1 year
Issuing banks
Distribution, total
5.00 or less
5.01-5.50
5.51-8.00
MEMO: Paying ceiling rate 1
1 year and over
Issuing banks
Distribution, total
5.50 or less
5.51-6.00
6.01-8.00
MEMO: Paying ceiling rate 1
For notes see end of table.
14,364
100
4.0
6.9
89.1
89.1
14,188
100
3.3
7.3
89.4
89.4
13,042
100
4.0
6.9
89.0
89.0
12,971
100
3.1
7.4
89.5
89.5
1,322
100
4.1
6.4
89.5
89.5
1,217
100
5.2
5.8
88.9
88.9
196,074
100
4.5
5.2
90.3
90.3
190,035
100
5.2
5.7
89.1
89.1
68,819
100
4.8
5.7
89.5
89.5
68,095
100
5.5
8.4
86.2
86.2
127,255
100
4.4
4.9
90.7
90.7
121,940
100
5.1
4.2
90.7
90.7
10,528
100
1.1
5.6
93.3
93.3
10,675
100
1.2
6.9
91.9
91.9
9,232
100
1.2
5.5
93.3
93.3
9,489
100
1.3
7.1
91.6
91.6
1,296
100
.8
6.2
92.9
92.9
1,186
100
1.0
5.3
93.7
93.7
10,974
100
.8
5.6
93.7
93.7
9,860
100
.8
5.3
93.9
93.9
3,199
100
.5
6.5
93.0
93.0
2,633
100
.8
7.7
91.6
91.6
7,775
100
.9
5.2
93.9
93.9
7,227
100
.9
4.4
94.7
94.7
9,319
100
3.0
1.8
95.2
95.2
8,935
100
1.7
6.3
92.0
92.0
8,377
100
3.3
1.4
95.3
95.3
8,055
100
1.9
6.4
91.8
91.8
942
100
.6
5.3
94.1
94.1
880
100
.7
5.8
93.5
93.5
3,554
100
2.0
3.9
94.1
94.1
3,613
100
.2
12.4
87.4
87.4
1,924
100
3.6
1.9
94.5
94.5
2,040
100
.2
14.2
85.6
85.6
1,629
100
.2
6.2
93.6
93.6
1,573
100
.2
10.0
89.8
89.8
1,525
100
6.1
4.0
89.9
89.9
2,092
100
5.9
3.5
90.6
90.6
1,284
100
6.3
4.6
89.2
89.2
1,888
100
6.0
3.8
90.3
90.3
240
100
5.3
1.0
93.7
93.7
204
100
5.5
1.1
93.4
93.4
512
100
1.0
15.6
83.4
83.4
612
100
.7
10.3
89.0
89.0
360
100
2
152
100
3.5
188
100
22.2
77.8
77.8
424
100
1.0
14.9
84.1
84.1
96.5
96.5
100.0
100.0
3,545
100
19.7
35.6
44.8
37.5
4,275
100
20.1
39.8
40.0
30.8
2,960
100
21.2
31.5
47.3
39.2
3,667
100
21.4
37.6
41.0
31.6
586
100
11.8
55.9
32.3
28.9
608
100
12.3
53.4
34.3
25.6
530
100
5.7
21.7
72.6
67.7
581
100
8.3
14.0
77.7
67.8
173
100
14.9
13.4
71.7
64.0
235
100
18.6
12.5
68.9
57.2
357
100
1.2
25.8
73.1
69.4
346
100
1.3
14.9
83.7
75.0
5,218
100
4.1
28.9
67.0
21.6
5,961
100
5.0
20.8
74.2
26.2
4,452
100
4.5
29.5
65.9
21.1
5,194
100
5.6
20.1
74.3
26.6
766
100
1.8
25.3
72.8
24.7
767
100
.6
25.8
73.5
23.5
483
100
.7
33.5
65.8
29.5
554
100
.9
30.4
68.7
31.6
331
100
.6
40.4
59.0
33.4
385
100
1.3
27.1
71.7
37.8
152
100
.8
18.6
80.5
20.9
169
100
38.1
61.9
17.3
3,756
100
1.6
27.4
71.0
25.6
5,019
100
4.7
20.0
75.3
31.8
3,181
100
1.9
28.6
69.5
25.3
4,432
100
5.4
20.2
74.4
32.8
575
100
586
100
428
100
.7
19.1
80.2
29.5
155
100
.3
16.2
83.6
45.4
285
100
1.0
23.9
75.1
37.9
180
100
144
100
13.5
86.5
25.3
9.6
90.4
12.7
7,322
100
2.8
52.9
44.3
11.5
7,821
100
3.7
49.4
46.9
23.9
6,535
100
2.6
52.7
44.7
10.2
7,070
100
3.6
48.6
47.7
24.6
505
100
11.8
40.7
47.5
25.3
692
100
54.4
25.5
20.0
5.6
418
100
12.4
40.5
47.1
24.6
178
100
3.5
76.4
20.1
14.0
87
100
8.6
41.7
49.6
28.6
(2)
20.9
(2)
18.0
79.1
27.2
82.0
24.0
335
100
.1
14.7
85.2
34.6
787
100
4.3
55.0
40.7
22.4
751
100
4.7
56.2
39.1
17.3
870
100
44.0
35.9
20.1
7.3
()
(2)
2
()
(2)
(2)
(2)
(2)
Time and Savings Deposits
4.11
A69
SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Continued
Size of bank
(total deposits in millions of dollars)
Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, and distribution of deposits by
most common rate
All banks
All banks
Less than 100
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
July 30,
1980
Oct. 29,
1980
July 30,
1980
Amount of deposits (in millions of dollars)
or percentage distribution
Number of banks or percentage distribution
Time deposits less than $100,000
(cont.)
Other than domestic governmental
units
30 up to 90 days
Issuing banks
Distribution, total
5.00 or less
5.01-5.25
MEMO: Paying ceiling rate 1
100 and over
Less than 100
100 and over
4,360
100
27.8
72.2
72.2
4,877
100
19.4
80.6
80.6
3,437
100
31.7
68.3
68.3
4,020
100
19.5
80.5
80.5
923
100
13.6
86.4
86.4
858
100
19.0
81.0
81.0
1,404
100
21.9
78.1
78.1
1,572
100
15.6
84.4
84.4
311
100
11.9
88.1
88.1
311
100
9.1
90.9
90.9
1,093
100
24.8
75.2
75.2
1,261
100
17.2
82.8
82.8
90 up to 180 days
Issuing banks
Distribution, total
4.99 or less
5.00-5.50
5.51-5.75
MEMO: Paying ceiling rate 1
10,578
100
2
()
33.5
66.5
66.5
10,322
100
2
()
29.4
70.6
70.6
9,288
100
2
()
34.7
65.3
65.3
9,137
100
2
()
29.7
70.3
70.3
1,290
100
2
()
24.7
75.3
74.9
1,186
100
2
()
26.8
73.2
73.2
15,245
100
2
()
31.6
68.4
68.3
16,349
100
2
()
29.7
70.3
70.3
4,947
100
2
()
27.4
72.6
72.6
6,215
100
2
()
21.8
78.2
78.2
10,298
100
2
()
33.6
66.4
66.3
10,135
100
2
()
34.5
65.5
65.5
180 days up to 1 year
Issuing banks
Distribution, total
4.99 or less
5.00-5.50
5.51-5.75
MEMO: Paying ceiling rate 1
7,790
100
.8
50.1
49.0
49.0
7,756
100
.9
45.2
53.9
53.9
6,862
100
.9
53.5
45.6
45.6
6,886
100
1.0
48.1
50.9
50.9
928
100
.1
25.2
74.7
74.7
869
100
.1
22.6
77.3
77.3
1,890
100
2
()
39.9
60.1
60.1
1,981
100
2
()
44.9
55.1
55.1
593
100
.1
31.7
68.2
68.2
798
100
.1
47.7
52.2
52.2
1,298
100
2
()
43.6
56.4
56.4
1,183
100
2
()
42.9
57.1
57.1
1 up to 2Vi years
Issuing banks
Distribution, total
5.50 or less
5.51-6.00
MEMO: Paying ceiling rate 1
13,506
100
.1
99.9
99.5
13,697
100
1.4
98.6
98.1
12,212
100
2
()
100.0
99.6
12,508
100
1.5
98.5
98.1
1,294
100
1.0
99.0
98.7
1,188
100
.9
99.1
97.8
11,027
100
.7
99.3
98.9
12,172
100
1.1
98.9
98.3
6,825
100
2
()
100.0
100.0
7,705
100
.8
99.2
99.1
4,202
100
2.0
98.0
97.1
4,467
100
1.6
98.4
97.0
2Vi years up to 4 years
Issuing banks
Distribution, total
6.00 or less
6.01-6.5 0
MEMO: Paying ceiling rate 1
12,576
100
1.3
98.7
97.6
12,524
100
1.0
99.0
98.6
11,320
100
1.1
98.9
97.7
11,356
100
.8
99.2
98.9
1,257
100
2.8
97.2
96.9
1,169
100
2.4
97.6
96.3
7,567
100
1.6
98.4
97.9
8,494
100
.9
99.1
98.6
4,295
100
1.0
99.0
98.5
4,950
100
.1
99.9
99.9
3,273
100
2.4
97.6
97.2
3,544
100
2.0
98.0
96.7
4 up to 6 years
Issuing banks
Distribution, total
7.00 or less
7.01-7.25
MEMO: Paying ceiling rate 1 - 3
13,488
100
8.1
91.9
91.9
13,355
100
4.2
95.8
95.7
12,183
100
8.5
91.5
91.5
12,157
100
4.2
95.8.
95.8
1,306
100
3.6
96.4
95.6
1,198
100
4.4
95.6
94.8
27,817
100
3.6
96.4
96.3
30,501
100
3.0
97.0
97.0
14,701
100
4.7
95.3
95.3
16,905
100
3.4
96.6
96.6
13,116
100
2.4
97.6
97.4
13,596
100
2.3
97.7
97.5
6 up to 8 years
Issuing banks
Distribution, total
7.25 or less
7.26-7.50
MEMO: Paying ceiling rate 1 - 3
11,532
100
2.4
97.6
97.3
11,621
100
.6
99.4
99.0
10,287
100
2.5
97.5
97.2
10,476
100
.4
99.6
99.2
1,244
100
1.2
98.8
98.8
1,145
100
2.4
97.6
96.8
17,647
100
1.0
99.0
99.0
18,258
100
1.2
98.8
98.8
7,496
100
.3
99.7
99.7
8,225
100
.3
99.7
99.7
10,151
100
1.5
98.5
98.5
10,033
100
1.9
98.1
98.0
8 years and over
Issuing banks
Distribution, total
7.50 or less
7.51-7.75
MEMO: Paying ceiling rate 1 - 3
8,094
100
3.7
96.3
96.3
8.474
100
2.5
97.5
97.5
7,005
100
3.5
96.5
96.5
7,462
100
2.3
97.7
97.7
1,089
100
5.1
94.9
94.9
1,012
100
4.1
95.9
95.9
2,509
100
5.8
94.2
94.2
2,485
100
8.1
91.9
91.9
876
100
.4
99.6
99.6
929
100
.4
99.6
99.6
1,633
100
8.7
91.3
91.3
1,556
100
12.7
87.3
87.3
IRA and Keogh Plan time deposits,
3 years or more
Issuing banks
Distribution, total
7.50 or less
7.51-8.00
8.01-11.66
MEMO: Paying ceiling rate 1
10,056
100
19.8
48.6
31.6
11.2
9,988
4
()
r)
r)
4
(4)
()
8,833
100
21.2
47.1
31.7
11.9
8,859
4
()
r)
4
()
r)
r)
1,223
100
9.2
59.5
31.3
5.8
1,129
5,433
100
6.2
53.8
39.9
9.3
5,267
1,817
100
'8.4
43.5
48.1
10.4
1,903
4
(4)
(4
3,616
100
5.1
59.1
35.9
8.8
3,364
4
(4)
()
r)
4
Money market certificates, $10,000
or more, 6 months
Issuing banks
Distribution, total
11.00 or less
11.01-11.66
MEMO: paying ceiling rate 1
13,704
100
6.2
93.8
86.8
13,670
4
(4)
()
r)
r)
12,384
100
6.6
93.4
85.7
12,454
4
()
r)
r)
r)
1,321
100
2.8
97.2
97.1
1,216
4
()
152,821
100
2.4
97.6
94.9
147,869
67,347
100
3.8
96.2
90.3
67,347
4
(4)
85,474
100
1.4
98.6
98.5
80,522
4
()
(4)
r)
r)
For notes see end of table.
4
4
(
4
)
4
()
4
4
(4
()
4
4
)
W
4
()
(4)
4
4
il
)
4
4
()
4
( 4)
(
(
4
()
A70
4.11
Special Tables • January 1981
SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Continued
Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, and distribution of deposits by
most common rate
100 and over
Less than 100
Less than 100
Oct. 29,
July 30,
Oct. 29,
July 30,
Oct. 29,
1980
1980
1980
1980
Oct. 29, July 30,
July 30,
1980
1980
Time deposits less than $100,000 (cont.)
Variable interest rate ceiling time deposits of less than $100,000 with
maturities of 2!/2 years or more
Issuing banks
Distribution, total
11.00 or less
1980
1980
100 and over
Oct. 2 9 , July 30,
Oct. 2 9 , July 30,
1980
1980
1980
[,576
1,297
1,192
28.419
21,552
(4)
(4
100
(4)
(4)
100
(4)
(4
(4
(4)
15,253
100
7.4
92.6
91.1
11,687
100
11.5
88.5
83.3
(4)
(4)
(4
(4)
13,166
100
7.9
92.1
92.1
6,162
100
5,025
452
709
100
4.01-4.50
4.51-5.50
1,988
(4)
100
100
100
100
48.2
29.1
6.8
15.9
Club accounts
Issuing banks
Distribution, total
0.00
0.01-4.00
12,767
(4)
11.3
88.7
84.0
51.9
27.9
5.3
14.9
48.7
29.6
6.3
15.3
52.7
27.8
5.1
14.4
41.6
22.9
12.3
23.2
42.5
28.6
7.8
100
26.0
1,371
100
27.1
28.3
13.6
31.0
363
100
19.4
30.8
16.6
33.2
756
100
29.9
29.9
9.9
30.3
346
100
32.9
18.6
14.4
34.0
13,285
100
(4)
(4)
$
5,711
1980
Amount of deposits (in millions of dollars)
or percentage distribution
Number of banks, or percentage distribution
5,468
11.01-11.30
MEMO: Paying ceiling rate 1
9.0
91.0
91.0
7.6
92.4
91.6
4
443
24.9
15.5
33.6
21.1
9,866
(4)
(4)
(4)
(4)
615
100
23.6
26.3
18.2
31.9
NOTE. All banks that either had discontinued offering or had never offered
particular types of deposits as of the survey date are not counted as issuing banks.
Moreover, the small amounts of deposits held at banks that had discontinued issuing
deposits are not included in the amounts outstanding. Therefore, the deposit
amounts shown in table 4.10 may exceed the deposit amounts shown in this table.
The most common interest rate for each instrument refers to the stated rate per
annum (before compounding) that banks paid on the largest dollar volume of
deposit inflows during the 2-week period immediately preceding the survey date.
Details may not add to totals because of rounding.
1. See BULLETIN table 1.16 for the ceiling rates that existed at the time of each
survey.
2. Less than .05 percent.
3. In October 1979 these deposit categories included the variable ceiling rate
account of 4 years and over issued since July 1, 1979; the ceiling rate on such
accounts was 7.60 percent in October. In January 1980 all variable ceiling accounts
were excluded from these categories and hence the fixed rate ceilings that apply
to each maturity category are shown in the table.
4. See the October 1980 BULLETIN for a distribution in July 1980 of these accounts
by size of bank and by the interest rates paid.
4.12
Size of bank
(total deposits in millions of dollars)
All banks
All banks
AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings Deposits
at Insured Commercial Banks, Oct. 29, 1980
Bank size (total deposit in millions of dollars)
Type of deposit, holder, and
original maturity
All size
groups
Less
than 20
up
to 50
20
50 up
to 100
up
to 500
100
500 up
to 1,000
1,000
and over
Savings and small-denomination time deposits
7.88
8.22
8.25
7.99
7.83
7.56
7.62
Savings, total
Individuals and nonprofit organizations
Partnerships and corporations
Domestic governmental units
Allother
5.19
5.19
5.23
5.19
5.18
5.20
5.20
5.19
5.14
5.25
5.19
5.19
5.24
5.24
5.25
5.17
5.16
5.23
5.24
5.11
5.20
5.20
5.23
5.18
5.23
5.16
5.16
5.19
5.14
4.24
5.20
5.20
5.24
5.22
5.23
Other time deposits in denominations of less than $100,000, total
Domestic governmental units, total
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
6.70
6.37
7.06
6.31
6.50
5.93
6.61
6.58
7.20
6.57
7.31
6.13
6.83
6.73
7.28
6.42
6.61
6.85
6.74
5.68
6.61
6.24
6.12
5.46
6.71
6.75
7.33
5.90
6.05
6.74
6.65
6.25
6.17
6.02
6.37
6.58
6.61
6.28
6.36
6.29
7.04
5.93
6.71
5.18
5.66
5.64
5.95
6.46
7.22
7.47
7.68
6.62
5.23
5.73
5.58
5.88
6.50
7.22
7.50
7.75
6.83
5.20
5.69
5.70
6.00
6.45
7.24
7.47
7.75
6.78
5.22
5.63
5.71
6.00
6.48
7.24
7.50
7.75
6.71
5.23
5.67
5.67
5.97
6.42
7.20
7.48
7.67
6.66
5.10
5.60
5.67
5.95
6.38
7.24
7.49
7.69
6.61
5.17
5.65
5.61
5.95
6.48
7.20
7.43
7.60
Other than domestic government units, total
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to 2Vi years
2Vi up to 4 years
4 up to 6 years
6 up to 8 years
8 years or more
IRA and Keogh Plan time deposits, 3 years or more
9.17
7.49
9.66
9.43
9.23
9.09
9.02
Money market certificates, exactly 6 months
11.62
11.53
11.62
11.62
11.61
11.66
11.64
Variable interest rate ceiling time deposits of less than $100,000 with
maturities of 2Vi years or more 1
11.16
10.82
11.28
11.14
11.19
11.22
11.20
4.26
3.34
3.96
4.42
3.91
4.10
4.83
Club accounts
2
1. See note 2 in table 4.10.
2. Club accounts are excluded from all of the other categories.
NOTE. The average rates were calculated by weighting the most common rate
reported on each type of deposit at each bank by the amount of that type of deposit
outstanding. All banks that had either discontinued offering or never offered particular types of deposit as of the survey date were excluded from the calculations
for those specific types of deposits.
A71
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is
millions)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obliSTATISTICAL
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
List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
December 1980
Page
A80
TABLES
Published Irregularly, with Latest Bulletin Reference
Commercial bank assets and liabilities, call dates, December 31, 1978, to March 31, 1980
Commercial bank assets and liabilities, June, 1980
October 1980
December 1980
All
A68
A72
Federal Reserve Board of Governors
PAUL A . VOLCKER,
Chairman
Vice Chairman
HENRY C . WALLICH
FREDERICK H . SCHULTZ,
J. CHARLES PARTEE
OFFICE OF BOARD MEMBERS
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
JOSEPH R. COYNE, Assistant to the Board
D O N A L D J. W I N N , Assistant to the Board for Congressional
Liaison
FRANK O'BRIEN, JR., Special Assistant to the Board
JOSEPH S. SIMS, Special Assistant to the Board
LEGAL
_
DIVISION
NEAL L. PETERSEN, General Counsel
ROBERT E . M A N N I O N , 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
BARBARA R. LOWREY, Assistant Secretary
JAMES MCAFEE, Assistant
Secretary
* JEFFERSON A. WALKER, Assistant
Secretary
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
FOR
POLICY
Staff Director
Deputy Staff Director
MURRAY ALTMANN, Assistant to the Board
PETER M. KEIR, Assistant to the Board
STANLEY J. SIGEL, Assistant to the Board
NORMAND R. V. BERNARD, Special Assistant to the Board
STEPHEN H . A X I L R O D ,
EDWARD C. ETTIN,
DIVISION
OF RESEARCH
AND
STATISTICS
JAMES L . KICHLINE, Director
JOSEPH S . ZEISEL, Deputy
Director
MICHAEL J . PRELL, Associate
Director
ROBERT A . EISENBEIS, Senior Deputy Associate
Director
t J o H N J . M I N G O , Senior Deputy Associate
Director
ELEANOR J. STOCKWELL, Senior Deputy Associate
Director
JARED J. ENZLER, Deputy Associate
Director
J. CORTLAND G . PERET, Deputy Associate
Director
H E L M U T F . W E N D E L , Deputy Associate
Director
MARTHA B E T H E A , Assistant
Director
ROBERT M . FISHER, Assistant
Director
FREDERICK M . S T R U B L E , Assistant
Director
STEPHEN P . TAYLOR, Assistant
Director
LEVON H . G A R A B E D I A N , Assistant Director
(Administration)
Director
GRIFFITH L. GARWOOD, Deputy Director
JERAULD C . K L U C K M A N , Associate
Director
G L E N N E . L O N E Y , Assistant
Director
DELORES S . S M I T H , Assistant
Director
DIVISION
DIVISION OF BANKING
SUPERVISION AND
REGULATION
JEFFREY R . SHAFER, Deputy Associate
Director
D A L E W . H E N D E R S O N , Assistant
Director
JANET O . H A R T ,
OF INTERNATIONAL
E D W I N M . T R U M A N , Director
ROBERT F . GEMMILL, Associate
GEORGE B . H E N R Y , Associate
CHARLES J . SIEGMAN, Associate
FINANCE
Director
Director
Director
SAMUEL PIZER, Staff Adviser
Director
FREDERICK R . D A H L , Associate
Director
WILLIAM TAYLOR, Associate
Director
WILLIAM W . W I L E S , Associate
Director
JACK M . EGERTSON, Assistant
Director
ROBERT A . JACOBSEN, Assistant
Director
D O N E . K L I N E , Assistant
Director
ROBERT S . PLOTKIN, Assistant
Director
THOMAS A . S I D M A N , Assistant
Director
SAMUEL H . T A L L E Y , Assistant
Director
LAURA M . HOMER, Securities Credit Officer
JOHN E . R Y A N ,
LARRY J. PROMISEL, Assistant
RALPH W . SMITH, J R . , Assistant
Director
Director
A73
and Official Staff
NANCY H . TEETERS
LYLE E . GRAMLEY
EMMETT J. RICE
OFFICE OF
STAFF DIRECTOR
FOR
JOHN M. DENKLER, Staff Director
E D W A R D T . M U L R E N I N , Assistant Staff Director
JOSEPH W . D A N I E L S , S R . , Director of Equal Employment
portunity
DIVISION
OF DATA
PROCESSING
CHARLES L . H A M P T O N , Director
BRUCE M . B E A R D S L E Y , Associate
Director
UYLESS D . BLACK, Assistant
Director
G L E N N L . C U M M I N S , Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION
OF
PERSONNEL
D A V I D L . S H A N N O N , Director
JOHN R . W E I S , Assistant
Director
CHARLES W . W O O D , Assistant
Director
OFFICE OF THE
CONTROLLER
JOHN KAKALEC, Controller
GEORGE E . L I V I N G S T O N , Assistant
DIVISION
OF SUPPORT
Controller
SERVICES
D O N A L D E . A N D E R S O N , Director
ROBERT E . FRAZIER, Assistant
Director
WALTER W . K R E I M A N N , Associate
Director
*On loan from the Federal Reserve Bank of Richmond.
tOn leave of absence.
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
WILLIAM H . W A L L A C E , Staff Director
HARRY A . G U I N T E R , Assistant
Director
Op-
for
Planning
DIVISION OF FEDERAL
BANK
OPERATIONS
RESERVE
JAMES R . K U D L I N S K I , Director
CLYDE H . F A R N S W O R T H , JR., Deputy
Director
WALTER A L T H A U S E N , Assistant
Director
CHARLES W . B E N N E T T , Assistant
Director
LORIN S . M E E D E R , Assistant
Director
P . D . R I N G , Assistant
Director
D A V I D L . ROBINSON, Assistant
Director
RAYMOND L . T E E D , Assistant
Director
Contingency
A74
Federal Reserve Bulletin • January 1981
FOMC and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
PAUL A . VOLCKER,
LYLE E . GRAMLEY
ROGER GUFFEY
FRANK E . MORRIS
J. CHARLES PARTEE
EMMETT J. RICE
LAWRENCE K . ROOS
FREDERICK H . SCHULTZ
MURRAY A L T M A N N ,
Secretary
NORM AND R. V. BERNARD, Assistant
NEAL L. PETERSEN, General
Counsel
JAMES H . OLTMAN,
ANTHONY M . SOLOMON,
Chairman
Secretary
Deputy General Counsel
ROBERT E. MANNION, Assistant
General
STEPHEN H . AXILROD,
Economist
ALAN R . HOLMES, Adviser for Market
Counsel
Operations
ANATOL BALBACH, Associate
Economist
JOHN DAVIS, Associate
Economist
Vice Chairman
N A N C Y H . TEETERS
HENRY C . WALLICH
WILLIS J. W I N N
RICHARD G. DAVIS, Associate
Economist
THOMAS DAVIS, Associate
Economist
ROBERT EISENMENGER, Associate
Economist
EDWARD C. ETTIN, Associate
Economist
GEORGE B. HENRY, Associate
Economist
PETER M. KEIR, Associate
Economist
JAMES L. KICHLINE, 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
ROBERT M . S U R D AM, Seventh District
RONALD TERRY, Eighth District
CLARENCE G . FRAME, Ninth District
GORDON E . WELLS, Tenth District
T . C . FROST, JR., Eleventh District
CHAUNCEY E . SCHMIDT, Twelfth District
HERBERT V . PROCHNOW,
Secretary
WILLIAM S. EDGERLY, First District
DONALD C . PLATTEN, Second District
JOHN W . WALTHER, Third District
MERLE E . GILLIAND, Fourth District
J. O W E N COLE, Fifth District
ROBERT STRICKLAND, Sixth District
WILLIAM J. KORSVIK, Associate
CONSUMER
ADVISORY
Secretary
COUNCIL
RALPH J. ROHNER, Washington
CHARLOTTE H . SCOTT, Charlottesville,
D.C., Chairman
Virginia, Vice Chairman
ARTHUR F . BOUTON, Little Rock, Arkansas
JULIA H. B O Y D , Alexandria, Virginia
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
JOSEPH N. CUGINI, Westerly, Rhode Island
RICHARD S. D'AGOSTINO, Philadelphia, Pennsylvania
SUSAN PIERSON D E W I T T , Springfield, Illinois
F . THOMAS JUSTER, Ann Arbor, Michigan
RICHARD F . KERR, Cincinnati, Ohio
HARVEY M . KUHNLEY, Minneapolis, Minnesota
T H E REV. ROBERT J. M C E W E N , S . J . , Chestnut Hill,
JOANNE S. FAULKNER, N e w Haven, Connecticut
R E N E REIXACH, Rochester, New York
FLORENCE M . RICE, New York, New York
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 .
N A N C Y Z . SPILLMAN, LOS Angeles, California
RICHARD A. V A N WINKLE, Salt Lake City, Utah
LUTHER GATLING, New York, New York
VERNARD W . H E N E L Y , Richmond, Virginia
JUAN JESUS HINOJOSA, McAllen, Texas
SHIRLEY T. HOSOI, LOS Angeles, California
GEORGE S. IRVIN, Denver, Colorado
Massachusetts
STAN L. MULARZ, Chicago, Illinois
WILLIAM J. O ' C O N N O R , Buffalo, New
York
MARGARET REILLY-PETRONE, Upper Montclair, N e w Jersey
MARY W. WALKER, Monroe, Georgia
A75
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, orfacility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert P. Henderson
Thomas I. Atkins
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III
Vice President
in charge of branch
Anthony M. Solomon
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA ,
19105
John W. Eckman
Jean A. Crockett
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
J. L. Jackson
William H. Knoell
Martin B. Friedman
Milton G. Hulme, Jr.
Willis J. Winn
Walter H. MacDonald
Maceo A. Sloan
Steven Muller
Joseph H. McLain
Naomi G. Albanese
Robert P. Black
Jimmie R. Monhollon
Cincinnati
Pittsburgh
45201
..15230
RICHMOND*
23261
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35202
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
MINNEAPOLIS ,
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
72203
40232
38101
55480
59601
64198
80217
73125
68102
75222
79999
77001
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Robert E. Showalter
Robert D. Duggan
Robert D. McTeer, Jr.
Stuart P. Fishburne
Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Louis J. Willie
Jerome P. Keuper
Roy W. Vandegrift, Jr.
John C. Bolinger, Jr.
Horatio C. Thompson
William F. Ford
Robert P. Forrestal
John Sagan
Stanton R. Cook
Vacancy
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Richard O. Donegan
Vacancy
Lawrence K. Roos
Donald W. Moriarty, Jr.
Stephen F. Keating
William G. Phillips
Norris E. Hanford
E. Gerald Corrigan
Thomas E. Gainor
Paul H. Henson
Doris M. Drury
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder
Roger Guffey
Henry R. Czerwinski
Gerald D. Hines
John V. James
Chester J. Kesey
Vacancy
Carlos A. Zuniga
Robert H. Boykin
William H. Wallace
Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
Vacancy
Wendell J. Ashton
George H. Weyerhaeuser
John J. Balles
John B. Williams
r-
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
Robert E. Matthews
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.
A76
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 F U N C TIONS. 1974. 125 p p .
ANNUAL REPORT.
FEDERAL RESERVE BULLETIN. Monthly. $ 2 0 . 0 0 per year or
$ 2 . 0 0 each in the United States, its possessions, Canada,
SURVEY OF CHANGES IN FAMILY FINANCES. 1 9 6 8 . 321 p p .
and Mexico; 10 or more of same issue to one address,
$ 1 8 . 0 0 per year or $ 1 . 7 5 each. Elsewhere, $ 2 4 . 0 0 per
year or $ 2 . 5 0 each.
BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint
of Part I only) 1976. 682 pp. $5.00.
BANKING AND MONETARY STATISTICS, 1941-1970. 1976.
1,168 pp. $15.00.
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
each.
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
February, May, August, and November. Subscription
includes one issue of Historical Chart Book. $7.00 per
year or $2.00 each in the United States, its possessions,
Canada, and Mexico. Elsewhere, $10.00 per year or
$3.00 each.
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,
and Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each.
CAPITAL MARKET DEVELOPMENTS. Weekly. $ 1 5 . 0 0 per year
or $.40 each in the United States, its possessions, Canada, and Mexico; 10 or more of same issue to one address,
$ 1 3 . 5 0 per year or $ . 3 5 each. Elsewhere, $ 2 0 . 0 0 per year
or $.50 each.
SELECTED INTEREST AND 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.
THE FEDERAL RESERVE ACT, 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.
Edition. 1 9 7 7 . 304 pp. $4.50
each; 10 or more to one address, $4.00 each.
$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
1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40
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.
THE ECONOMETRICS OF PRICE DETERMINATION
CONFER-
ENCE, October 30-31, 1970, Washington, D.C. 1972. 397
pp. Cloth ed. $5.00 each; 10 or more to one address,
$4.50 each. Paper ed. $4.00 each; 10 or more to one address, $3.60 each.
FEDERAL RESERVE STAFF S T U D Y : 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.
1973. 271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
IMPROVING THE MONETARY AGGREGATES: REPORT OF THE
A D V I S O R Y C O M M I T T E E ON M O N E T A R Y S T A T I S T I C S .
1976. 43 pp. $1.00 each; 10 or more to one address, $.85
each.
A N N U A L PERCENTAGE RATE TABLES (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $1.00; 10 or more of same volume to one address, $.85 each.
FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY
UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one
address, $1.50 each.
THE 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,
$3.75 each.
1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each.
INDUSTRIAL PRODUCTION: 1976
FLOW OF F U N D S ACCOUNTS. 1 9 4 9 - 1 9 7 8 . 1 9 7 9 . 171 p p . $ 1 . 7 5
BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102
INTRODUCTION TO FLOW OF F U N D S .
pp. $1.00 each; 10 or more to one address, $.85 each.
each; 10 or more to one address, $1.50 each.
1980. 68 pp. $1.50 each;
10 or more to one address, $1.25 each.
All
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies available without charge.
MEASUREMENT OF CAPACITY UTILIZATION: PROBLEMS AND
Alice in Debitland
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
What Truth in Lending Means to You
THE G N M A - G U A R A N T E E D PASSTHROUGH SECURITY: MARKET D E V E L O P M E N T A N D I M P L I C A T I O N S FOR THE
GROWTH A N D STABILITY OF HOME MORTGAGE L E N D -
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.
T H E RELATIONSHIP BETWEEN RESERVE RATIOS AND THE
MONETARY AGGREGATES U N D E R RESERVES AND 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 BETWEEN 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.
INNOVATIONS IN B A N K LOAN CONTRACTING; RECENT E V I DENCE by Paul W. Boltz and Tim S. Campbell. May
1979. 40 pp.
TASKS, by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E. Kenessey. July
1979. 264 pp.
ING, by David F. Seiders. Dec. 1979. 65 pp.
F O R E I G N O W N E R S H I P A N D THE P E R F O R M A N C E OF U . S .
BANKS, by James V. Houpt. July 1980. 27 pp.
Printed in Full in the Bulletin
A N ASSESSMENT OF B A N K HOLDING COMPANIES, b y R o b e r t
J. Lawrence and Samuel H. Talley. January 1976.
REPRINTS
Most of the articles reprinted do not exceed 12 pages.
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.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporation. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
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.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970's. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
U.S. International Transactions in 1979: Another Round of
Oil Price Increases. 4/80.
Perspectives on Personal Saving. 8/80.
The Impact of Rising Oil Prices on the Major Foreign Industrial Countries. 10/80.
A78
Index to Statistical Tables
References are to pages A-3 through A-70 alth
he prefix "A" is omitted in this index
ACCEPTANCES, bankers, 10, 23, 25
Agricultural loans, commercial banks, 18,19, 20, 24
Assets and liabilities (See also Foreigners)
Banks, by classes, 17,18-21,27
Domestic finance companies, 37
Federal Reserve Banks, 11
Nonfinancial corporations, current, 36
Automobiles
Consumer installment credit, 40, 41
Production, 46,47
Demand deposits—Continued
Subject to reserve requirements, 14
Turnover, 12
Deposits (See also specific types)
Banks, by classes, 3, 17, 18-21,27,67-70
Federal Reserve Banks, 4,11
Turnover, 12
Discount rates at Reserve Banks (See Interest
rates)
Discounts and advances by Reserve Banks (See
Loans)
Dividends, corporate, 35
BANKERS balances, 17, 18-20 (See also Foreigners)
Banks for Cooperatives, 33
Bonds (See also U.S. government securities)
New issues, 34
Yields, 3
Branch banks, 15, 21, 54
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 44
Capital accounts
Banks, by classes, 17
Federal Reserve Banks, 11
Central banks, 66
Certificates of deposit, 21,25
Commercial and industrial loans
Commercial banks, 15,24
Weekly reporting banks, 18-21, 22
Commercial banks
Assets and liabilities, 3, 15, 17, 18-21,67-70
Business loans, 24
Commercial and industrial loans, 22,24
Consumer loans held, by type, 40, 41
Loans sold outright, 21
Nondeposit funds, 16
Number by classes, 17
Real estate mortgages held, by holder and property, 39
Commercial paper, 3, 23, 25,37
Condition statements (See Assets and liabilities)
Construction, 44,48
Consumer installment credit, 40, 41
Consumer prices, 44,49
Consumption expenditures, 50, 51
Corporations
Profits and their distribution, 35
Security issues, 34,63
Cost of living (See Consumer prices)
Credit unions, 27,40,41
Currency and coin, 5,17
Currency in circulation, 4,13
Customer credit, stock market, 26
DEBITS to deposit accounts, 12
Debt (See specific types of debt or securities)
Demand deposits
Adjusted, commercial banks, 12,14
Banks, by classes, 17,18-21
Ownership by individuals, partnerships, and
corporations, 23
EMPLOYMENT, 44, 45
Eurodollars, 25
FARM mortgage loans, 39
Farmers Home Administration, 39
Federal agency obligations, 4,10, 11,12, 32
Federal and federally sponsored credit agencies, 33
Federal finance
Debt subject to statutory limitation and types and
ownership of gross debt, 30
Receipts and outlays, 28,29
Treasury operating balance, 28
Federal Financing Bank, 28,33
Federal funds, 3,6, 18, 19, 20,25, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Intermediate Credit Banks, 33
Federal Land Banks, 33, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4, 11,12, 30, 31
Federal Reserve credit, 4,5,11,12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 18, 19, 20, 40, 41
Paper, 23, 25
Financial institutions, loans to, 18,19,20
Float, 4
Flow of funds, 42, 43
Foreign
Currency operations, 11
Deposits in U.S. banks, 4,11,18,19, 20
Exchange rates, 66
Trade, 53
Foreigners
Claims on, 54, 56, 59, 60,61, 65
Liabilities to, 21, 54-58,62-64
GOLD
Certificates, 11
Stock,4,53
Government National Mortgage Association, 33, 38, 39
Gross national product, 50, 51
A79
HOUSING, new and existing units, 48
INCOME, personal and national, 44, 50, 51
Industrial production, 44, 46
Installment loans, 40,41
Insurance companies, 27, 30, 31, 39
Insured commercial banks, 67-70
Interbank loans and deposits, 17
Interest rates
Bonds, 3
Business loans of banks, 24
Federal Reserve Banks, 3,7
Foreign countries, 66
Money and capital markets, 3,25
Mortgages, 3, 38
Prime rate, commercial banks, 24
Time and savings deposits, 9, 70
International capital transactions of the United States, 54-65
International organizations, 54-59, 62-65
Inventories, 50
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 17, 27
Commercial banks, 3,15,17,18-20
Federal Reserve Banks, 11,12
Life insurance companies, 27
Savings and loan associations, 27
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 17,18-21,27
Commercial banks, 3, 15,17, 18-21, 22, 24
Federal Reserve Banks, 3,4, 5, 7, 11,12
Insurance companies, 27, 39
Insured or guaranteed by United States, 38, 39
Savings and loan associations, 27
MANUFACTURING
Capacity utilization, 44
Production, 44,47
Margin requirements, 26
Member banks
Assets and liabilities, by classes, 17
Borrowings at Federal Reserve Banks, 5,11
Federal funds and repurchase agreements, 6
Number, 17
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 14
Mining production, 47
Mobile home shipments, 48
Monetary aggregates, 3,14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9, 18-20, 27, 30, 31, 39
NATIONAL defense outlays, 29
National income, 50
OPEN market transactions, 10
PERSONAL income, 51
Prices
Consumer and producer, 44,49
Stock market, 26
Prime rate, commercial banks, 24
Production, 44,46
Profits, corporate, 35
REAL estate loans
Banks, by classes, 18-20, 27, 29
Life insurance companies, 27
Mortgage terms, yields, and activity, 3, 38
Type of holder and property mortgaged, 39
Repurchase ajgreements and federal funds, 6,18,19,20
Reserve requirements, member banks, 8
Reserves
Commercial banks, 17
Federal Reserve Banks, 11
Member banks, 3, 4, 5,14,17
U.S. reserve assets, 53
Residential mortgage loans, 38
Retail credit and retail sales, 40, 41, 44
SAVING
Flow of funds, 42, 43
National income accounts, 51
Savings and loan assns., 3,9,27, 31, 39,42
Savings deposits (See Time deposits)
Savings institutions, selected assets, 27
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 26
Special drawing rights, 4,11,52, 53
State and local governments
Deposits, 18,19, 20
Holdings of U.S. government securities, 30, 31
New security issues, 34
Ownership of securities of, 18, 19, 20, 27
Yields of securities, 3
Stock market, 26
Stocks (See also Securities)
New issues, 34
Prices, 26
TAX receipts, federal, 29
Time deposits, 3,9, 12, 14, 17,18-21,67-70
Trade,foreign, 53
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. balance of payments, 52
U.S. government balances
Commercial bank holdings, 18, 19, 20
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4,11, 28
U.S. government securities
Bank holdings, 17, 18-20,27, 30, 31
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 11,12, 30, 31
Foreign and international holdings and transactions, 11,
30, 62
Open market transactions, 10
Outstanding, by type and ownership, 30, 31
Rates, 3,25
Utilities, production, 47
VETERANS Administration, 38, 39
WEEKLY reporting banks, 18-22
Wholesale (producer) prices, 44,49
YIELDS (See Interest rates)
A80
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
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LEGEND
Boundaries of Federal Reserve Districts
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
•
Q
®
Federal Reserve Bank Facility
Board of Governors of the Federal Reserve
System
@FedFRASER