Full text of Federal Reserve Bulletin : January 1986
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VOLUME 7 2 •
NUMBER 1 •
JANUARY 1 9 8 6
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield •
• Griffith L. Garwood • James L. Kichline • Edwin M. Truman
Naomi
P.
Salus,
S. David Frost
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. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson,
the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
L RECENT DEVELOPMENTS IN THE
BANKERS ACCEPTANCE MARKET
weeks. Most members expected such an
approach to policy implementation to be
consistent with growth of both M2 and M3
at annual rates of around 6 to 7 percent for
the period from September to December.
Over the same period, growth in Ml was
expected to slow markedly—also to an annual rate of 6 to 7 percent—and even slower
growth would be acceptable in the context
of satisfactory economic performance, given the very rapid expansion experienced in
previous months. The members agreed that
somewhat greater or lesser reserve restraint
would be acceptable over the intermeeting
period, depending on the behavior of the
monetary aggregates and taking account of
appraisals of the strength of the business
expansion, the performance of the dollar in
foreign exchange markets, progress against
inflation, and conditions in domestic and
international credit markets. It was also
understood that policy might be implemented with somewhat more flexibility than usual over the relatively short intermeeting
period, given the uncertainties associated
with particularly sensitive conditions in the
foreign exchange and other markets. The
members agreed that the intermeeting range
for the federal funds rate, which provides a
mechanism for initiating consultation of the
Committee when its boundaries are persistently exceeded, should be left unchanged
at 6 to 10 percent.
This article analyzes the rapid expansion of
the bankers acceptance market throughout
the 1970s and into the early 1980s and its
subsequent contraction of nearly 20 percent
since June 1984.
13 INDUSTRIAL
PRODUCTION
Total industrial production for October
1985 was unchanged from that for September.
15 STATEMENTS TO CONGRESS
Stephen H. Axilrod, Staff Director for Monetary and Financial Policy, Board of Governors of the Federal Reserve System, discusses the exchange markets for the dollar
in the aftermath of the G-5 meeting on
September 22 and also the relationship
among exchange market conditions and domestic economic and credit developments,
before the Subcommittee on Domestic
Monetary Policy of the House Committee
on Banking, Finance and Urban Affairs,
November 7, 1985.
18 Mr. Axilrod clarifies the technical aspects
of possible discount window lending to the
Farm Credit System as well as to agricultural banks, before the Subcommittee on Economic Stabilization of the House Committee on Banking, Finance and Urban Affairs,
November 21, 1985.
20 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At its meeting on October 1, 1985, the
Committee adopted a directive that called
for maintaining the degree of reserve pressure that had been sought in previous
26
ANNOUNCEMENTS
Final revisions to Regulation B.
Issuance of staff guidelines for compliance
with the Credit Practices Rule.
Policy statement on payment of cash dividends.
Policy statement on repurchase agreement
transactions.
Quarterly report on financial results of
priced services.
N e w fee schedules for priced services.
Changes to the operating schedule for Fedwire.
Proposal to amend Regulation J; proposal
to define perpetual debt securities as primary capital.
Admission of four state banks to membership in the Federal Reserve System.
A69 GUIDE TO TABULAR PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A74 BOARD OF GOVERNORS AND STAFF
A76 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A78 FEDERAL RESERVE BOARD
PUBLICATIONS
A81 INDEX TO STATISTICAL TABLES
31 LEGAL
DEVELOPMENTS
Revisions to Regulation B; various bank
holding company, bank service corporation, and bank merger orders; and pending
cases.
A i FINANCIAL AND BUSINESS STATISTICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A83 FEDERAL RESERVE BANKS,
AND OFFICES
BRANCHES,
A84 MAP OF FEDERAL RESERVE SYSTEM
Recent Developments in the
Bankers Acceptance Market
Frederick H. Jensen and Patrick M. Parkinson
of the Board's Division of Research and Statistics prepared this article. Chinhui Juhn provided
research
assistance.
The market for dollar-denominated bankers acceptances grew rapidly throughout the 1970s and
into the early 1980s. The expanding dollar value
of U.S. and world trade, and sharp increases in
the price of oil and other commodities whose
shipment frequently is financed with acceptances, stimulated the growth of the market
through this period. In addition, the surge in
market interest rates during the late 1970s greatly
increased the value of the exemption of certain
types of acceptances from reserve requirements.
As a result, the proportions of U.S. and world
trade that were financed with dollar acceptances
rose substantially. By the early 1980s, however,
many major accepting banks were unable to
accommodate further increases in demand for
acceptance credit because they had reached statutory limits on the amount of acceptances they
could create. As a result, regional banks and
U.S. agencies and branches of foreign banks
were able to expand their presence in this market, but not enough to keep the growth of the
market from slowing or fees charged by accepting banks from rising significantly.
This restriction on supply spawned proposals
for remedial legislation, and in October 1982, the
Congress passed the Bank Export Services Act,
which effectively doubled the statutory limits on
acceptances. As anticipated, immediately following passage of this legislation the volume of
acceptance financing swelled and fees declined
substantially, as the major accepting banks attempted to regain their market share. In early
1983, however, the acceptance market began to
contract in a trend that continued, on balance,
through September 1985. Over this latter period,
total dollar acceptances declined about $11 billion, or 15 percent.
Many analysts have pointed to the stagnation
of international trade and sharp declines in commodity prices as the primary reasons for the
shrinkage of the market for bankers acceptances.
Although these factors undoubtedly have played
a role, the substitution of alternative sources of
credit appears to have been more important. The
shrinkage of the bankers acceptance market is
symptomatic of the declining role of U.S. banks
as direct providers of short-term credit to foreign
banks and multinational nonfinancial corporations. More and more, such borrowers have
obtained funding directly from domestic and
foreign nonbank investors in the U.S. commercial paper market and in the Eurodollar markets.
In addition, sharp declines in market interest
rates since mid-1982 have reduced the cost of
reserve requirements, thereby allowing bank
loans to be priced more competitively with acceptance credit.
THE INSTRUMENT AND ITS MARKET
A bankers acceptance is a time draft drawn on a
bank, usually to finance the shipment or temporary storage of goods. By "accepting" the draft,
the bank makes an unconditional promise to pay
the holder of the draft a stated amount at a
specified date. Thus the bank effectively substitutes its own credit for that of a borrower and in
the process creates a negotiable instrument that
may be freely traded.
Creating
an
Acceptance
In a typical transaction, a buyer of goods will
seek credit to finance the purchase until the
2
Federal Reserve Bulletin • January 1986
goods can be resold. If the seller knows the
buyer and does not need cash, the seller may be
willing to extend open trade credit. But this is
infrequently the case with the financing of international trade, so the buyer often turns to its
bank, which is better acquainted with the buyer's
business and is a specialist in evaluating and
diversifying credit risk. The buyer could borrow
the funds directly from the bank, although for
reasons outlined below, acceptance financing is
frequently less costly.
When a bank agrees to provide acceptance
credit to a buyer, it often notifies the seller
(perhaps through the seller's bank) that a letter of
credit has been issued authorizing the seller to
draw a time draft on the bank for the amount of
the transaction. The letter of credit also specifies
any conditions that must be met before the draft
will be accepted. These terms may require that
documents be attached to the draft that verify
shipment of the goods and that provide the bank
assurance that the underlying transaction meets
certain regulatory requirements. When the draft
is presented to the bank with the proper documents, it is stamped "accepted" on its face,
information about the nature of the underlying
transaction is inscribed, and the draft is endorsed
by an appropriate bank officer.
By accepting the draft, the bank has acquired
an unconditional obligation to pay at maturity a
specified amount, either to the seller or, more
frequently, to the holder of the instrument. The
drawer of the draft, in this case the seller,
remains secondarily liable to the holder in the
event of default by the bank. The bank's customer—here, the buyer—has an obligation to pay the
bank the same amount at or just before the
maturity date. The seller may choose to hold the
draft until maturity, but typically chooses to
receive immediate payment by selling the acceptance at a discount, usually to the accepting bank
itself. If the accepting bank purchases (discounts) the acceptance, it may elect to hold it in
its own portfolio. In this event, it is recorded as a
loan to the borrower, the buyer of the goods in
this example, and must be funded like any other
loan. More commonly, however, the bank will
elect to replenish its funds by selling (rediscounting) the acceptance into the secondary market,
either directly or through a dealer. If the accept
ance is not held in portfolio, the bank records its
obligation as an "acceptance liability outstanding" and the corresponding asset, a claim on the
borrower, as a "customer's liability on acceptance outstanding."
Other types of transactions also are common.
The acceptance may not involve a letter of
credit: such "clean" acceptances are typically
authorized by prior arrangement between the
buyer's bank and the seller's bank. Moreover,
the draft may be drawn on the seller's bank or
some other bank, particularly if the buyer's bank
is small and its acceptances are not traded widely. In this case, the buyer's bank may arrange for
another bank—perhaps a larger correspondent—
to accept the draft and agree to indemnify the
accepting bank against any losses that it might
suffer in the event of a default. Alternatively, the
smaller bank could accept the draft but arrange
for a better-known bank to endorse it. By so
doing, the buyer's bank retains the credit risk but
can offer the buyer access to acceptance financing at a lower cost than if it issued an acceptance
on its own.
In other cases, the buyer may wish to pay the
seller immediately upon shipment. Under these
circumstances, the bank can extend short-term
credit to the buyer to finance the purchase, then
accept and discount a time draft drawn on it by
the buyer and apply the proceeds to pay off the
short-term credit used to finance the purchase.
The buyer retains an obligation to repay the bank
at or before the maturity of the acceptance.
Some acceptances do not arise from the shipment or storage of goods. For example, a firm
may draw a draft on its bank for acceptance in
order to borrow funds for working capital purposes. Such acceptances are termed "finance
bills."
In all cases, the accepting bank charges a fee,
or "commission," for accepting the draft that
varies depending on the maturity of the draft as
well as the creditworthiness of the borrower.
Commissions are quoted in terms of basis points,
calculated on an annual basis. The bank also may
receive a fee if a letter of credit is involved and
may hope to realize a difference in the price,
comparable to a bid-asked spread, if it purchases
the acceptance for subsequent resale. Of course,
if it holds the acceptance in its loan portfolio to
Recent Developments
maturity, the bank also earns a return equal to
the original discount. The costs of the financing
typically are borne by the borrower, in the
example above, the buyer. Even when, through
negotiation, the seller agrees to bear some of the
costs, these likely will be reflected in the sales
price of the goods.
Types of
Acceptances
Virtually all acceptances traded in the United
States are denominated in dollars, and only a
very small amount of dollar-denominated acceptances are traded elsewhere. Thus the U.S. market for acceptances has been almost synonymous
with the market for dollar-denominated acceptances. The U.S. market is principally one for
"eligible" acceptances—that is, those that are of
the type that are eligible for sale at a discount at
Federal Reserve Banks. As a matter of practice,
the Federal Reserve has discontinued discounting assets and instead provides funds to depositories through collateralized advances. Consequently, the only practical significance of the
eligibility criteria is that eligible acceptances are
not subject to reserve requirements: under Federal Reserve regulations, acceptances that are of
the type specified in section 13(7) of the Federal
Reserve Act not only are eligible for discount, as
specified in section 13(6), but also are exempt
from reserve requirements. According to these
regulations, eligible acceptances must grow out
of the import or export of goods, the temporary
storage of readily marketable staples, or the
domestic shipment of goods. In addition, eligible
acceptances must have an original maturity—or
"tenor"—of six months or less.
The reserve status of ineligible acceptances is
an important factor that affects their issuance.
For example, until 1973, all acceptance liabilities, ineligible as well as eligible, were exempt
from reserve requirements. During periods of
tight credit, when below-market Regulation Q
ceilings on rates payable on certificates of deposits (CDs) restricted their issuance, banks created
a substantial volume of finance bills in order to
provide funds to their corporate customers.
Even after the removal of interest rate ceilings on
large CDs in mid-1970, banks continued to issue
sizable amounts of finance bills in order to take
in the Bankers Acceptance
Market
3
advantage of the exemption from reserve requirements. Concerned that such issuance enabled banks to avoid reserve requirements on
CDs or other sources of funds, in mid-1973 the
Federal Reserve imposed reserve requirements
on ineligible acceptances, and their issuance
declined precipitously. Today, few ineligible acceptances trade in the secondary market.
There are three main types of eligible acceptances. The first, acceptances that finance the
domestic shipment and storage of goods, historically has accounted for only a small amount of
total acceptances in the marketplace. The popularity of open trade credit in the United States,
where buyers and sellers are more likely to be
accustomed to doing business with each other, is
probably an important reason. The higher cost of
documentation relative to other types of acceptances may be another factor: domestic-storage
acceptances must be secured with a warehouse
receipt, and until 1982, title documents had to be
attached to acceptances used to finance domestic
shipments. The second type of acceptance finances U.S. imports and exports of goods. Before the 1960s, this was by far the dominant
category, but now it accounts for less than half of
total acceptance financing. The third, and now
the largest, category is "third country" acceptances, which arise from the shipment of goods
between foreign countries.
Third-country acceptances became increasingly popular in the 1970s as foreign borrowers
found the U.S. acceptance market a highly attractive source of short-term financing. The majority of third-country acceptances are of the
type known as "refinance bills." These bills
typically originate with drafts drawn on a foreign
bank by one or more of its customers. Because
the foreign bank may not be well known to U.S.
investors and its own acceptances would require
a larger discount, it often will hold the acceptances drawn on it in its loan portfolio and
refinance these acceptances by drawing a draft
on a U.S. bank for acceptance. The U.S. bank
accepts the draft and advances funds to the
foreign bank to finance the extension of credit by
the foreign bank to its own customers. Because
the foreign bank is the borrower in this transaction, the market for refinance bills is an interbank
market.
4
Federal Reserve Bulletin • January 1986
The Market
for
Acceptances
The amount of dollar-denominated acceptances
outstanding depends on a variety of factors. An
obvious one is the dollar value of transactions
suitable for financing with eligible acceptances.
Currently, more than 20 percent of U.S. imports
and exports and more than 10 percent of thirdcountry shipments are funded in the U.S. acceptance market. Equally important are the cost and
availability of alternative sources of credit in the
United States and elsewhere.
From the point of view of the bank, acceptance financing is the functional equivalent of
funding a loan with a deposit liability, such as a
CD. In either case, the bank has an unconditional
obligation to pay the holder of the instrument at
maturity as well as a claim on the borrower.
Because acceptances are not subject to an assessment for deposit insurance and eligible acceptances are exempt from reserve requirements, acceptance liabilities are a less costly
source of funds than deposits. Moreover, because the acceptance commission is a front-end
fee and is not refundable, or is refundable only
with a penalty, the customer may be less likely to
prepay an acceptance borrowing than certain
other types of bank credit, particularly revolving
loans with pricing tied to the prime rate. And
because the maturities of the acceptance liability
and the corresponding asset are automatically
matched, acceptances carry none of the risk
inherent in funding loans with deposits with
different maturities or repricing schedules.
For an investor, a bankers acceptance is a
close substitute for other bank liabilities such as
CDs. Consequently, bankers acceptances trade
at rates very close to those on CDs (see chart 1);
in recent years, yields on bankers acceptances
have consistently been within 10 basis points of
those on CDs. Although bankers acceptances are
not federally insured, many investors view them
as one of the most secure money market instruments because their historical default rate is very
low. Also, some investors may feel that the
likelihood of repayment is increased by the secondary obligation of the drawer to pay the holder
at maturity if the accepting bank does not
(though as a rule, investors do not know the
identity of the drawer). The principal investors
1. Yields on bankers acceptances
and certificates of deposit
Percent
i
1970
i
i
i
i
i
i
i
i
1975
i
i
1980
i
i
i i
1985
Data are quarterly averages of rates on three-month instruments;
investment yield basis.
are institutions: money market mutual funds,
trust departments, state and local governments,
insurance companies and other corporations,
pension funds, foreign central banks, and commercial banks. Smaller-denomination acceptances may be placed directly with individuals by
the accepting bank.
The market for acceptances also offers advantages to many borrowers. With the bank as its
intermediary, a borrower with eligible transactions gains access to the nation's money markets. And, because the cost to the bank of
financing eligible acceptances is lower than that
of a direct loan funded with a deposit subject to
reserve requirements, the bank may be able to
offer the financing at a lower "all in" rate (one
including the discount plus fees and commissions) than that on a direct loan.
Like the market for CDs, the acceptance market is an over-the-counter market. The market is
highly liquid and is supported by around 30
dealers and a dozen brokers. Dealers quote bid
and asked prices for round lots of $5 million. If
the transaction to be financed is larger, several
drafts of $5 million each will be drawn. For
smaller transactions, a number of drafts of similar maturities drawn on the same bank will be
packaged to trade as a round lot. Typical maturities are one, three, and six months, with the
average reportedly around three months.
GROWTH OF THE MARKET
During the 1970s, the U.S. acceptance market
expanded rapidly. From 1973 to 1979, total eligi-
Recent Developments
ble acceptances increased more than fivefold,
from $7 billion to $43 billion, while, by comparison, total loans at U.S. banking offices roughly
doubled. Several factors seem to have been at
work. The oil price hikes of 1973-74 and 1978-80
boosted the dollar value of oil imports and world
trade and had a particularly pronounced impact
on the demand for financing of third-country
acceptances (see chart 2).
However, the importance of the growth of
trade as an influence on the growth of the acceptance market is often overstated. The proportions
of U.S. and third-country trade financed in the
U . S . acceptance market are relatively small and
are far from constant (see chart 3). Inasmuch as
acceptances are free from reserve requirements
and the opportunity cost of those requirements
varies proportionately with interest rates, the
cost advantage of acceptances over other forms
of bank credit widens as interest rates rise.
Hence the general uptrend in interest rates during the 1970s contributed importantly to the rapid
expansion in acceptance financing.
The increasing use of refinance bills also facilitated the financing of a greater share of thirdcountry trade in the U.S. acceptance market.
The largest borrowers in this market reportedly
were Japanese, Korean, and Latin American
in the Bankers Acceptance
Market
5
3. Total world trade, U.S. and third country, and
proportions financed by U.S. dollar acceptances
Billions of dollars
Trade 1
2,000
mmm
1,500
U.S. imports and exports
• • • • • • • • • • • I
Share, in percent
Share financed by U.S. dollar acceptances 2
Third-country trade
2. Total U.S. dollar acceptances, by type of acceptance
Billions of dollars
1. Data are annualized quarterly flows.
2. Shares financed assume an average acceptance maturity of 90
days.
SOURCES. International Financial Statistics and Monthly Survey of
Eligible Bankers Acceptances, selected issues.
Third country
Domestic shipments
banks. Third-country acceptances grew especially rapidly during the 1970s, increasing from 45
percent of the total market to 53 percent over the
decade.
Development
U.S. exports
SOURCE. Monthly Survey of Eligible Bankers Acceptances.
of Supply
Constraints
In addition to setting eligibility criteria, section
13(7) of the Federal Reserve Act limits the
amount of eligible acceptances that an individual
bank can create. Before 1982, these limits applied only to member banks and were set at 50
6
Federal Reserve Bulletin • January 1986
ities of these groups expanded apace. By 1980,
however, almost all of the top-tier banks and
many of the larger regional banks were at or near
the statutory limits on their creation of eligible
acceptances.
Because bank capital was growing relatively
slowly, these ceilings effectively constrained the
supply of eligible acceptance financing available
at the larger banks. Acceptance commissions
reportedly increased to around 100 to 150 basis
points at the larger banks, and growth in the
volume of their acceptances slowed markedly.
The rise in commissions at the largest banks
enabled the smaller regional banks and U.S.
agencies and branches of foreign banks to price
their acceptances more competitively. Moreover, the U.S. agencies and branches were not
subject to capital limits, and most of the smaller
regional banks were well below their ceilings.
This combination enabled the smaller domestic
issuers and the U . S . agencies and branches to
increase significantly their share of the total
acceptance market, principally at the expense of
the largest banks; by the end of 1981, the share of
the market held by the top-tier banks had declined to less than 35 percent (see chart 4).
percent of the bank's paid-up capital and surplus,
or 100 percent with permission of the Federal
Reserve Board. Although most banks had long
since been granted the higher limit, the rapid
growth of acceptances brought many accepting
banks near their ceilings.
Throughout the 1970s, the market for acceptances was dominated by the largest U.S. banks.
For one thing, these banks have had the most
extensive international operations among U.S.
institutions and naturally tend to attract a large
share of international trade financing. In addition, these banks generally can market their
acceptances at lower yields than smaller banks
can. The discount at which an individual bank's
acceptance will trade depends on the size and
recognition of the bank by investors as well as on
its overall creditworthiness. Dealers quote a
range of acceptance rates and normally trade the
liabilities of the top-tier banks, generally the
largest nine or ten U.S. money center banks, "on
the run"—that is, interchangeably—quoting
rates for them at the lower end of the range.
Quotes on the second tier, comprising twenty or
so of the largest regional banks and some of the
largest foreign banks, tend to be toward the top
of the range. Rates offered on acceptances of
smaller U.S. banks and on most foreign banks
tend to be above—in some cases well above—
this range.
During the 1970s, the top-tier domestic banks
held around 45 percent of the total dollar acceptance market and the second tier of domestic
banks had another 17 to 18 percent. With the
rapid growth of this market, acceptance liabil-
To some extent, the top-tier banks were able
to channel their acceptance activity to their Edge
act corporation subsidiaries. These subsidiaries,
which are restricted by charter to a banking
business that is international in character, are
subject to less stringent restrictions on their
volume of acceptance liabilities. Edge corporations may create eligible acceptances up to 200
percent of paid-up capital and surplus, and even
4. Percentage of total acceptance liabilities outstanding issued by various institutions
Percent
U.S. agencies and branches of foreign banks
sil
IS•
L •i!
Second tier o f ,
First tier of domestic banks
L
1979
First-tier domestic banks are the nine largest U.S.-chartered banks.
Second-tier domestic banks are the next twenty largest U.S.-chartered banks.
L.
i.
1981
75
mm
50
25
Mil
1983
1985
SOURCE. Quarterly Reports of Condition (Call Reports). December
data are used for 1978-84 and June data for 1985.
Recent Developments
in excess of this limit so long as the acceptances
are secured by another bank. In effect, an Edge
corporation can issue acceptances without limit
by acquiring an indemnification agreement from
a bank that protects it against loss in the event of
borrower default. By contrast, the regulations in
effect at the time did not allow member banks to
use such "risk participations" to issue eligible
acceptances in excess of their limit.
By channeling some of their acceptance activity through their Edge subsidiaries, the largest
member banks were able to retain a portion of
their market share: the market share of top-tier
banks plus their Edge subsidiaries declined 9
percentage points from 1978 to 1981, while the
share of the top-tier banks shrank 12 percentage
points. The retention of market share was not
without cost, however, because the participating
banks receive a share of the acceptance commission in exchange for the indemnification agreement.
Legislative
Relief
As many of the largest member banks approached the limits on eligible acceptances, they
began to seek legislative relief. These efforts
reached fruition with the passage by the Congress of the Bank Export Services Act (BESA),
effective October 8, 1982. Section 207 of the act
raised the limits on the aggregate amount of
eligible acceptances that may be issued by an
individual member bank to 150 percent of capital
(200 percent with Board permission). The act
included three other important provisions. First,
it applied these same limits to U.S. agencies and
branches of any foreign bank whose parent bank
has more than $1 billion in worldwide consolidated bank assets or is controlled by a foreign
company that has such assets. Second, it clarified the treatment of participations in acceptances by providing that in cases in which a
member bank or a branch or agency covered by
the BESA limits sells a participation to another
covered bank, the portion sold will be applied to
the purchaser's limit, not the seller's. Third, it
eased the eligibility requirements for acceptances financing domestic shipments of goods by
eliminating the need to attach documents conveying or securing title at the time of origination.
in the Bankers Acceptance
Market
7
The Federal Reserve Board, to which the
Congress delegated the authority to define the
terms used in section 207, subsequently clarified
the application of the limits to U.S. agencies and
branches of foreign banks and to participations in
three ways. First, with regard to foreign bank
capital, the Board decided that for purposes of
calculating limits on eligible acceptances, the
foreign parent should be defined as the bank
entity that owns the agency or branch most
directly, capital should be measured in accordance with accounting standards in the parent
bank's home country, and conversion to the
dollar equivalent should be made at least quarterly.
Second, with regard to participations in which
a noncovered bank (for example, a nonmember
bank or an Edge act corporation) is a party, the
Board concluded that the Congress had intended
to place a limit on the total amount of eligible
acceptances that may be created by all covered
banks. Accordingly, the Board ruled that an
eligible acceptance issued by a covered bank and
sold through a participation agreement to a noncovered bank will still be applied to the covered
bank's limit, and the same treatment will apply to
an eligible acceptance issued by a noncovered
bank and purchased by a covered bank through a
participation agreement.
Finally, the Board established two minimum
requirements that a participation must satisfy for
purposes of the BESA limits: (1) the selling and
the purchasing banks must enter into a written
agreement under which the latter acquires the
former's claim against the borrower in the
amount of the participation that is enforceable if
the borrower fails to perform under the acceptance; and (2) the agreement must provide that
the selling bank obtains a claim against the
purchasing bank in the amount of the participation that is enforceable if the borrower fails to
perform. The Board did not require the purchasing bank to be obligated to pay the holder of the
acceptance at the time it is presented for payment, although such a provision would be acceptable. Thus the Board defined a participation
to include both "traditional" participations, under which both the obligation to pay the holder
and the claim on the borrower are transferred
from the seller to the purchaser, and "risk"
8
Federal Reserve Bulletin • January 1986
participations, in which the selling bank retains
the obligation to pay the holder but is indemnified by the participant bank against a share of the
default risk of the borrower. This definition also
repealed a requirement that the names or interests of the purchasing banks appear on the
acceptance, which the Board had set forth in an
interpretation issued in 1979.
Developments
since
the
BESA
Immediately following passage of the BESA,
growth in bankers acceptances accelerated: total
acceptances increased $3 billion in the fourth
quarter of 1982, an annual rate of growth of about
17 percent. Acceptance commissions also reportedly dropped considerably, especially for prime
customers.
In the first quarter of 1983, however, the
acceptance market began to contract. Over the
first two quarters of that year, acceptances outstanding declined about $7 billion, or 18 percent
at an annual rate. The market rebounded in the
second half of 1983 and surged in the summer of
1984, achieving a new peak of $82 billion in June
1984. Since that time the market has contracted
steadily, falling nearly 20 percent from the peak,
to $66 billion in September 1985. The sharpest
declines have been registered in third-country
and U.S. export acceptances; only domesticshipment acceptances have increased. Informal
reports by bankers indicate that commissions
have narrowed a bit further, to around 50 basis
points on average.
FORCES UNDERLYING THE CONTRACTION
In part, the contraction of the bankers acceptance market since early 1983 has resulted from a
reversal of the trends that had spurred the market's rapid growth in earlier years: the dollar
value of eligible global international trade has
been virtually flat, on balance, since the beginning of the decade; and market interest rates
have declined sharply from the historic peaks
reached early in the decade, thereby reducing the
value of the exemption of eligible acceptances
from reserve requirements. But the shrinkage of
the acceptance market also reflects fundamental
changes in the market for short-term credit for
major nonfinancial corporations and foreign
banks. Changes in investors' perceptions of risk
have allowed such borrowers to meet an increasing share of their short-term financing requirements in the U.S. commercial paper market and
the Eurodollar markets. To a degree, banks have
responded to stiffer competition from these markets by pricing business loans and acceptances
more competitively. However, some large domestic banks appear increasingly reluctant to
accept the narrow commissions now available in
the acceptance market, in part because of pressures to improve capital-asset ratios. Over the
past year, the willingness of domestic banks to
extend acceptance credit appears to have depended importantly on whether the asset can be
removed from the balance sheet of the parent
holding company, and thus from the computation
of its capital-asset ratio, through sale of a risk
participation.
The Dollar
Value of Eligible
Transactions
After rising at an annual rate of about 20 percent
in the 1970s, the dollar value of global international trade actually declined in 1981-82 and, on
balance, was about unchanged in the first four
years of this decade (see the top panel of chart 3).
This turnaround resulted largely from declines in
the dollar prices of internationally traded goods
owing to both the rising foreign exchange value
of the dollar and the slowing of world inflation.
Dollar-denominated commodity prices fell more
than 20 percent between 1980 and 1984, and the
physical volume of world trade also decelerated
significantly—both depressed by the global recession early in the decade and the emergence of
financing difficulties in many developing countries.
As noted earlier, the correlation between the
dollar value of international trade and the
amount of acceptance financing of such trade is
far from perfect. The acceptance market outpaced international trade throughout the 1970s
and early 1980s, and the recent contraction of the
market occurred despite some recovery in international trade (see chart 3). Nonetheless, disaggregated data on acceptances suggest that the
Recent Developments
value of eligible transactions does affect the
amount of acceptances. For example, with the
dollar value of U.S. imports increasing rapidly in
the past two years, acceptances financing U.S.
imports have declined much less than acceptances financing third-country trade or U.S. exports.
Alternative
Sources
of
Credit
To a large extent, the U.S. bankers acceptance
market is an interbank market. As noted earlier,
many foreign banks, especially Japanese and
other Asian banks, have relied heavily on U.S.
banks to refinance their own acceptances. Indeed, at the end of March 1985 such refinancings
accounted for roughly 60 percent of the outstanding acceptances created by U.S. banks, according to the Senior Loan Officer Opinion Survey on
Bank Lending Practices. Discussions with U.S.
bankers suggest that this share has declined
during the past two years, as the volume of
refinance bills has fallen especially rapidly. In
part, this decline has occurred because Japanese
banks have issued a larger amount of their own
acceptance liabilities through their U.S. agencies
and branches. By itself, this development would
not have resulted in a decline in the total size of
the market; however, at the same time, Japanese
banks and other foreign banks apparently also
have funded an increasing share of their customers' eligible transactions by issuing Eurodollar
CDs and borrowing in the Eurodollar interbank
markets.
Between December 1982 and June 1985, acceptance liabilities outstanding at U.S. agencies
and branches of Japanese banks increased $8'/2
billion, thereby nearly doubling their market
share, from 14 percent to 27 percent. Over the
same period, Eurodollar CDs outstanding at
London branches of Japanese and other foreign
banks rose about $13V2 billion, raising their market share from 46 percent to 63 percent (see the
table). Apparently, investors in these markets,
primarily nonbanks, have come to view more
favorably the risks associated with holding dollar-denominated claims on Japanese banks. Rate
spreads between liabilities of large Japanese
banks and of large American banks have nar
in the Bankers Acceptance
Market
9
Eurodollar CDs outstanding at London offices
of commercial banks
Billions of dollars
Type of bank
Date
Total
U.S.
Japanese
Other
1978
December.
27.9
15.5
4.8
7.6
1979
December.
43.3
26.0
7.7
9.6
1980
December
49.0
26.9
8.9
13.2
1981
December
77.7
44.7
12.1
20.9
Member
92.3
50.2
18.9
23.2
90.4
93.5
95.0
100.2
45.0
45.9
45.7
46.1
22.3
24.3
25.9
29.3
23.1
23.3
23.4
24.8
;;;;;;;;;;;;
100.0
97.6
98.9
95.8
44.1
38.1
35.2
34.2
30.6
32.8
33.6
33.7
25.3
26.7
30.1
27.9
::::::::::::
95.7
88.0
92.9
35.6
32.2
33.8
30.5
27.6
29.4
29.6
28.2
29.7
1983
March
September ! 1!! " !! " "
December
' ">
-
-V,
1984
June.
J
SOURCE. Bank of England.
rowed significantly in the secondary markets for
acceptances and Eurodollar CDs. In each market, liabilities of 12 large Japanese banks now
trade on a "no name" (interchangeable) basis at
rates as little as 5 basis points above the liabilities
of U.S. money center banks, whereas several
years ago these banks reportedly paid a premium
of as much as 50 or 60 basis points.
Only relatively few large foreign banks from
the major industrialized countries have been able
to issue any significant volume of their own
liabilities in the bankers acceptance market or in
the Eurodollar CD market. For most foreign
banks, borrowing in the Eurodollar interbank
markets is the primary alternative to refinancing
in the acceptance market. Such substitution has
been encouraged by a marked narrowing of the
spread between the London interbank offered
rate (LIBOR) and the rate on acceptance liabilities (see chart 5), which can be traced in part to
declining costs of reserve requirements. (Efforts
by large U.S. banks to minimize their cost of
funds tend to place a floor under LIBOR equal to
10
Federal Reserve Bulletin • January 1986
5. Spread between LIBOR and the yield on
prime bankers acceptances
Basis points
1981
'
1983
'
'
1985
Data are quarterly averages of rates on three-month instruments;
investment yield basis.
the domestic CD rate, adjusted for the cost of
reserve requirements. See, for example, the
study by Lawrence L. Kreicher in the summer
1982 issue of the Federal Reserve Bank of N e w
York's Quarterly Review.) For foreign banks
that can obtain funds at LIBOR, this spread
places a ceiling on the commission the bank is
willing to pay for refinancing its acceptances. If
the commission quoted is larger, those foreign
banks will borrow in the Eurodollar market rather than draw a refinance bill. Since U.S. banks
reportedly have been reluctant to accept commissions of 25 basis points or less, the most
creditworthy foreign banks have greatly reduced
their use of refinance bills.
The demand for acceptance credit by nonfinancial corporations also has diminished in recent years, for much the same reasons that
demand by foreign banks has fallen off. One
factor has been the increased availability of
funding from nonbank investors in the U.S.
commercial paper market: from March 1983
through September 1985, outstanding nonfinancial commercial paper increased from $46 billion
to $75 billion. Prime commercial paper generally
trades at rates near those on acceptance liabilities of prime banks, and for firms with access to
this market, the overall cost, including placement fees charged by dealers and fees for backup
lines of credit, usually is below the all-in cost of
acceptance credit.
Another factor that has depressed the demand
for acceptance credit by nonfinancial corporations has been the diminishing role of the prime
rate as a benchmark for the pricing of business
loans (see, for example, the study by Thomas F.
Brady in the January 1985 issue of the BULLETIN.) Whereas acceptance credit once was virtually the only source of financing at rates below
the prime rate, competition from the commercial
paper market and from foreign banks has induced U.S. banks to offer other below-prime
pricing options to an increasing number of nonfinancial corporations. For example, revolving
credit facilities now typically offer a choice
among pricing off the prime rate, LIBOR, or
rates on domestic CDs (usually adjusted explicitly for the cost of reserve requirements). As such
arrangements have spread, and declining interest
rates have reduced the cost of reserve requirements, the cost of business loans has declined
significantly relative to rates on acceptance liabilities. Although a paucity of data on acceptance commissions precludes precise comparisons of the cost of acceptance credit and the cost
of business loans, discussions with bankers suggest that rates on bank loans priced off LIBOR or
other money market rates now are not significantly higher than the all-in rates quoted for
acceptance credit.
Several other factors have tended to reduce
the attractiveness of acceptance credit. First,
bankers acceptance pricing is seldom available to
nonfinancial corporations under loan commitments. If the corporation pays a fee on the
unused portion of the loan commitment, it incurs
an opportunity cost when it uses acceptance
credit rather than drawing on a loan commitment. The exclusion of a bankers acceptance
pricing option from most loan commitments
probably is a legacy of the period when the
statutory limits on eligible acceptances were a
binding constraint on many member banks. With
the new limits now generally well in excess of
outstanding acceptances, banks may offer an
acceptance pricing option in loan commitments
more frequently. Second, the eligibility requirements for domestic- and foreign-storage acceptances continue to impose additional documentation costs. Documentation costs can significantly
reduce the attractiveness of acceptances, as evidenced by the growth of domestic-shipment acceptances since BESA removed the requirement
that documents conveying title be attached at the
time of acceptance. While other eligible acceptances outstanding have declined 15 percent
Recent Developments
since the passage of BESA, domestic-shipment
acceptances have increased nearly 500 percent,
albeit from a very low base.
Willingness
to Extend
Acceptance
Credit
The decline in acceptance commissions over the
past several years suggests that the contraction
of the market has resulted primarily from a
reduction in the demand for acceptance credit
rather than in the supply of acceptance credit.
Nevertheless, a decrease in the willingness of
certain large U.S. banks to supply acceptance
credit may have contributed to the contraction in
both the overall size of the market and the
market share of U.S. banks. Since the early
1980s, both federal banking regulators and investors have pressured large U.S. banks to boost
their capital-asset ratios. Some banks are believed to have responded to this pressure in part
by reducing their acceptance credits and other
low-yielding, low-risk assets.
The influence of concern about capital adequacy on the willingness to extend acceptance credit
has been evident in data on sales of risk participations in acceptances. The sale of a risk participation has had implications for capital-asset ratios because in some cases it has allowed the
seller to reduce its reported assets by the amount
of the participation. Federal banking regulators
have not allowed banks to follow this accounting
practice on their quarterly reports of condition
(Call Reports), which are used by the federal
regulatory agencies to assess the capital adequacy of commercial banks. Until recently, however, the absence of generally accepted accounting
principles has allowed some banks to deduct risk
participations from the balance sheet in other
public financial statements. In particular, some
banks have deducted risk participations from the
balance sheets reported quarterly as part of the
Bank Holding Company Financial Supplement
(Form FR Y-9), which the Federal Reserve uses
to compute capital ratios for use in administering
capital-adequacy guidelines for bank holding
companies. Public accounting firms, which
strongly influence the accounting practices of
banks on public financial statements, have expressed divergent views on the appropriate treatment of risk participations.
in the Bankers Acceptance
Market
11
Decisions to sell risk participations have not
been based solely on the implications for capitalasset ratios. Banks have sold participations to
limit their credit exposure to particular customers or countries and to direct business to banks
with which they have correspondent relationships. Discussions with bankers and comparisons of Call Reports with other public financial
statements suggest, however, that capital considerations have been paramount. Banks that have
been active sellers of risk participations generally have deducted participations from other financial statements, whereas banks that have sold
only small amounts often have not claimed a
reduction. In turn, the willingness to extend
acceptance credit has clearly been related to the
sale of risk participations. A number of banks
have sold risk participations quite actively: at the
end of September 1985, 14 U . S . banks had sold
risk participations in 20 percent or more of their
outstanding eligible acceptances. In the previous
11 months, these 14 banks expanded their share
of the acceptance market about 3 percentage
points, while the market share of other U.S.
banks declined 9 percentage points (see chart 6).
Both federal regulators and accounting industry groups recently have addressed the divergent
practices in accounting for risk participations in
acceptances. In November 1985, the Federal
Reserve announced that beginning in March
1986, it will collect data on sales of risk participations in acceptances on the Y-9 and use these
data to adjust upward the reported assets of
6. Market shares of U.S.-chartered commercial
banks in the bankers acceptance market
Percent
50
40
Inactive sellers of risk
participations
Active sellers Of risk participations
i
1984
-
30
20
1985
Monthly data; active sellers are those that as of September 1985 had
sold participations in 20 percent or more of their outstanding acceptances.
SOURCE. Monthly Survey of Eligible Bankers Acceptances.
12
Federal Reserve Bulletin • January 1986
banks that deduct risk participations from the
balance sheet. At the same time, the Emerging
Issues Task Force of the Financial Accounting
Standards Board considered appropriate practices for such transactions. A clear majority of
the task force members concluded that the sale
of a risk participation in an acceptance does not
allow the selling bank to remove the amount sold
from its balance sheet. On the basis of the task
force's discussion, the Securities and Exchange
Commission announced that it believes that material amounts of acceptances should not be
removed from an accepting bank's balance sheet
after the sale of risk participations. In light of
these actions, such sales no longer will significantly affect capital-asset ratios.
OUTLOOK
The market for dollar-denominated acceptances
appears unlikely to resume rapid growth in the
near future and may well continue to contract.
Even if the dollar value of world trade continues
to expand, the demand for acceptance financing
will probably remain weak. Attractive substitutes for dollar-denominated acceptance financing continue to proliferate as a result of financial
innovation and deregulation. Within the past two
years, for example, markets for short-term dollar-denominated notes have evolved in London—Euronotes, issued under note-issuance facilities, and Euro-commercial paper—that in
many ways resemble the U.S. commercial paper
market. Although to date only a relatively small
amount of notes appears to have been distributed
in these markets, many borrowers, including
many borrowers based in the United States, have
arranged such facilities, and both commercial
and investment banks appear to be devoting
substantial resources to enlarging their distribution capacity. Meanwhile, deregulation abroad
likely will foster greater use of foreign currencies
to finance world trade. For example, the deregulation of the Japanese financial markets may
facilitate the financing of a larger share of Asian
trade and other world trade in yen. A noteworthy
development was the inauguration this past June
1 of a market in bankers acceptances denominated in yen.
On the supply side of the market, the picture is
less clear. The recent decisions by the federal
regulators regarding the reporting of risk participations in acceptances may cause those banks
that have been active sellers of participations to
become more reluctant to extend acceptance
credit. On the other hand, the Federal Reserve is
carefully considering proposals for quantifying a
risk-adjusted capital measure to supplement the
present approach to the measurement of capital
adequacy. One objective of this effort is to
temper the present incentives for U.S. banks to
reduce their low-yielding, low-risk assets, such
as acceptance credits. Meanwhile, Japanese
banks likely will remain an important source of
dollar-denominated acceptance credit.
•
13
Industrial Production
Released for publication
November
15
In market groups, output of consumer goods
increased 0.2 percent in October. Auto assemblies declined about 6 percent to an annual rate
of 7.6 million units, largely because of strike
activity; production of lightweight trucks also
was affected. However, production of home
goods, including appliances, increased in October as did that of nondurable consumer goods.
Production of business equipment grew 0.3 per-
Total industrial production was unchanged in
October. Output of durable consumer goods declined, but there were production gains among
nondurable consumer goods, and overall output
of equipment changed little. At 124.9 percent of
the 1977 average, the index for October was 1.8
percent higher than that of a year earlier.
Ratio scale, 1977 = 100
_
140
TOTAL INDEX
Products
120
100
1
— ^
T/'
/
Materials
1
1
1
1
1
1
140
MANUFACTURING
_
Nondurable
~
1
80
V -
'
l
I
—
I
i
Nondurable
i
i
/
__
100
Energy
\ y
I
I
Durable
Durable
l
1
MATERIALS
120
/
1
80
I
i
i
i
1
1
160
CONSUMER
GOODS
INTERMEDIATE
140
PRODUCTS
Business supplies
120
100
'V
\
V/
^ s j
Durable
C o n s t r u c t i o n supplies
I
I
I
L
240
FINAL PRODUCTS
200
D e f e n s e and space
_
160
Business e q u i p m e n t
140
120
100
Consumer goods
J
1979
1981
1983
1985
All series are seasonally adjusted. Latest figures: October.
1979
1981
I
!
1983
L
1985
14
Federal Reserve Bulletin • January 1986
1977 = 100
Percentage change from preceding month
1985
1985
Group
Sept.
Oct.
June
July
Aug.
Sept.
Oct.
Percentage
change,
Oct. 1984
to Oct.
1985
Major market groups
Total industrial production
124.9
124.9
.2
-.2
.8
-.1
.0
1.8
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Defense and space
Intermediate products
Construction supplies
Materials
132.9
133.4
121.5
113.2
124.6
142.9
177.5
131.4
121.0
113.9
133.1
133.4
121.8
112.5
125.2
143.2
176.9
131.8
121.4
113.7
.2
.0
.3
.2
.3
-.8
1.3
.8
.9
.1
.0
.1
-.2
-.6
-.1
.4
.3
-.5
.2
-.5
1.0
1.1
1.0
2.5
.6
1.2
.9
.8
1.8
.4
.0
.1
.1
-.8
.5
-.1
1.1
-.3
-.4
-.3
.1
.0
.2
-.6
.5
.3
-.3
.3
.3
-.2
3.2
2.7
2.8
1.0
3.5
3.0
8.2
4.4
6.0
-.4
-.2
-.4
.2
-.4
1.8
.0
-.2
.1
-1.4
-.2
1.9
1.2
3.0
-.5
2.3
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
127.9
128.7
126.8
108.1
112.2
127.9
128.5
127.0
106.7
112.0
.1
-.3
.6
.7
-.3
.2
.2
.1
-1.7
-2.4
1.0
1.1
.7
-.1
-.5
NOTE. Indexes are seasonally adjusted.
cent, with gains in most categories; output declined in transit equipment, however, because of
the strike-related reductions in the production of
business vehicles. In October, production of
defense and space equipment was off 0.3 percent, associated with another labor dispute, but
output in this sector remained more than 8 percent higher than that of a year earlier. Materials
output edged down in October, largely reflecting
a decline in energy materials. Output of durable
materials was unchanged as a drop in production
of parts for consumer durables was offset by
gains in other components.
In industry groups, manufacturing output was
unchanged in October, with a small decline in
durables and a slight rise in nondurables. Production at mines was reduced sharply due to cutbacks in coal output and in oil and gas extraction.
Output of utilities also was off in October.
15
Statements to Congress
Statement by Stephen H. Axilrod, Staff Director
for Monetary and Financial Policy, Board of
Governors of the Federal Reserve System, before the Subcommittee on Domestic
Monetary
Policy of the House Committee on Banking,
Finance and Urban Affairs, November 7, 1985.
I am pleased to appear before you this morning
to discuss the exchange markets for the dollar in
the aftermath of the G-5 meeting on September
22 and also the relationship among exchange
market conditions and domestic economic and
credit developments. At the September meeting,
finance ministers and central bank governors of
the G-5 countries emphasized the interrelationships among our economies, the importance of
mutually consistent policies in achieving sustained growth and dealing with economic imbalances, and the role played by exchange rates.
They indicated that, in their judgment, the thencurrent constellation of exchange rates did not
fully reflect the underlying movement toward
convergence in our economies—in terms of both
satisfactory real growth and progress in reducing
inflation. Intentions were reaffirmed to implement policies that would lead to better balance
within and among our individual countries. Finally, a willingness to intervene more actively in
exchange markets when "to do so would be
helpful" was implied, and indeed since then a
sizable amount of coordinated intervention has
been undertaken.
Before addressing some of the specific issues
that this hearing is attempting to explore, let me
provide some perspective on the economic conditions in the United States that were background to, and that may benefit from, the recent
exchange market initiative.
Our economy has been performing quite
strongly, overall, since the 1982 recession in
terms of economic growth, new jobs created, and
reduced inflationary pressures. However, our
economic growth slowed appreciably after the
middle of last year. Some slowing was, of
course, natural as the economy reached higher
levels of resource utilization, but the extent of
our slowing also seemed related to imbalances in
the economy that were traceable in part to the
very high level of the dollar on exchange markets.
The rate of increase in domestic output—
which generates the income we need in the end
to sustain spending—has been only 2Va percent
over the past 15 months. Meanwhile, domestic
demand in real terms has continued to rise at a
rate of more than VA percent a year, and final
demands for consumption, for government outlays, and for investment and housing have been
running even higher relative to output, growing
about AVi percent per year over the period.
The difference between growth in U.S. final
demand and growth in U.S. output, apart from
slowing of inventory accumulation, is a reflection of our rising trade and current account
deficits. In effect, while we have created more
than 9 million jobs in three years within the
United States, we have also turned to importing
(net) well over 3 percent of our gross national
product. The very favorable terms on which
goods can be obtained from abroad, given the
exchange rate, have been an important contributory factor along with relatively slow domestic
growth of other leading countries.
The rise in imports has brought with it some
benefits along with its costs. One clear gain is the
associated reduction in inflationary pressures in
the United States. It is not just that the price of
imported goods has declined as the value of the
dollar has risen. There are also important indirect effects. Bottlenecks in some sectors have
been avoided. Firms using imported goods in
their production processes have seen their costs
rise less rapidly, or decline, and have passed
these cost savings on to consumers. Some other
firms, who may not use imported goods but who
must compete with imported goods, have been
induced to invest, to innovate, and to modernize
their production to preserve their markets, with
16
Federal Reserve Bulletin • January 1986
potential lasting benefit to the U.S. economy in
terms of efficiency and enchanced productivity.
Also, the rise in U.S. imports has created
export opportunities in other countries and thus
has played a role in fostering growth abroad.
This growth includes not only industrial countries, but also, of course, some of the heavily
indebted countries of Latin America and elsewhere. In the latter group, growth of exports has
facilitated the lengthy and painful adjustment
process that they have undertaken.
However, with U.S. trade and current account
deficits each approaching $130 billion, strains are
showing. Under the pressure of rising imports,
manufacturing activity as a whole has been stagnant for a year, and some industries are losing
jobs. This development has contributed directly
to the slowing of growth in output in this country, and seems to be encouraging plans to put
more future investment abroad. Mining activity
in the United States is also at a low ebb, and
many individual farmers, with exports diminishing and prices low, face very difficult financial
circumstances. And, as you are well aware, the
strongest tide of protectionist pressures since the
1930s is running.
The U.S. trade and current account deficits
have now reached levels that cannot be sustained
indefinitely, threatening to undercut our stability
and implying less stimulus to others. We have
now become a net debtor internationally, and
that position will continue to deepen so long as
our current account is in deficit, requiring net
inflows of capital from abroad to finance it.
Confidence in the U.S. economy remains generally strong, so that we can expect a willingness to
place sizable funds here for a time, but obviously
we cannot afford to rely excessively and indefinitely on foreign saving to help sustain our
domestic spending.
The net inflow of foreign capital, which is
inextricably tied to the trade deficit, has been
crucial to filling the gap between our limited
domestic saving and the demands on that saving
from expanding federal budget deficits and private investment outlays for plant, equipment,
and housing. Without a rising net inflow of
foreign funds in recent years, domestic interest
rates, which have in any event been historically
high, would have been still higher and added
pressure exerted on interest-sensitive sectors of
the economy. But one cannot prudently expect
foreign funds to provide a permanent basis for
balancing demand and supply in domestic credit
markets.
Over the past year there has been some abatement of interest rate pressures here. Along with
the continued availability of foreign saving, that
abatement also reflected market response to our
continued good wage and price performance and
some diminution of private credit demands this
year as growth in economic activity has slowed.
In addition, monetary growth—measured by
Ml—has been relatively large. In essence, the
Federal Reserve accommodated the increased
demand for money as interest rates dropped
because, among other factors, the economic expansion was tending to slow—with that slowing
partly because of the drag of high exchange rates
on certain key sectors of the economy. At the
same time, the exceptional strength of the dollar
suggested that the inflationary potential for the
time being would be limited.
Sustained, healthy economic growth here requires more balanced participation of all our
economic sectors. Appreciation of some important foreign currencies relative to the dollar will
contribute to that. It will help our export industries, including agriculture, and provide greater
opportunities for industries sensitive to import
competition.
The exchange value of the dollar has dropped
about 8 percent on a trade-weighted basis since
the G-5 meeting and is now about 22 percent
below its peak in February. Some progress has
thus been made toward easing undue competitive
pressures on U.S. industry. While there are
always lags and uncertainties in economic processes, the drop so far seems unlikely in itself to
generate strong inflationary pressures, in part
because it probably represents to some extent an
unwinding of speculative pressures around the
exchange market peak that had not yet been
reflected in prices of traded goods but also
because it is occurring at a time when some
excess capacity exists, economic growth is relatively slow, and inflationary expectations here
are relatively subdued.
I might also add at this point that exchange
market intervention does not necessarily have
expansive or restrictive effects on availability of
domestic credit. When the Federal Reserve ac-
Statements
quires foreign currencies, that act will create
bank reserves. However, those effects will be
offset by sales (or fewer purchases) of government securities for the System Open Market
Account, depending upon the supply of reserves,
or degree of reserve pressures, the Federal Open
Market Committee deems appropriate. In reaching that judgment, the Committee may take account of exchange market conditions, but the
judgment is not driven by the presence or the
absence of intervention.
Whether purchases of foreign currencies have
any direct effect on the amount of income that
was transferred to the Treasury from the Federal
Reserve depends on relative interest rates here
and abroad and on the behavior of exchange
rates. Interest rates are now generally lower in
key foreign countries than here, tending to reduce Federal Reserve earnings at the margin as
foreign currencies are acquired. However, even
that small reduction would be offset, and earnings sustained, should the value of the foreign
currencies acquired increase through an appreciation in their market value. Whatever the net
effect, it would be very small absolutely and
relative to Treasury receipts.
While some decline in the dollar's external
value from the extraordinarily high level of the
past year may have been necessary or desirable,
I should point out that lasting benefits depend
upon other policies and conditions. Too large or
too abrupt a decline could in today's circumstances have adverse consequences. Our deficits
on trade and current account cannot be expected
to drop off quickly. For one thing, it simply takes
time to make the large adjustments in use of our
manpower and plant capacity required of a significant real improvement in our trade balance.
Should the dollar drop too sharply, the consequent increased foreign demand for our exports
and increased domestic demand for goods that
compete with imports probably could not be
readily matched by a prompt, balancing readjustment of domestic resource use. Depending in
part on how fully utilized are our plant and
manpower resources, considerable upward wage
and price pressures could result from efforts to
achieve these real adjustments quickly, given
normal rigidities and response lags in the economy. Such a development, together with the direct effect of a sharp depreciation on import
to Congress
17
prices, would seriously jeopardize the progress
that we have made in reducing inflation and raise
new questions about interest rates.
If weakness in the dollar reflects a greatly
reduced willingness on the part of the rest of the
world to accumulate net claims on the United
States—while we were at the same time still
dependent on such funds—interest rates here
would come under additional upward pressure.
The upward pressure would be generated out of
market forces as a diminishing supply of credit at
old interest rates has to be balanced against
continued demands. A rise in interest rates will
bring balance both by increasing the supply and
by diminishing the demand.
In many ways such an outcome would be
counterproductive. Many domestic and foreign
borrowers are heavily burdened with debt, and
cannot afford greater real costs. In addition, if
rising interest rates led to greater discouragement of private investment outlays here, they
would be undermining the principal source of our
long-term economic growth and further eroding
our ability to regain international competitiveness.
The adjustment problems that I have described
would be greatly alleviated by meaningful and
assured progress in reducing our high federal
budget deficits. The budget deficit not only
looms large relative to our own domestic propensity to save but it also represents a significant
drain on world saving. As the deficit is reduced it
would directly alleviate pressures on credit markets, would diminish our dependence on foreign
saving, and would free up domestic resources
that could be shifted in a more orderly fashion to
export and import-sensitive industries.
That is the reason that the G-5 ministers and
governors, and much of the subsequent discussion, have rightly emphasized the need for more
fundamental macroeconomic policy adjustments
here and abroad. The Federal Reserve takes as
one point of departure the fact that maintenance
of underlying confidence in the dollar is dependent on the perception that U.S. monetary policy
will remain responsible, in the sense that it will
aim to accommodate sustained growth of real
economic activity with continued progress toward price stability. Intervention and exchange
rate changes are no substitute for sound underlying policies.
•
18
Federal Reserve Bulletin • January 1986
Statement by Stephen H. Axilrod, Staff Director
for Monetary and Financial Policy, Board of
Governors of the Federal Reserve System, before the Subcommittee on Economic Stabilization of the Committee on Banking, Finance and
Urban Affairs, U.S. House of
Representatives,
November 21, 1985.
I appreciate the opportunity to appear before this
committee to clarify the technical aspects of
possible discount window lending by the Federal
Reserve to the Farm Credit System, as well as to
agricultural banks. In doing so, I would point
out, first, that no request for credit from the
Farm Credit System has been received. The
Farm Credit System has considerable strengths.
The amount of capital that it can bring to bear on
its problems is quite large, and it holds a substantial amount of liquid assets. While the Farm
Credit obligations in the market are currently
trading at a considerably wider spread above
Treasury debt than was true only a few months
earlier, that spread has stabilized and even narrowed a bit in recent weeks. The Farm Credit
System has continued to be successful in tapping
credit markets for needed funds.
In general, the Federal Reserve discount window is intended to be a short-term liquidity
facility for use by borrowers—normally limited
to depository institutions—when other sources
of liquidity are not reasonably available. Borrowers are expected to show that they have made
every effort to obtain needed funding from other
sources, consistent with the Federal Reserve's
role as the "lender of last resort." Within this
context, credit is occasionally made available to
depository institutions for more extended periods for certain purposes, such as for troubled
institutions facing sustained liquidity pressures.
But the Federal Reserve discount window was
not intended to be a facility for long-term financing or to be a substitute for risk-bearing capital.
All lending by Federal Reserve Banks at the
discount window must, by statute, be on a secured basis.
While Federal Reserve lending authority is
normally confined to depository institutions,
there are exceptions. In the case of the Farm
Credit System, the Federal Reserve has long
been authorized explicitly in the Federal Reserve
Act to lend to one component of that System—
the Federal Intermediate Credit Banks (FICB)—
under Section 13a of the Federal Reserve Act,
which addresses the discount of agricultural paper. Specifically, subsection 2 permits Federal
Reserve Banks, among other things, to discount
notes payable to an FICB provided the notes
have remaining maturities of nine months or less
and are secured by agricultural loans also with
nine months or less to run. The statutory provision does not suggest that there need be any
special findings to justify such lending, or that
the lending decision would be substantially different from that for a depository institution. This
provision of the act, which was passed in 1923,
has not been used since the early part of the
1930s.
I believe that, as a technical matter, funds
loaned to FICBs could be passed along to other
units within the Farm Credit System. However,
the FICBs are only a small component of the
System and not all of their collateral would meet
the technical requirements of section 13a of the
Federal Reserve Act. Additional authority to
lend to the Farm Credit System must rest on the
other provisions of the Federal Reserve Act that
in certain emergency circumstances permit loans
to any individual, partnership, or corporation.
Under one of the provisions (section 13.13)
such loans can be made with U.S. government or
with "federal agency" securities as collateral.
The Farm Credit System holds only a relatively
small amount of U.S. government securities or
securities of other federal agencies to pledge as
collateral—which in any event are a portion of
their overall liquidity that is likely to be drawn on
in case of need.
Under another provision of the act (section
13.3) the Federal Reserve could also make funds
available on the basis of any collateral provided
the lending is "secured to the satisfaction of the
Federal Reserve bank." But such loans can be
made only in "unusual and exigent circumstances" and require an affirmative vote by five
members of the Board.
Clearly, a finding by the Board of Governors
that such "unusual and exigent circumstances"
exist would require an important policy judgment, including evaluation of the consequences
of lending, or not, on the economy generally,
prospects for reform of the Farm Credit System
and for repayment, as well as other factors. The
Statements
emergency provisions have been used very rarely, and in the case of section 13.3 not at all, since
the mid-1930s.
Apart from that basic policy decision, enough
collateral appears to be within the Farm Credit
System as a whole to back a substantial amount
of Federal Reserve lending. By statute, an
amount of Farm Credit System assets equivalent
to note and bond obligations outstanding must be
maintained unencumbered. However, the assets
of the System exceed its obligations by several
billion dollars. More importantly, in terms of the
potential capacity for lending by the Federal
Reserve, this pool would grow if, and as, Farm
Credit System bonds were redeemed. Of course,
the total amount of lending by the Federal Reserve that could be supported by the available
collateral would depend on the appropriate valuation of that collateral at the time of the loan. In
addition, in acting as lender of last resort, particularly under emergency provisions, the Federal
Reserve Board or the lending Reserve Bank
would have the opportunity to place such restrictions on the use of its funds as it considers
reasonable and appropriate to safeguard those
funds and to facilitate the return of the borrowing
institution to financial health.
Apart from lending through the discount window, the Federal Reserve has the authority to
acquire Farm Credit System securities, as well as
other agency securities, in the open market. The
authority is provided under different sections of
the Federal Reserve Act dealing with open market operations. The Federal Reserve has, in the
past, occasionally purchased Farm Credit obligations in the market, and holds such securities
to Congress
19
today. But that open market authority is designed to facilitate the conduct of monetary
policy, not to deal with the liquidity needs of
individual institutions, troubled or not. It is not a
substitute for, nor was it intended to substitute
for, the loans that would directly provide funds
that may be needed by individual borrowers
under liquidity pressures, in this case the Farm
Credit System.
With regard to agriculturally oriented commercial banks, they have access to the usual discount window facilities at the Federal Reserve
that are open to any depository institution holding transaction accounts or nonpersonal time
deposits. Besides ordinary very short-term adjustment credit, the Federal Reserve has a seasonal credit program for smaller depository institutions that are without ready access to national
money markets. This facility is intended, in
particular, to assist agricultural banks, whose
seasonal liquidity pressures are likely to be especially strong. Last spring, the Board modified its
regular seasonal program to make more funds
available and, for the past crop season, established a special temporary program for agricultural banks that might have experienced strong
loan demand in the spring and summer. But, in
the event, with loan demand relatively light, and
the liquidity of most farm banks ample, use of the
regular and special seasonal lending facilities was
relatively modest. Agricultural banks, like other
depository institutions, also have access to other
extended credit should that be needed to help
them work out of difficult situations entailing
sustained liquidity pressures.
•
20
Record of Policy Actions of the
Federal Open Market Committee
The information reviewed at this meeting suggested that economic activity expanded in the
third quarter at an annual rate of about 3 percent,
compared with a rate of about 1 percent in the
first half of the year. While the increase in total
spending by domestic sectors was a little weaker
than in the first half, growth in domestic output
was higher because the trade balance in the third
quarter apparently did not deteriorate further.
Broad measures of prices and wages appeared to
be rising at rates close to or somewhat below
those recorded earlier in the year.
The index of industrial production increased
0.3 percent in August. Production gains were
particularly strong for consumer durable goods—
mainly because of a spurt in assemblies of light
trucks—and for defense and space equipment.
Estimates for the preceding three months were
revised down, however, and the level of output
in August was about Vi percent above the average for the second quarter. Industrial capacity
utilization edged up to 80'/2 percent, little
changed since spring and about Wi percentage
points below its level a year earlier.
The nominal value of retail sales increased
nearly 2 percent in August, mainly reflecting a
surge in auto sales after the introduction of
financing incentive programs in mid-August.
Sales of new domestic automobiles rose to an
annual rate of 9Vz million units for the month and
accelerated further to a rate of 12 million units
during the first 20 days of September. Outlays for
consumer goods other than autos also posted
gains in August, but have shown little change on
balance since early spring.
ing continued to be brisk in service-producing
industries and at finance and trade establishments. Moreover, employment in manufacturing
rose for the first time since January, but the gains
might have been overstated because of seasonal
adjustment difficulties associated with a shift in
timing of the model changeover period in the
automotive industry. The civilian unemployment
rate, which had held steady at 7.3 percent since
February, fell to 7.0 percent in August.
Private housing starts picked up in August but,
at an annual rate of l3/4 million units, were the
same as the average recorded in the second
quarter. Other indicators suggested an improved
tone in the housing sector. Sales of new homes
continued to trend up through July, and sales of
existing homes registered a sizable advance in
August. Moreover, newly issued permits for
residential building remained at relatively high
levels, and consumer attitudes toward buying
homes apparently continued to be quite positive.
Incoming information suggested a leveling of
business capital expenditures. Spending for nonresidential structures has slowed in recent
months. Shipments of nondefense capital goods
rebounded in August, about offsetting the previous month's decline. N e w orders also rose somewhat after a sharp drop in July, but that reflected
a substantial rise in the volatile aircraft category;
excluding such orders August showed an appreciable decline.
The U.S. merchandise trade deficit in July and
August averaged somewhat less than that recorded in the second quarter of the year, as a drop in
imports was partly offset by a slight decline in
exports. The drop in imports was widespread
across all major commodity categories, with especially large declines in oil, industrial supplies,
capital goods, and consumer goods.
Total nonfarm payroll employment expanded
by about 300,000 in August, well above the
average gain in the preceding four months. Hir-
Recent data on prices and wages suggested
that inflation has been holding steady at rates
somewhat lower than those earlier in the year.
MEETING HELD ON OCTOBER 1, 1985
1. Domestic
Policy
Directive
21
The producer price index for finished goods fell
0.3 percent in August, as prices for consumer
foods and energy-related items declined and
overall prices of other consumer goods were
unchanged. The consumer price index rose 0.2
percent in August for the fourth consecutive
month, less than the average monthly change in
the January-to-April period. During the first
eight months of this year, producer and consumer prices and the index of average hourly earnings have risen at rates somewhat below those
recorded in 1984.
Following the Committee's meeting in August,
the trade-weighted value of the dollar against
major foreign currencies appreciated more than 5
percent through mid-September. The dollar subsequently declined sharply, especially after the
announcement on September 22 by the finance
ministers and central bank governors of the G-5
countries that recent shifts in fundamental economic conditions had not been reflected fully in
exchange markets. It was noted in the announcement by the G-5 countries that in view of the
present and prospective changes in fundamentals, some further orderly appreciation of the
main nondollar currencies against the dollar was
desirable. By the time of this meeting the value
of the dollar had declined about 3V4 percent on
balance since the August meeting to a level
nearly 20 percent below its peak in late February.
At its meeting on August 20, 1985, the Committee had adopted a directive that called for
maintaining the slightly firmer degree of reserve
restraint that had been sought in previous weeks.
That action was expected to be consistent with
growth of M2 and M3 at annual rates of around
8V2 and 6V2 percent respectively for the period
from June to September. Growth of Ml was
expected to slow from its recent pace, but given
the rapid expansion since June, Ml was anticipated to grow at an annual rate of about 8 to 9
percent over the three-month period, considerably above earlier expectations. The members
agreed that somewhat greater restraint on reserve positions would be acceptable if growth in
the monetary aggregates were substantially faster than expected, while somewhat lesser restraint would be acceptable in the event of substantially slower monetary growth. In either
case, adjustments in the degree of reserve pres
sures would be considered in the context of
appraisals of the strength of the business expansion, developments in foreign exchange markets,
progress against inflation, and conditions in domestic and international credit markets. The
intermeeting range for the federal funds rate was
retained at 6 to 10 percent.
Ml growth surged in August to an annual rate
just over 20 percent, reflecting exceptional
strength in interest-bearing checkable deposits
and relatively rapid expansion in other components. Data for the first half of September suggested slower but still substantial expansion in
Ml. Thus, for the period from June to September, Ml was expanding at a rate well above the
Committee's expectations, and was at a level
substantially higher than the path consistent with
the Committee's range for the second half of the
year. Reflecting the surge in M l , M2 accelerated
in August to an annual rate of about 11 VA percent
and M3 also strengthened to a rate of about 8V2
percent; growth in these broader aggregates was
running slightly above the rates anticipated for
the June-to-September period. Relative to their
long-run ranges for the year, M2 was close to the
top of its range while M3 was near the middle of
its range. Growth in total domestic nonfinancial
debt remained relatively rapid in August, and
thus far in 1985 was running somewhat above the
upper end of its growth range for the year.
In the light of growth in the monetary aggregates—especially Ml—continuing to exceed expectations, and with indications of a somewhat
stronger tone in the economy as the intermeeting
period progressed, open market operations during the period were directed toward maintaining
or slightly increasing the degree of reserve restraint that had been sought shortly before the
meeting on August 20. As a result, the level of
adjustment plus seasonal borrowing rose somewhat on balance in the intermeeting interval,
averaging about $515 million in the latest reserve
maintenance period ending September 25. Borrowing had been running substantially higher in
recent days, however, because of technical market conditions associated with a hurricane on the
East Coast and the end-of-quarter statement
date.
The small increase in reserve pressures, measured by the average level of borrowings, was
not reflected in a significant change in money
22
Federal Reserve Bulletin • January 1986
market interest rates, and the federal funds rate
generally moved in a narrow range of VA to 8
percent throughout the intermeeting period, averaging close to 8 percent in the week prior to
this meeting. For Treasury securities, most
short-term yields were unchanged to down
slightly, influenced by a large pay down of Treasury bills because of debt ceiling problems, while
long-term yields were up about 5 to 10 basis
points. Most other market interest rates also
showed small, mixed changes over the period.
But yields on some federal agency securities
advanced relatively sharply in the wake of reports about financial difficulties of the Farm
Credit System.
The staff projections presented at this meeting
were little changed from those prepared at the
time of the August meeting. Growth in real GNP
was projected to pick up somewhat in the second
half of the year from the sluggish pace in the first
half and to continue at a modest pace throughout
1986. The average unemployment rate was expected to change little over the period, and the
rate of increase in prices was projected to remain
close to that experienced in the past few years.
In the Committee's discussion of the economic
situation, the members generally took the view
that the latest information was consistent with
some improvement in the rate of economic
growth. They differed to some extent in their
assessments of the prospects for the economy,
however. Several thought that moderate growth
in line with the staff projection, or perhaps a bit
faster, was a reasonable expectation for the
quarters ahead. Growth could pick up as domestic demands were maintained, given the large
buildup in liquidity over recent months, the big
federal deficit, and the possibility that the international trade position of the United States
would stop worsening. On the other hand, a few
members stressed the downside risks in various
sectors of the economy, such as potential restraint on consumer spending because of the
large buildup in debt, the weak performance in
manufacturing attributable in part to competitive
pressures from abroad, and the continued signs
of deterioration in the agricultural sector. They
expressed the view that continued sluggish expansion was the more likely course for the economy. As had been the case at previous meetings,
the members emphasized that a variety of prob
lems and financial strains in some sectors of the
economy, stemming to a substantial extent from
the massive imbalances in the federal budget and
in foreign trade, represented ongoing threats to
the sustainability of the expansion.
Considerable attention was focused on the
performance of the dollar in foreign exchange
markets and the implications of possible changes
in exchange rates for the balance of trade and the
domestic economy. The members also reviewed
developments relating to the foreign debt problems of less developed countries. In the course of
discussion members recognized, as in previous
meetings, that the extraordinary strength of the
dollar earlier had contributed to the size of the
trade deficit, but they also emphasized the importance of maintaining underlying confidence in
the dollar, given the dependence of the United
States for the time being on large capital inflows.
It was noted that the possibility, while perhaps
remote, of a precipitate continuing decline in the
value of the dollar would present a threat to the
financial system and the economy because of its
potential implications for higher interest rates
and inflationary pressures, particularly in the
absence of stronger budgetary restraint than had
yet been achieved. Protectionist legislation
would aggravate the potential difficulties. Consequently, it would be important that shifts in the
value of the dollar be orderly.
Several members referred to the generally
favorable trends in wages and prices over the
course of recent months. Some concern was
expressed, however, that inflationary expectations for the longer term might be increasing in
the context of the large increase in Ml and total
debt, disappointment over the limited progress
made thus far in reducing federal budget deficits,
and against the background of recent and possible further declines in the foreign exchange value
of the dollar. Some members also suggested that
a view may be becoming more widespread—
encouraged perhaps by the continued rapid expansion in Ml—that an effective monetary policy
directed at maintaining and reinforcing progress
toward price stability might be inhibited by sensitive conditions in some business and financial
sectors of the domestic economy and in international financial markets, particularly as long as
the federal budget deficit remained so large.
At its meeting in July the Committee had
Record of Policy Actions of the FOMC
reviewed the basic policy objectives that it had
established in February for growth of the monetary and credit aggregates in 1985 and had set
tentative objectives for expansion in 1986. For
the period from the fourth quarter of 1984 to the
fourth quarter of 1985, the Committee had reaffirmed the ranges for the broader aggregates set
in February of 6 to 9 percent for M2 and 6 to 9Vi
percent for M3. The associated range for total
domestic nonfinancial debt was also reaffirmed
at 9 to 12 percent for 1985. With respect to M l ,
the base was moved forward to the second
quarter of 1985 and a range of 3 to 8 percent at an
annual growth rate was established for the period
to the fourth quarter of the year. For 1986 the
Committee had agreed on tentative monetary
growth objectives that included reductions of 1
percentage point in the upper end of the Ml
range and Vi percentage point in the upper end of
the M3 range. The provisional range for total
domestic nonfinancial debt was reduced by 1
percentage point for 1986. At this meeting, there
was some further discussion of the 1985 range for
Ml and its role, but no change was made at this
time.
In the Committee's discussion of policy implementation for the weeks immediately ahead, the
continuing strength of Ml was assessed against
the background of relatively modest expansion in
economic activity and the absence of indications
that inflation was increasing. According to an
analysis prepared for this meeting, Ml growth
could be expected to moderate substantially over
the months ahead, even as the economy continued to expand, following its exceptionally rapid
rate of growth since late spring and the resulting
large buildup in liquidity. The most recent data
on Ml lent some weight to the outlook for
considerable slowing in this aggregate. Moreover, given the volatility of the Ml data and the
difficulties of making seasonal adjustments, a
decline in Ml for a time could not be ruled out. In
general, however, growth in Ml could be expected to be sustained over the fourth quarter as a
whole in part by the prospect that inflows of
savings funds into NOW accounts were likely to
continue, at least at a moderate rate, unless
market interest rates rose quite substantially
from current levels. In the circumstances, it
appeared increasingly doubtful that the targeted
rate of Ml growth for the second half of the year
23
as a whole could be reached without an inappropriately abrupt increase in reserve pressures and
in interest rates. Growth in M2 and M3 was
expected to remain roughly consistent with the
target ranges for 1985, and much slower growth
in Ml—consistent with the upper end of its
target—would in the view of many members be
acceptable and desirable, depending upon developments in the economy and financial markets.
As they had at the previous meeting, the
members agreed that in prevailing circumstances, including a relatively strong dollar, the
surge in Ml did not appear in itself to have
inflationary implications for the time being.
Nonetheless, while relatively rapid growth in Ml
might be tolerated for a time, concern was expressed that the longer such growth persisted,
the greater would be its potential for translation
into inflationary demand pressures. A number of
members also emphasized that the recent
strength in Ml could not be explained fully by
such factors as institutional changes and financial innovations or by shifts of funds to NOW
accounts in response to earlier declines in market
interest rates.
The members placed considerable emphasis
on the need to judge the behavior of Ml in the
context of the performance of the economy and
the relatively moderate growth in the broader
aggregates. Currently sensitive conditions in domestic and international financial markets and
debt problems in some sectors of the economy
such as agriculture were themselves a restraining
force on the economy and argued against a policy
course that might entail appreciably higher interest rates in the short run. On the other hand,
significant easing under immediately prevailing
market circumstances would incur too much risk
of prolonging undue growth in money and debt,
possibly triggering an abrupt and exaggerated
decline in the foreign exchange value of the
dollar with disturbing implications for inflation
and financial markets over time.
While individual members expressed some
shadings of opinion regarding policy implementation over the weeks ahead, it was generally
agreed that the balance of considerations bearing
on the Committee's decision argued for little or
no change from the recently prevailing degree of
pressure on reserve positions. At the conclusion
of the Committee's discussion, a directive that
24
Federal Reserve Bulletin • January 1986
called for maintaining the degree of reserve pressure sought in recent weeks was favored by most
members. They expected such an approach to
policy implementation to be consistent with
growth of both M2 and M3 at annual rates of
around 6 to 7 percent for the period from September to December. Over the same period,
growth in M l was expected to slow markedly—
also to an annual rate of 6 to 7 percent—and even
slower growth would be acceptable in the context of satisfactory economic performance, given
the very rapid expansion experienced in recent
months. The members agreed that somewhat
greater or lesser reserve restraint would be acceptable over the intermeeting period, depending
on the behavior of the monetary aggregates and
taking account of appraisals of the strength of the
business expansion, the performance of the dollar in foreign exchange markets, progress against
inflation, and conditions in domestic and international credit markets. It was also understood that
policy might be implemented with somewhat
more flexibility than usual over the relatively
short intermeeting period, given the uncertainties associated with particularly sensitive conditions in the foreign exchange and other markets.
The members agreed that the intermeeting range
for the federal funds rate, which provides a
mechanism for initiating consultation of the
Committee when its boundaries are persistently
exceeded, should be left unchanged at 6 to 10
percent.
At the conclusion of the meeting, 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 economic activity expanded in the third quarter at
a moderately faster rate than in the first half of the
year. In August, industrial production increased somewhat. Total retail sales rose considerably, boosted by
a surge in auto sales. Housing starts, while increasing
in August, were still no higher than their average level
in the second quarter. Incoming information generally
suggested a leveling of business capital spending. The
merchandise trade deficit in July and August averaged
somewhat less than in the second quarter as a drop in
imports was partly offset by a slight decline in exports.
Total nonfarm payroll employment rose somewhat
more in August than in most other recent months. The
civilian unemployment rate fell from 7.3 percent in
July—its level since February—to 7.0 percent in August. Broad measures of prices and wages appear to be
rising at rates close to or somewhat below those
recorded earlier in the year.
Following the Committee's meeting on August 20,
the trade-weighted value of the dollar against major
foreign currencies appreciated through mid-September. The dollar subsequently declined sharply, especially after the announcement on September 22 by the
Finance Ministers and Central Bank Governors of the
G-5 countries that exchange rates have not fully reflected economic fundamentals.
Ml growth surged in August, reflecting exceptional
strength in interest-bearing checkable deposits and
relatively rapid expansion in other components; data
for the first half of September suggest slower but still
substantial expansion. Reflecting the surge in Ml, M2
accelerated in August, and M3 also strengthened
somewhat. Expansion in total domestic nonfinancial
debt has remained relatively rapid. Most market interest rates have changed little on balance since the
August meeting of the Committee.
The Federal Open Market Committee seeks to foster monetary and financial conditions that will help to
reduce inflation further, promote growth in output on a
sustainable basis, and contribute to an improved pattern of international transactions* In furtherance of
these objectives the Committee at the July meeting
reaffirmed ranges for the year of 6 to 9 percent for M2
and 6 to 9Vi percent for M3. The associated range for
total domestic nonfinancial debt was reaffirmed at 9 to
12 percent. With respect to Ml, the base was moved
forward to the second quarter of 1985 and a range was
established at an annual growth rate of 3 to 8 percent.
The range takes account of expectations of a return of
velocity growth toward more usual patterns, following
the sharp decline in velocity during the first half of the
year, while also recognizing a higher degree of uncertainty regarding that behavior. The appropriateness of
the new range will continue to be reexamined in the
light of evidence with respect to economic and financial developments including developments in foreign
exchange markets. More generally, the Committee
agreed that growth in the aggregates may be in the
upper parts of their ranges, depending on continuing
developments with respect to velocity and provided
that inflationary pressures remain subdued.
For 1986 the Committee agreed on tentative ranges
of monetary growth, measured from the fourth quarter
of 1985 to the fourth quarter of 1986, of 4 to 7 percent
for Ml, 6 to 9 percent for M2, and 6 to 9 percent for
M3. The associated range for growth in total domestic
nonfinancial debt was provisionally set at 8 to 11
percent for 1986. With respect to Ml particularly, the
Committee recognized that uncertainties surrounding
recent behavior of velocity would require careful
reappraisal of the target range at the beginning of 1986.
Moreover, in establishing ranges for next year, the
Committee also recognized that account would need to
be taken of experience with institutional and depositor
behavior in response to the completion of deposit rate
deregulation early in the year.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the degree of
pressure on reserve positions sought in recent weeks.
Record of Policy Actions of the FOMC
This action is expected to be consistent with growth in
M2 and M3 over the period from September to December at annual rates of about 6 to 7 percent. A marked
slowing of Ml growth over the period to an annual rate
of around 6 to 7 percent is also anticipated; slower
growth over the next three months would be acceptable in the context of satisfactory economic performance, given recent very rapid growth in Ml. Somewhat
greater or lesser reserve restraint would be acceptable
depending on behavior of the aggregates, taking account of appraisals of the strength of the business
expansion, developments in foreign exchange markets, progress against inflation, and conditions in
domestic and international credit markets. The Chairman may call for Committee consultation if it appears
to the Manager for Domestic Operations that reserve
conditions during the period before the next meeting
are likely to be associated with a federal funds rate
persistently outside a range of 6 to 10 percent.
2. Authorization
for
Foreign Currency
25
Operations
Votes for this action: Messrs. Volcker, Corrigan,
Balles, Forrestal, Keehn, Martin, Partee, Rice, Ms.
Seger, and Mr. Wallich. Vote against this action:
Mr. Black.
At this meeting the Committee also considered
the need for adjustment in the limit on holdings
of foreign currencies in the System Open Market
Account. At present, Paragraph ID of the Committee's authorization for foreign currency operations authorized the Federal Reserve Bank of
N e w York, for the System Open Market Account, to maintain an overall open position in all
foreign currencies not exceeding $8.0 billion.
System holdings of foreign currencies currently
totaled about $5!/2 billion, based on historical
costs. In light of the potential for foreign exchange operations by the United States and other
countries following the recent G-5 announcement, the Committee agreed to raise the limit in
paragraph ID of the authorization to $10.0 billion, effective immediately.
Mr. Black dissented because he believed some
increase in the degree of reserve pressure was
needed at this time to ensure adequate slowing of
Ml growth in the period ahead.
Votes for this action: Messrs. Volcker, Corrigan,
Balles, Black, Forrestal, Keehn, Martin, Partee,
Rice, Ms. Seger, and Mr. Wallich. Votes against
this action: None.
26
Announcements
FINAL REVISIONS TO REGULATION B
The Federal Reserve Board has issued final
revisions to its Regulation B (Equal Credit Opportunity) that will assist creditor compliance
and increase protection for credit applicants. The
final revisions will become effective December
16, 1985, but creditors may continue to comply
with the Board's current regulation until October
1, 1986. The Board is also publishing an official
staff commentary to interpret the revised Regulation B.
The Board's action is part of its Regulatory
Improvement Project. Under this project, the
Board is reviewing and revising all of its regulations to update them, simplify their language,
and eliminate unneeded provisions. The revisions to Regulation B include the following:
• Procedures for dealing with incomplete applications and a broader selection of sample forms
for informing applicants of the reasons for credit
denial.
• Changes in the data notation requirements
applicable to dwelling-related mortgage loan applications.
• Changes in the definition of "applicant" to
give guarantors legal standing in the courts when
there is an alleged violation of the regulation's
signature provisions.
The major portions of the existing regulatory
provisions remain virtually unchanged. The complete text of the revised regulation may be obtained from the Federal Reserve Banks or on
request to the Board's Publication Services and
also appears in the "Legal Developments" section of this BULLETIN.
STAFF GUIDELINES FOR COMPLIANCE WITH
THE CREDIT PRACTICES RULE
Staff guidelines that are designed to help banks
comply with the Credit Practices Rule, which
goes into effect on January 1, 1986, have been
issued by the Federal Reserve Board.
Last April, the Board adopted its Credit Practices Rule—subpart B of Regulation AA (Unfair
or Deceptive Acts or Practices)—following adoption of a similar rule by the Federal Trade
Commission (FTC) for creditors other than
banks.
In general, the new rule prohibits banks from
using the following remedies to enforce consumer credit obligations: confessions of judgment;
waivers of exemption; wage assignments; and
nonpossessory, nonpurchase money security interests in household goods. The rule also bans a
practice known as "pyramiding late charges,"
prohibits a bank from misrepresenting a cosigner's liability, and requires that a cosigner receive
a notice explaining the cosigner's obligations.
The staff guidelines are in the form of questions and answers and focus on material of
general application that will be updated annually;
the first update is expected in early 1986 to
permit response to additional questions that may
arise after the rule goes into effect.
The Board's rule applies to all banks and their
subsidiaries. Institutions that are members of the
Federal Home Loan Bank System and nonbank
subsidiaries of bank holding companies are covered by the rules of the Federal Home Loan
Bank Board and FTC respectively.
POLICY STATEMENT ON PAYMENT
OF CASH DIVIDENDS
The Federal Reserve Board issued on November 14, 1985, a policy statement on the payment
of cash dividends by state member banks and
bank holding companies that are experiencing
financial difficulties.
The policy statement, which is part of a program to strengthen supervision of banking operations, addresses the following practices of super-
27
visory concern by institutions that are
experiencing earnings weaknesses, that have
other serious problems, or that have inadequate
capital: (1) the payment of dividends not covered
by earnings; (2) the payment of dividends from
borrowed funds; and (3) the payment of dividends from unusual or nonrecurring gains, such
as the sale of property or other assets.
It is the Federal Reserve's view that an organization experiencing earnings weaknesses or other financial pressures should not maintain a level
of cash dividends that exceeds its net income,
that is inconsistent with the organization's capital position, or that can only be funded in ways
that may weaken the organization's financial
health. In some instances, it may be appropriate
to eliminate cash dividends altogether.
The policy statement reads in part:
A fundamental principle underlying the Federal Reserve's supervision and regulation of bank holding
companies is that bank holding companies should
serve as a source of managerial and financial strength
to their subsidiary banks. The Board believes, therefore, that a bank holding company should not maintain
a level of cash dividends to its shareholders that places
undue pressure on the capital of bank subsidiaries or
that can be funded only through additional borrowings
or other arrangements that may undermine the bank
holding company's ability to serve as a source of
strength. Thus, for example, if a major subsidiary bank
is unable to pay dividends to its parent company—as a
consequence of statutory limitations, intervention by
the primary supervisor, or noncompliance with regulatory capital requirements—the bank holding company
should give serious consideration to reducing or eliminating its dividends in order to conserve its capital
base and provide capital assistance to the subsidiary
bank.
The Federal Reserve recognizes that many
organizations have decided on their own to reduce their dividends within the past several
years, and others have done so in response to
supervisory encouragement.
Thus, this policy is meant to reinforce prudential considerations and to encourage management to continually review dividend policies in
light of an organization's financial condition,
compliance with supervisory guidelines on capital adequacy, and future growth plans and prospects.
On October 7, the Board announced policies to
increase the frequency of on-site examination
and inspection of state member banks and bank
holding companies and said it is considering
other actions, including tightened prudential
standards, improved coordination and cooperation with other federal and state banking departments, and strengthened examination staffs and
improved examiner training programs.
Earlier this month, the Board approved revisions to the reporting requirements for bank
holding companies and implementation of a new
report on nonbanking subsidiaries. Most of these
changes will take effect on March 31, 1986, and
are designed to obtain new data to more fully
assess operations and risks, to enhance off-premise surveillance programs, to obtain data on a
more frequent basis, and to conform the account
categories and definitions, when appropriate, to
those of the call report.
In general, the revisions provide for the submission of basic financial statements prepared in
accordance with generally accepted accounting
principles, and for the collection of a limited
amount of additional data, which is to be used in
the calculation of holding companies' capital
ratios for the purpose of monitoring compliance
with the Board's guidelines on capital adequacy
ratios.
Copies of the new reporting forms for bank
holding companies (Y-6 and Y-9) may be obtained from the District Federal Reserve Banks.
POLICY STATEMENT ON REPURCHASE
AGREEMENT TRANSACTIONS
The Federal Reserve Board announced on November 1, 1985, the adoption of a supervisory
policy on repurchase agreement transactions.
The adoption of this policy had been recommended by the Federal Financial Institutions
Examination Council.
The policy statement is intended to provide
financial institutions with minimum safety-andsoundness guidelines for managing credit risk
exposure. It also provides guidance related to the
possession or control of securities involved in
repurchase agreement transactions. In addition,
the policy points out the need for full collateralization, maintenance of agreed upon collateral
margins, and frequent mark-to-market procedures.
28
Federal Reserve Bulletin • January 1986
Depository institutions doing business with
unregulated government securities dealers are
urged to verify that these dealers are complying
with the Federal Reserve Bank of N e w York's
minimum capital guidelines.
Depository institutions should contact their
District Federal Reserve Banks with questions
concerning the procedures for obtaining control
of U.S. Treasury securities and certain agency
obligations through the Federal Reserve's bookentry system.
is estimated at $618.2 million, resulting in a 102.7
percent recovery rate.
At the same time, the Board approved the 1986
PSAF for Reserve Bank priced services of $68.1
million, an increase of 11.3 percent over the 1985
level. The PSAF is an allowance for the taxes
that would have been paid and the return on
capital that would have been provided had the
Federal Reserve's priced services been furnished
by a private business firm. These actions are
effective January 1, 1986.
QUARTERLY REPORT ON PRICED SERVICES
CHANGES TO THE OPERATING
FOR FEDWIRE
The Federal Reserve Board reported on November 20, 1985, financial results of Federal Reserve
priced service operations for the quarter ending
September 30, 1985.
The Board issues a report on priced services
annually and a priced service balance sheet and
income statement quarterly. The financial statements are designed to reflect standard accounting practices, taking into account the nature of
the Federal Reserve's activities and its unique
position in this field.
SCHEDULE
The Federal Reserve Board has announced several revisions to the operating schedule for Fedwire, effective January 1, 1986.
The Board approved a change in the deadline
for interdistrict, third-party wire transfers from
4:30 p.m. to 5:00 p.m. eastern time. This change
will provide additional processing time for west
coast institutions. Also, the Board set a new
opening time of no later than 9:00 a.m. eastern
time. Currently, opening hours range from 8:00
a.m. to 11:00 a.m., with the majority of Reserve
Banks beginning operations by 9:00 a.m.
FEE SCHEDULES FOR PRICED SERVICES
PROPOSEQ ACTIONS
The Federal Reserve Board announced on November 1, 1985, the 1986 fee schedules for services provided by the Reserve Banks. For the
most part, the new fees are the same as those for
1985.
The fee schedules apply to check collection,
automated clearinghouse transactions, wire
transfer of funds and net settlement, definitive
securities safekeeping and noncash collection,
and book-entry securities services for non-Treasury securities. Fee schedules for the check
collection service will be distributed by the Reserve Banks; fee schedules for the remaining
services are available from the Reserve Banks or
from Publications Services, Board of Governors
of the Federal Reserve System, Washington,
D.C. 20551.
In 1986, total costs for priced services, including the private sector adjustment factor (PSAF),
ate projected to be $602.3 million. Total revenue
The Federal Reserve Board has issued for comment proposals, including an amendment to Regulation J (Collection of Checks and Other Items
and Wire Transfer of Funds), to reduce float
generated because of local holiday schedules.
Comment is requested by January 2, 1986.
The Federal Reserve Board has also published
for comment a proposal that would define perpetual debt securities issued by state member
banks and bank holding companies as primary
capital. Comment is requested by January 17,
1986.
SYSTEM MEMBERSHIP:
ADMISSION OF STATE BANKS
The following banks were admitted to membership in the Federal Reserve System during the
Announcements
period from November 1 through December 1,
1985.
Florida
Tampa
Commerce Bank of Tampa
Maryland
Baltimore
Chase Bank of Maryland
Montana
Billings
Ohio
Port Clinton
29
Yellowstone Bank
Society Bank
of Northwest Ohio
31
Legal Developments
REVISION
OF REGULATION
B
The Board of Governors is revising 12 C.F.R. Part
202, its regulation implementing the Equal Credit
Opportunity Act, pursuant to its policy of periodically
reviewing all of its regulations. The regulation has
been simplified to ease the burdens imposed on creditors, consistent with the Board's responsibility for
implementing the Equal Credit Opportunity Act. The
Board made changes in the data notation requirements
applicable to dwelling-related mortgage loan applications, and in the definition of "applicant" to give
guarantors legal standing in the courts when there is an
alleged violation of the signature provisions of the act
or regulation. In light of renewed concern about the
availability of business credit to women and members
of minority groups, the Board considered (but deferred
a decision on) revising the rules applicable to business
credit transactions; the Board will monitor developments in this area, and if it appears that regulatory
changes are needed, the Board will take appropriate
action. The Board also considered but did not revise
the regulation to cover consumer leasing under the
ECO A. The Board has updated some provisions of the
regulation and revised others to facilitate creditor
compliance. The revisions include streamlined procedures for dealing with incomplete applications and a
broader selection of sample forms for informing applicants of the action taken on applications. The major
portions of the existing regulatory provisions remain
virtually unchanged.
Effective December 16, 1985, with the option for
creditors of continuing to comply with the current
regulation until October 1, 1986, the Board hereby
revises 12 C.F.R. Part 202 as follows:
1. The authority citation for Part 202 continues to read
as follows:
Authority: Sec. 703, ECOA; 15 U.S.C. 1691b.
Part 202—Equal Credit
Opportunity
Section 202.1—Authority, scope and purpose.
Section 202.2—Definitions.
Section 202.3—Limited exceptions for certain classes
of transactions.
Section 202.4—General rule prohibiting discrimination.
Section 202.5—Rules concerning taking of applications.
Section 202.6—Rules concerning evaluation of applications.
Section 202.7—Rules concerning extensions of credit.
Section 202.8—Special purpose credit programs.
Section 202.9—Notifications.
Section 202.10—Furnishing of credit information.
Section 202.11—Relation to state law.
Section 202.12—Record retention.
Section 202.13—Information for monitoring purposes.
Section 202.14—Enforcement, penalties and liabilities.
Appendix A—Federal Enforcement Agencies
Appendix B—Model Application Forms
Appendix C—Sample Notification Forms
Appendix D—Issuance Of Staff Interpretations
Supplement I—Official Staff Interpretations
Authority: 15 U.S.C. 1691 et seq.
REGULATION
B (EQUAL
CREDIT
OPPORTUNITY)
Section 202.1—Authority, Scope and Purpose
(a) Authority and scope. This regulation is issued by
the Board of Governors of the Federal Reserve System pursuant to title VII (Equal Credit Opportunity
Act) of the Consumer Credit Protection Act, as
amended (15 U.S.C. 1601 et seq.). Except as otherwise provided herein, the regulation applies to all
persons who are creditors, as defined in section
202.2(1). Information collection requirements contained in this regulation have been approved by the
Office of Management and Budget under the provisions of 44 U.S.C. 3501 et seq. and have been assigned
OMB No. 7100-0201.
(b) Purpose. The purpose of this regulation is to
promote the availability of credit to all creditworthy
applicants without regard to race, color, religion,
national origin, sex, marital status, or age (provided
the applicant has the capacity to contract); to the fact
that all or part of the applicant's income derives from a
public assistance program; or to the fact that the
32
Federal R e s e r v e Bulletin • January 1986
applicant has in good faith exercised any right under
the Consumer Credit Protection Act. The regulation
prohibits creditor practices that discriminate on the
basis of any of these factors. The regulation also
requires creditors to notify applicants of action taken
on their applications; to report credit history in the
names of both spouses on an account; to retain records
of credit applications; and to collect information about
the applicant's race and other personal characteristics
in applications for certain dwelling-related loans.
Section 202.2—Definitions
For the purposes of this regulation, unless the context
indicates otherwise, the following definitions apply.
(a) Account means an extension of credit. When
employed in relation to an account, the word use
refers only to open-end credit.
(b) Act means the Equal Credit Opportunity Act (title
VII of the Consumer Credit Protection Act).
(c) Adverse action.
(1) The term means:
(i) A refusal to grant credit in substantially the
amount or on substantially the terms requested in
an application unless the creditor makes a counteroffer (to grant credit in a different amount or on
other terms) and the applicant uses or expressly
accepts the credit offered;
(ii) A termination of an account or an unfavorable
change in the terms of an account that does not
affect all or a substantial portion of a class of the
creditor's accounts; or
(iii) A refusal to increase the amount of credit
available to an applicant who has made an application for an increase.
(2) The term does not include:
(i) A change in the terms of an account expressly
agreed to by an applicant;
(ii) Any action or forbearance relating to an account taken in connection with inactivity, default,
or delinquency as to that account;
(iii) A refusal or failure to authorize an account
transaction at a point of sale or loan, except when
the refusal is a termination or an unfavorable
change in the terms of an account that does not
affect all or a substantial portion of a class of the
creditor's accounts, or when the refusal is a denial
of an application for an increase in the amount of
credit available under the account;
(iv) A refusal to extend credit because applicable
law prohibits the creditor from extending the
credit requested; or
(v) A refusal to extend credit because the creditor
does not offer the type of credit or credit plan
requested.
(3) An action that falls within the definition of both
paragraphs (c)(1) and (c)(2) of this section is governed by paragraph (c)(2).
(d) Age refers only to the age of natural persons and
means the number of fully elapsed years from the date
of an applicant's birth.
(e) Applicant means any person who requests or who
has received an extension of credit from a creditor,
and includes any person who is or may become
contractually liable regarding an extension of credit.
For purposes of section 202.7(d), the term includes
guarantors, sureties, endorsers and similar parties.
(f) Application means an oral or written request for an
extension of credit that is made in accordance with
procedures established by a creditor for the type of
credit requested. The term does not include the use of
an account or line of credit to obtain an amount of
credit that is within a previously established credit
limit. A completed application means an application in
connection with which a creditor has received all the
information that the creditor regularly obtains and
considers in evaluating applications for the amount
and type of credit requested (including, but not limited
to, credit reports, any additional information requested from the applicant, and any approvals or reports by
governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the
credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information.
(g) Board means the Board of Governors of the
Federal Reserve System.
(h) Consumer credit means credit extended to a natural person primarily for personal, family, or household
purposes.
(i) Contractually liable means expressly obligated to
repay all debts arising on an account by reason of an
agreement to that effect.
(j) Credit means the right granted by a creditor to an
applicant to defer payment of a debt, incur debt and
defer its payment, or purchase property or services
and defer payment therefor.
(k) Credit card means any card, plate, coupon book, or
other single credit device that may be used from time
to time to obtain money, property, or services on
credit.
(1) Creditor means a person who, in the ordinary
course of business, regularly participates in the decision of whether or not to extend credit. The term
includes a creditor's assignee, transferee, or subrogee
who so participates. For purposes of sections 202.4
and 202.5(a), the term also includes a person who, in
the ordinary course of business, regularly refers applicants or prospective applicants to creditors, or selects
or offers to select creditors to whom requests for credit
may be made. A person is not a creditor regarding any
violation of the act or this regulation committed by
Legal Developments
another creditor unless the person knew or had reasonable notice of the act, policy, or practice that
constituted the violation before becoming involved in
the credit transaction. The term does not include a
person whose only participation in a credit transaction
involves honoring a credit card,
(m) Credit transaction means every aspect of an
applicant's dealings with a creditor regarding an application for credit or an existing extension of credit
(including, but not limited to, information requirements; investigation procedures; standards of creditworthiness; terms of credit; furnishing of credit information; revocation, alteration, or termination of
credit; and collection procedures),
(n) Discriminate against an applicant means to treat
an applicant less favorably than other applicants,
(o) Elderly means age 62 or older,
(p) Empirically derived and other credit scoring systems.
(1) A credit scoring system is a system that evaluates an applicant's creditworthiness mechanically,
based on key attributes of the applicant and aspects
of the transaction, and that determines, alone or in
conjunction with an evaluation of additional information about the applicant, whether an applicant is
deemed creditworthy. To qualify as an empirically
derived, demonstrably and statistically sound, credit scoring system, the system must be:
(i) Based on data that are derived from an empirical comparison of sample groups or the population of creditworthy and noncreditworthy applicants who applied for credit within a reasonable
preceding period of time ;
(ii) Developed for the purpose of evaluating the
creditworthiness of applicants with respect to the
legitimate business interests of the creditor utilizing the system (including, but not limited to,
minimizing bad debt losses and operating expenses in accordance with the creditor's business
judgment);
(iii) Developed and validated using accepted statistical principles and methodology; and
(iv) Periodically revalidated by the use of appropriate statistical principles and methodology and
adjusted as necessary to maintain predictive ability.
(2) A creditor may use an empirically derived,
demonstrably and statistically sound, credit scoring
system obtained from another person or may obtain
credit experience from which to develop such a
system. Any such system must satisfy the criteria
set forth in paragraph (p)(l)(i) through (iv) of this
section; if the creditor is unable during the development process to validate the system based on its
own credit experience in accordance with paragraph
(p)(l) of this section, the system must be validated
33
when sufficient credit experience becomes available.
A system that fails this validity test is no longer an
empirically derived, demonstrably and statistically
sound, credit scoring system for that creditor.
(q) Extend credit and extension of credit mean the
granting of credit in any form (including, but not
limited to, credit granted in addition to any existing
credit or credit limit; credit granted pursuant to an
open-end credit plan; the refinancing or other renewal
of credit, including the issuance of a new credit card in
place of an expiring credit card or in substitution for an
existing credit card; the consolidation of two or more
obligations; or the continuance of existing credit without any special effort to collect at or after maturity).
(r) Good faith means honesty in fact in the conduct
or transaction.
(s) Inadvertent error means a mechanical, electronic, or clerical error that a creditor demonstrates was
not intentional and occurred notwithstanding the
maintenance of procedures reasonably adapted to
avoid such errors.
(t) Judgmental system of evaluating
applicants
means any system for evaluating the creditworthiness
of an applicant other than an empirically derived,
demonstrably and statistically sound, credit scoring
system.
(u) Marital status means the state of being unmarried, married, or separated, as defined by applicable
state law. The term "unmarried" includes persons
who are single, divorced, or widowed.
(v) Negative factor or value, in relation to the age of
elderly applicants, means utilizing a factor, value, or
weight that is less favorable regarding elderly applicants than the creditor's experience warrants or is less
favorable than the factor, value, or weight assigned to
the class of applicants that are not classified as elderly
and are most favored by a creditor on the basis of age.
(w) Open-end credit means credit extended under a
plan under which a creditor may permit an applicant to
make purchases or obtain loans from time to time
directly from the creditor or indirectly by use of a
credit card, check, or other device.
(x) Person means a natural person, corporation,
government or governmental subdivision or agency,
trust, estate, partnership, cooperative, or association.
(y) Pertinent element of creditworthiness, in relation
to a judgmental system of evaluating applicants,
means any information about applicants that a creditor
obtains and considers and that has a demonstrable
relationship to a determination of creditworthiness.
(z) Prohibited basis means race, color, religion,
national origin, sex, marital status, or age (provided
that the applicant has the capacity to enter into a
binding contract); the fact that all or part of the
applicant's income derives from any public assistance
34
Federal R e s e r v e Bulletin • January 1986
program; or the fact that the applicant has in good faith
exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has
been granted by the Board.
(aa) State means any State, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.
Section 202.3—Limited Exceptions for Certain
Classes of Transactions
(a) Public utilities credit.
(1) Definition. Public utilities credit refers to extensions of credit that involve public utility services
provided through pipe, wire, or other connected
facilities, or radio or similar transmission (including
extensions of such facilities), if the charges for
service, delayed payment, and any discount for
prompt payment are filed with or regulated by a
government unit.
(2) Exceptions. The following provisions of this
regulation do not apply to public utilities credit:
(i) Section 202.5(d)(1) concerning information
about marital status;
(ii) Section 202.10 relating to furnishing of credit
information; and
(iii) Section 202.12(b) relating to record retention.
(b) Securities credit.
(1) Definition. Securities credit refers to extensions
of credit subject to regulation under section 7 of the
Securities Exchange Act of 1934 or extensions of
credit by a broker or dealer subject to regulation as a
broker or dealer under the Securities Exchange Act
of 1934.
(2) Exceptions. The following provisions of this
regulation do not apply to securities credit:
(i) Section 202.5(c) concerning information about
a spouse or former spouse;
(ii) Section 202.5(d)(1) concerning information
about marital status;
(iii) Section 202.5(d)(3) concerning information
about the sex of an applicant;
(iv) Section 202.7(b) relating to designation of
name, but only to the extent necessary to prevent
violation of rules regarding an account in which a
broker or dealer has an interest, or rules necessitating the aggregation of accounts of spouses for
the purpose of determining controlling interests,
beneficial interests, beneficial ownership, or purchase limitations and restrictions;
(v) Section 202.7(c) relating to action concerning
open-end accounts, but only to the extent the
action taken is on the basis of a change of name or
marital status;
(vi) Section 202.7(d) relating to the signature of a
spouse or other person;
(vii) Section 202.10 relating to furnishing of credit
information; and
(viii) Section 202.12(b) relating to record retention.
(c) Incidental credit.
(1) Definition. Incidental credit refers to extensions
of consumer credit other than credit of the types
described in paragraphs (a) and (b) of this section:
(i) That are not made pursuant to the terms of a
credit card account;
(ii) That are not subject to a finance charge (as
defined in Regulation Z, 12 C.F.R 226.4); and
(iii) That are not payable by agreement in more
than four installments.
(2) Exceptions. The following provisions of this
regulation do not apply to incidental credit:
(i) Section 202.5(c) concerning information about
a spouse or former spouse;
(ii) Section 202.5(d)(1) concerning information
about marital status;
(iii) Section 202.5(d)(2) concerning information
about income derived from alimony, child support, or separate maintenance payments;
(iv) Section 202.5(d)(3) concerning information
about the sex of an applicant, but only to the
extent necessary for medical records or similar
purposes;
(v) Section 202.7(d) relating to the signature of a
spouse or other person;
(vi) Section 202.9 relating to notifications;
(vii) Section 202.10 relating to furnishing of credit
information; and
(viii) Section 202.12(b) relating to record retention.
(d) Business credit.
(1) Definition. Business credit refers to extensions
of credit primarily for business or commercial (including agricultural) purposes, but excluding extensions of credit of the types described in paragraphs
(a) and (b) of this section.
(2) Exceptions. The following provisions of this
regulation do not apply to business credit:
(i) Section 202.5(d)(1) concerning information
about marital status; and
(ii) Section 202.10 relating to furnishing of credit
information.
(3) Modified requirements. The following provisions
of this regulation apply to business credit as specified below:
(i) Section 202.9(a), (b), and (c) relating to notifications: the creditor shall notify the applicant,
orally or in writing, of action taken or of incompleteness. When credit is denied or when other
adverse action is taken, the creditor is required to
provide a written statement of the reasons and the
ECO A notice specified in section 202.9(b) if the
Legal Developments
applicant makes a written request for the reasons
within 30 days of that notification; and
(ii) Section 202.12(b) relating to record retention:
the creditor shall retain records as provided in
section 202.12(b) if the applicant, within 90 days
after being notified of action taken or of incompleteness, requests in writing that records be
retained,
(e) Government credit.
(1) Definition. Government credit refers to extensions of credit made to governments or governmental subdivisions, agencies, or instrumentalities.
(2) Applicability of regulation. Except for section
202.4, the general rule prohibiting discrimination on
a prohibited basis, the requirements of this regulation do not apply to government credit.
Section 202.4—General Rule Prohibiting
Discrimination
A creditor shall not discriminate against an applicant
on a prohibited basis regarding any aspect of a credit
transaction.
Section 202.5—Rules Concerning Taking of
Applications
(a) Discouraging applications. A creditor shall not
make any oral or written statement, in advertising or
otherwise, to applicants or prospective applicants that
would discourage on a prohibited basis a reasonable
person from making or pursuing an application.
(b) General rules concerning requests for information.
(1) Except as provided in paragraphs (c) and (d) of
this section, a creditor may request any information
in connection with an application. 1
(2) Required collection of information. Notwithstanding paragraphs (c) and (d) of this section, a
creditor shall request information for monitoring
purposes as required by section 202.13 for credit
secured by the applicant's dwelling. In addition, a
creditor may obtain information required by a regulation, order, or agreement issued by, or entered
into with, a court or an enforcement agency (including the Attorney General of the United States or a
similar state official) to monitor or enforce compliance with the act, this regulation, or other federal or
state statute or regulation.
(3) Special purpose credit. A creditor may obtain
information that is otherwise restricted to determine
eligibility for a special purpose credit program, as
provided in section 202.8(c) and (d).
1. This paragraph does not limit or abrogate any federal or state law
regarding privacy, privileged information, credit reporting limitations,
or similar restrictions on obtainable information.
35
(c) Information about a spouse or former spouse.
(1) Except as permitted in this paragraph, a creditor
may not request any information concerning the
spouse or former spouse of an applicant.
(2) Permissible inquiries. A creditor may request
any information concerning an applicant's spouse
(or former spouse under paragraph (c)(2)(v)) that
may be requested about the applicant if:
(i) The spouse will be permitted to use the account;
(ii) The spouse will be contractually liable on the
account;
(iii) The applicant is relying on the spouse's
income as a basis for repayment of the credit
requested;
(iv) The applicant resides in a community property state or property on which the applicant is
relying as a basis for repayment of the credit
requested is located in such a state; or
(v) The applicant is relying on alimony, child
support, or separate maintenance payments from
a spouse or former spouse as a basis for repayment of the credit requested.
(3) Other accounts of the applicant. A creditor may
request an applicant to list any account upon which
the applicant is liable and to provide the name and
address in which the account is carried. A creditor
may also ask the names in which an applicant has
previously received credit.
(d) Other limitations on information requests.
(1) Marital status. If an applicant applies for individual unsecured credit, a creditor shall not inquire
about the applicant's marital status unless the applicant resides in a community property state or is
relying on property located in such a state as a basis
for repayment of the credit requested. If an application is for other than individual unsecured credit, a
creditor may inquire about the applicant's marital
status, but shall use only the terms "married,"
"unmarried," and "separated." A creditor may
explain that the category "unmarried" includes
single, divorced, and widowed persons.
(2) Disclosure about income from alimony, child
support, or separate maintenance. A creditor shall
not inquire whether income stated in an application
is derived from alimony, child support, or separate
maintenance payments unless the creditor discloses
to the applicant that such income need not be
revealed if the applicant does not want the creditor
to consider it in determining the applicant's creditworthiness.
(3) Sex. A creditor shall not inquire about the sex of
an applicant. An applicant may be requested to
designate a title on an application form (such as Ms.,
Miss, Mr., or Mrs.) if the form discloses that the
designation of a title is optional. An application form
36
Federal Reserve Bulletin • January 1986
shall otherwise use only terms that are neutral as to
sex.
(4) Childbearing, childrearing. A creditor shall not
inquire about birth control practices, intentions concerning the bearing or rearing of children, or capability to bear children. A creditor may inquire about
the number and ages of an applicant's dependents or
about dependent-related financial obligations or expenditures, provided such information is requested
without regard to sex, marital status, or any other
prohibited basis.
(5) Race, color, religion, national origin. A creditor
shall not inquire about the race, color, religion, or
national origin of an applicant or any other person in
connection with a credit transaction. A creditor may
inquire about an applicant's permanent residence
and immigration status.
(e) Written applications. A creditor shall take written
applications for the types of credit covered by section
202.13(a), but need not take written applications for
other types of credit.
Section 202.6—Rules Concerning Evaluation of
Applications
(a) General rule concerning use of information. Except as otherwise provided in the act and this regulation, a creditor may consider any information obtained, so long as the information is not used to
discriminate against an applicant on a prohibited basis. 2
(b) Specific rules concerning use of information.
(1) Except as provided in the act and this regulation,
a creditor shall not take a prohibited basis into
account in any system of evaluating the creditworthiness of applicants.
(2) Age, receipt of public assistance.
(i) Except as permitted in this paragraph, a creditor shall not take into account an applicant's age
(provided that the applicant has the capacity to
enter into a binding contract) or whether an
applicant's income derives from any public assistance program.
(ii) In an empirically derived, demonstrably and
statistically sound, credit scoring system, a creditor may use an applicant's age as a predictive
variable, provided that the age of an elderly
applicant is not assigned a negative factor or
value.
(iii) In a judgmental system of evaluating credit2. The legislative history of the act indicates that the Congress
intended an "effects test" concept, as outlined in the employment
field by the Supreme Court in the cases of Griggs v. Duke Power Co.,
401 U.S. 424 (1971), and Albemarle Paper Co. v. Moody, 422 U.S. 405
(1975), to be applicable to a creditor's determination of creditworthiness.
worthiness, a creditor may consider an applicant's age or whether an applicant's income derives from any public assistance program only for
the purpose of determining a pertinent element of
creditworthiness.
(iv) In any system of evaluating creditworthiness,
a creditor may consider the age of an elderly
applicant when such age is used to favor the
elderly applicant in extending credit.
(3) Childbearing, childrearing. In evaluating creditworthiness, a creditor shall not use assumptions or
aggregate statistics relating to the likelihood that any
group of persons will bear or rear children or will,
for that reason, receive diminished or interrupted
income in the future.
(4) Telephone listing. A creditor shall not take into
account whether there is a telephone listing in the
name of an applicant for consumer credit, but may
take into account whether there is a telephone in the
applicant's residence.
(5) Income. A creditor shall not discount or exclude
from consideration the income of an applicant or the
spouse of an applicant because of a prohibited basis
or because the income is derived from part-time
employment or is an annuity, pension, or other
retirement benefit; a creditor may consider the
amount and probable continuance of any income in
evaluating an applicant's creditworthiness. When an
applicant relies on alimony, child support, or separate maintenance payments in applying for credit,
the creditor shall consider such payments as income
to the extent that they are likely to be consistently
made.
(6) Credit history. To the extent that a creditor
considers credit history in evaluating the creditworthiness of similarly qualified applicants for a similar
.type and amount of credit, in evaluating an applicant's creditworthiness a creditor shall consider:
(i) The credit history, when available, of accounts
designated as accounts that the applicant and the
applicant's spouse are permitted to use or for
which both are contractually liable;
(ii) On the applicant's request, any information
the applicant may present that tends to indicate
that the credit history being considered by the
creditor does not accurately reflect the applicant's
creditworthiness; and
(iii) On the applicant's request, the credit history,
when available, of any account reported in the
name of the applicant's spouse or former spouse
that the applicant can demonstrate accurately
reflects the applicant's creditworthiness.
(7) Immigration status. A creditor may consider
whether an applicant is a permanent resident of the
United States, the applicant's immigration status,
and any additional information that may be neces-
Legal Developments
sary to ascertain the creditor's rights and remedies
regarding repayment,
(c) State property laws. A creditor's consideration or
application of state property laws directly or indirectly
affecting creditworthiness does not constitute unlawful
discrimination for the purposes of the act or this
regulation.
Section 202.7—Rules Concerning Extensions of
Credit
(a) Individual accounts. A creditor shall not refuse to
grant an individual account to a creditworthy applicant
on the basis of sex, marital status, or any other
prohibited basis.
(b) Designation of name. A creditor shall not refuse to
allow an applicant to open or maintain an account in a
birth-given first name and a surname that is the
applicant's birth-given surname, the spouse's surname, or a combined surname.
(c) Action concerning existing open-end accounts.
(1) Limitations. In the absence of evidence of the
applicant's inability or unwillingness to repay, a
creditor shall not take any of the following actions
regarding an applicant who is contractually liable on
an existing open-end account on the basis of the
applicant's reaching a certain age or retiring or on
the basis of a change in the applicant's name or
marital status:
(i) Require a reapplication, except as provided in
paragraph (c)(2) of this section;
(ii) Change the terms of the account; or
(iii) Terminate the account.
(2) Requiring reapplication. A creditor may require
a reapplication for an open-end account on the basis
of a change in the marital status of an applicant who
is contractually liable if the credit granted was based
in whole or in part on income of the applicant's
spouse and if information available to the creditor
indicates that the applicant's income may not support the amount of credit currently available.
(d) Signature of spouse or other person.
(1) Rule for qualified applicant. Except as provided
in this paragraph, a creditor shall not require the
signature of an applicant's spouse or other person,
other than a joint applicant, on any credit instrument
if the applicant qualifies under the creditor's standards of creditworthiness for the amount and terms
of the credit requested.
(2) Unsecured credit. If an applicant requests unsecured credit and relies in part upon property that the
applicant owns jointly with another person to satisfy
the creditor's standards of creditworthiness, the
creditor may require the signature of the other
person only on the instrument(s) necessary, or reasonably believed by the creditor to be necessary,
37
under the law of the state in which the property is
located, to enable the creditor to reach the property
being relied upon in the event of the death or default
of the applicant.
(3) Unsecured credit — community property states.
If a married applicant requests unsecured credit and
resides in a community property state, or if the
property upon which the applicant is relying is
located in such a state, a creditor may require the
signature of the spouse on any instrument necessary, or reasonably believed by the creditor to be
necessary, under applicable state law to make the
community property available to satisfy the debt in
the event of default if:
(i) Applicable state law denies the applicant power
to manage or control sufficient community property to qualify for the amount of credit requested
under the creditor's standards of creditworthiness; and
(ii) The applicant does not have sufficient separate
property to qualify for the amount of credit requested without regard to community property.
(4) Secured credit. If an applicant requests secured
credit, a creditor may require the signature of the
applicant's spouse or other person on any instrument necessary, or reasonably believed by the creditor to be necessary, under applicable state law to
make the property being offered as security available to satisfy the debt in the event of default, for
example, an instrument to create a valid lien, pass
clear title, waive inchoate rights or assign earnings.
(5) Additional parties. If, under a creditor's standards of creditworthiness, the personal liability of
an additional party is necessary to support the
extension of the credit requested, a creditor may
request a cosigner, guarantor, or the like. The
applicant's spouse may serve as an additional party,
but the creditor shall not require that the spouse be
the additional party.
(6) Rights of additional parties. A creditor shall not
impose requirements upon an additional party that
the creditor is prohibited from imposing upon an
applicant under this section.
(e) Insurance. A creditor shall not refuse to extend
credit and shall not terminate an account because
credit life, health, accident, disability, or other creditrelated insurance is not available on the basis of the
applicant's age.
Section 202.8—Special Purpose Credit
Programs
(a) Standards for programs. Subject to the provisions
of paragraph (b) of this section, the act and this
regulation permit a creditor to extend special purpose
38
Federal Reserve Bulletin • January 1986
credit to applicants who meet eligibility requirements
under the following types of credit programs:
(1) Any credit assistance program expressly authorized by federal or state law for the benefit of an
economically disadvantaged class of persons;
(2) Any credit assistance program offered by a notfor-profit organization, as defined under section
501(c) of the Internal Revenue Code of 1954, as
amended, for the benefit of its members or for the
benefit of an economically disadvantaged class of
persons; or
(3) Any special purpose credit program offered by a
for-profit organization or in which such an organization participates to meet special social needs, if:
(i) The program is established and administered
pursuant to a written plan that identifies the class
of persons that the program is designed to benefit
and sets forth the procedures and standards for
extending credit pursuant to the program; and
(ii) The program is established and administered
to extend credit to a class of persons who, under
the organization's customary standards of creditworthiness, probably would not receive such
credit or would receive it on less favorable terms
than are ordinarily available to other applicants
applying to the organization for a similar type and
amount of credit.
(b) Rules in other sections.
(1) General applicability. All of the provisions of
this regulation apply to each of the special purpose
credit programs described in paragraph (a) of this
section unless modified by this section.
(2) Common characteristics. A program described
in paragraph (a)(2) or (a)(3) of this section qualifies
as a special purpose credit program only if it was
established and is administered so as not to discriminate against an applicant on any prohibited basis;
however, all program participants may be required
to share one or more common characteristics (for
example, race, national origin, or sex) so long as the
program was not established and is not administered
with the purpose of evading the requirements of the
act or this regulation.
(c) Special rule concerning requests and use of information. If participants in a special purpose credit
program described in paragraph (a) of this section are
required to possess one or more common characteristics (for example, race, national origin, or sex) and if
the program otherwise satisfies the requirements of
paragraph (a), a creditor may request and consider
information regarding the common characteristic(s) in
determining the applicant's eligibility for the program.
(d) Special rule in the case of financial need. If
financial need is one of the criteria under a special
purpose program described in paragraph (a) of this
section, the creditor may request and consider, in
determining an applicant's eligibility for the program,
information regarding the applicant's marital status;
alimony, child support, and separate maintenance
income; and the spouse's financial resources. In addition, a creditor may obtain the signature of an applicant's spouse or other person on an application or
credit instrument relating to a special purpose program
if the signature is required by federal or state law.
Section 202.9—Notifications
(a) Notification of action taken, ECOA notice, and
statement of specific reasons.
(1) When notification is required. A creditor shall
notify an applicant of action taken within:
(i) 30 days after receiving a completed application
concerning the creditor's approval of, counteroffer to, or adverse action on the application;
(ii) 30 days after taking adverse action on an
incomplete application, unless notice is provided
in accordance with paragraph (c) of this section;
(iii) 30 days after taking adverse action on an
existing account; or
(iv) 90 days after notifying the applicant of a
counteroffer if the applicant does not expressly
accept or use the credit offered.
(2) Content of notification when adverse action is
taken. A notification given to an applicant when
adverse action is taken shall be in writing and shall
contain: a statement of the action taken; the name
and address of the creditor; a statement of the
provisions of section 701(a) of the act; the name and
address of the federal agency that administers compliance with respect to the creditor; and either:
(i) A statement of specific reasons for the action
taken; or
(ii) A disclosure of the applicant's right to a
statement of specific reasons within 30 days, if the
statement is requested within 60 days of the
creditor's notification. The disclosure shall include the name, address, and telephone number of
the person or office from which the statement of
reasons can be obtained. If the creditor chooses to
provide the reasons orally, the creditor shall also
disclose the applicant's right to have them confirmed in writing within 30 days of receiving a
written request for confirmation from the applicant.
(b) Form of ECOA notice and statement of specific
reasons.
(1) ECOA notice. To satisfy the disclosure requirements of paragraph (a)(2) of this section regarding
section 701(a) of the act, the creditor shall provide a
notice that is substantially similar to the following:
The federal Equal Credit Opportunity Act prohibits
creditors from discriminating against credit applicants
Legal Developments
on the basis of race, color, religion, national origin,
sex, marital status, age (provided the applicant has the
capacity to enter into a binding contract); because all
or part of the applicant's income derives from any
public assistance program; or because the applicant
has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that
administers compliance with this law concerning this
creditor is (name and address as specified by the
appropriate agency listed in Appendix A of this regulation).
(2) Statement of specific reasons. The statement of
reasons for adverse action required by paragraph
(a)(2)(i) of this section must be specific and indicate
the principal reason(s) for the adverse action. Statements that the adverse action was based on the
creditor's internal standards or policies or that the
applicant failed to achieve the qualifying score on
the creditor's credit scoring system are insufficient.
(c) Incomplete
applications.
(1) Notice alternatives. Within 30 days after receiving an application that is incomplete regarding matters that an applicant can complete, the creditor
shall notify the applicant either:
(i) Of action taken, in accordance with paragraph
(a) of this section; or
(ii) Of the incompleteness, in accordance with
paragraph (c)(2) of this section.
(2) Notice of incompleteness. If additional information is needed from an applicant, the creditor shall
send a written notice to the applicant specifying the
information needed, designating a reasonable period
of time for the applicant to provide the information,
and informing the applicant that failure to provide
the information requested will result in no further
consideration being given to the application. The
creditor shall have no further obligation under this
section if the applicant fails to respond within the
designated time period. If the applicant supplies the
requested information within the designated time
period, the creditor shall take action on the application and notify the applicant in accordance with
paragraph (a) of this section.
(3) Oral request for information. At its option, a
creditor may inform the applicant orally of the need
for additional information; but if the application
remains incomplete the creditor shall send a notice
in accordance with paragraph (c)(1) of this section.
(d) Oral notifications by small-volume creditors. The
requirements of this section (including statements of
specific reasons) are satisfied by oral notifications in
the case of any creditor that did not receive more than
150 applications during the preceding calendar year.
(e) Withdrawal of approved application. When an
applicant submits an application and the parties contemplate that the applicant will inquire about its status,
39
if the creditor approves the application and the applicant has not inquired within 30 days after applying, the
creditor may treat the application as withdrawn and
need not comply with paragraph (a)(1) of this section.
(f) Multiple applicants. When an application involves
more than one applicant, notification need only be
given to one of them, but must be given to the primary
applicant where one is readily apparent.
(g) Applications submitted through a third party.
When an application is made on behalf of an applicant
to more than one creditor and the applicant expressly
accepts or uses credit offered by one of the creditors,
notification of action taken by any of the other creditors is not required. If no credit is offered or if the
applicant does not expressly accept or use any credit
offered, each creditor taking adverse action must
comply with this section, directly or through a third
party. A notice given by a third party shall disclose the
identity of each creditor on whose behalf the notice is
given.
Section 202.10—Furnishing of Credit
Information
(a) Designation of accounts. A creditor that furnishes
credit information shall designate:
(1) Any new account to reflect the participation of
both spouses if the applicant's spouse is permitted
to use or is contractually liable on the account (other
than as a guarantor, surety, endorser, or similar
party); and
(2) Any existing account to reflect such participation, within 90 days after receiving a written request
to do so from one of the spouses.
(b) Routine reports to consumer reporting agency. If a
creditor furnishes credit information to a consumer
reporting agency concerning an account designated to
reflect the participation of both spouses, the creditor
shall furnish the information in a manner that will
enable the agency to provide access to the information
in the name of each spouse.
(c) Reporting in response to inquiry. If a creditor
furnishes credit information in response to an inquiry
concerning an account designated to reflect the participation of both spouses, the creditor shall furnish the
information in the name of the spouse about whom the
information is requested.
Section 202.11—Relation to State L a w
(a) Inconsistent state laws. Except as otherwise provided in this section, this regulation alters, affects, or
preempts only those state laws that are inconsistent
40
Federal Reserve Bulletin • January 1986
with the act and this regulation and then only to the
extent of the inconsistency. A state law is not inconsistent if it is more protective of an applicant.
(b) Preempted provisions of state law.
(1) A state law is deemed to be inconsistent with the
requirements of the act and this regulation and less
protective of an applicant within the meaning of
section 705(f) of the act to the extent that the law:
(i) Requires or permits a practice or act prohibited
by the act or this regulation;
(ii) Prohibits the individual extension of consumer
credit to both parties to a marriage if each spouse
individually and voluntarily applies for such credit;
(iii) Prohibits inquiries or collection of data required to comply with the act or this regulation;
(iv) Prohibits asking or considering age in an
empirically derived, demonstrably and statistically sound, credit scoring system to determine a
pertinent element of creditworthiness, or to favor
an elderly applicant; or
(v) Prohibits inquiries necessary to establish or
administer a special purpose credit program as
defined by section 202.8.
(2) A creditor, state, or other interested party may
request the Board to determine whether a state law
is inconsistent with the requirements of the act and
this regulation.
(c) Laws on finance charges, loan ceilings. If married
applicants voluntarily apply for and obtain individual
accounts with the same creditor, the accounts shall not
be aggregated or otherwise combined for purposes of
determining permissible finance charges or loan ceilings under any federal or state law. Permissible loan
ceiling laws shall be construed to permit each spouse
to become individually liable up to the amount of the
loan ceilings, less the amount for which the applicant
is jointly liable.
(d) State and federal laws not affected. This section
does not alter or annul any provision of state property
laws, laws relating to the disposition of decedents'
estates, or federal or state banking regulations directed
only toward insuring the solvency of financial institutions.
(e) Exemption for state-regulated
transactions.
(1) Applications. A state may apply to the Board for
an exemption from the requirements of the act and
this regulation for any class of credit transactions
within the state. The Board will grant such an
exemption if the Board determines that:
(i) The class of credit transactions is subject to
state law requirements substantially similar to the
act and this regulation or that applicants are
afforded greater protection under state law; and
(ii) There is adequate provision for state enforcement.
(2) Liability and enforcement.
(i) No exemption will extend to the civil liability
provisions of section 706 or the administrative
enforcement provisions of section 704 of the act.
(ii) After an exemption has been granted, the
requirements of the applicable state law (except
for additional requirements not imposed by federal law) will constitute the requirements of the act
and this regulation.
Section 202.12—Record Retention
(a) Retention of prohibited information. A creditor
may retain in its files information that is prohibited by
the act or this regulation in evaluating applications,
without violating the act or this regulation, if the
information was obtained:
(1) From any source prior to March 23, 1977;
(2) From consumer reporting agencies, an applicant,
or others without the specific request of the creditor; or
(3) As required to monitor compliance with the act
and this regulation or other federal or state statutes
or regulations.
(b) Preservation of records.
(1) Applications. For 25 months after the date that a
creditor notifies an applicant of action taken on an
application or of incompleteness, the creditor shall
retain in original form or a copy thereof:
(i) Any application that it receives, any information required to be obtained concerning characteristics of the applicant to monitor compliance with
the act and this regulation or other similar law,
and any other written or recorded information
used in evaluating the application and not returned to the applicant at the applicant's request;
(ii) A copy of the following documents if furnished
to the applicant in written form (or, if furnished
orally, any notation or memorandum made by the
creditor):
(A) The notification of action taken; and
(B) The statement of specific reasons for adverse action; and
(iii) Any written statement submitted by the applicant alleging a violation of the act or this regulation.
(2) Existing accounts. For 25 months after the date
that a creditor notifies an applicant of adverse action
regarding an existing account, the creditor shall
retain as to that account, in original form or a copy
thereof:
(i) Any written or recorded information concerning the adverse action; and
(ii) Any written statement submitted by the applicant alleging a violation of the act or this regulation.
Legal Developments
(3) Other applications. For 25 months after the date
that a creditor receives an application for which the
creditor is not required to comply with the notification requirements of section 202.9, the creditor shall
retain all written or recorded information in its
possession concerning the applicant, including any
notation of action taken.
(4) Enforcement proceedings and investigations. A
creditor shall retain the information specified in this
section beyond 25 months if it has actual notice that
it is under investigation or is subject to an enforcement proceeding for an alleged violation of the act or
this regulation by the Attorney General of the United States or by an enforcement agency charged with
monitoring that creditor's compliance with the act
and this regulation, or if it has been served with
notice of an action filed pursuant to section 706 of
the act and section 202.14 of this regulation. The
creditor shall retain the information until final disposition of the matter, unless an earlier time is allowed
by order of the agency or court.
Section 202.13—Information for Monitoring
Purposes
(a) Information to be requested. A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be
occupied by the applicant as a principal residence,
where the extension of credit will be secured by the
dwelling, shall request as part of the application the
following information regarding the applicant(s):
(1) Race or national origin, using the categories
American Indian or Alaskan Native; Asian or Pacific Islander; Black; White; Hispanic; Other (Specify);
(2) Sex;
(3) Marital status, using the categories married,
unmarried, and separated; and
(4) Age.
"Dwelling" means a residential structure that contains one to four units, whether or not that structure is
attached to real property. The term includes, but is not
limited to, an individual condominium or cooperative
unit, and a mobile or other manufactured home.
(b) Obtaining of information. Questions regarding
race or national origin, sex, marital status, and age
may be listed, at the creditor's option, on the application form or on a separate form that refers to the
application. The applicant(s) shall be asked but not
required to supply the requested information. If the
applicant(s) chooses not to provide the information or
any part of it, that fact shall be noted on the form. The
creditor shall then also note on the form, to the extent
possible, the race or national origin and sex of the
41
applicant(s) on the basis of visual observation or
surname.
(c) Disclosure to applicant(s). The creditor shall inform the applicant(s) that the information regarding
race or national origin, sex, marital status, and age is
being requested by the federal government for the
purpose of monitoring compliance with federal statutes that prohibit creditors from discriminating against
applicants on those bases. The creditor shall also
inform the applicant(s) that if the applicant(s) chooses
not to provide the information, the creditor is required
to note the race or national origin and sex on the basis
of visual observation or surname.
(d) Substitute monitoring program. A monitoring program required by an agency charged with administrative enforcement under section 704 of the act may be
substituted for the requirements contained in paragraphs (a), (b), and (c).
Section 202.14—Enforcement, Penalties and
Liabilities
(a) Administrative
enforcement.
(1) As set forth more fully in section 704 of the act,
administrative enforcement of the act and this regulation regarding certain creditors is assigned to the
Comptroller of the Currency, Board of Governors of
the Federal Reserve System, Board of Directors of
the Federal Deposit Insurance Corporation, Federal
Home Loan Bank Board (acting directly or through
the Federal Savings and Loan Insurance Corporation), National Credit Union Administration, Interstate Commerce Commission, Secretary of Agriculture, Farm Credit Administration, Securities and
Exchange Commission, Small Business Administration, and Secretary of Transportation.
(2) Except to the extent that administrative enforcement is specifically assigned to other authorities,
compliance with the requirements imposed under
the act and this regulation is enforced by the Federal
Trade Commission.
(b) Penalties and liabilities.
(1) Sections 706(a) and (b) and 702(g) of the act
provide that any creditor that fails to comply with a
requirement imposed by the act or this regulation is
subject to civil liability for actual and punitive
damages in individual or class actions. Pursuant tc
sections 704(b), (c), and (d) and 702(g) of the act,
violations of the act or regulation also constitute
violations of other federal laws. Liability for punitive damages is restricted to nongovernmental entities and is limited to $10,000 in individual actions
and the lesser of $500,000 or 1 percent of the
creditor's net worth in class actions. Section 706(c)
provides for equitable and declaratory relief and
section 706(d) authorizes the awarding of costs and
42
Federal Reserve Bulletin • January 1986
reasonable attorney's fees to an aggrieved applicant
in a successful action.
(2) As provided in section 706(f), a civil action under
the act or this regulation may be brought in the
appropriate United States district court without
regard to the amount in controversy or in any other
court of competent jurisdiction within two years
after the date of the occurrence of the violation, or
within one year after the commencement of an
administrative enforcement proceeding or of a civil
action brought by the Attorney General of the
United States within two years after the alleged
violation.
(3) Sections 706(g) and (h) provide that, if an agency
responsible for administrative enforcement is unable
to obtain compliance with the act or this regulation,
it may refer the matter to the Attorney General of
the United States. On referral, or whenever the
Attorney General has reason to believe that one or
more creditors are engaged in a pattern or practice
in violation of the act or this regulation, the Attorney General may bring a civil action.
(c) Failure of compliance. A creditor's failure to
comply with sections 202.6(b)(6), 202.9, 202.10, 202.12
or 202.13 is not a violation if it results from an
inadvertent error. On discovering an error under sections 202.9 and 202.10, the creditor shall correct it as
soon as possible. If a creditor inadvertently obtains the
monitoring information regarding the race or national
origin and sex of the applicant in a dwelling-related
transaction not covered by section 202.13, the creditor
may act on and retain the application without violating
the regulation.
NOTE: Appendices A, B, C, and D and Supplement I
were part of the original document but are not reprinted here.
ORDERS ISSUED UNDER BANK
HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT
of the Bank Holding Company Act of 1956, as amended ("Act"), has applied for the Board's approval
under section 3 of the Act (12 U.S.C. §1842) indirectly
to acquire all of the voting shares of Maine National
Corporation, Portland, Maine ("Maine National"),
and thereby to acquire its subsidiary bank, Maine
National Bank, Portland, Maine. 1
Notice of the applications, affording an 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 applications 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, with nine banking subsidiaries located in
Massachusetts and Connecticut, is the second largest
banking organization in New England with consolidated assets of $14.2 billion and total domestic deposits of
$9.1 billion.2 Applicant is the second largest commercial banking organization in Massachusetts, controlling 13.6 percent of the total deposits in commercial
banks in Massachusetts, and the largest commercial
banking organization in Connecticut, controlling 26.5
percent of the total deposits in commercial banks in
Connecticut. Upon acquisition of Maine National,
with consolidated assets of $664.4 million and total
deposits of $567.0 million, Applicant would control the
fourth largest commercial banking organization in
Maine and 14.0 percent of the total deposits in commercial banks in the state. In addition, Applicant
would remain the second largest commercial banking
organization in New England.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the bank
holding company's home state, 3 unless such acquisition is "specifically authorized by the statute laws of
the state in which such bank is located, by language to
that effect and not merely by implication." The statute
laws of Maine permit an out-of-state bank holding
company to acquire a bank in Maine without prior
Bank of N e w England Corporation
Boston, Massachusetts
BNE Holding Company
Boston, Massachusetts
Order Approving Formation of a Bank Holding
Company and Acquisition of a Bank Holding
Company
Bank of New England Corporation, Boston, Massachusetts, a bank holding company within the meaning
1. Applicant would effectuate its acquisition of Maine National by
merging Maine National into a wholly owned subsidiary of Applicant,
BNE Holding Company, Boston, Massachusetts ("BNE"). Accordingly, B N E Holding Company has concurrently applied for the
Board's approval under section 3(a)(1) of the Act to become a bank
holding company upon consummation of this proposal. The Board's
approval of Applicant's acquisition of Maine National will also
constitute approval of B N E Holding Company's application to become a bank holding company.
2. Banking data are as of June 30, 1985.
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. Applicant's home state is Massachusetts.
Legal Developments
consideration of the nature of the banking laws of the
acquiring company's state. 4 Applicant, an out-of-state
bank holding company within the meaning of the
Maine statute, is eligible to acquire a bank holding
company in Maine. Based on the foregoing, the Board
has determined that the proposed acquisition is expressly authorized by the statute laws of Maine and is
not barred by the Douglas Amendment. 5
The Board has considered the effects of the proposal
upon competition in the relevant banking markets in
which Applicant and Maine National compete. Since
Applicant's banking subsidiaries do not operate in
Maine, and Maine National's banking subsidiary does
not operate in Massachusetts or Connecticut, the
proposed transaction would not eliminate any significant existing competition in any relevant market.
The Board has also examined the effect of the
proposal on probable future competition in the relevant geographic markets and has examined the proposal in light of the Board's probable future competition guidelines. After consideration of these factors in
light of the specific facts of this case, the Board has
concluded that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market. In this
regard, the Board notes that there are numerous other
potential entrants into each of the markets served by
Applicant and Maine National.
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by Applicant of the Currency and Foreign Transactions Reporting Act ( " C F T R A " ) and the regulations
thereunder, 6 and the indictment of one of Applicant's
subsidiary banks in connection with such violations.
In this regard, the Board notes that Applicant brought
these matters to the attention of the appropriate supervisory authorities after the violations were discovered
through an internal audit and has cooperated fully with
law enforcement agencies. Applicant and its subsidiaries have also undertaken a comprehensive remedial
program to correct these violations and to prevent
violations from occurring in the future. Applicant has
advised the Board that it has filed corrective currency
transaction reports ( " C T R s " ) ; appointed a senior officer responsible for ensuring compliance with CFTRA
reporting requirements, including reporting for transactions aggregating over $10,000 on a daily basis;
established a Currency Control Unit to centralize the
4. Me. Rev. Stat. Ann. tit. 9-B, § 1013 sub. 2 (As amended,
February 7, 1984).
5. The Maine interstate banking statute requires the approval of the
Maine Superintendent of Banking before an out-of-state bank holding
company may acquire a Maine bank. On September 18, 1985, the
Maine Superintendent of Banking approved Applicant's acquisition of
Maine National.
6. 31 U.S.C. § 5311, et seq.; 31 C.F.R. § 103.
43
control of record keeping and filing CTRs; established
a computer program to monitor daily cash movement
throughout Applicant's organization; designated a currency transaction specialist to monitor all aspects of
CFTRA reporting; designated a specially trained teller
at each branch to handle large currency transactions;
instituted intensive internal training for bank personnel regarding compliance with the CFTRA, including
the requirement that multiple transactions from the
same customer be aggregated and reported; improved
internal audit functions and strengthened record keeping; and imposed a policy that all employees and their
immediate families are prohibited from accepting gifts
from any bank customer. The Board has also consulted with appropriate enforcement agencies with respect
to this matter, and has considered Applicant's past
record of compliance with the law.
For the foregoing reasons and based upon a review
of all of the facts of record, the Board concludes that
the managerial resources of Applicant and Maine
National are consistent with approval. The Board also
finds that the financial resources and future prospects
of Applicant and Maine National are consistent with
approval of the applications. Considerations relating
to convenience and needs of the communities to be
served also are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be
and hereby are approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order or later than three
months after the effective date of this Order, unless
such period is extended by the Board or by the Federal
Reserve Bank of Boston, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
November 18, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Brownsville Bancshares Corporation
Brownsville, T e n n e s s e e
Order Approving Merger with a Bank Holding
Company and Acquisition of a Bank
Brownsville Bancshares Corporation, Brownsville,
Tennessee, a bank holding company within the meaning of the Bank Holding Company Act ( " A c t " ) , has
44
Federal Reserve Bulletin • January 1986
applied under section 3(a)(5) of the Act, 12 U.S.C.
§ 1842(a)(5), to merge with Farmers Union Bancshares, Inc. ("Farmers"), Ripley, Tennessee, a bank
holding company by virtue of its control of Farmers
Union Bank ("Farmers Bank"), Ripley, Tennessee.
Applicant also has applied under section 3(a)(3) of the
Act, 12 U.S.C. § 1842(a)(3), to acquire at least 80
percent of Union Savings Bank ("Union Bank"),
Covington, Tennessee.
Notice of the applications, affording interested persons an opportunity 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 applications 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 controls one subsidiary bank, Brownsville Bank, Brownsville, Tennessee. Brownsville
Bank, Farmers Bank and Union Bank are the 82nd,
125th and 161st largest, respectively, of 394 commercial banks in Tennessee, 1 and control total deposits of
$64.5, $41.4, and $28.5 million, respectively. The
deposits controlled by each of these institutions represent less than one percent of the total deposits in
commercial banks in the state. Upon consummation of
the proposals, Applicant would become the 21st largest commercial banking organization in Tennessee. It
would control total deposits of $134.4 million, and
would continue to hold less than one percent of the
deposits in commercial banks in Tennessee. Accordingly, consummation of these proposals would not
have any significant adverse effects on the concentration of banking resources in Tennessee.
Brownsville Bank, Farmers Bank and Union Bank
do not compete in the same banking markets. Brownsville Bank operates in the Haywood County banking
market;2 Farmers Bank operates in the Lauderdale
County banking market; 3 and Union Bank operates in
the Covington banking market. 4 Although approval of
these proposals would not eliminate any existing competition in the Haywood County or Lauderdale County banking market, one of Applicant's principals also
owns 66.1 percent of Brighton Bancshares Corporation ("Brighton"), Brighton, Tennessee, a bank holding company with a subsidiary bank, Brighton Bank,
that operates in the Covington banking market and
competes directly with Union Bank.
1. Unless otherwise indicated, all deposit and market data are as of
December 30, 1984.
2. The Haywood County banking market consists of Haywood
County, Tennessee.
3. The Lauderdale County banking market consists of Lauderdale
County, Tennessee.
4. The Covington banking market is approximated by that portion
of Tipton County, Tennessee, not included in the Memphis banking
market.
Brighton Bank is the fourth largest of five commercial banking organizations in the Covington banking
market with total deposits of $9.8 million, which
represents 7.5 percent of the total deposits in commercial banks in the market. Union Bank is the third
largest commercial banking organization in the Covington banking market, and controls 21.7 percent of
the deposits in commercial banks in the market. Upon
consummation of these proposals, the banks controlled by Applicant's principal would become the
second largest banking organization in the Covington
banking market with total deposits of $38.3 million,
which represents 29.2 percent of the total deposits in
commercial banks in the market. The Covington banking market is highly concentrated. The percentage of
deposits held by the three largest commercial banking
organizations in the market would increase from 90.0
to 97.5 upon consummation of these proposals. The
Herfindahl-Hirschman Index ("HHI") is 2968 and
would increase by 324 points to 3292.5
One savings and loan association operates in the
Covington banking market and controls deposits of
$29.6 million. This thrift institution offers time and
savings accounts and NOW accounts and makes consumer loans. It does not, however, employ a commercial lending officer, and has not made any short-term
business loans or many commercial real estate loans.
If 50 percent of the deposits controlled by this thrift
institution were considered, the market HHI would be
2499 and would increase by 263 points to 2762 upon
consummation of these proposals. The percentage of
deposits held by the three largest firms in the market
would increase from 80.9 to 87.6.
Applicant's principal and the members of his family
have entered into an agreement to sell their interests in
Brighton. Applicant has committed that the present
proposals will not be consummated until a change in
control involving Brighton has been completed. Based
upon the facts of record, including this commitment,
the Board concludes that consummation of these proposals would have no significant adverse effects upon
existing competition in the Covington market or any
other relevant market.
The Board has considered the effects of these proposals on probable future competition in the Covington, Haywood County and Lauderdale County banking markets in light of its proposed guidelines for
assessing the competitive effects of market extension
5. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (1984), a market in which the post-merger
HHI is above 1800 is considered highly concentrated. Where the
merger increases the HHI by more than 100 points and the postmerger HHI substantially exceeds 1800, only in extraordinary cases
will mitigating factors establish that the merger is not likely substantially to lessen competition.
Legal Developments
mergers and acquisitions. 6 In evaluating the effects of
a proposed merger upon probable future competition,
the Board considers market concentration, the number
of probable future entrants into the market, the size of
the bank to be acquired and the attractiveness of the
market for entry on a de novo or foothold basis absent
approval of the acquisition.
The Board has considered these factors in the
context of the specific facts of this case. Based on the
size of each of these markets and the number of
potential entrants into each of the markets, the proposed transactions do not require extensive analysis
under the Board's proposed guidelines. The Board
concludes that consummation of these proposals
would not have any significant adverse effects on
probable future competition in any relevant market.
The Board also has analyzed the financial and
managerial resources and future prospects of Applicant, Farmers, their respective subsidiary banks, and
Union Bank. The Board has indicated and continues to
believe that capital adequacy is an especially important factor in the analysis of bank holding company
proposals, particularly in transactions where a significant acquisition is involved. 7 Upon consummation of
these proposals, Applicant's consolidated total and
tangible primary capital ratios would be below the
minimum levels under the Board's capital adequacy
guidelines. 8
In its assessment of Applicant's capital adequacy,
the Board has considered several factors that indicate
an acceptable capital position for Applicant, including
both the fact that Brownsville Bank owns certain
marketable common stock and carries that stock on its
books at substantially below current market value and
the fact that two of the banks in the proposed transactions are carried below book value. Consideration of
these factors indicates that the capital position of the
organization is stronger than that suggested by the
ratios. In addition, the Board has approved applications where, as here, the Board is able to determine
through projected earnings that an applicant would
achieve an acceptable tangible primary capital ratio
within a short period of time. 9
6. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). While the proposed policy statement has not
been approved by the Board, the Board is using the policy guidelines
as part of its analysis of the effect of a proposal on probable future
competition.
7. See, Citizens Financial Corporation, 71 FEDERAL RESERVE
BULLETIN 5 8 4 ( 1 9 8 5 ) .
8. Under the Board's Capital Adequacy Guidelines, the minimum
ratio of primary capital to total assets is 5.5 percent and the minimum
ratio of total capital to total assets is 6 percent. Capital Adequacy
Guidelines, 50 Federal Register 16,057 (1985).
9. Security Richland Bancorporation, 70 FEDERAL RESERVE BULLETIN 6 5 5 ( 1 9 8 4 ) .
45
Applicant will incur additional debt as a result of
these proposals. It appears from the facts of record
that Applicant is capable of improving its capital
ratios, servicing its debt and serving as a source of
strength to its subsidiaries.
Based upon all of the facts of record, the Board has
determined that banking factors are consistent with
approval of these applications. Considerations relating
to the convenience and needs of the communities to be
served also are consistent with approval.
Based upon the foregoing and other facts of record,
the Board has determined that these proposals are in
the public interest and that the applications should be
approved. Accordingly, the applications are approved
for the reasons summarized above. The transactions
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of St.
Louis, pursuant to delegated authority.
By order of the Board of Governors, effective
November 12, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, and Rice. Absent and not voting: Governors
Wallich and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Croesus Partners I, Inc.
Chicago, Illinois
Order Denying Formation of a Bank Holding
Company
Croesus Partners I, Inc., Chicago, Illinois, has applied
for the Board's approval pursuant to section 3(a)(1) of
the Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) ( " A c t " ) to become a bank holding company by acquiring all of the voting shares of LaGrange
Bank and Trust Company, LaGrange, Illinois ("LaGrange Bank"), and 98 percent of the voting shares of
First Burlington Bank of Willowbrook, Willowbrook,
Illinois ("Burlington Bank") (collectively, "Banks").
Notice of the application, affording interested persons an opportunity 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.
Applicant, a non-operating corporation with no subsidiaries, was organized under the laws of Delaware
46
Federal Reserve Bulletin • January 1986
for the purpose of becoming a bank holding company
by acquiring LaGrange Bank and Burlington Bank,
which hold aggregate deposits of $172.3 million and
$30.6 million, respectively. 1 Upon acquisition of
Banks, Applicant would control the 54th largest commercial banking organization in Illinois and approximately 0.2 percent of the total deposits in commercial
banks in the state. Consummation of this proposal
would not have a significant effect on the concentration of banking resources in Illinois.
Both LaGrange Bank and Burlington Bank compete
in the Chicago banking market. 2 LaGrange Bank is the
54th largest and Burlington Bank is the 280th largest of
389 commercial banking organizations in the market.
Upon consummation of this proposal, Applicant
would control 0.3 percent of the total deposits in
commercial banks in the relevant market. Consummation of this transaction would not result in any adverse
effects upon competition or increase the concentration
of banking resources in any relevant market.
The Board has indicated on previous occasions that
a bank holding company should serve as a source of
financial strength to its subsidiary banks, and that the
Board would closely examine the condition of an
applicant in each case with this consideration in mind.
The Board has repeatedly expressed its view that it is
essential for bank holding companies to have sufficient
primary capital to carry out their responsibilities and
has stated that significant decreases in an institution's
capital position would be grounds for denial of a
proposal.3 In the International Lending Supervision
Act of 1983, Congress recognized the importance of
capital adequacy to the banking system and authorized
the federal banking agencies to establish minimum
levels of capital for banking institutions and to take
other measures to ensure that banking organizations
achieve and maintain adequate capital.4
In order to effect the proposal, Applicant proposes
to incur a substantial amount of debt, resulting in a
debt to equity ratio level significantly above that which
is normally acceptable for bank holding company
formations of this size. LaGrange Bank and Burlington
Bank are each now well capitalized, as is their current
parent bank holding company, First Burlington Corporation, with primary capital ratios of at least 6.4
percent. Upon consummation of this proposal, however, the stated primary capital ratio of the resulting
organization would decline substantially from that of
First Burlington to 5.6 percent, and its total capital to
total assets ratio would be 6.5 percent, levels considered marginal under the Board's Capital Adequacy
Guidelines.5 Applicant's capital ratio on a tangible
basis would be 5.4 percent, which is below the minimum level specified in the Capital Adequacy Guidelines for primary capital. The Board views the highly
leveraged and marginally capitalized position of Applicant, particularly in light of the sharp decline in capital
position of the consolidated organization, as significant factors that reflect adversely on this proposal.
The Board's concern about Applicant's marginal
capital structure and high debt level, and the resulting
diminution in its ability to serve as a source of strength
to its subsidiary banks, is exacerbated by considerations relating to the nature and makeup of Applicant's
capital structure. In order to finance its formation,
Applicant proposes to sell $6.0 million of its voting
common stock and $5.8 million of its nonvoting preferred stock. 6 The preferred stock would represent 49
percent of Applicant's total equity. As noted, Applicant would also incur debt of $7.8 million.
The Board is of the view that a banking organization's primary capital should be comprised predominantly of common equity, rather than preferred stock
or other forms of capital, and the minimum levels of
capital specified in the Board's Capital Adequacy
Guidelines are predicated on the assumption that the
predominant portion of an institution's primary capital
will be made up of common equity.
The equity of banking organizations historically has
been predominantly in the form of common equity.
While the Board recognizes that preferred stock provides banking organizations with the flexibility of an
additional capital instrument to attain minimum and
adequate levels of primary capital, the Board believes
that the amount of preferred stock as a percentage of
total primary capital must be kept within reasonable
limits. The Board has recently requested public comment on a proposal to limit the amount of mandatory
convertible instruments, perpetual preferred stock,
and perpetual debt that could qualify as primary
capital for bank holding companies and state member
banks to 25 percent of total primary capital. 50 Federal
Register 47,754 (1985).
In the Board's view, reliance on preferred stock to
meet the minimum primary capital guidelines to the
extent presented in this proposal diminishes a banking
5. Capital Adequacy
1. Unless otherwise indicated, banking data are as of December 31,
1984.
2. The Chicago banking market is approximated by Cook, Lake and
DuPage Counties, all in Illinois.
3 . Security
Banks
of Montana,
7 1 F E D E R A L RESERVE B U L L E T I N
246 (1985).
4. 12 U.S.C. § 3907(a) (West Supp. 1984).
Guidelines,
50 Federal Register
16,057(1985),
7 1 FEDERAL RESERVE B U L L E T I N 4 4 5 ( 1 9 8 5 ) .
6. Applicant's preferred stock would be purchased by three bank
holding companies, American National Corporation ("ANC"), Harris
Bancorp, and Unibancorp, all of which are headquartered in Chicago,
Illinois. ANC, Harris, and Unibancorp would own nonvoting, nonconvertible preferred stock equal, respectively, to 17.9 percent, 17.9
percent, and 13.2 percent of Applicant's total equity.
Legal Developments
organization's financial flexibility and its ability to
serve as a source of financial strength to deal with
unanticipated financial problems. Undue reliance on
preferred stock in the makeup of an institution's
capital base also impairs its ability to retain earnings to
provide for future growth. In this case in particular,
Applicant's high level of preferred stock and high debt
would limit, if not eliminate, Applicant's ability to
issue new capital as may be needed to provide for an
unanticipated deterioration in its capital base or future
growth.
While common shareholders benefit from the capital
appreciation of a company, as well as from dividends,
preferred shareholders derive benefits solely from a
company's dividend stream. Because of this and considerations relating to its reputation and financial
integrity, it is more difficult for a banking organization
to pass preferred stock dividends than common stock
dividends. The Board notes that if cash dividends on
the preferred stock are passed, Applicant must issue
additional preferred stock in lieu of the cash dividend.
This, in effect, further diminishes Applicant's financial
flexibility by increasing the demands on its future
income stream.
In sum, it is the Board's judgment that Applicant's
excessive reliance on preferred stock to meet minimum capital requirements, coupled with its marginal
capital position and high leverage, indicate that Applicant would not be capable of maintaining an adequate
level of capital as required by sound banking practice
and the International Lending Supervision Act and
would not have sufficient financial flexibility to serve
as a source of financial strength to its subsidiary banks
in the future. Accordingly, based on the record in this
case, the Board concludes that considerations relating
to Applicant's financial resources and future prospects
warrant denial of this application. Since Applicant
proposes no changes in Banks' services, convenience
and needs factors lend no weight toward approval of
the application.
On the basis of all the facts of record, it is the
Board's judgment that approval of the application
would not be in the public interest and that the
application should be denied. Accordingly, the application is denied for the reasons summarized above.
By order of the Board of Governors, effective
November 27, 1985.
Voting for this action: Chairman Volcker and Governors
Partee and Rice. Voting against this action: Governor Seger.
Abstaining from this action: Governor Martin. Absent and
not voting: Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Dissenting
Statement
of Governor
49
Seger
I agree that it is essential for a bank holding company
to have sufficient primary capital to serve as a source
of financial strength to its subsidiary banks. However,
I do not share the majority's concern about the extent
to which this Applicant relies on preferred stock to
meet its capital requirements. These are changing
times in the banking industry, and it is my view that
the Board should permit bank holding companies a
greater degree of flexibility in issuing capital instruments, including preferred stock, to meet their capital
adequacy requirements.
It is clear that the preferred stock in this case meets
the definition of primary capital as well as equity
capital. Moreover, in this case, I believe that the
preferred stock serves essentially the same functions
as the common stock. In the event of default both the
preferred and common equity represent ownership
interests and function as a cushion to absorb losses
and protect the liability holders. Further, in the event
that cash dividends are not paid preferred stock dividends would be paid instead of cumulating cash dividends. Accordingly, I do not share the majority's
concern with respect to the relationship between the
amount of preferred and common stock. Therefore, in
my view, Applicant's proposed capital structure is
sound, and since its primary capital clearly meets the
minimum level specified in the Board's Capital Adequacy Guidelines, I would approve the application.
November 27, 1985
Fifth Third Bancorp
Cincinnati, Ohio
American Bancorp, Inc.
Newport, Kentucky
Order Approving Merger of Bank Holding
Companies
Fifth Third Bancorp, Cincinnati, Ohio, a bank holding
company within the meaning of the Bank Holding
Company Act (12 U.S.C. § 1841 et seq.) ("Act"), has
applied for the Board's approval under section 3(a)(5)
of the Act (12 U.S.C. § 1842(a)(5)) to acquire American Bancorp, Inc. ("American"), Newport, Kentucky, through a merger of American with and into
Applicant. As a result of this acquisition, Applicant
would acquire indirectly American's subsidiary bank,
American National Bank ("Bank"), also of Newport,
Kentucky.
48
Federal Reserve Bulletin • January 1986
Notice of the application, affording an 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.
Applicant is the eighth largest commercial banking
organization in Ohio. Its eight subsidiary banks control deposits of approximately $1.7 billion, representing 3.1 percent of the total deposits in commercial
banks in Ohio.1 Applicant also controls directly two
nonbank subsidiaries engaged in personal property
leasing and the underwriting of credit life and credit
accident and health insurance directly related to extensions of credit by the bank holding company system.
American is the forty-eighth largest commercial banking organization in Kentucky. Its sole subsidiary,
Bank, controls deposits of approximately $87.4 million, representing less than 1 percent of the total
deposits in commercial banks in Kentucky.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 2 unless such acquisition is "specifically authorized by the statute laws of
the State in which such bank is located, by language to
that effect and not merely by implication."
Effective July 13, 1984, the statute laws of the
Commonwealth of Kentucky authorized any bank
holding company having its principal place of business
in a state which is contiguous to Kentucky to acquire
control of a Kentucky bank or bank holding company,
if the state where that bank holding company is located
authorizes the acquisition of a bank or bank holding
company in that state by a Kentucky bank holding
company under conditions "substantially no more
restrictive" than those imposed by the Kentucky
statute. 3
Effective October 17, 1985, the statute laws of Ohio
authorized a bank or bank holding company with its
principal place of business in another state to charter
or otherwise acquire an Ohio bank or bank holding
company, only if the Ohio Superintendent of Banks
determines that the laws of such other state permit an
Ohio bank or bank holding company to acquire a bank
or bank holding company in that state "on terms that
are, on the whole, substantially no more restrictive"
1. Statewide deposit data are as of March 31, 1985.
2. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or on the date on which the
company became a bank holding company, whichever is later.
3. Ky. Rev. Stat. Ann. § 287.900 (Bobbs-Merrill Supp. 1984).
than those established under Ohio law. 4 Until October
1988, interstate acquisitions are authorized only from a
limited number of states, including Kentucky. The
Ohio Superintendent of Banks and the Kentucky Commissioner of Financial Institutions, in a joint "Determination of Reciprocity," have concluded that the
interstate banking statutes of Ohio and Kentucky are
reciprocal and authorize banking acquisitions between
the two states.
Upon independent review, the Board concludes that
the two statutes are reciprocal and that Kentucky has
by statute expressly authorized an Ohio bank holding
company, such as Applicant, to acquire a Kentucky
bank or bank holding company, such as American.
Accordingly, the Board concludes that approval of
Applicant's proposal to acquire indirectly a bank in
Kentucky is not barred by the Douglas Amendment.
Fifth Third Bank, Applicant's principal bank subsidiary, and Bank compete directly in the Cincinnati,
Ohio banking market. 5 Fifth Third Bank is the third
largest banking organization in the Cincinnati market,
controlling 17.1 percent of total deposits in commercial banks in the market. Bank, with deposits of $87.4
million, is the fourteenth largest banking organization
in the Cincinnati market, controlling 1.3 percent of the
deposits in commercial banks in the market. Upon
acquisition of Bank, Applicant would remain the third
largest banking organization in the Cincinnati market,
and would control 18.4 percent of the deposits in
commercial banks in the market. The Cincinnati banking market is moderately concentrated with a Herfindahl-Hirschman Index ("HHI") of 1272, which would
increase by only 43 points to 1315 upon consummation
of the transaction. 6
Although the proposed acquisition would eliminate
some existing competition between Applicant and
Bank, the Board notes that the Cincinnati market
would not become highly concentrated as a result of
this transaction. Moreover, over 40 other commercial
banking organizations would remain in the market as
alternative providers of banking services. In view of
these facts, the Board has determined that consummation of the proposed transaction is not likely to have a
4. Ohio Sub. H. Bill No. 102 (July 18, 1985) to be codified at Ohio
Rev. Code Ann. §§ 1101.05, 1101.051 (Page 19 ).
5. The Cincinnati banking market is approximated by all of Hamilton (Cincinnati) and Clermont Counties, and portions of Warren and
Butler Counties, in Ohio; Boone, Campbell, Kenton, Grant and
Pendleton Counties in Kentucky; and Dearborn County, Indiana.
Market data are as of June 30, 1984.
6. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (1984)), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated,
and the Department is likely to challenge a merger that increases the
HHI by more than 100 points, unless other facts of record indicated
that the merger is not likely substantially to lessen competition.
The Department has not indicated any objection to this proposal.
Legal Developments
significant adverse effect on existing competition in
the Cincinnati banking market.
The Board has also examined the effect of the
proposal on probable future competition in the relevant geographic markets and has examined the proposal in light of the Board's probable future competition guidelines.7 After consideration of these factors in
light of the specific facts of this case, the Board has
concluded that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market. In this
regard, the Board notes that there are numerous other
potential out-of-state entrants into the Ohio markets
served by Applicant.
The financial and managerial resources and future
prospects of Applicant, American, and their subsidiaries are considered satisfactory. Considerations relating to the convenience and needs of the communities
to be served are also consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that consummation of the proposed acquisition would be in the public interest and
that the application should be approved. Accordingly,
the application is approved for the reasons summarized above. 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 Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 25, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
First Vermont Financial Corporation
Brattleboro, Vermont
Order Approving Merger of Bank Holding
Companies
First Vermont Financial Corporation, Brattleboro,
Vermont, a bank holding company within the meaning
7. See the "Proposed Policy Statement of the Board of Governors
of the Federal Reserve System for Assessing Competitive Factors
Under the Bank Merger Act and the Bank Holding Company Act." 47
Federal Register 9017 (March 3, 1982). Although the proposed Policy
Statement has not been approved by the Board, the Board has applied
the criteria therein in its analysis of the effects of a proposal on
probable future competition.
49
of the Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ("Act"), has applied for the Board's approval
under section 3(a)(5) of the Act (12 U.S.C.
§ 1842(a)(5)) to merge with BANKNORTH GROUP,
INC., St. Albans, Vermont ("BANKNORTH"), and
thereby indirectly to acquire BANKNORTH's subsidiary bank, Franklin-Lamoille Bank, St. Albans, Vermont ("Bank").
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.
Applicant is the fifth largest banking organization in
Vermont with one subsidiary bank that controls total
deposits of $379.6 million, representing 10.1 percent of
the total deposits in commercial banks in the state. 1
BANKNORTH is the eighth largest banking organization in Vermont, with one banking subsidiary that
controls total deposits of $159.7 million, representing
4.2 percent of the total deposits in commercial banks
in the state. Upon consummation of the proposed
acquisition, Applicant's share of the total deposits in
commercial banks in the state would increase to 14.3
percent, and Applicant would become the second
largest of 22 commercial banking organizations in
Vermont.
The Board has carefully considered the effects of
this proposal on statewide banking structure and upon
competition in the relevant markets. The proposal
involves a combination of sizeable commercial banking organizations that are among the leading banking
organizations in the state. However, Vermont is
viewed as only moderately concentrated in terms of
banking resources, with the four largest banking organizations controlling 52.3 percent of total statewide
deposits in commercial banks. Upon consummation,
the state would remain moderately concentrated, with
a four-firm concentration ratio of 56.1 percent. In
addition, a number of other large bank holding companies, which are active competitors throughout the
state, would remain upon consummation of this proposal. On the basis of these considerations, the Board
concludes that the proposed merger would have no
substantial adverse effects on the concentration of
banking resources in Vermont.
Applicant and BANKNORTH do not operate subsidiary banks in the same banking markets. Therefore,
consummation of the proposal would not eliminate
existing competition in any relevant geographic market.
1. Banking data are as of June 30, 1985.
50
Federal Reserve Bulletin • January 1986
The Board has considered the effect of the proposed
merger on probable future competition and has examined the proposal in light of its proposed guidelines for
assessing the competitive effects of market extension
mergers and acquisitions. 2 The Board concludes that
consummation of this proposal would not have any
significant adverse effect on probable future competition in any relevant market. BANKNORTH currently
operates in the Burlington, St. Albans, and StoweMorristown banking markets. 3 There are numerous
potential entrants into the St. Albans and StoweMorristown banking markets, and BANKNORTH is
not considered a market leader in the Burlington
banking market.
The financial and managerial resources and future
prospects of Applicant, BANKNORTH, and their
subsidiaries are considered satisfactory and consistent
with approval. Considerations relating to the convenience and needs of the communities to be served also
are consistent with approval. Accordingly, it is the
Board's judgment that the proposed transaction would
be in the public interest and that the application should
be approved.
Based on the foregoing and other facts of record, the
application is approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 29, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
2. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). While the proposed policy statement
has not been approved by the Board, the Board is using the policy
guidelines as part of its analysis of the effect of a proposal on probable
future competition.
3. The Burlington banking market is approximated by the Burlington Ranally Metro Area, and the towns of Belvidere, Bolton, Buel's
Gore, Cambridge, Fletcher, Grand Isle, Huntington, Isle La Motte,
Monkton, Starksboro, Underhill, Waterville and Westford, all in
Vermont. The St. Albans banking market is approximated by Franklin
County, Vermont, except the towns of Averys Gore, Berkshire,
Fletcher, Montgomery and Richford. The Stowe-Morristown banking
market is approximated by Lamoille County. Vermont, except the
towns of Belvidere, Cambridge and Waterville.
First Wisconsin Corporation
Milwaukee, Wisconsin
F.W.S.F. Corporation
Milwaukee, Wisconsin
Order Approving Formation of a Bank Holding
Company and Acquisition of Banks
First Wisconsin Corporation ('Applicant"), Milwaukee, Wisconsin, 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
Security Financial Services, Inc. ("Company"), Sheboygan, Wisconsin, and thereby indirectly acquire its
six subsidiary banks: Security First National Bank of
Sheboygan, Sheboygan, Wisconsin; South West State
Bank, Sheboygan, Wisconsin; Farmers-Merchants
National Bank of Princeton, Princeton, Wisconsin;
Eldorado State Bank, Eldorado, Wisconsin; Security
Bank, Menasha, Wisconsin; and Manitowoc County
Bank, Manitowoc, Wisconsin. This transaction would
be effected by merging Company with and into
F.W.S.F. Corporation, Milwaukee, Wisconsin, a
wholly owned subsidiary of Applicant. 1
Notice of the applications, affording interested persons an opportunity 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 applications and all comments
received in light of the factors set forth in section 3(c)
of the Act.
Applicant is the largest banking organization in
Wisconsin, with 19 bank subsidiaries, controlling deposits of $4.16 billion, representing 14.2 percent of the
total deposits in commercial banks in the state. 2 Company is the ninth largest commercial banking organization in the state, with six bank subsidiaries controlling
deposits of $402.7 million, representing 1.4 percent of
the total deposits in commercial banks in the state.
Upon consummation of this proposal, Applicant
would control deposits of $4.56 billion, representing
15.6 percent of the total deposits in commercial banks
in the state. Consummation of these transactions
would not have a significant adverse effect on the
concentration of banking resources in the state.
1. F.W.S.F. has applied for the Board's approval pursuant to
section 3(a)(1) of the Act (12 U.S.C. § 1842(a)(1)) to become a bank
holding company by merging with Company.
2. All banking data are as of December 31, 1984.
Legal Developments
Applicant and Company compete in two banking
markets, Fond du Lac and Manitowoc-Two Rivers. 3
Applicant is the second largest commercial banking
organization in the Fond du Lac banking market, with
two banking subsidiaries operating in the market,
controlling deposits of $144 million, representing 25.8
percent of the deposits in commercial banking organizations in the market. Company is the eleventh largest
commercial banking organization in the market, with
one bank subsidiary, controlling $10 million in deposits, representing 1.8 percent of the total deposits in
commercial banks in the market. Upon consummation
of the proposed transactions, Applicant would remain
the second largest banking organization in the Fond du
Lac market and would control 27.6 percent of the
deposits in commercial banks in the market.
The share of deposits held by the four largest
banking organizations in the Fond du Lac banking
market is 72.8 percent, and the market's HerfindahlHirschman Index ("HHI") is 1894. Upon consummation of these transactions, the four-firm concentration
ratio would increase to 74.6 percent and the HHI
would increase 93 points to 1987.4 While the proposed
acquisition would eliminate existing competition in the
Fond du Lac market, several factors mitigate the
competitive effects of the proposal. The Board notes
that eleven banking organizations would remain in the
market upon consummation of the proposal, including
four of the larger commercial banking organizations in
the state. The Board has also considered Company's
small absolute and relative size as a mitigating factor.
Based on these and other facts of record, the Board
concludes that consummation of this proposal is not
likely to have a significant adverse effect on existing
competition in the Fond du Lac banking market.
In the Manitowoc-Two Rivers banking market, Applicant is currently the fifth largest commercial banking organization with one bank subsidiary controlling
deposits of $54.3 million, representing 10.4 percent of
the total deposits in commercial banks in the market.
3. The Fond du Lac banking market is approximated by Fond du
Lac County, Wisconsin, except for Ashford, Auburn, and Calumet
townships. The Manitowoc-Two Rivers banking market is approximated by Manitowoc County, Wisconsin, except for Eaton and
Schleswig townships.
4. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), any market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Department is likely to challenge any merger that
produces an increase in the HHI of more than 50 points unless other
factors indicate that the merger will not substantially lessen competition. The Department has informed the Board that a bank merger or
acquisition generally will not be challenged (in the absence of other
factors indicating anticompetitive effect) unless the post-merger HHI
is at least 1800 and the merger increases the HHI by at least 200
points.
The Department has not advised the Board of any objection to this
transaction.
51
Company is the second largest commercial banking
organization in the market with one bank subsidiary
controlling deposits of $95.8 million, representing 18.3
percent of the total deposits in commercial banks in
the market. Consummation of this proposal would
result in Applicant becoming the largest banking organization in the market with 28.7 percent of the total
deposits in commercial banks in the market. The HHI
would increase by 381 points to 2065 as a result of this
acquisition, making this transaction one that would be
subject to challenge under the Department of Justice
Merger Guidelines.5
Although consummation of the proposal would eliminate existing competition between Applicant and
Company in the Manitowoc-Two Rivers banking market, nine other commercial banking organizations
would remain as competitors after consummation of
the proposal. In addition, the Board has concluded
that the effect of this proposal on existing competition
in the Manitowoc-Two Rivers market is mitigated by
the extent of competition offered by thrift institutions
in the market. 6 Three thrift institutions control deposits of $133.2 million representing 20.3 percent of
deposits in the market. 7 These institutions compete
with the commercial banks in the market for transaction accounts, consumer loans and commercial loans.
In view of these facts, the Board considers the presence of thrift institutions a significant factor in assessing the competitive effects of this proposal. 8 Accordingly, in view of the competition provided by thrift
institutions and the number of competitors remaining
in the market, the Board concludes that consummation
of the proposed acquisition is not likely to have a
significant adverse effect on competition in the Manitowoc-Two Rivers banking market. Accordingly, competitive considerations are consistent with approval.
The financial and managerial resources of Applicant, Company and their respective subsidiary banks
are generally satisfactory and consistent with approval. Considerations relating to the convenience and
needs of the community to be served are also consistent with approval.
5. id.
6. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
b a n k s . NCNB
Corporation,
( 1 9 8 4 ) ; Sun
Banks,
Merchants
Inc.,
Bancorp,
7 0 F E D E R A L RESERVE B U L L E T I N
225
6 9 F E D E R A L RESERVE B U L L E T I N 9 3 4 ( 1 9 8 3 ) ;
Inc.,
69
(1983); First Tennessee National
FEDERAL
RESERVE
Corporation,
BULLETIN
865
69 FEDERAL RESERVE
BULLETIN 2 9 8 (1983).
7. As of December 31, 1984.
8. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, Applicant would
control 9.2 percent of the total deposits in the market and Company
would control 16.2 percent. Consummation of the proposal would
increase the HHI by 298 points, to 1659, and the four-firm concentration ratio would be 75.3 percent.
52
Federal Reserve Bulletin • January 1986
Based on the foregoing and other facts of record, the
Board has determined that the proposed acquisition is
in the public interest and that the applications should
be approved. Accordingly, the applications are approved for the reasons summarized above. The transactions shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Chicago, pursuant to delegated authority.
By order of the Board of Governors, effective
November 20, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Fourth Financial Corporation
Wichita, Kansas
IV Topeka Acquisition, Inc.
Wichita, Kansas
Order Approving Acquisition of a Bank
Fourth Financial Corporation, Wichita, Kansas ("Applicant"), 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 applied for
the Board's approval under section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(5)) to acquire indirectly all of the
voting shares of the First National Bank of Topeka,
Topeka, Kansas ("Bank"). This transaction would be
effected by merging Bank's parent holding company,
First Topeka Bancshares, Inc., with and into Applicant's wholly owned subsidiary, IV Topeka Acquisition, Inc.1
Notice of the applications, affording an 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 applications and all comments received
in light of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842 (c)).
1. IV Topeka Acquisition, Inc. has applied under section 3(a)(1) of
the Act (12 U.S.C. § 1842(a)(1)) for approval to become a bank
holding company by merging with First Topeka Bancshares, Inc. and
thereby indirectly to acquire Bank. IV Topeka Acquisition, Inc. is of
no significance except as a means to facilitate the acquisition of voting
shares of Bank by Applicant.
Applicant, the largest commercial banking organization in Kansas, controls eight subsidiary banks with
total domestic deposits of $1.5 billion, representing 7.9
percent of total deposits in commercial banks in the
state.2 Bank, the third largest commercial bank in
Kansas, controls $319.7 million in domestic deposits,
representing 1.6 percent of total deposits in commercial banks in the state. Upon consummation of this
transaction, Applicant's share of total deposits in
commercial banks in Kansas would increase to $1.9
billion, representing 9.5 percent of total deposits in
commercial banks in Kansas.
The Board has carefully considered the effects of the
proposal on statewide banking structure and upon
competition in the relevant markets. The proposal
involves a combination of sizeable commercial banking organizations that are among the leading banking
organizations in the state. However, Kansas is viewed
as unconcentrated in terms of banking resources, with
the four largest commercial banking organizations in
the state controlling 13.8 percent of total statewide
deposits in commercial banks. Upon consummation,
the four-firm concentration ratio would increase to
15.3 percent and the state would remain unconcentrated. Accordingly, consummation of the proposed transaction would not have a significant effect on the
concentration of banking resources in Kansas.
Applicant and Bank do not operate subsidiary banks
in the same markets. Therefore, consummation of the
proposal would not eliminate existing competition in
any geographic market.
The Board has considered the effects of this proposal on probable future competition and has examined
the proposal in light of its proposed guidelines for
assessing the competitive effects of market extension
mergers and acquisitions3 in the markets in which
Applicant or Bank competes. 4 None of these markets
is considered highly concentrated and there is no
evidence in the record that these markets are not
competitive.5 Thus, the Board concludes that consummation of this proposal would not have any significant
adverse effects on probable future competition in any
relevant market.
2. Banking data are as of December 31, 1984.
3. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). While the proposed policy statement has not
been approved by the Board, the Board is using the policy guidelines
as part of its analysis of the effect of a proposal on probable future
competition.
4. These banking markets are the Kansas City, Wichita and Topeka
banking markets.
5. The three largest commercial banking organizations in the Kansas City market control 33.6 percent of the deposits in commercial
banks in the market, while the three largest in the Wichita market
control 60.4 percent, and the three largest in the Topeka market
control 63.6 percent of the deposits in commercial banks.
Legal Developments
The financial and managerial resources of Applicant
and Bank are regarded as satisfactory and consistent
with approval of the proposal. Considerations relating
to the convenience and needs of the communities to be
served are also consistent with approval of the proposal.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3(a)(1) and 3(a)(3) should be, and hereby are,
approved for the reasons set forth above. 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 the Federal Reserve Bank of
Kansas City, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 13, 1985.
Voting for this action: Chairman Volcker and Governors
Partee, Rice and Seger. Absent and not voting: Governors
Martin and Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Hibernia Corporation
N e w Orleans, Louisiana
Order Approving Merger of Bank Holding
Companies
Hibernia Corporation, New Orleans, Louisiana, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.)
("Act"), has applied for the Board's approval under
section 3(a)(5) of the Act (12 U.S.C. § 1842(a)(5)) to
merge with Fidelity National Financial Corporation,
Baton Rouge, Louisiana ( " F N F C " ) , and thus indirectly to acquire Fidelity National Bank of Baton Rouge
("Bank").
Notice of the application, affording interested persons an opportunity 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 is the fourth largest commercial banking
organization in Louisiana, controlling three bank subsidiaries holding deposits of approximately $1.6 billion, representing 5.7 percent of total deposits in
commercial banks in the state. 1 F N F C is the sixth
largest commercial banking organization in Louisiana,
controlling one bank subsidiary holding deposits of
1. Banking data are as of June 30, 1984.
53
$601 million, representing 2.2 percent of total deposits
in commercial banks in the state. Upon consummation
of this proposal, Applicant would become the third
largest banking organization in Louisiana, controlling
approximately $2.2 billion in deposits, or 7.9 percent
of deposits in commercial banks in the state. The
Board notes that the banking structure in Louisiana is
among the least concentrated of any state, with the
three largest banking organizations controlling 20 percent of deposits in commercial banks in the state. 2 The
Board has carefully considered the effects of the
proposal on the structure of banking in Louisiana and
has concluded that consummation of this transaction
would not have a significant adverse effect on the
concentration of banking resources in the state.
Since Applicant's and F N F C ' s subsidiary banks do
not compete directly in any market, consummation of
the proposal would not eliminate any existing competition. The Board has also examined the effect of the
proposed merger on probable future competition in the
relevant geographic markets in light of the Board's
proposed market extension guidelines. 3 Applicant's
subsidiary banks operate in the New Orleans and
Alexandria banking markets and F N F C ' s subsidiary
bank operates in the Baton Rouge banking market. 4
The New Orleans and Baton Rouge banking markets
are not considered highly concentrated under the
Board's guidelines. Although the Alexandria market is
concentrated, with a three-firm concentration ratio of
74.4 percent, there are a substantial number of potential entrants with assets in excess of $500 million.
Thus, none of the markets is subject to intensive
analysis under the Board's guidelines. On the basis of
these and other facts of record, the Board has concluded that consummation of this proposal would not have
any significant adverse effects on probable future
competition in any relevant market.
The financial and managerial resources and future
prospects of Applicant, F N F C , and their subsidiary
banks are considered satisfactory and consistent with
approval. Considerations relating to the convenience
and needs of the community to be served are also
consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. This transaction shall not be
2. As of June 1, 1985.
3. See "Proposed Policy Statement of the Board of Governors of
the Federal Reserve System for Assessing Competitive Factors under
the Bank Merger Act and the Bank Holding Company Act." 47
Federal Register 9017 (1982). Although the proposed guidelines have
not been adopted by the Board, the Board is using the guidelines in its
analysis of the effects of a proposal on probable future competition.
4. The New Orleans banking market consists of the parishes of
Orleans, Jefferson, St. Bernard and St. Tammany, and the Alexandria
banking market consists of the parishes of Rapides and Grant. The
Baton Rouge banking market consists of the parishes of Ascension,
East Baton Rouge, Livingston, and West Baton Rouge.
54
Federal Reserve Bulletin • January 1986
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 5, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Merchants Bancorporation
Topeka, Kansas
Order Approving the Merger of Bank Holding
Companies
Merchants Bancorporation, Topeka, Kansas ("Merchants"), a bank holding company within the meaning
of the Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ( " A c t " ) , has applied for the Board's approval
under section 3(a)(5) of the Act (12 U.S.C.
§ 1842(a)(5)) to merge with Crown Bancshares, Inc.,
Kansas City, Missouri ("Crown"). As a result of the
transaction, Merchants would acquire 84.9 percent of
the voting shares of Crown's subsidiary bank, The
First National Bank of Lawrence, Lawrence, Kansas
("Lawrence Bank"). Together, principals of Crown
and Crown itself hold a total of approximately 31
percent of the voting shares of Merchants, and this
transaction, to a significant degree, represents a consolidation and reorganization of related companies.
Notice of the application, affording an 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).
Merchants, the 6th largest banking organization in
Kansas, controls one subsidiary bank with total deposits of $218 million, representing 1.1 percent of total
deposits in commercial banks in the state. 1 Crown, the
25th largest banking organization in Kansas, controls
one subsidiary bank with total deposits of $96.5 million, representing 0.5 percent of total deposits in
commercial banks in the state. Upon consummation of
this proposal, Merchants would become the fourth
largest commercial banking organization in Kansas,
1. All bank deposits are as of December 31, 1984.
with total deposits of $314.5 million, but it would
continue to hold less than 2 percent of deposits in
commercial banks in the state. Consummation of the
proposed transaction would not have a significant
effect on the concentration of banking resources in
Kansas.
Merchants's subsidiary bank, Merchants National
Bank of Topeka ("Merchants Bank"), and Lawrence
Bank do not compete in the same banking markets.
Merchants Bank is the 2nd largest of 16 organizations
in the Topeka, Kansas banking market, 2 with deposits
of $218 million, representing 21.3 percent of total
deposits in the commercial banks in the Topeka banking market. Lawrence Bank is the largest of four
organizations in the Lawrence, Kansas banking market, 3 with deposits of $96 million, representing 35.9
percent of total deposits in the commercial banks in
the Lawrence banking market. The principals of Merchants do not control any other commercial banks in
the Lawrence banking market. The Board concludes
that the proposed transaction would have no adverse
effect on existing or potential competition in any
relevant market.
The financial and managerial resources and future
prospects of Merchants, Crown, and their subsidiary
banks are consistent with approval. The transaction, a
reorganization of related companies rather than an
expansion by Merchants, will have an immediate
beneficial impact on the capital position of Merchants.
Considerations relating to the convenience and needs
of the communities to be served also are consistent
with approval.
Based upon the foregoing and other facts of record,
the Board has determined that the application should
be and hereby is approved for the reasons summarized
above. 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 Kansas City, acting pursuant
to delegated authority.
By order of the Board of Governors, effective
November 26, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
2. The Topeka, Kansas, banking market consists of the Topeka,
Kansas, Ranally Metro Area ("RMA").
3. The Lawrence, Kansas, banking market consists of the Lawrence, Kansas, RMA.
Legal Developments
Merchants National Corporation
Indianapolis, Indiana
Order Approving Acquisition of Bank and Bank
Holding Companies
Merchants National Corporation, Indianapolis, Indiana ("Merchants"), a bank holding company within
the meaning of the Bank Holding Company Act
(12 U.S.C. § 1841, et seq.) ("Act"), has applied for
the Board's approval under section 3(a)(5) of the Act
(12 U.S.C. § 1842(a)(5)), to merge with Farmers National Corporation, Shelbyville, Indiana ("Farmers"),
and thereby indirectly to acquire 100 percent of the
voting shares of the Farmers National Bank of Shelbyville, as well as to merge with Hancock Bancshares
Corporation, Greenfield, Indiana ("Hancock"), and
thereby indirectly to acquire 100 percent of the voting
shares of Hancock Bank & Trust, Greenfield, Indiana.
Merchants has also applied for the Board's approval
under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire all of the voting shares of the
Central National Bank of Greencastle, Greencastle,
Indiana ("Central").
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the Act
(12 U.S.C. § 1841(b)). The time for filing comments
has expired, and the Board has considered the applications and all comments received in light of the factors
set forth in section 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Merchants, the third largest banking organization in
Indiana, controls one subsidiary bank with total deposits of approximately $1.6 billion, representing 4.4
percent of total deposits in commercial banks in Indiana.1 Farmers, the 68th largest banking organization in
Indiana, has one subsidiary bank with deposits of
$106.8 million, representing 0.3 percent of total deposits in commercial banks in Indiana. Hancock, the
129th largest banking organization in Indiana, has one
subsidiary bank with total deposits of $64.7 million,
representing 0.2 percent of total deposits in commercial banks in the state. Central, the 119th largest
banking organization in Indiana, has total deposits of
$69.4 million, representing 0.2 percent of total deposits
in commercial banks in the state.
Upon consummation of these proposals, Merchants
would control total deposits of approximately $1.8
billion, representing 5.1 percent of total deposits in
commercial banks in Indiana, and Merchants would
remain the third largest banking organization in Indiana. Consummation of these transactions would not
1. Deposit data are as of December 31, 1984.
55
have a significant adverse effect on concentration of
banking resources in Indiana.
Merchants, Farmers and Hancock operate in the
Indianapolis banking market. 2 Merchants, the third
largest of 39 banking organizations in the Indianapolis
market, controls deposits of approximately $1.6 billion, representing 17.7 percent of total deposits in
commercial banks therein. Farmers is the eleventh
largest banking organization in the market, controlling
deposits of $101.2 million, representing 1.3 percent of
total deposits in commercial banks in the market.
Hancock is the sixteenth largest banking organization
in the market, controlling deposits of $64.7 million,
representing 0.8 percent of the total deposits in commercial banks in the market. Upon consummation of
the Farmers and Hancock applications, Merchants
would still rank as the third largest banking organization in the market, and it would control 19.6 percent of
total deposits in commercial banks in the market. The
share of deposits held by the four largest commercial
banking organizations in the Indianapolis market is
73.6 percent and would increase to 75.7 percent upon
consummation of this proposal. The market's Herfindahl-Hirschman Index ("HHI") is 1783 and the proposed acquisitions would increase the HHI by 72
points to 1855.3 Although approval of the Hancock and
Farmers applications would eliminate some existing
competition between Merchants and Farmers and
2. The Indianapolis banking market consists of Boone, Hamilton,
Hancock, Hendricks, Johnson, Marion, Morgan, and Shelby Counties
in Indiana.
3. Certain of Merchant's principals are affiliated with three onebank holding companies which operate in the Indianapolis market
(Alliance Bancorp, U.S. Bancorp and Farmers State Corporation).
This ownership structure may limit the competition between these
banking organizations and Merchants. If these institutions are viewed
as affiliated with Merchants, the percentage of the total deposits in
commercial banks in the market controlled by Merchants and its
affiliates after the acquisition of Farmers and Hancock would be
approximately 22.1 percent, and the four firm concentration ratio
would be 78.2 percent. The acquisition of Farmers and Hancock
would result in an increase in the HHI of 82 points to 2118 prior to any
consideration of thrift institutions. If 50 percent of the deposits held by
thrift institutions were included in the calculation of market concentration, Merchant's post acquisition share would be 19.3 and the HHI
would increase by 61 points to 1544.
Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (1984)), any market in which the post-merger
HHI is above 1800 is considered highly concentrated. In such markets, the Department is likely to challenge any merger that produces
an increase in the HHI of more than 50 points unless other factors
indicate that the merger will not substantially lessen competition.
Other factors include the post-merger HHI, the increase in the HHI,
changing market conditions, the financial condition of the firm to be
acquired, ease of entry, nature of the product, substitute products,
similarities in the firms that are subject to the transaction and
increased efficiencies that may result from the transaction. The
Department of Justice has informed the Board that a bank merger or
acquisition generally will not be challenged (in the absence of other
factors indicating an anticompetitive effect) unless the merger increases the HHI by at least 200 points and the post-merger HHI is at
least 1800.
The Department has not advised the Board of any objection to this
transaction.
56
Federal Reserve Bulletin • January 1986
Hancock in the Indianapolis banking market, more
than 30 other commercial banking organizations would
remain as competitors after consummation of the
proposal. In addition, the Board has concluded that
the effect of this proposal on existing competition is
mitigated by the extent of competition offered by thrift
institutions in the market. 4 Nineteen thrift institutions
in the market hold 23 percent of the total deposits in
depository institutions in the market. These thrift
institutions generally compete with commercial banking organizations to the extent that they offer NOW
accounts, make consumer loans and engage in commercial lending. The Board considers the presence of
thrift institutions as a factor in assessing the competitive effects of the proposed transaction, and has determined that consummation of the proposed transaction
is not likely to have a significant adverse effect on
existing competition in the Indianapolis market. 5
Central operates in the Greencastle banking market,6 where Merchants does not currently compete.
Central is the largest of four banking organizations in
the Greencastle market with total deposits of $69.4,
representing 36.1 percent of the deposits in commercial banks in the market. Approval of the Central
application would not eliminate any existing competition between Merchants and Central.
The Board has considered the effects of this proposed acquisition on probable future competition in
the Greencastle market in light of the proposed market
extension guidelines.7 The market is highly concentrated, with the three largest commercial banking
organizations controlling 82.7 percent of deposits in
commercial banks in the market. Based on the size of
the market and the number of potential entrants, the
proposed transaction does not merit close scrutiny
under the Board's proposed guidelines. In addition,
recently enacted changes in the Indiana banking statutes will permit entry by out-of-state bank holding
4. The Board has previously determined that thrift institutions have
become, or at least have the potential to become, major competitors of
banks.
NCNB
Corporation,
( 1 9 8 4 ) ; Sun Banks,
Inc.,
7 0 FEDERAL RESERVE B U L L E T I N
225
6 9 F E D E R A L RESERVE B U L L E T I N 9 3 4 ( 1 9 8 3 ) .
5. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, Merchant's postacquisition share would be 17.6 percent. Upon consummation of the
proposed acquisition, the four-firm concentration ratio would increase
from 65.8 to 67.5 percent and the HHI would increase by 52 points to
1467.
6. The Greencastle market consists of Putman County, Indiana.
7. "Policy Statement of the Board of Governors of the Federal
Reserve System for Assessing Competitive Factors Under the Bank
Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). While the proposed policy statement has not
been approved by the Board, the Board is using the policy guidelines
as part of its analysis of the effect of a proposal on probable future
competition.
companies commencing January 1, 1986.8 That same
law restricts Merchant's entry into the Greencastle
market by branching or by de novo acquisition of a
bank. On the basis of these and other facts of record,
the Board has concluded that the proposed acquisition
of Central would not have any significant adverse
effects on probable future competition in any relevant
market.
In evaluating these applications, the Board has
considered the financial and managerial resources and
future prospects of Merchants and the banking organizations to be acquired. The Board notes that the
earnings and capital position of Merchants and its lead
bank have improved in recent years. In addition,
Merchants has recently raised a substantial amount of
additional capital and, in conjunction with these transactions, Merchants has provided additional capital for
its lead bank. In light of these facts and the fact that
these transactions do not involve any additional debt,
the Board concludes that the financial and managerial
factors are consistent with approval.
Merchants proposes to offer new or expanded services to the customers of Farmers and Central which
would include an executive credit line, a national debit
card program, access to a national ATM network,
discount brokerage services, adjustable rate residential mortgages and lower interest rates on variable rate
consumer loans. Considerations relating to the convenience and needs of the community to be served lend
weight toward approval of the Farmers and Central
applications and are consistent with the Hancock
application.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be
and hereby are approved. These transactions shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Chicago
pursuant to delegated authority.
By order of the Board of Governors, effective
November 8, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, and Rice. Absent and not voting: Governors
Wallich and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
8. Indiana Public Law 265-1985, West Indiana Legislative
Pamphlet 7, p.l.
Service,
Legal Developments
N C N B Corporation
Charlotte, North Carolina
Order Approving Acquisition of a Bank
NCNB Corporation, Charlotte, North Carolina, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. §§ 1841 et seq.)
("Act or BHC 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 the successor by merger to
Bankers Trust of South Carolina, Columbia, South
Carolina ("Bank"). 1
Notice of the application, affording an 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, including the comments of the National
Association of Life Underwriters and the National
Association of Professional Insurance Agents.
Applicant is the second largest commercial banking
organization in North Carolina. Its North Carolina
bank subsidiary controls total domestic deposits of
approximately $6 billion, representing 20.7 percent of
the total deposits in commercial banks in that state. 2
Applicant is also the fifth largest commercial banking
organization in Florida, where its subsidiary bank
holds total domestic deposits of $3.9 billion, or 6.1
percent of the total deposits in commercial banks in
Florida.3 Bank, the third largest commercial banking
organization in South Carolina, holds total domestic
deposits of approximately $1.4 billion, representing
13.7 percent of the total deposits in commercial banks
in South Carolina.
Section 3 (d) of the Act (12 U.S.C. § 1842 (d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
1. Applicant has organized an interim bank, N C N B State Bank,
Columbia, South Carolina, to facilitate the acquisition of Bankers
Trust. As part of the proposed transaction, N C N B State Bank would
be merged into Bankers Trust, which would be the surviving institution and would change its name to N C N B Bankers Trust of South
Carolina.
Applicant has also applied for the Board's approval to acquire
Southern National Bankshares, Inc., Atlanta, Georgia, and Pan
American Banks Inc., Miami, Florida. The Board is approving these
applications in separate actions.
2. Banking data are as of December 31, 1984, unless otherwise
noted.
3. Upon its acquisition of Pan American Banks Inc. and Southern
National Bankshares, Inc., Applicant would become the fourth largest
banking organization in Florida and the forty-third largest banking
organization in Georgia.
57
holding company's home state, 4 unless such acquisition is "specifically authorized by the statute laws of
the state in which such bank is located, by language to
that effect and not merely by implication." The statute
laws of South Carolina authorize the acquisition of a
bank in that state by a bank holding company that has
its principal place of business in a state within a
defined "Southern Region," including North Carolina, and that has more than 80 percent of the total
deposits held by its bank subsidiaries at bank subsidiaries located within the Southern Region.5 Such acquisitions are permitted if the laws of the state in
which the acquiring institution has its principal place
of business would permit the acquisition of the acquiror bank holding company by a South Carolina
bank or bank holding company on a reciprocal basis. 6
Applicant is a Southern Region bank holding company
under the South Carolina act, 7 and its principal place
of business is in North Carolina. North Carolina has
enacted a similar reciprocal statute, 8 which permits
the acquisition of a North Carolina bank or bank
holding company by a bank holding company located
in South Carolina.
Based on its review of the relevant South Carolina
and North Carolina statutes, the Board has determined
that the North Carolina statute satisfied the conditions
of the South Carolina regional interstate banking statute and that South Carolina has by statute expressly
authorized a North Carolina bank holding company,
such as Applicant, to acquire a South Carolina bank,
such as Bank. Accordingly, the Board concludes that
approval of Applicant's proposal to acquire a bank in
South Carolina is not barred by the Douglas Amendment.
The Board has carefully considered the effects of the
proposal upon competition in the relevant banking
markets. The proposal involves the combination of
two sizeable commercial banking organizations that
are among the larger banking organizations in their
respective states. However, because Bank and the
banking subsidiaries of Applicant operate in different
states, consummation of the proposal would not eliminate significant existing competition in any relevant
market.
4. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. Applicant's home state is North Carolina.
5. S.C. Code Ann. § 34-24-30 (Law. Co-op. Supp. 1984).
6. S.C. Code Ann. § 34-24-50(b).
7. All of the deposits of Applicant's bank subsidiaries arc held by
banks located in states within the Southern Region.
8. N.C. Gen. Stat. §§ 53-209 et seq. (Supp. 1984).
58
Federal Reserve Bulletin • January 1986
The Board has also examined the effect of Applicant's acquisition of Bank on probable future competition in the relevant geographic markets in light of the
Board's proposed guidelines for assessing the competitive effects of market-extension mergers or acquisitions.9 In view of the existence of numerous other
potential entrants from states within the southeastern
interstate banking region into each of the markets
served by Bank or Applicant, the Board has concluded
that consummation of the proposed transaction would
not have any significant adverse effects on probable
future competition in any relevant market.
Since the mid-1930's, Bank has operated an insurance agency, licensed under state law, as a department
of the bank. The insurance agency is currently engaged in selling various types of property and casualty
insurance.10 The National Association of Life Underwriters and the National Association of Professional
Insurance Agents ("the Associations" or "Protestants") have protested the acquisition by Applicant of
the insurance agency activities of Bank.
The Associations argue that the prohibition against
the conduct of insurance activities that is contained in
Title VI of the Garn-St Germain Depository Institutions Act of 1982, as incorporated in section 4(c)(8) of
the BHC Act, applies not only to bank holding companies and their nonbank subsidiaries but also to the
activities conducted directly by the bank subsidiaries
of bank holding companies. The Associations also
assert that Applicant's acquisition of Bank's insurance
agency would constitute an evasion of the nonbanking
prohibitions in the BHC Act. The Associations believe
that this case presents similar issues to those presented in Citicorp's application to acquire a South Dakota
bank, which was denied by the Board.11
In response to the comment, NCNB asserts that the
nonbanking prohibitions of the BHC Act do not apply
to the activities conducted directly by a state bank
subsidiary of a bank holding company. NCNB further
argues that even if the prohibitions apply, the excep-
9. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). Although the proposed policy statement has not
been adopted by the Board, the Board has applied the criteria set forth
in the proposed policy statement in its analysis of the effects of
proposals on probable future competition.
10. South Carolina banking law contains no specific authority for a
bank to engage in insurance agency activities. The state, however, has
acquiesced in Bank activities for more than 50 years, and the South
Carolina Commissioner of Banking has stated that such insurance
agency activities are permissible for state banks.
tion found in section 4(c)(8)(D) for activities engaged
in by a bank holding company or its subsidiaries on
May 1, 1982, apply to the insurance activities of Bank.
Finally, NCNB has committed that, upon its acquisition of Bank, it will not expand Greenwood's insurance agency activities outside South Carolina without
the Board's prior approval.
With respect to Protestants' claim that the nonbanking prohibitions of the BHC Act apply, the Board
notes that section 225.22(d)(ii) of Regulation Y permits
state bank subsidiaries of bank holding companies to
acquire all of the securities of a company that engages
solely in activities in which the parent bank may
engage at the same locations and subject to the same
limitations as if the bank were engaging in the activity
directly (12 C.F.R. § 225.22 (d)(ii)). This provision, as
currently written, implicitly recognizes that activities
conducted directly by banks that are subsidiaries of
bank holding companies would be consistent with the
regulation. As discussed above, Bank is permitted
under South Carolina law to engage in the subject
insurance activities at its current locations in South
Carolina.
The Board notes that the questions of the scope of
the Act's nonbanking prohibitions with respect to the
subsidiaries of holding company state banks or to the
banks themselves and whether the exemption in Regulation Y should be eliminated have been raised in a
number of contexts. The Board has these questions
under consideration in connection with its rulemaking
proceedings under Regulation Y12 and its request for
comment regarding the real estate activities of holding
company banks. 13 The Board has also asked for comment regarding the scope of the exemptions to Title VI
of the Garn-St Germain Act. In these contexts, the
Protestants have submitted extensive comments to the
Board on these issues, and the Board believes that it is
appropriate to reserve judgment on the issue in this
case and decide the matter in the context of a full
rulemaking proceeding in which all interested parties
may participate. In this regard, NCNB has committed
that it will conform Bank's insurance activities to the
results of the Board's rulemaking.
The financial and managerial resources and future
prospects of Applicant, its subsidiaries, and Bank are
consistent with approval of the application. Considerations relating to the convenience and needs of the
communities to be served also are consistent with
approval.
Based on the foregoing and other facts of record, the
Board has determined that this application should be,
11. C i t i c o r p , 7 1 F E D E R A L RESERVE B U L L E T I N 7 8 9 ( 1 9 8 5 ) . I n t h a t
application however, the Board concluded that the acquisition of the
bank was in reality an acquisition for the purposes of permitting
Citicorp to engage in insurance activities prohibited for bank holding
companies under section 4 of the BHC Act and that the bank was
simply a device to accomplish this objective.
12. 49 Federal Register 794 (1984).
13. 50 Federal Register 4519 (1985).
Legal Developments
and hereby is, approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
N C N B Corporation
Charlotte, North Carolina
Order Approving Acquisition
Company
of a Bank Holding
NCNB Corporation, Charlotte, North Carolina, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. §§ 1841 et seq.)
("Act"), has applied for the Board's approval under
section 3 of the Act (12 U.S.C. § 1842) to acquire the
successor by merger to Pan American Banks Inc.,
Miami, Florida ("Pan American").1 As a result of the
acquisition, Applicant would acquire indirectly the
following banks, all in Florida: Pan American Bank,
N.A., Miami; Pan American Bank of Miami, N.A.,
Miami; Pan American Bank of Dade County, N.A.,
Hialeah; Pan American Bank of Miami Shores, N.A.,
Miami Shores; Pan American Bank of Jacksonville,
Jacksonville;2 Pan American Bank of Orlando, N.A.,
Orlando; and Pan American Bank of Tampa, N.A.,
Tampa.3 Applicant would also acquire Pan American's
unconsolidated 14.4 percent interest in Eastern National Bank, Hialeah, Florida.
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
1. Applicant has also applied for the Board's approval to acquire
Southern National Bankshares, Inc., Atlanta, Georgia, and Bankers
Trust of South Carolina, Columbia, South Carolina. The Board is
approving these applications in separate actions.
2. Pan American Bank of Jacksonville, which is currently a statechartered bank, will convert to a national bank before consummation
of the proposed acquisition.
3. Pan American has contracted to sell an eighth bank, Pan
American Bank of Sarasota, to SunTrust Banks, Inc. The sale of Pan
American Bank of Sarasota will be completed prior to consummation
of the present transaction.
59
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.
Applicant, with two bank subsidiaries, has consolidated deposits of approximately $9.9 billion. It is the
second largest banking organization in North Carolina,
where its subsidiary bank holds domestic deposits of
$6.0 billion, representing 20.7 percent of the total
deposits in commercial banks in the state.4 The Board
has previously determined that the statute laws of
Florida expressly authorize Applicant to acquire
banks in Florida, and that such acquisitions by Applicant are consistent with state law and with the interstate banking prohibition contained in section 3(d) of
the Act, the Douglas Amendment.5 Moreover, this
acquisition would be permitted pursuant to Florida's
Regional Reciprocal Banking Act of 1984.6
Applicant is the fifth largest commercial banking
organization in Florida, where its subsidiary bank,
NCNB National Bank of Florida, holds total deposits
of $3.9 billion, representing 6.1 percent of the total
deposits in commercial banks in Florida. Pan American, the ninth largest commercial banking organization
in Florida, controls aggregate domestic deposits of
approximately $1.4 billion, representing 2.1 percent of
the total deposits in commercial banks in the state.
Upon acquisition of Pan American, Applicant would
control 8.2 percent of the total deposits in commercial
banks in Florida and would become the fourth largest
commercial banking organization in the state. The
Board has carefully considered the effect of this proposal on the concentration of banking resources within
the state and has concluded that the proposed acquisition would not have a significant adverse effect on the
concentration of banking resources in Florida.
Applicant's Florida bank subsidiary competes directly with Pan American's subsidiary banks in all six
banking markets in which Pan American competes.7
Pan American will sell its only bank in the Sarasota
banking market, Pan American Bank of Sarasota, to
SunTrust Banks, Inc., prior to consummation of this
transaction. As a result of this divestiture, consummation of the proposed acquisition would not eliminate
any existing competition in the Sarasota market.
In none of the other five markets in which both
Applicant and Pan American compete would consum-
4. Statewide deposit data are as of December 31, 1984.
5 . NCNB
( 1 9 8 4 ) ; NCNB
Corporation,
Corporation,
70
FEDERAL
68
RESERVE
BULLETIN
F E D E R A L RESERVE B U L L E T I N
225
54
(1982).
6. Fla. Stat. § 658.295(3)(b) (Supp. 1985).
7. The Sarasota, Miami-Ft. Lauderdale, Tampa, East Palm Beach,
Jacksonville, and Orlando markets.
60
Federal Reserve Bulletin • January 1986
mation of the proposed acquisition cause an increase
in market concentration, as measured by the Herfindahl-Hirschman Index ("HHI"), that would be subject to challenge under the Department of Justice
Merger Guidelines.8 The Miami-Ft. Lauderdale banking market would remain unconcentrated following
consummation of the transaction. In the Jacksonville
market, Pan American's absolute and relative size is
de minimis. Furthermore, in both the East Palm Beach
and Orlando banking markets, the increase in concentration caused by the proposed acquisition would be
minimal.9
In the Tampa banking market, 10 Applicant is the
second largest of 20 commercial banking organizations, with a subsidiary holding deposits of $642.9
million, representing 17.3 percent of the total deposits
in commercial banks. 11 Pan American is the eighth
largest commercial banking organization in the market
with a subsidiary holding $100.2 million in deposits,
representing 2.7 percent of the total deposits in commercial banks in the market. Upon acquisition of Pan
American, Applicant would remain the second largest
commercial banking organization in the market, and
would control approximately 20 percent of the total
deposits in commercial banks in the market.
Although consummation of the proposed transaction would eliminate some existing competition in the
Tampa banking market, the Board believes that several factors mitigate the anticompetitive effects of the
acquisition. The Tampa market is considered moderately concentrated, with the four largest commercial
banking organizations in the market controlling 66.8
percent of the deposits in commercial banks, and an
HHI of 1362. Upon consummation of the proposed
acquisition, the four-firm concentration ratio would
rise to 69.5 percent, the HHI would increase 93 points
to 1455, and the market would remain moderately
concentrated. 12 In addition, 19 commercial banking
organizations would remain in the market after Applicant's acquisition of Pan American.
8. 49 Federal Register 26,823 (1984).
9. In the East Palm Beach banking market, which is considered
moderately concentrated under the Department of Justice's Guidelines, the proposed acquisition would increase the HHI by 28 points,
to 1095. In the Orlando banking market, which is considered highly
concentrated, the acquisition would increase the HHI by 12 points, to
2374. In the Jacksonville banking market, which is also considered
highly concentrated, the acquisition would increase the HHI by 2
points, to 1870. The Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating an anticompetitive effect) unless the postmerger HHI is at least 1800 and the merger increases the HHI by at
least 200 points.
10. The Tampa banking market is approximated by Hillsborough
County, plus the town of Land O'Lakes in Pasco County.
11. Market deposit data are as of June 30, 1984.
12. Under the Department of Justice Merger Guidelines, a market
in which the post-merger HHI is between 1000 and 1800 is considered
The Board also has considered the influence of thrift
institutions in evaluating the competitive effects of this
proposal.13 Seventeen thrift institutions control approximately 40 percent of the total deposits in the
Tampa market. Four of the ten largest depository
institutions in the market are thrift institutions, including the market's largest depository institution. The
thrift institutions in the market offer NOW accounts
and other transaction accounts and 14 of them offer
commercial checking accounts and make commercial
loans. In light of the extent to which thrift institutions
compete with commercial banks in the Tampa market,
the Board considers the presence of thrift institutions
as a factor in assessing the competitive effects of the
proposed acquisition in the market. 14
Based on all of the facts of record, including the
small increases in concentration in the relevant markets and the number and size of the remaining bank
competitors in each of the markets, the Board concludes that consummation of the proposed transaction
would not have a significant adverse effect on existing
competition in the markets in which the subsidiary
banks of Applicant and Pan American compete.
Applicant's subsidiary banks operate in 24 additional banking markets in Florida as well as in 49 North
Carolina banking markets. The Board has examined
the effect of Applicant's acquisition of Pan American
on probable future competition in these markets in
light of the Board's proposed guidelines for assessing
the competitive effects of market-extension mergers or
acquisitions.15 In view of the existence of numerous
other potential entrants from states within the southeastern interstate banking region into each of the
markets served by Applicant, the Board has concluded
that consummation of the proposed transaction would
not have any significant adverse effects on probable
future competition in any relevant market.
moderately concentrated. In such markets, the Department is unlikely
to challenge any merger that produces an increase in the HHI of fewer
than 100 points.
The Department has not advised the Board of any objection to this
transaction.
13. The Board has previously determined that thrift institutions
have become, or at least have the potential to become, major
competitors of commercial banks. NCNB Corporation, 70 FEDERAL
RESERVE B U L L E T I N 2 2 5 ( 1 9 8 4 ) ; Sun
Banks,
Inc.,
6 9 FEDERAL RE-
SERVE B U L L E T I N 9 3 4 ( 1 9 8 3 ) .
14. If 50 percent of the deposits held by thrift institutions in the
Tampa market were included in the calculation of market concentration, Applicant's post-acquisition market share would be 15.8 percent.
Upon consummation of the transaction, the HHI would increase by 58
points, to 1040.
15. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). Although the proposed policy statement has not
been adopted by the Board, the Board has applied the criteria set forth
in the proposed policy statement in its analysis of the effects of
proposals on probable future competition.
Legal Developments
The financial and managerial resources and future
prospects of Applicant, Pan American, and their respective subsidiaries are consistent with approval of
the application. Considerations relating to the convenience and needs of the communities to be served also
are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that this application should be,
and hereby is, approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
N C N B Corporation
Charlotte, North Carolina
Order Approving Acquisition of a Bank Holding
Company
NCNB Corporation, Charlotte, North Carolina, a
bank holding company within the meaning of the Bank
Holding Company Act (12
U.S.C. §§ 1841
et seq.) ( " A c t " ) , has applied for the Board's approval
under section 3 of the Act (12 U.S.C. § 1842) to
acquire the successor by merger to Southern National
Bankshares, Inc. ("Southern"), Atlanta, Georgia, and
thereby to acquire Southern's subsidiary bank, Southern National Bank, Atlanta, Georgia. 1
Notice of the application, affording an 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.
Applicant is the second largest commercial banking
organization in North Carolina. Its North Carolina
bank subsidiary controls total domestic deposits of
1. Applicant has also applied for the Board's approval to acquire
Pan American Banks Inc., Miami, Florida, and Bankers Trust of
South Carolina, Columbia, South Carolina. The Board is approving
these applications in separate actions.
61
approximately $6 billion, representing 20.7 percent of
the total deposits in commercial banks in that state. 2
Applicant is also the fifth largest commercial banking
organization in Florida, where its subsidiary bank
holds total domestic deposits of $3.9 billion, or 6.1
percent of the total deposits in commercial banks in
Florida. 3 Southern is the forty-third largest commercial banking organization in Georgia. Its one subsidiary bank holds domestic deposits of $69.9 million,
representing approximately 0.2 percent of the total
deposits in commercial banks in Georgia.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 4 unless such acquisition is "specifically authorized by the statute laws of
the State in which such bank is located, by language to
that effect and not merely by implication." The statute
laws of Georgia authorize the acquisition of a bank in
Georgia by a bank holding company that controls a
bank located in other states in a defined southeastern
region, including North Carolina, if the laws of the
acquiring institution's home state would permit on a
reciprocal basis the acquisition of the acquiror banking
organization by a Georgia banking organization. 5
The Board has previously determined that the North
Carolina statute 6 satisfies the conditions of the Georgia regional interstate banking statute and that Georgia
has by statute expressly authorized a North Carolina
bank holding company, such as Applicant, to acquire a
Georgia bank or bank holding company, such as
Company. 7 Accordingly, the Board concludes that
approval of Applicant's proposal to acquire a bank in
Georgia is not barred by the Douglas Amendment.
The Board has carefully considered the effects of the
proposal upon competition in the relevant banking
markets. Because the banking subsidiaries of Applicant and Southern operate in different states, consummation of the proposal would not eliminate significant
existing competition in any relevant market.
The Board has also examined the effect of the
proposal on probable future competition in the rele-
2. Banking data are as of December 31, 1984.
3. Upon acquisition of Pan American Banks Inc. and Bankers Trust
of South Carolina, Applicant would become the fourth largest banking
organization in Florida and the third largest banking organization in
South Carolina.
4. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. Applicant's home state is North Carolina.
5. Ga. Code Ann. §§ 7-1-620 et seq. (Supp. 1985).
6. N.C. Gen. Stat. §§ 53-209 et seq. (Supp. 1984).
7 . First
Wachovia
Corporation,
7 1 F E D E R A L RESERVE B U L L E T I N
68 (Board Order dated November 4, 1985).
A62 Federal Reserve Bulletin • January 1986
vant geographic markets in light of the Board's proposed guidelines for assessing the competitive effects
of market-extension mergers or acquisitions.8 In view
of the existence of numerous other potential entrants
from states within the southeastern interstate banking
region into each of the markets served by Southern,
the Board has concluded that consummation of the
proposed transaction would not have any significant
adverse effects on probable future competition in any
relevant market.
The financial and managerial resources and future
prospects of Applicant, Southern, and their subsidiaries are considered satisfactory. Considerations relating to the convenience and needs of the communities
to be served also are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that this application should be,
and hereby is, approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Wheatland Bankshares, Inc.
Wheatland, Wyoming
Order Denying Formation of a Bank Holding
Company
Wheatland Bankshares, Inc., Wheatland, Wyoming,
has applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act ("Act")
(12 U.S.C. § 1842(a)(1)) to become a bank holding
company by acquiring all of the voting shares of
American Bank of Wheatland, Wheatland, Wyoming
("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
8. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (March 3, 1982). Although the proposed policy statement has not been approved by the Board, the Board has applied the
criteria set forth in the proposed policy statement in its analysis of the
eflFects of proposals on probable future competition.
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 is a nonoperating corporation with no
subsidiaries formed for the purpose of acquiring Bank.
Bank is the 81st largest commercial bank in Wyoming,
with total deposits of $12.3 million, which represents
approximately 0.3 percent of total deposits in commercial banks in the state. 1
Bank operates in the Platte County banking market,2 where it is the third largest of five commercial
banks, controlling 16.4 percent of total deposits in
commercial banks. Principals of Applicant are not
affiliated with any other depository organization in this
market. Consummation of this proposal would not
result in any adverse effects upon competition or
increase the concentration of banking resources in any
relevant area. Accordingly, the Board concludes that
competitive considerations under the Act are consistent with approval.
The Board has indicated on previous occasions that
a bank holding company should serve as a source of
financial and managerial strength to its subsidiary
bank and that the Board would closely examine the
condition of an applicant in each case with this consideration in mind.3 In connection with this proposal,
Applicant would incur debt. Using projections based
upon Bank's performance in recent years and other
facts of record, the Board concludes that Applicant
may not have sufficient financial flexibility to be able
to reduce its indebtedness in a satisfactory manner
while maintaining adequate capital levels at Bank. 4
Accordingly, based on these and other facts of record,
the Board concludes that considerations relating to
Applicant's financial and managerial resources and
future prospects are adverse and weigh against approval of this proposal.
Applicant has proposed no new services for Bank
upon consummation of this proposal. Considerations
relating to the convenience and needs of the community to be served are consistent with, but lend no weight
toward, approval of this proposal.
1. Banking data are as of December 31, 1984.
2. The Platte County banking market is approximated by Platte
County, Wyoming.
3. See Northwest Wisconsin Banco, Inc., 71 FEDERAL RESERVE
BULLETIN 105 (1985); Central Minnesota Bancshares, Inc., 70 FEDERAL RESERVE BULLETIN 877 (1984). See also Singer & Associates,
Inc.,
7 0 FEDERAL RESERVE BULLETIN 8 8 3 ( 1 9 8 4 ) .
4. The Board has previously stated that in small one-bank holding
company formations, it expects, among other things, that the bank
holding company's debt-to-equity ratio will be reduced to no more
than 30 percent within 12 years. "Policy Statement for Formation of
Small One-Bank Holding Companies," 12 C.F.R. Part 225, Appendix
B.
Legal Developments
On the basis of all of the facts of record, the Board
concludes that the banking considerations involved in
this proposal are adverse and are not outweighed by
any relevant competitive or convenience and needs
considerations. Accordingly, it is the Board's judgment that approval of the application would not be in
the public interest and that the application should be,
and hereby is, denied for the reasons summarized
above.
By order of the Board of Governors, effective
November 14, 1985.
Voting for this action: Chairman Volcker and Governors
Partee, Rice, and Seger. Absent and not voting: Governors
Martin and Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
Orders Issued Under Section
Holding Company
Act
of the Board
4 of the
Bank
Creditanstalt-B ank verein
Vienna, Austria
Order Approving Acquisition of Company
in Investment Advisory Activities
Engaged
Creditanstalt-Bankverein, Vienna, Austria, a foreign
banking organization, has ^applied for the Board's
approval, pursuant to section 4(c)(8) of the Bank
Holding Company Act ( " A c t " ) (12
U.S.C.
§ 1843(c)(8)), section 8 of the International Banking
Act (12 U.S.C. § 3106), and section 225.23 of the
Board's Regulation Y (12 C.F.R. § 225.23), to acquire
through its wholly owned subsidiary, Creditanstalt
American Corporation, 80 percent of the voting shares
of McKenzie-Walker Investment Management, Inc.
("Company"), Larkspur, California, and thereby engage in investment advisory activities throughout the
United States. The provision of portfolio investment
advice as proposed by Applicant is a permissible
nonbanking activity under section 4(c)(8) of the Act
and section 225.25(b)(4) of the Board's Regulation Y,
12 C.F.R. § 225.25(b)(4). Applicant is subject to the
requirements of section 4(c)(8) of the Act by virtue of
the fact that Applicant operates a branch in New York,
New York. 12 U.S.C. § 3106.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published. 50 Federal Register 33,413 (1985). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the Act.
63
Applicant, with total consolidated assets equivalent
to $17.8 billion as of December 31, 1984, is the largest
commercial bank in Austria. Applicant currently operates a branch office in New York, New York, with
total deposits of $75.1 million and total assets of $248.9
million as of September 30, 1984. In addition, Applicant owns 2.5 percent of the shares of European
American Bancorp, a domestic bank holding company
also located in New York. Applicant does not own a
bank subsidiary in the United States.
Company, an investment advisor registered with the
Securities and Exchange Commission and with the
State of California Department of Corporations under
applicable securities laws, provides portfolio investment advice to individuals, corporations, governments, and other institutions throughout the United
States on both a discretionary and a non-discretionary
basis (but not including the exercise of any voting
rights with respect to such shares). Company, with
$1.1 billion in investment assets under its management
as of June 30, 1985, possesses only a small share of the
highly competitive and nationwide market for investment advisory services.
In every case involving an acquisition by a bank
holding company under section 4 of the Act, the Board
considers the effect of the acquisition on the financial
condition and resources of the applicant. In evaluating
this application, the Board noted that the primary
capital ratio of Applicant as publicly reported is well
below the Board's capital guidelines for U.S. multinational bank holding companies. However, after reviewing all the facts of record relating to the overall
financial condition of Applicant and its U.S. operations, including certain accounting adjustments to reflect U.S. banking practice, the Board has determined
that the financial factors relating to this application are
consistent with approval. In reaching this conclusion,
the Board also took into account the fact that the
proposal involves the acquisition of a nonbank company and represents a relatively small investment by
Applicant in what is essentially a service organization.
Before approving an application under section 4 of
the Act to engage in an activity that the Board has
determined is closely related to banking, the Board
must consider whether Applicant's performance of the
proposed activities can "reasonably be expected to
produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
In that regard, Applicant has interests in certain
foreign companies that also provide investment advisory services. These entities, however, do not engage
in investment advisory activities for U.S. customers or
A64 Federal Reserve Bulletin • January 1986
with respect to American securities, nor do they
derive any of their investment advisory business from
the U.S. market. Company, in contrast, derives only a
small amount of its business from the European market, where Applicant's other investment advisory interests operate. Moreover, as indicated earlier, Company controls only a small share of the U.S. market for
such investment advisory services. Accordingly, the
Board concludes that consummation of this proposal
would not have a significant adverse effect on existing
or potential competition in any relevant market.
Based on the facts of record, including commitments made by Applicant regarding the conduct of the
proposed activities, there is no evidence in the record
that consummation of this proposal would result in
adverse effects, such as unsound banking practices,
unfair competition, conflicts of interest, or an undue
concentration of resources.
Applicant expects upon consummation of the proposal to broaden the services that Company provides
to include advice on foreign securities. In turn, Applicant's customers would obtain increased access to
information on U.S. securities markets. Consummation of the proposal would increase the number of
firms in the U.S. capable of offering advice on international investments. The public benefits associated with
the proposal, therefore, are also consistent with approval.
Based upon the foregoing and the facts of record,
the Board concludes that the balance of public interest
factors it must consider under section 4(c)(8) of the
Act is favorable. Accordingly, the application should
be and hereby is approved. This determination is
subject to all of the conditions set forth in the Board's
Regulation Y, including those in sections 225.4(d) and
225.23(b), and the Board's authority to require such
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to prevent evasion thereof.
The proposed activities shall be commenced not
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 New York, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 7, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, and Rice. Absent and not voting: Governors
Wallich and Seger.
Security Pacific Corporation
L o s Angeles, California
Order Approving Application to Engage in Data
Processing and Data Transmission Activities
Security Pacific Corporation, Los Angeles, California,
a bank holding company within the meaning of the
Bank Holding Company Act, 12 U.S.C. § 1841 et seq.
("BHC Act"), has applied pursuant to section 4(c)(8)
of the BHC Act and section 225.23(a)(1) of the Board's
Regulation Y (12 C.F.R. § 225.23(a)(1)), to acquire 25
percent of the voting shares of X C E L Business Systems, Inc. ("Company"), Mill Valley, California, a
de novo joint venture. The remaining 75 percent of the
shares of Company will be owned by General Automation, Inc. ( " G A I " ) (37.5 percent), Bankline, Inc.
( " B I " ) (18.75 percent) and Mr. Alan Horton-Bentley
(18.75 percent). Company proposes to engage in the
activity of providing data processing and transmission
services, facilities (including data processing and data
transmission hardware, software, documentation or
operating personnel), and data bases. These activities
have been determined by the Board to be closely
related to banking and permissible for bank holding
companies (12 C.F.R. § 225.25(b)(7)).
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published, 50 Federal Register 31,658 (1985). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the BHC Act.
Applicant is the ninth largest banking organization
in the United States, controlling consolidated assets of
$45.2 billion. Applicant's primary bank subsidiary,
Security Pacific National Bank, Los Angeles, California, is the second largest bank in the state of California, with total domestic deposits of $23.7 billion,
representing 12.4 percent of the total deposits in
commercial banks in the state of California. 1 Applicant
also is engaged through nonbank subsidiaries in various nonbanking activities, including consumer and
commercial finance, leasing, trust services, mortgage
banking and industrial banking.
Company intends to market an integrated data processing system, which includes a financial software
package and related hardware, to financial institutions
throughout the United States. This proposal has been
structured as a joint venture to take advantage of the
complementary resources and experience of GAI, BI
and Applicant. GAI is a supplier of computer products
(hardware); BI developed the software that will be part
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
1. All banking data are as of March 31, 1985.
Legal Developments
of Company's system and will be responsible for
training, support and maintenance of the software
used by Company. Applicant has a thorough knowledge of the operations and data processing needs of
financial institutions which is important to the success
of Company's marketing efforts.
Company anticipates that its primary market will
consist of financial and banking institutions with assets
of less than $100 million. Such banking institutions
frequently use outside service bureaus to meet their
data processing needs. Company's product will allow
these institutions to meet their data processing needs
with in-house systems. Thus, the joint venture would
provide an additional source of competition in this
field and permit the banks to choose between in-house
and external data processing facilities.
Because this proposal involves the use of a joint
venture between a bank holding company and a nonbanking company, the Board has analyzed the proposal with respect to its effects on existing and potential
competition between Applicant and its co-venturers in
the market for data processing and data transmission
services.2 BI is a wholly owned subsidiary of Hale
Systems, Inc. ("Hale"), which offers an integrated
data processing system for financial institutions which
is similar to Company's and uses various hardware
components including hardware manufactured by
GAI. The Board notes, however, that Hale's share of
the market is de minimis. Applicant also markets a
similar system to financial institutions in 14 western
states through a subsidiary of Security Pacific State
Bank. Applicant's system, however, costs nearly
twice as much as Company's, is marketed to banking
institutions with assets in excess of $100 million and is
not expected to be competitive with Company's product. In the market in which the joint venture will
compete, Applicant and the co-venturers combined
currently control less than one percent of the market.
The Board also notes that the data processing market
is unconcentrated with few barriers to entry. Accordingly, the Board concludes that consummation of this
proposal would not have a significant adverse effect on
either existing or potential competition in any relevant
market.
Financial and managerial considerations are consistent with approval of this proposal. Applicant's investment is not significant in relation to Applicant's assets.
Moreover, there is no evidence in the record that
2. The Board has previously indicated its concerns regarding the
potential for undue concentration of resources that could result from
the combination in a joint venture of banking and nonbanking institutions. The Board is also concerned that joint ventures not lead to a
matrix of relationships that could undermine the legally-mandated
separation of banking and commerce. See e.g.,
Amsterdam-Rotterdam
Bank,
sche
Bank
N.V.,
AG,
7 0 FEDERAL RESERVE BULLETIN 8 3 5 ( 1 9 8 4 ) ;
6 7 FEDERAL RESERVE BULLETIN 4 4 9 ( 1 9 8 1 ) .
Deut-
65
consummation of this proposal would result in adverse
effects such as unsound banking practices, unfair
competition, conflicts of interests or an undue concentration of resources.
Based upon the foregoing and all the facts of record,
the Board has determined that the balance of public
interest factors it is required to consider under section
4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to all
of the conditions set forth in the Board's Regulation Y,
including those in section 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of the holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of
the BHC Act and the Board's regulations and orders
issued thereunder, or to prevent evasion thereof.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board, or by the Federal Reserve Bank of San
Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
November 25, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Bank of Virginia Company
Richmond, Virginia
Order Approving Acquisition of a Bank Holding
Company
Bank of Virginia Company, Richmond, Virginia, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. §§ 1841 et seq.)
("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 Union Trust Bancorp, Baltimore, Maryland
("UTB"). As a result of the acquisition, Applicant
would acquire indirectly UTB's wholly owned subsidiary bank, Union Trust Company of Maryland, Baltimore, Maryland.
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 225.23(f) of the Board's Regulation Y (12 C.F.R. § 225.23(f)) to acquire UTB's
A66 Federal Reserve Bulletin • January 1986
nonbanking subsidiary, Landmark Financial Services,
Inc., Silver Spring, Maryland ("Landmark"), a company that engages in making installment loans to
individuals for personal, family or household purposes; purchasing sales contracts executed in connection with the sale of personal, family or household
goods or services; making loans secured in whole or in
part by mortgages or other liens on real estate; and
acting as agent and underwriter for the sale of credit
life and credit accident and health insurance directly
related to extensions of credit. These activities have
been determined by the Board to be closely related to
banking and permissible for bank holding companies,
12 C.F.R. § 225.25(b)(1), (8), (9).
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(50 Federal Register 34,753 (1985)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act and the
considerations specified in section 4(c)(8) of the Act.1
Applicant is the fourth largest commercial banking
organization in Virginia. Its one subsidiary bank controls total domestic deposits of approximately $2.9
billion, representing 9.5 percent of the total deposits in
commercial banks in Virginia.2 UTB, the sixth largest
commercial banking organization in Maryland, has
one subsidiary bank that controls aggregate domestic
deposits of approximately $1.4 billion, representing
6.7 percent of the total deposits in commercial banks
in Maryland.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 3 unless such acquisition is "specifically authorized by the statute laws of
the state in which such bank is located, by language to
that effect and not merely by implication." The statute
laws of Maryland authorize the acquisition of a bank in
Maryland by a bank holding company that controls a
1. The Board received comments from the National Association of
Life Underwriters and National Association of Professional Insurance
Agents concerning the activities of Landmark, which Applicant would
acquire indirectly. The Board has determined that Landmark's activities conform to the requirements of the Act and Regulation Y,
12 C.F.R. § 225.25, and that Landmark's proposed activities, as
described by Applicant, would continue to conform to the Act and
Regulation Y following consummation of this transaction.
2. Banking data are as of June 30, 1984.
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
bank located in other states in a defined southeastern
region, including Virginia.4 Such acquisitions are permitted if the laws of the acquiring institution's home
state permit the acquisition of a bank in that state by a
Maryland bank holding company on a reciprocal basis.5 Virginia has enacted a similar reciprocal statute, 6
which permits the acquisition of a Virginia bank by a
bank holding company located in Maryland.
Based on its review of the relevant Maryland and
Virginia statutes, the Board has determined that the
Virginia statute satisfies the conditions of the Maryland regional interstate banking statute and that Maryland has by statute expressly authorized a Virginia
bank holding company, such as Applicant, to acquire a
Maryland bank or bank holding company, such as
UTB. The Maryland Banking Commissioner agrees
that the Virginia statute satisfies the reciprocity requirements of the Maryland interstate banking provisions. Accordingly, the Board concludes that approval
of Applicant's proposal to acquire banks in Maryland
is authorized under Maryland law and is not barred by
the Douglas Amendment.
Since Applicant's subsidiary bank does not operate
in Maryland, and UTB's subsidiary bank does not
operate in Virginia, consummation of the proposed
acquisition would have no effect on existing competition in any Maryland or Virginia market. However,
Applicant and UTB compete directly in the Washington, D.C. banking market. 7 Applicant is the 12th
largest of 71 commercial banking organizations in this
market, controlling 2.2 percent of total market deposits in commercial banks. UTB is the 20th largest
commercial banking organization in the market, controlling 0.8 percent of the total deposits in commercial
banks. Upon consummation of the proposal, Applicant would become the 11th largest commercial banking organization in the market, controlling 3.1 percent
of total deposits in commercial banks in the market.
While consummation of the proposal would eliminate some existing competition in the Washington,
D.C. banking market, the Board believes that this
competitive effect is not significant. The Board notes
that the market is unconcentrated, and that upon
consummation, the Herfindahl-Hirschman Index
("HHI") would increase by only four points to 686
after consummation of the acquisition. 8
4. Md. Ann. Code art. 5, § 1001 et seq. (Supp. 1985).
5. Md. Ann. Code art. 5, § 1003(a)(2) (Supp. 1985).
6. Va. Code § 6.1-398 et seq. (Supp. 1985).
7. The Washington, D.C. banking market is defined by the Washington, D.C. Ranally Metropolitan area.
8. Under the U.S. Department of Justice "Merger Guidelines," as
revised in 1984, a market in which a post-merger HHI is below 1000 is
unconcentrated. The Department of Justice has stated that it will not
challenge any merger producing an HHI below 1000, except in
extraordinary circumstances.
Legal Developments
The Board has also examined the effect of Applicant's acquisition of UTB on probable future competition in the relevant geographic markets in light of the
Board's proposed guidelines for assessing the competitive effects of market-extension mergers or acquisitions. 9 In view of the existence of numerous other
potential entrants into each of the markets served by
UTB or Applicant, the Board has concluded that
consummation of the proposed transaction would not
have any significant adverse effects on probable future
competition in any relevant market.
The financial and managerial resources and future
prospects of Applicant, UTB, and their respective
subsidiaries are consistent with approval of the application. Considerations relating to the convenience and
needs of the communities to be served are also consistent with approval.
Applicant has also applied, pursuant to section
4(c)(8) of the Act, to acquire Landmark, a nonbanking
company that engages in the mortgage lending, consumer lending, and credit related insurance activities
described above. Applicant currently engages in these
activities through its lead bank, Bank of Virginia, and
its subsidiaries, Bank of Virginia Mortgage Corporation and Bank of Virginia Second Mortgage Corporation.
In the markets for mortgage originations, consumer
installment loans, and credit insurance, this proposal
would eliminate existing competition between UTB
and Bank of Virginia in the Washington, D.C., Richmond, and Tidewater, Virginia, markets. 10 However,
in each case, the market for this product is unconcentrated, with numerous bank and nonbank competitors,
and few barriers to entry. Moreover, the overlapping
market share for mortgage originations, consumer
installment loans, and credit insurance is not substantial in any relevant market. Accordingly, the proposed
acquisition would not have a significant adverse effect
on competition for mortgage lending, consumer lending, or the underwriting and sale of credit insurance in
any relevant market.
After consideration of the above facts and other
facts of record, the Board concludes that Applicant's
9. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). While the proposed policy statement has not
been adopted by the Board, the Board has applied the criteria set forth
in the proposed policy statement in its analysis of the effects of
proposals on probable future competition.
10. The Washington, D.C. market is approximated by the Washington, D.C. Ranally Metropolitan Area. The Richmond market is
defined as the Richmond Ranally Metropolitan Area. The Tidewater,
Virginia, market is defined as the Newport News Ranally Metropolitan Area, the Norfolk-Portsmouth Ranally Metropolitan Area, and
Currituck County, North Carolina.
67
acquisition of UTB's nonbanking subsidiary would not
significantly affect existing or probable future competition in any relevant market. Furthermore, there is no
evidence in the record to indicate that approval of this
proposal would result in undue concentration of resources, unfair competition, conflicts of interests,
unsound banking practices, or other adverse effects on
the public interest. Accordingly, the Board has determined that the balance of the public interest factors it
must consider under section 4(c)(8) of the Act is
favorable and consistent with approval of the application to acquire UTB's nonbanking subsidiary.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be, and hereby are,
approved. The acquisition of UTB's subsidiary banks
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, and
neither the banking acquisition nor the nonbanking
acquisition shall occur later than three months after
the effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Richmond, acting pursuant
to delegated authority. The determination with respect
to Applicant's acquisition of Landmark is subject to all
of the conditions set forth in Regulation Y, including
sections 225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d)
and 225.23(b)), and to the Board's authority to require
such modifications or termination of activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, and
prevent evasions of, the provisions and purposes of
the Act and the Board's regulations and orders issued
thereunder.
By order of the Board of Governors, effective
November 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Colson, Inc.
Wilmington, Delaware
Order Approving the Formation of a Bank Holding
Company and Acquisition of a Mortgage Company
Colson, Inc., Wilmington, Delaware, has applied for
the Board's approval under section 3(a)(1) of the Bank
Holding Company Act ("Act") (12 U.S.C. § 1842
(a)(1)) to become a bank holding company by acquiring
A68 Federal Reserve Bulletin • January 1986
72.5 percent of the outstanding voting shares of Washington Bancorporation, Washington, D.C. ("Company"), and thereby to acquire indirectly The National
Bank of Washington, Washington, D.C. ("Bank").
Applicant also has applied under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. § 225.23)) to acquire
Washington Mortgage Group, Inc., Vienna, Virginia
("Mortgage Company"), a nonbanking subsidiary of
Company engaged in mortgage banking activities.
Such activities are permissible pursuant to section
225.25(b)(1) of the Regulation Y.
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(50 Federal Register 36,484 (1985)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act and the
considerations specified in section 4(c)(8) of the Act.
Applicant is a nonoperating corporation formed for
the sole purpose of acquiring Company. 1 Bank is
Company's only banking subsidiary. Bank is the third
largest commercial bank in Washington, D.C., controlling total deposits of $953 million, representing 10.4
percent of the total deposits in commercial banks in
Washington, D.C. 2 Bank operates in the Washington
banking market, 3 where it is the seventh largest of 71
commercial banks, controlling 4.4 percent of total
deposits in commercial banks in the market. 4 Consummation of the transaction would not result in the
concentration of banking resources or in any significant adverse competitive effects in any relevant geographic area.
The financial and managerial resources and future
prospects of Applicant, Company, and Bank are considered generally satisfactory and consistent with approval of the transaction. Applicant has proposed no
new services for Bank upon consummation of the
transaction. However, there is no evidence in the
record that the banking needs of the community to be
served are not being met. Accordingly, considerations
relating to the convenience and needs of the community to be served are consistent with approval of the
transaction.
The Board has also considered Applicant's proposal
to indirectly acquire Mortgage Company and engage in
mortgage banking activities. There is no evidence in
the record to indicate that approval of the transaction
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. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) is consistent with approval of the transaction.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be, and hereby are,
approved. The acquisitions 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 the latter period is
extended for good cause by the Board or the Federal
Reserve Bank of Richmond, acting pursuant to delegated authority. The determination with respect to
Applicant's proposal to acquire Mortgage Company is
subject to the conditions set forth in Regulation Y,
including sections 225.4(d) and 225.23(b) (12 C.F.R.
§§ 225.4(d) and 225.23(b)), and to the Board's authority to require such modification or termination of
activities of a holding company and any of its subsidiaries as the Board finds necessary to assure compliance with the Act and the Board's regulations and
orders issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
November 29, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
First Wachovia Corporation
Winston-Salem, North Carolina
Order Approving Formation of a Bank Holding
Company and Acquisition of Nonbanking Companies
1. In a related action, the Board today approved the application by
Washington National Holdings N.V., Curacao, Netherlands Antilles,
a nonoperating company formed by two foreign investors to hold
shares of Applicant, to become a bank holding company by acquiring
37.5 percent of the voting shares of Applicant.
2. Banking data for Washington, D.C., are as of December 31,
1984.
3. The Washington banking market is defined as the Washington
Ranally Metro Area.
4. Banking data for the Washington banking market are as of
June 30, 1984.
First Wachovia Corporation, Winston-Salem, North
Carolina, 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)) ( " A c t " ) to become a bank
holding company by acquiring all of the voting shares
of Wachovia Corporation, Winston-Salem, North Carolina ("Wachovia"), and First Atlanta Corporation,
Atlanta, Georgia ("First Atlanta"), both of which are
Legal Developments
bank holding companies. As a result of the acquisition,
Applicant would acquire indirectly Wachovia's subsidiary bank, Wachovia Bank and Trust Company,
N.A., Winston-Salem, North Carolina, and First Atlanta's three subsidiary banks: The First National
Bank of Atlanta, Atlanta, Georgia; The First National
Bank of Dalton, Dalton, Georgia; and First Bank of
Savannah, Savannah, Georgia.
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 225.23 of the Board's Regulation Y (12 C.F.R. § 225.23), to acquire the following
nonbanking subsidiaries of Wachovia and First Atlanta:
1. Wachovia Mortgage Company, Winston-Salem,
North Carolina ("WMC"), which engages generally
in mortgage banking activities, and in the sale, as
agent, of credit-related life, hospital, disability, and
accident and health insurance, and in the sale, as
agent, of property and casualty insurance directly
related to extensions of credit;
2. Wachovia Services, Inc., Winston-Salem, North
Carolina, which engages in data processing activities, acquiring and servicing student loans, and
acting as investment or financial adviser to state and
local governments and other entities in connection
with the acquisition and servicing of student loans;
3. Financial Life Insurance Company of Georgia,
Atlanta, Georgia, which engages in the underwriting, as reinsurer, of life, accident and health insurance directly related to extensions of credit by First
Atlanta and its subsidiaries;
4. First Atlanta Leasing Company, Atlanta, Georgia, which was organized to hold leases acquired
from other First Atlanta subsidiaries and is currently
in the process of liquidation;
5. First Atlanta Mortgage Corporation, Atlanta,
Georgia ("FAMC"), which engages generally in
mortgage banking activities, in arranging equity
financing, and in the sale, as agent, of property and
casualty insurance directly related to extensions of
credit; and,
6. Tharpe & Brooks of Florida, Atlanta, Georgia,
which was formed for the purpose of making loans
secured by real estate and servicing loans in Florida,
is currently in the process of liquidation and has no
assets on its balance sheet.
The activities of these subsidiaries are permissible
pursuant to sections 225.25(b)(1), (3), (4), (5), (7), (8),
(9), and (14) of the Board's Regulation Y, and the
Board's Order determining that servicing of student
loans is closely related to banking. 1 In addition, both
1. The
Wachovia
Corporation,
Digitized 7 2 5 FRASER
for ( 1 9 8 5 ) .
71 FEDERAL RESERVE
BULLETIN
69
Wachovia's and First Atlanta's credit-related property
and casualty insurance activities are permissible under
section 4(c)(8)(D) of the Act (12 U.S.C. § 1843(c)(8)(D)).
Notice of these applications, affording opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(50 Federal Register 33,107 (1985)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received in light of
the factors set forth in section 3(c) of the Act and the
considerations specified in section 4(c)(8) of the Act.
Wachovia is the largest commercial banking organization in North Carolina. Its one subsidiary bank holds
total domestic deposits of $6.0 billion, representing
20.9 percent of the total deposits in commercial banks
in North Carolina.2 First Atlanta is the second largest
commercial banking organization in Georgia. Its three
subsidiary banks hold total domestic deposits of $4.5
billion, representing 15.2 percent of the total deposits
in commercial banks in Georgia.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 3 unless such acquisition is "specifically authorized by the statute laws of
the State in which such bank is located, by language to
that effect and not merely by implication." The statute
laws of Georgia authorize the acquisition of a bank in
Georgia by a bank holding company that controls a
bank located in other states in a defined southeastern
region, including North Carolina.4 Such acquisitions
are permitted if the laws of the acquiring institution's
home state would permit on a reciprocal basis the
acquisition of the acquiror banking organization by a
Georgia banking organization. 5 North Carolina has
enacted a similar reciprocal statute, 6 which permits
the acquisition of a North Carolina bank by a bank
holding company located in Georgia.
Based on its review of the relevant Georgia and
North Carolina statutes, the Board has determined
that the North Carolina statute satisfies the conditions
of the Georgia regional interstate banking statute and
that Georgia has by statute expressly authorized a
North Carolina bank holding company, such as Applicant, to acquire a Georgia bank or bank holding
company, such as First Atlanta. 7 Accordingly, the
2. Banking data are as of December 31, 1984.
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. Applicant's home state is North Carolina.
4. Ga. Code Ann. §§ 7-1-620 et seq. (Supp. 1985).
5. Ga. Code Ann. § 7-l-621(c).
6. N.C. Gen. Stat. §§ 53-209 et seq. (Supp. 1984).
A70 Federal Reserve Bulletin • January 1986
Board concludes that approval of Applicant's proposal
to acquire banks in Georgia is not barred by the
Douglas Amendment.
The Board has carefully considered the effects of the
proposal upon competition in the relevant banking
markets. The proposal involves the combination of
two sizeable commercial banking organizations that
are among the larger banking organizations in their
respective states. However, because the banking subsidiaries of Wachovia and First Atlanta operate in
separate banking markets, consummation of the proposal would not eliminate significant existing competition in any relevant market.
The Board has also examined the effect of the
proposal on probable future competition in the relevant geographic markets and has examined the proposal in light of the Board's probable future competition guidelines.8 After consideration of these factors in
light of the specific facts of this case, the Board has
concluded that consummation of this proposal would
not have any significant adverse effects on probable
future competition in any relevant market. In this
regard, the Board notes that there are numerous other
potential entrants from states within the southeastern
interstate banking region into each of the markets
served by Wachovia or First Atlanta.
The financial and managerial resources and future
prospects of Applicant, Wachovia, First Atlanta, and
their subsidiaries are considered satisfactory. Considerations relating to the convenience and needs of the
communities to be served are also consistent with
approval.
Applicant has also applied, pursuant to section
4(c)(8) of the Act, to acquire WMC and FAMC,
nonbanking companies that engage in mortgage banking activities, including originating and servicing residential real estate loans and in making other mortgage
loans and construction loans. Wachovia currently engages in mortgage banking activities from offices in
North Carolina, South Carolina, Georgia, Florida, and
Virginia. WMC has two offices in Atlanta, Georgia,
where all of FAMC's offices are located.
In the market for one- to four-family mortgage
7. The Georgia interstate banking statute requires the approval of
the Georgia Banking Commissioner before a bank holding company in
the southeastern region may acquire a Georgia bank. On October 28,
1985, the Georgia Banking Commissioner approved Applicant's acquisition of First Atlanta.
8. See, "Proposed Policy Statement of the Board of Governors of
the Federal Reserve System for Assessing Competitive Factors Under
the Bank Merger Act and the Bank Holding Company Act," 47
Federal Register 9017 (March 3, 1982). Although the proposed policy
statement has not been approved by the Board, the Board has applied
the criteria set forth in the proposed policy statement in its analysis of
the effects of proposals on probable future competition.
originations,9 this proposal would eliminate existing
competition between WMC and FAMC in the Atlanta,
Georgia, market. 10 However, the market for this product is unconcentrated, with numerous bank and nonbank competitors and few barriers to entry. Moreover,
WMC's and FAMC's market shares of residential
mortgage originations are not substantial in the Atlanta
market.
The markets for mortgage servicing, construction
lending, and the origination of non-residential and
multi-family residential mortgage loans are national in
scope.11 WMC's and FAMC's market shares in each
of these product markets are de minimis, and the
markets are unconcentrated, with a large number of
bank and nonbank participants. Accordingly, the combination of WMC and FAMC would have no significant effect on competition in these product markets.
After consideration of the above facts and other
facts of record, the Board concludes that Applicant's
acquisition of WMC and FAMC would not significantly affect competition in any relevant area. Applicant's
acquisition of Wachovia's and First Atlanta's other
nonbanking subsidiaries would not have any material
effect on competition in their respective product markets. Furthermore, there is no evidence in the record
to indicate that approval of this proposal would result
in undue concentration of resources, unfair competition, conflicts of interests, unsound banking practices,
or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the
public interest factors it must consider under section
4(c)(8) of the Act is favorable and consistent with
approval of the application to acquire Wachovia's and
First Atlanta's nonbanking subsidiaries.12
Based on the foregoing and other facts of record, the
9. This product market has been determined to be local in scope.
See,
e.g.,
NBD
Bancorp,
Inc.,
7 1 FEDERAL RESERVE BULLETIN 2 5 8 ,
261 (1985).
10. The Atlanta, Georgia, market is defined as the Ranally Metropolitan Area for that city.
11. See,
NBD
Bancorp,
Inc.,
7 1 F E D E R A L RESERVE B U L L E T I N 2 5 8 ,
261 (1985).
12. Applicant has applied to engage in the sale of credit-related
property and casualty insurance through its acquisition of WMC and
FAMC. WMC currently engages in these activities through offices in
North Carolina, Georgia, South Carolina, Florida, and Virginia.
FAMC engages in these activities from offices in Atlanta, Georgia.
Under Title VI of the Garn-St Germain Depository Institutions Act of
1982 (now codified as section 4(c)(8)(D) of the BHC Act), WMC and
FAMC each may continue to engage in their respective credit-related
property and casualty insurance agency activities in those states in
which they are now located because Wachovia and First Atlanta each
obtained the Board's approval for such activities under the Act before
May 1, 1982. Applicant does not seek approval for Wachovia or First
Atlanta or their present subsidiaries to expand in any manner or merge
the existing previously-approved insurance activities of Wachovia or
First Atlanta. The Board concludes that, under section 4(c)(8)(D) of
the Act (12 U.S.C. § 1843(c)(8)(D)), WMC and FAMC may continue
to engage in their existing credit-related property and casualty insurance activities after consummation of this proposal.
Legal Developments
Board has determined that the applications under
sections 3 and 4 of the Act should be and hereby are
approved. The transaction shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Richmond, acting pursuant
to delegated authority. The determination with respect
to Applicant's acquisition of Wachovia's and First
Atlanta's nonbanking subsidiaries is subject to all the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) and
225.23(b)), and to the Board's authority to require
such modifications or termination of 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
regulations and order issued thereunder, or to prevent
evasion thereof.
By order of the Board of Governors, effective
November 4, 1985.
Voting for this action: Chairman Volcker and Governors
Martin, Partee, Rice, and Seger. Absent and not voting:
Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
The Industrial Bank of Japan, Ltd.
Tokyo,Japan
Order Approving the Acquisition of a Bank Holding
Company
The Industrial Bank of Japan, Ltd. ( " I B J " ) , Tokyo,
Japan, a registered bank holding company, has applied
for Board approval under section 3 of the Bank
Holding Company Act (the " A c t " ) (12 U.S.C. § 1842)
to acquire up to 75.1 percent of the voting shares of J.
Henry Schroder Bank & Trust Company, New York,
New York ("Bank"). IBJ has also applied under
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to
acquire up to 75.1 percent of the voting shares of J.
Henry Schroder Banking Corporation ("JHSBC"),
New York, New York, an investment company chartered under Article XII of the New York Banking Law
("New York Investment Company"), and through
JHSBC to engage in the following activities: commercial lending; issuing letters of credit; purchasing and
discounting acceptances; buying and selling foreign
exchange; receiving and maintaining credit balances in
connection with international trade; purchasing, acquiring, investing in and holding stock of any corpora-
71
tion and selling and disposing of such stock, provided
that (unless otherwise authorized by the Board) no
such investment shall exceed 5 percent of the voting
securities of any corporation; and operating a foreign
branch at Grand Cayman, Cayman Islands, and engaging at that office in transactions of the type that it can
engage in at its home office. In addition, IBJ has
applied to acquire indirectly shares of J. Henry
Schroder International Bank, Miami, Florida, a corporation chartered pursuant to section 25(a) of the Federal Reserve Act (the "Edge Act") (12 U.S.C. §611
et seq.) and owned by Bank.
Notice of the applications, affording interested persons opportunity to submit comments, has been given
in accordance with sections 3 and 4 of the Act. The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the Act, the considerations specified in section
4(c)(8) of the Act, and the purposes of the Edge Act.
IBJ, with total assets equivalent to approximately
$85.7 billion, is the largest of three long-term credit
banks in Japan and the fifteenth largest banking organization in the world. 1 IBJ operates 23 branches in
Japan and operates five branches, twenty-three representative offices, eight subsidiaries and one agency
internationally. In the United States, IBJ operates a
branch in New York with total assets of approximately
$4.5 billion and an agency in Los Angeles with total
assets of approximately $2.1 billion. In addition, IBJ
owns all of the outstanding voting shares of Industrial
Bank of Japan Trust Company, New York, New York,
with total assets of approximately $2.6 billion. Applicant has selected New York as its home state under
the Board's Regulation K (12 C.F.R. § 211.22(b)).
Bank, with total assets of approximately $1.9 billion, is the 24th largest commercial bank in New York
State. Currently, over 95 percent of the outstanding
voting shares of Bank are owned by Schroders pic,
London, England, a registered bank holding company.
IBJ proposes to acquire immediately 51 percent of the
voting shares of Bank from Schroders pic, and to
acquire approximately an additional 24 percent of
Bank within 18 months of the initial purchase of
shares.
Section 3(c) of the Act requires in every case that
the Board consider the financial resources of the
applicant organization and the bank or bank holding
company to be acquired. As the Board has previously
stated, review of the financial resources of foreign
banking organizations raises a number of complex
1. All banking data as of March 31, 1985.
A72 Federal Reserve Bulletin • January 1986
issues that the Board believes require careful consideration and that the Board continues to have under
review.2 In this regard, the Board has initiated consultations with appropriate foreign bank supervisors and
notes that work is currently in progress among foreign
and domestic bank supervisory officials to develop
more fully the concept of functional equivalency of
capital ratios for banks of different countries. Pending
the outcome of these consultations and deliberations,
the Board has determined to consider the issues raised
by applications by foreign banks to acquire domestic
banks on a case-by-case basis.
In this case, the Board notes that the primary capital
ratio of Applicant as publicly reported is below the
minimum capital guidelines established by the Board
for U.S. bank holding companies. While the Board
regards this as a negative factor, the Board notes that
Applicant is in compliance with the capital and other
financial requirements of the appropriate supervisory
authorities in Japan and that Applicant's resources and
prospects are viewed as satisfactory by those authorities. Applicant also has historically experienced relatively low loan losses and a strong liquidity position.
In addition, Applicant has a substantial and relatively
stable funding base of government and corporate deposits and medium- and long-term debentures that, as
a long-term credit bank, Applicant is permitted to
issue under Japanese law. The Board has also considered other information regarding the financial condition of Applicant, including its substantial portfolio of
securities of publicly held Japanese companies carried
on Applicant's books at cost, which is substantially
below their current market value. Finally, the Board
notes that Applicant's current U.S. operations are
satisfactory.
The Board expects that Applicant will maintain
Bank as among the more strongly capitalized banking
organizations of comparable size in the United States.
Based on these and all of the other facts of record, the
Board concludes that the financial and managerial
factors are consistent with approval of this application.
Applicant's subsidiary bank in New York and Bank
are both wholesale banks that operate in the Metropolitan New York banking market. 3 Both institutions
2 . Bank
Mitsubishi
of Montreal,
Bank,
Ltd.,
7 0 FEDERAL RESERVE B U L L E T I N 6 6 4 ( 1 9 8 4 ) ;
7 0 FEDERAL RESERVE B U L L E T I N 5 1 8 ( 1 9 8 4 ) .
See also Policy Statement on Supervision and Regulation of ForeignBased Bank Holding Companies, 1 Federal Reserve Regulatory
Service f 4-835 (1979).
3. The Metropolitan N e w York banking market consists of the
southern portion of Fairfield County in Connecticut; N e w York City,
all of Nassau, Putnam, Rockland and Westchester Counties, and
western Suffolk County in N e w York; and eastern Hudson County
and the northern two-thirds of Bergen County in N e w Jersey.
control a relatively small share of the market for
commercial banking services in Metropolitan New
York. Upon consummation of the proposed acquisition, Applicant would control approximately 1.18 percent of the deposits held by commercial banks in the
Metropolitan New York banking market. Accordingly,
the Board has determined that consummation of this
proposal would not have significant adverse effects on
existing or potential competition in New York or in
any relevant banking market. The Board has also
determined that considerations regarding the convenience and needs of the communities to be served are
consistent with approval of this application.
In acting on IBJ's application to acquire JHSBC, the
Board must first determine that these activities are
closely related to banking or managing or controlling
banks. The Board has previously determined by order
that ownership and operation of a New York Investment Company is closely related to banking.4 In
making that determination, the Board considered the
unique statutory powers of New York Investment
Companies and the fact that the lending and banking
activities involved were generally offered by commercial banks. In this case, the activities proposed by
Applicant are substantially similar to those authorized
by order in previous Board decisions. In light of this
and other facts of record, the Board believes that the
proposed activities of JHSBC are closely related to
banking for purposes of section 4 of the Act.
In acting on applications under section 4 of the Act,
the Board is required to determine whether the performance of proposed activities by an applicant "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." (12 U.S.C.
§ 1843(c)(8)).
Applicant's proposed acquisition would maintain an
existing source of banking services in New York and
add an additional source of strength to JHSBC. There
is no evidence in the record that indicates that Applicant's proposal would result in any undue concentration of resources, decreased or unfair competition,
conflicts of interest or unsound banking practices.
Accordingly, the Board has determined that the
benefits to the public, subject to the conditions de-
4. Skandinaviska Enskilda Banken, 69 FEDERAL RESERVE BULLETIN 42 (1983); European American Bancorp, 63 FEDERAL RESERVE
BULLETIN 5 9 5 (1977).
Legal Developments
scribed above and commitments made by Applicant,
would outweigh any potentially adverse effects.
The financial and managerial resources of Applicant
are also consistent with its acquisition of J. Henry
Schroder International Bank. This acquisition would
result in the continuation of the international services
currently provided, and is consistent with the purposes of the Edge Act. Accordingly, the Board finds
that the indirect acquisition of J. Henry Schroder
International Bank by Applicant would be in the public
interest.
Based on all of the facts of record, the Board has
determined that the applications under sections 3 and 4
of the Act and under the Edge Act should be, and
hereby are, approved. The acquisition of shares of
Bank shall not be made before the thirtieth calendar
day following the date of this Order, and none of the
proposed acquisitions shall be consummated later than
three months after the date of this Order, unless such
time is extended for good cause by the Board or by the
Federal Reserve Bank of New York, pursuant to
delegated authority. The determination with respect to
Applicant's acquisition of shares of the nonbanking
companies discussed herein is subject to all of the
conditions set forth in Regulation Y, including sections
225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) and
225.23(b)), and to the Board's authority to require
such modifications or termination of activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, and
prevent evasions of, the provisions and purposes of
the Act and the Board's regulations and orders issued
thereunder.
By order of the Board of Governors, effective
November 29, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee and Rice. Voting against this action: Governor
Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Additional Views of Vice Chairman Martin and
Governor Rice
We join in the opinion and Order issued by the Board
finding that, under the specific facts and circumstances of this case, the financial condition of Applicant, after making appropriate adjustments for differences between foreign and domestic regulatory and
banking practices and requirements, is consistent with
approval. We would, however, like to note our continuing concern, expressed in previous cases, regard
73
ing acquisitions by foreign banking organizations
whose publicly reported capital is well below the
Board's capital guidelines for U.S. banking organizations and the unfair competitive advantage that foreign
banking organizations with low capital may thus have
over comparably sized domestic banking organizations. A regulatory standard that would permit acquisitions by a foreign banking organization with low
capital, even after appropriate adjustments are made,
would allow such foreign banking organizations a clear
advantage in many aspects of their competition with
domestic banking organizations, including pricing of
services and bidding for domestic bank acquisitions.
We believe that, consistent with the principles of
competitive equality and national treatment, foreign
banking organizations that have applied to acquire a
domestic bank should be judged against financial and
managerial standards, including capital adequacy
guidelines, that are similar to those applicable to
domestic banking organizations. In this regard, we are
following carefully the progress of discussions currently underway among foreign and domestic bank supervisory officials to develop more fully the concept of
the functional equivalency of capital ratios for banks
of different countries.
November 29, 1985
Dissenting Statement by Governor
Seger
I dissent from the Board's action in this case. I share
the concerns expressed by Vice Chairman Martin and
Governor Rice that foreign banking organizations
whose publicly reported capital is well below the
Board's capital guidelines for U.S. banking organizations have an unfair competitive advantage in the
United States over domestic banking organizations
and should, I therefore believe, be judged against the
same financial and managerial standards, including the
Board's capital adequacy guidelines, as are applied to
domestic banking organizations.
In addition, I am concerned that, while this application would permit a large Japanese banking organization to acquire a bank in the U.S., U.S. banking
organizations are not permitted to make comparable
acquisitions in Japan. While some progress is being
made in opening Japanese markets to U.S. banking
organizations, U.S. banking organizations and other
financial institutions, in my opinion, are still far from
being afforded the full opportunity to compete in
Japan.
November 29, 1985
A74 Federal Reserve Bulletin • January 1986
United Virginia Bankshares Incorporated
Richmond, Virginia
Order Approving Acquisition of a Bank Holding
Company
United Virginia Bankshares Incorporated, Richmond,
Virginia, a bank holding company within the meaning
of the Bank Holding Company Act (12 U.S.C. §§ 1841
et seq.) ("Act"), has applied for the Board's approval
under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to accpire the successor by merger to
NS&T Bankshares! Incorporated, Washington, D.C.
("NS&T"), and iti. subsidiary bank, NS&T Bank,
N.A., Washington, D<C. ("Bank").
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 225.23 of the Board's Regulation Y (12 C.F.R. § 225.23) to acquire NS&T's nonbanking subsidiary, Franklin Mortgage Corporation,
Fairfax, Virginia ("Franklin Mortgage"),' a company
that engages in originating and servicing residential
real estate loans, and to acquire NS&T's 4.7 percent
interest in Internet, Inc., Reston, Virginia ("Internet"), a company that engages in data processing and
related activities. The latter acquisition would increase
Applicant's interest in Internet to 9.5 percent of its
voting shares. These activities have been determined
by the Board to be closely related to banking and
permissible for bank holding companies under sections
225.25(b)(1) and (7) of Regulation Y (12 C.F.R.
§§ 225.25(b)(1) and (7)).
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(50 Federal Register 43,005 (1985)). The time for filing
comments has expired, and the Board has considered
the applications and all comments received, including
the comments of the Council of the District of Columbia, in light of the factors set forth in section 3(c) of the
Act and the considerations specified in section 4(c) of
the Act.
Applicant is the second largest commercial banking
organization in Virginia. Its one subsidiary bank controls total domestic deposits of $4.7 billion, representing 14.6 percent of the total deposits in commercial
banks in Virginia.2 NS&T is the fifth largest commercial banking organization in the District of Columbia,
with one subsidiary bank controlling total domestic
1. NS&T intends to divest Franklin Mortgage prior to its acquisition by Applicant. Applicant proposes to acquire Franklin Mortgage
to provide for the possibility that the divestiture may not take place
before Applicant acquires control of NS&T.
2. State and District deposit data are as of June 30, 1985.
deposits of $700 million, representing 7.7 percent of
the total deposits in commercial banks in the District.
Section 3(d) of the Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, 3 unless such acquisition is "specifically authorized by the statute laws of
the State in which such bank is located, by language to
that effect and not merely by implication."
The statute laws of the District of Columbia authorize the acquisition of a bank or bank holding company
in the District by a bank holding company located in
another state in a defined southeastern region, including Virginia, if that state has enacted reciprocal interstate banking legislation that includes the District of
Columbia.4 Virginia has enacted a similar regional
reciprocal statute, which permits the acquisition of a
Virginia bank by a bank holding company located in
the District of Columbia.5
The Council of the District of Columbia, in emergency legislation enacted November 22, 1985, set forth its
findings that the proposed acquisition satisfies all of
the conditions imposed by the District of Columbia
statute and recommended that the Board approve the
application.6 After review of the relevant Virginia and
District of Columbia statutes, the Board has determined that the Virginia statute and the proposed
acquisition satisfy the conditions of the District's
regional interstate banking statute and that the District
of Columbia statute expressly authorizes a Virginia
bank holding company, such as Applicant, to acquire a
District of Columbia bank holding company, such as
NS&T. Accordingly, the Board concludes that approval of Applicant's proposal to acquire a bank in the
District of Columbia is not barred by the Douglas
Amendment.
Applicant's subsidiary bank competes with NS&T's
subsidiary bank in the only market in which the latter
operates, the Washington, D.C., banking market. 7
Applicant is the tenth largest of 71 commercial banking
organizations in the Washington market, in which its
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. Applicant's home state is Virginia.
4. District of Columbia Regional Interstate Banking Act of 1985,
1985 D.C. Law 6-63 (to be codified at D.C. Code Ann. §§ 26-801
et seq.). The states in the region defined by the Act include Alabama,
Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina,
South Carolina, Tennessee, and West Virginia in addition to Virginia.
5. Va. Code §§ 6.1-398 et seq. (Supp. 1985).
6. D.C. Act 6-103, § 11 (1985).
7. The Washington, D.C., banking market is defined as the Washington, D.C., Ranally Metropolitan Area, which comprises the District of Columbia and the surrounding suburban areas of Virginia and
Maryland.
Legal Developments
subsidiary bank controls total domestic deposits of
$807.8 million, representing 4 percent of the total
deposits in commercial banks in the market. 8 NS&T is
the eleventh largest commercial banking organization
in the market, with one subsidiary bank controlling
domestic deposits of $619 million, representing 3.1
percent of the total deposits in commercial banks in
the market. Upon acquisition of NS&T, Applicant
would become the sixth largest commercial banking
organization in the Washington market and would
control 7.1 percent of the total deposits in commercial
banks in the market.
The Washington banking market is, and would continue after consummation of the proposed acquisition
to be, an unconcentrated market. 9 Moreover, a large
number of commercial banking organizations would
remain in the Washington market after the proposed
acquisition. On the basis of these and all other facts of
record, the Board concludes that consummation of the
acquisition would not have a significant adverse effect
on existing competition in the Washington market.
Applicant's subsidiary bank operates in numerous
additional markets in Virginia, in which NS&T's subsidiary bank does not compete. The Board has examined the effect of Applicant's acquisition of NS&T on
probable future competition in these markets in light of
the Board's proposed guidelines for assessing the
competitive effects of market-extension mergers or
acquisitions. 10 In view of the existence of numerous
other potential entrants into each of Applicant's Virginia banking markets, the Board has concluded that
consummation of the proposed transaction would not
have any significant adverse effects on probable future
competition in any relevant market. The financial and
managerial resources and future prospects of Applicant, NS&T, and their respective subsidiaries are also
consistent with approval of the applications.
In connection with the applications, Applicant has
made a number of commitments and proposals designed to, among other things, increase the provision
of lending and other financial services in low- and
moderate-income neighborhoods in the District of
Columbia. On the basis of certain of these commitments, the Council of the District of Columbia found
8. Market deposit data are as of June 30, 1984.
9. Consummation of the proposed transaction would increase the
market's Herfindahl-Hirschman Index by 25 points, from 682 to 707.
The market is considered unconcentrated under the Department of
Justice Merger Guidelines, 49 Federal Register 26,823 (1984), and the
transaction is not within the parameters in which the Department of
Justice is likely to challenge the transaction.
10. "Proposed Policy Statement of the Board of Governors of the
Federal Reserve System for Assessing Competitive Factors Under the
Bank Merger Act and the Bank Holding Company Act," 47 Federal
Register 9017 (1982). Although the proposed policy statement has not
been adopted by the Board, the Board has applied the criteria set forth
in the policy statement in its analysis of the effects of proposals on
probable future competition.
75
that the proposed acquisition would be of public
benefit to the District. 11 In addition, on the basis of
these commitments, the D.C. Reinvestment Alliance,
a coalition of nonprofit community groups in the
District of Columbia, has withdrawn its objection to
the proposed transaction under the Community Reinvestment Act (12 U.S.C. §§ 2901 et seq.). After review of these and all of the other facts in this case,
including the commitments made by Applicant and
recent reports of examination regarding the record of
Applicant and Bank under the Community Reinvestment Act, the Board concludes that considerations
relating to the convenience and needs of the communities to be served favor approval of the applications.
The Board has also considered the applications
under section 4(c)(8) of the Act to acquire Franklin
Mortgage, a nonbanking company that engages in
originating and servicing residential real estate loans,
and to acquire or retain 9.5 percent of the shares of
Internet, a company that provides electronic network
and switching services in connection with its operation
of two electronic funds transfer systems. 12 These
activities have been determined by the Board to be
closely related to banking under sections 225.25(b)(1)
and (7) of Regulation Y (12 C.F.R. §§ 225.25(b)(1) and
(7)).
Consummation of the proposed acquisition would
eliminate a small amount of existing competition between Franklin Mortgage and Applicant's mortgage
banking subsidiary, United Virginia Mortgage Company ( " U V M C " ) in the origination of first and second
mortgages in the Washington, D.C., market. 13 This
product market, however, is unconcentrated, with
many bank and nonbank competitors, and the market
shares of Franklin Mortgage and UVMC in the Washington market are de minimis. Accordingly, the proposed acquisition would not have a significant adverse
effect on competition for residential mortgage originations in the Washington market.
Franklin Mortgage and UVMC also compete in the
mortgage servicing market, which has been determined to be national in scope. 14 The market shares of
Franklin Mortgage and UVMC in this product market
are de minimis and the market is unconcentrated.
Accordingly, Applicant's acquisition of Franklin
Mortgage would have no significant effect on competition in this product market. The acquisition by Applicant of additional shares of Internet would not result in
the elimination of any competition.
11. D.C. Act 6-103, § 11 (1985).
12. Applicant currently controls 4.7 percent of Internet's shares,
and upon acquisition of N S & T would acquire an additional 4.7
percent.
13. The product market for residential mortgage originations has
been determined to be local in scope. See, e.g., NBD Bancorp, Inc.,
7 1 F E D E R A L RESERVE B U L L E T I N 2 5 8 , 2 6 1 ( 1 9 8 5 ) .
14. Id.
A76 Federal Reserve Bulletin • January 1986
After consideration of the above facts and other
facts of record, the Board concludes that Applicant's
acquisition of NS&T's nonbanking interests would not
significantly affect competition in any relevant market.
Furthermore, there is no evidence in the record to
indicate that approval of this proposal would result in
undue concentration of resources, unfair competition,
conflicts of interests, unsound banking practices, or
other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the
public interest factors it must consider under section
4(c)(8) of the Act is favorable and consistent with
approval of the applications to acquire Franklin Mortgage and to retain and acquire shares of Internet.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be, and hereby are,
approved. The acquisition of NS&T's subsidiary bank
shall not be consummated before the thirtieth calendar
day following the effective date of the Order, and
neither the banking acquisition nor the nonbanking
acquisitions shall occur 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 Richmond, acting pursuant
to delegated authority. The determination with respect
to Applicant's acquisition of Franklin Mortgage and
shares of Internet is subject to all of the conditions set
forth in Regulation Y, including sections 225.4(d) and
225.23(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)), and to
the Board's authority to require such modifications or
termination of activities of a bank holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with, and prevent evasions of, the
provisions and purposes of the Act and the Board's
regulations and orders issued thereunder.
By order of the Board of Governors, effective
November 27, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Washington National Holdings N . V .
Curacao, Netherlands Antilles
Order Approving the Formation of a Bank Holding
Company and Acquisition of a Mortgage Company
Washington National Holdings N.V., Curacao, Netherlands Antilles, has applied for the Board's approval
under section 3(a)(1) of the Bank Holding Company
Act ( " A c t " ) (12 U.S.C. § 1842(a)(1)) to become a
bank holding company by acquiring 37.5 percent of the
outstanding voting shares of Colson, Inc., Wilmington, Delaware ("Colson"), 1 and thereby to acquire
indirectly Washington Bancorporation, Washington,
D.C. ("Company"), a bank holding company within
the meaning of the Act due to its control of The
National Bank of Washington, Washington, D.C.
("Bank"). Applicant also has applied under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section
225.23 of the Board's Regulation Y (12 C.F.R.
§ 225.23)) to acquire Washington Mortgage Group,
Inc., Vienna, Virginia ("Mortgage Company"), a nonbanking subsidiary of Company engaged in mortgage
banking activities. Such activities are permissible pursuant to section 225.25(b)(1) of the Regulation Y.
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the Act
(50 Federal Register 36,484 (September 6, 1985)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the Act and the considerations specified in section
4(c)(8) of the Act.
Applicant and Colson are both nonoperating companies formed for the sole purpose of acquiring shares of
Company. Bank is Company's only banking subsidiary. Bank is the third largest commercial bank in
Washington, D.C., controlling total deposits of $953
million, representing 10.4 percent of the total deposits
in commercial banks in Washington, D.C. 2 Bank operates in the Washington banking market, 3 where it is
the seventh largest of 71 commercial banks, controlling 4.4 percent of total deposits in commercial banks
in the market. 4 Consummation of the transaction
would not result in the concentration of banking
resources or in any significant adverse competitive
effects in any relevant geographic area.
The financial and managerial resources and future
prospects of Applicant, Colson, Company, and Bank
are considered generally satisfactory and consistent
with approval of the transaction. Applicant has proposed no new services for Bank upon consummation
of the transaction. However, there is no evidence in
the record that the banking needs of the community to
be served are not being met. Accordingly, considerations relating to the convenience and needs of the
1. In a related action, the Board today approved the application by
Colson to become a bank holding company by acquiring 72.5 percent
of Company.
2. Banking data for Washington, D.C., are as of December 31,
1984.
3. The Washington banking market is defined as the Washington
Ranally Metro Area.
4. Banking data for the Washington banking market are as of
June 30, 1984.
Legal Developments
community to be served are consistent with approval
of the transaction.
The Board has also considered Applicant's proposal
to indirectly acquire Mortgage Company and engage in
mortgage banking activities. There is no evidence in
the record to indicate that approval of the transaction
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. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) is consistent with approval of the transaction.
Based on the foregoing and other facts of record, the
Board has determined that the applications under
sections 3 and 4 of the Act should be, and hereby are,
approved. The acquisitions 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 the latter period is
extended for good cause by the Board or the Federal
Reserve Bank of Richmond, acting pursuant to delegated authority. The determination with respect to
Applicant's proposal to acquire Mortgage Company is
subject to the conditions set forth in Regulation Y,
including sections 225.4(d) and 225.23(b) (12 C.F.R.
§§ 225.4(d) and 225.23(b)), and to the Board's authority to require such modification or termination of
activities of a holding company and any of its subsidiaries as the Board finds necessary to assure compliance with the Act and the Board's regulations and
orders issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
November 29, 1985.
Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Orders Issued Under the Bank Merger
Act
Moore Financial of Utah
Salt Lake City, Utah
77
Trust Company ("Continental Bank"), also of Salt
Lake City, both subsidiaries of Moore Financial
Group Incorporated ("MFGI"), Boise, Idaho, a bank
holding company within the meaning of the Bank
Holding Company Act, have applied for the Board's
approval under the Bank Merger Act (12 U.S.C.
§ 1828(c)) to merge under the charter and title of
Continental Bank. Moore Financial/Utah concurrently
has applied for membership in the Federal Reserve
System pending consummation of the proposed merger.
Notice of the application, affording interested persons an opportunity to submit comments and views,
has been given in accordance with the Bank Merger
Act and the Board's Rules of Procedure (12 C.F.R.
§ 262.3(b)).
MFGI has banking subsidiaries in Idaho and Oregon
with consolidated assets of $2.9 billion and total domestic deposits of $2.5 billion.1 Since its recent acquisition of Continental Bank, MFGI also controls the
seventh largest banking organization in Utah with
$201.8 million in deposits, representing 2.7 percent of
the total deposits in commercial banks in the state. 2
See Moore Financial Group Incorporated,
71 FEDER-
AL RESERVE BULLETIN 899 (1985).
Moore Financial/Utah, with total assets of approximately $91 million as of September 30, 1985, is a Utahchartered industrial loan company with oflices in Salt
Lake City, Ogden, and Provo, all in Utah. Moore
Financial/Utah provides commercial and consumer
loans, leases real and personal property through its
subsidiary, Moore Financial Leasing Company, extends credit by credit cards, acts as agent for the sale
of credit life insurance related to extensions of credit,
offers thrift and passbook accounts, and issues thrift
certificates. Moore Financial/Utah also is authorized
under state law to offer negotiable order of withdrawal
(NOW) accounts, although it has not offered this
service to date. Moore Financial/Utah could reasonably be considered a competitor with commercial
banks and other financial institutions in Utah by virtue
of its powers to offer virtually all the services a
commercial bank offers, or close substitutes thereto.
Continental Bank and Moore Financial/Utah both
operate in the Salt Lake City banking market. 3 Continental Bank is the seventh largest of 29 commercial
banking organizations in the market, controlling $190
million in deposits, which represents 4.8 percent of the
total deposits in commercial banks in the market.
The Continental Bank and Trust Company
Salt Lake City, Utah
Order Approving Merger of Banks
Moore Financial of Utah ("Moore Financial/Utah"),
Salt Lake City, Utah, and The Continental Bank and
1. Idaho and Oregon statewide banking data are as of March 31,
1985.
2. Utah banking data are as of March 31, 1985.
3. The Salt Lake City banking market is approximated by the Salt
Lake City Ranally Metro Area. Market data are as of June 30, 1984.
A78 Federal Reserve Bulletin • January 1986
Moore Financial/Utah controls deposits of approximately $41.2 million in the market. MFGI, the parent
of both Applicants, is represented in the market by
two additional subsidiaries, Moore Financial Services
("MFS") and Moore Trust Company ("MTC"),
which provide commercial loan and trust services,
respectively. The market shares of MFS and MTC are
de minimis. In view of these facts, and the fact that
this proposal represents essentially a reorganization of
existing ownership interests, the Board concludes that
consummation of the proposed acquisition would not
result in any adverse effects upon competition or
increase the concentration of resources in any relevant
area.
The financial and managerial resources of Applicants and their parent MFGI are regarded as generally
satisfactory, particularly in light of commitments made
by Applicants, and their prospects appear favorable.
As a result, considerations relating to banking factors
are consistent with approval. As a result of the proposed transaction, customers of Moore Financial/Utah
would benefit from the addition of new services,
including the offering of demand deposit accounts to
business customers and NOW accounts to individuals,
as well as federal deposit insurance for its customers'
deposits. Because Moore Financial/Utah operates in
two locations (Ogden and Provo, Utah) where Continental Bank does not currently maintain offices, this
proposal will provide a strengthened competitor with
expanded banking services in those locations. Thus,
considerations relating to the convenience and needs
of the communities to be served are consistent with
ORDERS APPROVED
By the Board of
UNDER
THE BANK
HOLDING
approval. Based upon the foregoing and other considerations reflected in the record, the Board's judgment
is that consummation of the transaction would be
consistent with the public interest.
Moore Financial/Utah also has applied for approval
under section 9 of the Federal Reserve Act (12 U.S.C.
§ 321 et seq.), and section 208.4 of Regulation H
(12 C.F.R. § 208.4), for membership in the Federal
Reserve System pending consummation of the contemplated merger. Moore Financial/Utah appears to
meet all the criteria for admission to membership,
including capital requirements and considerations related to management character and quality. Accordingly, the membership application is approved.
On the basis of the record and for the reasons
discussed above, the applications are hereby approved. The transaction shall not be consummated
before the thirtieth day following the effective date of
this Order, or later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
November 27, 1985.
Voting for the action: Vice Chairman Martin and Governors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
COMPANY
Associate
Secretary
of the
Board
ACT
Governors
Recent applications have been approved by the Board of Governors as listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
Commercial Bancshares, Inc.,
Jersey City, New Jersey
First Center Bancshares, Inc.,
Mount Hope, West Virginia
Shawmut Corporation,
Boston, Massachusetts
Bank(s)
First Bank of Colonia,
Colonia, New Jersey
H & R Bancshares, Inc.,
Danville, West Virginia
Shawmut Quincy Bank and Trust
Company,
Boston, Massachusetts
Board action
(effective
date)
November 27, 1985
November 29, 1985
November 18, 1985
Legal Developments
By Federal Reserve
79
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
Alice Bancshares, Inc.,
Alice, Texas
Anchor Bancorp, Inc.,
Wayzata, Minnesota
Anderson Bancshares, Inc.,
Neosho, Missouri
Apple wood Bankcorp, Inc.,
Wheat Ridge, Colorado
Attica Financial Corporation,
Wichita, Kansas
B.P.C. Corporation,
Cookeville, Tennessee
Brush Country Holding
Company, Inc.,
Freer, Texas
C & L Investment Company,
Inc.,
Miller, South Dakota
Canton Bancshares, Inc.,
Canton, Oklahoma
Central Wisconsin Bankshares,
Inc.,
Wausau, Wisconsin
CWB Holdings—Onalaska, Inc.,
Wausau, Wisconsin
Citizens Bankshares, Inc.,
Shawano, Wisconsin
Commerce Financial
Corporation,
Topeka, Kansas
Community Bankshares, Inc.,
Concord, New Hampshire
Dallas Bancshares, Inc.,
Dallas, Texas
Delta Bancshares, Inc.,
Kaufman, Texas
Downstate Bancshares, Inc.,
Murphysboro, Illinois
Dover Bancshares, Inc.,
Dover, Arkansas
Early Financial Bancshares,
Inc.,
Weatherford, Texas
Bank(s)
The First State Bank,
Premont, Texas
Exchange State Bank,
St. Paul, Minnesota
Anderson State Bank,
Anderson, Missouri
Jefferson Bank South,
Lakewood, Colorado
First National Bank of Attica,
Attica, Kansas
Cumberland County Bank,
Crossville, Tennessee
Freer Bancshares, Inc.,
Freer, Texas
Brush Country Bank,
Freer, Texas
Hand County State Bank,
Miller, South Dakota
Community State Bank of
Canton,
Canton, Oklahoma
Onalaska Holding Company, Inc.,
Onalaska, Wisconsin
Citizens State Bank,
Shawano, Wisconsin
First State Bank and Trust
Company,
Topeka, Kansas
Concord Savings Bank,
Concord, New Hampshire
AmericanBanc Corporation,
Piano, Texas
First National Bank in Kaufman,
Kaufman, Texas
The First National Bank of
Grand Tower,
Grand Tower, Illinois
Bank of Dover,
Dover, Arkansas
Texas Bank,
Early, Texas
Reserve
Bank
Effective
date
Dallas
November 22, 1985
Minneapolis
October 25, 1985
Kansas City
November 8, 1985
Kansas City
October 30, 1985
Kansas City
November 1, 1985
Atlanta
November 8, 1985
Dallas
November 1, 1985
Minneapolis
November 22, 1985
Kansas City
October 17, 1985
Chicago
November 22, 1985
Chicago
November 22, 1985
Kansas City
October 24, 1985
Boston
November 14, 1985
Dallas
October 28, 1985
Dallas
November 6, 1985
St. Louis
November 6, 1985
St. Louis
November 8, 1985
Dallas
October 18, 1985
A80 Federal Reserve Bulletin • January 1986
Section 3—Continued
Applicant
Financial Bancshares, Inc.,
La Vista, Nebraska
Financial Management Bancshares of West Virginia, Inc.,
Morgantown, West Virginia
First Bankers Corporation of
Florida,
Pompano Beach, Florida
First Banking Company of
Southeast Georgia,
Statesboro, Georgia
First Busey Corporation,
Urbana, Illinois
First Channahon Bancorp, Inc.,
Channahon, Illinois
First Commonwealth Financial
Corporation,
Indiana, Pennsylvania
First Fidelity Bancorp, Inc.,
Fairmont, West Virginia
First Financial Bancorporation,
Iowa City, Iowa
First Lubbock Bancshares, Inc.,
Lubbock, Texas
First Mid-Illinois Bancshares,
Inc.,
Mattoon, Illinois
First National Financial
Corporation,
Albuquerque, New Mexico
First NH Banks, Inc.,
Manchester, New Hampshire
First of America Bank
Corporation,
Kalamazoo, Michigan
First Security Bankshares, Inc.,
Lavonia, Georgia
First Security Corporation of
Kentucky,
Lexington, Kentucky
FIRST STATE BANCORP OF
MONTICELLO,
Monticello, Illinois
First Union Corporation,
Charlotte, North Carolina
First Virginia Banks, Inc.,
Falls Church, Virginia
Bank(s)
Bank of Nebraska in Omaha,
Omaha, Nebraska
The First National Bank of
Terra Alta,
Terra Alta, West Virginia
The Mall Bank,
West Palm Beach, Florida
Reserve
Bank
Effective
date
Kansas City
November 22, 1985
Richmond
October 24, 1985
Atlanta
October 18, 1985
Metter Financial Services, Inc.,
Metter, Georgia
Atlanta
November 15, 1985
The First National Bank of
Thomasboro,
Thomasboro, Illinois
First Bank of Channahon,
Channahon, Illinois
The First National Bank of
Leechburg,
Leechburg, Pennsylvania
Bridgeport Bank,
Bridgeport, West Virginia
First National Bank,
Iowa City, Iowa
First National Bank at Lubbock,
Lubbock, Texas
Cumberland County National
Bank in Neoga,
Neoga, Illinois
First National Bank in
Albuquerque,
Albuquerque, New Mexico
North Country Bank,
Berlin, New Hampshire
Alpena Savings Bank,
Alpena, Michigan
Chicago
November 15, 1985
Chicago
October 25, 1985
Cleveland
November 14, 1985
Richmond
November 12, 1985
Chicago
November 22, 1985
Dallas
October 24, 1985
Chicago
November 8, 1985
Kansas City
November 1, 1985
Boston
November 22, 1985
Chicago
November 15, 1985
Bank of Hartwell,
Hartwell, Georgia
Danville Bancorp, Inc.,
Danville, Kentucky
Atlanta
October 30, 1985
Cleveland
October 28, 1985
Prarie State Bank,
Bloomington, Illinois
Chicago
November 15, 1985
Central Florida Bank
Corporation,
Dade City, Florida
The Bank of Middlesex,
Urbanna, Virginia
Richmond
October 24, 1985
Richmond
October 30, 1985
Legal Developments
81
Section 3—Continued
,.
A
AppllCant
First Virginia Banks, Inc.,
Falls Church, Virginia
First Wisconsin Corporation,
Milwaukee, Wisconsin
First Wisconsin Corporation,
Milwaukee, Wisconsin
First Wyoming Bancorporation,
Cheyenne, Wyoming
FMB of S.C. Bancshares,
Incorporated,
Holly Hill, South Carolina
Frankewing Bancshares, Inc.,
Frankewing, Tennessee
FRANKLIN BANCORP, INC.,
Edinburg, Indiana
Freedom Bancorporation, Inc.,
Lindstrom, Minnesota
Geneva Bancshares, Inc.,
Geneva, Illinois
Granger Bancshares, Inc.,
Granger, Texas
Gulf & Southern Corporation,
Fort Myers, Florida
Harrisburg Bancshares, Inc.,
Houston, Texas
Hull State Bancshares, Inc.,
Hull, Texas
Independence Bancshares, Inc.,
Houston, Texas
Irwin Union Corporation,
Columbus, Indiana
IUC Holding, Inc.,
Columbus, Indiana
Jennings Union Bankcorp,
North Vernon, Indiana
Kaw Valley Bancorp, Inc.,
Topeka, Kansas
KNISELY FINANCIAL
CORP.,
Butler, Indiana
Leland National Bancorp, Inc.,
Leland, Illinois
Lexington State Bank & Trust
Company Employee Stock
Ownership Plan,
Lexington, Nebraska
t.
w x
Bank(s)
The First National Bank of
Farmville,
Farmville, Virginia
Cedarburg State Bank,
Cedarburg, Wisconsin
Island City Bancorp, Inc.,
Minocqua, Wisconsin
Security State Bank of Minocqua,
Minocqua, Wisconsin
First Wyoming Bank—Saratoga,
Saratoga, Wyoming
Farmers & Merchants Bank of
South Carolina,
Holly Hill, South Carolina
The Bank of Frankewing,
Frankewing, Tennessee
SOUTH CENTRAL BANCORP,
Edinburg, Indiana
Security State Holding Company,
Lindstrom, Minnesota
The State Bank of Geneva,
Geneva, Illinois
The Granger National Bank,
Granger, Texas
The National Bank of Lee
County,
Fort Myers, Florida
Harrisburg Bank,
Houston, Texas
Bank of the Trinity, N.A.,
Liberty, Texas
New Waverly State Bank,
New Waverly, Texas
Midwest National Bank,
Indianapolis, Indiana
Union Bank and Trust Company,
North Vernon, Indiana
The Kaw Valley State Bank &
Trust Company,
Topeka, Kansas
The Knisely National Bank of
Butler,
Butler, Indiana
Leland National Bank,
Leland, Illinois
Lexington Bancshares, Inc.,
Lexington, Nebraska
Reserve
Bank
Effective
date
Richmond
October 30, 1985
Chicago
November 22, 1985
Chicago
November 22, 1985
Kansas City
October 17, 1985
Richmond
November 19, 1985
Atlanta
October 9, 1985
Chicago
November 15, 1985
Minneapolis
November 22, 1985
Chicago
November 22, 1985
Dallas
November 22, 1985
Atlanta
October 9, 1985
Dallas
November 1, 1985
Dallas
November 22, 1985
Dallas
November 25, 1985
Chicago
October 23, 1985
Chicago
November 6, 1985
Kansas City
November 15, 1985
Chicago
November 1, 1985
Chicago
November 6, 1985
Kansas City
November 14, 1985
A82 Federal Reserve Bulletin • January 1986
Section 3—Continued
Applicant
Trust Department of Lexington
State Bank & Trust
Company,
Lexington, Nebraska
Lincoln Financial Corporation,
Fort Wayne, Indiana
LJT, Inc.,
Holdrege, Nebraska
M & M Financial Corporation,
Oak Hill, West Virginia
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Mifflinburg Bancorp, Inc.,
Mifflinburg, Pennsylvania
Mission-Valley Bancorp,
Pleasanton, California
Naperville Financial Corporation,
Naperville, Illinois
National Bank of Western
Pennsylvania Employee
Stock Ownership Trust,
Berlin, Pennsylvania
N.B.W.P., Inc.,
Berlin, Pennsylvania
Nerstrand Bancshares, Inc.,
Nerstrand, Minnesota
New Danville Bancorp, Inc.,
Lexington, Kentucky
New Superior Financial
Corporation,
Sault Ste. Marie, Michigan
Nicholas, Inc.,
Dillon, Montana
North Shore Financial
Corporation,
Duluth, Minnesota
Old National Bancorp,
Evansville, Indiana
PAB Bancshares, Inc.,
Valdosta, Georgia
Bank(s)
Reserve
Bank
Effective
date
Chicago
November 21, 1985
Kansas City
October 24, 1985
Richmond
October 25, 1985
Chicago
November 1, 1985
Philadelphia
November 6, 1985
San Francisco
October 30, 1985
Chicago
November 1, 1985
N.B.W.P., Inc.,
Berlin, Pennsylvania
Cleveland
November 8, 1985
Western Pennsylvania Bank,
N.A., Inc.
Berlin, Pennsylvania
Farmers State Bank of Nerstrand,
Nerstrand, Minnesota
Citizens National Bank of
Danville,
Danville, Kentucky
Superior Financial Corporation,
Sault Ste. Marie, Michigan
Cleveland
November 8, 1985
Minneapolis
November 15, 1985
Cleveland
October 28, 1985
Minneapolis
November 15, 1985
State Bank and Trust Company,
Dillon, Montana
North Shore Bank of Commerce,
Duluth, Minnesota
Minneapolis
October 24, 1985
Minneapolis
November 6, 1985
Greencastle Bancorp, Inc.,
Greencastle, Indiana
First Citizens Bank and Trust
Company,
Greencastle, Indiana
Farmers & Merchants
Bancshares, Inc.,
Adel, Georgia
St. Louis
CS BANCORP,
Huntington, Indiana
First Holdrege Banc Shares, Inc.,
Holdrege, Nebraska
Valley Bank and Trust Company,
Bluefield, West Virginia
M&I Interim Corporation,
Lancaster, Wisconsin
Lancaster Bancshares, Inc.,
Lancaster, Wisconsin
Mifflinburg Bank and Trust
Company,
Mifflinburg, Pennsylvania
The Bank of San Ramon, N.A.,
San Ramon, California
Heritage Bank of Bolingbrook,
Bolingbrook, Illinois
November 21, 1985
Atlanta
November 1, 1985
Legal Developments
83
Section 3—Continued
Applicant
Peconic Bancshares, Inc.,
Riverhead, New York
Regency Bancorporation,
Pueblo, Colorado
Ridgedale Financial Services,
Inc.,
Minnetonka, Minnesota
Rio Grande Financial
Corporation,
Brownsville, Texas
Riverside Banking Company,
Fort Pierce, Florida
Security Bancorp, Inc.,
Herrin, Illinois
Silver Lake Bancorporation,
Inc.,
Silver Lake, Minnesota
South County Bancshares, Inc.,
Ashland, Missouri
Southeast Arkansas Bank
Corporation,
Lake Village, Arkansas
Southside Bancshares Corp.,
St. Louis, Missouri
SouthTrust Corporation,
Birmingham, Alabama
The Summit Bancorporation,
Summit, New Jersey
Summit Holding Corporation,
Beckley, West Virginia
Sunbelt Bancshares, Inc.,
Tifton, Georgia
Texas American Bancshares,
Inc.,
Fort Worth, Texas
Turner Bancshares, Inc.,
Belgrade, Missouri
United Citizens Financial
Corporation,
New Castle, Kentucky
Washington-Wilkes
Corporation,
Washington, Georgia
Williamson County Bancorp,
Inc.,
Franklin, Tennessee
Bank(s)
Reserve
Bank
Effective
date
Peconic Bank,
Riverhead, New York
Pueblo Boulevard Bank,
Pueblo, Colorado
Ridgedale State Bank,
Minnetonka, Minnesota
New York
November 8, 1985
Kansas City
November 21, 1985
Minneapolis
November 22, 1985
National Bank of Brownsville,
Brownsville, Texas
Dallas
October 28, 1985
Riverside National Bank of
Florida,
Fort Pierce, Florida
Herrin Security Bank,
Herrin, Illinois
First State Bank of Lake Wilson,
Lake Wilson, Minnesota
Atlanta
October 31, 1985
St. Louis
November 8, 1985
Minneapolis
November 8, 1985
South County Bank,
Ashland, Missouri
Bank of Lake Village,
Lake Village, Arkansas
St. Louis
November 15, 1985
St. Louis
November 4, 1985
Bank of Ste. Genevieve,
Ste. Genevieve, Missouri
Peoples Bank and Trust Company
of Sylacauga,
Sylacauga, Alabama
Bay State Bank,
Ship Bottom, New Jersey
Gulf National Bank,
Sophia, West Virginia
The Citizens Bank of Tifton,
Tifton, Georgia
American State Bank,
Fort Worth, Texas
St. Louis
October 30, 1985
Atlanta
November 15, 1985
New York
October 25, 1985
Richmond
October 31, 1985
Atlanta
October 9, 1985
Dallas
November 1, 1985
St. Louis
October 29, 1985
St. Louis
November 5, 1985
Atlanta
October 30, 1985
Atlanta
November 22, 1985
Belgrade State Bank,
Belgrade, Missouri
United Citizens Bank and Trust
Co.,
New Castle, Kentucky
Farmers and Merchants Bank,
Washington, Georgia
Planters Financial Corporation,
Hopkinsville, Tennessee
A84 Federal Reserve Bulletin • January 1986
Section 4
Applicant
Bank of Boston Corporation,
Boston, Massachusetts
Bank of Boston Corporation,
Boston, Massachusetts
Chisholm Trail Financial
Corporation,
Wichita, Kansas
Forest Lake Finance Company,
Forest Lake, Minnesota
Gulfbanks, Inc.,
Corpus Christi, Texas
Maryland National Corporation,
Baltimore, Maryland
Sloan State Corporation,
Sloan, Iowa
Bank(s)/Nonbanking
company
American Financial Systems
Corporation,
Tampa, Florida
Hospital Trust Financial of
Connecticut, Inc.,
Hartford, Connecticut
acting as an advisor to open-end
investment companies
Derby Financial Corporation,
Wichita, Kansas
Coy Insurance Agency,
Forest Lake, Minnesota
Central National Gulfbank of
Corpus Christi,
Corpus Christi, Texas
First National Bank of Corpus
Christi,
Corpus Christi, Texas
Southern National Bank of
Corpus Christi,
Corpus Christi, Texas
Western National Bank of Corpus
Christi,
Corpus Christi, Texas
Firstmark Arvada Industrial
Bank,
Arvada, Colorado
Firstmark Cherry Creek
Industrial Bank,
Denver, Colorado
making or acquiring loans and
other extensions of credit
Reserve
Bank
Effective
date
Boston
November 15, 1985
Boston
November 1, 1985
Kansas City
November 5, 1985
Minneapolis
November 19, 1985
Dallas
October 31, 1985
Richmond
November 18, 1985
Chicago
November 15, 1985
Legal Developments
ORDERS APPROVED
By Federal
Reserve
UNDER BANK
MERGER
ACT
Banks
Banco de Ponce,
Ponce, Puerto Rico
Bayshore Bank of Florida,
Miami, Florida
Citizens Interim Bank,
Ocala, Florida
Green Valley Bank, Inc.,
Bluefield, West Virginia
M. B. Bank,
Minerva, Ohio
CASES INVOLVING
Reserve
Bank
Bank(s)
Applicant
PENDING
85
The East New York Savings
Bank,
New York, New York
Tower Bank, N.A.,
Hialeah Gardens, Florida
Citizens First Bank of Ocala,
Ocala, Florida
Valley Bank and Trust Company,
Bluefield, West Virginia
The Minerva Banking Company,
Minerva, Ohio
THE BOARD
OF
Effective
date
New York
November 1, 1985
Atlanta
October 4, 1985
Atlanta
November 13, 1985
Richmond
October 25, 1985
Cleveland
October 25, 1985
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.
First National Bank of Blue Island Employee Stock
Ownership Plan v. Board of Governors, No. 852615 (7th Cir., filed Sept. 23, 1985).
First National Bancshares II v. Board of Governors,
No. 85-3702 (6th Cir., filed Sept. 4, 1985).
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Florida Bankers Association, et al. v. Board of Governors, No. 85-193 (U.S., filed Aug. 5, 1985).
Populist Party of Iowa v. Federal Reserve Board, No.
85-626-B (S.D. Iowa, filed Aug. 2, 1985).
John R. Urwyler, et al. v. Internal Revenue Service, et
al., No. CV-F-85-402 REC (E.D. Cal., filed July 18,
1985).
Broad Street National Bank of Trenton v. Board of
Governors, No. 85-3387 (3d Cir., filed July 17,
1985).
Wight, et al. v. Internal Revenue Service, et al., No.
CIV S-85-0012 MLS (E.D. Cal., filed July 12,1985).
Cook v. Spillman, et al., No. CIV S-85-0953 EJG
(E.D. Cal. filed July 10, 1985).
Calhoun, et al. v. Board of Governors, No. 85-1750
(D.D.C., filed May 30, 1985).
Florida Bankers Association v. Board of Governors,
No. 84-3883 and No. 84-3884 (11th Cir., filed Feb.
15, 1985).
Florida Department of Banking v. Board of Governors, No. 84-3831 (11th Cir., filed Feb. 15,
1985),and No. 84-3832 (11th Cir., filed Feb. 15,
1985).
Dimension Financial Corporation v. Board of Governors, No. 84-1274 (U.S., filed Feb. 6, 1985).
Lewis v. Volcker, et al., No. C-1-85-0099 (S.D. Ohio,
filed Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
Seattle Bancorporation, et al. v. Board of Governors,
No 84-7535 (9th Cir., filed Aug. 15, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed Apr. 30, 1984).
State of Ohio v. Board of Governors, No. 84-1270
(10th Cir., filed Jan. 30, 1984).
Colorado Industrial Bankers Association v. Board of
Governors, No. 84-1122 (10th Cir., filed Jan. 27,
1984).
First Bancorporation v. Board of Governors, No. 841011 (10th Cir., filed Jan. 5, 1984).
Oklahoma Bankers Association v. Federal Reserve
Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983).
The Committee For Monetary Reform, et al. v. Board
of Governors, No. 84-5067 (D.D.C., filed June 16,
1983).
Securities Industry Association v. Board of Governors, No. 80-2614 (D.C. Cir., filed Oct. 24. 1980),
and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980).
A1
Financial and Business Statistics
CONTENTS
Domestic
MONEY
WEEKLY REPORTING
Financial
Statistics
STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A5 Federal funds and repurchase agreements—
Large member banks
POLICY
INSTRUMENTS
A6 Federal Reserve Bank interest rates
A7 Reserve requirements of depository institutions
A8 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A9 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL
BANKING
INSTITUTIONS
All Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
COMMERCIAL
BANKS
Assets and liabilities
All reporting banks
Banks in New York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types and
ownership
A31 U.S. government securities dealers—
Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS
AND
CORPORATE
FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A2
Federal Reserve Bulletin • January 1986
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 and business credit
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance sheet
data
A57 Selected U.S. liabilities to foreign official
institutions
REPORTED
REAL
BY BANKS
IN THE UNITED
STATES
ESTATE
A57
A58
A60
A61
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER
INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Terms
FLOW OF
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
ENTERPRISES IN THE UNITED
FUNDS
A42 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A63 Liabilities-to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES
Domestic
Nonfinancial
SELECTED
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross national product and income
A52 Personal income and saving
AND
TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Tabular
Statistical
Releases,
Tables
Presentation,
and
Special
Statistics
SPECIAL
SUMMARY
HOLDINGS
Statistics
MEASURES
International
BUSINESS
STATES
TABLES
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
A70 Assets and liabilities of foreign banks,
June 30,1985
Money Stock and Bank Credit
1.10
RESERVES, M O N E Y STOCK, LIQUID ASSETS, A N D DEBT
A3
MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1984
Q4
1985
1985
Q2
Q1
Q3
June
July'
Aug.
Sept.'
Oct.
1
2
3
4
Reserves of depository institutions2
Total
Required
Nonborrowed
Monetary base 3
3.8
3.0
36.3
4.7
17.4
16.9
57.3
8.2
12.2
12.3
14.1
7.5
16.4
17.1
18.2
10.3
24.8
22.3
29.5
13.5
12.2
13.9
15.4
6.8
16.5
17.7
18.0
13.4
8.7
13.5
2.8
7.0
4.0
1.4
7.0
6.1
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
3.2
9.1
11.0
9.6
14.0
10.6
12.1
10.7
10.0
13.6
10.2
5.3
5.2
5.8
11.7
15.1'
10.2
7.9'
8.5
ll^
19.8
13.7
10.5
9.5
11.8
9.3
8.6
4.4
5.6
12.2
20.5
11.3
9.2
12.2
11.7
11.7
7.0
10.1
9.9
10.5
-1.2
2.2
3.8
n.a.
n.a.
10.9
18.7
12.5
5.5
3.8
4.8
8.7
-1.3'
11.8
-2.1
8.4
-12.0
8.4
1.0
5.5
22.3
3.3
10.0
-10.4
6.9
12.2
-8.7
-1.8
2.6
-1.7
6.5
8.3
11.3
-4.4
-3.2
14.9
2.2
-19.4
12.8
-7.1
-8.5
9.7
-13.3
8.1
3.9
-4.1
22.9
4.8
-3.1
18.5
-6.6
15.2
29.8
2.2
1.7
21.0
3.1
3.9
2.6
14.7
—4.6r
-2.8
9.2'
3.3'
2.3
18.3
-7.9
-16.9
22.9
-13.9
-3.9
6.8
-6.6
15.6
14.9
-4.9
3.1
16.1
13.3
9.2
15.3
13.0
10.1
12.6
11.4
9.7
14.2
11.3'
9.6
13.8
11.1
9.5
15.9
11.1
10.9
13.7
11.2
6.5
7.8
11.3
8.2
n.a.
n.a.
2.0
Nontransaction
10 InM2 5
11 In M3 only6
components
Time and savings deposits
Commercial banks
Savings7
Small-denomination time8
Large-denomination time9'10
Thrift institutions
15 Savings7
16 Small-denomination time 9
17 Large-denomination time
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks 11
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at F e d e r i Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) 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 (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts
(MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both taxable and
tax-exempt general purpose and broker/dealer money market mutual funds.
Excludes individual retirement accounts (IRA) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
commercial banks, money market funds (general purpose and broker/dealer),
foreign governments and commercial banks, and the U.S. government. Also
subtracted is a consolidation adjustment that represents the estimated amount of
demand deposits and vault cash held by thrift institutions to service their time and
savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic noniinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
noniinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.
A4
1.11
DomesticNonfinancialStatistics • January 1986
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE BANK
CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1985
1985
Factors
Sept. 18
Sept. 25
193,817
192,973
170,018
170,018
0
8,227
8,227
0
0
1,140
669
13,763
11,090
4,692
16,960
170,589
170,589
0
8,227
8,227
0
0
1,079
396
12,683
11,090
4,618
16,898
188,371
546
189,070
543
4,275
235
1,607
3,006
214
1,738
Aug.
Sept.
Oct.
190,759
194,350
168,440
165,378
62
8,249
8,238
11
0
1,109
488
12,473
11,090
4,618
16,843
171,246
170,503
743
8,428
8,227
201
0
1,283
779
12,614
11,090
4,618
16,899
187,859'
552
2,925
204
1,661
Oct. 2
Oct. 9
196,331
193,635
193,344
193,731
195,568
193,075
173,146
171,243
1,903
8,598
8,227
371
0
1,262
468
12,856
11,090
4,618
16,912
169,819
169,819
0
8,227
8,227
0
0
1,440
1,310
12,839
11,090
4,618
16,926
169,759
169,759
0
8,227
8,227
0
0
1,349
855
13,154
11,090
4,632
16,940
170,667
170,667
0
8,227
8,227
0
0
935
500
13,402
11,090
4,718
16,958
171,140
171,140
0
8,227
8,227
0
0
1,301
869
14,031
11,090
4,718
16,968
168,755
168,755
0
8,227
8,227
0
0
1,025
566
14,502
11,090
4,718
16,982
188,677
546
187,527
546
187,478
545
188,758
541
189,804
541
189,420
544
188,540
544
3,354
215
1,610
6,601
221
1,670
3,672
306
1,614
2,909
227
1,589
2,945
203
1,832
3,650
193
1,809
2,664
203
1,671
Oct. 16
Oct. 23
Oct. 30
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2 U.S. government securities1
3
Bought outright
Held under repurchase agreements....
4
5 Federal agency obligations
Bought outright
6
7
Held under repurchase agreements....
8 Acceptances
9 Loans
10 Float
11 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 reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments . . . .
485
466
446
586
446
447
412
545
441
375
6,238
6,274
6,270
6,269
6,239
6,272
6,417
6,226
6,233
6,170
23,386
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks2
25,183
25,272
24,322
25,700
25,935
25,152
24,400
26,056
25,697
End-of-month figures
Wednesday figures
1985
1985
Aug.
Sept.
Oct.
192,693
194,148
170,109
170,109
0
8,227
8,227
0
0
2,068
-152
12,441
169,702
169,702
0
8,227
8,227
0
0
2,520
69
13,630
11,090
4,618
16,868r
Sept. 18
Sept. 25
Oct. 2
Oct. 9
192,884
192,816
168,705
168,705
0
8,227
8,227
0
0
886
335
14,731
169,976
169,976
0
8,227
8,227
0
0
1,190
720
12,703
198,919
193,605
197,822
194,398
198,249
186,296
174,646
170,800
3,846
8,852
8,227
625
0
2,121
225
13,075
169,831
169,831
0
8,227
8,227
0
0
1,067
1,329
13,151
171,801
171,801
0
8,227
8,227
0
0
3,926
360
13,508
170,238
170,238
0
8,227
8,227
0
0
887
1,500
13,546
172,215
172,215
0
8,227
8,227
0
0
2,355
1,018
14,434
161,902
161,902
0
8,227
8,227
0
0
1,092
355
14,720
11,090
4,618
16,924
11,090
4,718
16,994
11,090
4,618
16,910
11,090
4,618
16,924
11,090
4,618
16,938
11,090
4,718
16,952
11,090
4,718
16,966
11,090
4,718
16,980
11,090
4,718
16,994
188,548
548
187,336
546
189,513
547
188,241
546
187,302
544
188,163
544
189,359
541
190,156
544
189,034
544
188,909
547
3,656
223
1,435
4,174
535
1,444
1,528
268
1,469
4,070
234
1,441
8,009
230
1,445
3,001
214
1,444
4,932
214
1,444
2,773
144
1,463
2,590
180
1,461
1,186
221
1,468
Oct. 16
Oct. 23
Oct. 30
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
U.S. government securities1
Bought outright
Held under repurchase agreements....
Federal agency obligations
Bought outright
Held under repurchase agreements....
Acceptances
Loans
Float
Other Federal Reserve assets
34 Gold stock
35 Special drawing rights certificate account
36 Treasury currency outstanding
...
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances with
Federal Reserve Banks
39 Treasury
40 Foreign
41 Service-related balances and adjustments
42 Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks2
389
497
372
684
401
459
482
674
372
377
6,240
6,530
6,339
6,078
6,073
6,162
6,159
6,107
6,063
5,964
24,230
25,718
25,650
24,140
27,546
26,264
27,450
25,311
30,793
20,426
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. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions
Millions of dollars
Monthly averages 8
Reserve classification
Reserve balances with Reserve Banks 1
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
1983
1984
Dec.
1
2
3
4
5
6
7
8
9
10
1982
Dec.
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
24,939
20,392
17,049
3,343
41,853
41,353
500
697
33
187
21,138
20,755
17,908
2,847
38,894
38,333
561
774
%
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
22,065
21,863
18,429
3,434
40,494
39,728
766
1,593
88
1,059
23,217
21,567
18,435
3,132
41,652
40,914
738
1,323
135
868
22,385
21,898
18,666
3,231
41,051
40,247
804
1,334
165
534
23,367
22,180
18,985
3,196
42,352
41,447
905
1,205
151
665
23,503
22,530
19,300
3,230
42,803
41,948
855
1,107
167
507
23,415'
22,839
19,548
3,291
42,963
42,135
827
1,073
221
570'
24,972
22,465
19,475
2,990
44,447
43,782
666
1,289
203
656
2
1985
Biweekly averages of daily figures for weeks ending
1985
July 17
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 1
Total vault cash 2
Vault cash used to satisfy reserve requirements 3 .
Surplus vault cash 4
Total reserves 5
Required reserves
Excess reserve balances at Reserve Banks 6
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks 7
July 31
Aug. 14
Aug. 28
Sept. 11
Sept. 25
Oct. 9
Oct. 23
Nov. 6
Nov. 20?
24,256
22,019
19,043
2,977
43,298
42,608
690
1,284
152
483
22,840
22,935
19,505
3,431
42,344
41,392
953
917
185
506
23,468
22,829
19,550
3,280
43,018
42,280
738
990
224
509
23,102'
23,052
19,689'
3,363'
42,791'
41,841'
950'
1,088
225
610
43,509
21,887
18,880
3,008
43,509
42,838
672
1,392
196
669
44,800
22,705
19,766
2,939
44,800
44,133
667
1,171
212
656
25,553
23,067
19,971
3,097
45,523
44,876
647
1,395
195
627
25,232
22,831
20,294
2,538
45,525
44,733
793
1,118
169
649
25,645
22,151
19,663
2,488
45,307
44,485
823
1,075
151
598
26,320
22,528
20,138
2,391
46,458
45,477
980
1,178
104
522
1. Excludes required clearing balances and adjustments to compensate for
float.
2. Dates refer to the maintenance periods in which the vault cash can be used to
satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
3. Equal to all vault cash held during the lagged computation period by
institutions having required reserve balances at Federal Reserve Banks plus the
amount of vault cash equal to required reserves during the maintenance period at
institutions having no required reserve balances.
4. Total vault cash at institutions having no required reserve balances less the
amount of vault cash equal to their required reserves during the maintenance
period.
5. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
1.13
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
7. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
8. Before February 1984, data are prorated monthly averages of weekly
averages; beginning February 1984, data are prorated monthly averages of
biweekly averages.
NOTE. These data also appear in the Board's H.3 (502) release. For address, see
inside front cover.
FEDERAL FUNDS AND REPURCHASE AGREEMENTS
Large Member Banks1
Averages of daily figures, in millions of dollars
1985 week ending Monday
By maturity and source
Sept. 16
Sept. 23
Sept. 30
Oct. 7
Oct. 14
Oct. 21
Oct. 28
Nov. 4
Nov. 11
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 All other
65,553
60,513'
62,778'
65,744'
65,966'
61,501
58,757
67,972
70,071
27,636
9,735
25,186'
25,896
9,877
25,469
24,687
10,673
26,760
26,195
10,985'
25,290
28,238'
9,926'
25,641'
28,620
9,753
26,098
28,543
9,967
26,104
28,640
10,392
26,535
32,252
9,768
25,562
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 All other
9,751
9,507
9,596
8,998'
9,582'
8,822
8,490
8,974
9,609
7,735
10,172
7,900
7,792
9,931
7,535
7,494
9,770
7,542
7,290
9,214'
7,223
7,629'
9,833'
7,348'
7,114
9,468
7,314
7,073
9,565
7,506
7,086
9,602
7,514
8,104
9,477
7,765
30,163
8,286
29,79c
7,863
32,734
7,662
29,495
9,080
27,025
7,992
32,516
8,783
32,175
8,383
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
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
30,977
9,011
30,925
9,316
A6
DomesticNonfinancialStatistics • January 1986
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit2
Short-term adjustment credit
and seasonal credit1
Federal Reserve
Bank
Rate on
11/25/85
71/!
Previous
rate
Effective
date
5/20/85
5/20/85
5/24/85
5/21/85
5/20/85
5/20/85
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San Francisco...
IV2
First 60 days
of borrowing
Next 90 days
of borrowing
Previous
rate
Previous
rate
Rate on
11/25/85
Previous
rate
9
9V2
10
IVi
8'/i
Range of rates in recent years
Effective date
In effect Dec. 31, 1973
1974— Apr. 25
30
Dec. 9
16
1975— Jan.
6
10
24
Feb. 5
7
Mar. 10
14
May 16
23
1976— Jan.
19
23
Nov. 22
26
1977— Aug. 30
31
Sept. 2
Oct. 26
1978— Jan.
9
20
May 11
12
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
V/2
7l/2-8
8
73/4-8
73/4
7i/>
8
8
73/4
73/4
7'/4-7 3 /4
73/4
71/4-73/4
7'/4
63/4-71/4
63/4
63/4
71/4
63/4
6V4
6'/4
6'/4
6-6'A
6
6
6
5 V2-6
SVi
51/2
5'/4-5'/2
51/4
5Vi
51/4
5'/4
51/4-53/4
51/4
51/4-53/4
53/4
6
6-6'/:
6'/2
6'/2-7
7
Effective date
July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
71/4
73/4
8
8-8'/2
il/2-9l/2
9l/2
53/4
53/4
6
6'/2
6>/2
1
7
July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
lo-iovi
Feb. 15
19
May 29
30
June 13
16
Julv 28
29
Sept. 26
Nov. 17
Dec. 5
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13-14
5
1. A temporary simplified seasonal program was established on Mar. 8, 1985,
and the interest rate was set at &V2 percent at that time. On May 20 this rate was
lowered to 8 percent.
2. Applicable to advances when exceptional circumstances or practices involve
only a particular depository institution and to advances when an institution is
under sustained liquidity pressures. As an alternative, for loans outstanding for
more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes
into account rates on market sources of funds, but in no case will the rate charged
be less than the basic rate plus one percentage point. Where credit provided to a
particular depository institution is anticipated to be outstanding for an unusually
prolonged period and in relatively large amounts, the time period in which each
rate under this structure is applied may be shortened. See section 201.3(b)(2) of
Regulation A.
3. Rates for short-term adjustment credit. For description and earlier data see
the following publications of the Board of Governors: Banking and Monetary
7-7 !/4
8'/2
10
10V2
I0V^-11
11
11-12
12
9
9>/i
5/20/85
5/20/85
5/24/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
10
3
Range(or
level)—
All F.R.
Banks
71/4
61/4-63/4
Effective date
for current rates
Rate on
11/25/85
SV2
Rate on
11/25/85
IV2
5/20/85
5/21/85
5/20/85
5/20/85
5/20/85
5/21/85
After 150 days
F.R.
Bank
of
N.Y.
71/4
71/4
73/4
8
m
8 Vi
9V2
9V2
10
10'/2
10V2
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
13
14
Effective date
Range (or
level)—
All F.R.
Banks
1981— May 8
Nov. 2
6
Dec. 4
14
13-14
13
12
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
im-12
1984— Apr.
8V2-9
9
SV2—9
8'/>
8
9
13
Nov. 21
26
Dec. 24
1985— May 20
24
In effect Nov. 25, 1985
llVi
11-11'/!
11
lOVi
10-10'/2
10
9lA-lO
9V2
9-91/2
9
8Vi-9
8'/2-9
8Vi
F.R.
Bank
of
N.Y.
14
13
13
12
11 Vi
11V2
11
11 l
ld /2
10
10
9>/2
9V2
9
9
9
m
8'/2
9
9
%Vi
&l/2
8
7>/i-8
IVi
IVi
IV2
7Vi
m
Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980,
1981, and 1982.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than 4 weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for
applying the surcharge was changed from a calendar quarter to a moving 13-week
period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
1.15
RESERVE REQUIREMENTS OF DEPOSITORY
A7
INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Effective date
7
9Vi
Time and savings2-*
Savings
Time4
$0 million-$5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
Over $5 million, by maturity
30-179 days
180 days to 4 years
4 years or more
161/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
Percent
Effective date
3
12
1/1/85
1/1/85
Nonpersonal time deposits9
By original maturity
Less than 1 Vi years
1 Vi years or more
3
0
10/6/83
10/6/83
3
11/13/80
Net transaction accounts7
$0-$29.8 million
Over $29.8 million
8
3/16/67
ll3/4
123/4
3
2V4
1
3/16/67
1/8/76
10/30/75
6
2^
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. Requirement schedules are graduated, and each deposit interval applies to
that part of the deposits of each bank. Demand deposits subject to reserve
requirements were gross demand deposits minus cash items in process of
collection and demand balances due from domestic banks.
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.
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 of borrowings from unrelated
banks abroad was also reduced to zero from 4 percent.
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. 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.
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. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
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 Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and
was eliminated beginning July 24, 1980. Managed liabilities are defined as large
time deposits, Eurodollar borrowings, repurchase agreements against U.S.
government and federal agency securities, federal funds borrowings from nonmember institutions, and certain other obligations. In general, the base for the
marginal reserve requirement 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
reserve computation periods 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 7Vi
percent above the base used to calculate the marginal reserve in the statement
Depository institution requirements
after implementation of the
Monetary Control Act 6
Eurocurrency liabilities
All types
Alet demand2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Type of deposit, and
deposit interval5
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. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97320) provides that $2 million of reservable liabilities (transaction accounts,
nonpersonal time deposits, and Eurocurrency liabilities) of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the next succeeding calendar year by 80 percent of the
percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be
made in the event of a decrease. Effective Dec. 9, 1982, the amount of the
exemption was established at $2.1 million. Effective with the reserve maintenance
period beginning Jan. 1, 1985, the amount of the exemption is $2.4 million. In
determining the reserve requirements of a depository institution, the exemption
shall apply in the following order: (1) nonpersonal money market deposit accounts
(MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts
(NOW accounts less allowable deductions); (3) net other transaction accounts;
and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those
with the highest reserve ratio. With respect to NOW accounts and other
transaction accounts, the exemption applies only to such accounts that would be
subject to a 3 percent reserve requirement.
6. For nonmember banks and thrift institutions that were not members of the
Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3,
1987. For banks that were members on or after July 1, 1979, but withdrew on or
before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends
on Oct. 24, 1985. For existing member banks the phase-in period of about three
years was completed on Feb. 2, 1984. All new institutions will have a two-year
phase-in beginning with the date that they open for business, except for those
institutions that have total reservable liabilities of $50 million or more.
7. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers (in excess
of three per month) for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts offered by institutions not subject to the
rules of the Depository Institutions Deregulation Committee (DIDC) that permit
no more than six preauthorized, automatic, or other transfers per month of which
no more than three can be checks—are not transaction accounts (such accounts
are savings deposits subject to time deposit reserve requirements.)
8. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions determined as of June 30 each year. Effective Dec. 31,
1981, the amount was increased accordingly from $25 million to $26 million;
effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million;
and effective Jan. 1, 1985, to $29.8 million.
9. In general, nonpersonal time deposits are time deposits, including savings
deposits, that are not transaction accounts and in which a beneficial interest is
held by a depositor that is not a natural person. Also included are certain
transferable time deposits held by natural persons, and certain obligations issued
to depository institution offices located outside the United States. For details, see
section 204.2 of Regulation D.
NOTE. Required reserves must be held in the form of deposits with Federal
Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a
Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions.
A8
DomesticNonfinancialStatistics • January 1986
1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions1
Percent per annum
Commercial banks
In effect Nov. 30, 1985
Type of deposit
Savings and loan associations and
mutual savings banks (thrift institutions)1
In effect Nov. 30, 1985
Percent
1
2
3
4
Savings
Negotiable order of withdrawal accounts
Negotiable order of withdrawal accounts of $1,000 or more 2
Money market deposit account 2
Time accounts
5 7-31 days of less than $1,00©4
6 7-31 days of $1,000 or more2
7 More than 31 days
1. Effective Oct. 1,1983, restrictions on the maximum rates of interest payable
by commercial banks and thrift institutions on various categories of deposits were
removed. For information regarding previous interest rate ceilings on all categories 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.
i. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to
minimum deposit requirements. Effective Jan. 1, 1985, the minimum denomination requirement was lowered from $2,500 to $1,000.
3. Effective Dec. 14,1982, depository institutions are authorized to offer a new
account with a required initial balance of $2,500 and an average maintenance
balance of $2,500 not subject to interest rate restrictions. Effective Jan. 1, 1985,
5Vi
5Vi
(3)
5 Vi
Effective date
Percent
1/1/84
12/31/80
1/5/83
12/14/82
5 Vi
5V*
1/1/84
1/5/83
10/1/83
SVi
3
()
Effective date
7/1/79
12/31/80
1/5/83
12/14/82
9/1/82
1/5/83
10/1/83
the minimum denomination and average maintenance balance requirements was
lowered to $1,000. No minimum maturity period is required for this account, but
depository institutions must reserve the right to require seven days, notice before
withdrawals. When the average balance is less than $1,000, the account is subject
to the maximum ceiling rate of interest for NOW accounts; compliance with the
average balance requirement may be determined over a period of one month.
Depository institutions may not guarantee a rate of interest for this account for a
period longer than one month or condition the payment of a rate on a requirement
that the funds remain on deposit for longer than one month.
4. Effective Jan. 1,1985, the minimum denomination requirement was lowered
from $2,500 to $1,000. Deposits of less than $1,000 issued to governmental units
continue to be subject to an interest rate ceiling of 8 percent.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1985
Type of transaction
1982
1983
1984
Mar.
May
Apr.
June
July
Sept.
Aug.
U . S . GOVERNMENT SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
17,067
8,369
0
3,000
18,888
3,420
0
2,400
20,036
8,557
0
7,700
916
554
0
500
6,026
0
0
0
274
417
0
800
2,099
0
0
0
0
0
0
200
3,056
0
0
0
1,521
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
312
0
17,295
-14,164
0
484
0
18,887
-16,553
87
1,126
0
16,354
-20,840
0
961
0
1,299
0
0
245
0
1,129
-1,463
0
0
0
2,443
-2,945
0
0
0
1,312
0
0
0
0
1,238
-1,778
0
0
0
4,895
-3,275
0
0
350
1,028
-1,457
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,797
0
-14,524
11,804
1,896
0
-15,533
11,641
1,638
0
-13,709
16,039
465
0
-1,299
0
846
0
-1,114
1,463
0
0
-2,101
1,940
0
0
-1,312
0
0
0
-1,153
1,778
6
0
-3,760
1,825
0
0
-1,028
1,457
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
388
0
-2,172
2,128
890
0
-2,450
2,950
536
300
-2,371
2,750
0
0
0
0
108
0
-16
0
0
0
42
600
0
0
0
0
0
0
-85
0
6
0
-1,136
800
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
307
0
-601
234
383
0
-904
1,962
441
0
-275
2,052
0
0
0
0
0
0
0
0
0
0
-384
405
0
0
0
0
0
0
0
0
0
0
0
650
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
19,870
8,369
3,000
22,540
3,420
2,487
23,476
7,553
7,700
2,343
554
500
7,321
0
0
274
417
800
2,099
0
0
0
0
200
3,068
0
0
1,521
350
0
543,804
543,173
578,591
576,908
808,986
810,432
54,718
57,288
65,845
64,001
78,870
77,597
81,016
83,782
60,980
59,165
64,263
64,209
73,925
72,347
130,774
130,286
105,971
108,291
139,441
139,019
4,922
7,429
11,540
4,088
21,716
29,168
2,801
2,801
10,486
10,486
1,928
1,928
14,029
14,029
8,358
12,631
8,908
1,351
12,931
-9,668
4,865
-2,015
3,014
-408
0
0
189
0
0
292
0
0
256
0
0
0
0
0
0
8
0
0
60
0
0
46
0
0
30
0
0
1
18,957
18,638
8,833
9,213
1,205
817
445
825
983
452
1,336
1,867
120
120
2,439
2,439
354
354
3,522
3,522
130
-672
132
-380
531
-540
-60
-46
-30
-1
36 Repurchase agreements, net
1,285
-1,062
-418
0
0
0
0
0
0
0
37 Total net change in System Open Market
Account
9,773
10,897
6,116
971
13,462
-10,208
4,805
-2,061
2,984
-408
Matched transactions
26
27
28
Gross purchases
Repurchase agreements
Gross purchases
Gross sales
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
33
34
Repurchase agreements
Gross purchases
Gross sales
35 Net change in federal agency obligations
*
BANKERS ACCEPTANCES
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.
A10
1.18
DomesticNonfinancialStatistics • January 1986
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements
Millions of dollars
Wednesday
1985
Account
Oct. 2
End of month
1985
Oct. 16
Oct. 9
Oct. 23
Oct. 30
Sept.
Aug.
Oct.
Consolidated condition statement
ASSETS
11,090
4,618
516
11,090
4,718
523
11,090
4,718
524
11,090
4,718
526
11,090
4,718
529
11,090
4,618
484
11,090
4,618
518
11,090
4,718
524
1,067
0
3,926
0
887
0
2,355
0
1,092
0
2,068
0
2,520
0
886
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
Acceptances—Bought outright
6 Held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements . . . .
U.S. government securities
Bought outright
9
Bills
0
Notes
11
Bonds
2
Total bought outright1
Held under repurchase agreements . . . .
14 Total U.S. government securities
0
0
0
0
0
0
0
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
8,227
0
79,360
66,072
24,399
169,831
0
169,831
81,330
66,072
24,399
171,801
0
171,801
79,767
66,072
24,399
170,238
0
170,238
81,744
66,072
24,399
172,215
0
172,215
71,431
66,072
24,399
161,902
0
161,902
79,288
66,422
24,399
170,109
0
170,109
79,231
66,072
24,399
169,702
0
169,702
78,234
66,072
24,399
168,705
0
168,705
15 Total loans and securities .
179,125
183,954
179,352
182,797
171,221
180,404
180,449
177,818
8,390
594
6,205
595
12,084
595
6,991
596
6,117
594
5,445
590
4,297
594
5,843
595
5,646
6,911
5,157
7,756
5,512
7,439
6,218
7,620
6,392
7,734
4,591
7,260
4,963
8,073
6,530
7,606
216,890
219,998
221,314
220,556
208,395
214,482
214,602
214,724
172,285
173,472
174,258
173,124
172,991
172,712
171,476
173,590
27,708
3,001
214
459
28,894
4,932
214
482
26,774
2,773
144
674
32,254
2,590
180
372
21,894
1,186
221
377
25,665
3,656
223
389
27,162
4,174
535
497
27,119
1,528
268
372
31,382
34,522
30,365
35,396
23,678
29,933
32,368
29,287
7,061
2,145
5,845
2,337
10,584
2,281
5,973
2,234
5,762
2,131
5,597
2,232
4,228
2,272
5,508
2,335
212,873
216,176
217,488
216,727
204,562
210,474
210,344
210,720
1,755
1,626
636
1,757
1,626
439
1,758
1,626
442
1,759
1,626
444
1,762
1,626
445
1,748
1,626
634
1,753
1,626
879
1,762
1,626
616
33 Total liabilities and capital accounts
216,890
219,998
221,314
220,556
208,395
214,482
214,602
214,724
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
125,921
125,778
125,104
122,909
123,327
124,404
126,128
123,099
16 Cash items in process of collection...
17 Bank premises
Other assets
18 Denominated in foreign currencies 2 .
19 AH other 3
20 Total assets.
LIABILITIES
21 Federal Reserve notes
Deposits
22 To depository institutions
23 U.S. Treasury—General account.
24 Foreign—Official accounts
25 Other
26 Total deposits.
27 Deferred availability cash items
28 Other liabilities and accrued dividends4 .
29 Total liabilities .
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
39 Special drawing rights certificate account
40 Other eligible assets
41 U.S. government and agency securities ..
205,711
33,426
172,285
206,229
32,757
173,472
206,391
32,133
174,258
206,568
33,444
173,124
206,879
33,888
172,991
204,511
31,799
172,712
205,459
33,983
171,476
206,884
33,294
173,590
11,090
4,618
0
156,577
11,090
4,718
0
157,664
11,090
4,718
0
158,450
11,090
4,718
0
157,316
11,090
4,718
0
157,183
11,090
4,618
0
157,004
11,090
4,618
0
155,768
11,090
4,718
0
157,782
42 Total collateral
172,285
173,472
174,258
173,124
172,991
172,712
171,476
173,590
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. Assets shown in this line are revalued monthly at market exchange rates.
3. Includes special investment account at Chicago of Treasury bills maturing
within 90 days.
4. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
1985
Type and maturity groupings
End of month
1985
Oct. 31
Oct. 2
1 Loans—Total
2 Within 15 days
6
Within 15 days
9 U.S. government securities—Total
10 Within 15 days 1
11 16 days to 90 days
13
14
Over 1 year to 5 years
Over 5 years to 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18 16 days to 90 days
20
21
22
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
Oct. 9
Oct. 16
Oct. 23
Oct. 30
Aug. 30
Sept. 30
1,067
981
86
0
3,926
3,833
93
0
887
820
67
0
2,355
2,317
38
0
1,092
1,046
46
0
2,153
2,074
79
0
2,520
2,452
68
0
886
829
57
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
169,831
6,975
38,545
53,127
34,855
14,866
21,463
171,801
5,987
39,243
55,387
34,855
14,866
21,463
170,238
6,577
37,102
55,375
34,865
14,856
21,463
172,215
8,340
37,294
55,397
34,865
14,856
21,463
161,902
5,848
30,880
53,990
34,865
14,856
21,463
170,109
6,209
35,438
56,898
35,235
14,866
21,463
169,702
5,823
38,796
53,899
34,855
14,866
21,463
168,705
1,133
37,043
58,933
35,277
14,856
21,463
8,227
15
529
1,909
4,168
1,207
399
8,227
105
581
1,766
4,168
1,208
399
8,227
106
566
1,866
4,078
1,212
399
8,227
99
579
1,803
4,169
1,178
399
8,227
84
668
1,757
4,141
1,178
399
8,227
213
475
1,813
4,070
1,257
399
8,227
162
529
1,762
4,109
1,266
399
8,227
84
668
1,757
4,141
1,178
399
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
DomesticNonfinancialStatistics • January 1986
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE
Billions of dollars, averages of daily figures
Item
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec.
Mar.
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
May
June
July
Aug.
Sept.
Oct.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS1
1 Total reserves2
Apr.
32.10
34.28
36.14
39.08
40.47
40.71
41.32
42.18
42.61
43.19
43.51
43.65
31.46
31.61
31.78
158.10
33.65
33.83
33.78
170.14
35.36
35.37
35.58
185.49
35.90
38.50
38.23
199.03
38.88
39.94
39.71
202.95
39.39
40.26
39.97
203.56
39.99
40.52
40.52
205.35
40.97
41.64
41.27
207.66
41.50
42.01
41.75
208.83
42.12
42.69
42.37
211.15
42.22
42.87
42.84
212.39
42.46
43.09
42.89
213.48
42.60
43.22
43.75
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
32.82
35.01
36.86
40.13
40.07
41.25
40.64
41.96
42.41
32.18
32.33
32.50
160.94
34.37
34.56
34.51
173.17
36.09
36.09
36.30
188.76
36.94
39.55
39.28
202.02
38.47
39.53
39.30
200.86
39.93
40.80
40.52
203.42
39.31
39.84
39.84
204.54
40.75
41.42
41.05
207.99
41.30
41.81
41.55
210.26
41.92
41.85
38.89
40.70
40.49
41.65
41.05
42.35
42.80
42.96
44.45
45.47
41.29
41.44
41.61
170.47
41.22
41.41
41.35
180.52
38.12
38.12
38.33
192.36
37.51
40.09
39.84
202.59
38.90
40.03
39.73
201.29
40.33
40.77
40.91
203.81
39.72
40.45
40.25
204.94
41.15
41.88
41.45
208.39
41.70
42.23
41.95
210.65
41.89
42.50
42.14
211.60
43.16
43.83
43.78
213.05
44.28
44.89
44.71
214.71
41.52 41.93
42.56
43.19
42.09 42.59
41.77 42.56' 42.99
211.23 211.82 212.99
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit3
Required reserves
Monetary base 4
1. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
2. Total reserves not adjusted for discontinuities consist of reserve balances
with Federal Reserve Banks, which exclude required clearing balances and
adjustments to compensate for float, plus vault cash used to satisfy reserve
requirements. Such vault cash consists of all vault cash held during the lagged
computation period by institutions having required reserve balances at Federal
Reserve Banks plus the amount of vault cash equal to required reserves during the
maintenance period at institutions having no required reserve balances.
3. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
4. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate for float at Federal
Reserve Banks and the currency component of the money stock less the amount
of vault cash holdings of thrift institutions that is included in the currency
component of the money stock plus, for institutions not having required reserve
balances, the excess of current vault cash over the amount applied to satisfy
current reserve requirements. After the introduction of contemporaneous reserve
requirements (CRR), currency and vault cash figures are measured over the
weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock and the remaining items seasonally
adjusted as a whole.
5. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with implementation of the Monetary Control Act or other regulatory changes to
reserve requirements.
NOTE. Latest monthly and biweekly figures are available from the Board's
H.3(502) statistical release. Historical data and estimates of the impact on
required reserves of changes in reserve requirements are available from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Billions of dollars, averages of daily figures
1985
Item 1
1981
Dec.
1982
Dec.
1983
Dec.
1984
Dec.
July
Aug/
Sept/
Oct.
Seasonally adjusted
606.0
2,514.0
3,138.2
3,723.6
6,413.5
611.9
2,528.7
3,164.5
3,754.4
6,469.6
611.3
2,533.4
3,174.5
n.a.
n.a.
165.4
5.9
260.9
163.6
167.1
5.9
264.1
168.9
167.9
5.9
266.8
171.3
169.0
5.9
264.0
172.4
1,813.3
623.3
1,894.8
623.7
1,908.0
624.2
1,916.8
635.8
1,922.1
641.1
133.4
173.6
122.6
166.0
123.2
172.8
124.2
176.1
124.6
177.1
125.1
179.3
379.8
471.7
350.7
433.8
387.0
498.6
388.4
500.1'
384.1
494.3
382.8
491.6
381.8
489.6
441.8
1,794.4
2,235.8
2,596.4'
4,255.8
480.8
1,954.9
2,446.8
2,854.7
4,649.8
528.0
2,188.8
2,701.8
3,168.8
5,177.2
558.5
2,371.7
2,995.0
3,539.4
5,927.1
124.0
4.4
235.2
78.2
134.3
4.3
238.6
103.5
148.4
4.9
243.5
131.3
158.7
5.2
248.6
146.0
1,352.6
441.4
1,474.0
492.0
1,660.8
512.9
Savings deposits 9
Commercial Banks
13 Thrift institutions
158.6
185.8
163.5
194.4
Small denomination time deposits 9
Commerical Banks
15 Thrift institutions
347.8
475.8
1 Ml
? M2
M3
4 L
5
7
a
9
Ml components
Currency 2
Travelers checks 3
Demand deposits4
Other checkable deposits 5
1
0
n
Nontransactions components
In M26
In M3 only7
6
1.
2
1
4
595.8
2,490.6'
3,114.4'
3,686.2'
6,351.3'
1
7
16
Money market mutual funds
General purpose and broker/dealer
Institution-only
150.6
38.0
185.2
51.1
138.2
43.2
167.5
62.7
175.8
65.0
176.7
63.6
176.6
62.3
176.7
63.3
18
1
9
Large denomination time deposits 10
Commercial Banks 11
Thrift institutions
247.5
54.6
262.0
66.2
228.9
101.9
264.4
151.8
265.8'
154.2
267.6
153.7
272.7
155.7
276.9
156.1
20
Debt components
Federal debt
Non-federal debt
825.9
3,429.9
979.2
3,670.6
1,173.0
4,004.3
1,367.3
4,559.8
1,478.9
4,872.4'
1,495.8
4,917.8
1,505.5
4,964.1
n.a.
n.a.
21
Not seasonally adjusted
V Ml
73 M2
74 M3
75 L
26
452.2
1,798.7
2,243.4
2,604.7
4,251.1
491.8
1,959.6
2,454.4
2,859.5
4,644.2
539.7
2,194.0
2,709.2
3,172.7
5,171.6
570.4
2,376.7
3,002.1
3,540.9
5,921.0'
599.1
2,4%.6
3,11^
3,688.3'
6,328.1'
601.6
2,507.3
3,133.1
3,715.7
6,391.4
608.6
2,517.4
3,152.7
3,737.9
6,451.4
611.1
2,530.1
3,169.0
n.a.
n.a.
126.2
4.1
243.4
78.5
136.5
4.0
247.2
104.1
150.5
4.6
252.2
132.4
160.9
4.9
257.4
147.2
166.8
6.6
262.2
163.5
167.7
6.5
260.9
166.4
167.6
6.2
265.5
169.3
168.6
5.9
265.4
171.3
1,346.5
444.7
1,467.8
494.8
1,654.2
515.2
1,806.3
625.4
1,897.5'
619.9
1,905.7
625.8
1,908.8
635.4
1,918.9
639.0
77
28
79
30
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M2«
M3 only7
33
Money market deposit accounts
Commercial banks
Thrift institutions
n.a.
.0
26.3
16.9
230.5
148.7
267.1
147.9
313.0
171.1'
317.7
174.3
321.2
175.5
324.4
176.8
35
Savings deposits 8
Commercial Banks
Thrift institutions
157.5
184.7
162.1
193.2
132.2
172.5
121.4
164.9
124.3'
175.1
124.0
175.5
123.7
176.1
124.6
179.1
37
Small denomination time deposits 9
Commercial Banks A
Thrift institutions
347.7
475.5
380.1
471.7
351.1
434.2
387.6
499.4
386.4
497.5'
385.4
494.0
385.2
492.3
384.9
493.3
39
Money market mutual funds
General purpose and broker/dealer
Institution-only
150.6
38.0
185.2
51.1
138.2
43.2
167.5
62.7
175.8
65.0
176.7
63.6
176.6
62.3
176.7
63.3
Thrift institutions
251.7
54.4
265.2
65.9
230.8
101.4
265.9
151.1
264.9
154.3
269.4
155.1
274.4
156.3
277.9
157.4
Debt components
Federal debt
Non-federal debt
823.0
3,428.2
976.4
3,667.7
1,170.2
4,001.4
1,364.7
4,556.2
1,475.8
4,852.3'
1,495.8
4,895.6
1,506.9
4,944.6
34
36
38
40
41
42
43
44
Large denomination time deposits 10
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • January 1986
NOTES TO TABLE 1.21
1. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of commercial banks; (2) travelers checks of nonbank issuers; (3) 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 (4) other checkable deposits
(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer
service (ATS) accounts at depository institutions, credit union share draft
accounts, and demand deposits at thrift institutions. The currency and demand
deposit components exclude the estimated amount of vault cash and demand
deposits respectively held by thrift institutions to service their OCD liabilities.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all commercial banks and overnight Eurodollars issued to U.S. residents
by foreign branches of U.S. banks worldwide, MMDAs, savings and smalldenomination time deposits (time deposits—including retail RPs—in amounts of
less than $100,000), and balances in both taxable and tax-exempt general purpose
and broker/dealer money market mutual funds. Excludes individual retirement
accounts (IRA) and Keogh balances at depository institutions and money market
funds. Also excludes all balances held by U.S. commercial banks, money market
funds (general purpose and broker/dealer), foreign governments and commercial
banks, and the U.S. government. Also subtracted is a consolidation adjustment
that represents the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposits.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by commercial banks and thrift institutions,
term Eurodollars held by U.S. residents at foreign branches of U.S. banks
worldwide and at all banking offices in the United Kingdom and Canada, and
balances in both taxable and tax-exempt, institution-only money market mutual
funds. Excludes amounts held by depository institutions, the U.S. government,
money market funds, and foreign banks and official institutions. Also subtracted is
a consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market mutual funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are on an end-of-month basis.
2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
commercial banks. Excludes the estimated amount of vault cash held by thrift
institutions to service their OCD liabilities.
3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
4. Demand deposits at commercial banks and foreign-related institutions 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. Excludes the estimated amount of demand deposits held at
commercial banks by thrift institutions to service their OCD liabilities.
5. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions. Other
checkable deposits seasonally adjusted equals the difference between the seasonally adjusted sum of demand deposits plus OCD and seasonally adjusted demand
deposits. Included are all ceiling free "Super NOWs," authorized by the
Depository Institutions Deregulation committee to be offered beginning Jan. 5,
1983.
6. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker/dealer), MMDAs, and savings and small
time deposits, less the consolidation adjustment that represents the estimated
amount of demand deposits and vault cash held by thrift institutions to service
their time and savings deposits liabilities.
7. Sum of large time deposits, term RPs and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by institution-only money market funds.
8. Savings deposits exclude MMDAs.
9. Small-denomination time deposits—including retail RPs— are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
NOTE: Latest monthly and weekly figures are available from the Board's H.6
(508) release. 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.
Monetary and Credit Aggregates
A15
1.22 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1985
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
DEBITS TO
2
Demand deposits
1 All insured banks
2 Major New York City banks
3 Other banks
4 ATS-NOW accounts 3
5 Savings deposits4
90,914.4
37,932.9
52,981.5
1,036.2
720.3
109,642.3
47,769.4
61,873.1
1,405.5
741.4
128,440.8
57,392.7
71,048.1
1,588.7
633.1
156,513.2
70,621.4
85,891.8
1,689.3
589.0
149,252.8
66,394.3
82,858.4
1,771.1
636.4
146,714.9
66,615.5
80,099.4
1,614.3
544.4
157,128.3
69,952.8
87,175.5
1,870.1
584.3
147,455.5
65,645.6
81,809.9
2,008.8
550.7
159,593.3
72,765.4
86,827.9
2,465.3
509.1
324.2
1,287.6
211.1
14.5
4.5
379.7
1,528.0
240.9
15.6
5.4
434.4
1,843.0
268.6
15.8
5.0
515.4
2,183.9
316.5
15.4
5.0
484.6
2,079.6
300.2
16.1
5.4
471.4
2,104.9
286.5
14.4
4.6
506.4
2,131.4
314.2
16.4
4.9
469.6
1,965.4
291.5
17.1
4.6
510.9
2,326.3
308.9
20.6
4.2
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
Savings deposits 4
11
12
13
14
15
16
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA5
Savings deposits4
Not seasonally adjusted
DEBITS TO
91,031.8
38,001.0
53,030.9
1,027.1
720.0
109,517.6
47,707.4
64,310.2
1,397.0
567.4
742.0
128,059.1
57,282.4
70,776.9
1,579.5
848.8
632.9
151,536.1
67,422.3
84,113.8
1,946.1
1,221.4
644.4
151,342.3
67,249.3
84,093.0
1,775.5
1,146.7
621.1
148,651.5
67,999.4
80,652.1
1,744.0
1,077.9
549.7
157,898.2
70,496.1
87,402.1
1,807.5
1,183.3
586.0
152,985.1
68,401.8
84,583.3
1,770.5
1,201.2
538.4
148,788.8
68,967.9
79,820.9
2,289.9
1,192.2
490.1
379.9
1,510.0
240.5
15.5
2.8
5.4
433.5
1,838.6
267.9
15.7
3.5
5.0
498.1
2,138.6
308.4
17.2
4.2
5.4
505.5
2,205.8
312.7
16.2
3.9
5.2
480.6
2,125.9
290.8
15.5
3.5
4.6
509.5
2,185.9
314.8
15.9
3.5
4.8
499.3
2,189.4
307.4
15.3
3.8
4.5
475.0
2,216.6
282.9
19.4
3.8
4.1
DEPOSIT TURNOVER
Demand deposits2
17 All insured banks
18 Major New York City banks
19 Other banks
20 ATS-NOW accounts 3
21 MMDA5
22 Savings deposits 4
325.0
1,295.7
211.5
14.4
4.5
1. Annual averages of monthly figures.
2. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
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. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
5. Money market deposit accounts.
NOTE. Historical data for demand deposits are available back to 1970 estimated
in part from the debits series for 233 SMSAs that were available through June
1977. Historical data for ATS-NOW and savings deposits are available back to
July 1977. Back data are available on request from the Banking Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
A16
1.23
DomesticNonfinancialStatistics • January 1986
LOANS AND SECURITIES
All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1984
Oct.
Nov.
1985
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases2
5 Commercial and industrial
6
Bankers acceptances held 3 ..
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees 4 ....
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions . . .
18 Lease financing receivables...
19 All other loans
1,682.8
1,701.0
1,714.8
1,724.0
1,742.3
1,758.9
1,765.8
1,785.3
1,799.1
1,814.3
1,824.8
1,838.0
257.0
141.5
1,284.3
463.0
5.6
259.4
141.1
1,300.6
467.1
6.0
260.2
139.9
1,314.7
468.1
5.2
260.1
142.4
1,321.5
468.4
5.0
265.8
140.8
1,335.6
473.6
6.1
266.9
138.7
1,353.3
480.8
6.4
261.1
140.1
1,364.6
481.3
5.4
265.9
142.1
1,377.3
483.7
4.9
266.6
144.5
1,388.0
483.9
4.7
271.0
145.5
1,397.8
484.4
5.1
270.9
148.2
1,405.7
485.7
5.0
272.5
151.1
1,414.4
487.4
4.7
457.3
446.7
10.6
367.7
243.5
30.3
461.1
450.7
10.3
371.8
246.7
30.2
462.9
453.3
9.6
375.6
251.0
31.4
463.4
453.7
9.7
377.9
254.6
31.9
467.4
457.0
10.4
382.1
257.7
31.6
474.4
463.7
10.7
385.8
261.9
32.8
475.9
465.2
10.7
389.9
265.5
35.1
478.7
468.7
10.0
393.8
268.7
37.5
479.2
469.7
9.5
397.4
271.5
40.0
479.3
469.9
9.4
401.4
274.9
40.3
480.7
471.2
9.5
405.3
277.4
36.7
482.8
473.7
9.1
408.3
279.3
38.1
31.1
40.6
31.2
40.4
31.3
40.3
31.2
39.9
30.9
39.6
30.6
39.5
31.2
39.4
31.5
39.4
31.2
39.4
31.6
39.6
32.3
39.6
32.5
40.1
41.4
11.7
8.5
15.1
31.5
42.3
11.9
8.4
15.3
35.3
44.2
11.5
8.3
15.5
37.2
47.0
11.4
7.9
15.6
35.7
46.7
11.4
7.9
15.8
38.4
46.9
11.1
7.7
16.1
39.9
47.1
10.8
7.8
16.4
40.1
47.5
10.5
7.8
16.7
40.1
47.4
10.3
7.6
16.9
42.3
47.8
10.4
7.2
17.3
43.1
48.7
10.1
6.5
17.5
45.8
48.7
9.9
6.8
17.6
45.8
Not seasonally adjusted
20 Total loans and securities2
1,684.0
1,701.9
1,725.8
1,732.0
1,740.4
1,755.0
1,766.0
1,781.4
1,800.0
1,807.9
1,818.1
1,836.4
21 U.S. government securities
22 Other securities
23 Total loans and leases2
24 Commercial and industrial....
25
Bankers acceptances held 3 ..
26
Other commercial and
industrial
27
U.S. addressees 4
28
Non-U.S. addressees 4 ....
29 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions . . .
37 Lease financing receivables...
38 All other loans
254.1
140.9
1,289.0
463.8
5.5
255.2
141.2
1,305.5
467.3
5.9
256.9
141.5
1,327.4
471.2
5.7
260.1
143.3
1,328.7
470.3
5.1
266.8
141.0
1,332.6
473.1
6.0
269.0
138.9
1,347.1
480.3
6.3
266.6
139.8
1,359.7
481.5
5.5
268.0
142.7
1,370.7
482.2
4.9
270.3
144.1
1,385.5
482.4
4.8
270.8
144.1
1,392.9
483.5
5.0
269.3
147.7
1,401.1
483.6
4.9
270.2
150.4
1,415.8
487.4
4.6
458.3
447.3
11.1
368.9
245.3
30.2
461.4
450.5
11.0
372.8
248.4
31.7
465.5
455.0
10.5
376.2
254.0
35.2
465.2
455.4
9.8
378.6
257.0
33.0
467.1
457.2
9.9
381.7
257.4
30.8
474.0
463.9
10.1
384.7
259.7
32.2
476.0
466.1
9.9
388.6
263.2
35.0
477.3
467.8
9.6
392.8
266.5
36.0
477.6
468.3
9.3
396.9
269.6
39.9
478.5
469.0
9.4
400.8
273.2
38.3
478.7
469.2
9.5
405.5
277.2
35.8
482.8
473.4
9.4
409.5
280.4
36.7
31.0
41.2
31.0
40.5
31.5
40.0
31.2
39.3
30.7
38.8
30.6
38.6
31.3
38.8
31.3
39.3
31.2
39.9
31.7
40.4
32.4
40.5
32.6
40.9
41.4
12.0
8.5
15.0
31.7
42.3
12.2
8.4
15.1
35.5
44.2
12.2
8.3
15.5
39.2
47.0
11.7
7.9
15.8
37.0
46.7
11.4
7.9
16.0
38.2
46.9
10.9
7.7
16.3
39.1
47.1
10.4
7.8
16.4
39.6
47.5
10.3
7.8
16.7
40.3
47.4
9.9
7.6
16.9
43.8
47.8
10.2
7.2
17.2
42.9
48.7
9.9
6.5
17.4
43.7
48.7
10.0
6.8
17.5
45.3
1. Data are prorated averages of Wednesday estimates for domestically chartered insured banks, based on weekly sample reports and quarterly universe
reports. For foreign-related institutions, data are averages of month-end estimates
based on weekly reports from large U.S. agencies and branches and quarterly
reports from all U.S. agencies and branches, New York investment companies
majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
NOTE. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
Commercial Banking Institutions
All
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1985
1984
Source
Nov.
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
3 Seasonally adjusted
4 Not seasonally adjusted
5 Net balances due to foreign-related
institutions, not seasonally
adjusted
1
2
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
112.0
117.5
108.5
111.1
102.5
104.8
113.9
117.4
116.9
119.4
105.2
108.4'
112.0
117.2
112.6'
114.9'
108.6'
107.4'
112.9'
114.8'
116.1
116.3'
118.8
120.4
145.0
150.5
140.5
143.1
138.8
141.1
146.8
150.2
147.2
149.7
138.8
141.9
142.0
147.2
146.7
149.0
146.9
145.8
144.1
146.0
146.3
146.4
145.4
147.0
-33.1
-32.0
-36.3
-32.8
-30.3
-33.5'
-30.0
-34.lr
-38.4'
-31.2'
-30.2
-26.6
-32.7
68.3
35.6
-31.4
69.0
37.6
-34.8
71.4
36.6
-31.6
70.5
38.9
-29.5
71.4
41.9
-32.4
74.9
42.5
-29.5 r
74.6
45.0
-32.5
76.5'
44.1
-38.3'
79.3
41.(V
-32.8'
76.0
43.2'
-30.7
74.8
44.1
-28.7
74.2
45.5
-.4
50.7
50.4
-.6
52.0
51.4
-1.5
53.1
51.6
-1.2
54.1
52.8
-.8
53.4
52.7
-1.1
51.8
50.7
-.5
52.4
52.0
-1.6
53.8
52.1
0.0
54.9
54.9
1.6
55.3
56.9
.5
56.1
56.6
2.1
55.5
57.6
84.0
87.0
81.1
81.1
82.3
82.2
90.1
91.1
92.0
92.0
85.4
86.0
85.5
88.3
86.5
86.3
87.1
83.4
87.4
86.8
90.8
88.4
88.4
87.5
17.3
10.4
16.1
12.5
14.7
18.5
13.0
15.8
11.8
12.8
14.6
15.4
22.6
20.9
17.4
14.9
24.9
23.1
16.7
13.4
15.3
16.8
3.8
5.4
323.0
322.9
325.8
327.3
324.8
325.6
325.4
324.9
329.9
330.3
332.6
330.1
331.2
329.1
326.8
326.4
323.2
322.3
325.1'
326.9'
330.3'
331.9'
334.4
335.4
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
7 Gross due from balances
8 Gross due to balances
9 Foreign-related institutions' net
positions with directly related
institutions, not seasonally
adjusted 5
10 Gross due from balances
11 Gross due to balances
Security RP borrowings
12 Seasonally adjusted®
13 Not seasonally adjusted
U.S. Treasury demand balances 7
14 Seasonally adjusted
15 Not seasonally adjusted
Time deposits, $100,000 or more 8
16 Seasonally adjusted
17 Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars. Includes averages of
Wednesday data for domestically 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.
4. Averages of daily figures for member and nonmember banks.
5. Averages of daily data.
6. Based on daily average data reported by 122 large banks.
7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
8. Averages of Wednesday figures.
NOTE. These data also appear in the Board's G. 10 (411) release. For address see
inside front cover.
A18
1.25
DomesticNonfinancialStatistics • January 1986
ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS1
Last-Wednesday-of-Month Series
Billions of dollars
1984
1985
Account
Dec/
Jan/
Feb/
Mar/
Apr/
May'
June'
July'
Aug/
Sept.
Oct.
1,865.9
377.6
242.7
135.0
22.9
1,465.4
127.0
1,338.4
477.2
378.3
256.1
226.9
1,856.1
381.2
245.1
136.1
24.2
1,450.8
125.4
1,325.4
470.2
380.9
258.2
216.1
1,875.9
382.2
248.1
134.1
27.6
1,466.0
128.8
1,337.3
477.0
383.3
259.0
218.0
1,883.4
383.7
251.1
132.5
23.7
1,476.0
126.0
1,350.0
483.2
386.9
261.4
218.5
1,899.2
383.9
250.4
133.5
23.5
1,491.8
130.9
1,360.9
482.1
390.7
265.2
222.9
1,908.6
390.3
254.4
135.9
23.5
1,494.9
124.0
1,370.8
483.4
395.8
268.5
223.0
1,927.3
392.1
255.3
136.8
23.1
1,512.1
123.1
1,388.9
484.3
400.0
272.1
232.6
1,948.5
392.3
256.1
136.2
22.3
1,534.0
133.0
1,401.0
485.9
405.6
276.1
233.4
1,952.1
393.7
254.2
139.6
24.2
1,534.1
128.6
1,405.5
484.6
409.3
280.0
231.5
1,969.9
397.0
254.4
142.6
26.4
1,546.5
129.1
1,417.5
489.2
412.8
282.1
233.4
1,979.1
396.3
249.3
147.0
25.0
1,557.8
131.7
1,426.1
488.8
418.3
285.1
233.9
13 Total cash assets
14 Reserves with Federal Reserve Banks
15 Cash in vault
16 Cash items in process of collection . . .
17 Demand balances at U.S. depository
institutions
18 Other cash assets
202.0
20.5
23.3
75.9
188.0
20.9
21.9
66.9
189.4
19.6
21.8
68.8
183.6
19.8
21.3
63.9
187.6
22.9
21.3
64.2
202.3
20.7
23.3
76.5
190.4
21.6
22.2
68.4
198.0
21.0
22.0
70.5
188.4
24.5
22.7
62.5
188.2
24.9
22.1
61.4
190.1
19.6
22.6
67.9
34.6
47.8
30.9
47.4
32.3
46.8
31.7
46.9
30.2
49.0
35.2
46.6
31.3
46.8
33.5
51.0
30.6
48.2
30.8
49.1
31.6
48.4
19 Other assets
196.8
191.8
195.4
188.5
188.6
183.4
189.4
194.5
180.8
185.8
178.1
20 Total assets/total liabilities and capital . . .
2,264.8
2,235.9
2,260.7
2,255.5
2,275.4
2,294.2
2,307.1
2,341.1
2,321.3
2,344.0
2,347.3
21
22
23
24
25
26
27
1,632.6
491.3
386.6
754.6
304.6
181.1
146.5
1,605.9
457.1
400.4
748.4
307.0
173.8
149.1
1,619.5
459.5
407.2
752.7
309.4
182.2
149.6
1,627.5
457.9
410.4
759.2
301.3
177.0
149.7
1,638.5
465.6
410.1
762.9
310.3
175.6
150.9
1,661.5
480.3
418.7
762.5
305.4
176.0
151.3
1,659.8
474.0
425.6
760.1
315.8
179.7
151.8
1,685.0
492.3
434.3
758.4
321.6
181.1
153.4
1,676.9
475.4
436.5
765.0
308.9
182.0
153.4
1,683.1
474.9
438.3
769.8
323.2
183.6
154.1
1,705.6
491.4
443.8
770.4
309.0
177.9
154.8
257.0
262.1
269.6
268.6
266.7
269.3
271.0
270.0
268.3
271.5
265.1
143.5
143.3
140.2
138.8
140.7
144.4
144.3
144.6
149.7
151.9
156.2
1,767.4
370.6
238.0
132.6
22.9
1,373.9
103.0
1,270.9
430.5
372.7
255.9
211.7
1,761.8
373.9
240.3
133.5
24.2
1,363.8
100.7
1,263.1
426.1
375.8
258.0
203.2
1,777.1
374.9
243.4
131.5
27.6
1,374.6
101.1
1,273.5
431.9
378.0
258.7
204.8
1,784.8
376.9
246.9
130.1
23.7
1,384.1
100.1
1,284.0
436.0
381.8
261.2
205.0
1,799.6
377.1
246.4
130.7
23.5
1,399.0
103.3
1,295.7
436.5
385.4
265.0
208.7
1,812.7
383.8
250.7
133.1
23.5
1,405.5
100.6
1,304.9
436.6
390.4
268.3
209.6
1,829.2
385.1
251.4
133.8
23.1
1,420.9
100.6
1,320.3
436.0
394.4
271.8
218.1
1,847.9
385.1
252.4
132.7
22.3
1,440.5
110.0
1,330.5
437.6
399.9
275.9
217.2
1,850.8
386.5
250.4
136.0
24.2
1,440.1
104.7
1,335.5
435.7
403.7
279.8
216.3
1,863.6
389.1
250.5
138.6
26.4
1,448.1
103.8
1,344.2
437.9
407.0
281.8
217.5
1,872.3
388.1
245.0
143.1
25.0
1,459.2
106.8
1,352.4
437.4
412.7
284.8
217.5
190.4
19.2
23.3
75.7
175.9
20.2
21.9
66.7
178.0
18.7
21.8
68.5
172.7
19.2
21.3
63.7
176.0
22.3
21.3
63.9
191.2
19.6
23.2
76.2
179.2
20.9
22.2
68.2
185.3
20.4
22.0
70.3
176.4
23.8
22.6
62.2
176.1
24.4
22.0
61.1
178.0
18.6
22.6
67.7
33.0
39.4
29.5
37.6
31.0
38.0
30.4
38.1
28.8
39.6
33.8
38.3
29.8
38.1
32.2
40.4
29.0
38.8
29.4
39.2
30.2
38.9
ALL COMMERCIAL BANKING
INSTITUTIONS 2
1 Loans and securities
2 Investment securities
3
U.S. government securities
4
Other
5 Trading account assets
6 Total loans
7
Interbank loans
8
Loans excluding interbank
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30 Loans and securities
31 Investment securities
32
U.S. government securities
ii
Other
34 Trading account assets
35 Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
41
All other
42 Total cash assets
43 Reserves with Federal Reserve Banks
44 Cash in vault
45 Cash items in process of collection . . .
46 Demand balances at U.S. depository
institutions
47 Other cash assets
48 Other assets
142.1
137.7
139.0
137.2
137.5
131.5
137.7
144.9
132.6
133.3
132.0
49 Total assets/total liabilities and capital...
2,099.9
2,075.4
2,094.2
2,094.7
2,113.1
2,135.4
2,146.2
2,178.1
2,159.8
2,173.0
2,182.3
50
51
52
53
54
55
56
1,589.2
484.7
385.6
718.9
243.5
123.6
143.7
1,563.3
450.8
399.3
713.2
247.1
118.5
146.5
1,575.4
453.1
406.1
716.2
247.6
124.3
146.9
1,582.4
451.7
409.2
721.6
240.6
124.8
147.0
1,593.8
459.3
408.9
725.6
248.5
122.6
148.3
1,618.4
473.8
417.5
727.1
246.1
122.4
148.6
1,617.2
467.7
424.3
725.2
253.8
126.1
149.1
1,642.3
486.0
433.0
723.3
258.4
126.8
150.7
1,631.9
468.9
435.1
727.9
249.6
127.4
150.7
1,636.6
468.3
437.0
731.4
259.0
125.9
151.5
1,659.5
484.9
442.4
732.2
248.0
122.7
152.1
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1. Data have been revised back to January 1984. Revised end-of-month data
from January 1984 through November 1984 are available on request from the
Banking Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
NOTE. Figures are partly estimated. They include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Loan and securities data for domestically chartered commercial banks are estimates for the last
Wednesday of the month based on a sample of weekly reporting banks and
quarter-end condition report data. Data for other banking institutions are estimates made for the last Wednesday of the month based on a weekly reporting
sample of foreign-related institutions and quarter-end condition reports.
Weekly Reporting
Commercial
Banks
A19
1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
M i l l i o n s o f dollars, W e d n e s d a y figures
1985
Account
Sept. 4
Sept. 11
Sept. 18
Sept. 25
Oct. 2
Oct. 9
Oct. 16
Oct. 23
1 Cash and balances due from depository institutions
107,473'
92,576'
90,842'
87.69C
100,802'
88,943
108,742
93,194
2 Total loans, leases and securities, net
866,648'
863,786'
861,262'
862,03y
869,551'
871,982
864,442
858,864
88,602'
84,692'
15,257
69,434'
19,522
35,802
14,111
53,421'
5,384
48,037'
42,826'
6,688'
36,138'
5,212'
3,986
57,161'
36,93C
13,433
6,798
688,49C
674,178'
254,391'
2,438
251,953'
246,947'
5,006'
86,268
18,441
67,828
18,586
35,194
14,048
52,700
4,569
48,131
42,897
6,718
36,179
5,234
3,597
85,027
17,316
67,711
18,434
35,275
14,002
52,969
4,618
48,351
43,026
6,746
36,280
5,325
3,560
84,159
17,044
67,115
18,092
34,774
14,248
53,423
4,744
48,679
43,416
6,756
36,660
5,263
3,902
62,353
41,275
14,485
6,592
685,244
670,903
252,955
2,248
250,707
245,765
4,942
55,948
35,868
14,177
5,903
685,198
670,853
252,062
2,425
249,637
244,723
4,914
53,941
35,139
13,102
5,700
681,751
667,394
252,504
2,238
250,266
245,376
4,891
175,305
127,512
40,916
11,187
5,199
24,530
18,639
7,132
31,092
3,267
14,084
14,340
5,112
13,068
667,063
126,704
175,934
127,610
41,401
10,842
5,865
24,694
17,491
7,087
31,103
3,434
14,730
14,345
5,136
13,125
666,938
128,540
176,180
127,921
39,592
10,528
5,033
24,032
15,369
7,050
31,225
3,287
14,265
14,357
5,135
13,177
663,439
125,054
1,104,642' 1,085,971' 1,080,831' 1,076,166' 1,101,178' 1,087,630
1,101,724
1,077,112
214,748
162,371
5,342
1,787
29,616
5,689
885
9,057
40,024
477,539
440,498
25,014
476
9,189
2,362
204,593
265
338
203,990
87,392
188,941
144,153
5,028
2,441
21,944
5,274
915
9,186
39,270
477,361
440,064
25,123
492
9,207
2,474
202,814
1,551
1,249
200,014
91,385
999,754' 1,023.94C 1,009,971
1,024,297
999,771
3 U.S. Treasury and government agency
4
Trading account
5
Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10
Trading account
11
Investment account
12
States and political subdivisions, by maturity
13
One year or less
14
Over one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17,4W
71,183
20,741
36.462
13,980
52,115'
5,240
46,875'
41.463
5,885
35,577
5,412'
4,163
86,850
16,303
70,547
20,319
36,388
13,839
52,42C
5,249
47,170'
41,775
5,985
35,790
5,396'
3,658
86,243
16,074
70,170
20,305
35,986
13,879
52,456'
5,117
47,338'
42,082
6,192
35,890
5,257'
3,406
87,309
17,031
70,278
19,821
36,484
13,973
53,159'
5,674
47,485'
42,352
6,440
35,912
5,133'
3,673
17 Federal funds sold 1
18
To commercial banks
19
To nonbank brokers and dealers in securities
20
To others
21 Other loans and leases, gross 2
22
Other loans, gross 2
23
Commercial and industrial 2
24
Bankers acceptances and commercial paper
25
All other
26
U.S. addressees
27
Non-U.S. addressees
57,369'
36,864'
12,970
7,535
682,711'
668,453'
253,626
2,399
251,227
246,290
4,937
59,64c
39,434'
12,620
7,585
679,564'
665,332'
252,829
2,452
250,377
245,466
4,911
54,516'
35,089'
12,234
7,192
683,019'
668,766'
253,759
2,304
251,455
246,558
4,897
54,554'
35,479'
12,006
7,070
681,667'
667,395'
252,908
2,323
250,584
245,738
4,846
172,533
126,006'
41,637'
10,901'
5,863
24,873'
17,171
7,166
30,975
3,329
16,009
14,258
5,153
13,16c
664,398'
130,522'
173,162'
126,333'
40,119'
10,098
5,006
25,015'
17,719
7,164
30,705
3,335
13,966
14,232
5,158
13,187'
173,5^
126,74C
40,731'
10,560
5,421
24,751'
17,962
7,115
30,730
3,269
14,943
14,253
5,154
13,225'
664,639'
128,728'
174,128'
127,281'
40,446'
10,778
5,309
24,359'
16,466
7,094
30,846
3,371
14,855
14,272
5,166
13,164'
663,336'
126,444'
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Real estate loans 2
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve 2
Other loans and leases, net 2
All other assets
44 Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and b a n k s . .
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 note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities) 4
MEMO
67
68
69
70
71
72
73
Total loans and leases (gross) and investments adjusted 5
Total loans and leases (gross) adjusted 2 ' 5
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates—total 6
Commercial and industrial
Other
Nontransaction savings deposits (including M M D A s ) . . .
212,753'
160,475'
5,658
1,552
27,780
6,742
871
9,675
41,426
474,447
438,109
24,258
472
9,448
2,160
202,365
240
4,761
197,365'
97.19C
129,609'
192,333'
148,353'
4,864
2,521
21.96C
5,272
1,208
8,155'
40,291
475,488'
438,893'
24,476
466
9,380
2,272
202,965'
725
3,396
198,844'
98,154'
193,274
146,632'
5,190
3,979
22,801'
5.428
784
8,459
39,595
475,228
438,265
24,710
475
9.429
2,350
203,162'
397
15,833
186,931'
93,102'
1 , 0 2 8 , 1 8 1 ' 1 , 0 0 9 , 2 3 2 ' 1,004,36c
76,461'
837,196'
692,316'
155,097
1,932
1,230
703
187,864
1. Includes securities purchased under agreements to resell.
2. Levels of major loan items were affected by the Sept. 26, 1984, transaction
between Continental Illinois National Bank and the Federal Deposit Insurance
Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.
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.
661,218'
76.74C
832,599'
689,672'
156,277'
1,964
1,262
702
187,636'
76.47C
833,992'
691,886'
156,407'
2,094
1,400
694
187,244'
186,682
142,323'
5,094
1,839
22,356'
5,360
1,042
8,669
38,079
476,615'
439,566
24,901
486
9,323
2,339
205,031'
1,272
16,886
186,873'
93,347'
174,931'
127,383'
41,586'
10,569
6,099'
24,918'
17,566
7,131
31,083'
3,382'
16,725
14,312
5,103
13,097'
670.29C
130,826'
209,719'
158,694'
6,016
1,414
25,713'
6,816
794
10,272
39,937'
478,58C
441,46C
25,181
467
9,049
2,423
206,723'
320
7,322
199,081'
88,981'
189,278
146,255
4,686
1,334
22,126
5,153
891
8,834
40,099
479,178
441,728
25,394
482
9,181
2,393
213,687
3,262
197
210,228
87,729
76,412'
77,238'
77,658
77,427
77,341
834,106'
689,965
158,177'
2,209
1,362
847
187,016'
840,251'
698,152
158,245'
2,185
1,298
887
188,828'
837,700
695,133
158,771
2,072
1,249
823
189,025
835,992
694,435
157,132
2,077
831,509
690,025
157,467
2,045
1,248
797
189,050
1,261
816
189,249
5. Exclusive of loans and federal funds transactions with domestic commercial
banks.
6. 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.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A20
1.28
DomesticNonfinancialStatistics • January 1986
L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S I N N E W Y O R K C I T Y A s s e t s and Liabilities
Millions of dollars, Wednesday figures
1985
Account
Sept. 4
1 Cash and balances due from depository institutions
2 Total loans, leases and securities, net1
Securities
3
4
5 Investment account, by maturity
6
One year or less
7
Over one through five years
8
Over five years
in
ii
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Loans and leases
Federal funds sold3
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets 4
Total assets
Deposits
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits
ATS, NOW, Super NOW, telephone transfers)
Nontransaction balances
Individuals, partnerships and corporations
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions and banks
Liabilities for borrowed money
54
55
56
57
58
59
60
61
62 Treasury tax-and-loan notes
63 All other liabilities for borrowed money5
64 Other liabilities and subordinated note and debentures
65 Total liabilities
66 Residual (total assets minus total liabilities)6
Sept. 11
Sept. 18
Sept. 25
24,629
184,176
20,974
180,786
20,999
181,493
9,791
1,669
6,330
1,792
9,359
1,670
6,038
1,650
10,544
9,273
1,429
7,844
1,271
Oct. 2
Oct. 9
21,406
180,879
24,556
183,833
22,981
184,844
23,944
181,186
23,387
180,057
23,052
181,200
9,424
1,896
5,896
1,632
10,109
1,828
6,639
1,643
10,121
1,854
6,612
1,655
8,773
1,341
5,794
1,639
8,725
1,340
5,737
1,647
8,719
1,342
5,662
1,716
8,753
1,339
5,634
1,780
10,550
9,319
1,434
7,884
1,230
10,510
9,329
1,447
7,882
1,181
10,518
9,430
1,548
7,882
1,088
10,792
9,616
1,717
7,899
1,176
10,807
9,635
1,731
7,904
1,172
10,835
9,655
1,729
7,926
1,180
10,956
9,716
1,690
8,026
1,240
11,095
9,853
1,698
8,155
1,242
25,070
11,979
7,788
5,303
144,049
141,314
60,751
750
60,000
59,313
688
27,688
17,527
12,709
2,484
2,695
7,529
8,581
315
8,274
865
4,604
2,735
1,428
3,850
138,771
70,716
279,521
24,6%
11,815
7,221
5,660
141,513
138,811
60,336
759
59,576
58,886
691
27,848
17,578
11,560
2,184
1,916
7,461
8,803
309
8,128
872
3,377
2,702
1,430
3,902
136,181
69,136
270,896
22,571
10,138
7,002
5,431
144,342
141,612
60,836
670
60,166
59,464
702
28,060
17,654
12,244
2,467
2,302
7,475
9,538
303
8,147
786
4,043
2,730
1,430
3,925
138,987
68,260
270,751
22,851
11,418
6,180
5,252
142,726
139,987
60,450
704
59,745
59,058
687
28,121
17,725
12,014
2,684
2,106
7,224
8,654
303
8,119
918
3,684
2,738
1,438
3,886
137,401
67,302
269,588
22,822
11,010
6,899
4,913
145,372
142,632
60,602
676
59,926
59,244
682
27,980
17,778
12,794
2,686
2,872
7,236
9,362
349
8,168
986
4,612
2,741
1,412
3,862
140,098
69,951
278,340
26,625
14,119
7,730
4,776
143,922
141,166
59,702
546
59,156
58,470
686
27,994
17,732
12,278
2,858
2,232
7,188
10,510
345
8,157
874
3,572
2,756
1,411
3,873
138,638
68,775
276,600
23,775
11,806
7,826
4,144
143,168
140,404
59,947
639
59,308
58,629
680
28,237
17,762
12,544
2,714
2,607
7,223
8,918
341
8,141
1,042
3,471
2,764
1,437
3,880
137,850
67,924
273,054
24,759
13,358
7,169
4,232
140,989
138,218
59,525
605
58,920
58,231
689
28,325
17,804
11,746
2,475
2,141
7,131
7,860
359
8,165
912
3,520
2,771
1,439
3,928
135,622
66,220
269,664
23,502
12,138
6,710
4,654
143,218
140,437
59,665
685
58,979
58,284
695
28,368
17,878
11,445
2,338
2,031
7,076
9,729
353
8,168
876
3,955
2,781
1,444
3,924
137,849
66,192
270,444
53,329
35,561
782
193
6,202
5,395
687
4,510
45,029
30,517
764
537
4,603
3,992
1,014
3,601
46,869
31,150
761
713
5,564
4,265
569
3,846
46,601
31,261
785
277
5,360
4,029
847
4,042
52,957
34,898
1,256
159
6,575
5,412
628
4,029
45,600
30,445
874
154
5,324
3,904
716
4,182
51,496
34,101
960
229
7,188
4,349
701
3,968
46,935
30,695
813
500
5,456
4,110
743
4,618
49,620
32,504
706
482
5,272
4,256
579
5,820
4,259
85,632
77,874
4,568
39
2,164
987
67,734
4,257
85.405
77,608
4,555
39
2,163
1,040
67,281
375
793
66,113
44,454
246,426
4,174
85,423
77,447
4,756
38
2,058
1,124
68,610
4,281
86,417
78,168
4,979
35
2,060
1,174
74,400
24,470
71,852
34,341
248,414
24,640
4,201
86,591
78,088
5,072
37
2,186
1,208
68,827
600
178
68,050
38,506
245,061
24,604
4,151
87,094
78,677
5,094
36
2,124
1,163
70,482
1,699
72,702
35,816
253,871
24,469
4,308
86,711
78,310
4,965
34
2,226
1,175
80,952
2,275
3
78,674
34,350
251,921
24,678
4,265
86,458
78,131
4,962
33
2,172
1,160
71,854
3,752
64,859
41,335
246,411
24,340
3,985
85,684
77,792
4,654
36
2,070
1,131
67,937
350
4,014
63,573
41,202
245,410
24,178
1
70,481
34,681
246,028
24,416
172,119
152,211
32,625
174,243
154,309
32,404
172,102
151,474
32,582
175,411
154,498
32,945
173,151
153,570
33,678
171,984
152,424
33,420
169,591
149,915
33,648
172,092
152,244
33,764
1,366
66,368
44,210
255,164
24,358
Oct. 16
1
Oct. 23
Oct. 30
MEMO
67 Total loans and leases (gross) and investments adjusted1-7
68 Total loans and leases (gross) adjusted 7
69 Time deposits in amounts of $100,000 or more
174,990
154,655
32,615
1. Excludes trading account securities.
2. Not available due to confidentiality.
3. Includes securities purchased under agreements to resell.
4. Includes trading account securities.
5. Includes federal funds purchased and securities sold under agreements to
repurchase.
6. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
Weekly Reporting Commercial Banks
1.30
A21
LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS WITH ASSETS OF
$750 MILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities A
Millions of dollars, Wednesday figures
1985
Account
ept. 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities
Other securities
Federal funds sold1
To commercial banks in the United States
Toothers
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
To financial institutions
Commercial banks in the United States.
Banks in foreign countries
Nonbank financial institutions
To foreign govts, and official institutions..
For purchasing and carrying securities . .
All other
Other assets (claims on nonrelated parties)..
Net due from related institutions
Total assets
Deposits or credit balances due to other
than directly related institutions
Credit balances
Demand deposits
IndividuaJs, partnerships, and
corporations
Other
Time and savings deposits
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 2
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
Net due to related institutions
Total liabilities
Sept. 11
Oct. 2
Oct. 9
Oct. 16
Oct. 23
Oct. 30
6,768
48,935
3,484
2,194'
3,954
3,407
547
39,302'
23,191'
6,710
47,934
3,435
2,253'
3,238
2,812
426
39,007'
23,279'
6,925'
49,769'
3,391
2,352'
4,548
4,126
422
39,478'
23,384'
6,517'
50,836
3,562
2,379'
4,334
3,887
447
40,561'
23,756'
7,132
49,192
3,634
2,440
4,284
3,834
450
38,834
22,476
7,981
49,174
3,712
2,437
4,047
3,611
436
38,977
22,879
8,428
47,874
3,651
2,308
3,564
2,994
569
38,351
22,812
6,967
49,900
3,704
2,330
4,556
3,935
620
39,309
23,727
1,770
21,070'
19,647'
1,423
10,655
8,151
1,074
1,430
514
1,657'
2,492
18,689
8,777
81,691
1,744
21,447'
20,065'
1,382
11,127
8,589
1,079
1,459
604
1,893'
2,488
18,888
8,641
83,231
1,730
21,548'
20,193'
1,356
10,966
8,486
1,046
1,434
532
1,682'
2,548
19,853
8,730
83,227
1,650
21,734'
20,433'
1,300
11,295
8,777
998
1,520
574
1,712'
2,514
19,997
9,365
86,056
1,696
22,060'
20,788'
1,272
12,024
9,057
1,407
1,560
544
1,682'
2,554
18,935
8,792
85,079
1,650
20,826
19,578
1,248
11,934
9,318
1,096
1,520
549
1,371
2,503
18,574
11,008
85,907
1,720
21,159
19,952
1,206
11,761
9,220
1,128
1,412
552
1,332
2,454
19,014
9,152
85,320
1,606
21,205
19,955
1,250
11,356
8,831
1,119
1,405
558
1,258
2,368
19,208
8,267
83,778
1,693
22,034
20,780
1,254
11,302
8,822
1,076
1,404
574
1,331
2,374
18,754
8,289
83,910
25,003
143
1,745
25,606
158
1,908
25,972
163
1,881
26,189
151
1,912
26,604
262
2,146
26,700
235
1,973
26,716
228
2,417
26,661
149
2,382
26,351
179
1,924
948
797
23,115
962
946
23,539
992
889
23,928
957
955
24,126
1,080
1,067
24,196
1,036
937
24,492
1,578
839
24,071
1,543
839
24,130
1,128
796
24,249
18,587
4,528
18,925
4,614
19,003
4,924
19,276
4,850
19,265
4,930
19,452
5,040
19,023
5,048
19,149
4,981
19,207
5,042
30,488
13,799
30,236
13,320
29,380
12,484
30,689
13,119
31,610
13,878
32,562
15,041
30,964
14,425
29,087
12,586
29,432
12,336
10,859
2,940
16,689
10,500
2,820
16,916
9,475
3,010
16,8%
10,058
3,060
17,571
10,771
3,107
17,732
11,789
3,252
17,522
10,962
3,463
16,538
9,141
3,445
16,501
9,054
3,282
17,096
15,516
1,173
20,827
5,373
81,691
15,699
1,217
21,214
6,175
83,231
15,843
1,053
21,385
6,489
83,227
16,455
1,116
21,567
7,610
86,056
16,575
1,156
21,026
5,839
85,079
16,454
1,067
20,757
5,887
85,907
15,377
1,162
20,624
7,017
85,320
15,402
1,099
20,690
7,340
83,778
16,014
1,081
20,749
7,378
83,910
35,761
30,359'
36,938
31,261'
36,636
30,948'
36,866'
31,124'
37,891'
31,950'
36,039
29,965
36,342
30,193
36,048
30,089
37,143
31,108
• Levels of many asset and liability items were revised beginning Oct. 31,
1984. For details, see the H.4.2 (504) statistical release dated Nov. 23, 1984.
1. Includes securities purchased under agreements to resell.
2. Includes securities sold under agreements to repurchase.
Sept. 25
6,617
47,607
3,242
2,161'
4,046
3,695
351
38,158'
22,840'
MEMO
42 Total loans (gross) and securities adjusted 3
43 Total loans (gross) adjusted 3
Sept. 18
3. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
NOTE. These data also appear in the Board's H.4.2 (504) release. For address,
see inside front cover.
A22
1.31
DomesticNonfinancialStatistics • January 1986
G R O S S D E M A N D D E P O S I T S Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1980
Dec.
1981
Dec.
1982
Dec.
1984
1983
Dec.
Mar.
June
1985
Sept.
Dec.
Mar. 3
June
1 All holders—Individuals, partnerships, and
corporations
315.5
288.9
291.8
293.5
279.3
286.3
288.8
302.7
286.5'
298.6
2
3
4
5
6
29.8
162.8
102.4
3.3
17.2
28.0
154.8
86.6
2.9
16.7
35.4
150.5
85.9
3.0
17.0
32.8
161.1
78.5
3.3
17.8
31.7
150.3
78.1
3.3
15.9
30.8
156.7
78.7
3.5
16.7
30.4
158.9
79.9
3.3
16.3
31.7
166.3
81.5
3.6
19.7
28.1
158.2'
28.9
164.7
81.8
3.7
19.5
Financial business
Nonfinancial business
Consumer
Foreign
Other
11V
3.5
18.8'
Weekly reporting banks
1980
Dec.
1981
Dec.
1982
Dec.
1984
1983
Dec. 2
Mar.
7 AU holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
Sept.
Dec.
Mar. 3
June
147.4
137.5
144.2
146.2
139.2
145.3
145.3
157.1
147.8
151.3
21.8
78.3
35.6
3.1
8.6
21.0
75.2
30.4
2.8
8.0
26.7
74.3
31.9
2.9
8.4
24.2
79.8
29.7
3.1
9.3
23.5
76.4
28.4
3.2
7.7
23.6
79.7
29.9
3.2
8.9
23.7
79.2
29.8
3.2
9.3
25.3
87.1
30.5
3.4
10.9
22.6
82.8
29.1
3.3
10.0
22.9
84.0
29.9
3.5
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. In January 1984 the weekly reporting panel was revised; it now includes 168
banks. Beginning with March 1984, estimates are constructed on the basis of 92
sample banks and are not comparable with earlier data. Estimates in billions of
dollars for December 1983 based on the newly weekly reporting panel are:
financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1;
other, 9.5.
June
1985
11.0
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
thrift institutions. Historical data have not been revised. The estimated volume of
such deposits for December 1984 is $5.0 billion at all insured commercial banks
and $3.0 billion at weekly reporting banks.
Financial Markets
1.32
A23
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1985
1980
Dec.
Instrument
1981
Dec.
1982
Dec. 1
1983
Dec.
1984
Dec. 2
Apr.
May
June
July
Aug.
Sept.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
124,374
Financial companies3
Dealer-placed paper*
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies6
165,829
166,436
188,312
239,117
255,236
258,943
254,627
262,769
273,327
271,760
19,599
30,333
34,605
44,622
56,917
63,405
61,282
61,602
67,419
67,816
69,904
3,561
6,045
2,516
2,441
2,035
2,180
2,295
2,051
2,083
2,136
2,333
67,854
81,660
84,393
96,918
110,474
117,841
119,975
118,432
118,722
128,216
127,002
22,382
36,921
26,914
53,836
32,034
47,437
35,566
46,772
42,105
71,726
42,405
73,990
43,126
77,686
43,454
74,593
41,228
76,628
42,926
77,295
43,224
74,854
Bankers dollar acceptances (not seasonally adjusted) 7
54,744
11
12
13
78,309
75,470
72,825
69,689
68,375
68,497
68,822r
68,728
10,857
9,743
1,115
10,910
9,471
1,439
9,355
8,125
1,230
10,255
9,065
1,191
9,666
8,263
1,403
9,265
7,578
1,687
9,470
7,869
1,601
9,299
8,012
1,287
9,208'
8,010'
1,198
10,679
9,166
1,513
195
1,442
56,731
1,480
949
66,204
418
729
68,225
0
671
67,595
0
728
62,431
0
575
59,849
0
511
58,394
0
652
58,546
0
789
58,825'
0
793
57,256
11,776
12,712
30,257
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
79,543
776
1,791
41,614
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
69,226
10,564
8,963
1,601
7 Total
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
16,975
15,859
42,635
16,417
14,875
41,533
16,670
14,214
38,804
16,286
13,340
38,748
16,444
12,969
39,084
17,207'
12,85(y
37,149
16,677
12,810
37,708
1. Effective Dec. 1, 1982, there was a break in the commercial paper series. The
key changes in the content of the data involved additions to the reporting panel,
the exclusion of broker or dealer placed borrowings under any master note
agreements from the reported data, and the reclassification of a large portion of
bank-related paper from dealer-placed to directly placed.
2. Correction of a previous misclassification of paper by a reporter has created
a break in the series beginning December 1983. The correction adds some paper to
nonfinancial and to dealer-placed financial paper.
3. Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
1.33
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
4. Includes all financial company paper sold by dealers in the open market.
5. As reported by financial companies that place their paper directly with
investors.
6. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
7. Beginning October 1984, the number of respondents in the bankers acceptance survey will be reduced from 340 to 160 institutions—those with $50 million or
more in total acceptances. The new reporting group accounts for over 95 percent
of total acceptances activity.
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent p e r a n n u m
Rate
11.00
11.00
10.50
11.50
12.00
12.50
13.00
12.75
Effective Date
Rate
1984—Oct. 17
29
Nov. 9
28
Dec. 20
12.50
12.00
11.75
11.25
10.75
1985—Jan. 15
May 20
June 18
10.50
10.00
9.50
Month
1983—Jan
Feb
Mar
Apr
June
July
Aug
Sept
Oct
Nov
Dec
1984—Jan
Feb
Mar
Apr
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
Average
rate
11.16
10.98
10.50
10.50
10.50
10.50
10.50
10.89
11.00
11.00
11.00
11.00
11.00
11.00
11.21
11.93
Month
1984—June
July
Aug.
Sept,
Oct.
Nov.
Dec.
1985—Jan.
Feb.
Mar.
Apr.,
May,
June.
July.
Aug.
Sept.
Oct..
A24
1.35
DomesticNonfinancialStatistics • January 1986
INTEREST RATES Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1985
Instrument
1982
1983
1985, week ending
1984
July
Aug.
Sept.
Oct.
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Oct. 25
MONEY MARKET RATES
1 Federal funds1-2
2 Discount window borrowing 1 ' 2 ' 3
Commercial paper 4 ' 5
3 1-month
4 3-month
5 6-month
Finance paper, directly placed4-5
6
1-month
7 3-month
8 6-month
Bankers acceptances 5 ' 6
9 3-month
10 6-month
Certificates of deposit, secondary market7
11 1-month
12 3-month
13 6-month
14 Eurodollar deposits, 3-month8
U.S. Treasury bills5
Secondary market 9
15
3-month
16
6-month
17
1-year
Auction average10
18
3-month
19
6-month
20
1-year
12.26
11.02
9.09
8.50
10.22
8.80
7.88
7.50
7.90
7.50
7.92
7.50
7.99
7.50
7.96
7.50
8.12
7.50
7.84
7.50
8.03
7.50
8.14
7.50
11.83
11.89
11.89
8.87
8.88
8.89
10.05
10.10
10.16
7.58
7.56
7.57
7.73
7.72
7.74
7.83
7.83
7.86
7.81
7.80
7.79
7.72
7.71
7.72
7.76
7.74
7.73
7.80
7.81
7.81
7.86
7.85
7.84
7.86
7.84
7.82
11.64
11.23
11.20
8.80
8.70
8.69
9.97
9.73
9.65
7.53
7.40
7.34
7.70
7.56
7.55
7.84
7.64
7.60
7.79
7.60
7.59
7.72
7.55
7.55
7.78
7.57
7.56
7.79
7.59
7.58
7.80
7.61
7.60
7.87
7.60
7.59
11.89
11.83
8.90
8.91
10.14
10.19
7.53
7.54
7.68
7.68
7.81
7.84
7.76
7.75
7.66
7.64
7.71
7.69
7.80
7.81
7.79
7.78
7.78
7.77
12.04
12.27
12.57
13.12
8.96
9.07
9.27
9.56
10.17
10.37
10.68
10.73
7.58
7.64
7.79
7.89
7.77
7.81
7.97
8.02
7.88
7.93
8.09
8.14
7.85
7.88
7.97
8.08
7.78
7.82
7.88
8.09
7.82
7.85
7.95
8.01
7.84
7.89
8.00
8.10
7.88
7.92
8.02
8.13
7.90
7.93
8.02
8.08
10.61
11.07
11.07
8.61
8.73
8.80
9.52
9.76
9.92
7.08
7.19
7.31
7.13
7.32
7.48
7.10
7.27
7.50
7.16
7.33
7.45
6.88
7.00
7.34
7.01
7.20
7.41
7.17
7.36
7.49
7.20
7.33
7.44
7.22
7.38
7.47
10.66
10.80
11.10
8.64
8.76
8.85
9.56
9.79
9.91
7.05
7.16
7.09
7.18
7.35
7.60
7.08
7.26
7.36
7.17
7.32
7.42
6.81
7.05
n.a.
7.07
7.24
7.33
7.14
7.32
n.a.
7.20
7.36
n.a.
7.18
7.32
n.a.
12.27
12.80
9.57
10.21
10.89
11.65
7.86
8.77
8.05
8.94
8.07
8.98
8.01
8.86
7.96
8.85
10.45
10.80
11.02
11.10
11.34
11.18
11.89
12.24
12.40
12.44
12.48
12.39
9.18
9.70
10.15
10.31
10.68
10.50
9.31
9.81
10.20
10.33
10.73
10.56
9.37
9.81
10.24
10.37
10.80
10.61
9.25
9.69
10.11
10.24
10.67
10.50
9.25
9.71
10.16
10.32
10.75
10.58
8.06
8.96
9 20
9.35
9.82
10.26
10.37
10.80
10.63
8.01
8.87
12.92
13.01
13.06
13.00
12.92
12.76
7.88
8.78
9.20
9.17
9.66
10.13
10.30
10.76
10.58
9.25
9.70
10.11
10.23
10.66
10.50
8.03
8.85
9 05
9.21
9.63
10.02
10.16
10.58
10.42
12.23
10.84
11.99
10.51
10.59
10.67
10.56
10.63
10.62
10.70
10.56
10.51
10.86
12.46
11.66
8.80
10.17
9.51
9.61
10.38
10.10
8.34
9.18
8.81
8.49
9.50
9.08
8.70
9.63
9.27
8.58
9.54
9.08
8.80
9.65
9.38
8.80
9.65
9.33
8.75
9.60
9.25
8.60
9.60
9.12
8.45
9.50
8.95
14.94
13.79
14.41
15.43
16.11
12.78
12.04
12.42
13.10
13.55
13.49
12.71
13.31
13.74
14.19
11.69
10.97
11.42
11.92
12.43
11.76
11.05
11.47
12.00
12.50
11.75
11.07
11.46
11.99
12.48
11.69
11.02
11.45
11.94
12.36
11.74
11.05
11.47
11.98
12.47
11.76
11.07
11.50
11.99
12.46
11.76
11.12
11.51
12.03
12.39
11.71
11.03
11.48
11.%
12.38
11.63
10.94
11.41
11.85
12.31
15.49
12.73
13.81
11.60
11.77
11.87
11.82
11.80
11.92
11.96
11.81
11.73
12.53
5.81
11.02
4.40
11.59
4.64
9.92
4.14
10.15
4.23
10.26
4.32
10.35
4.28
10.27
4.41
10.33
4.33
10.38
4.37
10.35
4.26
10.37
4.23
CAPITAL MARKET RATES
U.S. Treasury notes and bonds 11
Constant maturities12
21
1-year
22
2-year
73
24
3-year
25
5-year
26
7-year
27
10-year
28
20-year
29
30-year
Composite14
30
Over 10 years (long-term)
State and local notes and bonds
Moody's series15
31
Aaa
32
Baa
33 Bond Buyer series 16
Corporate bonds
Seasoned issues17
34
All industries
35
Aaa
36
Aa
37
A
38
Baa
39 A-rated, recently-offered utility
bonds 18
MEMO: Dividend/price ratio 19
40 Preferred stocks
41 Common stocks
1. Weekly and monthly figures are averages of all calendar days, where the
rate for a weekend or holiday is taken to be the rate prevailing on the preceding
business day. The daily rate is the average of the rates on a given day weighted by
the volume of transactions at these rates.
2. Weekly figures are averages for statement week ending Wednesday.
3. Rate for the Federal Reserve Bank of New York.
4. Unweighted average of offering rates quoted by at least five dealers (in the
case of commercial paper), or finance companies (in the case of finance paper).
Before November 1979, maturities for data shown are 30-59 days, 90-119 days,
and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150179 days for finance paper.
5. Yields are quoted on a bank-discount basis, rather than an investment yield
basis (which would give a higher figure).
6. Dealer closing offered rates for top-rated banks. Most representative rate
(which may be, but need not be, the average of the rates quoted by the dealers).
7. Unweighted average of offered rates quoted by at least five dealers early in
the day.
8. Calendar week average. For indication purposes only.
9. Unweighted average of closing bid rates quoted by at least five dealers.
10. Rates are recorded in the week in which bills are issued. Beginning with the
Treasury bill auction held on Apr. 18, 1983, bidders were required to state the
percentage yield (on a bank discount basis) that they would accept to two decimal
places. Thus, average issuing rates in bill auctions will be reported using two
rather than three decimal places.
11. Yields are based on closing bid prices quoted by at least five dealers.
12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields
are read from a yield curve at fixed maturities. Based on only recently issued,
actively traded securities.
13. Each biweekly figure is the average of five business days ending on the
Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate
determined the maximum interest rate payable in the following two-week period
on 2-Vi-year small saver certificates. (See table 1.16.)
14. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
15. General obligations based on Thursday figures; Moody's Investors Service.
16. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
17. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
18. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
19. Standard and Poor's corporate series. Preferred stock ratio based on a
sample o f t e n issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36
STOCK MARKET
A25
Selected Statistics
1985
Indicator
1982
1983
1984
Feb.
Apr.
Mar.
May
June
July
Aug.
Sept.
Oct.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
68.93
(Dec. 31, 1965 = 50)
78.18
2 Industrial
60.41
3 Transportation
4 Utility
39.75
71.99
5 Finance
6 Standard & Poor's Corporation (1941-43 = 10)1 . . . 119.71
7 American Stock Exchange 2
282.62
(Aug. 31, 1973 = 50)
92.63
107.45
89.36
47.00
95.34
160.41
92.46
108.01
85.63
46.44
89.28
160.50
104.73
120.71
101.76
53.44
109.58
180.88
103.92
119.64
98.30
53.91
107.59
179.42
104.66
119.93
96.47
55.51
109.39
180.62
107.00
121.88
99.66
57.32
115.31
184.90
109.52
124.11
105.79
59.61
118.44
188.89
111.64
126.94
111.67
59.68
119.85
192.54
109.09
124.92
109.92
56.99
114.68
188.31
106.62
122.35
104.96
55.93
110.21
184.06
107.57
123.65
103.72
55.84
112.36
186.18
216.48
207.96
228.40
225.62
229.46
228.75
227.48
235.21
232.65
226.27
225.00
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
85,418
8,215
91,084 115,489 102,591
6,107 10,010
8,677
94,387 106,827 105,849
7,171
7,801
7,128
111,952
7,284
87,468
7,275
97,910
7,057
110,569
7,648
64,868'
5,283
Customer financing (end-of-period balances, in millions of dollars)
3
10 Margin credit at broker-dealers
13,325
23,000
22,470
22,970
23,230
23,900
24,300
25,260
25,220
25,780
25,330
26,350
Free credit balances at brokers4
11 Margin-account
12 Cash-account
5,735
8,390
6,620
8,430
7,015
10,215
6,680
9,840
6,780
10,160
6,910
9,230
6,865
9,230
7,300
10,115
7,000
9,700
6,455
9,440
6,225'
10,080
6,120'
9,630
Margin-account debt at brokers (percentage distribution, end of period)
100.0
14
15
16
17
18
19
By equity class (in percentp
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
21.0
24.0
24.0
14.0
9.0
8.0
13 Total
41.0
22.0
16.0
9.0
6.0
6.0
46.0
18.0
16.0
9.0
5.0
6.0
36.0
20.0
18.0
38.0
20.0
18.0
10.0
7.0
7.0
39.0
19.0
18.0
10.0
7.0
7.0
36.0
19.0
19.0
34.0
20.0
19.0
34.0
20.0
19.0
35.0
21.0
18.0
7.0
8.0
8.0
8.0
8.0
8.0
8.0
7.0
40.0
22.0
16.0
9.0
6.0
7.0
37.0
22.0
17.0
10.0
7.0
7.0
91,400
92,250
11.0
8.0
8.0
11.0
11.0
11.0
11.0
Special miscellaneous-account balances at brokers (end of period)
6
20 Total balances (millions of dollars)
Distribution by equity status (percent)
21 Net credit status
Debt status, equity of
22 60 percent or more
23 Less than 60 percent
75,840
81,830
83,729
82,990
87,120
86,910
89,240
90,930
63.0
59.0
59.0
60.0
60.0
60.0
59.0
59.0
59.0
59.0
58.0
28.0
9.0
29.0
31.0
10.0
30.0
10.0
30.0
10.0
30.0
10.0
31.0
10.0
32.0
9.0
30.0
31.0
10.0
31.0
35,598
58,329
62.0
29.0
9.0
11.0
11.0
11.0
Margin requirements (percent of market value and effective date)7
Mar. 11, 1968
24 Margin stocks
25 Convertible bonds
26 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984, and margin credit at
broker-dealers became the total that is distributed by equity class and shown on
lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of
other collateral in the customer's margin account or deposits of cash (usually sales
proceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act 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.
A26
1.37
DomesticNonfinancialStatistics • January 1986
SELECTED FINANCIAL INSTITUTIONS
S e l e c t e d A s s e t s and Liabilities
Millions of dollars, end of period
1985
1984
Account
1982
1983
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
FSLIC insured institutions
1 Assets
692,663 819,168 960,177 978,514 974,881 982,182 992,289 995,430 1,003,225 1,012,387 1,022,476' 1,034,786' 1,042,162
636,914
477,009 521,308 598,425 599,021 602,180 603,308 608,268 613,334 617,574 623,275 627,43(K 632,356'
?. Mortgages
111,979
106,433
102,892 105,265' 108,605'
62,798 90,902 107,320 108,219 106,836 107,779 108,755 108,174
Mortgage-backed securities
1
135,169'
131,867
132,109 134,039'
129,918
4 Cash and investment securities . 82,300 109,923 124,304 135,640 129,481 131,625 132,438 127,225
103,177
98,034
100,595 101,605' 101,633'
n.a.
87,799 91,516 91,211 93,100 94,625 96,903
n.a.
5 Other
6 Liabilities and net worth
7 Savings capital
8 Borrowed money
9 FHLBB
10 Other
11 Other
12 Net worth2
n
MEMO: Mortgage loan
commitments outstanding 3 ..
692,663 819,168 960,177 978,514 974,881 982,182 992,289 995,430 1,003,225 1,012,312 1,022,476' 1,034,786' 1,042,162
554,584 671,059 772,124 784,724 791,475 792,556 801,293 801,256
97,459 98,511 128,060 137,123 125,605 129,321 132,665 132,230
63,818 57,253 70,419 71,719 71,509 71,470 71,674 72,785
33,641 41,258 57,641 65,404 55,096 57,851 60,991 59,445
18,746 19,961 21,816 19,290 22,468
15,233 16,619 23,081
809,083
129,082
74,159
54,923
24,215
817,551
130,269
75,987
54,372
22,055
822,150'
133,674'
77,749'
55,925'
23,48C
826,643'
80,129'
59,041'
25,327'
831,728
143,527
81,457
62,070
22,753
139,17c
25,386
32,980
36,912
37,921
37,840
38,488
39,041
39,476
40,845
42,436
43,171'
43,645'
44,153
27,806
56,785
68,516
65,836
64,154
65,323
67,615
68,671
69,683
69,585
68,341
67,057
65,738
212,509
212,207
213,824
215,298
105,869
28,530
105,911
29,199
106,441
30,339
107,322
30,195
14,628 14,917 15,098 14,504
19,459 19,167 19,694 19,750
2,069
2,097
2,094
2,092
23,892' 23,896' 24,194' 24,139'
4,679
4,423
4,864
5,004
11,593 12,488 12,288 12,246
14,895
19,527
2,093
24,344
4,935
12,770
14,082
19,157
2,086
24,047
4,942
12,776
13,960
19,779
2,105
23,738
4,544
12,937
13,868
20,101
Mutual savings banks 4
14 Assets
1
5
16
17
18
19
20
71
22
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities....
State and local government....
Corporate and other 7
Cash
Other assets
174,197
193,535 204,499 203,898 204,859 206,175 210,568 210,469
94,091
16,957
97,356
19,129
102,953
24,884
9,743
14,055
2,470
22,106'
6,919
7,855
15,360
18,205
2,177
15,034
18,991
2,077
24,370'
4,954
11,413
6,263
9,670
102,895
24,954
14,643
19,215
2,067
23,747'
4,140
11,533
103,393 103,654 104,340 105,102
25,747 26,456 27,798 28,000
23,735
4,821
13,151
23 Liabilities
174,197
193,535 203,898 204,859 206,175 210,568 210,469 212,509
212,163
212,207
213,824
215,298
74 Deposits
25 Regular8
26
Ordinary savings
77
Time
78 Other
79 Other liabilities
30 General reserve accounts
155,196
152,777
46,862
102,934
2,419
8,336
9,235
172,665
170,135
38,554
104,151
2,530
10,154
10,368
181,849 185,197 184,478 185,802
178,791 181,742 180,804 182,113
33,413 33,715 33,211 33,457
103,536 105,204 104,527 104,843
3,058
3,689
3,674
3,455
13,387 14,393 14,959 15,546
10,670 10,720 10,803 10,913
186,091
182,218
33,526
104,756
3,873
14,348
11,238
186,118
182,243
33,530
104,448
3,875
14,241
11,239
186,824
182,881
33,495
104,737
3,943
15,137
11,453
187,207
183,222
33,398
104,448
3,985
15,971
11,704
180,616
177,418
33,739
104,732
3,198
12,504
10,510
181,062
177,954
33,413
104,098
3,108
12,931
10,619
n. i.
Life insurance companies8
31 Assets
588,163 654,948 720,807 722,979 731,113 735,332 742,154 748,865
757,523
765,891
772,452
778,293
Securities
3? Government
33
United States 6
34
State and local
35
36
37
38
39 Mortgages
40 Real estate
41 Policy loans
42 Other assets
36,499 50,752 64,683 62,899 63,979 65,867 65,603 66,402
16,529 28,636 41,970 41,204' 41,982 43,916 43,502 44,200
8,902
8,713
8,913
8,923
9,986
9,757
9,000
8,664
13,084 12,951 13,199 13,279
13,005
12,982
12,130
11,306
287,126 322,854 354,815 359,333 368,316 371,009 374,757 379,247
231,406 257,986 291,021 295,998 302,270 303,452 307,078 311,123
55,720 64,868 64,171 63,335 66,046 67,557 67,679 68,124
141,989 150,999 157,283 156,699 156,850 157,253 158,162 159,393
20,264 22,234 25,985 25,767 25,983 26,186 26,527 26,828
52,961 54,063 54,610 54,505 54,414 54,489 54,438 54,439
48,571 54,046 63,344 63,776 61,571 60,528 62,667 62,556
67,880
45,593
8,998
13,289
384,342
314,021
70,321
160,470
27,215
54,384
63,232
68,636
46,260
9,044
13,332
388,448
317,029
71,419
161,485
27,831
54,320
65,171
68,983
46,514
8,980
13,489
393,386
321,752
71,634
162,690
28,240
54,300
64,853
69,975
47,343
9,201
13,431
397,202
325,647
71,555
163,027
28,450
54,238
65,401
104,992
71,342
33,650
106,948
72,021
34,762
107,991
72,932
35,059
111,150
74,869
36,281
113,016
75,567
37,449
65,298
44,042
21,256
95,278
66,680
28,598
66,817
40,378
22,110
96,702
66,243
30,459
67,662
44,963
22,699
98,026
67,070
30,956
69,171
46,036
23,135
99,834
68,087
31,747
70,765
46,702
24,063
101,318
68,592
32,726
n.a.
Credit unions9
43 Total assets/liabilities and capital.
44
45 State
69,585
45,493
24,092
81,961
54,482
27,479
92,951
62,690
29,831
93,036
63,205
29,831
94,646
64,505
30,141
96,183
65,989
30,194
98,646 101,268
67,799 68,903
30,847 32,365
46 Loans outstanding
47
48 State
49
50 Federal (shares)
51 State (shares and deposits)....
43,232
27,948
15,284
62,990
41,352
21,638
50,083
32,930
17,153
74,739
49,889
24,850
62,170
41,762
20,408
84,000
57,302
26,698
62,561
42,337
20,224
84,348
57,539
26,809
62,662
42,220
20,442
86,047
58,820
27,227
62,393
42,283
20,110
86,048
59,914
26,134
62,936
42,804
20,132
88,560
61,758
26,802
64,341
43,414
20,927
91,275
62,867
28,408
Financial Markets
NOTES TO TABLE 1.37
1. Holdings of stock of the Federal Home Loan Banks are in "other assets."
2. Includes net undistributed income accrued by most associations.
3. As of July 1985, data include loans in process.
4. The National Council reports data on member mutual savings banks and on
savings banks that have converted to stock institutions, and to federal savings
banks.
5. Excludes checking, club, and school accounts.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
8. Data for December 1984 through April 1985 have been revised.
9. As of June 1982, data include federally chartered or federally insured, statechartered credit unions serving natural persons. Before that date, data were
estimates of all credit unions.
A27
NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all associations in the United States. Data are based on monthly reports of federally insured
associations. Even when revised, data for current and preceding year are subject
to further revision.
Savings banks: Estimates of National Council of Savings Institutions 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 federally insured state credit unions serving natural persons.
Figures are preliminary and revised annually to incorporate recent data.
A28
1.38
DomesticNonfinancialStatistics • January 1986
FEDERAL FISCAL A N D FINANCING
OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1982
Fiscal
year
1983
Fiscal
year
1984
1983
HI
U.S. budget
1 Receipts'
2 Outlays'
3 Surplus, or deficit ( - )
4 Trust funds
5 Federal funds2-3
Off-budget entities (surplus, or deficit (-))
6 Federal Financing Bank outlays
7 Other3-4
U.S. budget plus off-budget, including
Federal Financing Bank
8 Surplus, or deficit ( - )
Source of financing
9 Borrowing from the public
10 Cash and monetary assets (decrease, or
increase (-)) 4
11 Other5
1984
H2
HI
1985
Aug.
Sept.
Oct.
617,766
728,375
-110,609
5,456
-116,065
600,562
795,917
-195,355
23,056
-218,410
666,457
841,800
-175,343
30,565
-205,908
306,331
396,477
-90,146
22,680
-112,822
306,584
406,849
-100,265
7,745
-108,005
341,808
420,700
-78,892
18,080
-96,971
55,776
83,621
-27,845
287
-28,132
73,808
73,191
617
13,164
-12,547
57,881
85,074
-27,193
3,371
-30,564
-14,142
-3,190
-10,404
-1,953
-7,277
-2,719
-5,418
-528
-3,199
-1,206
-2,813
-838
26
221
-31
-1,350
86
20
-127,940
-207,711
-185,339
-96,094
-104,670
-84,884
-27,597
-764
-27,087
134,993
212,425
170,817
102,538
84,020
80,592
16,157
5,975
11,390
-11,911
4,858
-9,889
5,176
5,636
8,885
-9,664
3,222
-16,294
4,358
-3,127
7,418
12,013
-573
-6,248
-1,037
13,964
1,733
29,164
10,975
18,189
37,057
16,557
20,500
22,345
3,791
18,553
27,997
19,442
8,764
11,817
3,661
8,157
13,567
4,397
9,170
11,841
3,656
8,185
17,060
4,174
12,886
1,823
1,528
294
MEMO
12 Treasury operating balance (level, end of
period)
13 Federal Reserve Banks
14 Tax and loan accounts
1. Effective Feb. 8, 1982, supplemental medical insurance premiums and
voluntary hospital insurance premiums, previously included in other insurance
receipts, have been reclassified as offsetting receipts in the health function.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Other off-budget includes Postal Service Fund; Rural Electrification and
Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition
and transportation and strategic petroleum reserve effective November 1981.
4. Includes U.S. Treasury operating cash accounts; SDRs; 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; seigniorage; increment on gold; net gain/loss for U.S.
currency valuation adjustment; net gain/loss for IMF valuation adjustment; and
profit on the sale of gold.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government," Treasury Bulletin, and the Budget of the U.S. Government, Fiscal
Year 1985.
Federal Finance
1.39
U.S. BUDGET RECEIPTS A N D
A29
OUTLAYS
Millions of dollars
Calendar year
Source or type
Fiscal
year
1984'
Fiscal
year
1985
HI
1985
1984
1983
H2
H2
Sept.
Aug.
RECEIPTS
666,457
733,996
306,331
305,122
341,808
341,392
55,776
73,808
295,960
279,350
35
81,346
64,770
330,918
298,941
35
97,685
65,743
144,551
135,531
30
63,014
54,024
147,663
133,768
6
20,703
6,815
144,691
140,657
29
61,463
57,458
157,229
145,210
5
19,403
7,387
25,770
24,914
2
2,285
1,431
34,643
22,569
74,179
17,286
77,413
16,082
33,522
13,809
31,064
8,921
40,328
10,045
35,190
6,847
2,397
1,319
12,224
1,275
241,902
268,805
110,520
100,832
131,372
118,690
22,943
21,977
212,180
238,288
97,339'
88,786'
114,102'
105,624
18,617
21,325
8,709
25,138
4,580
10,468
25,758
4,759
6,427
10,984
2,197
398
8,714
2,290
7,667
14,942
2,329
1,086
10,706
2,360
0
3,928
398
1,247
275
376
37,361
11,370
16,904
4,010
2,883
7,751
19,586
5,079
3,050
7,811
18,304
5,576
3,102
8,481
18,961
6,329
3,029
16,965
35,865
12,079
6,422
18,576
8,812
2,544
1,151
560
1,730
3,331
936
497
1,473
18 All types
841,800
936,809
396,477
406,849
420,700
446,943
83,621
73,191
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology .
Energy
Natural resources and environment
Agriculture
227,411
13,063
8,310
2,538
12,591
12,203
251,468
15,426
8,700
3,906
13,298
22,780
105,072
4,705
3,486
2,073
5,892
10,154
108,967
6,117
4,216
1,533
6,933
5,278
114,639
5,426
3,981
1,080
5,463
7,129
118,286
8,550
4,473
1,423
7,370
8,524
23,209
1,542
754
647
1,396
1,510
21,498
1,995
742
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development ..
Education, training, employment, social
services
5,213
24,587
7,307
1,817
25,874
7,748
2,164
9,918
3,124
2,648
13,323
4,327
2,572
10,616
3,154
2,663
13,673
4,836
-295
2,617
730
401
2,524
521
1 AH sources
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund .
5 Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions
net
10 Payroll employment taxes and
contributions'
11 Self-employment taxes and
contributions2
12 Unemployment insurance
13 Other net receipts 3
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts4
6,010
1
13,613
1,539
OUTLAYS
1,128
1,083
978
26,579
28,352
12,801
13,246
13,445
13,737
2,745
2,136
29 Health
30 Social security and medicare
31 Income security
30,432
235,764
112,556
33,560
254,446
128,993
41,206
n.a.
143,001
27,271
n.a.
92,643
15,551
119,420
50,450
15,692
119,613
57,411
2,917
21,306
10,201
2,672
21,170
8,574
32
33
34
35
36
37
25,614
5,660
5,117
6,770
111,058
-31,957
26,376
6,188
5,483
6,140
129,148
-32,893
11,334
2,522
2,434
3,124
42,358
-8,887
13,621
2,628
2,479
3,290
47,674
-7,262
12,849
2,807
2,462
2,943
54,748
-8,036
13,317
2,992
2,552
3,458
61,293
-12,914
3,409
519
479
92
12,324
-2,481
942
469
788
291
9,773
-4,495
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest®
Undistributed offsetting receipts7
1. Old-age, disability, and hospital insurance, and railroad retirement accounts.
2. Old-age, disability, and hospital insurance.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
5. In accordance with the Social Security Amendments Act of 1983, the
Treasury now provides social security and medicare outlays as a separate
function. Before February 1984, these outlays were included in the income
security and health functions.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government" and the Budget of the U.S. Government, Fiscal Year 1985.
A30
1.40
Domestic Financial Statistics •
J a n u a r y 1986
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1984
1983
1985
Item
June 30
Sep. 30
Dec. 31
Mar. 31
June 30
Sep. 30
Dec. 31
Mar. 31
June 30
1 Federal debt outstanding
1,324.3
1,381.9
1,415.3
1,468.3
1,517.2
1,576.7
1,667.4
1,715.1
1,779.0
2 Public debt securities
3 Held by public
4 Held by agencies
1,319.6
1,090.3
229.3
1,377.2
1,138.2
239.0
1,410.7
1,174.4
236.3
1,463.7
1,223.9
239.8
1,512.7
1,255.1
257.6
1,572.3
1,309.2
263.1
1,663.0
1,373.4
289.6
1,710.7
1,415.2
295.5
1,774.6
1,460.5
314.2
4.7
3.6
1.1
4.7
3.6
1.1
4.6
3.5
1.1
4.6
3.5
1.1
4.5
3.4
1.1
4.5
3.4
1.1
4.5
3.4
1.1
4.4
3.3
1.1
4.4
3.3
1.1
5 Agency securities
6 Held by public
7 Held by agencies
1,320.4
1,378.0
1,411.4
1,464.5
1,513.4
1,573.0
1,663.7
1,711.4
1,775.3
9 Public debt securities
10 Other debt 1
1,319.0
1.4
1,376.6
1.3
1,410.1
1.3
1,463.1
1.3
1,512.1
1.3
1,571.7
1.3
1,662.4
1.3
1,710.1
1.3
1,774.0
1.3
11 MEMO: Statutory debt limit
1,389.0
1,389.0
1,490.0
1,490.0
1,520.0
1,573.0
1,823.8
1,823.8
1,823.8
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
1984
Type and holder
1981
1980
1982
1985
1983
Q3
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable1
State and local2 government series
Foreign issues
Government
Public
Savings bonds and notes
Government account series3
Q4
Q1
Q2
930.2
1,028.7
1,197.1
1,410.7
1,572.3
1,663.0
1,710.7
1,774.6
928.9
623.2
216.1
321.6
85.4
305.7
23.8
24.0
17.6
6.4
72.5
185.1
1,027.3
720.3
245.0
375.3
99.9
307.0
23.0
19.0
14.9
4.1
68.1
196.7
1,195.5
881.5
311.8
465.0
104.6
314.0
25.7
14.7
13.0
1.7
68.0
205.4
1,400.9
1,050.9
343.8
573.4
133.7
350.0
36.7
10.4
10.4
.0
70.7
231.9
1,559.6
1,176.6
356.8
661.7
158.1
383.0
41.4
8.8
8.8
.0
73.1
259.5
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.3
286.2
1,695.2
1,271.7
379.5
713.8
178.4
423.6
47.7
9.1
9.1
.0
74.4
292.2
1,759.8
1,310.7
381.9
740.9
187.9
449.1
53.9
8.3
8.3
.0
75.7
311.0
14.8
1.3
1.4
1.6
9.8
12.7
2.3
15.5
15
16
17
18
19
20
21
22
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local governments
192.5
121.3
616.4
112.1
3.5
24.0
19.3
87.9
203.3
131.0
694.5
111.4
21.5
29.0
17.9
104.3
209.4
139.3
848.4
131.4
42.6
39.1
24.5
127.8
236.3
151.9
1,022.6
188.8
22.8
56.7
39.7
155.1
263.1
155.0
1,154.1
183.0
13.6
73.2
47.7
n.a.
289.6
160.9
1,212.5
183.4
25.9
82.3
50.1
n.a.
295.5
161.0
1,254.1
195.0
26.7
84.0
50.9
n.a.
23
74
25
26
Individuals
Savings bonds
Other securities
Foreign and international5
Other miscellaneous investors 6
72.5
44.6
129.7
122.8
68.1
42.7
136.6
163.0
68.3
48.2
149.5
217.0
71.5
61.9
166.3
259.8
73.7
68.7
175.5
n.a.
74.5
69.3
192.9
n.a.
75.4
79.9
186.3
n.a.
14 Non-interest-bearing debt
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. government agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
n a.
5. Consists of investments of foreign and international accounts. Excludes noninterest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. government deposit accounts, and U.S. government-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
1.42
U.S. G O V E R N M E N T SECURITIES DEALERS
A31
Transactions
Par value; averages of daily figures, in millions of dollars
1985
Item
1982
1983
1985 week ending Wednesday
1984
Aug.
Sept.
Oct.
Sept. 25
Oct. 2
Oct. 9
Oct. 16
Oct. 23
Oct. 30
1
Immediate delivery1
U.S. government securities
32,261
42,135
52,778
70,849'
62,932'
71,778
73,645'
65,733
59,749
49,830
65,933'
95,706
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
18,393
810
6,271
3,555
3,232
22,393
708
8,758
5,279
4,997
26,035
1,305
11,733
7,606
6,099
29,992'
1,636
17,397
11,266
10,558
27,640'
1,683
15,298'
10,464
7,847
31,808
1,953
15,345
13,666
9,007
29,495'
1,820
21,174'
12,537
8,620
31,223
2,924
12,742
10,971
7,873
27,328
2,188
10,662
11,563
8,007
26,191
1,481
8,512
8,003
5,642
29,090'
1,421
14,463'
11,881
9,078
39,051
1,605
25,908
17,249
11,894
7
8
9
10
11
12
13
14
15
16
17
18
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others 2
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions3
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions4
U.S. government securities
Federal agency securities
1,770
2,257
2,919
2,922
2,946
3,248
2,548
3,417
2,134
2,797
2,754
4,332
15,794
14,697
4,140
5,001
2,502
7,595
21,045
18,833
5,576
4,333
2,642
8,036
25,580
24,278
7,846
4,947
3,243
10,018
34,565
33,362'
10,964
3,245
2,999
13,027
30,766'
29,22(V
11,667
3,379
3,007'
13,466
33,827
34,703
13,319
3,234
2,799
14,381
37,082'
34,015'
11,083
4,021
3,762
14,009
30,699
31,616
9,822
2,975
2,676
13,977
28,898
28,717
12,632
3,353
3,163
13,204
23,216
23,817
14,527
2,790
2,167
14,331
30,889'
32,291'
12,852
2,690
2,280
14,232
46,101
45,273
13,520
3,791
3,341
13,880
5,055
1,487
261
6,655
2,501
265
6,947
4,503
262
3,942
5,618
346
5,836
6,585
234
4,612
6,040
564
6,654
8,072'
208
4,254
5,991
305
4,561
5,543
867
3,714
3,939
486
4,603
5,882'
540
5,788
7,950
694
835
978
1,493
1,646
1,364
2,843
1,271
3,580
1,034
3,810
718
4,743
1,607
3,121
439
2,756
555
4,639
511
6,044
1,152
4,410
635
4,733
1. Data for immediate transactions does not include forward transactions.
2. Includes, among others, all other dealers and brokers in commodities and
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
3. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
4. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Averages for transactions are based on number of trading days in the
period.
Transactions are market purchases and sales of U.S. government securities
dealers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured secunties, purchases or sales of securities under repurchase
agreement, reverse repurchase (resale), or similar contracts.
A32
1.43
DomesticNonfinancialStatistics • January 1986
U.S. G O V E R N M E N T SECURITIES DEALERS
Positions and Financing
Averages of daily figures, in millions of dollars
1985
Item
1982
1983
1985 week ending Wednesday
1984
Aug.
Sept.
Oct.
Oct. 2
Oct. 9
Oct. 16
Oct. 23
Oct. 30
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate1
U.S. government securities
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. government securities
Federal agency securities
14,769
8,226
1,088
3,293
-318
2,026
4,169
5,532
2,832
3,317
14,224
10,800
921
1,912
-78
528
7,313
5,838
3,332
3,159
5,538
5,500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
1,433
5,327
1,376
4,442
-6,199
-3,670
23,108
8,207
4,213
4,905
2,285'
6,41<K
1,059
5,733
-6,381
-4,737
23,787
8,288
4,180
5,624
3,874
12,146
1,056
6,164
-9,209
-6,483
25,323
8,850
4,944
5,699
3,176
9,329
1,156
6,754
-8,253
-6,021
23,352
8,853
5,474
6,713
-303
8,420
757
6,674
-9,305
-7,052
25,017
8,864
5,029
6,134
1,273
11,186
1,023
5,451
-9,342
-7,242
26,255
8,643
4,578
5,408
4,552
14,479
1,390
3,938
-9,192
-6,265
25,502
8,635
4,919
4,963
7,012
14,072
1,096
7,256
-9,736
-5,875
25,001
9,249
4,816
5,406
-2,507
-2,303
-224
-4,125
-1,033
171
-4,525
1,794
233
-6,699
5,170
-530
-6,224
5,122
-1,209
-13,573
5,792
-2,677
-9,579
6,508
-1,203
-9,412
6,696
-2,805
-11,520
6,633
-2,600
-16,240
5,558
-2,713
-18,031
4,558
-3,193
-788
-1,432
-1,936
-3,561
-1,643
-9,205
-700
-10,793
-1,464
-10,433
-1,574
-9,335
-1,840
-9,065
-1,315
-10,081
-2,037
-10,239
-1,508
-8,577
-1,438
-8,635
Financing2
Reverse repurchase agreements
Overnight and continuing
Term agreements
Repurchase agreements4
18 Overnight and continuing....
19 Term agreements
16
17
26,754
48,247
29,099
52,493
44,078
68,357
69,377
78,394
72,392
80,007
77,247
219,416
74,755
81,571
80,414
86,109
76,417
86,872
76,930
89,648
75,713
694,822
49,695
43,410
57,946
44,410
75,717
57,047
103,403
67,346
107,884
67,645
93,334
74,425
108,763
69,521
113,292
72,157
11,824
68,719
122,220
74,254
113,650
83,299
1. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Before 1984, securities
owned, and hence dealer positions, do not include all securities acquired under
reverse RPs. After January 1984, immediate positions include reverses to maturity, which are securities that were sold after having been obtained under reverse
repurchase agreements that mature on the same day as the securities. Data for
immediate positions does not include forward positions.
2. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
3. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
4. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data for positions are averages of daily figures, in terms of par value,
based on the number of trading days in the period. Positions are shown net and are
on a commitment basis. Data for financing are based on Wednesday figures, in
terms of actual money borrowed or lent.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1985
Agency
1982
1983
1984
Apr.
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
4 Export-Import Bank2 3
5 Federal Housing Administration4
6 Government National Mortgage Association
participation certificates5
7 Postal Service6
8 Tennessee Valley Authority
9 United States Railway Association6
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association8
14 Farm Credit Banks
15 Student Loan Marketing Association
MEMO
16 Federal Financing Bank debt
May
June
July
Aug.
Sept.
237,787'
240,068'
271,22C
275,961'
279,449'
284,871'
286,159'
289,277'
288,513
33,055
354
14,218
288
33,940
243
14,853
194
35,145
142
15,882
133
35,182
107
15,707
123
34,915
102
15,706
122
35,646'
97
15,746'
119
35,354'
93
15,746'
118
35,338
89
15,744
116
35,902
82
15,418
117
2,165
1,471
14,365
194
2,165
1,404
14,970
111
2,165
1,337
15,435
51
2,165
1,337
15,776
74
2,165
97 (V
15,776
74
2,165
970
16,475
74
2,165
970
16,188
74
2,165
970
16,180
74
2,165
1,940
16,106
74
204,732'
55,967
4,524
70,052
71,896
2,293'
206,128'
48,930
6,793
74,594
72,409
3,402'
236,075'
65,085
10,270
83,720
71,255
5,745'
240,779'
65,257
12,004
86,913
69,882
6,723
244,534'
67,765
12,167
88,170
69,321
7,111
249,225
69,898
12,723
89,518
70,039
7,047
250,805'
70,244
13,197
90,208
70,069
7,087
253,939
71,949
13,393
91,318
70,092
7,187'
252,611
72,384
12,721
91,693
68,143
7,670
126,424
135,791
145,217
148,718
149,597
149,957'
152,962'
152,941
153,513
14,177
1,221
5,000
12,640
194
14,789
1,154
5,000
13,245
111
15,852
1,087
5,000
13,710
51
15,690
1,087
5,000
14,051
74
15,690
720
5,000
14,154
74
15,729
720
5,000
14,750
74
15,729
720
5,000
14,463
74
15,729
720
5,000
14,455
74
15,409
1,690
5,000
14,381
74
53,261
17,157
22,774
55,266
19,766
26,460
58,971
20,693
29,853
60,641
20,894
31,281
61,461
21,003
31,495
62,606
21,183
31,909
63,546
21,364
32,066
63,779
21,463
31,721
64,169
21,676
31,114
Lending to federal and federally sponsored
17
18
19
20
21
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other Lending10
22 Farmers Home Administration
23 Rural Electrification Administration
24 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: Notes, bonds, and debentures. Some data are estimated.
8. Before late 1981, the Association obtained financing through the Federal
Financing Bank.
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
1.45
DomesticNonfinancialStatistics • January 1986
NEW SECURITY ISSUES State and Local Governments
Millions of dollars
1985
Type of issue or issuer,
or use
1982
1983
1984
Jan.
1 All issues, new and refunding1
Feb.
Mar.
Apr.
May
June
July'
Aug.
79,138
86,421
106,641
6,607
8,510
9,873
12,095
14,097
11,801
12,268
15,197
21,094
225
58,044
461
21,566
96
64,855
253
26,485
16
80,156
17
1,887
7
4,720
3
3,527
0
4,983
0
2,998
5
6,875
0
3,265
0
8,830
2
4,535
2
9,562
0
2,739
0
9,062
1
5,257
0
7,011
6
3,160
0
12,037
2
Type of issuer
6 State
7 Special district and statutory authority
8 Municipalities, counties, townships, school districts
8,438
45,060
25,640
7,140
51,297
27,984
9,129
63,550
33,962
369
4,045
2,193
1,559
4,493
2,458
252
5,754
3,867
958
7,279
3,858
1,298
8,126
4,673
350
7,625
3,826
786
6,893
4,589
800
9,442
4,955
9 Issues for new capital, total
74,804
72,441
94,050
5,206
5,890
8,253
9,075
9,279
7,966
7,660
10,667
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
6,482
6,256
14,259
26,635
8,349
12,822
8,099
4,387
13,588
26,910
7,821
11,637
7,553
7,552
17,844
29,928
15,415
15,758
757
347
1,359
1,670
389
684
950
472
1,008
1,848
353
1,259
1,018
173
1,491
3,155
584
1,832
1,121
319
2,347
3,105
293
1,890
1,169
631
1,478
3,454
782
1,765
962
276
1,844
2,956
560
1,368
797
651
720
3,155
553
1,784
1,152
251
2,248
4,280
1,266
1,470
2
3
4
5
10
11
12
13
14
15
Type of issue
General obligation
U.S. government loans2
Revenue
U.S. government loans2
1. Par amounts of long-term issues based on date of sale.
2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration.
SOURCE. Public Securities Association.
1.46 NEW SECURITY ISSUES Corporations
Millions of dollars
Type of issue or issuer,
or use
1985
1982
1983
1984
Feb.
1
Mar.
Apr.
May
June
July
Aug.
Sept. p
1 All issues
84,638
120,074
132,311
6,743
14,005
11,790
12,896
19,391
11,854'
14,197'
11,010
2 Bonds2
54,076
68,495
109,683
4,027
11,641
8,850
9,738
15,651
8,647'
11,241'
8,794
Type of offering
3 Public
4 Private placement
44,278
9,798
47,369
21,126
73,357
36,326
4,027
n.a.
11,641
n.a.
8,850
n.a.
9,738
n.a.
15,651
n.a.
8,647'
n.a.
11,241'
n.a.
8,794
n.a.
12,822
5,442
1,491
12,327
2,390
19,604
16,851
7,540
3,833
9,125
3,642
27,502
24,607
13,726
4,694
10,679
2,997
52,980
1,476
469
30
80
353
1,619
5,660
974
130
500
300
4,077
922
1,317
334
860
0
5,418
1,500
639
357
1,136
150
5,956
8,044
865
512
585
125
5,520
2,688
1,642
76
423
110
3,709'
2,352
911
459
835
1,295
5,379
2,079
186
177
1,042
367
4,943
11 Stocks3
30,562
51,579
22,628
2,716
2,364
2,940
3,158
3,740
3,207
2,956
2,216
Type
12 Preferred
13 Common
5,113
25,449
7,213
44,366
4,118
18,510
218
2,498
311
2,053
312
2,628
634
2,524
726
3,014
631
2,576
603
2,353
653
1,563
5,649
7,770
709
7,517
2,227
6,690
14,135
13,112
2,729
5,001
1,822
14,780
4,054
6,277
589
1,624
419
9,665
229
760
153
283
101
1,190
224
472
32
197
15
1,424
283
1,019
522
157
5
954
504
624
33
185
119
1,693
558
1,453
236
91
151
1,251
601
562
0
87
99
1,798
225
1,288
79
73
18
1,273
656
400
107
47
7
999
5
6
7
8
9
10
14
15
16
17
18
19
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of 1933,
employee stock plans, investment companies other than closed-end, intracorporate transactions, and sales to foreigners.
2. Monthly data include only public offerings.
3. Beginning in August 1981, gross stock offerings include new equity volume
from swaps of debt for equity.
SOURCE. Securities and Exchange Commission and the Board of Governors of
the Federal Reserve System.
Securities Market and Corporate Finance
1.47
O P E N - E N D INVESTMENT COMPANIES
A35
N e t Sales and A s s e t Position
Millions of dollars
1985
1983
Item
1984
Mar.
Feb.
Apr.
May
June
July
Aug/
Sept.
INVESTMENT COMPANIES1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
107,486
77,031'
30,455'
14,786
8,005
6,781
14,582
9,412
5,170
18,049
13,500
4,549
16,408
10,069
6,339
18,191
9,836
8,355
20,284
11,502
8,782
18,049
10,837
7,212
16,932
9,959
6,973
113,599
8,343
105,256
4 Assets 4
5
Cash position5
Other
6
84,345
57,100
27,245
137,126
11,978
125,148
154,707
14,567
140,140
157,065
13,082
143,983
164,087
15,444
148,643
178,275
15,017
163,258
186,284
15,565
170,719
195,707
16,943
178,764
201,608
17,959
183,649
203,165
18,709
184,456
5. Also includes all U.S. government securities and other short-term debt
securities.
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund to
another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
1.48
CORPORATE PROFITS A N D THEIR
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.
DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1984
1983
Account
1982
1983
1985
1984
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3
2
3
4
5
6
1 Corporate profits with inventory valuation and
capital consumption adjustment
Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
159.1
165.5
60.7
104.8
69.2
35.6
225.2
203.2
75.8
127.4
72.9
54.5
285.7
235.7
89.8
145.9
80.5
65.3
260.0
225.5
84.5
141.1
75.4
65.6
277.4
243.3
92.7
150.6
77.7
72.9
291.1
246.0
95.8
150.2
79.9
70.2
282.8
224.8
83.1
141.7
81.3
60.3
291.6
228.7
87.7
141.0
83.1
58.0
292.3
222.3
85.3
137.0
84.5
52.5
298.5
221.0
83.6
137.4
85.6
51.8
321.4
232.8
88.2
144.7
86.4
58.3
7 Inventory valuation
8 Capital consumption adjustment
-9.5
3.1
-11.2
33.2
-5.6
55.7
-9.2
43.6
-13.5
47.6
-7.3
52.3
-.2
58.3
-1.6
64.5
.9
69.1
2.5
75.0
7.2
81.4
SOURCE. Survey of Current Business (Department of Commerce).
A36
DomesticNonfinancialStatistics • January 1986
1.49 NONFINANCIAL CORPORATIONS
Assets and Liabilities
Billions of dollars, except for ratio
1984
Account
1979
1980
1982
1981
1985
1983
Q2
Q3
Q4
Q1
Q2
1,214.8
1,327.0
1,418.4
1,432.7
1,557.3
1,630.1
1,666.1
1,682.0
1,694.7
1,704.0
118.0
16.7
459.0
505.1
116.0
126.9
18.7
506.8
542.8
131.8
135.5
17.6
532.0
583.7
149.5
147.0
22.8
519.2
578.6
165.2
165.8
30.6
577.8
599.3
183.7
154.7
36.9
615.4
629.8
193.4
150.0
33.2
630.6
656.9
195.4
160.9
36.6
622.3
655.6
206.6
153.5
35.2
635.2
664.6
206.2
154.6
35.1
635.9
663.7
214.7
7 Current liabilities
807.3
889.3
970.0
976.8
1,043.0
1,111.9
1,142.2
1,150.7
1,159.5
1,163.9
8 Notes and accounts payable
9 Other
460.8
346.5
513.6
375.7
546.3
423.7
543.0
433.8
577.8
465.3
605.1
506.9
623.9
518.2
627.4
523.3
615.6
543.9
625.9
538.1
407.5
437.8
448.4
455.9
514.3
518.1
523.9
531.3
535.2
540.1
1.505
1.492
1.462
1.467
1.493
1.466
1.459
1.462
1.462
1.464
1 Current assets
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
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
1. Ratio of total current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
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 .
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
1.50
TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1984
Industry
1983
1984
1985
19851
Q1
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other 2
Q3
Q4
Q1
Q2
Q3
Q41
304.78
354.44
383.98
337.95
349.97
361.48
368.29
371.16
387.83
389.54
387.40
53.08
63.12
66.24
72.58
73.58
79.86
61.23
68.68
64.03
71.93
68.26
74.18
71.43
75.53
69.87
75.78
73.96
80.36
75.80
82.02
74.68
81.30
15.19
16.86
16.08
17.24
16.38
16.82
17.00
15.66
16.51
16.32
15.81
4.88
4.36
4.72
6.79
3.56
6.17
7.24
4.28
6.05
6.06
3.35
5.87
7.34
3.53
6.14
7.31
3.72
6.47
6.44
3.65
6.18
6.02
4.20
6.01
7.48
3.66
6.37
8.06
4.86
6.09
7.43
4.39
5.74
37.27
7.70
114.45
37.03
10.44
134.75
35.53
12.56
148.81
38.27
8.81
128.42
37.79
10.16
132.67
36.63
11.28
136.80
35.40
11.52
141.13
36.65
11.81
145.16
36.04
12.43
151.02
35.29
13.11
148.00
34.13
12.86
151.05
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
Q2
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Securities Markets and Corporate Finance
1.51
DOMESTIC FINANCE COMPANIES
A37
Assets and Liabilities
Billions of dollars, end of period
1985
1984
Account
1981
1982
1983
Q2
Ql
Q4
Q3
Q2
Ql
Q3
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
72.4
100.3
17.9
190.5
78.1
101.4
20.2
199.7
87.4
113.4
22.5
223.4
87.4
120.5
22.2
230.1
90.5
124.4
23.0
238.0
95.6
124.5
25.2
245.3
96.7
135.2
26.3
258.3
99.1
142.1
27.2
268.5
106.0
144.6
28.4
279.0
116.4
141.4
29.0
286.5
Less:
5 Reserves for unearned income
6 Reserves for losses
30.0
3.2
31.9
3.5
33.0
4.0
32.8
4.1
33.9
4.4
36.0
4.3
36.5
4.4
36.6
4.9
38.6
4.8
41.0
4.9
7 Accounts receivable, net
8 All other
157.3
27.1
164.3
30.7
186.4
34.0
193.2
35.7
199.6
35.8
205.0
36.4
217.3
35.4
227.0
35.9
235.6
39.5
240.6
46.3
9 Total assets
184.4
195.0
220.4
228.9
235.4
241.3
252.7
262.9
275.2
286.9
10 Bank loans
11 Commercial paper
16.1
57.2
18.3
51.1
18.7
59.7
16.2
64.8
18.3
68.5
19.7
66.8
21.3
72.5
19.8
79.1
18.5
82.6
18.2
93.6
12 Other short-term
13 Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
11.3
56.0
18.5
25.3
12.7
64.4
21.2
27.4
13.9
68.1
30.1
29.8
14.1
70.3
32.4
31.1
15.5
69.7
32.1
31.4
16.1
73.8
32.6
32.3
16.2
77.2
33.1
32.3
16.8
78.3
35.4
33.5
16.6
85.7
36.9
34.8
16.6
86.4
36.6
35.7
184.4
195.0
220.4
228.9
235.4
241.3
252.7
262.9
275.2
286.9
1
2
3
4
LIABILITIES
16 Total liabilities and capital
NOTE. Components may not add to totals due to rounding.
These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
1.52 DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Changes in accounts
receivable
Type
Extensions
Repayments
1985
1985
1985
Accounts
receivable
outstanding
Sept. 30,
19851
July
1 Total
2
3
4
5
6
7
8
9
10
Retail financing of installment sales
Automotive (commercial vehicles)
Business, industrial, and farm equipment
Wholesale financing
Automotive
Equipment
All other
Leasing
Automotive
Equipment
Loans on commercial accounts receivable and factored commercial accounts receivable
All other business credit
1. Not seasonally adjusted.
Aug.
Sept.
r
July
Aug.
Sept.
July
Aug.
Sept.
-3,105
25,791
28,942
26,111
25,211
27,512'
29,216
141,092
580
l,430
13,733
20,198
366
-38
389
-37
660
-329
1,170
1,240
1,212
1,105
1,488
1,180
804
1,278
823
1,142
828
1,509
14,806
4,499
6,869
-997
83
30
759
-80
59
-4,746
6
118
8,497
638
1,576
10,471
882
1,695
7,853
508
1,751
9,494
555
1,606
9,712
962
1,636
12,599
502
1,633
15,591
37,940
251
584
461
231
409
271
1,090
1,223
1,117
1,048
1,119
1,215
839
639
656
817
710
944
16,221
11,235
207
154
-354'
2'
952
-446
9,201
1,156
9,994
1,418
9,654
1,343
8,994
1,002
10,348'
1,416^
8,702
1,789
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
A38
1.53
DomesticNonfinancialStatistics • January 1986
MORTGAGE
MARKETS
Millions of dollars; exceptions noted.
1985
Item
1982
1983
1984
Apr.
May
June
July
Aug.
Sept.
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)
Vield (percent per annum)
7 FHLBB series5
8 HUD series4
94.6
69.8
76.6
27.6
2.95
14.47
92.8
69.5
77.1
26.7
2.40
12.20
96.8
73.7
78.7
27.8
2.64
11.87
101.4
76.9
78.9
27.4
2.65
11.55
106.4
78.4
76.1
26.8
2.49
11.55
102.4
79.7
79.9
27.7
2.40
11.31
119.2
89.4
77.5
27.5
2.24
10.94
104.4
74.4
74.6
24.5
2.46
10.78
104.6»76.7'
76.0'
26.7'
2.62'
10.69'
100.2
74.5
75.8
26.8
2.60
10.56
15.12
15.79
12.66
13.43
12.37
13.80
12.05
13.01
12.01
12.49
11.75
12.06
11.34
12.09
11.24
12.06
11.17'
12.02
11.02
11.86
15.30
14.68
13.11
12.25
13.81
13.13
12.97
12.31
12.28
11.93
11.89
11.54
12.12
11.48
11.99
11.24
12.04
11.29
11.87
11.16
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series)5.
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
66,031
39,718
26,312
74,847
37,393
37,454
83,339
35,148
48,191
92,765
34,516
58,250
93,610
34,428
59,182
94,777
34,307
60,470
95,634
34,276
61,359
%,324
34,177
62,147
%,769
34,084
62,685
97,228
33,885
63,343
Mortgage transactions (during period)
14 Purchases
15
15,116
2
17,554
3,528
16,721
978
1,515
0
1,703
0
1,904
0
1,918
251
1,921
230
1,739
101
1,767
200
Mortgage commitments7
16 Contracted (during period)
17 Outstanding (end of period)
22,105
7,606
18,607
5,461
21,007
6,384
1,921
5,361
2,074
5,589
1,593
5,062
1,583
4,517
1,797
4,245
1,638
3,974
1,733
3,840
5,131
1,027
4,102
5,9%
974
5,022
9,283
910
8,373
11,615
850
10,765
11,879
843
11,036
12,576
838
11,738
12,844
842
12,002
13,521
835
12,686
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
23,673
24,170
23,089
19,686
21,886
18,506
2,201
1,973
3,591
3,189
4,106
3,292
4,626
4,200
3,602
2,682
n.a.
n.a.
n.a.
n.a.
28,179
7,549
32,852
16,964
32,603
13,318
4,141
n.a.
3,701
n.a.
5,172
n.a.
3,259
n.a.
3,958
n.a.
n.a.
n.a.
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)8
18
19
20
FHA/VA
Conventional
Mortgage transactions (during period)
21 Purchases
22
9
Mortgage commitments
23 Contracted (during period)
24 Outstanding (end of period)
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Any gaps in data are due to periods of adjustment to changes in
maximum permissible contract rates.
6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the
prevailing ceiling rate. Monthly figures are averages of Friday figures from the
Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Includes participation as well as whole loans.
9. Includes conventional and government-underwritten loans. FHLMC's mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real Estate
1.54
MORTGAGE DEBT
A39
OUTSTANDING
Millions of dollars, end of period
1985
1984
Type of holder, and type of property
1982
1983
1984
Q4
Q3
1
2
3
4
5
All holders
1- to 4-family
Multifamily
Commercial
Farm
6 Major financial institutions
7 Commercial banks1
1- to 4-family
8
Multifamily
9
10
Commercial
11
Farm
Ql
Q2
Q3
1,631,283
1,074,670
145,767
300,799
110,047
1,811,445
1,192,840
156,738
349,195
112,672
2,024,882'
1,329,353'
170,459'
410,669'
114,401'
1,975,321'
1,296,522'
167,847'
395,923'
115,031'
2,024,882'
1,329,353'
170,459'
410,669'
114,401'
2,070,301'
1,359,653'
175,435'
420,966'
114,247'
2,126,156'
1,397,795'
178,333'
436,310'
113,718'
2,182,162
1,439,029
181,720
449,822
111,590
1,021,327
301,272
173,804
16,480
102,553
8,435
1,108,249
330,521
182,514
18,410
120,210
9,387
1,241,197'
374,780'
196,540'
20,216'
147,845'
10,179'
1,215,159'
363,156
193,090
20,083
139,742
10,241
1,241,197'
374,780'
196,540'
20,2^
147,845'
10,179'
1,261,901
383,444
198,912
21,974
152,242
10,316
1,292,438'
395,956'
203,51C
21,698'
160,121'
10,627'
1,320,686
408,227
207,775
21,963
167,532
10,957
94,452
64,488
14,780
15,156
28
131,940
93,649
17,247
21,016
28
154,441
107,302'
19,817'
27,291'
31'
146,072'
101,810'
18,947'
25,285'
30
154,441
107,302'
19,817'
27,291'
31'
161,032
111,592'
20,668'
28,741'
31'
165,705'
114,375'
21,357'
29,942'
31
172,602
118,689
22,384
31,497
32
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
483,614
393,323
38,979
51,312
494,789
390,883
42,552
61,354
555,277
431,450
48,309
75,518
550,129
429,101
47,861
73,167
555,277
431,450
48,309
75,518
559,263
433,429
48,936
76,898
569,292
441,201
49,813
78,278
575,172
445,848
50,293
79,031
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
141,989
16,751
18,856
93,547
12,835
150,999
15,319
19,107
103,831
12,742
156,699
14,120
18,938
111,175
12,466
155,802
14,204
18,828
110,149
12,621
156,699
14,120
18,938
111,175
12,466
158,162
13,840
18,964
113,187
12,171
161,485
13,562
18,983
116,812
12,128
164,685
13,692
19,310
119,643
12,040
138,741
4,227
676
3,551
148,328
3,395
630
2,765
158,993
2,301
585
1,716
154,768
2,389
594
1,795
158,993
2,301
585
1,716
163,531'
1,964
576
1,388
165,906'
1,825
564
1,261
167,116
1,640
552
1,088
26 Federal and related agencies
27 Government National Mortgage Association
28
1- to 4-family
29
Multifamily
30
31
32
33
34
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
1,786
783
218
377
408
2,141
1,159
173
409
400
1,276
213
119
497
447
738
206
126
113
293
1,276
213
119
497
447
1,062
156
82
421
403
790
223
136
163
268
577
185
139
72
181
35
36
37
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
5,228
1,980
3,248
4,894
1,893
3,001
4,816
2,048
2,768
4,749
1,982
2,767
4,816
2,048
2,768
4,878
2,181
2,697
4,882
2,205
2,677
4,881
2,254
2,627
38
39
40
Federal National Mortgage Association —
1- to 4-family
Multifamily
71,814
66,500
5,314
78,256
73,045
5,211
87,940
82,175
5,765
84,850
79,175
5,675
87,940
82,175
5,765
91,975
86,129
5,846
94,777
88,788
5,989
96,769
90,590
6,179
41
42
43
Federal Land Banks
1- to 4-family
Farm
50,953
3,130
47,823
52,010
3,081
48,929
52,261
3,074
49,187
52,595
3,068
49,527
52,261
3,074
49,187
52,104'
3,064'
49,040
51,056'
3,006'
48,05c
49,255
2,900
46,355
44
45
46
Federal Home Loan Mortgage Corporation.
1- to 4-family
Multifamily
4,733
4,686
47
7,632
7,559
73
10,399
9,654
745
9,447
8,841
606
10,399
9,654
745
11,548
10,642
906
12,576
11,288
1,288
13,994
12,374
1,620
47 Mortgage pools or trusts 2
•.
48 Government National Mortgage Association
49
1- to 4-family
50
Multifamily
216,654
118,940
116,038
2,902
285,073
159,850
155,950
3,900
332,057
179,981
175,589
4,392
317,548
175,770
171,481
4,289
332,057
179,981
175,589
4,392
347,793
185,954
181,419
4,535
365,748
192,925
188,228
4,697
388,031
200,996
196,112
4,884
51
52
53
Federal Home Loan Mortgage Corporation.
1- to 4-family
Multifamily
42,964
42,560
404
57,895
57,273
622
70,822
70,253
569
63,964
63,352
612
70,822
70,253
569
76,759
75,781
978
83,327
82,369
958
91,095
90,137
958
54
55
56
Federal National Mortgage Association3 . . .
1- to 4-family
Multifamily
14,450
14,450
n.a.
25,121
25,121
n.a.
36,215
35,965
250
32,888
32,730
158
36,215
35,965
250
39,370
38,772
598
42,755
41,985
770
48,769
47,857
912
57
58
59
60
61
Farmers Home Administration
1- to 4-family
Multifamily
Commercial
Farm
40,300
20,005
4,344
7,011
8,940
42,207
20,404
5,090
7,351
9,362
45,039
21,813
5,841
7,559
9,826
44,926
21,595
5,618
7,844
9,869
45,039
21,813
5,841
7,559
9,826
45,710
21,928
6,041
7,681
10,060
46,741
21,962
6,377
8,014
10,388
47,171
22,012
6,527
8,114
10,518
254,561
155,496
36,644
30,843
31,578
269,795
164,360
38,587
35,024
31,824
292,635'
178,572'
41,014'
40,784'
32,265'
287,846'
175,293'
40,482'
39,621'
32,450
292,635'
178,572'
41,014'
40,784'
32,265'
297,076'
181,232'
41,822'
41,796'
32,226'
302,064'
184,529'
42,329'
42.98C
32,226'
306,328
188,052
42,836
43,933
31,507
62 Individual and others 4
63
1- to 4-family5
64 Multifamily
65 Commercial
66 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. Outstanding balances on FNMA's issues of securities backed by pools of
conventional mortgages held in trust. Implemented by FNMA in October 1981.
4. 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
for which separate data are not readily available.
5. Includes estimate of residential mortgage credit provided by individuals.
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
1.55
DomesticNonfinancialStatistics • January 1986
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 1 Total Outstanding, and N e t Change
Millions of dollars
1984
Holder, and type of credit
1983
1985
1984
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Amounts outstanding (end of period)
1 Total
383,701
460,500
460,500
461,530
463,628
471,567
479,935
488,666
495,813
503,834
By major holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies . . .
Mutual savings banks..
171,978
87,429
53,471
37,470
23,108
4,131
6,114
212,391
96,747
67,858
40,913
29,945
4,315
8,331
212,391
96,747
67,858
40,913
29,945
4,315
8,331
213,951
96,732
68,538
38,978
30,520
4,329
8,482
215,778
97,360
68,939
37,483
31,405
4,012
8,651
219,970
99,133
70,432
37,082
32,349
3,820
8,781
223,850
101,324
71,418
37,091
33,514
3,834
8,904
226,973
104,130
72,381
37,472
34,754
3,918
9,038
229,676
105,971
73,468
37,548
35,901
4,075
9,174
232,913
107,985
74,614
37,399
37,301
4,316
9,306
By mqjor type of credit
9 Automobile
10 Commercial banks...
11 Credit unions
12 Finance companies . .
143,114
67,557
25,574
49,983
172,589
85,501
32,456
54,632
172,589
85,501
32,456
54,632
173,769
86,223
32,781
54,765
175,491
87,333
32,973
55,185
179,661
89,257
33,687
56,717
183,558
90,915
34,159
58,484
187,795
92,403
34,620
60,772
191,315
94,099
35,139
62,077
194,678
95,763
35,687
63,228
13 Revolving
14 Commercial banks...
15 Retailers
16 Gasoline companies .
81,977
44,184
33,662
4,131
101,555
60,549
36,691
4,315
101,555
60,549
36,691
4,315
100,565
61,445
34,791
4,329
99,316
61,978
33,326
4,012
100,434
63,684
32,930
3,820
101,887
65,127
32,926
3,834
103,492
66,311
33,263
3,918
104,333
66,956
33,302
4,075
105,539
68,093
33,130
4,316
17 Mobile home
18 Commercial banks...
19 Finance companies ..
20 Savings and loans . . .
21 Credit unions
23,862
9,842
9,547
3,906
567
24,556
9,610
9,243
4,985
718
24,556
9,610
9,243
4,985
718
24,281
9,498
9,053
5,005
725
24,379
9,456
9,044
5,150
729
24,456
9,425
8,981
5,305
745
24,675
9,432
8,992
5,4%
755
24,925
9,445
9,016
5,699
765
25,205
9,480
9,061
5,887
777
25,545
9,493
9,146
6,117
789
22 Other
23 Commercial banks...
24 Finance companies . .
25 Credit unions
26 Retailers
27 Savings and loans . . .
28 Mutual savings banks
134,748
50,395
27,899
27,330
3,808
19,202
6,114
161,800
161,800
56,731
32,872
34,684
4,222
24,960
8,331
162,915
56,785
32,914
35,032
4,187
25,515
8,482
164,442
57,011
33,131
35,237
4,157
26,255
8,651
167,016
57,604
33,435
36,000
4,152
27,044
8,781
169,815
58,376
33,848
36,504
4,165
28,018
8,904
172,454
58,814
34,342
36,9%
4,209
29,055
9,038
174,960
59,141
34,833
37,552
4,246
30,014
9,174
178,072
59,564
35,611
38,138
4,269
31,184
9,306
2
3
4
5
6
7
8
56,731
32,872
34,684
4,222
24,960
8,331
Net change (during period)
29 Total
48,742
76,799
6,819
7,223
9,041
8,342
8,270
9,042
5,227
6,247
5,726'
By mqjor holder
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies . . .
Mutual savings banks ..
19,488
18,572
6,218
5,075
7,285
68
1,322
40,413
18,636
14,387
3,443
6,837
184
2,217
3,028
1,196
1,336
389
576
117
177
3,799
901
1,290
251
922
-91
151
5,071
1,203
1,423
269
997
-102
180
4,847
2,048
797
91
715
-142
-14
3,853
1,885
1,215
168
1,063
-45
131
4,108
2,373
673
341
1,327
59
161
1,690
1,218
797
-31
1,417
-51
187
1,824
1,629
1,149
112
1,338
21
174
1,764
2,371
479'
-99
%9
103
139
By mqjor type of credit
37 Automobile
38 Commercial banks...
39 Credit unions
40 Finance companies . .
16,856
8,002
2,978
11,752
29,475
17,944
6,882
9,298
2,687
1,275
640
772
2,887
1,616
598
673
3,198
1,790
6%
712
3,391
1,767
381
1,243
3,488
1,546
580
1,362
3,792
1,589
325
1,878
2,686
1,488
380
818
2,365
1,025
550
790
2,206'
136
226'
1,844
41 Revolving
42 Commercial banks...
43 Retailers
44 Gasoline companies .
12,353
7,518
4,767
68
19,578
16,365
3,029
184
1,445
1,001
327
117
1,957
1,809
239
-91
2,527
2,429
200
-102
2,631
2,698
75
-142
2,126
2,003
168
-45
2,429
2,095
275
59
-73
42
-64
-51
856
733
102
21
936
968
-135
103
45 Mobile home
46 Commercial banks...
47 Finance companies . .
48 Savings and loans . . .
49 Credit unions
1,452
237
776
763
64
694
-232
-608
1,079
151
117
29
-13
88
13
-159
-89
-144
60
14
282
41
33
192
16
-11
-50
-63
92
10
218
19
13
175
11
186
-21
-19
219
7
196
-31
1
217
9
324
-22
74
261
11
19P
3
-13
204
12
50 Other
51 Commercial banks...
52 Finance companies . .
53 Credit unions
54 Retailers
55 Savings and loans . . .
56 Mutual savings banks
18,081
3,731
6,044
3,176
308
6,522
1,322
27,052
6,336
9,946
7,354
414
5,758
2,217
2,570
723
437
683
62
488
177
2,538
463
372
678
12
862
151
3,034
811
458
711
69
805
180
2,331
432
868
406
16
623
-14
2,438
285
510
624
0
888
131
2,635
445
514
341
66
1,108
161
2,418
191
399
408
33
1,200
187
2,702
88
765
588
10
1,077
174
2,385'
657
540
248'
36
765
139
30
31
32
33
34
35
36
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.
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, not seasonally adjusted, $85.9 billion at the end of
1982, $96.9 billion at the end of 1983, and $116.6 biUion at the end of 1984.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
Consumer Installment Credit
1.56
TERMS OF CONSUMER INSTALLMENT
A41
CREDIT
Percent unless noted otherwise
1985
Item
1982
1984
1983
Apr.
Mar.
July
June
May
Aug.
Sept.
INTEREST RATES
1
2
3
4
5
6
Commercial banks 1
48-month new car 2
24-month personal
120-month mobile home 2
Credit card
Auto finance companies
New car
Used car
16.82
18.64
18.05
18.51
13.92
16.50
16.08
18.78
13.71
16.47
15.58
18.77
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
13.16
16.09
15.03
18.74
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.72
15.84
14.72
18.62
n.a.
n.a.
n.a.
n.a.
16.15
20.75
12.58
18.74
14.62
17.85
12.65
17.78
11.92
17.78
11.87
17.84
12.06
17.77
12.46
17.49
10.87
17.57
8.84
17.31
45.9
37.0
45.9
37.9
48.3
39.7
52.2
41.3
51.5
41.3
50.9
41.4
51.3
41.3
51.7
41.5
51.1
41.6
51.2
41.4
85
90
86
92
88
92
91
93
91
93
91
94
91
94
91
95
91
95
92
95
8,178
4,746
8,787
5,033
9,333
5,691
9,232
5,976
9,305
6,043
9,775
6,117
9,965
6,116
10,355
6,146
10,422
6,139
10,449
6,097
OTHER TERMS 3
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. Data for midmonth of quarter only.
2. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
3. At auto finance companies.
NOTE. These data also appear in the Board's G.19 (421) release. For address,
see inside front cover.
A42
1.57
DomesticNonfinancialStatistics • January 1986
F U N D S RAISED IN U.S. CREDIT
MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1982
H2
1983
1984
1985
HI
H2
HI
H2
HI
508.8
569.0
704.0
807.3
708.4
224.9
225.0
-.1
182.3
182.4
-.1
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
388.7
340.0
371.6
398.3
538.9
755.6
442.1
37.4
38.8
-1.4
79.2
79.8
-.6
87.4
87.8
-.5
161.3
162.1
-.9
186.6
186.7
-.1
198.8
199.0
-.2
218.4
218.8
-.4
222.0
222.1
-.1
151.1
151.2
-.1
172.7
172.9
-.2
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
Corporate bonds
8
Mortgages
9
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
351.3
213.9
30.3
17.3
166.2
121.7
8.3
24.4
11.8
260.8
186.3
30.3
26.7
129.4
93.8
7.1
19.2
9.3
284.2
153.7
23.4
21.8
108.5
71.6
4.8
22.2
9.9
237.0
153.5
48.6
18.7
86.2
50.4
5.3
25.2
5.3
352.3
249.1
57.3
16.0
175.7
115.6
9.4
47.6
3.0
556.8
322.1
65.8
42.3
214.1
139.2
14.0
58.8
2.1
223.7
167.1
54.6
25.3
87.1
50.1
5.8
27.3
3.9
286.7
225.4
57.3
21.4
146.7
96.2
6.3
42.3
1.9
417.9
272.7
57.3
10.6
204.7
135.1
12.6
53.0
4.1
531.3
281.8
38.9
24.4
218.5
144.8
16.0
55.6
2.0
582.4
362.4
92.6
60.2
209.6
133.5
12.0
62.0
2.1
526.1
344.1
80.5
61.4
202.2
140.8
13.9
49.0
-1.5
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
137.5
45.4
51.2
11.1
29.7
74.5
4.7
37.0
5.7
27.1
130.5
22.7
54.7
19.2
33.9
83.6
20.1
54.1
-4.7
14.0
103.3
59.8
26.7
-1.6
18.3
234.8
96.5
79.4
23.7
35.2
56.6
21.7
41.9
-19.3
12.4
61.3
44.1
13.7
-10.0
13.6
145.2
75.5
39.8
6.9
23.1
249.5
102.1
90.2
33.5
23.7
220.0
90.9
68.7
13.8
46.7
182.0
122.3
16.6
15.6
27.6
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
351.3
17.6
181.0
21.4
35.3
96.0
260.8
17.2
117.9
14.3
31.0
80.4
284.2
6.8
119.2
16.4
38.4
103.4
237.0
25.9
90.4
7.9
40.9
71.9
352.3
37.6
190.4
4.5
65.2
54.6
556.8
45.0
249.5
2.9
77.8
181.7
223.7
29.3
93.5
5.9
42.1
52.9
286.7
36.1
156.0
1.1
55.5
38.0
417.9
39.2
224.8
7.8
75.0
71.1
531.3
21.4
248.2
2.1
83.0
176.6
582.4
68.6
250.7
3.8
72.5
186.8
526.1
66.6
273.1
-10.5
69.6
127.3
25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29 U.S. government loans
20.2
3.9
2.3
11.2
2.9
27.2
.8
11.5
10.1
4.7
27.2
5.4
3.7
13.9
4.2
15.7
6.7
-6.2
10.7
4.5
18.9
3.8
4.9
6.0
4.3
1.7
4.1
-7.8
1.4
4.0
21.2
11.0
-4.7
9.0
6.0
15.3
4.6
11.3
-4.6
3.9
22.5
2.9
-1.5
16.5
4.6
22.9
1.1
-4.6
20.9
5.5
-19.5
7.0
-11.0
-18.1
2.6
-14.2
4.8
-11.7
-8.8
1.5
408.9
367.2
398.8
414.0
557.8
757.4
463.3
524.0
591.5
726.9
787.8
694.3
30 Total domestic plus foreign
Financial sectors
31 Total net borrowing by financial sectors
By instrument
32 U.S. government related
33 Sponsored credit agency securities
34 Mortgage pool securities
36 Private financial sectors
37 Corporate bonds
38 Mortgages
39 Bank loans n.e.c
40 Open market paper
41 Loans from Federal Home Loan Banks
By sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Finance companies
49 REITs
82.4
57.6
89.0
76.2
85.2
130.3
57.5
66.7
103.7
119.2
141.3
177.9
47.9
24.3
23.1
.6
34.5
7.8
44.8
24.4
19.2
1.2
12.8
1.8
47.4
30.5
15.0
1.9
41.6
3.5
64.9
14.9
49.5
.4
11.3
9.7
.1
1.9
-1.1
.8
67.8
1.4
66.4
74.9
30.4
44.4
69.7
7.5
62.2
66.2
-4.1
70.3
69.4
6.9
62.5
69.6
29.9
39.7
80.1
31.0
49.2
105.0
26.1
78.9
17.4
8.6
-12.2
11.2
.1
.6
-14.6
-9.5
.5
6.4
34.4
10.7
*
61.2
24.7
-.1
1.6
19.5
15.5
72.8
31.9
*
-.2
16.0
-7.0
55.4
18.5
-.1
1.0
20.4
15.7
29.3
11.6
1.4
66.4
17.4
.5
8.6
-2.1
11.3
.3
30.4
44.4
55.4
4.4
10.9
22.7
18.1
.2
7.5
62.2
-12.2
1.7
-5.8
-9.3
1.9
*
*
*
-.5
18.0
9.2
-.9
4.8
7.1
.9
20.9
16.2
24.8
23.1
34.5
1.6
6.5
12.6
15.3
-.1
25.6
19.2
12.8
.5
6.9
7.4
-1.1
-.5
32.4
15.0
41.6
.4
8.3
15.5
18.2
-.2
15.3
49.5
11.3
1.2
1.9
2.5
6.3
*
*
*
-2.5
8.7
-12.1
2.2
23.4
-2.0
49.6
12.2
-.1
.3
21.3
15.9
-4.1
70.3
.5
.8
6.1
-9.3
3.9
-.3
6.9
62.5
34.4
.2
11.1
5.2
18.8
-.2
29.9
39.7
49.6
4.8
20.0
19.7
5.6
.3
31.0
49.2
61.2
3.9
1.8
25.6
30.6
.1
26.1
78.9
72.8
8.2
8.2
5.6
51.6
.1
590.7
288.4
57.3
32.5
146.6
44.1
22.5
-5.9
5.3
695.2
220.5
57.3
24.3
204.7
75.5
40.4
46.8
25.7
846.1
242.4
38.9
37.7
218.3
102.1
85.9
75.7
45.1
929.2
305.1
92.6
92.0
209.4
90.9
59.3
15.2
64.8
872.1
287.4
80.5
98.1
202.1
122.3
4.9
36.1
40.8
-40.8
39.6
-80.4
-84.5
4.8
-.7
-25.5
35.7
-61.2
-69.4
5.3
2.9
25.4
94.9
-69.5
-78.7
5.4
3.8
*
*
All sectors
50 Total net borrowing
51 U.S. government securities
52 State and local obligations
53 Corporate and foreign bonds
54 Mortgages
55 Consumer credit
56 Bank loans n.e.c
57 Open market paper
58 Other loans
491.3
84.8
30.3
29.0
166.1
45.4
52.9
40.3
42.4
424.9
122.9
30.3
29.3
129.3
4.7
47.7
20.6
40.1
487.8
133.0
23.4
30.7
108.4
22.7
59.2
54.0
56.2
490.2
225.9
48.6
35.0
86.2
20.1
49.9
4.9
19.7
643.0
254.4
57.3
28.4
175.6
59.8
31.4
20.4
15.5
887.6
273.8
65.8
64.8
213.9
96.5
72.6
45.4
54.9
520.8
288.3
54.6
47.5
87.1
21.7
37.8
-25.0
8.9
External corporate equity funds raised in United States
59 Total new share issues
60 Mutual funds
61 All other
62
Nonfinancial corporations
63
Financial corporations
64
Foreign shares purchased in United States
-4.3
.1
-4.3
-7.8
2.7
.8
21.9
5.2
16.8
12.9
1.8
2.1
-3.0
6.3
-9.3
-11.5
1.9
.3
35.3
18.4
16.9
11.4
4.0
1.5
67.8
32.8
35.0
28.3
2.7
4.0
-33.1
37.7
-70.8
-77.0
5.1
1.1
47.2
24.3
22.9
15.8
4.1
3.0
83.4
36.8
46.7
38.2
2.7
5.7
52.1
28.9
23.2
18.4
2.6
2.2
Flow
1.58
of
Funds
A43
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.
1984
1982
1980
Transaction category, or sector
1981
1983
1984
H2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
398.3
97.7
17.1
23.5
16.2
40.9
114.1
22.7
117.5
27.6
76.1
-7.0
23.7
45.6
4.5
23.3
24.0
48.2
9.2
15.9
65.5
9.8
16.2
20.2
44.8
27.2
381.6
91.0
30.3
18.5
94.2
156.7
9.2
442.1
538.9
388.7
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
75.2
-6.3
35.8
9.2
36.5
97.1
15.8
31.7
7.1
42.5
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
19.0
53.1
7.7
-4.5
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools .
Foreign
47.9
H2
HI
569.0
120.2
114.7
14.4
72.1
H2
807.3
1.4
123.2
29.5
52.8
15.9
25.1
161.2
42.5
60.1
15.5
43.2
193
1.6
521.8
86..5
11.6
421.7
26.5
73.0
4.9
56.9
5i.2
111.2
27'.9
491.2
80.1
20.8
142.2
36.0
56.5
15.7
34.1
127.1
35.7
74.5
-9.5
26.5
40.7
80.2
-12.1
11.5
17.2
73.3
8.4
43.4
17.1
69.1
15.7
25.3
9.1
68.6
15.6
27.0
10.3
71.0
22.8
9.7
69.8
10.9
27.1
27.2
7.9
73.6
11.9
29.9
47.4
27.2
64.9
15.7
67.8
18.9
74.9
1.7
69.7
21.2
66.2
15.3
69.4
22.5
69.6
22.9
-19.5
1051.0
- 1 4L2
314.9
107.1
30.3
19.3
69.1
96.3
7.1
348.5
115.9
23.4
364.8
203.1
48.6
14.8
-5.5
104.6
508.1
226.9
57.3
14.9
48.9
153.0
-7.0
690.0
237.8
65.8
29.9
96.6
275.6
15.7
405.9
252.6
54.6
29.6
-18.7
78.2
-9.5
470.0
247.6
57.3
21.4
22.2
109.4
-12.1
546.1
206.1
57.3
8.5
75.5
196.7
-2.0
673.3
213.0
38.9
17.7
107.9
311.7
15.9
706.8
262.7
92.6
42.2
85.3
239.5
15.5
605i.7
2341.7
80
1.5
33
L2
68
!.l
200
).9
11
1.6
316.4
123.1
56.5
85.6
51.2
281.3
100.6
54.5
94.5
31.7
317.2
102.3
27.4
97.6
89.9
287.6
107.2
31.4
107.4
41.5
382.7
136.1
140.5
94.2
11.9
553.2
181.9
143.0
123.1
105.1
300.7
114.5
37.6
103.8
44.8
334.6
132.7
83.0
-2.7
430.7
150.6
148.4
105.3
26.5
548.1
196.0
161.5
111.8
78.8
558.3
167.9
124.6
134.4
131.4
465i.O
).3
140
1.
78 0
101.6
i.2
145
25 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
316.4
137.4
34.5
281.3
169.6
317.2
211.9
41.6
287.6
174.4
11.3
382.7
205.2
17.4
553.2
287.7
55.4
300.7
201.7
334.6
194.1
.5
430.7
216.3
34.4
548.1
277.1
49.6
558.3
298.2
-12.2
61.2
465i.O
i.2
186
!.8
72
28
29
30
31
32
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
144.5
27.6
.4
72.9
43.6
98.8
-21.7
63.7
-8.7
-1.1
90.7
-17.2
101.8
160.0
22.1
-5.3
95.1
48.1
210.1
-26.7
6.1
103.2
19.3
111.2
-25.1
14.1
95.3
26.9
140.0
-14.2
10.1
83.5
60.6
180.0
58.5
-20.8
106.8
35.6
221.3
27.2
1.7
198.9
10.9
6.4
105.5
76.2
2061.0
26
i.3
20
1.1
931.3
66i.2
33
34
35
36
37
38
Private domestic nonfinancial investors
Direct lending in credit markets
U.S. government securities
State and local obligations
Corporate and foreign bonds
Open market paper
Other
99.7
52.5
9.9
-1.4
8.6
30.1
46.5
24.6
7.0
-11.0
-3.1
29.1
88.5
32.1
29.2
3.9
-.6
24.0
142.8
88.3
43.5
-9.2
6.5
13.7
192.2
122.8
42.2
*
93.0
28.9
29.7
13.8
-4.7
25.4
135.9
97.5
47.2
-14.5
149.8
79.1
39.8
-4.0
19.1
15.6
174.8
128.3
24.3
-8.4
4.4
26.2
209.6
117.3
2131.5
123i.5
41 .9
13i.l
11.6
231.4
146.8
8.0
18.3
59.3
34.4
181.1
181.6
224.4
14.3
23.0
219.5
-44.1
-7.5
14.3
4.8
292.2
8.6
21.4
149.2
47.2
75.7
-5.8
-4.0
211.5
12.7
29.3
193.1
215.9
14.8
49.1
278.9
-84.0
-61.0
232.8
13.8
-3.0
288.5
15.9
25.0
129.9
30.2
88.8
3.3
-4.5
296.0
1.4
17.7
2
3
4
5
6
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
20
21
22
23
24
Private financial intermediation
Credit market funds advanced by private financial
institutions
Commercial banking
Savings institutions
Insurance and pension funds
Other finance
39 Deposits and currency
40 Currency
41 Checkable deposits
42 Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45 Security RPs
46 Deposits in foreign countries
18.8
6.6
1.5
18.8
52.9
153.8
83.7
39.4
72.9
29.3
11.1
-3.9
2.7
33.7
221.9
9.5
10.3
5.2
82.9
29.2
45.8
6.5
18.0
47.0
107.5
36.9
2.5
.5
1.1
47 Total of credit market instruments, deposits and
currency
18.4
82.9
23.1
MEMO: Corporate equities not included above
51 Total net issues
52 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
-4.3
.1
-4.3
12.9
-17.1
13.
30.
31.
10.0
-37.3
6.6
-2.9
-6.0
11.8
11.0
7.0
160.1
-4.2
45.9
17.5
2.7
118.0
74.6
60.1
8.5
-6.5
30.3
168.6
64.2
62.7
-15.0
-3.6
304.5
351.8
18.8
27.4
74.1
.1
22.9
71.2
12.8
19.4
78.9
85.7
-3.0
35.3
67.8
-33.1
47.2
83.4
52.1
-40.8
-25.5
6.3
-9.3
20.9
-23.9
18.4
16.9
37.1
-1.8
32.8
35.0
56.4
11.4
37.7
-70.8
11.1
-44.3
24.3
22.9
63.9
-16.7
36.8
46.7
76.2
7.2
28.9
23.2
36.5
15.6
39.6
-80.4
35.7
-61.2
19.6
-45.1
80.2
62.4
17.0
81.4
57.0
2.6
-43.4
2031.8
1.8
18
17.1
1621.5
4,2
- 2 1.3
4..7
- 1 .2
'.3
463.3
484.5
Line 1 of table 1.58.
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.
Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also
sum of lines 28 and 47 less lines 40 and 46.
Includes farm and commercial mortgages.
Line 39 less lines 40 and 46.
Excludes equity issues and investment company shares. Includes line 19.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
Demand deposits at commercial banks.
Excludes net investment of these reserves in corporate equities.
28.2
6.2
21.1
75.3
49.2
24.5
91.0
7.6
NOTES BY LINE NUMBER.
18.
26.
27.
29.
-1.0
30.2
367.2
21.9
5.2
16.8
24.9
-3.0
19.0
4.0
111.7
75.4
121.6
-2.0
27.6
78.8
-3.9
26.4
89.3
1.6
1.
2.
6.
11.
9.7
15.4
138.1
24.7
-7.7
3.8
-2.5
294.7
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
48
49
50
.8
29.5
16.2
12.8
-2.6
61.0
20.5
79.0
67.8
'.9
i.8
i.5
251.4
94 . 9
- 6 91.5
56I.9
- 3 1 .5
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 12 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes
mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2Aine 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
2.10
DomesticNonfinancialStatistics • January 1986
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures'
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1985
Measure
1982
1983
1984
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct.
1
Industrial production
103.1
109.2
121.8
123.7
124.0
124.1
124.1
124.3
124.1
125.0
124.9
124.9
2
3
4
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
107.8
109.5
101.4
120.2
101.7
96.7
113.9
114.7
109.3
121.7
111.2
102.8
127.1
127.8
118.2
140.5
124.9
114.6
129.8
130.4
119.1
145.3
127.7
115.4
130.3
130.8
119.8
145.4
128.6
115.5
130.8
131.3
119.5
146.9
129.3
115.0
131.4
131.7
120.0
147.1
130.3
114.2
131.6
131.6
120.4
146.6
131.4
114.3
131.6
131.8
120.1
147.3
130.7
113.8
132.9
133.2
121.4
149.0
131.8
114.2
132.9
133.4
121.5
149.1
131.4
113.9
133.1
133.4
121.8
148.9
131.8
113.7
8
Industry groupings
Manufacturing
102.2
110.2
123.9
125.8
126.3
126.6
126.6
126.7
126.9
128.1
127.9
127.9
70.3
71.7
74.0
75.3
80.8
82.3
80.4
81.5
80.5
81.4
80.5
80.9
80.3
80.1
80.1
80.1
80.1
79.5
80.6
79.7
80.3
79.3
80.1
79.0
9
10
Capacity utilization (percent)2
Manufacturing
Industrial materials industries
11
Construction contracts (1977 = 100)3
111.0
137.0
149.0
145.0
162.0
161.0
162.0
142.0
164.0
163.0
166.0
169.0
12
13
14
15
16
17
18
19
20
21
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income5
Retail sales (1977 = 100)6
136.1
102.2
96.6
89.1
154.7
410.3
367.4
285.5
398.0
148.1
137.1
100.1
94.8
87.9
157.3
435.6
388.6
294.7
427.1
162.0
143.6
106.1
99.8
94.0
164.1
478.1
422.5
323.6
470.3
179.0
146.8
107.5
100.6
93.3
168.3
499.4
440.5
332.9
484.7
186.1
147.3
107.5
100.4
93.0
169.1
501.0
443.7
334.8
481.3
185.7
147.6
107.6
100.1
92.6
169.5
505.5
445.7
333.5
496.3
191.5
148.0
107.5
99.9
92.3
170.3
502.2
446.8
333.9
504.5
190.7
148.1
107.3
99.7
92.0
170.5
504.1
449.8
334.7
492.1
188.8
148.5
107.2
99.5
91.8
171.1
506.2
450.4
334.6
494.0
189.9
148.9
107.3
99.6
91.9
171.7
507.4
452.6
335.9
494.6
194.2
149.1
107.1
99.1
91.4
172.2
509.1
455.6
336.1
495.7
198.4
149.7
107.5
99.4
91.8
172.9
511.2
457.3
337.9
497.4
190.1
22
23
Prices7
Consumer
Producer finished goods
289.1
280.7
298.4
285.2
311.1
291.1
317.4
292.6
318.8
292.1
320.1
293.1
321.3
294.1
322.3
293.9
322.8
294.8
323.5
293.5
324.5
290.2
325.5
294.8
1. A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See " A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the last two months are preliminary and
estimated, respectively.
Selected Measures
2.11
LABOR FORCE, EMPLOYMENT, A N D
A45
UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1985
Category
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population1
174,450
176,414
178,602
179,891
180,024
180,171
180,322
180,492
180,657
180,831
181,011
7 Labor force (including Armed Forces) 1
3 Civilian labor force
112,383
110,204
113,749
111,550
115,763
113,544
117,738
115,514
117,596
115,371
117,600
115,373
117,009
114,783
117,543
115,314
117,551
115,299
118,077
115,818
118,400
116,159
96,125
3,401
97,450
3,383
101,685
3,321
103,757
3,362
103,517
3,428
103,648
3,312
103,232
3,138
103,737
3,126
104,080
3,092
104,568
2,976
104,841
3,026
10,678
9.7
62,067
10,717
9.6
62,665
8,539
7.5
62,839
8,396
7.3
62,153
8,426
7.3
62,428
8,413
7.3
62,571
8,413
7.3
63,313
8,451
7.3
62,949
8,127
7.0
63,106
8,274
7.1
62,754
8,291
7.1
62,611
9 Nonagricultural payroll employment3
89,566
90,196
94,461
96,910
97,120
97,421
97,473
97,707
97,977'
98,115
98,529
Manufacturing
Mining
Contract construction
Transportation and public utilities
18,781
1,128
3,905
5,082
20,457
5,341
19,036
15,837
18,434
952
3,948
4,954
20,881
5,468
19,694
15,870
19,412
974
4,345
5,171
22,134
5,682
20,761
15,987
19,526
977
4,553
5,269
22,963
5,835
5,274
16,143
19,467
982
4,641
5,278
23,013
5,858
5,278
16,158
19,426
982
4,658
5,301
23,140
5,888
5,270
16,213
19,398
974
4,638
5,295
23,193
5,906
5,276
16,213
19,351
969
4,660
5,302
23,226
5,932
5,284
16,341
19,362'
965'
4,688'
5,282'
23,305'
5,959'
5,314
16,343'
19,272'
960'
4,723'
5,319'
23,339'
5,985'
5,338
16,380'
19,332
958
4,755
5,315
23,448
6,002
5,356
16,433
Nonagricultural industries2
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
4
5
ESTABLISHMENT SURVEY DATA
10
11
1?
13
14
15
16
17
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A46
2.12
Domestic Nonfinancial Statistics • J a n u a r y 1986
OUTPUT, CAPACITY, A N D CAPACITY
UTILIZATION
Seasonally adjusted
1984
1985
Q4
Q1
Q2
1984
Q3r
Output (1977 = 100)
Q4
1985
Q1
Q2
1984
Q3
Capacity (percent of 1977 output)
1985
Q4
Qi
Q2r
Q3'
Utilization rate (percent)
1 Total industry
123.1
123.8
124.2
124.7
151.7
152.8
154.0
155.1
81.2
81.0
80.7
80.4
2 Mining
3 Utilities
108.3
111.1
110.1
114.2
110.0
113.6
108.5
111.0
133.1
133.0
133.4
133.7
133.6
134.5
133.9
135.4
81.3
83.5
82.6
85.5
82.3
84.4
81.0
82.0
4 Manufacturing
125.8
126.0
126.6
127.7
155.2
156.5
157.7
158.9
81.0
80.5
80.3
80.3
5 Primary processing . . .
6 Advanced processing
107.0
137.0
107.5
137.1
108.1
137.9
109.4
138.7
131.4
169.6
131.6
171.4
132.0
173.2
132.4
174.9
81.5
80.8
81.6
80.0
81.9
79.6
82.6
79.3
7 Materials
114.5
115.4
114.5
114.0
140.7
141.6
142.5
143.4
81.4
81.5
80.4
79.5
8 Durable goods
9 Metal materials
10 Nondurable g o o d s . . . .
11 Textile, paper, and chemical..
12
Paper
13
Chemical
123.7
80.4
110.9
110.7
126.2
110.9
123.6
80.6
110.9
111.6
126.3
113.2
121.4
80.2
111.2
111.0
121.8
112.6
120.7
79.4
113.0
113.4
123.9
113.9
154.4
117.8
136.8
136.2
135.3
141.1
155.9
117.3
137.3
136.7
136.1
141.5
157.4
117.3
137.8
137.0
136.2
142.0
158.9
117.3
138.2
137.4
136.3
142.6
80.1
68.2
81.0
81.3
93.3
78.6
79.3
68.7
80.7
81.7
92.8
80.0
77.1
68.4
80.7
81.0
89.4
79.3
75.9
67.7
81.7
82.5
90.9
79.9
14 Energy materials
101.3
105.0
105.2
103.1
119.7
120.0
120.3
120.6
84.6
87.5
87.5
85.5
Previous cycle1
High
Low
Latest cycle2
High
Low
1984
Oct.
1985
Feb.
Mar.
Apr.
May
June r
July'
Aug/
Sept/
Oct.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
81.1
80.9
81.0
80.8
80.6
80.5
80.2
80.6
80.4
80.2
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
80.6
82.4
82.1
86.7
82.8
85.0
82.1
84.6
82.2
84.5
82.7
84.1
81.2
81.9
81.1
81.4
80.7
82.7
79.6
82.4
18 Manufacturing
87.7
69.9
86.5
68.0
81.1
80.4
80.5
80.5
80.3
80.1
80.1
80.6
80.3
80.1
19 Primary processing . . .
20 Advanced processing .
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
81.8
80.7
81.5
79.8
81.8
79.8
82.1
79.7
81.5
79.8
82.0
79.3
82.3
79.1
82.8
79.6
82.6
79.2
82.7
78.9
21 Materials
92.0
70.5
89.1
68.4
81.3
81.5
81.4
80.9
80.1
80.1
79.5
79.7
79.3
79.0
22 Durable goods
23 Metal materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
80.3
68.1
79.1
68.2
78.9
69.8
78.3
69.9
76.6
66.2
76.5
69.0
75.8
66.4
76.4
69.0
75.5
67.7
75.3
68.5
24 Nondurable goods . . . .
25 Textile, paper, and
chemical
26
Paper
27
Chemical
91.1
66.7
88.1
70.6
81.4
81.1
80.2
80.2
80.8
81.0
81.7
81.7
81.8
81.8
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
82.0
93.7
78.6
82.0
92.6
80.2
81.4
92.1
79.5
80.7
89.1
79.2
80.9
88.8
79.5
81.4
90.5
79.2
82.7
91.7
80.1
82.3
90.6
79.5
82.6
90.3
80.1
82.7
n.a.
n.a.
28 Energy materials
94.6
86.9
94.0
82.2
83.5
87.4
88.4
87.6
87.5
87.3
85.8
85.2
85.4
84.6
1. Monthly high 1973; monthly low 1975.
2. Monthly highs 1978 through 1980; monthly lows 1982.
NOTE. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
Selected Measures
2.13
INDUSTRIAL PRODUCTION
Indexes and Gross Value
A47
A
Monthly data are seasonally adjusted
1977
Grouping
portion
1985
1984
1984
avg.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.P
Oct.''
Index (1977 = 100)
MAJOR MARKET
100.00
121.8
122.7
123.4
123.3
123.6
123.7
124.0
124.1
124.1
124.3
124.1
125.0
124.9
124.9
2 Products
3 Final products
4
Consumer goods
Equipment
5
57.72
44.77
25.52
19.25
127.1
127.8
118.2
140.5
129.0
129.9
118.5
145.0
129.9
130.7
119.6
145.5
129.8
130.6
119.7
144.9
129.6
130.4
118.8
145.7
129.8
130.4
119.1
145.3
130.3
130.8
119.8
145.4
130.8
131.3
119.5
146.9
131.4
131.7
120.0
147.1
131.6
131.6
120.4
146.6
131.6
131.8
120.1
147.3
132.9
133.2
121.4
149.0
132.9
133.4
121.5
149.1
133.1
133.4
121.8
148.9
6 Intermediate products
7 Materials
12.94
42.28
124.9
114.6
126.2
114.2
127.2
114.6
127.3
114.6
126.8
115.4
127.7
115.4
128.6
115.5
129.3
115.0
130.3
114.2
131.4
114.3
130.7
113.8
131.8
114.2
131.4
113.9
131.8
113.7
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
112.6
109.8
103.0
93.2
121.2
120.1
114.8
136.2
137.5
117.6
97.8
111.4
104.2
95.0
84.0
115.4
118.1
116.9
140.5
142.2
118.1
99.3
113.3
110.2
103.1
89.7
127.8
121.1
115.8
137.4
138.4
118.1
99.0
113.1
111.6
104.7
95.6
121.5
122.1
114.3
137.2
138.2
114.1
97.9
112.8
114.2
112.5
102.5
131.1
116.8
111.6
126.1
126.6
112.7
100.6
112.8
115.4
111.7
100.7
132.0
121.1
110.9
127.1
127.2
117.9
95.1
113.5
115.1
110.5
101.3
127.5
122.0
112.2
131.8
131.8
117.7
95.0
111.5
113.1
109.0
100.5
124.7
119.4
110.2
126.9
127.1
118.1
93.7
111.8
113.6
109.6
98.1
130.9
119.6
110.4
129.3
128.7
116.9
93.1
112.0
113.4
109.4
97.0
132.3
119.4
110.9
131.5
131.7
119.6
91.2
111.3
115.0
113.7
101.1
137.2
116.8
108.4
121.6
123.2
122.2
91.2
114.0
120.0
120.2
101.3
155.4
119.6
109.5
124.5
125.5
119.5
93.0
113.2
118.1
116.6
98.8
149.7
120.4
109.4
123.7
125.6
120.0
93.1
112.5
114.2
110.7
92.3
19 Nondurable consumer goods
20 Consumer staples
21
Consumer foods and tobacco
22
Nonfood staples
23
Consumer chemical products ..
24
Consumer paper products
25
Consumer energy
26
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
120.2
125.0
126.2
123.9
137.4
138.4
101.4
89.3
113.7
121.0
126.7
128.2
125.4
141.3
140.0
100.5
88.8
112.4
121.8
127.4
127.6
127.5
143.3
141.5
103.0
89.9
116.3
122.1
127.7
129.1
126.5
142.7
141.8
100.7
87.7
113.9
121.1
126.6
127.1
126.0
142.9
141.2
99.9
85.1
115.0
121.4
126.9
127.8
126.0
143.2
138.1
101.5
84.9
118.4
122.1
127.9
128.0
127.7
145.1
141.7
101.9
87.0
117.1
122.5
128.5
129.4
127.6
145.1
142.0
101.5
90.0
113.2
123.1
129.0
128.9
129.1
147.3
143.7
102.1
90.2
114.4
123.5
129.6
130.5
128.7
145.4
144.6
102.2
88.8
115.9
123.4
129.3
130.1
128.5
145.4
144.9
101.5
89.2
114.0
124.1
130.1
130.7
129.5
148.1
144.7
101.8
91.1
112.7
124.6
130.6
131.3
130.0
148.4
146.5
101.4
87.1
Equipment
28 Business and defense equipment
29 Business equipment
30
Construction, mining, and farm ..
31
Manufacturing
32
Power
33
Commercial
34
Transit
35 Defense and space equipment
18.01 139.6
14.34 134.9
2.08 66.6
3.27 109.4
1.27 79.2
5.22 209.2
2.49 98.6
3.67 157.9
144.1
139.1
69.5
112.7
83.7
216.4
98.5
163.5
144.6
139.8
68.2
112.4
83.8
217.1
102.9
163.3
143.9
138.4
68.5
111.5
84.5
214.5
100.9
165.3
145.5
140.4
68.8
111.6
82.5
217.4
106.7
165.3
145.6
140.0
68.3
112.3
81.8
217.0
104.9
167.3
146.1
140.2
67.1
112.0
79.6
218.9
104.5
169.0
147.7
142.0
68.4
112.4
81.8
221.8
106.0
170.1
147.9
141.9
67.4
113.1
82.8
222.8
102.9
171.2
147.4
140.7
67.7
111.9
84.1
219.6
103.4
173.4
147.9
141.3
68.6
113.5
85.6
219.5
103.3
173.9
149.7
143.0
67.2
115.1
84.5
222.8
105.9
175.5
149.9
142.9
66.1
112.8
83.4
223.4
108.2
177.5
1 Total index
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
12
Trucks, consumer
13
Auto parts and allied goods
14 Home goods
15
Appliances, A/C and TV
16
Appliances and TV
17
Carpeting and furniture
18
Miscellaneous home goods
Intermediate products
36 Construction supplies
37 Business supplies
38 General business supplies
39 Commercial energy products
119.5
111.1
128.1
125.2
131.2
130.6
148.9
143.2
'113.0
83.7
224.0
107.7
176.9
5.95
6.99
5.67
1.31
114.0
134.2
137.9
118.0
114.6
136.1
140.1
118.8
115.7
137.1
140.9
120.4
114.7
138.0
141.4
122.9
116.2
135.9
140.2
117.1
115.7
137.9
141.1
124.1
116.9
138.6
141.9
124.5
117.4
139.4
143.4
122.4
118.1
140.7
144.4
124.6
119.2
141.7
146.1
122.7
119.4
140.3
144.4
122.7
121.5
140.5
144.7
122.5
121.0
140.2
144.1
121.4
20.50
4.92
5.94
9.64
4.64
122.3
98.0
164.5
108.6
86.4
123.7
98.9
168.6
108.7
84.8
123.9
99.1
169.1
108.7
85.2
123.4
99.8
168.8
107.4
84.0
124.2
102.6
166.7
109.1
83.5
123.3
102.2
164.2
109.0
84.1
123.3
102.1
163.3
109.6
85.1
122.8
101.8
161.1
110.0
86.6
120.7
100.1
157.8
108.2
82.0
120.8
98.7
157.3
109.6
85.0
120.2
98.3
157.0
108.6
82.5
121.4
99.4
158.2
110.0
84.6
120.5
98.2
156.4
109.7
83.4
120.5
96.4
156.6
110.5
45 Nondurable goods materials
46 Textile, paper, and chemical
materials
47
Textile materials
48
Pulp and paper materials
49
Chemical materials
50 Miscellaneous nondurable materials
10.09
111.2
111.2
110.7
110.7
110.9
111.4
110.3
110.4
111.3
111.8
112.8
112.9
113.2
113.4
7.53
1.52
1.55
4.46
2.57
111.6
101.5
126.5
109.9
109.8
111.5
98.5
126.2
110.8
109.9
110.9
95.0
120.9
112.9
112.5
111.7
97.3
123.3
112.6
112.0
113.5
100.2
125.0
114.0
110.8
113.1
101.8
123.5
113.4
112.3
113.6
101.3
123.1
114.4
112.2
113.9
51 Energy materials
52 Primary energy
53 Converted fuel materials
11.69
7.57
4.12
104.0
107.5
97.6
99.9
101.4
97.1
105.3
107.8
100.6
105.1
109.0
98.1
103.5
107.4
96.2
102.8
106.6
95.8
103.1
106.1
97.8
102.2
Materials
40 Durable goods materials
41 Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
111.1
111.1
110.1
91.2
127.2
110.6
112.1
111.5
90.3
127.5
113.3
109.2
112.1
93.5
126.0
113.5
109.4
111.3
93.0
125.4
112.7
107.2
110.5
94.1
121.3
112.3
110.1
101.5
104.1
96.8
102.4
106.0
96.0
103.9
107.0
98.2
104.9
107.6
100.0
106.2
110.2
99.0
105.3
107.9
100.6
110.5
93.7
125.1
A48
2.13
Domestic Nonfinancial Statistics • January 1986
I N D U S T R I A L P R O D U C T I O N Indexes and Gross Value—Continued
Grouping
SIC
code
1977
proportion
1984
avg.
Oct.
Nov.
Dec.
Jan
Feb.
Mar.
Apr.
May
June
July'
Aug.
Sept.P
Oct
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.96
84.21
35.11
49.10
110.9
110.9
110.9
123.9
122.5
124.8
108.0
107.2
109.4
125.5
123.3
127.0
110.1
108.8
112.1
126.0
123.8
127.5
109.9
108.9
111.6
125.8
123.4
127.4
111.4
110.5
113.0
125.9
123.2
127.8
111.9
109.5
115.8
125.8
123.8
127.2
111.8
110.5
113.9
126.3
123.9
128.0
111.1
109.6
113.6
126.6
124.3
128.2
111.3
109.8
113.7
126.6
124.7
127.9
111.6
110.6
113.4
126.7
125.5
127.6
109.4
108.7
110.7
126.9
125.6
127.9
109.2
108.6
110.2
128.1
126.6
129.3
109.7
108.1
112.2
127.9
126.8
128.7
108.7
106.7
112.0
127.9
127.0
128.5
10
11.12
13
14
.50
1.60
7.07
.66
77.0
127.6
109.1
116.1
75.3
102.0
110.1
114.2
75.5
113.1
109.8
115.3
69.3
116.2
109.8
113.2
70.5
118.5
110.7
118.5
74.5
121.5
108.2
119.8
83.6
131.9
106.8
118.7
81.2
128.5
106.5
118.5
78.3
128.7
106.9
118.7
77.5
134.0
106.9
117.9
60.9
128.0
106.9
116.6
73.1
127.7
105.8
119.0
71.8
126.3
105.5
119.1
123.2
104.5
1 Mining and utilities
2 Mining
3 Utilities
4 Manufacturing
5 Nondurable
6 Durable
1
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
11
12
13
14
15
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
127.1
100.7
103.7
102.8
127.3
129.1
103.1
100.3
100.5
127.6
128.7
102.7
97.1
101.1
127.7
129.0
107.4
94.7
102.5
128.8
128.2
97.2
93.6
102.6
128.3
129.4
103.8
98.5
103.1
126.4
128.5
103.4
99.4
101.3
126.9
130.8
98.4
99.0
100.2
125.1
131.4
95.7
100.0
100.3
124.1
131.8
98.9
103.3
99.2
127.1
132.2
96.0
104.1
100.6
129.0
132.5
97.7
106.2
100.4
128.1
133.1
97.3
104.8
101.9
129.3
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products...
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
147.9
121.7
87.4
143.2
76.7
149.5
123.5
85.4
146.0
70.9
153.5
124.3
86.2
146.6
71.5
151.2
123.4
84.7
146.6
71.4
150.4
125.7
84.1
145.9
69.1
150.3
125.8
84.0
145.7
69.2
152.6
126.5
84.7
144.1
69.4
154.2
125.8
87.3
144.9
69.9
155.4
126.7
87.4
144.3
71.0
156.7
126.4
87.1
145.5
71.5
154.3
126.4
88.3
145.6
72.2
156.2
128.0
88.2
148.0
72.6
155.6
128.2
87.4
149.1
72.9
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone products....
24
25
32
2.30
1.27
2.72
109.1
136.7
112.3
110.2
139.9
113.3
109.5
139.8
113.6
109.4
138.0
111.8
109.2
136.5
112.7
109.1
139.0
110.5
109.5
139.2
111.4
110.9
141.0
114.5
112.2
142.0
116.3
113.5
141.9
116.1
113.0
145.3
115.1
114.8
144.3
116.0
144.5
116.1
Primary metals
Iron and steel
Fabricated metal products . . . .
Nonelectrical machinery
Electrical machinery
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
82.4
73.5
102.8
142.0
172.4
81.3
71.0
104.8
146.6
178.4
80.9
71.1
105.4
145.8
178.9
78.4
68.9
105.9
144.6
180.2
81.7
71.0
106.4
145.0
176.0
80.2
68.5
107.6
144.9
173.2
81.8
73.2
108.6
146.5
173.1
81.4
71.9
109.1
148.9
168.9
76.4
65.4
108.3
149.1
169.3
78.3
67.6
107.4
145.6
169.5
79.0
68.7
107.3
147.5
165.7
81.6
71.6
107.8
149.2
165.7
80.8
70.6
107.5
148.7
164.5
107.3
148.9
165.8
29 Transportation equipment
30 Motor vehicles and p a r t s . . . .
31 Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures...
37
371
9.13
5.25
113.6
105.6
113.4
103.1
116.0
107.5
117.8
109.5
120.4
113.0
120.5
112.5
120.8
111.3
120.7
110.9
120.9
110.5
121.8
110.5
123.7
112.8
126.8
116.8
126.3
115.1
123.8
110.0
372-6.9
38
39
3.87
2.66
1.46
124.4
136.9
98.0
127.3
138.6
98.6
127.5
138.6
98.6
129.0
138.9
97.2
130.5
138.7
99.0
131.4
138.7
96.4
133.7
139.0
96.0
134.1
138.5
98.3
134.9
139.9
98.3
137.1
140.7
96.8
138.5
141.1
95.9
140.4
141.8
97.2
141.5
140.5
96.4
142.5
139.9
4.17
116.8
116.8
118.7
117.5
118.9
121.9
119.5
119.1
119.5
119.4
117.5
116.7
119.5
119.1
24
25
26
27
28
Utilities
34 Electric
155.6
88.0
81.1
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
35
596.0
745.6
753.7
759.2
756.5
761.3
764.2
769.5
773.3
774.4
773.4
769.0
778.0
777.8
780.0
36
37
38
39
472.7
309.2
163.5
123.3
593.7
356.5
237.6
151.8
600.4
355.5
245.4
153.2
605.2
359.0
246.7
154.0
601.8
360.0
242.3
154.6
606.5
358.8
247.6
154.9
608.7
360.9
247.8
155.5
613.3
364.6
248.7
156.3
616.2
364.7
251.4
157.1
616.2
365.1
251.1
158.2
613.9
364.0
249.9
159.5
610.1
361.7
248.4
158.9
618.1
365.7
252.4
159.9
618.8
365.1
253.7
159.0
620.1
366.2
253.9
159.9
• A major revision of the industrial production index and the capacity
utilization rates was released in July 1985. See "A Revision of the Index of
Industrial Production" and accompanying tables that contain revised indexes
( 1 9 7 7 = 1 0 0 ) t h r o u g h D e c e m b e r 1984 in t h e FEDERAL RESERVE BULLETIN, v o l . 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
NOTE. These data also appear in the Board's G.12.3 (414) release. For address,
see inside front cover.
Selected Measures
2.14
HOUSING AND
A49
CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1985
1984
Item
1982
1983
1984
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
? 1-family
3 2-or-more-family
1,000
546
454
1,605
902
703
1,682
922
759
1,599
843
756
1,635
903
732
1,624
927
697
1,741
993
748
1,704
948
756
1,778
933
845
1,712
%1
751
1,694
%7
727
1,784
990
794
1,804
949
855
4 Started
5 1-family
6 2-or-more-family
1,062
663
400
1,703
1,067
635
1,749
1,084
665
1,630
1,112
518
1,849
1,060
789
1,647
1,135
512
1,889
1,168
721
1,933
1,155
778
1,681
1,039
642
1,701
1,031
670
1,663
1,062
601
1,740
1,059
681
1,589
970
619
720
400
320
1,003
524
479
1,051
556
494
1,073
579
495
1,071
572
499
1,066
580
485
1,063
578
485
1,088
583
505
1,089
582
507
1,075
575
500
1,073
578
495
1,086
583
503
1,066
568
498
1,005
631
374
1,390
924
466
1,652
1,025
627
1,635
985
650
1,719
1,107
612
1,794
1,082
712
1,685
1,043
642
1,641
1,074
567
1,627
1,020
607
1,789
1,097
692
1,725
1,048
677
1,703
1,015
688
1,769
1,095
674
13 Mobile homes shipped
240
296
295
282
273
276
283
287
287
270
286
290
278
Merchant builder activity in l-family units
14 Number sold
15 Number for sale, end of period1
413
255
622
304
639
358
604
356
634
356
676
360
699
357
649
356
682
356
710'
354
739
353
699
352
681
353
7 Under construction, end of period 1
8
1-family
9 2-or-more-family
10 Completed
11 1-family
12 2-or-more-family
Price (thousands of dollars)2
Median
16 Units sold
69.3
75.5
80.0
78.3
82.5
82.0
84.2
85.6
80.1
86.3'
81.7
83.0
83.8
17
83.8
89.9
97.5
96.3
98.3
%.2
100.9
104.7
98.1
99^
99.1
98.6
103.6
1,991
2,719
2,868
2,870
3,000
2,880
3,030
3,040
3,040
3,060
3,140
3,500
3,450
67.7
80.4
69.8
82.5
72.3
85.9
72.1
85.9
73.8
87.7
73.5
87.2
74.2
88.6
74.5
89.7
75.0
90.1
76.2
91.5
77.4
93.5
76.9
93.0
75.5
91.1
Units sold
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
20 Average
Value of new construction3 (millions of dollars)
CONSTRUCTION
21 Total put in place
236,935 268,730 312,989 310,062 341,038 334,254 333,723 341,861 339,943 343,837
344,833 343,899 350,434
??
186,091 218,016 257,802 254,547 283,688 276,452 274,575 281,988 276,420 278,939
80,609 121,309 145,058 134,2% 155,260 146,042 146,195 146,539 142,254 147,158
105,482 96,707 112,744 120,251 128,428 130,410 128,380 135,449 134,166 131,781
280,321 279,838 286,422
149,180 147,294 149,893
131,141 132,544 136,529
73
24
75
76
77
28
Nonresidential, total
Buildings
Industrial
Commercial
Other
Public utilities and other
79 Public
30
31 Highway
37 Conservation and development
33 Other
17,346
37,281
10,507
40,348
12,863
35,787
11,660
36,397
13,746
48,102
12,298
38,598
14,440
54,528
12,150
39,133
15,195
58,524
11,889
42,820
15,815
58,922
12,054
43,619
14,585
59,382
11,245
43,168
17,283
61,219
12,663
44,284
16,443
60,064
12,929
44,730
15,170
58,290
12,786
45,535
15,428
58,104
12,657
44,952
15,203
59,908
13,000
44,433
16,072
62,974
13,313
44,170
50,843
2,205
13,293
5,029
30,316
50,715
2,544
14,143
4,822
29,206
55,186
2,839
16,295
4,656
31,396
55,514
2,952
16,888
4,654
31,020
57,350
2,%9
17,759
4,645
31,977
57,802
3,036
18,416
4,674
31,676
59,148
3,078
19,176
4,727
32,167
59,873
3,166
19,920
4,393
32,394
63,523
3,349
22,314
5,051
32,809
64,897
3,426
21,093
5,410
34,%8
64,513
3,182
19,726
5,201
36,404
64,060
3,022
20,319
4,763
35,956
64,012
2,866
19,910
5,301
35,935
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 because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (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 16,000 jurisdictions beginning
with 1978.
A50
2.15
Domestic Nonfinancial Statistics • January 1986
CONSUMER A N D PRODUCER
PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
Change from 3 months earlier
(at annual rate)
1984
1984
Oct.
Change from 1 month earlier
1985
Index
level
Oct.
1985
(1967
= 100)1
1985
1985
Oct.
Dec.
Mar.
June'
Sept.'
June
July
Aug.
Sept.
Oct.
CONSUMER PRICES2
1 AU items
4.2
3.2
3.0
4.1
3.3
2.3
.2
.2
.2
.2
.3
325.5
2 Food
3 Energy items
4 All items less food and energy
.1 Commodities
6 Services
3.9
.4
4.9
3.7
5.7
1.8
.1
4.2
2.0
5.5
3.7
-.7
3.5
.9
5.0
2.6
-.8
5.5
6.6
5.0
-.9
9.6
3.4
-1.4
6.4
1.8
-4.3
3.5
.8
5.0
.1
.2
.1
.0
-.6
.3
.1
.5
.3
.2
.2
-.8
.5
.4
.6
309.8
427.1
318.9
262.0
382.5
1.4
2.8
-5.7
2.2
2.1
1.1
-.9
-3.7
3.0
2.6
1.1
3.3
5.6
-.2
-1.1
.5
-3.0
-21.3
6.5
6.2
1.7
-8.1
27.3
1.4
1.6
-2.4
-1.6
-12.8
-.2
-1.2
-2.8'
1.8
2.6
-.5
.0
1.2
1.5
-2.5
-1.0
1.1
1.2
-1.2
-1.2
-.4
.2
-3.5
1.0
-.6
-8.3
-5.6
-4.2
10.6
-7.6
-10.7
-24.9
-13.1
-13.3
-20.4
4.4
3.1
-19.9
-4.7
-4.2
-.2'
-.8'
.2'
.3
-.3
.3
-.2
.5
-.2
.5
-.2
.2
.3
PRODUCER PRICES
7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
12 Intermediate materials3
13 Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
-.2
.<Y
.3'
.1'
1.2'
-1.7'
.4
.1'
-.7
-1.6
.0
.2
-.6
-.9
-.1
-.5
-.6
.9
1.4
-.2
.8
1.0
294.8
268.7
716.1
254.9
303.7
-.3
-.1
-.1
.1
-.1
.0
.0
324.3
304.6
-3.8
-.9
-1.2
-.7
.4
-.6
6.3
224.5
743.4
247.2
.3
-.1
-UK
-.7'
.8'
-.3
-.3
.5
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
GROSS NATIONAL PRODUCT A N D
A51
INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1985
1984
Account
1982
1983
1984
Q3
Q4
Ql
Q2
Q3r
GROSS NATIONAL PRODUCT
1
3,069.3
3,304.8
3,662.8
3,694.6
3,758.7
3,810.6
3,853.1
3,915.9
By source
2 Personal consumption expenditures
3 Durable goods
4 Nondurable goods
5 Services
1,984.9
245.1
757.5
982.2
2,155.9
279.8
801.7
1,074.4
2,341.8
318.8
856.9
1,166.1
2,361.4
317.2
861.4
1,182.8
2,396.5
326.3
866.5
1,203.8
2,446.5
334.8
877.3
1,234.4
2,493.0
339.2
891.9
1,261.9
2,539.0
356.8
896.8
1,285.3
6 Gross private domestic investment
7
8
9
Producers' durable equipment
10
Residential structures
11
Nonfarm
12
414.9
441.0
349.6
142.1
207.5
91.4
86.6
471.6
485.1
352.9
129.7
223.2
132.2
127.6
637.8
579.6
425.7
150.4
275.3
153.9
148.8
662.8
591.0
435.7
151.4
284.2
155.3
150.1
637.8
601.1
447.7
157.9
289.7
153.5
148.3
646.8
606.1
450.9
162.9
288.0
155.2
150.0
643.2
625.3
467.3
168.3
299.0
158.0
152.4
631.5
631.8
468.6
168.8
299.8
163.2
157.4
n
14
-26.1
-24.0
-13.5
-3.1
58.2
49.6
71.8
63.7
36.6
27.2
40.7
34.1
17.9
11.4
-.3
-.9
is Net exports of goods and services
16
17 Imports
19.0
348.4
329.4
-8.3
336.2
344.4
-64.2
364.3
428.5
-90.6
368.6
459.3
-56.0
367.2
423.2
-74.5
360.7
435.2
-94.0
347.7
441.6
-104.0
346.8
450.8
18 Government purchases of goods and services
19
20 State and local
650.5
258.9
391.5
685.5
269.7
415.8
747.4
295.4
452.0
761.0
302.0
458.9
780.5
315.7
464.8
791.9
319.9
472.0
810.9
324.2
486.7
849.5
350.6
498.8
3,095.4
1,276.7
499.9
776.9
1,510.8
281.7
3,318.3
1,355.7
555.3
800.4
1,639.3
309.8
3,604.6
1,542.9
655.6
887.3
1,763.3
356.5
3,622.8
1,549.1
654.7
894.4
1,783.3
362.1
3,722.1
1,579.8
687.7
892.1
1,813.7
365.2
3,770.0
1,583.8
677.1
906.7
1,857.2
369.6
3,835.2
1,579.6
669.6
910.0
1,888.8
384.8
3,916.2
1,595.0
670.7
921.6
1,927.6
396.0
-26.1
-18.0
-8.1
-13.5
-2.1
-11.3
58.2
30.4
27.8
71.8
41.7
30.1
36.6
26.7
9.9
40.7
29.0
11.7
17.9
3.7
14.2
-.3
-10.7
10.3
1,480.0
1,534.7
1,639.3
1,645.2
1,662.4
1,663.5
1,671.3
1,688.9
31
2,446.8
2,646.7
2,959.9
2,984.9
3,036.3
3,076.5
3,106.5
3,147.2
37 Compensation of employees
33 Wages and salaries
Government and government enterprises
34
35
Other
36 Supplement to wages and salaries
37
Employer contributions for social insurance
Other labor income
38
1,864.2
1,568.7
306.6
1,262.2
295.5
140.0
155.5
1,984.9
1,658.8
328.2
1,331.1
326.2
153.1
173.1
2,173.2
1,804.1
349.8
1,454.2
369.0
173.5
195.5
2,191.9
1,819.1
352.0
1,467.1
372.8
174.7
198.1
2,228.1
1,848.2
357.2
1,490.9
380.0
177.5
202.5
2,272.7
1,882.8
365.5
1,517.3
389.8
183.6
206.3
2,305.9
1,909.5
370.7
1,538.9
396.3
186.1
210.2
2,335.6
1,933.6
376.3
1,557.2
402.1
188.3
213.7
111.1
89.2
21.8
121.7
107.9
13.8
154.4
126.2
28.2
153.7
126.4
27.3
159.1
129.7
29.4
159.8
134.0
25.7
160.7
137.3
23.4
153.4
141.9
11.6
51.5
58.3
62.5
63.0
64.1
64.8
66.7
68.3
298.5
221.0
2.5
75.0
321.4
232.8
7.2
81.4
274.7
268.5
Change in business inventories
Nonfarm
By major type of product
?1
??
74
75
26
Nondurable
Structures
77 Change in business inventories
78 Durable goods
29 Nondurable goods
30 MEMO: Total GNP in 1972 dollars
NATIONAL INCOME
39 Proprietors' income1
40 Business and professional1
41 Farm1
42 Rental income of persons 2
43 Corporate profits
44 Profits before tax 3
45 Inventory valuation adjustment
46 Capital consumption adjustment
159.1
165.5
-9.5
3.1
225.2
203.2
-11.2
33.2
285.7
235.7
-5.7
55.7
282.8
224.8
-.2
58.3
291.6
228.7
-1.6
64.5
292.3
222.3
.9
69.1
47 Net interest
260.9
256.6
284.1
293.5
293.4
287.0
1
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A52
2.17
Domestic Nonfinancial Statistics • January 1986
PERSONAL INCOME AND
SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1985
1982
1984
1983
Q3
Q4
Q1
Q2
PERSONAL INCOME AND SAVING
1 Total personal income
2.584.6
2,744.2
3,012.1
3,047.3
3,096.2
3,143.8
3,174.7
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6 Service industries
7 Government and government enterprises
1.568.7
509.3
382.9
378.6
374.3
306.6
1,659.2
519.3
395.2
398.6
413.1
328.2
1.804.0
569.3
433.9
432.0
452.9
349.8
1,819.5
573.3
436.4
436.4
457.3
352.4
1,847.6
580.9
442.4
443.1
466.9
356.7
1.882.7
590.9
447.9
449.0
477.4
365.4
1.910.6
594.2
447.9
455.7
489.0
371.7
155.5
173.1
121.7
107.9
13.8
58.3
70.3
376.3
405.0
221.6
195.5
154.4
126.2
198.1
153.7
126.4
27.3
63.0
78.5
449.3
418.6
238.2
202.5
159.1
129.7
29.4
64.1
206.3
159.8
134.0
25.7
64.8
81.4
456.0
439.2
249.6
210.2
160.7
137.3
23.4
66.7
82.5
453.0
439.5
249.9
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional1
Farm1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits..
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
111.1
89.2
21.8
51.5
66.5
366.6
376.1
204.5
28.2
62.5
77.7
433.7
416.7
237.3
80.2
456.1
421.8
243.5
111.4
119.6
132.5
133.4
135.2
146.4
148.4
2,584.6
2,744.2
3.012.1
3.047.3
3,096.2
3.143.8
3.174.7
404.1
404.2
435.3
440.9
451.7
489.0
448.2
20 EQUALS: Disposable personal income
2,180.5
2,340.1
2,576.8
2.606.4
2,644.5
2,654.8
2,726.5
21
LESS: Personal outlays
2,044.5
2,222.0
2,420.7
2,442.3
2,481.5
2,536.2
2,587.1
22 EQUALS: Personal saving
136.0
118.1
156.1
164.1
163.0
118.6
139.4
6,369.7
4,145.9
4,555.0
6.2
6,543.4
4,302.8
4,670.0
5.0
6,926.1
4,488.7
4,939.0
6.1
6,943.2
4,498.4
4,965.0
6.3
6,998.3
4,527.1
4,996.0
6.2
6,989.0
4,575.7
4,965.0
4.5
7,007.9
4,621.2
5,054.0
5.1
408.8
437.2
551.8
556.4
556.0
550.7
532.6
524.0
136.0
29.2
-9.5
571.7
76.5
-11.2
674.8
156.1
115.4
689.4
164.1
118.4
-.2
662.1
118.6
122.5
.9
696.3
139.4
12S.3
-5.7
698.2
163.0
120.8
-1.6
221.8
137.1
.0
231.2
145.9
.0
246.2
157.0
.0
248.1
158.8
252.8
161.5
.0
257.4
163.7
.0
261.6
166.1
.0
-115.3
-148.2
32.9
-134.5
-178.6
44.1
-122.9
-175.8
52.9
-133.0
-180.6
47.6
-142.2
-197.8
55.6
-111.4
-165.1
53.7
-163.8
-214.1
50.3
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1972 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving.
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits1
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
118.1
.0
.0
2.5
.0
.0
.0
.0
.0
.0
39 Gross investment
408.3
437.7
544.4
543.4
546.1
542.6
518.9
40 Gross private domestic
41 Net foreign
414.9
-6.6
471.6
-33.9
637.8
-93.4
662.8
-119.4
637.8
-91.6
646.8
-104.2
643.2
-124.3
-7.4
-13.0
-9.9
38 Capital grants received by the United States, net
42 Statistical discrepancy.
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE.
-13.7
Survey of Current Business (Department of Commerce).
Summary Statistics
3.10
U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1984
1985
Item credits or debits
Q2
1 Balance on current account
2 Not seasonally adjusted..
3
4
5
6
7
8
9
10
Merchandise trade balance2 . . .
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net 3
Other service transactions, net.
Remittances, pensions, and other transfers
U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
QP
2
Q1
Q4
Q3
-8,051
-40,790
-101,532
-24,493
-24,654
-32,500
-35,724
-25,477
-22,759
-30,325
-29,416
-31,811
-32,066
-36,444
211,198
-247,642
-318
29,493
7,353
-62,012
200,745
-262,757
-163
25,401
4,837
-108,281
220,316
-328,597
-1,765
19,109
819
-25,649
54,677
-80,326
-593
3,618
363
-32,507
55,530
-88,037
-250
3,256
-123
-24,557
56,355
-80,912
-575
4,003
-253
-29,532
55,707
-85,239
-212
2,537
54
-33,001
53,245
-86,246
-566
5,582
-474
-2,633
-5,501
-2,566
-6,287
-2,891
-8,522
-710
-1,522
-669
-2,207
-782
-3,313
-934
-2,238
-841
-2,511
-849
-6,131
-5,006
-5,516
-1,353
-1,369
-734
-850
-4,965
-1,196
-3,130
-565
-799
-1,109
-233
-356
-1,371
-2,552
-1,041
-66
-4,434
3,304
-979
-995
-1,156
-288
-321
44
-271
-331
-197
-194
-143
-772
-264
281
-250
-180
72
-248
-111,070
6,626
-8,102
4,425
-48,842
-29,928
-6,513
-7,007
-5,394
-11,800
-8,504
6,266
-5,059
-4,503
-17,070
-20,186
1,908
-756
1,964
20,532
17,725
2,099
-1,313
2,021
-13,003
-4,933
970
-3,663
-5,377
1,201
718
135
-2,494
1,876
-1,657
4,350
n.a.
-1,862
-4,145
22 Change in foreign official assets in the United States
(increase, +)
23 U.S. Treasury securities
24 Other U.S. government obligations
4
25 Other U.S. government liabilities
26 Other U.S. liabilities reported by U.S. banks
5
27 Other foreign official assets
3,672
5,779
-694
684
-1,747
-350
5,795
6,972
-476
552
545
-1,798
3,424
4,690
167
453
663
-2,549
-224
-274
146
555
328
-979
-686
-575
85
-139
430
-487
7,119
5,814
-67
-197
2,052
-483
-11,204
-7,219
-307
-462
-3,099
-117
8,154
8,521
136
503
-185
-821
28 Change in foreign private assets in the United States
(increase, +) 3
U.S. bank-reported liabilities
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net3
90,775
65,922
-2,383
7,052
6,392
13,792
78,527
49,341
-118
8,721
8,636
11,947
93,895
31,674
4,284
22,440
12,983
22,514
41,816
20,970
4,566
6,485
506
9,289
3,825
-5,125
-2,939
5,058
1,603
5,228
26,191
4,481
-1,863
9,501
9,380
4,692
24,915
13,345
-2,655
2,633
9,510
2,082
17,636
326
n.a.
5,291
7,117
4,902
12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
17 Change in U.S. private assets abroad (increase, - ) 3 .
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net 3
29
30
31
32
33
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
0
-108,121
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-606
32,821
11,513
24,660
10,997
-3,170
7,013
4,200
16,979
-305
8,883
-578
2,495
14,167
2,813
17,284
9,461
1,889
32,821
11,513
24,660
-4,965
-1,196
-3,131
-566
-799
-1,110
-233
-356
2,988
5,243
2,971
-779
-547
7,316
-10,742
7,651
7,291
-8,283
-4,143
-2,097
-453
812
-2,021
-1,862
585
194
190
44
45
61
10
15
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 22
above)
41 Transfers under military grant programs (excluded from
lines 4, 6, and 10 above)
38
39
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing; military
exports are excluded from merchandise data and are included in line 6.
3. Includes reinvested earnings.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
A54
3.11
International Statistics • January 1986
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1985
Item
1982
1984
1983
Apr.
Mar.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
212,193
200,486
19,142
18,446
May
17,779
June
17,414
July
17,438
Aug.
17,411
Sept.
17,423
17,732
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
243,952
258,048
25,933
28,129
28,295
28,685
29,425
26,630
26,083
31,764
3 Trade balance
-31,759
-57,562
-6,791
-9,683
-10,516
-11,271
-11,987
-9,219
-8,660
-14,032
NOTE. The data through 1981 in this table are reported by the Bureau of Census
data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of
export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in
the Census basis trade data; this adjustment has been made for all data shown in
the table. Beginning with 1982 data, the value of imports are on a customs
valuation basis.
The Census basis data differ from merchandise trade data shown in table 3.10,
U.S. International Transactions Summary, for reasons of coverage and timing. On
3.12
the export side, the largest adjustments are: (1) the addition of exports to Canada
not covered in Census statistics, and (2) the exclusion of military sales (which are
combined with other military transactions and reported separately in the "service
account" in table 3.10, line 6). On the import side, additions are made for gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately as indicated above.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1985
Type
1982
1983
1984
Apr.
May
June
July
Aug.
Sept.
Oct.
1 Total
33,958
33,747
34,934
35,493
35,782
36,088
37,071
37,154
38,295
41,657
2 Gold stock, including Exchange Stabilization Fund1
11,148
11,121
11,096
11,091
11,091
11,091
11,090
11,090
11,090
11,090
5,250
5,025
5,641
5,971
6,163
6,1%
6,510
6,692
6,847
6,926
7,348
11,312
11,541
11,382
11,370
11,394
11,513
11,478
11,686
11,843
10,212
6,289
6,656
7,049
7,158
7,408
7,958
7,894
8,672
11,798
3 Special drawing rights2 3
4 Reserve position in International Monetary Fund2
5
Foreign currencies4
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
3.13
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1985
Assets
1982
1984
1983
Apr.
1 Deposits
Assets held in custody
2 U.S. Treasury securities1
3 Earmarked gold2
June
July
Aug.
Sept.
Oct.
328
190
253
348
204
310
274
223
535
267
112,544
14,716
117,670
14,414
118,267
14,265
115,184
14,264
116,989
14,265
121,755
14,262
124,400
14,251
123,321
14,251
120,978
14,245
118,000
14,242
1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
2. Earmarked gold is valued at $42.22 per fine troy ounce.
May
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.
Summary Statistics
3.14
FOREIGN BRANCHES OF U.S. BANKS
A55
Balance Sheet Data1
Millions of dollars, end of period
1985
Asset account
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.
Sept.?
All foreign countries
477,090
453,656'
463,379'
461,636'
459,416'
458,24y
464,00C
457,553
456,405
91,805
61,666
115,542
82,026
358,493
91,168
133,752
24,131
109,442
342,689
96,004
117,668
24,517
107,785
113,449'
78,165'
13,664
21,620
320,106'
95,128'
100,397'
23,343'
101,238'
119,943'
86,825'
13,092
20,026
323,008'
93,397'
105,514'
22,648'
101,449'
121,823'
86,907'
14,199
20,717
319,749'
91,302'
104,35C
23,195'
100,902'
121,14C
85,609'
14,101
21,430
317,589'
90,82c
102,312'
23,128'
101,323'
121,284'
85,272'
14,461
21,551
316,081'
89,833'
101,50C
23,051'
101,697'
119,393'
84,045'
14,739
20,609
322,749'
91,172'
104,813'
23,124'
103,64C
122,932
86,779
14,058
22,095
313,073
89,640
99,032
22,863
101,538
119,403
85,447
13,092
20,864
314,754
87,658
102,172
23,277
101,647
19,414
18,859
20,101'
20,428'
20,064'
20,687'
20,878'
21,858'
21,548
22,248
361,982
371,508
350,636'
355,81c
352,428'
350,609'
350,13c
346,109'
341,871
335,021
90,085
61,010
113,436
80,909
259,871
73,537
106,447
18,413
61,474
247,406
78,431
93,332
17,890
60,977
111,482'
77,285'
13,500
20,697
228,544'
78,69C
76,940'
17,626'
55,288'
117,572'
85,743'
12,786
19,043
228,169'
77,636'
79,014'
17,155'
54,364'
119,228'
85,775'
13,840
19,613
223,383'
75,057'
76,926'
17.31C
54,084'
118,687'
84.64C
13,705
20,342
221,989'
75,067'
75,70c
17,331'
53,885'
118,726'
84.28C
14,019
20,421
221,478'
74,593'
75,337'
17,22C
54,328'
116,422'
82,895'
14,115
19,412
219,824'
74,471'
75,339'
17,033'
52,981'
120,184
85,850
13,451
20,883
212,023
72,437
70,973
17,037
51,576
116,512
84,236
12,536
19,740
208,696
69,226
70,922
17,274
51,274
12,026
10,666
10,61c
10,069'
9,817'
9,933'
9,932'
9,863'
9,664
9,813
469,712
1 Total, all currencies
? Claims on United States
Parent bank
4 Other banks in United States 2
5 Nonbanks 2
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
11 Other assets
12 Total payable in U.S. dollars
n Claims on United States
14 Parent bank
IS Other banks in United States 2
16 Nonbanks 2
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
70 Public borrowers
21 Nonbank foreigners
22 Other assets
United Kingdom
144,385
150,705
148,711
148,285
149,599
151,455
151,117
150,276
27,354
23,017
34,433
29,111
127,734
37,000
50,767
6,240
33,727
119,280
36,565
43,352
5,898
33,465
27,731
21,918
1,429
4,384
111,772
37,897
37,443
5,334
31,098
29,675
23,250
1,511
4,914
115,886
35,857
41,010
4,949
34,070
29,930
23,236
1,649
5,045
113,689
34,036
41,242
4,967
33,444
30,314
23,554
1,613
5,147
112,829
33,948
39,905
4,932
34,044
31,322
23,930
1,691
5,701
113,192
34,188
39,850
4,973
34,181
31,140
24,368
1,525
5,247
114,827
33,539
40,546
5,056
35,686
35,300
28,200
1,474
5,626
110,475
32,616
37,796
5,054
35,009
32,630
25,813
1,329
5,488
112,519
32,403
40,509
5,112
34,495
5,979
5,019
4,882
5,144
5,092
5,142
5,085
5,488
5,342
5,127
123,740
74 Claims on United States
?5 Parent bank
76 Other banks in United States 2
77 Nonbanks 2
78 Claims on foreigners
79 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
33 Other assets
34 Total payable in U.S. dollars
3S Claims on United States
36 Parent bank
37 Other banks in United States 2
18
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
Public borrowers
4?
43 Nonbank foreigners
158,732
126,012
112,809
114,122
111,498
111,305
112,686
110,451
110,972
108,731
26,761
22,756
28,833
22,910
1,462
4,461
82,441
31,331
28,184
3,534
19,392
28,998
22,906
1,572
4,520
79,509
29,056
27,803
3,503
19,147
29,389
23,261
1,488
4,640
79,029
29,230
27,184
3,500
19,115
30,368
23,625
1,604
5,139
79,464
29,364
27,317
3,587
19,196
30,087
23,995
1,415
4,677
77,446
28,623
26,349
3,538
18,936
34,251
27,897
1,355
4,999
73,769
26,993
24,382
3,599
18,795
31,520
25,342
1,247
4,931
74,286
26,581
25,458
3,633
18,614
2,848
2,991
2,887
2,854
2,918
2,952
2,925
161,067
23 Total, all currencies
88,917
31,838
32,188
4,194
20,697
26,924
21,551
1,363
4,010
82,889
33,551
26,805
4,030
18,503
4,751
44 Other assets
A m\e
92,228
31,648
36,717
4,329
19,534
1
33,756
28,756
/u\n
3,339
2,9%
Bahamas and Caymans
145,156
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States 2
49 Nonbanks 2
50 Claims on foreigners
51 Other branches of parent bank
5? Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
1
152,083
146,811
147,041
145,096
144,033
143,549
140,785
138,510
135,214
59,403
34,653
_.
75,309
48,720
81,450
18,720
42,699
6,413
13,618
72,868
20,626
36,842
6,093
12,592
77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602
78,886
53,937
10,761
14,188
64,339
15,685
31,481
6,349
10,824
79,150
52,996
11,647
14,507
62,164
14,716
29,887
6,683
10,878
78,849
51,886
11,723
15,240
61,604
15,271
28,942
6,604
10,787
78,049
51,171
11,999
14,879
61,959
15,645
28,501
6,642
11,171
75,275
48,669
12,381
14,225
62,209
15,669
29,240
6,505
10,795
74,448
47,815
11,725
14,908
60,964
16,479
27,601
6,432
10,452
72,611
47,299
10,977
14,335
59,309
15,428
26,996
6,486
10,399
4,303
3,906
3,917
3,816
3,782
3,580
3,541
3,301
3,098
3,294
145,641
141,562
141,534
139,926
138,724
138,581
135,472
133,521
129,830
139,605
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
2. Data for assets vis-a-vis other banks in the United States and vis-a-vis
nonbanks are combined for dates before June 1984.
A56
3.14
International Statistics • January 1986
Continued
1985
Mar.
Apr.
May
June
July
Aug.
Sept.?
All foreign countries
57 Total, all currencies
469,712
477,090
453,656'
463,379'
461,636'
459,416'
458,243'
464,00C
457,553
456,405
58 Negotiable CDs 3
59 To United States
60 Parent bank
61 Other banks in United States
62 Nonbanks
n.a.
179,015
75,621
33,405
69,989
n.a.
188,070
81,261
29,453
77,356
37,725
147,583'
78,739'
18,409
50,435
40,889
146,041'
76,355'
17,777
51,909
38,940
145,511'
76,385'
18,834
50,292
37,188
145,61C
78,419'
18,782
48,409
37,952
147,424'
79,846'
19,430
48,148
37,683
146,389'
80,656'
17,032
48,701
37,885
144,408
77,484
16,087
50,837
39,676
143,452
78,415
17,206
47,831
63 To foreigners
64 Other branches of parent bank
65
Banks
66 Official institutions
67 Nonbank foreigners
68 Other liabilities
270,853
90,191
96,860
19,614
64,188
19,844
269,685
90,615
92,889
18,896
68,845
19,335
247,907'
93,909'
78,203
20,281
55,514'
20,441'
254,846'
94,857'
82,670
20,831
56,488'
21,603'
255,632'
92,502'
83,614
21,854
57,662'
21,553'
254,535'
91,967'
81,537
21,827
59,204'
22,083'
251,572'
91,11C
80,496
21,703
58,263'
21,295'
256,769'
92,984'
82,777
20,937
60,071'
23,159'
252,717
90,483
80,940
21,234
60,060
22,543
250,144
87,752
82,528
21,015
58,849
23,133
69 Total payable in U.S. dollars
379,270
388,291
367,145'
370,281'
366,525'
364,59c
365,812'
361,403'
357,182
350,122
70 Negotiable CDs 3
71 To United States
72
Parent bank
73 Other banks in United States
74 Nonbanks
n.a.
175,528
73,295
33,040
69,193
n.a.
184,305
79,035
28,936
76,334
35,227
143,571'
75,254'
17,935
49,382
38,199
141,702'
73,932'
17,228
50,542
35,958
140,855'
73,786'
18,270
48,799
34,216
140,958'
75,795'
18,209
46,954
34,637
142,499'
77,04C
18,869
46,590
33,716
141,145'
77,543'
16,446
47,156'
34,030
138,786
74,176
15,466
49,144
35,695
136,813
74,562
16,281
45,970
75 To foreigners
76 Other branches of parent bank
77
Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities
192,510
72,921
57,463
15,055
47,071
11,232
194,139
73,522
57,022
13,855
51,260
9,847
178,26c
77,770
45,123
15,773
39,594
10,087
180,137'
79,182'
44,863
16,049
40,033'
10,243'
179,488'
76,65C
45,167
17,178
40,493'
10,224'
179,567'
76,107'
44,413
17,407
41,64C
9,849'
179,353'
75.93C
44,694
17,278
41,451'
9,323'
177,144'
76,386'
43,691
15,935
41,132'
9,398'
174,645
73,770
42,859
16,238
41,778
9,721
167,617
69,510
41,312
16,221
40,574
9,997
United Kingdom
161,067
158,732
144,385
150,705
148,711
148,285
149,599
151,455
151,117
150,276
82 Negotiable CDs 3
83 To United States
84 Parent bank
85 Other banks in United States
86 Nonbanks
n.a.
53,954
13,091
12,205
28,658
n.a.
55,799
14,021
11,328
30,450
34,413
25,250
14,651
3,125
7,474
37,350
23,735
14,507
2,673
6,555
35,326
23,986
14,033
2,665
7,288
33,661
24,811
14,278
2,735
7,798
34,437
25,480
14,910
3,571
6,999
34,094
24,167
13,434
2,853
7,880
34,156
25,158
14,336
2,839
7,983
35,819
25,747
14,592
3,726
7,429
87 To foreigners
88 Other branches of parent bank
89 Banks
90 Official institutions
91 Nonbank foreigners
92 Other liabilities
99,567
18,361
44,020
11,504
25,682
7,546
95,847
19,038
41,624
10,151
25,034
7,086
77,424
21,631
30,436
10,154
15,203
7,298
80,966
23,699
32,003
10,305
14,959
8,654
80,913
21,887
32,259
11,590
15,177
8,486
81,033
21,784
31,573
11,260
16,416
8,780
81,004
22,565
30,852
11,240
16,347
8,678
83,480
23,647
32,389
10,180
17,264
9,714
82,317
22,348
31,518
10,823
17,628
9,486
79,471
20,233
32,041
10,824
16,373
9,239
81 Total, all currencies
93 Total payable in U.S. dollars
130,261
131,167
117,497
117,984
116,128
115,742
117,333
114,123
115,064
112,816
94 Negotiable CDs 3
95 To United States
% Parent bank
97 Other banks in United States
98
Nonbanks
n.a.
53,029
12,814
12,026
28,189
n.a.
54,691
13,839
11,044
29,808
33,070
24,105
14,339
2,980
6,786
35,721
22,232
14,127
2,503
5,602
33,763
22,281
13,569
2,500
6,212
32,140
23,206
13,869
2,550
6,787
32,721
23,729
14,472
3,387
5,870
31,743
22,254
12,777
2,687
6,790
31,911
23,119
13,773
2,628
6,718
33,380
23,529
13,995
3,509
6,025
99 To foreigners
100 Other branches of parent bank
101 Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
73,477
14,300
28,810
9,668
20,699
3,755
73,279
15,403
29,320
8,279
20,277
3,197
56,923
18,294
18,356
8,871
11,402
3,399
56,574
20,127
17,191
8,734
10,522
3,457
56,473
18,451
17,497
9,989
10,536
3,611
56,885
18,375
17,417
9,687
11,406
3,511
57,504
19,053
17,175
9,648
11,628
3,379
56,783
19,640
17,249
8,430
11,464
3,343
56,208
18,241
16,975
9,005
11,987
3,826
52,045
15,999
15,787
9,055
11,204
3,862
Bahamas and Caymans
105 Total, all currencies
145,156
152,083
146,811
147,041
145,096
144,033
143,549
140,785
138,510
135,214
106 Negotiable CDs 3
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
n.a.
104,425
47,081
18,466
38,878
n.a.
111,299
50,980
16,057
44,262
615
102,955
47,162
13,938
41,855
779
103,046
45,391
13,959
43,696
634
100,489
43,749
15,112
41,628
436
99,379
45,557
14,545
39,277
344
99,856
45,740
14,748
39,368
320
98,682
47,147
12,979
38,566
356
95,793
43,384
12,153
40,256
686
94,071
44,431
12,081
37,559
38,274
15,796
10,166
1,967
10,345
2,457
38,445
14,936
11,876
1,919
11,274
2,339
40,320
16,782
12,405
2,054
9,079
2,921
40,367
16,744
12,562
1,884
9,177
2,849
41,102
17,179
13,469
1,598
8,856
2,871
41,437
17,759
12,879
2,194
8,605
2,781
40,621
16,615
13,600
1,866
8,540
2,728
39,081
16,645
12,329
1,941
8,166
2,702
39,679
17,638
11,452
1,687
8,902
2,682
37,667
16,023
11,423
1,760
8,461
2,790
141,908
148,278
143,582
143,215
140,945
139,909
139,648
136,820
134,623
130,921
111 To foreigners
112 Other branches of parent bank
113 Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
3. Before June 1984, liabilities on negotiable CDs were included in liabilities to
the United States or liabilities to foreigners, according to the address of the initial
purchaser.
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1985
Item
1984
1983
Mar/
1 Total1
2
3
4
5
6
1
8
9
10
11
12
May'
June'
July'
Aug.
Sept.?
177,950
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
180,525'
169,891
170,609
173,725
177,780
180,766
181,105
180,246
25,534
54,341
26,089
59,976
23,050
54,685
22,771
57,226
23,153
56,691
22,915
58,589
22,101
60,727
23,154
60,921
25,826
56,493
68,514
7,250
22,311
69,029
5,800
19,631'
67,647
5,300
19,209
67,022
4,900
18,690
70,552
4,500
18,829
73,265
4,500
18,511
75,053
4,500
18,385
75,157
3,550
18,323
76,221
3,550
18,156
67,645
2,438
6,248
92,572
958
8,089
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
69,789
1,528
8,554
93,920
1,264
5,470
63,746
1,715
7,518
90,749
1,200
4,963
65,660
1,403
7,528
89,965
1,403
4,650
67,948
1,558
8,072
90,181
1,262
4,704
70,346
1,571
8,467
91,406
1,299
4,691
73,378
2,010
8,846
90,834
1,259
4,439
75,156
1,664
9,524
89,485
1,110
4,166
74,431
1,561
10,529
88,287
1,447
3,991
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.
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.
3.16
Apr/
LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1985
1984
Item
1981
1982
1983
Sept/
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers 1
1. 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.
3,523
4,980
3,398
1,582
971
4,844
7,707
4,251
3,456
676
5,219
7,231
2,731
4,501
1,059
6,216
9,279
3,610
5,669
281
Dec.'
8,578
11,874
4,998
6,876
569
Mar.
June
8,012
12,639
6,148
6,491
440
10,150
14,012
7,437
6,575
243
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • January 1986
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States
Millions of dollars, end of period
1985
Holder and type of liability
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.
Sept.?
1 All foreigners
307,056
369,607
407,133'
413,430'
410,976'
411,297'
412,861'
416,420'
417,536
420,560
2 Banks' own liabilities
3 Demand deposits
4 Time deposits 1
5 Other2
6 Own foreign offices3
227,089
15,889
68,797
23,184
119,219
279,087
17,470
90,632
25,874
145,111
306,499'
19,571
110,286'
26,002'
150,64C
317,302'
18,114'
119,361'
25,057'
154,77C
313,018'
18,295
117,872'
24,392'
152,459'
315,608'
17,705
120,792'
25,614
151,496'
317,062'
19,423'
116,331'
25,782'
155,526'
318,944'
17,662'
116,069'
25,875'
159,338'
318,718
17,735
119,070
25,686
156,227
323,191
20,953
115,664
29,617
156,957
79,967
55,628
90,520
68,669
100,634'
76,368'
96,128
71,552
97,958
73,078
95,690
71,597
95,799'
73,061
97,477'
75,396
98,818
75,797
97,369
73,398
20,636
3,702
17,467
4,385
18,747'
5,518'
18,099
6,477
18,337
6,543
17,690
6,403
16,207
6,532'
16,165'
5,916'
16,547
6,475
17,110
6,861
4,922
5,957
4,083
5,905
6, UUP
6,694
5,709
5,019'
7,353
7,467
2,333
191
1,488
654
3,137'
167
2,276
694'
4,389
264
3,747
377
3,928
164
3,023
740
3,243'
134
2,556'
553
5,569
252
4,366
951
3,275
243
2,261
771
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates 5
9 Other negotiable and readily transferable
instruments 6
10 Other
11 Nonmonetary international and regional
organizations7
12 Banks' own liabilities
13 Demand deposits
14 Time deposits1
15 Other 2
1,909
106
1,664
139
4,632
297
3,584
750
1,644
254
1,102
288
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable and readily transferable
instruments 6
19 Other
3,013
1,621
1,325
463
2,440
916
3,572
2,082
3,029
1,434
2,305
775
1,782
642
1,777
767
1,784
742
4,192
2,759
1,392
0
862
0
1,524
0
1,490
0
1,593
2
1,531
0
1,140
0
1,010
0
1,042
1
1,433
0
8
20 Official institutions
71,647
79,876
86,065
77,734'
79,997'
79,844'
81,504'
82,828'
84,075
82,320
21 Banks' own liabilities
22 Demand deposits
23 Time deposits1
24 Other2
16,640
1,899
5,528
9,212
19,427
1,837
7,318
10,272
19,039
1,823
9,374
7,842
16,836'
1,923
8,518'
6,395'
16,631'
1,975
9,176'
5,481
17,652'
1,630
8,728'
7,294
17,795'
1,891
9,05(y
6,853'
17,256'
1,546
9,07C
6,640'
17,650
1,538
9,274
6,839
20,205
2,166
8,951
9,089
25 Banks' custody liabilities4
26 U.S. Treasury bills and certificates5
27 Other negotiable and readily transferable
instruments6
28 Other
55,008
46,658
60,448
54,341
67,026
59,976
60,898
54,685
63,366
57,226
62,192
56,691
63,710
58,589
65,572'
60,727
66,425
60,921
62,114
56,493
8,321
28
6,082
25
6,966
84
6,109
105
6,007
133
5,451
50
5,042
78
4,725'
120
5,291
213
5,486
135
185,881
226,887
248,897'
257,656'
253,040'
251,784'
254,045'
257,ny
254,070
257,537
169,449
50,230
8,675
28,386
13,169
119,219
205,347
60,236
8,759
37,439
14,038
145,111
225,372'
74,732'
10,556
47,155'
17,021'
150,640'
235,223'
80,452'
9,137'
54,25C
17,064'
154,770'
230,607'
78,149
9,266
51,610
17,273
152,459'
229,858'
78,361'
8,714
52,674'
16,973
151,496'
232,319'
76,793'
9,847
49,968'
16,977'
155,526'
235,488'
76.15CK
8,647
49,919'
17,584'
159,338'
231,826
75,599
8,594
49,975
17,030
156,227
234,954
77,997
10,478
49,276
18,244
156,957
16,432
5,809
21,540
10,178
23,525'
11,448'
22,433
10,602
22,432
10,446
21,926
10,216
21,727'
9,745
21,625
9,934
22,244
9,966
22,583
9,952
7,857
2,766
7,485
3,877
7,236'
4,841'
6,206
5,625
6,235
5,751
6,104
5,606
6,231
5,751'
6,390'
5,301'
6,506
5,772
6,418
6,214
29 Banks9
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time 2
deposits1
34
Other
35 Own foreign offices3
36 Banks' custody liabilities4
37 U.S. Treasury bills and certificates
38 Other negotiable and readily transferable
instruments6
39 Other
40 Other foreigners
44,606
56,887
68,087'
72,135'
71,774'
72,976'
71,602'
71,460'
72,038
73,235
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other 2
39,092
5,209
33,219
664
49,680
6,577
42,290
813
60,444'
6,938'
52,655'
851
62,911'
6,863
55,105'
943
62,643'
6,888
54,810'
945
63,710'
7,098
55,643'
969
63,020'
7,52C
54,29C
1,211
62,957'
7,335'
54,524'
1,098'
63,673
7,351
55,455
867
64,756
8,066
55,177
1,513
5,514
1,540
7,207
3,686
7,642'
4,029'
9,224
4,182
9,131
3,973
9,266
3,915
8,581
4,085
8,503'
3,968
8,365
4,169
8,479
4,193
3,065
908
3,038
483
3,021'
593'
4,294
748
4,501
657
4,604
746
3,793
704
4,040
495'
3,708
489
3,774
513
14,307
10,346
10,476
9,412
9,145
9,081
8,679
8,567
8,903
9,177
45 Banks' custody liabilities4
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
1. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
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."
Nonbank-Reported
3.17
Data
Continued
1985
Area and country
1982
1983
1984
Mar.
May
June
July
Aug.
Sept.''
307,056
1
2 Foreign countries
3
4
5
6
7
8
9
10
11
17
13
14
15
16
17
18
19
70
21
77
23
Apr.
Belgium-Luxembourg
Finland
Germany
Greece
Italy
Netherlands
Norway
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe 1
U.S.S.R
Other Eastern Europe 2
369,607
407,133'
413,430'
410,976'
411,297'
412,861
416,420'
417,536
420,560
302,134
363,649
403,049'
407,525'
404,811'
404,603'
407,152
411,401'
410,183
413,092
117,756
519
2,517
509
748
8,171
5,351
537
5,626
3,362
1,567
388
1,405
1,390
29,066
296
48,172
499
7,006
50
576
138,072
585
2,709
466
531
9,441
3,599
520
8,462
4,290
1,673
373
1,603
1,799
32,246
467
60,683
562
7,403
65
596
153,212'
615
4,114
438
418
12,701
3,358
699
10,762'
4,799
1,548
597
2,082
1,676
31,740'
584
68,671'
602
7,192'
79
537
151,763'
670
4,797
452
804
12,782
2,923
730
8,412
5,037'
1,889
715
2,079
1,667
30,421
527
70,289
671
6,286
94
517
149,218'
537
4,795
557
476
13,627
3,539
649
7,895
4,558r
2,138
698
2,000
1,901
30,059
506
68,239
648
5,790
125
480
151,219
627
4,619
494
604
14,178
3,727
585
8,467
4,685
1,994
665
2,030
1,689
29,706
384
69,779
585
5,877
67
458
153,718
563
4,889
727
325
13,849
4,003
605
9,276
4,386
1,397
635
2,015
2,277
29,547
631
70,958
729
6,261
31
614
156,132'
567
5,743
684
349
15,237
4,389
588
9,624
4,689
1,183
658
2,113
2,559
29,835'
598
70,208'
626
6,004'
72
406
160,215
711
5,416
617
377
15,626
5,359
531
9,537
4,691
1,156
672
2,034
2,008
29,535
404
73,557
622
6,814
45
504
157,019
767
5,710
778
351
15,664
5,218
603
9,088
4,569
1,043
640
2,140
1,668
29,309
516
70,487
647
7,302
37
483
12,232
16,026
16,048
17,228
17,006
16,214
15,874
16,284
16,739
17,363
75 Latin America and Caribbean
76 Argentina
77
Bahamas
78 Bermuda
79 Brazil
30 British West Indies
31
Chile
37 Colombia
33 Cuba
34
Ecuador
35 Guatemala
36
37
38 Netherlands Antilles
39
40
41
Uruguay
4?
Venezuela
Other Latin America and Caribbean
43
114,163
3,578
44,744
1,572
2,014
26,381
1,626
2,594
9
455
670
126
8,377
3,597
4,805
1,147
759
8,417
3,291
140,088
4,038
55,818
2,266
3,168
34,545
1,842
1,689
8
1,047
788
109
10,392
3,879
5,924
1,166
1,244
8,632
3,535
153,516'
4,394'
56,897
2,370
5,275'
36,773'
2,001
2,514
10
1,092
896
183
12,506
4,153
6,951
1,266
1,394
10,545
4,297
157,687'
4,528'
59,600
2,799
4,599'
36,593
1,897
2,540
6
1,024
950
163
13,293'
4,582'
7,488
1,132
1,443
10,649
4,401
156,823'
4,664
59,069
3,159
4,743
35,765
1,909
2,401
6
1,022
955
154
13,222'
4,383
7,584
1,077
1,461
10,791
4,458
157,092'
4,912
58,195
3,192
5,376
35,489
1,922
2,452
7
987
979
146
13,678'
4,439
7,570
1,162
1,492
10,696
4,396
158,310
5,081
57,406
2,503
5,187
38,965
1,870
2,526
6
1,004
963
123
13,533
4,200
7,427
1,168
1,415
10,471
4,460
159,011'
5,322
55,858
2,380
5,602'
40,965'
1,910
2,421
10
1,046
972
194
13,123'
4,025
7,462
1,113
1,460
10,853
4,297
154,895
5,283
55,446
2,741
5,910
35,654
1,966
2,543
9
1,043
995
152
13,381
4,261
7,447
1,133
1,557
10,940
4,435
157,470
5,639
53,660
2,124
5,873
38,891
1,992
2,599
13
1,251
1,005
144
13,809
4,973
7,163
1,159
1,576
11,086
4,515
44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48
49 Indonesia
50
51 Japan
57
Korea
53 Philippines
54 Thailand
55 Middle-East oil-exporting countries 3
56 Other Asia
48,716
58,570
71,192'
72,2^
73,370'
71,641'
70,477
71,715'
70,513
73,291
912
5,242
7,091
554
1,241'
873
22,683
1,595
1,223
1,141
16,373
14,441
698
5,381
7,360
546
1,164'
988
22,688
1,598
1,305
1,167
16,316
12,430
886
5,545
7,989
569
1,264
1,053
21,103
1,705
1,443
1,063
15,052
12,805
939
5,849
7,831'
555
1,463
1,011
22,913'
1,493
1,335
984
15,410
11,932'
1,135
6,047
8,012
484
1,337
885
22,537
1,584
1,694
1,073
14,812
10,915
1,973
6,268
7,906
646
1,358
1,190
23,583
1,657
1,606
1,029
15,343
10,733
24 Canada
203
2,761
4,465
433
857
606
16,078
1,692
770
629
13,433
6,789
249
4,051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
1,153
4,975
6,594
507
1,033
1,268
21,652'
1,724
1,383
1,257
16,804
12,841'
980
5,306
6,937
738
1,175'
941
24,540
1,526
1,102
1,384
16,391
11,200
3,124
432
81
292
23
1,280
1,016
2,827
671
84
449
87
620
917
3,396
647
118
328
153
1,189
961
3,476
715
167
244
100
1,346
903
3,517
747
155
339
128
1,177
969
3,429
618
189
273
124
1,114
1,112
3,920
745
161
332
170
1,497
1,015
3,384
881
98
181
87
1,099
1,037
3,501
737
162
420
103
1,092
986
3,641
932
157
370
115
1,049
1,018
64 Other countries
65
66
All other
6,143
5,904
239
8,067
7,857
210
5,684
5,300
384
5,152
4,743
409
4,877
4,456
422
5,009
4,608
401
4,854
4,462
392
4,876
4,364
511
4,319
3,850
469
4,308
3,768
540
67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional 5
4,922
4,049
517
357
5,957
5,273
419
265
4,083
3,376
587
120
5,905
5,132
632
141
6,166'
5,301'
706
159
6,694
5,636
834
224
5,709
4,698
808
203
5,019'
3,967'
782
270
7,353
6,458
739
156
7,467
6,542
796
129
57
58
59
60
61
67
63
Oil-exporting countries 4
Other Africa
68
69
70
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. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
3.18
International Statistics • January 1986
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1985
Area and country
1982
1983
1984
Mar.
Apr.
May
June
July
Aug.
Sept.?
1 Total
355,705
391,312
398,845'
397,317'
391,432'
391,355'
396,253
390,368'
387,407
392,629
2 Foreign countries
355,636
391,148
398,251'
397,067'
390,295'
390,540'
395,543
390,094'
386,969
392,247
85,584
229
5,138
554
990
7,251
1,876
452
7,560
1,425
572
950
3,744
3,038
1,639
560
45,781
1,430
368
263
1,762
91,927
401
5,639
1,275
1,044
8,766
1,284
476
9,018
1,267
690
1,114
3,573
3,358
1,863
812
47,364
1,718
477
192
1,598
98,151'
433
4,794
648
898
9,142'
1,313
817
9,119'
1,351
675
1,243
2,884
2,220
2,123
1,130
55,352'
1,886
596
142
1,382
101,962'
484
5,233
638
826
10,042
1,072
848
8,711
1,348
621
1,186
2,978
2,342
1,921
1,172
58,585'
1,793
642
203
1,317
99,630'
519
5,161
601
804
10,278'
1,008
907
8,256
1,401
748
1,151
2,890
2,338
1,843
1,147
56,396'
1,892
640
245
1,404
100,205'
552
5,264
560
700
10,462
1,015
921
7,798
1,040
753
1,158
2,587
2,177
1,631
1,162
58,020'
1,940
760
312
1,393
100,953
536
5,219
474
896
9,969
1,223
1,002
7,520
1,339
750
1,156
2,700
2,067
2,231
1,208
58,377
1,958
775
297
1,255
100,377'
815
5,740
498
875
10,001'
1,115'
947
7,623
1,137'
710
1,151
2,387
2,698
2,669
1,313
56,437'
1,972
679
250
1,358'
100,897
703
5,496
492
738
10,226
933
959
6,522
1,188
683
1,181
2,146
2,478
2,629
1,234
59,270
1,954
629
239
1,198
105,865
762
6,147
615
906
11,119
999
1,014
7,421
1,281
856
1,211
2,440
2,470
3,091
1,303
60,186
1,899
692
199
1,256
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
24 Canada
13,678
16,341
16,093'
18,8^
18,383'
17,926'
17,889
16,696
17,015
16,944
187,969
10,974
56,649
603
23,271
29,101
5,513
3,211
3
2,062
124
181
29,552
839
10,210
2,357
686
10,643
1,991
205,491
11,749
59,633
566
24,667
35,527
6,072
3,745
0
2,307
129
215
34,802
1,154
7,848
2,536
977
11,287
2,277
207,649'
11,043
57,949'
592
26,315
38,120'
6,839
3,499
0
2,420
158
252
34,824
1,350
7,707
2,384
1,088
11,017
2,091
202,94C
11,162
57,638'
464
26,124
36,396'
6,775
3,313
0
2,470
154
233
33,410
1,259'
7,083
2,345
1,019
10,956
2,139
199,130'
11,163
55,554'
633
26,207
35,571'
6,676
3,246
0
2,467
154
223
32,554
1,319
7,039
2,353
1,014
10,804
2,154
201,180'
11,346
56,781'
506
26,434
36,107'
6,634
3,270
0
2,487
149
237
32,748
1,386
6,751
2,310
1,013
10,947
2,072
203,974
11,416
59,477
563
26,549
36,372
6,680
3,207
0
2,493
145
227
32,384
1,249
6,856
2,286
1,013
10,996
2,060
200,765'
11,456
55,610
405
26,559'
37,436
6,663
3,210
0
2,450
153
234
32,129'
1,110
6,985
2,237
1,007
10,992
2,129'
196,806
11,293
53,435
503
26,431
35,857
6,476
3,195
0
2,430
149
228
32,363
1,135
6,923
2,221
1,018
11,028
2,122
196,292
11,850
53,091
564
26,010
35,259
6,524
3,251
0
2,486
168
228
32,338
1,139
7,055
2,206
1,035
11,082
2,005
60,952
67,837
66,296'
63,619'
63,45C
61,833'
63,470
63,242'
63,544
64,356
214
2,288
6,787
222
348
2,029
28,379
9,387
2,625
643
3,087
4,943
292
1,908
8,489
330
805
1,832
30,354
9,943
2,107
1,219
4,954
5,603
710
1,849
7,283
425
724'
2,088
29,066'
9,285
2,550
1,125
5,044
6,147'
650
1,954
6,644'
284
780
1,941
27,996'
9,329'
2,435
1,005
4,708
5,895
572
1,937
6,897
307
704
2,004
26,614'
9,434
2,360
939
5,509
6,171
543
1,641
7,290
270
701
2,038
25,429'
9,127
2,384
852
5,546
6,012'
358
1,718
7,237
310
682
2,598
26,529
9,158
2,448
862
5,120
6,449
635
1,540
7,473'
385'
631
2,053
26,336
9,707
2,454
746'
5,315
5,967
560
1,517
7,989
460
623
1,927
27,662
9,291
2,487
755
4,116
6,158
1,171
1,514
7,705
462
718
1,875
26,952
9,092
2,443
791
4,845
6,786
57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries5
63 Other
5,346
322
353
2,012
57
801
1,802
6,654
747
440
2,634
33
1,073
1,727
6,615
728
583
2,795
18
842
1,649
6,221
674
584
2,420
24
819
1,700
6,299
629
595
2,508
24
893
1,651
6,203
612
577
2,497
24
871
1,621
6,075
626
592
2,524
24
740
1,569
5,957'
606
596
2,402
24
743
1,587'
5,718
585
598
2,214
25
722
1,574
5,701
634
592
2,094
22
835
1,525
64 Other countries
65 Australia
66 All other
2,107
1,713
394
2,898
2,256
642
3,447'
2,769'
678
3,510
2,824
686
3,403
2,755
648
3,194
2,536
658
3,183
2,498
685
3,057
2,320
737
2,988
2,225
764
3,090
2,303
787
68
164
594'
25C
1138'
815
710
275
438
382
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala3
36 Jamaica3
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean
44
45
46
47
48
49
50
51
52
53
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 4
Other Asia
67 Nonmonetary international and regional
organizations6
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 before April 1978 include claims of banks' domestic
customers on foreigners.
Nonbank-Reported
3.19
Data
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
1985
Type of claim
1982
1983
1984'
Mar/
Apr/
May'
391,432
62,114
155,070
119,696
47,990
71,706
54,552
391,355
61,673
157,026
119,435
48,459
70,976
53,222
June
1 Total
396,015
426,215
431,761
430,963
2
3
4
5
6
7
8
355,705
45,422
127,293
121,377
44,223
77,153
61,614
391,312
57,569
146,393
123,837
47,126
76,711
63,514
398,845
61,595
156,174
123,967
48,379
75,588
57,109
397,317
61,811
157,798
122,601
50,032
72,568
55,107
40,310
2,491
34,903
2,969
32,916
3,380
33,646
3,806
26,064
23,805
24,641
5,870
5,732
5,198
37,715
37,103
35,496
46,217
40,508
39,703
392,629
61,981
159,342
118,344
48,679
69,665
52,961
37,336
38,068
n.a.
31,699
42,499
387,407
60,907
155,533
117,674
49,357
68,316
53,294
5,505
38,153
390,368
61,239
158,164
117,446
48,786
68,660
53,520
21,064
7,056
Aug.
29,439
2,870
30,763
Sept.P
July'
Banks' own claims on foreigners
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2 . .
392,629
425,692
396,253
61,241
162,840
118,493
48,135
70,358
53,679
11 Negotiable and readily transferable
12 Outstanding collections and other
13 MEMO: Customer liability on
acceptances
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . . .
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.
3.20
37,484
39,407
35,943'
3. Principally negotiable time certificates of deposit and bankers acceptances.
4. 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.
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
1984
Maturity; by borrower and area
1981A
1982
1985
1983
Sept/
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less1
Europe
Canada
Latin America and Caribbean
Africa
All other 2
Maturity of over 1 year 1
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 2
Mar/
June
154,590
228,150
243,715
240,752
243,409
239,521
231,713
116,394
15,142
101,252
38,197
15,589
22,608
173,917
21,256
152,661
54,233
23,137
31,095
176,158
24,039
152,120
67,557
32,521
35,036
162,974
21,216
141,758
77,779
38,695
39,084
166,381
22,758
143,623
77,027
39,247
37,780
165,185
23,615
141,570
74,335
38,164
36,171
158,641
23,899
134,742
73,072
37,425
35,647
28,130
4,662
48,717
31,485
2,457
943
50,500
7,642
73,291
37,578
3,680
1,226
56,117
6,211
73,660
34,403
4,199
1,569
56,824
5,853
61,495
32,297
4,798
1,705
58,398
6,015
61,653
33,484
4,442
2,388
60,391
7,531
60,162
30,690
4,109
2,301
55,656
6,135
63,545
27,537
4,003
1,764
8,100
1,808
25,209
1,907
900
272
11,636
1,931
35,247
3,185
1,494
740
13,576
1,857
43,888
4,850
2,286
1,101
11,250
1,801
56,627
5,079
1,871
1,150
9,605
1,890
57,069
5,323
2,033
1,107
8,545
2,181
55,372
5,221
1,963
1,053
8,628
2,116
53,507
5,203
1,996
1,622
• Liabilities and claims of banks in the United States were increased, beginning
in December 1981, by the shift from foreign branches to international banking
facilities in the United States of liabilities to, and claims on, foreign residents.
Dec/
1. Remaining time to maturity,
2. Includes nonmonetary international and regional organizations,
A61
A62
3.21
International Statistics • January 1986
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1983
Area or country
1981
1984
1985
1982
June
1 Totol
Sept.
Dec.
Mar.
June 7
Sept.
Dec.
Mar.
June?
415.2
438.7
439.9
431.0
437.3
435.1
430.6
410.1
407.7
409.3
400.6
175.5
13.3
15.3
12.9
9.6
4.0
3.7
5.5
70.1
10.9
30.2
179.7
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
177.1
13.3
17.1
12.6
10.5
4.0
4.7
4.8
70.8
10.8
28.5
168.8
12.6
16.2
11.6
9.9
3.6
4.9
4.2
67.8
8.9
29.0
168.0
12.4
16.3
11.3
11.4
3.5
5.1
4.3
65.4
8.3
29.9
166.0
11.0
15.9
11.7
11.2
3.4
5.2
4.3
65.1
8.6
29.7
157.7
10.9
14.2
10.9
11.5
3.0
4.3
4.2
60.5
8.9
29.3
148.0
9.8
14.3
10.0
9.7
3.4
3.5
3.9
57.4
8.1
27.9
147.6
8.8
14.1
9.0
10.1
3.9
3.2
3.9
59.8
7.8
27.2
152.4
9.4
14.6
8.9
10.0
3.7
3.1
4.2
64.8
9.0
24.7
146.7
9.0
13.6
9.6
8.9
3.7
2.9
4.0
65.2
8.0
21.9
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
28.4
1.9
2.3
1.7
2.8
3.1
1.1
6.6
1.4
2.1
2.8
2.5
33.7
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.4
34.5
2.1
3.4
2.1
2.9
3.4
1.4
7.2
1.4
2.0
3.9
4.5
34.3
1.9
3.3
1.8
2.9
3.2
1.4
7.1
1.5
2.1
4.7
4.4
36.1
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.5
35.7
2.0
3.4
2.1
3.0
3.2
1.4
7.1
1.9
1.8
4.8
5.2
37.1
1.9
3.1
2.3
3.3
3.2
1.7
7.3
2.0
1.9
4.7
5.7
36.3
1.8
2.9
1.9
3.2
3.2
1.6
6.9
2.0
1.7
5.0
6.2
33.8
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.1
33.0
1.6
2.1
1.8
2.9
2.9
1.4
6.5
1.9
1.7
4.2
6.2
32.4
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.3
25 OPEC countries 2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
24.8
2.2
9.9
2.6
7.5
2.5
27.4
2.2
10.5
3.2
8.7
2.8
28.3
2.2
10.4
3.2
9.5
3.0
27.2
2.1
9.8
3.4
9.1
2.8
28.9
2.2
9.9
3.8
10.0
3.0
28.6
2.1
9.7
4.0
9.8
3.0
26.7
2.1
9.5
4.0
8.4
2.7
25.0
2.1
9.2
3.8
7.4
2.5
25.6
2.2
9.3
3.7
8.2
2.3
25.2
2.2
9.3
3.6
7.8
2.3
23.6
2.3
9.3
3.4
6.5
2.1
31 Non-OPEC developing countries
96.3
107.1
108.8
109.8
111.6
112.2
112.8
111.9
112.2
111.3
110.4
9.4
19.1
5.8
2.6
21.6
2.0
4.1
8.9
22.9
6.3
3.1
24.5
2.6
4.0
9.4
22.7
5.8
3.2
25.3
2.6
4.3
9.5
23.1
6.3
3.2
25.9
2.4
4.2
9.5
23.1
6.4
3.2
26.1
2.4
4.2
9.5
25.1
6.5
3.1
25.6
2.3
4.4
9.2
25.4
6.7
3.0
26.0
2.3
4.1
9.1
26.3
7.1
2.9
26.1
2.2
3.9
8.7
26.3
7.0
2.9
25.8
2.2
3.9
8.6
26.4
7.0
2.8
25.7
2.2
3.7
8.6
26.6
6.9
2.7
25.6
2.1
3.6
.2
5.3
.6
2.3
10.9
2.1
6.3
1.6
1.1
.2
5.1
.7
2.3
10.9
2.6
6.4
1.8
1.2
.2
5.2
.8
1.7
10.9
2.8
6.2
1.8
1.0
.3
5.3
1.0
1.9
11.3
2.9
6.2
2.2
1.0
.3
4.9
1.0
1.6
11.1
2.8
6.7
2.1
.9
.6
5.3
1.0
1.9
11.2
2.7
6.3
1.9
1.1
.5
5.2
1.1
1.7
10.3
3.0
5.9
1.8
.9
.7
5.1
1.0
1.8
10.8
2.8
6.0
1.8
1.1
.7
5.3
1.0
1.7
10.5
2.8
6.1
1.7
1.1
.3
5.5
1.0
2.3
10.1
2.8
5.9
1.5
.9
2 G-10 countries and Switzerland
3 Belgium-Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
Asia
China
Mainland
Taiwan
39
40
41
42
43
44
45
46
47
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
5.1
.3
2.1
9.4
1.7
6.0
1.5
1.0
48
49
50
51
Africa
Egypt
Morocco...'
Zaire
Other Africa3
1.1
.7
.2
2.3
1.2
.7
.1
2.4
1.3
.8
.1
2.2
1.4
.8
.1
2.4
1.5
.8
.1
2.3
1.4
.8
.1
2.2
1.4
.8
.1
1.9
1.2
.8
.1
1.9
1.2
.8
.1
2.1
1.1
.8
.1
2.2
1.0
.8
.1
2.0
52 Eastern Europe
53
U.S.S.R
54 Yugoslavia
55 Other
7.8
.6
2.5
4.7
6.2
.3
2.2
3.7
5.8
.4
2.3
3.0
5.3
.2
2.3
2.8
5.3
.2
2.4
2.8
4.9
.2
2.3
2.5
4.9
.2
2.3
2.4
4.5
.2
2.3
2.1
4.4
.1
2.3
2.0
4.3
.2
2.2
1.9
4.3
.3
2.2
1.8
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama 4
62 Lebanon
63 Hong Kong
64 Singapore
65 Others 5
63.7
19.0
.7
12.4
3.2
7.7
.2
11.8
8.7
.1
66.8
19.0
.9
12.9
3.3
7.6
.1
13.9
9.2
.0
69.3
20.7
.8
12.7
2.6
6.6
.1
14.5
11.2
.0
68.7
21.6
.8
10.5
4.1
5.7
.1
15.2
10.5
.1
70.5
21.8
.9
12.2
4.2
6.0
.1
15.0
10.3
.0
71.4
24.6
.7
12.0
3.3
6.3
.1
14.4
10.0
.0
74.1
27.5
.7
12.2
3.3
6.6
.1
13.5
10.2
.0
66.9
23.7
1.0
11.1
3.1
5.7
.1
12.7
9.5
.0
66.8
21.5
.9
11.7
3.4
6.8
.1
12.5
9.8
.0
66.2
21.6
.7
12.3
3.3
5.7
.1
12.4
10.0
.0
65.9
21.5
.9
12.4
3.2
5.5
.1
12.6
9.6
.0
66 Miscellaneous and unallocated6
18.8
17.9
16.2
16.9
17.0
16.3
17.3
17.3
17.3
16.9
17.5
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Besides 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).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.
7. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions o f dollars, e n d o f p e r i o d
1985
1984
Type, and area or country
981
1983
1982
Sept.
June
Mar.
Dec.
JuneP
28,618
27,512
25,236''
34,269
30,759
28,808'
25,594
24,456
2 Payable in dollars
3 Payable in foreign currencies
24,909
3,709
24,280
3,232
22,216'
3,020
31,071
3,198
27,954
2,804
25,935'
2,873
22,915
2,679
21,898
2,558
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
12,157
9,499
2,658
11,066
8,858
2,208
10,462'
8,683'
1,779
18,595
16,553
2,043
15,900
14,103
1,797
13,951'
12,084'
1,868
11,073
9,322
1,751
11,353
9,485
1,868
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities..
16,461
10,818
5,643
16,446
9,438
7,008
14,774
7,765
7,009
15,674
7,897
7,776
14,859
6,900
7,959
14,857
6,990
7,867
14,521
7,052
7,469
13,103
5,854
7,249
15,409
1,052
15,423
1,023
13,533
1,241
14,518
1,155
13,852
1,007
13,851
1,006
13,593
928
12,413
690
6,825
471
709
491
748
715
3,565
6,501
505
783
467
711
792
3,102
5,742
302
843
502
621
486
2,839
7,335
359
900
571
595
563
4,097
6,679
428
910
521
595
514
3,463
6,798
471
995
489
578
569
3,389
6,100
298
896
506
602
541
3,028
5,893
348
865
474
597
566
2,801
1 Total
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
Asia
Japan
Middle East oil-exporting countries 2 ..
30
Africa
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries 3
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
963
746
764
735
825
863
840
850
3,356
1,279
7
22
1,241
102
98
2,751
904
14
28
1,027
121
114
2,596'
751
13
32
1,041'
213
124
9,038
3,642
13
25
4,567'
237
124
6,800
2,606
11
33
3,271
260
130
4,576'
1,423
13
35
2,103'
367
137
2,652
853
25
29
1,521
25
3
3,106
1,107
10
27
1,734
32
3
976
792
75
1,039
715
169
1,332
898
170
1,462
1,013
180
1,566
1,085
144
1,682
1,121
147
1,460
945
116
1,478
877
147
14
0
17
0
19
0
16
0
16
1
14
0
12
0
14
0
24
12
10
9
14
19
10
13
3,770
71
573
545
220
424
880
3,831
52
598
468
346
367
1,027
3,245
62
437
427
268
241
732
3,409
45
525
501
265
246
794
3,961
34
430
558
239
405
1,133
3,987
48
438
619
245
257
1,082
3,519
37
401
590
272
233
752
3,485
53
425
431
284
353
740
897
1,495
1,841
1,840
1,906
1,975
1,727
1,494
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,044
2
67
67
2
340
276
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,705
17
124
31
5
568
630
1,758
1
110
68
8
641
628
1,871
7
114
124
32
586
636
1,717
11
112
101
21
654
395
1,244
12
77
90
1
492
309
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 ' 3
9,384
1,094
7,008
8,144
1,226
5,503
6,741
1,247
4,178
6,989
1,235
4,190
5,569
1,429
2,364
5,307
1,256
2,372
5,721
1,241
2,786
5,259
1,232
2,396
51
52
Africa
Oil-exporting countries 3
703
344
753
277
553
167
684
217
597
251
588
233
765
294
633
265
53
All other 4
664
651
921
1,046
1,068
1,128
1,070
988
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
3.23
International Statistics • January 1986
CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1984
Type, and area or country
1981
1982
1985
1983
Sept.
June
JuneP
Mar.
Dec.
1
36,185
28,725
34,790
32,099
30,626
29,570
28,415
26,554
2 Payable in dollars
3 Payable in foreign currencies
32,582
3,603
26,085
2,640
31,695
3,096
29,118
2,982
27,835
2,792
26,973
2,597
25,843
2,571
23,935
2,619
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
21,142
15,081
14,456
625
6,061
3,599
2,462
17,684
13,058
12,628
430
4,626
2,979
1,647
23,660
18,375
17,872
503
5,284
3,328
1,956
21,646
16,498
15,977
522
5,148
3,387
1,761
20,227
15,419
14,979
439
4,808
3,116
1,693
18,980
14,347
13,927
420
4,633
3,190
1,442
18,118
14,126
13,629
497
3,992
2,427
1,565
16,067
12,183
11,637
546
3,884
2,403
1,480
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
15,043
14,007
1,036
11,041
9,994
1,047
11,131
9,721
1,410
10,454
9,111
1,343
10,399
8,896
1,503
10,591
9,110
1,481
10,297
8,784
1,513
10,487
9,121
1,367
14
15
14,527
516
10,478
563
10,494
637
9,754
699
9,740
659
9,856
735
9,787
510
9,895
592
4,596
43
285
224
50
117
3,546
4,873
15
134
178
97
107
4,064
6,452
37
150
163
71
38
5,781
6,485
37
151
166
158
61
5,660
5,703
15
151
192
62
64
4,988
5,643
15
126
224
66
66
4,745
5,691
29
86
196
72
46
4,974
5,293
15
46
168
37
16
4,737
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
6,755
4,377
5,974
5,302
4,492
4,006
3,945
3,790
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,812
3,650
18
30
3,971
313
148
7,546
3,279
32
62
3,255
274
139
10,164
4,745
102
53
4,163
293
134
8,615
3,269
11
83
4,415
230
124
8,859
3,392
5
84
4,495
232
128
8,045
3,270
6
100
3,905
215
125
7,427
2,992
4
98
3,745
201
101
6,158
2,156
5
96
3,341
205
100
758
366
37
698
153
15
764
297
4
977
321
8
900
371
7
961
353
13
856
509
6
620
281
6
173
46
158
48
147
55
158
35
160
37
210
85
101
32
111
25
48
31
159
109
113
114
97
95
5,405
234
776
561
299
431
985
3,826
151
474
357
350
360
811
3,670
135
459
349
334
317
809
3,555
142
408
447
306
250
812
3,570
128
411
370
303
289
891
3,812
138
440
374
340
271
1,063
3,360
149
375
358
340
253
885
3,707
224
410
373
301
376
952
31
32
33
34
35
36
37
38
39
40
41
42
43
Japan
Middle East oil-exporting countries 2
Africa
Oil-exporting countries 3
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
52
53
54
Japan
Middle East oil-exporting countries 2
967
633
829
933
1,026
1,021
1,248
1,065
3,479
12
223
668
12
1,022
424
2,526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,042
4
89
310
8
577
241
1,976
14
88
219
10
595
245
1,973
8
115
214
7
583
206
1,973
9
164
210
6
493
192
2,137
11
65
193
6
616
224
3,959
1,245
905
3,050
1,047
751
3,063
1,114
737
3,091
1,183
710
2,895
1,089
703
3,086
1,191
688
2,985
1,154
666
2,720
968
593
55
56
Africa
Oil-exporting countries 3
772
152
588
140
588
139
536
128
595
135
470
134
510
141
522
139
57
All other 4
461
417
286
297
338
229
221
337
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A65
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1985
1985
Transactions, and area or country
1984
1983
Jan.Sept.
Mar.
Apr/
May'
June
July
Aug.
Sept.''
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
69,770
64,360
60,704'
63,628'
55,035
54,263
6,342'
6,771'
5,147
5,104
6,520
6,423
6,471
6,069
7,181
6,522
6,366
5,721
4,813
4,690
3
Net purchases, or sales ( - )
5,410
-2,924'
772
—429'
44
97
402
659
645
123
4
Foreign countries
5,312
-3,039'
790
—386'
35
140
404
559
644
174
3,979
-97
1,045
-109
1,325
1,799
1,151
529
-808
395
42
24
-2,975
-405
-50
-315
-1,490
-647
1,672'
493
-2,006'
-372
-23
171
-859
-170
-58
-322
-580
88
364
1,085
177
-30
17
36
-583'
-13
-113
-129
-122
-195
-160
24
23
16
-48
-191
34
169
-90
91
-1
-6
-285
17
39
-51
-90
-219
7
247
53
101
-8
25
72
26
5
-86
49
49
-62
132
106
174
13
-31
336
-3
126
42
38
104
66
119
53
-23
25
-16
364
-41
76
18
-28
295
68
109
35
58
9
1
170
-120
29
20
-87
293
35
-25
54
-26
0
-34
-17
-43
8
-44
-1
100
1
-51
4,562
3,135
6,789
3,697
5,319
3,943
8,502
4,254
5,498
3,741
7,491
3,638
5
6
7
8
9
10
11
17
13
14
15
16
17
Germany
Netherlands
Switzerland
United Kingdom
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
Nonmonetary international and
regional organizations
98
115
(Y
80
131'
-41
-13
39
BONDS 2
57,901
31,897
5,546'
2,634'
18
19
Foreign purchases
Foreign sales
20
Net purchases, or sales ( - )
903
13,241'
26,004
2,912'
1,427
3,092
1,376
4,249
1,757
3,853
21
Foreign countries
888
12,944'
25,945
2,962'
1,402
3,230
1,243
3,597
2,069
4,179
909
-89
344
51
583
434
123
100
-1,161
865
0
52
11,793
207
1,731
93
644
8,520
-76'
390
2,951
-10
-113'
8
483
2,550
1,862
1
0
24,243
221
393
52
1,927
20,970
32
223
-2,005
3,426
6
19
1,622
18
162
-9
65
1,294
0
-83
-509
381
0
-9
2,752
0
-17
-11
71
2,398
44
178
-119
372
1
2
1,199
-35
13
-9
93
1,039
4
27
-507
518
0
1
3,210
-2
182
-2
492
2,391
-4
39
-265
610
3
3
1,785
169
103
25
243
1,320
-24
-81
-80
465
1
3
3,949
42
152
-4
154
3,520
-31
-62
-187
508
0
1
297
59
133
651
-312
-326
7?
73
74
75
76
77
78
79
30
31
37,
33
34
Germany
Netherlands
United Kingdom
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
Nonmonetary international and
regional organizations
24,000
23,097
15
39,853'
26,612'
- l ^
- ( /
69
-139'
89
0
-2'
-50
25
-138
Foreign securities
35
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,765
13,281
17,046
-1,21914,597'
15,8^
-3,138
13,896
17,034
-462'
1,395'
1,857'
-145
1,446
1,591
100
1,764
1,665
-174
1,632
1,806
-550
1,580
2,130
-213
1,689
1,902
-224
1,538
1,762
38
39
40
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,239
36,333
39,572
-4,131'
57,312
61,443'
-3,928
57,990
61,919
-926'
5,698'
6,624'
-674
5,674
6,348
-1,059
7,448
8,507
-261
6,691
6,952
-589'
7,147'
7,736'
-295
6,359
6,654
-496
8,249
8,745
41
Net purchases, or sales ( - ) , of stocks and bonds . . . .
-7,004
-5,35<K
-7,066
-I,38Y
42
Foreign countries
-6,559
-4,961'
-7,584
Latin America and Caribbean
-5,492
-1,328
1,120
-855
141
-144
-8,740'
404'
2,472
1,252'
-107
-242'
-8,350
-1,395
1,681
396
1
84
43
44
45
46
47
48
49
Other countries
Nonmonetary international and
regional organizations
-445
-389
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
518
-819
-959
-434
-L.L^
-508
-720
-728
-1,123
-386
-1,368'
-298
-955
-1,185'
- 7 (V
8'
99
-26
-23'
-827
22
136
-18
-5
-36
-2,024
-96
810
201
2
-15
-680
-157
73
353
13
14
-1,185'
-783
150
418
18
13
-858
36
178
387
9
-51
-762
1
189
-400
-2
19
-190
-91
164
-49
-210
235
229
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • January 1986
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions o f dollars
1985
Country or area
1983
1985
1984
Jan.Sept.
Mar.
Apr.
May'
June
Aug.
July
Sept.?
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
3,693
21,447r
21,838
-4,387'
-4,294'
3,069
5,757
4,786
-3,345
6,905
2 Foreign countries 2
3,162
16,444'
24,408
-4,742'
2,219'
4,337
5,757
5,364
1,027
4,357
6,226
-431
2,450
375
170
-421
1,966
2,118
0
699
11,081'
289
2,958
454
46
635
5,234'
1,466
0
1,526
5,477
483
1,704
329
1,100
913
-909
1,858
0
110
-1,439'
0
-1,538
-201
1
315'
287'
-303
0
38
1,798'
80
293'
-7
30
183
174'
1,045
0
334
686
101
838
-73
157
-135
-865
663
0
113
1,025
17
415
10
775
143
-96
-239
0
6
975
21
725
148
119
-21
-761
743
0
7
953
92
937
386
-89
72
-82
-363
0
-144
958
49
294
127
-33
25
283
214
0
106
-212
-124
60
-149
-3,535
2,315
3
-17
1,413
14
528
871
2,377
6,062
-67
114
3,308
112
1,554
1,642
15,145
13,659
93
275
-77'
2
69'
-149
-3,285'
179'
1
20'
467'
10
179'
278
-343'
1,731'
13
-51
581
-9
463
126
2,891
1,060
57
9
205
80
123
2
4,516
2,666
10
-6
156
0
-7
163
4,307
3,752
10
-91
524
33
95
397
-416
875
-1
111
562
2
556
4
2,594
2,253
0
137
535
218
0
5,001'
4,610'
0
-2,571
-2,937
2
355
338
0
-1,268
-1,057
5
-1
-105
0
-577
-219
0
-4,372
-4,400
0
2,547
1,885
3,162
779
2,382
16,444'
515
15,930'
24,408
7,192
17,215
-4,742'
-5,268'
526'
2,219'
-625'
2,844'
4,337
3,530
807
5,757
2,713
3,045
5,364
1,788
3,575
1,027
104
923
4,357
1,064
3,293
6,277
-101
-1,090
1
554
0
-851'
0
52
0
1,422
0
-1,132
0
-838
0
3 Europe 2
4
Belgium-Luxembourg
Germany 2
5
6
Netherlands
Sweden
7
8
Switzerland 2
9
United Kingdom
10
Other Western Europe
Eastern Europe
11
12 Canada
13 Latin America and Caribbean
14
Venezuela
15
Other Latin America and Caribbean
16
Netherlands Antilles
17
18
Japan
19 Africa
20 All other
21 Nonmonetary international and regional organizations
International
22
23
Latin American regional
2,075
1,792
-3
-1
MEMO
24 Foreign countries 2
25
Official institutions
26
Other foreign 2
27
28
Oil-exporting countries
Middle East 3
Africa 4
-5,419
-1
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
-1
0
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on Oct. 31, 1985
Rate on Oct. 31, 1985
Percent
Aug. 1985
Oct. 1985
Mar. 1981
Oct. 1985
Oct. 1983
Country
Month
effective
4.0
9.0
49.0
8.77
7.0
Austria..
Belgium.
Brazil...
Canada..
Denmark
Percent
France 1
Germany, Fed. Rep. of
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
3.27
Rate on Oct. 31, 1985
Country
Country
9.13
4.0
15.5
5.0
5.0
Oct. 1985
Aug. 1984
Jan. 1985
Oct. 1983
Aug. 1985
Percent
Norway
Switzerland
United Kingdom 2 .
Venezuela
Month
effective
8.0
4.0
Month
effective
June 1983
Mar. 1983
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1985
Country, or type
1982
1983
1984
Apr.
1
2
3
4
5
6
7
8
9
10
May
June
July
Aug.
Sept.
Oct.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
12.24
12.21
14.38
8.81
5.04
9.57
10.06
9.48
5.73
4.11
10.75
9.91
11.29
5.96
4.35
8.74
12.70
10.15
5.99
5.35
8.13
12.61
9.77
5.87
5.15
7.60
12.38
9.58
5.66
5.14
7.89
12.01
9.33
5.31
5.07
8.02
11.42
9.16
4.75
4.64
8.14
11.49
9.10
4.64
4.59
8.08
11.49
8.73
4.77
4.53
Netherlands
France
Italy
Belgium
Japan
8.26
14.61
19.99
14.10
6.84
5.58
12.44
18.95
10.51
6.49
6.08
11.66
17.08
11.41
6.32
6.82
10.49
15.15
10.09
6.26
6.90
10.15
14.91
9.35
6.26
6.58
10.18
15.00
8.96
6.30
6.29
9.97
14.37
8.95
6.29
5.80
9.79
14.36
9.50
6.30
5.72
9.57
13.95
9.33
6.31
5.89
9.29
14.16
8.97
6.47
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A68
3.28
International Statistics • J a n u a r y 1986
FOREIGN EXCHANGE RATES
Currency units per dollar
1985
Country/currency
1982
1983
1984
May
June
July
Aug.
Sept.
Oct.
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
101.65
17.060
45.780
179.22
1.2344
1.8978
8.3443
90.14
17.968
51.121
573.27
1.2325
1.9809
9.1483
87.937
20.005
57.749
1841.50
1.2953
2.3308
10.354
67.68
21.868
62.572
5239.00
1.3756
2.8556
11.2244
66.51
21.532
61.719
5786.00
1.3676
2.8693
10.9962
69.95
20.446
58.626
6236.19
1.3526
2.8809
10.456
70.70
19.632
56.543
6714.00
1.3575
2.9093
10.1459
68.96
19.949
57.395
7453.33
1.3703
2.9722
10.2906
70.25
18.569
53.618
8203.57
1.3667
3.0782
9.5880
8
9
10
11
12
13
14
15
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound1
Israel/shekel
4.8086
6.5793
2.428
66.872
6.0697
9.4846
142.05
24.407
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
55.865
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
n.a.
6.4641
9.4829
3.1093
137.239
7.7766
12.5004
100.71
n.a.
6.3660
9.3414
3.0636
136.00
7.7698
12.441
102.19
n.a.
6.0798
8.8513
2.9083
131.75
7.7527
12.031
107.79
n.a.
5.9464
8.5323
2.7937
131.75
7.7906
11.898
111.43
n.a.
6.0140
8.6599
2.8381
136.74
7.8043
12.126
109.55
n.a.
5.6836
8.0641
2.6446
145.74
7.7908
12.033
117.00
n.a.
16
17
18
19
20
21
22
23
24
Italy/lira
Japan/yen
MalaysiaAinggit
Mexico/peso
Netherlands/guilder
New Zealand/dollar1
Norway/krone
Philippines/peso
Portugal/escudo
1354.00
249.06
2.3395
72.990
2.6719
75.101
6.4567
8.5324
80.101
1519.30
237.55
2.3204
155.01
2.8543
66.790
7.3012
11.0940
111.610
1756.10
237.45
2.3448
192.31
3.2083
57.837
8.1596
n.a.
147.70
1984.45
251.73
2.4759
254.8182
3.5097
45.197
8.9442
n.a.
177.545
1953.92
248.84
2.4685
294.22
3.4535
45.949
8.8255
n.a.
176.15
1900.33
241.14
2.4696
346.70
3.2732
49.826
8.4338
n.a.
169.77
1873.51
237.46
2.4644
339.78
3.1429
53.564
8.2487
n.a.
167.34
1903.42
236.53
2.4841
373.02
3.1921
53.285
8.3337
n.a.
172.5
1785.43
214.68
2.4529
407.30
2.9819
56.931
7.9099
n.a.
164.59
25
26
27
28
29
30
31
32
33
34
35
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound1
Venezuela/bolivar
2.1406
92.297
731.93
110.09
20.756
6.2838
2.0327
n.a.
23.014
174.80
4.2981
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
10.6840
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
n.a.
2.2228
50.18
792.56
175.397
27.404
8.9895
2.6150
39.906
27.554
124.83
n.a.
2.2291
50.54
875.00
173.42
27.433
8.8565
2.5721
39.857
27.433
128.08
n.a.
2.2109
51.07
876.46
167.97
27.327
8.4703
2.4060
40.136
27.053
138.07
n.a.
2.2191
43.07
885.09
164.49
27.377
8.3106
2.2962
40.501
26.889
138.40
n.a.
2.2268
39.49
847.46
168.91
27.430
8.3907
2.3749
40.465
27.050
136.42
n.a.
2.1387
38.38
894.49
161.712
27.421
7.9557
2.1692
40.195
26.569
142.15
n.a.
116.57
125.34
138.19
149.92
147.71
140.94
137.55
139.14
130.71
1
2
3
4
5
6
7
MEMO
36 United States/dollar2
1. Value in U.S. cents.
2. Index of weighted-average exchange value of U.S. dollar against currencies
of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76
global trade of each of the 10 countries. Series revised as of August 1978. For
description and back data, see "Index of the Weighted-Average Exchange Value
of the U.S. Dollar: Revision" on p. 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
A69
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
Symbols and
c
e
p
r
*
PRESENTATION
Abbreviations
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
about half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000
when the smallest unit given is millions)
General
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables details do not add to totals because of
rounding.
RELEASES
List Published Semiannually,
with Latest Bulletin
Reference
Issue
December 1985
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES
Published Irregulary, with Latest Bulletin
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Terms
Terms
Terms
Page
All
Reference
and liabilities of commercial banks, March 31, 1983
and liabilities of commercial banks, June 30, 1983
and liabilities of commercial banks, September 30, 1983
and liabilities of commercial banks, December 31, 1983
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
and liabilities of U.S. branches and agencies of foreign banks,
of lending at commercial banks, February 1985
of lending at commercial banks, May 1985
of lending at commercial banks, August 1985
September 30, 1984
December 31, 1984.
March 31, 1985
June 30, 1985
August
December
March
June
April
August
November
January
June
August
November
1983
1983
1984
1984
1985
1985
1985
1986
1985
1985
1985
A70
A68
A68
A66
A74
A76
A76
A70
A70
A70
A70
A70
4.30
Special Tables • January 1986
A S S E T S A N D L I A B I L I T I E S o f U . S . B r a n c h e s and A g e n c i e s o f F o r e i g n B a n k s , J u n e 30, 1985'
Millions of dollars
All states2
New York
Item
Total
1 Total assets5
Branches3
Branches 3
Agencies
Agencies
Other states 2
California,
total4
Illinois,
branches
5,948
8,609
284,847
226,934
57,913
202,854
5,464
47,712
65,051
22
1,349
64
58,952
20
1,293
55
6,099
2
56
10
55,064
16
1,168
53
117
0
26
4
6,024
2
32
0
2,943
2
66
1
311
1
41
0
593
1
15
5
1,114
935
178
848
24
114
44
22
62
62,249
56,407
5,842
52,752
61
5,867
2,821
245
504
33,607
30,184
3,422
28,061
37
3,431
1,676
150
252
200
28,443
2,171
26,272
253
144
26,079
2,109
23,970
241
55
2,364
62
2,302
12
139
24,551
2,068
22,483
228
2
22
5
17
0
1
2,435
45
2,390
10
0
1,145
40
1,105
9
5
90
0
90
2
53
200
13
187
4
14 Total securities, loans, and leasefinancingreceivables . . . .
159,273
123,345
35,927
107,013
4,166
28,364
10,223
3,422
6,084
15 Total securities, book value
16 U.S. Treasury
17 Obligations of other U.S. government agencies and
corporations
18 Obligations of states and political subdivisions in
United States
19 Other bonds, notes, debentures, and corporate stock . .
13,314
3,908
11,522
3,704
1,792
204
10,820
3,460
117
75
1,609
61
488
194
43
19
237
100
571
558
13
542
0
17
0
12
0
86
8,749
75
7,185
12
1,564
62
6,758
0
42
0
1,530
12
283
1
11
11
126
8,379
6,848
1,531
6,558
928
509
221
42
122
6,578
1,801
5,610
1,237
968
563
5,388
1,170
508
419
419
90
153
67
42
0
68
54
8,031
104
7,927
6,501
54
6,447
1,530
50
1,480
6,258
43
6,215
928
50
878
508
0
508
174
0
174
42
12
30
122
0
122
2 Cash and due from depository institutions
3 Currency and coin (U.S. and foreign)
4 Balances with Federal Reserve Banks
5 Balances with other central banks
6 Demand balances with commercial banks in United
States
7 All other balances with depository institutions in
United States and with banks in foreign
countries
8
Time and savings balances with commercial
banks in United States
9
Balances with other depository institutions in
United States
10
Balances with banks in foreign countries
11
Foreign branches of U.S. banks
12
Other banks in foreign countries
13 Cash items in process of collection
20 Federal funds sold and securities purchased under
agreements to resell
21
22
By holder
Commercial banks in United States
Others
23
24
25
26
By type
One-day maturity or continuing contract
Securities purchased under agreements to resell
Other
Other securities purchased under agreements to
resell
14,260
Agencies
Branches
348
346
1
300
0
1
47
0
0
146,079
120
145,958
111,908
85
111,823
34,171
35
34,136
96,269
76
96,193
4,053
4
4,049
26,788
33
26,755
9,740
4
9,735
3,380
1
3,378
5,849
2
5,847
5,368
54,432
27,957
23,638
4,320
23,326
1,522
21,803
3,149
3,286
41,593
20,323
16,293
4,030
18,271
1,279
16,992
2,999
2,081
12,838
7,634
7,345
290
5,055
243
4,811
149
2,429
36,757
17,843
13,968
3,875
16,624
1,168
15,456
2,290
11
902
312
309
3
569
109
460
22
1,296
11,869
7,760
7,481
279
3,945
149
3,796
165
376
3,459
1,555
1,480
76
1,263
96
1,168
640
195
571
299
246
53
271
0
271
1
1,060
874
189
155
34
653
0
653
32
39 Loans for purchasing or carrying securities
40 Commercial and industrial loans
41 U.S. addressees (domicile)
42 Non-U.S. addressees (domicile)
43 Loans to individuals for household, family, and other
personal expenditures
44 All other loans
45 Loans to foreign governments and official
institutions
46 Other
2,215
67,392
43,951
23,442
2,135
52,146
33,599
18,547
80
15,246
10,351
4,895
2,063
43,137
25,920
17,218
0
2,019
200
1,819
151
11,438
8,839
2,599
0
5,410
4,881
529
2
2,353
1,740
613
0
3,036
2,372
664
303
16,369
266
12,481
36
3,889
225
11,659
2
1,119
34
2,000
12
483
21
237
9
871
15,205
1,164
11,493
988
3,712
177
10,803
856
1,105
14
1,863
138
446
37
168
69
819
51
47 Lease financing receivables
48 All other assets
49 Customers' liability on acceptances outstanding
50
U.S. addressees (domicile)
51
Non-U.S. addressees (domicile)
52 Net due from related banking institutions6
53 Other
0
52,144
19,755
12,679
7,076
26,057
6,332
0
37,789
14,715
8,339
6,376
18,129
4,945
0
14,356
5,040
4,340
700
7,928
1,388
0
34,219
14,149
7,943
6,206
15,672
4,398
0
253
23
6
17
89
141
0
12,814
5,054
4,413
642
6,643
1,117
0
874
227
222
5
316
331
0
2,174
225
71
154
1,832
118
0
1,810
78
25
53
1,504
228
27 Total loans, gross
28 LESS: Unearned income on loans
29 EQUALS: Loans, net
Total loans, gross, by category
30 Real estate loans
31 Loans to financial institutions
32 Commercial banks in United States
33
U.S. branches and agencies of other foreign banks . .
34
Other commercial banks
35 Banks in foreign countries
36
Foreign branches of U.S. banks
37
Other
38 Other financial institutions
U.S. Branches and Agencies
4.30
A71
Continued
Millions of dollars
All states2
New York
Item
Branches3
Total
Agencies
Branches3
Agencies
Other states 2
California,
total4
Illinois,
branches
Branches
Agencies
54 Total liabilities5
284,847
226,934
57,913
202,854
5,464
47,712
14,260
5,948
8,609
55 Total deposits and credit balances
56 Individuals, partnerships, and corporations
57
U.S. addressees (domicile)
58
Non-U.S. addressees (domicile)
59 U.S. government, states, and political subdivisions
in United States
60 All other
61
Foreign governments and official institutions . . . .
62
Commercial banks in United States
63
U.S. branches and agencies of other foreign
banks
64
Other commercial banks in United States
65
Banks in foreign countries
66
Foreign branches of U.S. banks
67
Other banks in foreign countries
68
Certified and officers' checks, travelers checks,
and letters of credit sold for cash
154,167
43,625
23,514
20,111
132,020
39,491
23,417
16,074
22,146
4,133
97
4,037
121,615
33,623
18,470
15,153
1,917
126
10
116
18,615
1,726
430
1,296
5,067
2,168
1,953
215
3,308
2,735
2,615
120
3,644
3,248
37
3,211
66
110,476
7,522
46,913
66
92,463
7,048
35,951
0
18,013
474
10,962
23
87,968
6,872
33,679
0
1,792
273
846
2
16,887
157
10,648
12
2,888
25
1,416
29
545
31
258
0
396
164
66
37,847
9,066
55,711
7,539
48,173
29,013
6,938
49,170
6,031
43,139
8,833
2,128
6,542
1,508
5,034
27,240
6,439
47,161
5,450
41,711
471
374
661
265
396
8,857
1,790
6,051
1,389
4,661
1,051
365
1,437
338
1,099
196
62
249
81
168
31
35
154
15
138
330
295
35
256
12
31
10
7
13
69 Demand deposits
70 Individuals, partnerships, and corporations
71
U.S. addressees (domicile)
72
Non-U.S. addressees (domicile)
73 U.S. government, states, and political subdivisions
in United States
74 All other
75
Foreign governments and official institutions . . . .
76
Commercial banks in United States
77
U.S. branches and agencies of other foreign
banks
78
Other commercial banks in United States
79
Banks in foreign countries
80
Certified and officers' checks, travelers checks,
and letters of credit sold for cash
3,595
2,195
1,298
897
3,364
2,055
1,298
757
231
140
0
140
3,065
1,837
1,101
735
12
0
0
0
92
55
27
28
129
113
109
3
109
68
61
7
189
123
0
123
4
1,396
297
116
4
1,304
290
91
0
91
6
25
3
1,225
256
87
0
12
0
0
0
37
1
1
0
16
2
1
0
41
31
2
0
66
5
25
8
107
653
8
82
629
0
25
24
8
80
625
0
0
0
0
1
4
0
1
2
1
1
0
0
25
23
330
295
35
256
12
31
10
7
13
81 Time deposits
82 Individuals, partnerships, and corporations
83
U.S. addressees (domicile)
84
Non-U.S. addressees (domicile)
85 U.S. government, states, and political subdivisions
in United States
86 All other
87
Foreign governments and official institutions . . . .
88
Commercial banks in United States
89
U.S. branches and agencies of other foreign
banks
90
Other commercial banks in United States
91
Banks in foreign countries
148,987
40,054
21,509
18,544
127,476
36,366
21,509
14,857
21,511
3,688
1
3,687
117,602
30,948
16,951
13,997
1,743
49
0
49
18,379
1,529
323
1,206
4,849
1,965
1,759
206
3,114
2,581
2,476
105
3,301
2,982
1
2,981
62
108,871
7,145
46,776
62
91,048
6,737
35,852
0
17,823
408
10,923
20
86,634
6,595
33,585
0
1,694
225
833
2
16,848
155
10,646
11
2,872
22
1,415
28
504
0
256
0
319
147
41
37,837
8,939
54,950
29,005
6,848
48,458
8,832
2,091
6,492
27,232
6,352
46,454
471
362
636
8,857
1,789
6,047
1,051
365
1,434
195
61
248
31
10
130
1,136
1,135
570
566
998
998
570
428
137
137
0
137
768
768
378
390
0
0
0
0
90
90
29
61
90
90
84
5
86
86
78
8
102
102
0
102
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
450
240
136
104
182
72
41
31
267
168
96
73
180
70
40
31
163
77
9
67
54
52
51
1
0
0
0
0
0
0
0
0
53
41
36
5
0
209
80
21
0
110
20
8
0
99
60
13
0
110
20
7
0
86
48
13
0
1
1
1
0
0
0
0
0
0
0
0
0
12
12
0
1
20
108
0
7
82
1
13
25
0
7
82
0
12
25
0
1
0
0
0
0
0
0
0
0
0
0
92 Savings deposits
93 Individuals, partnerships, and corporations
94
U.S. addressees (domicile)
95
Non-U.S. addressees (domicile)
96 U.S. government, states, and political subdivisions
in United States
97 All other
98 Credit balances
99 Individuals, partnerships, and corporations
100
U.S. addressees (domicile)
101
Non-U.S. addressees (domicile)
102 U.S. government, states, and political subdivisions
in United States
103 All other
104
Foreign governments and official institutions . . . .
105
Commercial banks in United States
106
U.S. branches and agencies of other foreign
banks
107
Other commercial banks in United Stales
108
Banks in foreign countries
For notes see end of table.
A72
4.30
Special Tables • January 1986
A S S E T S A N D L I A B I L I T I E S o f U . S . B r a n c h e s and A g e n c i e s o f F o r e i g n B a n k s , June 30,
1985'—Continued
Millions of dollars
All states2
New York
Item
109 Federal funds purchased and securities sold under
agreements to repurchase
110
111
By holder
Commercial banks in United States
Others
112
113
114
115
By type
One-day maturity or continuing contract
Securities sold under agreements to repurchase ..
Other
Other securities sold under agreements to
repurchase
Illinois,
branches
Branches3
Agencies
29,897
23,340
6,556
21,872
530
6,082
25,528
4,369
19,392
3,948
6,135
421
18,142
3,730
247
283
28,610
2,668
25,942
22,055
2,569
19,486
6,555
99
6,456
20,708
2,553
18,155
530
89
441
Total
Branches3
Other states 2
California,
total 4
Agencies
Branches
Agencies
994
264
154
5,969
113
787
207
264
0
118
37
6,078
19
6,059
876
7
869
264
0
264
154
0
154
1,287
1,286
1
1,164
0
4
118
0
0
116 Other liabilities for borrowed money
117 Owed to banks
118
U.S. addressees (domicile)
119
Non-U.S. addressees (domicile)
120 Owed to others
121
U.S. addressees (domicile)
122
Non-U.S. addressees (domicile)
38,289
36,031
34,812
1,219
2,259
2,082
177
23,919
21,887
20,973
915
2,031
1,864
167
14,371
14,143
13,839
304
228
218
10
21,657
19,778
18,916
862
1,879
1,712
167
1,695
1,684
1,630
54
11
11
0
12,062
11,845
11,836
9
217
207
10
1,333
1,189
1,170
19
145
145
0
473
466
432
34
7
7
0
1,068
1,068
827
241
0
0
0
123 All other liabilities
124 Acceptances executed and outstanding
125 Net due to related banking institutions6
126 Other
62,494
22,198
35,590
4,706
47,654
16,923
26,881
3,850
14,840
5,275
8,708
856
37,710
16,334
17,878
3,498
1,321
10
1,169
142
10,952
5,301
4,988
663
6,865
229
6,431
204
1,903
244
1,569
90
3,742
79
3,554
109
113,505
94,070
19,435
84,530
107
18,166
4,787
2,993
2,923
33,906
79,599
31,819
62,252
2,087
17,348
26,576
57,954
0
107
1,310
16,856
2,019
2,768
2,504
489
1,497
1,425
96
58
38
40
0
14
6
8
28
0
0
0
0
0
0
0
0
0
11,581
11,552
29
9,828
0
194
515
1,019
25
3,117
48,357
20,649
9,844
39,632
36,030
3,602
2,155
46,882
20,390
7,007
33,456
30,526
2,930
962
1,475
259
2,837
6,177
5,504
673
1,880
46,211
5,863
6,381
28,767
26,090
2,677
73
1,393
0
137
112
17
95
992
143
105
2,5%
5,387
4,935
451
0
552
11,916
213
3,235
3,067
169
172
21
2,508
278
702
673
29
0
36
256
239
1,430
1,248
182
6,350
6,011
339
5,248
0
384
502
114
102
MEMO
127 Time deposits of $100,000 or more
128 Certificates of deposit (CDs) in denominations of
$100,000 or more
129 Other
130 Savings deposits authorized for automatic transfer and
NOW accounts
131 Money market time certificates of $10,000 and less
than $100,000 with original maturities of 26 weeks
132 Time certificates of deposit in denominations of
$100,000 or more with remaining maturity of
more than 12 months
133
134
135
136
137
138
139
140
Acceptances refinanced with a U.S.-chartered bank ..
Statutory or regulatory asset pledge requirement
Statutory or regulatory asset maintenance requirement
Commercial letters of credit
Standby letters of credit, total
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Standby letters of credit conveyed to others through
participations (included in total standby letters of
credit)
141 Holdings of commercial paper included in total gross
loans
142 Holdings of acceptances included in total commercial
and industrial loans
143 Immediately available funds with a maturity greater
than one day (included in other liabilities for borrowed money)
28,528
18,666
144 Gross due from related banking institutions6
145 U.S. addressees (domicile)
146
Branches and agencies in the United States
147
In the same state as reporter
148
In other states
149
U.S. banking subsidiaries7
150 Non-U.S. addressees (domicile)
151
Head office and non-U.S. branches and agencies.
152
Non-U.S. banking companies and offices
105,285
25,642
24,933
2,996
21,937
709
79,643
77,434
2,209
85,416
18,286
17,828
2,151
15,678
458
67,130
65,375
1,755
153 Gross due to related banking institutions6
154 U.S. addressees (domicile)
155
Branches and agencies in the United States
156
In the same state as reporter
157
In other states
158
U.S. banking subsidiaries7
159 Non-U.S. addressees (domicile)
160
Head office and non-U.S. branches and agencies.
161
Non-U.S. banking companies and offices
114,818
25,969
25,338
2,718
22,621
630
88,849
86,008
2,841
94,169
18,844
18,401
1,947
16,454
443
75,325
72,691
2,634
20,649
7,125
6,937
770
6,167
188
13,524
13,317
207
443
218
225
190
3
237
0
0
14
4,635
3,309
1,325
3,202
45
1,283
76
18
10
9,862
16,816
1,366
8,593
1,147
313
293
19,869
7,356
7,105
846
6,259
251
12,513
12,059
454
78,577
14,236
13,815
2,107
11,708
422
64,341
62,624
1,717
900
159
137
59
78
21
741
736
5
16,944
6,222
5,979
760
5,219
244
10,721
10,441
280
3,199
1,377
1,358
0
1,358
19
1,821
1,786
36
2,949
2,385
2,383
0
2,383
2
564
564
2,716
1,262
1,261
70
1,191
1
1,454
1,283
171
80,783
11,544
11,223
1,904
9,319
322
69,238
66,943
2,2%
1,980
54
54
29
25
0
1,927
1,863
64
15,289
4,094
3,969
722
32,47
126
11,194
11,106
88
9,314
4,524
4,413
0
4,413
110
4,790
4,478
313
2,685
2,038
2,027
0
1
2,027
10
648
645
2
4,766
3,715
3,653
63
3,590
62
1,051
973
78
U.S. Branches and Agencies
4.30
A73
Continued
Millions of dollars
All states2
New York
Item
171 Number of reports filed8
Agencies
Branches3
283,997
63,664
225,150
57,627
58,847
6,037
200,714
53,600
5,498
123
48,738
6,130
14,416
2,985
6,082
310
8,549
517
7,423
140,718
23,062
153,455
34,585
6,185
106,915
18,198
131,457
32,485
1,239
33,802
4,864
21,998
2,100
5,876
91,144
16,525
120,908
27,064
815
3,952
482
1,738
0
347
26,516
3,833
18,651
1,321
230
9,907
1,316
5,206
2,057
55
3,382
246
3,401
2,637
101
5,818
660
3,552
1,506
25,836
38,526
19,651
23,867
6,185
14,659
17,981
21,665
482
1,755
5,888
12,086
1,088
1,307
271
459
126
1,254
463
294
169
188
24
121
45
32
53
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." This form was first used for reporting data as of June 30, 1980. From
November 1972 through May 1980, U.S. branches and agencies of foreign banks
had filed a monthly FR 886a report. Aggregate data from that report were
available through the Federal Reserve statistical release G . l l , last issued on
July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Includes all offices that have the power to accept deposits from U.S.
residents, including any such offices that are considered agencies under state law.
4. Agencies account for almost all of the assets and liabilities reported in
California.
5. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
Other states 2
Illinois,
branches
Branches3
Total
Average for 30 calendar days (or calendar month)
ending with report date
162 Total assets
163 Cash and due from depository institutions
164 Federal funds sold and securities purchased under
agreements to resell
165 Total loans
166 Loans to banks in foreign countries
167 Total deposits and credit balances
168 Time CDs in denominations of $100,000 or more
169 Federal funds purchased and securities sold under
agreements to repurchase
170 Other liabilities for borrowed money
California,
total"
Agencies
Branches
Agencies
footnote 6). On the former monthly branch and agency report, available through
the G.ll statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G.ll tables.
6. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
Gross amounts due from and due to related banking institutions are shown as
memo items.
7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majorityowned by the foreign bank and by related foreign banks and includes U.S. offices
of U.S.-chartered commercial banks, of Edge Act and Agreement corporations,
and of New York State (Article XII) investment companies.
8. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A74
Federal Reserve Board of Governors
PRESTON M A R T I N ,
Chairman
Vice Chairman
OFFICE OF BOARD
MEMBERS
P A U L A . VOLCKER,
Assistant to the Board
Assistant to the Board
STEVEN M . ROBERTS, Assistant to the Chairman
A N T H O N Y F . C O L E , Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
NAOMI P. SALUS, Special Assistant to the Board
HENRY C . WALLICH
J . C H A R L E S PARTEE
OFFICE OF STAFF DIRECTOR
MONETARY AND FINANCIAL
FOR
POLICY
JOSEPH R . C O Y N E ,
D O N A L D J. W I N N ,
Staff Director
Deputy Staff Director
STANLEY J. SIGEL, Assistant to the Board
NORMAND R . V . BERNARD, Special Assistant
STEPHEN H . AXILROD,
DONALD L . KOHN,
DIVISION
LEGAL
OF RESEARCH
AND
to the Board
STATISTICS
DIVISION
Director
Deputy Director
MICHAEL J. PRELL, Deputy
Director
JOSEPH S . ZEISEL, Deputy
Director
JARED J. E N Z L E R , Associate
Director
D A V I D E . L I N D S E Y , Associate
Director
ELEANOR J. STOCKWELL, Associate
Director
THOMAS D . SIMPSON, Deputy Associate
Director
L A W R E N C E SLIFMAN, Deputy Associate
Director
H E L M U T F . W E N D E L , Deputy Associate
Director
MARTHA BETHEA, Assistant
Director
ROBERT M . FISHER, Assistant
Director
D A V I D B . HUMPHREY, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
RICHARD D . PORTER, Assistant
Director
PETER A . TINSLEY, Assistant
Director
L E V O N H . G A R A B E D I A N , Assistant
Director
(Administration)
JAMES L . KICHLINE,
General Counsel
J. VIRGIL M A T T I N G L Y , JR., Deputy General Counsel
RICHARD M . ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI TIGERT, Assistant General Counsel
M A R Y E L L E N A . B R O W N , Assistant to the General Counsel
MICHAEL BRADFIELD,
OFFICE OF THE
SECRETARY
Secretary
Associate
Secretary
Associate
Secretary
WILLIAM W . WILES,
BARBARA R . L O W R E Y ,
JAMES M C A F E E ,
DIVISION OF CONSUMER
AND COMMUNITY
AFFAIRS
Director
Associate Director
G L E N N E . L O N E Y , Assistant
Director
DOLORES S . SMITH, Assistant
Director
EDWARD C . ETTIN,
GRIFFITH L . G A R W O O D ,
JERAULD C . K L U C K M A N ,
DIVISION
OF INTERNATIONAL
DIVISION OF BANKING
SUPERVISION AND
REGULATION
Director
Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate
Director
D A V I D H . H O W A R D , Deputy Associate
Director
ROBERT F . GEMMILL, Staff Adviser
PETER HOOPER III, Assistant
Director
K A R E N H . JOHNSON, Assistant
Director
RALPH W . SMITH, JR., Assistant
Director
EDWIN M . TRUMAN,
LARRY J. PROMISEL,
Director
Deputy Director'
FREDERICK R . D A H L , Associate
Director
D O N E . K L I N E , Associate
Director
FREDERICK M . STRUBLE, Associate
Director
HERBERT A . BIERN, Assistant
Director
A N T H O N Y C O R N Y N , Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
STEPHEN C . SCHEMERING, Assistant
Director
RICHARD SPILLENKOTHEN, Assistant
Director
SIDNEY M . SUSS A N , Assistant
Director
L A U R A M . HOMER, Securities Credit Officer
WILLIAM T A Y L O R ,
THOMAS E . CIMENO, JR.,
1. On loan from the Federal Reserve Bank of Boston.
FINANCE
A75
and Official Staff
M A R T H A R . SEGER
EMMETT J . RICE
DIVISION
OFFICE OF
STAFF DIRECTOR
FOR
OF INFORMATION
SERVICES
MANAGEMENT
Director
Assistant Director
J. MANASSERI, Assistant
Director
C . SCHNEIDER, JR., Assistant
Director
WILLIAM R . JONES,
Staff Director
E D W A R D T . MULRENIN, Assistant Staff Director
CHARLES L . HAMPTON, Senior Technical Adviser
PORTIA W . THOMPSON, Equal Employment
Opportunity
Programs Officer
S . D A V I D FROST,
STEPHEN R . MALPHRUS,
RICHARD
WILLIAM
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
DIVISION
OF
PERSONNEL
Staff Director
Adviser, Equal Employment
Opportunity Programs, Federal Reserve System
THEODORE E . ALLISON,
Director
JOHN R . WEIS, Assistant
Director
CHARLES W . W O O D , Assistant
Director
D A V I D L . SHANNON,
OFFICE OF THE
JOSEPH W . DANIELS, S R . ,
DIVISION OF FEDERAL
BANK
OPERATIONS
CONTROLLER
Controller
Assistant Controller
RESERVE
GEORGE E . LIVINGSTON,
C L Y D E H . FARNSWORTH, JR.,
BRENT L . B O W E N ,
ELLIOTT C . M C E N T E E ,
DIVISION
OF SUPPORT
SERVICES
Director
Associate Director
Assistant Director
ROBERT E . FRAZIER,
WALTER W . K R E I M A N N ,
GEORGE M . L O P E Z ,
OFFICE OF COMPUTING
SERVICES
ALLEN E . BEUTEL,
DIVISION
Executive
OF COMPUTING
AND
INFORMATION
Director
SERVICES
Director
Assistant Director
ELIZABETH B . RIGGS, Assistant
Director
ROBERT J. Z E M E L , Assistant
Director
BRUCE M . BEARDSLEY,
THOMAS C . JUDD,
Director
Associate Director
D A V I D L . ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate Director
WALTER A L T H A U S E N , Assistant
Director
CHARLES W . B E N N E T T , Assistant
Director
A N N E M . D E B E E R , Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G . HAMILTON, Assistant
Director
WILLIAM E . PASCOE III, Assistant
Director
FLORENCE M . Y O U N G , Adviser
A76
Federal Reserve Bulletin • January 1986
Federal Open Market Committee
FEDERAL OPEN MARKET
PAUL A . VOLCKER,
COMMITTEE
Chairman
E . GERALD CORRIGAN,
ROBERT P. BLACK
PRESTON MARTIN
MARTHA R . SEGER
ROBERT P. FORRESTAL
J. CHARLES PARTEE
HENRY C . WALLICH
SILAS KEEHN
EMMETT J. RICE
Associate Economist
Associate Economist
DONALD L . KOHN, Associate
Economist
DAVID E . LINDSEY, Associate
Economist
MICHAEL J. PRELL, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
SHEILA L . TSCHINKEL, Associate
Economist
STEPHEN H . AXILROD,
J. ALFRED BROADDUS,
NORMAND R . V . BERNARD,
RICHARD G . DAVIS,
Staff Director and Secretary
Assistant Secretary
NANCY M . STEELE, Deputy Assistant
Secretary
MICHAEL BRADFIELD, General Counsel
JAMES H . OLTMAN, Deputy General Counsel
JAMES L . KICHLINE, Economist
EDWIN M . TRUMAN, Economist
(International)
Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account
PETER D . STERNLIGHT,
SAM Y . CROSS,
FEDERAL ADVISORY
COUNCIL
LEWIS T . PRESTON, President
PHILIP F . SEARLE, Vice President
WILLIAM H . BOWEN AND N . BERNE HART,
Seventh District
Eighth District
LLOYD P. JOHNSON, Ninth District
N. BERNE HART, Tenth District
N A T S. ROGERS, Eleventh District
G . ROBERT TRUEX, JR., Twelfth District
HAL C . KUEHL,
First District
Second District
GEORGE A . BUTLER, Third District
JULIEN L . M C C A L L , Fourth District
JOHN G . MEDLIN, JR., Fifth District
PHILIP F. SEARLE, Sixth District
ROBERT L . N E W E L L ,
LEWIS
T.
WILLIAM H . BOWEN,
PRESTON,
Directors
Secretary
Associate Secretary
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK,
Vice Chairman
A77
and Advisory Councils
CONSUMER
ADVISORY
COUNCIL
TIMOTHY
D.
Honolulu, Hawaii
Centerville, Minnesota
E L V A QUUANO, San Antonio, Texas
BRENDA L. SCHNEIDER, Detroit, Michigan
PAULA A. SLIMAK, Cleveland, Ohio
GLENDA G . SLOANE, Washington, D.C.
HENRY J. SOMMER, Philadelphia, Pennsylvania
TED L. SPURLOCK, New York, New York
MEL STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
WINNIE F. TAYLOR, Gainesville, Florida
MICHAEL M. V A N BUSKIRK, Columbus, Ohio
MERVIN WINSTON, Minneapolis, Minnesota
MICHAEL ZOROYA, St. Louis, Missouri
LAWRENCE
Medford, Massachusetts
Washington, D.C.
JEAN A. CROCKETT, Philadelphia, Pennsylvania
THERESA FAITH CUMMINGS, Springfield, Illinois
STEVEN M. GEARY, Jefferson City, Missouri
RICHARD M. HALLIBURTON, Kansas City, Missouri
CHARLES C . HOLT, Austin, Texas
EDWARD N. L A N G E , Seattle, Washington
KENNETH V. LARKIN, Berkeley, California
FRED S. MCCHESNEY, Atlanta, Georgia
FREDERICK H . MILLER, Norman, Oklahoma
MARGARET M . MURPHY, Columbia, Maryland
ROBERT F . MURPHY, Detroit, Michigan
HELEN NELSON, Mill Valley, California
RACHEL
G.
Minneapolis, Minnesota, Chairman
New York, New York, Vice Chairman
MARRINAN,
THOMAS L . CLARK, JR.,
BRATT,
JOSEPH
JONATHAN BROWN,
THRIFT INSTITUTIONS
ADVISORY
L.
S.
OKINAGA,
PERKOWSKI,
COUNCIL
Miami, Florida, President
Angeles, California, Vice President
THOMAS R . BOMAR,
RICHARD
H.
DEIHL, LOS
ELLIOTT G . CARR, Harwich Port, Massachusetts
TODD COOKE, Philadelphia, Pennsylvania
J. MICHAEL CORNWALL, Dallas, Texas
JOHN A. HARDIN, Rock Hill, South
FRANCES LESNIESKI, East Lansing,
JOHN T. MORGAN, New York, New
M.
HAROLD W . GREENWOOD, JR.,
Minneapolis, Minnesota
MICHAEL R.
WISE,
SARAH R. WALLACE, Newark, Ohio
Denver, Colorado
Carolina
Michigan
York
A78
Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES,
Mail Stop 138, Board of Governors of the Federal Reserve
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THE ECONOMETRICS OF PRICE DETERMINATION
THE
FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY
FEDERAL
RESERVE
SYSTEM—PURPOSES
AND
FUNC-
TIONS. 1 9 8 4 . 1 2 0 p p .
A N N U A L REPORT.
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.
ANNUAL PERCENTAGE RATE TABLES (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $2.25; 10 or more of same volume to one
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UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one
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Monthly. $20.00 per year or
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BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint
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BANKING AND MONETARY STATISTICS. 1941-1970. 1976.
1,168 pp. $15.00.
THE BANK
ANNUAL STATISTICAL DIGEST
SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES:
FEDERAL RESERVE BULLETIN.
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1981.
1982.
1983.
1984.
1980. 305 pp. $10.00 per copy.
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1983. 266 pp. $ 7.50 per copy.
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THE FEDERAL RESERVE A C T , as amended through August 31,
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RIES OF CHARTS.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
HOLDING
COMPANY
MOVEMENT
TO
1978:
A
1978. 289 pp. $2.50 each; 10 or more to
one address, $2.25 each.
FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75
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INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each;
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A
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XIII AMERIMarch 1985.
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CLUB OF C A N A D A AND THE CANADIAN CLUB OF TO-
NISM.
RONTO, October 28, 1985.
A79
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies
available without charge.
1 3 2 . TIME-SERIES
Alice in Debitland
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
Fair Credit Billing
Federal Reserve Glossary
Guide to Federal Reserve Regulations
How to File A Consumer Credit Complaint,
If You Borrow To Buy Stock
If You Use A Credit Card
Instructional Materials of the Federal Reserve System
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
U.S. Currency
What Truth in Lending Means to You
1 3 3 . RELATIONSHIPS AMONG
TWEEN
STUDIES
EXCHANGE
OF
THE
RELATIONSHIP
RATES AND INTERVENTION:
BEA
REVIEW OF THE TECHNIQUES AND LITERATURE, b y
Kenneth Rogoff. October 1983. 15 pp.
EXCHANGE RATES,
INTER-
VENTION, AND INTEREST RATES: A N EMPIRICAL IN-
by Bonnie
1983. Out of print.
VESTIGATION,
E.
Loopesko. November
1 3 4 . SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
Ralph W. Tryon. October 1983. 14 pp.
1 3 5 . SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO C A N A D A , GERMA-
NY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp.
1 3 6 . THE EFFECTS OF FISCAL POLICY ON THE U . S . ECONO-
MY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
1 3 7 . THE IMPLICATIONS FOR BANK MERGER POLICY OF
BANKING,
FINANCIAL DEREGULATION, INTERSTATE
by Stephen A.
Rhoades. February 1984. Out of print.
AND
FINANCIAL
1 3 8 . ANTITRUST
SUPERMARKETS,
LAWS,
JUSTICE
DEPARTMENT
GUIDE-
LINES, AND THE LIMITS OF CONCENTRATION IN L O CAL BANKING MARKETS,
by James Burke. June 1984.
14 pp.
STAFF STUDIES: Summaries Only Printed in the
Bulletin
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
1 3 9 . SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
THE UNITED STATES,
1 4 0 . GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
by John
THE LITERATURE,
D.
Wolken. November
1984. 38 pp.
1 4 1 . A COMPARISON OF DIRECT DEPOSIT AND CHECK P A Y MENT COSTS,
Staff Studies 115-125 are out of print.
1 4 2 . MERGERS
1 1 4 . MULTIBANK
DENCE
ON
HOLDING
COMPANIES:
COMPETITION
AND
RECENT
PERFORMANCE
U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION:
JANUARY-MARCH
1975,
by Margaret
L.
A.
BY
COMMERCIAL
Rhoades. December
1 4 3 . COMPLIANCE COSTS AND CONSUMER BENEFITS OF
THE
ELECTRONIC
SURVEY EVIDENCE,
1 2 6 . DEFINITION AND MEASUREMENT OF EXCHANGE MARKET INTERVENTION, by Donald B . Adams and Dale
W. Henderson. August 1983. 5 pp.
ACQUISITIONS
by Stephen
1984. 30 pp.
IN
by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
AND
BANKS, 1960-83,
EVI-
BANKING MARKETS,
127.
by William Dudley. November 1984.
15 pp.
FUND
TRANSFER
ACT:
RECENT
by Frederick J. Schroeder. April
1985. 23 pp.
144.
SCALE ECONOMIES IN COMPLIANCE COSTS FOR CONSUMER CREDIT REGULATIONS: THE TRUTH IN LENDING AND EQUAL CREDIT OPPORTUNITY
LAWS,
by
U . S . EXPERIENCE WITH EXCHANGE MARKET INTER-
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
VENTION: SEPTEMBER 1977-DECEMBER 1979, b y M a r -
1 4 5 . SERVICE CHARGES AS A SOURCE OF BANK INCOME
Greene. August 1984. 16 pp.
128.
garet L. Greene. October 1984. 40 pp.
by Glenn
Canner and Robert D. Kurtz. August 1985. 31 pp.
AND THEIR IMPACT ON CONSUMERS,
1 2 9 . U . S . EXPERIENCE WITH EXCHANGE MARKET INTER-
B.
by Margaret
1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
1 3 0 . EFFECTS OF EXCHANGE R A T E VARIABILITY ON IN-
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84,
by Thomas F. Brady. November 1985. 25 pp.
VENTION: OCTOBER I98O-OCTOBER 1981,
L. Greene. August 1984. 36 pp.
TERNATIONAL TRADE AND OTHER ECONOMIC VARIA-
1 4 7 . REVISIONS IN THE MONETARY
SERVICES
(DIVISIA)
A REVIEW OF THE LITERATURE, by Victoria S.
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF
1 3 1 . CALCULATIONS OF PROFITABILITY FOR U . S . D O L L A R -
THE ECONOMIC RECOVERY T A X A C T : SOME SIMULA-
BLES:
DEUTSCHE
MARK
INTERVENTION,
Jacobson. October 1983. 8 pp.
by Laurence R.
by Helen
T. Farr and Deborah Johnson. December 1985. 42 pp.
INDEXES OF THE MONETARY AGGREGATES,
by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
TION RESULTS,
A80
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
The Commercial Paper Market since the Mid-Seventies. 6/82.
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
U.S. International Transactions in 1984. 5/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
A81
Index to Statistical Tables
References are to pages A3-A73 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 70-73
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates 24
Branch banks, 21, 55, 70-73
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 36
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 70
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 70
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Red estate mortgages held, by holder and property, 39
Time and savings deposits, 3
Commercial paper, 23, 24, 37
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 40, 41
Consumer prices, 44, 50
Consumption expenditures, 51, 52
Corporations
Nonfinancial, assets and liabilities, 36
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 26, 40 (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 7
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 39
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and
ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 5, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 38, 39
Federal Housing Administration, 33, 38, 39
Federal Land Banks, 39
Federal National Mortgage Association, 33, 38, 39
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation—insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 37
Business credit, 37
Loans, 40, 41
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 70-73
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
A82
GOLD
Certificate account, 10
Stock, 4, 54
Government National Mortgage Association, 33, 38, 39
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 40, 41
Insurance companies, 26, 30, 39
Interest rates
Bonds, 24
Consumer installment credit, 41
Federal Reserve Banks, 6
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 38
Prime rate, 23
Time and savings deposits, 8
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 39
Federal Reserve Banks, 10, 11
Financial institutions, 26, 39
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 70
Federal Reserve Banks, 4, 5, 6, 10, 11
Financial institutions, 26, 39
Insured or guaranteed by United States, 38, 39
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 5
Reserve requirements, 7
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, 8, 26, 39, 40 (See also Thrift
institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 9
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 39
Financial institutions, 26
Terms, yields, and activity, 38
Type of holder and property mortgaged, 39
Repurchase agreements, 5, 17, 19, 20, 21
Reserve requirements, 7
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 54
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 associations, 8, 26, 39, 40, 42 (See also
Thrift institutions)
Savings banks, 26
Savings deposits (See Time and savings deposits)
Securities (See specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 53, 54
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29 also Credit unions, Mutual
Thrift institutions, 3 (See
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21
Trade, foreign, 54
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 66
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 38, 39
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)
A83
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK, Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
George N. Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
NEW YORK*
10045
John Brademas
Clifton R. Wharton, Jr.
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
Vice President
in charge of branch
John T. Keane
PHILADELPHIA
19105
Robert M. Landis
Nevius M. Curtis
Edward G. Boehne
Richard L. Smoot
CLEVELAND*
44101
William H. Knoell
E. Mandell de Windt
Robert E. Boni
(t)
Karen N. Horn
William H. Hendricks
Leroy T. Canoles, Jr.
Robert A. Georgine
Robert L. Tate
Wallace J. Jorgenson
Robert P. Black
Jimmie R. Monhollon
John H. Weitnauer, Jr.
Bradley Currey, Jr.
A. G. Trammell
JoAnn Smith
Sue McCourt Cobb
Patsy R. Williams
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Robert J. Day
(t)
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
William C. Ballard, Jr.
J. Rives Neblett
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
(t)
Gary H. Stern
Thomas E. Gainor
Irvine O. Hockaday, Jr.
Robert G. Lueder
James E. Nielson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Robert D. Rogers
Bobby R. Inman
(t)
(t)
(t)
Robert H. Boykin
William H. Wallace
Alan C. Furth
Fred W. Andrew
Richard C. Seaver
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
John J/Balles
Richard T. Griffith
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30301
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Fred R. HenJames D. Hawkins
Patrick K. Barron
Jeffrey J. Wells
Henry H. Bourgaux
Roby L. Sloan
John F. Breen
James E. Conrad
Paul I. Black, Jr.
Robert F. McNellis
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Joel L. Koonce, Jr.
J.Z. Rowe
Thomas H. Robertson
Robert M. McGill
Angelo S. Carella
E. Ronald Liggett
Gerald R. Kelly
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, N e w Jersey 07016;
Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and
Milwaukee, Wisconsin 53202.
tOne deputy
for FRASER chairmanship and several branch chairmanships had not been determined at the time the BULLETIN went to press.
Digitized
A84
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 1984
MHi
^SSM1
ALASKA
M K K M
WMHI
MMflH
©
^ r x
YYP
LEGEND
Boundaries of Federal Reserve Districts
®
Federal R e s e r v e Bank Cities
Boundaries of Federal Reserve Branch
Territories
*
Federal R e s e r v e Branch Cities
Federal R e s e r v e Bank Facility
Q
Board of G o v e r n o r s of the Federal R e s e r v e
System
Publications of Interest
FEDERAL RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are
published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains conversion tables, citation indexes, and a
subject index.
The Monetary Policy and Reserve
Requirements
Handbook contains Regulations A, D, and Q plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions
Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB and
associated materials.
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