Full text of Federal Reserve Bulletin : January 1987
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VOLUME 7 3 •
NUMBER 1 •
JANUARY 1987
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost
• Griffith L. Garwood • James L. Kichline • Edwin M. Truman
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
L THE ECONOMIC EFFECTS OF
PROPOSED CEILINGS ON CREDIT
CARD INTEREST RATES
This article focuses on issues raised by the
proposed federal limits on credit card rates,
including the likely effects of such ceilings
on the availability of credit card services to
different groups of consumers.
14 TREAS UR Y AND FEDERAL RESER VE
FOREIGN EXCHANGE
OPERATIONS
After declining without interruption for
nearly a year and a half, the dollar steadied
during the period from August through October 1986.
20 STAFF
STUDIES
In " R e s p o n s e s to Deregulation: Retail Deposit Pricing from 1983 through 1985," the
authors examine pricing by commercial
banks and thrift institutions after the removal in October 1983 of interest rate ceilings on small time accounts.
22 INDUSTRIAL
PRODUCTION
Industrial production was unchanged overall in October.
24
ANNOUNCEMENTS
Proposed investment by Sumitomo Bank
deemed consistent with Bank Holding
Company Act.
Changes in amounts subject to reserve requirements.
Revisions to capital adequacy guidelines.
Fee schedules for 1987 announced for services provided by the Reserve Banks.
Tiered pricing structure approved for check
collection services.
N e w members appointed to Pricing Policy
Committee.
Standard format approved for Fedwire information.
Quarterly financial results available for
priced service operations.
Proposal to provide a redeposit service for
small checks that are returned for insufficient funds; proposal to charge fees for the
processing of applications and for supervision and general oversight of Edge Corporations; proposal to amend Regulation Z;
official staff
proposed
revisions
to
commentaries on Regulations B, E, and Z;
proposed list of factors to be considered in
consolidations of priced services across
state lines.
Publication of Industrial
Revision.
Errata in
BULLETIN
Production—1986
table.
Publication of Financial Futures
tions in the U.S.
Economy.
and
Op-
Changes in Board staff.
Admission of two state banks to membership in the Federal Reserve System.
31 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on September 23, 1986, the
Committee adopted a directive that called
for no change in the current degree of
pressure on reserve positions. The members expected this approach to policy implementation to be consistent with some
reduction in the growth of M2 and M3 to
annual rates of 7 to 9 percent over the fourmonth period from August to December.
Over the same interval, growth in M l was
expected to moderate from the exception-
ally large increase during the past several
months. Because the prospective behavior
of M l remained subject to unusual uncertainty, the Committee again decided not to
specify a rate of expected growth for this
aggregate in the operational paragraph of
the directive but to continue to evaluate M l
in the light of the performance of the broader aggregates and other factors. The members indicated that slightly greater reserve
restraint would, or slightly lesser restraint
might, be acceptable over the intermeeting
period depending on the behavior of the
monetary aggregates, taking into account
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. 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 4 to 8 percent.
37 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
A l FINANCIAL
AND B USIN ESS S TA TIS TICS
A3 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A76 BOARD OF GOVERNORS
AND
STAFF
A78 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A80 FEDERAL RESERVE
PUBLICATIONS
BOARD
A83 INDEX TO STATISTICAL
A85 FEDERAL RESERVE
AND OFFICES
TABLES
BANKS,
A86 MAP OF FEDERAL RESERVE
BRANCHES,
SYSTEM
The Economic Effects of Proposed Ceilings
on Credit Card Interest Rates
This article was prepared by Glenn B. Canner
and James T. Fergus of the Board's Division of
Research and Statistics. Patricia A.
Boerschig,
Julia A. Springer, and Janice S. Westfall provided research assistance. Footnotes appear at the
end of the article.
Most interest rates have fallen substantially since
the early 1980s, but those on credit card debt
have changed relatively little. This disparity has
led to assertions that credit card rates are excessive in view of the decline in funding costs of
card issuers. As a result, several bills were
considered in the Congress in 1986 that would
have imposed a nationwide rate ceiling on credit
card accounts.
This article focuses on issues raised by the
proposed federal limits on credit card rates,
including the likely effects of such ceilings on the
availability of credit card services to different
groups of consumers. It also explores the consequences, for consumers, of possible creditor
responses to rate ceilings such as modifying
nonrate prices of card services, altering other
terms on credit card accounts, and raising prices
on merchandise.
of two bills introduced in the House. Had either
Senate bill been in effect, the more restrictive
rate limit would have cut bank card rates during
most of the period, and in the absence of compensating changes, it also would have reduced
bank card revenues. Rates for retail store credit
cards generally have been in line with those of
bank cards, so the proposed federal ceilings
likely would have reduced revenue for retail
credit card plans. Both bank and retail store
credit card services and pricing probably would
have been altered in reaction to a large cut in
revenue. The scope of such adjustments depends
to a great extent on current and expected profits
on credit card services.
Historical
Profits
1. Characteristics of legislation considered in the
U . S . Senate in 1986 to impose a national ceiling
on credit card rates'
S.1603,
National Credit Card
Protection Act
S. 1922,
Credit Cafd Holder
Protection Act
Index
Six-month Treasury
bills, average
investment yield for
preceding calendar
year
IRS rate payable on
overdue income tax
payments and on
income tax refunds,
calculated by IRS
from prime rate
charged by
commercial banks
during an earlier sixmonth period
Markup
5 percentage points
above index rate
4 percentage points
above index rate
Current ceiling
13.085 percent for
all of 1986
14 percent for
January through
June 1986; 13
percent for July
through December
1986.
PROFITABILITY
PLANS
The nationwide ceilings on credit card rates
suggested in recent congressional proposals
would be more restrictive, on the whole, than the
various maximum credit card rates that already
exist in many states (table 1). A comparison of
typical rates charged on bank credit cards during
the 1972-86 period with the ceiling rates that
would have applied under either of two proposed
bills, S.1603 and S.1922, is presented in chart 1.
The Senate bills take an approach similar to that
on
The annual net earnings of bank card plans
before taxes averaged 1.9 percent of balances
outstanding from 1972 through 1985.1 Over the
Characteristic
EFFECTS ON THE
OF CREDIT CARD
Evidence
1. 99 Cong. 2 Sess.
2
Federal Reserve Bulletin • January 1987
1. A v e r a g e a c t u a l f i n a n c e rate o n b a n k credit card
p l a n s a n d m a x i m u m rates w i t h p r o p o s e d c e i l i n g s 1
Percent
2. N e t e a r n i n g s b e f o r e t a x e s o n v a r i o u s t y p e s
of bank credit1
Percentage of credit type outstanding
Commercial
other
1972
1976
ipiftlp
i t
1980
1984
1. Actual rate is an average of the most common rate charged on
bank credit card plans by commercial banks reporting to the Federal
Reserve.
same period, average net returns on other major
types of commercial bank lending were significantly higher: 2.3 percent on real estate mortgages, 2.4 percent on consumer installment debt,
and 2.8 percent on commercial and other loans.
Of course, there have been substantial year-toyear variations. For example, the average profitability of bank cards rose to 3.4 percent in 1984
and to 4.0 percent in 1985—a high for the 197285 period. However, before 1984 the profitability
of bank card plans often was low relative to that
of other major types of bank lending (chart 2).
Thus, the more reliable indicator of long-run
bank card profitability seems to be an average
derived from periods of low as well as high
profitability rather than from the atypical experience of recent years.
Annual data on earnings of retail card plans are
not available. However, two national surveys of
retailers were conducted on behalf of the National Retail Merchants Association in 1968 and 1985
and a study of retailers in New York State was
made in 1973. The studies indicate that on average—not considering profits on associated merchandise sales—such credit card plans consistently operated at a loss. 2
The unusually high level of bank credit card
profits in 1984 and 1985 is subject to differing
interpretations, and definite conclusions will require additional evidence. But the most likely
explanation involves a combination of favorable
economic trends and structural changes in credit
card regulation. Credit card profits clearly benefited from the drop in funding costs in recent
1. Based on annual data from the Federal Reserve's Functional
Cost Analysis.
years. Although such costs constitute a much
lower proportion of total costs for credit card
operations than for other major types of bank
lending, the sharp decline in market interest rates
has contributed significantly to the recent improvement in profits on credit card plans. In
addition, the relaxation or removal of regulatory
constraints on credit card interest rates in many
states in the early 1980s has helped increase
profits. These actions were taken after credit
card issuers experienced a severe squeeze on
profits in the 1979-81 period.
Another factor in the 1984-85 rise in bank card
profitability was the major improvement in the
quality of issuers' credit card portfolios following
the economic disruptions of the late seventies
and early eighties. Credit card issuers responded
to falling profits by adopting much more selective credit standards in an effort to control costs.
Also, many credit card accounts were terminated
because of delinquencies and payment defaults.
Because the remaining account holders were
relatively good credit risks, delinquencies fell to
a historically low level in early 1984. As credit
card issuers generally have returned to less restrictive credit standards and as some issuers
have undertaken aggressive marketing programs,
collection problems have increased again. But
such problems remained at low to moderate
levels throughout 1984 and early 1985.
It seems doubtful that the increase in profitability reflects diminished competition in the
credit card industry in light of the number and
variety of credit card issuers. Competing credit
The Economic Effects of Proposed Ceilings on Credit Card Rates
card plans within an area often include those
offered by several regional and national firms in
addition to those of local retailers and financial
institutions. The diversity of credit card pricing
schemes, the heavy volume of solicitations, and
the pace of entry by new competitors seem
inconsistent with a general absence of competition. Moreover, the rapid development of competing sources of revolving credit—such as lines
of credit secured by residential equity and overdraft credit lines on checking accounts—reinforces competitive pressures on the credit card
industry. These considerations suggest that the
recent high levels of bank card profits are unlikely to persist. Thus, longer-term profit experience
seems to provide a more reliable basis for evaluating the need for regulation of credit card rates.
In sum, the evidence suggests that profits on
credit card plans at banks typically have been
low, while those on retail credit plans generally
have been negative. Therefore, it seems unlikely
that card issuers could absorb significant reductions in revenue from finance charges over the
long term merely by accepting lower profits.
Estimates of
Profitability
under Proposed Rate
Ceilings
Estimates based on data from the Federal Reserve's Functional Cost Analysis for commercial
banks suggest the extent to which bank card
profits could be cut by the proposed nationwide
rate ceilings. Each of the lower lines in chart 3
shows an estimate of net earnings before taxes
on bank credit card plans as a percentage of
credit outstanding, assuming that one of the
nationwide rate ceilings proposed in S.1603 and
S.1922 had been in effect. The top line on the
chart shows the actual profit experience of commercial bank credit card lending, as previously
shown in chart 2. 3
According to these estimates, bank credit card
plans would have lost money in 10 of the 14 years
from 1972 through 1985 under the rate ceilings in
either S.1603 or S.1922 and would have earned
only marginal profits in two of the years. These
estimates suggest that if such rate ceilings were
enacted, the pressures to make cost and revenue
adjustments would be intense.
3
3. Net earnings before taxes on credit card plans and
estimated earnings under proposed rate ceilings 1
Percentage of credit type outstanding
1972
1976
1980
1984
1. Based on annual data from the Federal Reserve's Functional
Cost Analysis.
CREDIT CARD USE AND
REP A YMENT PA TTERNS
Some of the changes that credit card issuers
might make in response to reduced profitability
include cutbacks in the quantity and quality of
credit card services, increases in nonrate credit
card prices, and boosts in retail prices for some
types of merchandise. The ways such changes
affect consumers depend on two factors: the
prevalence and the manner of credit card use.
First, changes in the availability and pricing of
card-related services mainly affect consumers
who use credit cards—although, as explained
later, some indirect effects may be broader.
Second, the effect on credit card holders depends
on how they use their cards because some credit
card fees and charges apply only to consumers
who use their cards in particular ways—for example, to obtain cash advances or for long-term
borrowing. Accordingly, information about use
of credit cards by particular consumer groups is a
key to evaluating the impact of a nationwide
credit card rate ceiling.
Credit Card
Use
During the past two decades the Survey Research Center at the University of Michigan has
monitored the use of credit cards. The most
recent data are for 1983. Overall, 62 percent of all
4
Federal Reserve Bulletin • January 1987
2. Proportion of U . S . families with selected characteristics that use various types of credit cards,
selected years, 1970-83
Any credit card
Retail card
Bank card
Family characteristic
1970
1977
1983
1977
1983
1970
1977
1983
Family income (1982 dollars)
Less than 5,000
5,000-7,499
7,500-9,999
10,000-14,999
15,000-19,999
20,000-24,999
25,000-29.999
30,000-39,999
40,000-49,999
50,000 or more
15
19
19
31
46
56
62
72
76
82
21
24
27
41
56
66
72
78
87
91
18
29
33
49
64
71
78
87
88
95
15
19
22
31
47
53
59
68
76
79
14
25
26
40
55
62
67
76
81
83
2
3
2
7
12
15
21
25
31
38
8
4
7
15
26
31
41
53
58
73
4
12
19
26
36
40
49
63
70
80
Age of head (years)
Less than 25
25-34
35-44
45-54
55-64
65-74
75 or more
42
61
57
60
46
37
20
39
65
72
68
61
49
34
38
61
73
69
72
60
35
29
53
63
56
52
39
25
32
52
63
61
62
53
26
12
20
23
19
12
7
3
16
40
49
40
36
20
11
20
37
52
45
50
37
16
Education of head
0-8 grades
9-11 grades
High school diploma
Some college
College degree
25
40
58
59
82
30
45
62
70
89
30
46
62
71
90
24
39
52
59
73
25
38
55
62
77
5
10
18
20
34
13
21
32
41
69
14
25
36
48
70
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
84
86
69
69
61
43
33
83
86
75
73
64
45
37
72
67
51
59
51
42
24
69
77
64
65
55
38
29
31
30
16
21
22
10
7
59
63
45
39
34
18
16
62
67
49
49
37
24
27
50
60
62
50
54
16
35
40
1
Occupation of head
Professional or technical
Manager
Self-employed manager
Clerical or sales
Craftsman or foreman
Operative, laborer, or service worker
Farmer or farm manager
Ail families
families reported using credit cards in 1983 (table
2). Fifty-four percent used one or more retail
store cards, 40 percent at least one bank card,
and 26 percent at least one gasoline card.
Regardless of the type of credit card, use rises
sharply and continuously with family income and
with the level of education of the family head.
Retail store cards are the most widely used
type of credit card. Their use is significantly
more widespread than that of bank cards except
among families with incomes of at least $50,000
or which are headed by persons with a college
education. However, the use of bank cards has
been expanding rapidly in every family category
of income, age, education, and occupation—
more than doubling from 16 percent of all families in 1970 to 40 percent in 1983. By contrast,
the proportion of families that use retail cards has
increased much more slowly, from about 45
percent in 1971 (not shown) to 54 percent in 1983.
The more rapid growth in bank card use may
reflect to some extent a substitution of credit
card borrowing for other types of installment
credit that do not provide flexible repayment
terms. It may also reflect abandonment of proprietary credit card plans and 30-day credit programs by some gasoline companies and retail
merchants or acceptance of bank credit cards by
such firms in addition to the credit arrangements
they offer.
Repayment
Practices
Analyzing the effect on consumers of the proposed ceilings on credit card rates requires information about the use of the revolving debt feature available with bank and retail cards (an
option usually not available with gasoline or
travel and entertainment cards). Most revolving
credit plans do not charge interest if the card
holder pays the full amount billed before expira-
The Economic Effects of Proposed Ceilings on Credit Card Rates
5
2. Continued
Travel and
entertainment card
Gasoline card
Family characteristic
1970
1977
1983
1970
1977
Family income (1982 dollars)1
Less than 5,000
5,000-7,499
7,500-9,999
10,000-14,999
15,000-19,999
20,000-24,999
25,000-29,999
30,000-39,999
40,000-49,999
50,000 or more
7
9
11
18
28
33
42
50
57
68
9
8
11
16
24
30
32
41
54
67
3
6
14
16
19
22
31
40
43
61
1
3
2
4
8
7
12
10
13
34
*
*
»
1
1
2
2
3
10
12
31
2
2
2
5
6
10
13
14
17
Age of head (years)
Less than 25
25-34
35-44
45-54
55-64
65-74
75 or more
23
41
39
39
34
25
10
12
31
42
39
34
27
16
8
20
30
30
37
26
15
5
10
11
12
10
6
3
2
7
12
12
6
3
4
7
10
13
10
11
5
Education of head
0-8 grades
9-11 grades
High school diploma
Some college
College degree
14
23
36
42
68
12
18
29
37
63
8
16
19
30
53
3
4
9
15
22
1
2
4
12
21
1
2
4
11
27
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
56
54
48
34
29
16
18
43
44
40
30
23
12
18
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
14
22
19
7
3
1
4
19
25
19
11
4
1
1
34
32
26
9
7
9
Occupation of head
Professional or technical
Manager
Self-employed manager
Clerical or sales
Craftsman or foreman
Operative, laborer, or service worker
Farmer or farm manager
All families
1983
*
*Less than 0.5 percent,
n.a. Not available.
1. For each survey year, income is for the preceding calendar year.
SOURCE. George Katona, Lewis Mandell, and Jay Schmiedeskamp,
1970 Survey of Consumer Finances, University of Michigan, Institute
for Social Research, 1971; Thomas A. Durkin and Gregory E.
Elliehausen, 1977 Consumer Credit Survey, Board of Governors of the
Federal Reserve System, 1978; Robert B. Avery and others, 1983
Survey of Consumer Finances, Board of Governors of the Federal
Reserve System, forthcoming.
tion of a specified interest-free period called the
grace period. 4 (Cash advances typically earn
finance charges from the transaction date.) Thus,
unlike most other kinds of credit, the way the
credit card holder uses the account determines
whether the account produces any interest income for the card issuer and, if so, how much.
Consumer surveys indicate that credit card
users fall into two categories—convenience users and borrowers—according to their customary
repayment practice. Convenience users are
those who usually pay off their balance in full
during the grace period, thereby avoiding finance
charges; they use a credit card primarily for the
convenience it affords in conducting transactions. Borrowers are those who usually do not
pay off their balance in full during the grace
period, thereby incurring finance charges. Card
users may occasionally choose to deviate from
their usual repayment pattern: convenience users may repay a particularly large purchase in
installments; borrowers may sometimes repay
the outstanding balance completely.
Responses by consumers to questions about
their repayment practices have been consistent
over time. In 1983, as in 1977, about half of
families that used bank or retail credit cards
stated that they nearly always paid their bills in
full each month (table 3). Such consumers can be
considered convenience users. The remaining
families were about evenly divided between
those that sometimes paid their bills in full each
month and those that hardly ever repaid their
entire outstanding balance by the end of the
billing cycle.
Repayment patterns vary considerably accord-
6
Federal Reserve Bulletin • January 1987
3. Distribution of families with selected characteristics that use bank or retail credit cards,
by repayment practice, 1977 and 19831
Percent
Nearly
always pays
in full
Family characteristic
Sometimes
pays in full
Hardly ever
pays in full
1977
1983
1977
1983
1977
1983
Family income (1982 dollars)
Less than 5.000
5.000 7,499
7,500-9,999
10,000-14,999
15,000-19,999
20.000 24,999
25,000 29,999
30,000 39,999
40.000-49.999
50,000 or more
54
52
45
44
41
42
55
56
61
78
43
49
51
48
43
41
45
46
43
60
28
18
29
31
31
31
27
26
25
16
19
25
27
23
27
28
23
29
31
24
18
30
27
26
28
27
18
18
13
6
38
27
22
28
31
31
32
25
26
16
Age of head (years)
Less than 25
25 34
35-44
45-54
55-64
65-74
75 or more
38
43
41
47
60
77
85
39
37
35
46
54
76
76
33
33
31
29
24
13
15
28
29
33
27
24
12
12
29
25
27
24
16
10
*
33
34
32
27
21
12
12
Education of head
0 8 grades
9 11 grades
High school diploma
Some college
College degree
57
46
46
47
58
49
47
46
41
52
19
27
28
31
29
18
25
26
29
26
24
27
26
21
13
32
27
28
29
21
Occupation of head
Professional, technical
Manager
Self-employed manager
Clerical or sales
Craftsman or foreman
Operative, laborer, or service worker
Farmer or farm manager
57
53
65
48
46
40
68
50
50
60
44
44
40
74
30
32
16
30
28
28
24
27
28
24
26
29
25
12
13
15
19
21
26
32
8
23
21
16
30
28
35
14
49
47
28
26
23
27
2
All families that use bank or retail cards
*Less than 0.5 percent.
1. The 1977 survey covered 2,563 families, of whom 1,444 had bank
or store cards. The 1983 survey covered 3,824 families, of whom 2,087
had bank or store cards.
2. For each survey year, income is for the preceding calendar year.
SOURCE. Durkin and Elliehausen, 1977 Consumer Credit Survey;
Avery and others, 1983 Survey of Consumer Finances.
ing to the characteristics of consumers. For
example, convenience use rises sharply with the
age of the household head. Nevertheless, substantial proportions of families in each income
and education category reported that they nearly
always paid off their entire outstanding balance
in full each month.
of bank and retail credit card plans suggests that
card issuers would likely reduce costs and seek
more revenue from alternative sources under the
proposed nationwide interest rate ceilings. These
adjustments by issuers would erode some of the
benefits to borrowers and impose costs on other
consumers. Although specifying the responses
that card issuers might choose is difficult, there
are several likely possibilities (table 4).
POSSIBLE ADJUSTMENTS BY CARD
AND EFFECTS ON CONSUMERS
ISSUERS
Restricting
Those who stand to benefit from a nationwide
limit on credit card rates are credit card borrowers, who would incur lower finance charges.
However, as noted, the low average profitability
the Availability
of
Services
Perhaps the most obvious cost-cutting step that
credit card issuers might take is to tighten credit
standards so as to reduce collection costs and
The Economic Effects of Proposed Ceilings on Credit Card Rates
7
4. Proportion of selected groups of credit card holders affected by possible responses by bank and retail credit
card issuers to more restrictive interest rate ceilings'
Bank card holders
Retail card holders
Type of response
Availability adjustments
Tighten credit standards 2
Reduce or eliminate services 3
Pricing
Convenience users
Borrowers
Convenience users
Borrowers
Some
Some
Some
Some
Some
Some
Some
Some
adjustments4
Reduce or eliminate interest-free period
Alter method for calculating balance on which
finance charge is based
Increase retail price of merchandise
All
Some
All
Some
None
All
All
None
All
All
Increase merchant discount fee (to the extent
reflected in higher retail merchandise
prices)
Start charging, or increase, an annual fee
Charge a fee for each transaction
Charge a penalty fee for exceeding credit limit.
Charge a penalty fee for each late payment
Charge a fee for each cash advance
All
All
All
All
All
All
Few
All
All
Some
All
All
Few
All
All
None
None
Some
Some
Some
Some
Some
Some
Some
Some
Some
Charge explicitly for services previously
provided without charge 5
All
All
1. Convenience users typically pay off their balances during the
interest-free period, thus avoiding finance charges. Borrowers typically do not pay off their balances during the interest-free period and
therefore usually pay finance charges.
2. Tighter credit standards ordinarily would be implemented by
raising the minimum score necessary under a credit-scoring system to
qualify for a credit card or to obtain a higher credit limit. Factors that
have positive weights in most credit-scoring systems include an
applicant's income, assets, duration of residence and employment,
and previous credit record.
3. Financial institutions might curtail ancillary services that some
institutions provide free of charge. Severe losses on credit card
operations might cause some financial institutions to eliminate credit
card plans in favor of other types of lending. Some retailers might
eliminate in-house credit card plans in favor of accepting other credit
cards.
4. The ability of card issuers to make some of these adjustments
may be constrained by competition or by state law.
5. Financial institutions and retailers might institute fees for services such as processing credit card applications, replacing lost cards,
providing more than one credit card, and sending out each statement.
Retailers might begin charging for other services that previously had
been provided free of charge.
charge-offs. Such a change would affect mainly
applicants for new credit card accounts. However, holders of existing accounts could also be
affected by more stringent enforcement of credit
limits and by any increase in minimum payment
requirements.
Changes in the availability of credit would
have the greatest potential effect on "marginal"
card applicants, who meet the current minimum
requirements for holding a credit card account—
such as income level, employment tenure, duration of residency, and previous credit record—
but who would not qualify for credit if such
standards were stiffened considerably. Although
credit decisions are based on many criteria,
lower-income persons who apply for credit
cards—including recent entrants into the job
market and those with low levels of education
and skills—are likely to be affected more serious-
ly by tighter credit standards than those with
greater resources.
In addition, financial institutions might curtail
credit card enhancements that some of them
offer. Such features include protection programs
that indemnify credit card holders for charges
made with lost or stolen credit cards, discounts
on transportation and lodging, rebates on purchases billed to a credit card account, and provision of emergency cash to travelers. If the pressure on profits became severe, some institutions
might eliminate their card plans and redirect
resources into more profitable lines of business.
Retail firms might discontinue in-house plans,
with the result that customers would need to rely
instead on bank credit cards or other sources of
financing. Although elimination of credit card
operations is an extreme measure, some retailers
and financial institutions in the early 1980s did
8
Federal Reserve Bulletin • January 1987
curtail or discontinue credit card services in an
effort to stem losses.
Raising the Prices
or
Merchandise
of
Services
An alternative or complementary way of offsetting reduced interest income is to reprice credit
card services. One such change would be to
shorten or eliminate the grace period that credit
card issuers typically have allowed, although
such action would not be possible in states that
require a minimum grace period.
Regulations that reduce finance rates would
help many credit card borrowers, who would
incur smaller finance charges, but that benefit
would be offset by the additional finance charges
that many convenience users would pay because
of curtailments in grace periods. In addition,
those borrowers who sometimes make full payment and at such times avoid incurring finance
charges also would be adversely affected by a
cutback in grace periods.
As previously noted, a large proportion of
lower-income credit card users are convenience
users. Among card users with less than $10,000
in family income, 48 percent reported in 1983
that they customarily paid off their outstanding
balances each month. An additional 24 percent of
lower-income families reported sometimes paying their balances in full. Thus, even among
lower-income families, the overall effect of lower
rate ceilings combined with shorter grace periods
is not clear.
Furthermore, because a substantial proportion
of higher-income consumers are convenience
users, the net benefit of restricting credit card
interest rates also is unclear for them. However,
the balance of benefits and costs for the elderly is
likely to be negative if issuers shorten or eliminate grace periods on credit cards in response to
tighter credit card rate ceilings. Among families
headed by persons 65 years or older, convenience users of credit cards constituted threefourths of credit card users.
A second major type of repricing, available
only to retail credit card issuers, is to increase
merchandise prices in an attempt to offset all or
part of a reduction in finance charge revenue.
The feasibility of this response for particular
retail firms would depend mainly on the types of
merchandise sold because competition from
cash-only merchants might limit price increases
to goods that usually are purchased on credit. In
this case, only customers who pay in cash for
such merchandise would subsidize the cost of
providing credit services.
Although increases in merchandise prices can
be implemented only by retailers, some issuers
of bank credit cards might be able to effect an
indirect form of repricing by raising the fee they
charge merchants for processing credit card
sales. The fee, called the merchant discount, is
an operating cost to the retailer. Any increase in
these charges could be passed on in higher prices
of merchandise, including prices paid by customers who always pay in cash. However, competition with other card issuers, not only for processing credit card charges but also for other
merchant business such as demand deposits and
loans, could limit the ability of banks to increase
the merchant discount fee.
Other card-related fees could also be raised.
Seventy percent or more of commercial banks in
1985 charged an annual fee for MasterCard and
Visa accounts. 5 These annual fees could be increased to help generate higher revenue, and
additional institutions could implement such
fees. Changes of this kind would affect all card
holders.
A similarly pervasive effect would occur if a
fee for each transaction were charged by card
issuers. As of 1985 only about 3 percent of the
MasterCard and Visa issuers charged such fees. 6
With the exception of some gasoline company
credit card plans with enhancements, no retail
card issuers are known to be charging annual
fees or fees for each transaction. However, apart
from legal restrictions on fees that exist in a few
states, the main barriers to such a practice appear to be the force of competition and customary practice in the retail industry.
Some credit card issuers charge a fee when an
account balance exceeds the established credit
limit or when problems arise such as late payments or returned checks. Late charges were
levied in 1985 by 50 percent or more of commercial banks that issue MasterCard and Visa accounts. 7 By definition, convenience users typi-
The Economic
Effects of Proposed
cally do not make late payments. Also,
convenience users are less likely to exceed established credit limits because, again by definition, they ordinarily do not carry a balance
forward from one billing period to the next.
Therefore, an increase in the prevalence of such
fees or in their average amount resulting from
more stringent rate ceilings would have a greater
effect on borrowers.
In addition to the price increases previously
described, banks might institute or raise fees for
cash advances on credit cards. Banks and retailers might establish or increase fees for processing credit card applications, replacing lost cards,
providing additional cards for an account, and
issuing monthly statements. Retailers might start
charging separately for services that had been
provided without charge, such as gift wrapping,
delivery, and alterations. Pricing these services
seems likely to affect users of bank cards as well
as of retail cards and convenience users as well
as borrowers.
Unpredictability
of
Adjustments
For several reasons, adjustments in credit card
availability and pricing that would follow the
imposition of a restrictive nationwide rate ceiling
cannot be foreseen with precision. Card issuers
would be likely to adopt different policies depending on how they expected their customers to
respond, and additional shifts would occur once
those reactions became clear.
Adjustments in pricing and credit availability
would be subject to important constraints, including competition from other credit card issuers as well as regulations that limit pricing
changes in some states. A few credit card issuers
already have adapted to fairly stringent rate
ceilings at the state level, and might have little
additional adjustment to make. Issuers that operate under less restrictive state ceilings would
likely face greater pressures to make changes in
credit availability and pricing.
EVIDENCE OF THE EFFECTS OF CREDIT
CARD RATE RESTRICTIONS ON CONSUMERS
The preceding discussion described the potential
responses of card issuers to restrictive rate ceil-
Ceilings on Credit Card Rates
9
ings and the possible consequences of such actions for consumers. Several studies conducted
during the past two decades have addressed
these issues empirically, investigating creditor
responses to differing interest rate restrictions at
the state level and evaluating the effects of such
reactions on consumers. These research results
provide valuable historical evidence that suggests some likely consequences of a national
credit card rate ceiling.
Effects
on Credit
Availability
One major conclusion of the empirical studies is
that restrictive rate ceilings for consumer credit
are closely associated with tighter lending standards. Most studies have concluded that higher
rate ceilings are associated with lower rates of
consumer loan rejection or with a larger percentage of loan defaults. 8 These findings suggest that
lenders extend credit to a broader range of credit
applicants when the rate of interest allowed on
their consumer loan portfolios is higher. Therefore, creditors are likely to apply more accommodative credit standards when the price of
credit is determined by market forces, and to use
stiffer loan criteria when regulations hold rates
below market-determined levels. As noted, not
all consumers are affected equally by lower interest rate ceilings. Given the criteria that credit
card issuers usually employ for determining
creditworthiness, lower-income families and
families headed by younger persons would seem
to be among those most likely to be denied credit
as a result of such ceilings. 9
Effects
Credit
on Availability
Cards
of
Bank
A 1979 study by researchers at the Credit Research Center (CRC) at Purdue University is
particularly useful for examining the effects on
consumers of placing legal restrictions on credit
card rates. The CRC study surveyed consumers
and creditors in four states with different interest
rate ceilings. 10 One portion of the study focused
on consumer use of credit cards, including the
effects of rate ceilings. Three states—Illinois,
10
Federal Reserve Bulletin • January 1987
Louisiana, and Wisconsin—had relatively high
credit card rate ceilings; the fourth, Arkansas,
had an unusually low rate limit.
The CRC study found that the proportion of
consumers holding bank credit cards was substantially smaller in Arkansas than in the three
states with less restrictive interest rate ceilings.
Only 29 percent of the families in Arkansas held
bank credit cards (table 5). By contrast, 39
percent of families in the other three states held
such cards. These results suggest that more
restrictive rate ceilings were associated with
more limited availability of bank credit card
accounts.
Although this broad perspective on the effects
of controls on credit card rates is helpful, it does
not show whether specific consumer groups are
more likely than others to be affected by a
national ceiling on credit card rates. To examine
this issue more closely, bank credit card holding
was compared according to family income, age
of family head, and education for residents of
Arkansas and of the three other states (table 5).
In most categories, a significantly smaller proportion of families held bank credit cards in
Arkansas than in states with less restrictive
credit card rate ceilings.
Further analysis of the CRC survey data using
multivariate procedures suggests four main conclusions:" (1) In all four states, the probability
that a family held a bank credit card rose as
family income, age, and education of the family
head increased. (2) Lower- and lower-middle
income families in Arkansas, the state with the
most restrictive rate ceiling, were less likely to
hold bank cards than were equally endowed
families in the other states. (3) Higher-income
families in Arkansas were as likely to hold bank
credit cards as were higher-income families in
states with less restrictive rate ceilings. (4) Overall, families residing in Arkansas were significantly less likely to hold bank credit cards than
were families living in one of the three states with
less restrictive rate ceilings. In sum, these findings suggest that tight ceilings on credit card
interest rates are more likely to result in reduced
availability of bank credit card accounts for
lower- and lower-middle income families than for
higher-income families.
Furthermore, a study of the credit card market
in New York State supported the CRC evidence
5. Proportion of families with selected characteristics
that hold bank and retail credit cards in Arkansas
and three other states, 1979'
Percent
Family
characteristic
Holds bank
credit card
Holds retail
credit card
Arkansas
Other
states
Arkansas
Other
states
Family income
(dollars)2
Less than 6,000...
6,000-8,999
9,000-12,499
12,500-17,499 . . . .
17,500-19,999 . . . .
20,000-24,999 . . . .
25,000-29,999 . . . .
30,000 or more . . .
5
16
24
26
41
35
52
61
10
17
22
36
48
52
57
68
24
48
53
69
70
83
78
88
29
38
43
55
64
74
80
83
Age of head
Less than 25 ,
25-34
35-44
45-54
55-64
65-74
75 or more
10
30
37
40
30
21
17
19
42
53
47
42
28
15
38
60
70
71
67
53
40
35
63
70
69
59
48
34
Education of head
0-8 grades
9-11 grades
High school
diploma
Some college
College degree . . .
9
14
14
26
39
38
34
47
25
36
55
39
52
72
65
68
80
60
68
82
All families
29
39
61
58
1. The survey covered 3,572 persons. The four states in the study
and the number of respondents in each were Arkansas, 787; Wisconsin, 1,006; Illinois, 1,030; and Louisiana, 749. All surveys were
conducted in person between January 6 and June 12, 1979.
2. For calendar year 1978. The median income of U.S. families in
1978 was $15,000.
SOURCE. William C. Dunkelberg and others, "CRC 1979 Consumer
Financial Survey," Monograph 22 (Purdue University, Krannert
Graduate School of Management, Credit Research Center, 1981).
about the likely effects of credit card rate ceilings
on bank credit card availability. 12 As previously
discussed, increases in the minimum acceptable
point score needed to qualify for credit cards are
one way that card issuers might respond to the
imposition of more restrictive rate ceilings for
credit cards. In the New York study, the credit
scoring system of a large bank credit card issuer
and actual data for credit card account holders
were used to determine the percentage of credit
card applicants that would be rejected if credit
standards were tightened.
Table 6 shows the result of successive fivepoint increases in the minimum qualifying credit
score. Raising the minimum score from 19 points
to 24 points would have prevented about 2 percent of the bank card holders from obtaining the
credit cards they held. If the minimum qualifying
The Economic Effects of Proposed Ceilings on Credit Card Rates
11
6. B a n k c r e d i t c a r d h o l d e r s r e j e c t e d a f t e r s i m u l a t e d i n c r e a s e s in t h e m i n i m u m a c c e p t a b l e c r e d i t s c o r e , b y
selected s c o r e s and i n c o m e levels'
Percent
Income of rejected card holders (dollars)3
Increase in the minimum acceptable credit score 2
To 24
To 29
To 34
To 39
MEMO: Percent of total sample of card holders
All
card
holders
2
7
18
36
All
income
levels
Below
$7,500
Below
$10,000
Below
$15,000
100
100
100
100
89
50
30
19
89
58
55
42
100
82
77
68
100
89
91
87
100
9
17
42
68
Below
$20,000
1. Simulation uses the credit-scoring model of a large bank card
issuer and the characteristics of the actual holders of the issuer's
credit card.
2. Minimum acceptable credit score initially set at 19 points.
3. Income is for 1973. The median income of U.S. families in 1973
was $10,500.
SOURCE. Robert P. Shay and William C. Dunkelberg, "Retail Store
Credit Card Use in New York," Studies in Consumer Credit 4
(Columbia University, Graduate School of Business, 1975), p. 55.
credit score were raised further to 29 points, then
the proportion of card holders that would have
failed to qualify for credit cards would have
increased from 2 percent to about 7 percent.
As expected, the effect of credit rationing, as
simulated in this example, differs according to
income level. Eighty-nine percent of those rejected when the cutoff is set at 24 points have
incomes below $7,500, although that income
group accounts for only 9 percent of the card
holders. No rejected applicant earned more than
$15,000 (that is, as table 6 shows, 100 percent
had incomes below that level). At the 39-point
cutoff, 13 percent of rejected applicants earned
$20,000 or more. But even though the raising of
the minimum acceptable score adversely affects
some higher-income card holders, lower-income
card holders still bear the brunt of the decrease in
credit availability. When the minimum acceptable score is raised to 24 points, 16 percent of
those with incomes under $7,500 are rejected,
but only 2 percent of those under $20,000 (not
shown in the table). At a score of 39, the comparable proportions of rejections are 77 percent and
46 percent.
it sources would be available to consumers?
Analysis of the data collected in the CRC study
suggests that consumers in a constrained market
substitute sales credit, such as retail store cards,
for cash credit, such as bank credit cards.
The CRC study provides information on holdings of retail store cards as well as bank credit
cards in states with widely differing rate restrictions (table 5). Three-fifths of all families held
retail store cards in Arkansas, slightly higher
than the share that held such cards in the three
states with less restrictive interest rate ceilings.
In contrast, as already discussed, the fraction of
Arkansas families that held bank credit cards
was significantly smaller than the share of families with such cards living in the other states.
These findings are consistent with the expected effects of rate ceilings. Retailers in Arkansas
seem to have been able to maintain credit availability by compensating for lower finance charge
revenue with increases in some merchandise
prices according to comparisons of prices in
Arkansas with those in surrounding states where
rate ceilings were higher. 13 Major appliances
were found to cost about 3 to 8 percent more in
Arkansas—nearly 5 percent more on average—
than in neighboring states.
Further evidence that product prices might
rise if a federally mandated ceiling on credit card
rates were adopted is contained in the CRC
study. Bank credit card issuers in Arkansas were
found to charge retailers merchant discount fees
higher than those charged in the states with less
Effects on Availability
of Retail
Store
Credit Cards and on Product
Prices
If, as indicated, a federally mandated credit card
rate ceiling is likely to result in reduced access to
bank credit card accounts, what alternative cred
12
Federal Reserve Bulletin • January 1987
restrictive rate ceilings. As with other costs,
retailers would be expected to offset these higher
fees by increasing product prices. One consequence is that, by paying higher retail prices,
consumers who do not use credit cards might
subsidize the cost of providing credit card services. Because lower-income families, who have
limited access to credit, are heavily represented
in the group that purchases products exclusively
by using cash, a national credit card rate ceiling
might impinge more on this group of consumers
than on others. 14
Indeed, under nationwide rate ceilings there
might be greater scope for use of merchant
discount fees by banks to offset decreases in
revenues due to binding rate limitations. Historically, competition for merchant business by
banks that operated from states with high rate
ceilings, or with none, probably placed some
restraint on the ability of banks that operated
from states with low rate ceilings to raise merchant discount fees. However, imposition of a
nationwide rate ceiling probably would diminish
this type of competition. Banks operating from
states with relatively high rate limits might, under a lower nationwide ceiling, raise merchant
discount fees to offset any reduction in revenues.
In the absence of other significant differences, all
banks would then be under equal pressure to rely
on higher merchant discount fees as a revenue
source. If such fees increased, retailers would be
likely to compensate by raising some prices.
CONCLUSIONS
Under current patterns of credit card use, about
32 percent of all families incur credit card finance
charges and would benefit initially from a federally mandated reduction in credit card interest
rates. However, the record of credit card profitability since 1972 suggests that tight rate ceilings
such as those proposed in recent legislation
would create intense pressures for cost reduc-
tions and revenue increases, actions that seem
likely to erode some of the benefits to borrowers
and impose costs on other consumers.
Several possible responses by issuers to restrictive rate regulations can be foreseen, but it is
difficult to predict which ones would be pursued.
In an effort to cut expenses, card issuers could
tighten credit standards for new credit card applicants—an action that would especially affect
lower-income families, who typically have limited access to other sources of credit. Studies have
documented the occurrence of credit rationing in
response to tight rate regulation for credit cards
and more generally for other kinds of consumer
credit. Card issuers could also increase nonrate
prices for credit card services in order to offset
reduced finance charges. Some of these actions—such as initiating or increasing annual
fees, charges for each transaction, and levying
fees for particular services to account holders—
would impose costs on all credit card users. The
effects of other repricing measures, such as curtailing the grace period, would be concentrated
among convenience users, many of whom could
no longer avoid paying finance charges. Still
other changes in credit card pricing would fall
mainly on borrowers. Such actions include
charging penalty fees for late payments and for
exceeding credit limits.
Finally, some adverse consequences of a nationwide ceiling on credit card rates could be felt
even by those consumers who do not use credit
cards. Retailers might increase some merchandise prices—either to help offset reduced finance
charge revenue on retailer credit card plans or as
a result of higher merchant discount fees. Research evidence indicates that restrictive ceilings
on rates are associated with significantly higher
retail prices for some types of merchandise.
Higher retail prices could mean that customers
who usually pay in cash—including lower-income families who cannot obtain credit cards—
would subsidize buyers who use credit card
services.
•
The Economic Effects of Proposed Ceilings on Credit Card Rates
FOOTNOTES
1. "Functional Cost Analysis: 1985 Average Banks,"
Based on Data Furnished by Participating Banks in Twelve
Federal Reserve Districts (Federal Reserve Bank of New
York, n.d.) and the same document for each of the years
1972-84.
2. Retailers presumably would not continue to offer credit
cards unless the profits from additional merchandise sales
facilitated by credit card plans offset the losses on credit card
operations alone. National Retail Merchants Association,
"Economic Characteristics of Department Store Credit"
(1969), p. 53; National Retail Merchants Association, "Economic Characteristics of Retail Store Credit" (1986), p. 21;
Robert P. Shay and William C. Dunkelberg, "Retail Store
Credit Card Use in New York," Studies in Consumer Credit
4 (Columbia University, Graduate School of Business, 1975),
pp. 72-80.
3. The estimates were derived by assuming that lenders
would have continued to provide, and that credit card users
would have continued to use, exactly the same dollar
amounts of credit card services even though the lower rate
ceilings were in effect. If forced to operate under more
restrictive rate ceilings, bank credit card issuers undoubtedly
would take steps to boost revenues and cut costs. But the
purpose of these estimates is to show how much the rate
regulations would reduce profits, in the absence of any other
changes, in order to gauge the pressures on issuers of bank
credit cards to make offsetting adjustments.
4. In 1985 approximately 79 percent of commercial banks
responding to a survey allowed a grace period averaging
approximately 27 days. See American Bankers Association,
1986 Retail Bank Credit Report , table 120, p. 96.
5. American Bankers Association, 1986 Retail Bank Credit
Report , table 107, p. 89.
6. Ibid., table 112, p. 92.
7. Ibid.
8. Douglas F. Greer, "Rate Ceilings and Loan Turndowns," Journal of Finance , vol. 30 (December 1975), pp.
13
1376-83. Also, consumer survey data indicate that in a state
with a low interest rate ceiling (Arkansas), a higher proportion of consumers reported being rejected for consumer
credit compared with consumers residing in states with less
restrictive rate ceilings. See Richard Peterson and Gregory
Falls, "Impact of a Ten Percent Usury Ceiling: Empirical
Evidence," Working Paper 40 (Purdue University, Krannert
Graduate School of Management, Credit Research Center,
1981).
Robert P. Shay, "Factors Affecting Price, Volume and
Credit Risk in the Consumer Finance Industry," Journal of
Finance, vol. 25 (May 1970), pp. 503-15; Management Analysis Center, "A Study of Bank Credit Card Profitability for
Banks Operating in the States of California and Washington"
(Palo Alto, Calif., June 1, 1977), p. 73.
9. William C. Dunkelberg, "An Analysis of the Impact of
Rate Regulation in the Consumer Credit Industry," in National Commission on Consumer Finance: Technical Studies,
vol. 6, (Government Printing Office, 1973), pp. 17-20.
10. William C. Dunkelberg and others, "CRC 1979 Consumer Financial Survey," Monograph 22 (Purdue University,
Krannert Graduate School of Management, Credit Research
Center, 1981).
11. Glenn B. Canner and James T. Fergus, The Effects of
Proposed Credit Card Interest Rate Ceilings on Consumers
and Creditors, Staff Studies (Board of Governors of the
Federal Reserve System), forthcoming.
12. Shay and Dunkelberg, "Retail Store Credit Card Use
in New York," pp. 55-56.
13. The products most likely to be affected are those that
usually are purchased with credit cards—large durable goods
especially. See Gene C. Lynch, "Consumer Credit at Ten
Percent Simple: The Arkansas Case" (University of Arkansas, College of Business, 1969).
14. Of the families with incomes below $5,000 in 1982, 84
percent had no outstanding installment debt when interviewed in 1983. In contrast, only 53 percent of the families
with incomes above $50,000 had no installment debt. Robert
B. Avery and others, "Survey of Consumer Finances, 1983:
A S e c o n d R e p o r t , " FEDERAL RESERVE BULLETIN,
(December 1984), table 4, p. 860.
vol.
70
14
Treasury and Federal Reserve
Foreign Exchange Operations
This quarterly report, covering the period August
through October 1986, provides information on
Treasury and System foreign exchange
operations. It was prepared by Sam Y. Cross, Manager of Foreign Operations of the System Open
Market Account and Executive Vice President in
charge of the Foreign Group of the Federal
Reserve Bank of New York.'
After declining without interruption for nearly a
year and a half, the dollar steadied during the
period under review. Although the dollar continued to ease against most of the industrialized
countries' currencies through August, it moved
up subsequently to close the three-month period
mixed on balance. From August to October, it
appreciated against some currencies—6'/4 percent against the Japanese yen, 53/4 percent
against sterling, and Vh percent against the
Swiss franc. It declined, however, about 1 percent against the German mark and other currencies of the European Monetary System (EMS).
There were dollar purchases by foreign central
banks but no intervention by the U.S. authorities
during the period.
As the period opened early in August, the
dollar was declining. Market participants had
come increasingly to question whether the major
industrialized countries would be able to work
together to redress their large external imbalances. The huge trade deficit of the United States
and the enormous trade surpluses of Japan and
Germany had shown little adjustment, notwithstanding the considerable movements in exchange rates between the dollar and both the
1. The charts for the report are available on request from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
Japanese yen and the German mark. Moreover,
there was growing disappointment that the
sharp, $20-per-barrel drop in oil prices that occurred between November 1985 and July 1986
was failing to provide much of a boost to business activity in the oil-importing industrialized
countries. Doubts developed that our major trading partners were likely to expand domestic
demand vigorously enough to provide a global
environment within which the United States
could markedly improve its balance of payments
position. Market participants considered seriously the possibility that the U.S. authorities might
welcome a continued decline in the dollar on the
grounds that central banks abroad might then cut
interest rates in their countries more quickly.
Under these circumstances, market participants expected the trend toward lower interest
rates to continue, with the United States setting
the pace and other industrial countries perhaps
following later on. Although there were already a
few signs that the U.S. economy was regaining
some momentum from the slow first half of the
year, market participants still were struck by the
areas of weakness in U.S. economic performance. Output and investment remained sluggish, manufacturing employment continued to
decline, and retail sales were generally stagnant.
At the same time, prospects for price and wage
stability appeared to be good for the short term,
despite some concern about the longer-term inflationary implications of recent rapid monetary
growth.
In this environment, expectations resurfaced
from time to time throughout the first few weeks
of August that the Federal Reserve might again
cut its discount rate, perhaps operating unilaterally as it had done in July. As a result, in August
interest rates on deposits denominated in U.S.
dollars fell, and their decline was sharper than
the decline in interest rates in other currencies.
15
The Federal Reserve did cut its discount rate '/>
of 1 percentage point, to 5'/2 percent, elfective
August 21. The exchange market reaction was
muted, partly because many market participants
expected the authorities in Germany and Japan
to provide some further stimulus to their economies—either with monetary or other measures—
before the annual meetings of the International
Monetary Fund (IMF) and the World Bank at the
end of September.
Economic statistics released in mid-August
began to paint a contrasting picture between the
German and Japanese economies. The German
economy, which had contracted sharply early in
the year, seemed to be staging a robust recovery;
and official German projections of an acceleration in growth began to be given widespread
credence in the financial markets. Japan, on the
other hand, appeared to be having much more
difficulty adjusting to the appreciation of its
currency. Although both the mark and the yen
had risen about the same amount against the
dollar since early 1985, on a trade-weighted basis
the yen's appreciation had been much greater
than the appreciation of the mark. Whereas
German manufacturers lost little competitiveness in their markets in other EMS countries,
Japanese export industries were hit hard. They
lost competitiveness not only in the United
States but also in important East Asian markets.
With business statistics released in August showing continued stagnation in the Japanese manufacturing sector, market participants began to
question whether the yen should appreciate
much more.
In these circumstances, traders began to sense
around mid-August that the dollar had more
room to decline against the German mark and the
other currencies of continental Europe than
against the yen. When a large U.S. trade deficit
for July was announced at the end of August,
traders sold dollars aggressively against both
marks and Swiss francs. The dollar continued to
decline against the European currencies through
the end of August, even though it stabilized
against the yen.
By mid-September, there was further evidence
of improvement in the U.S. economic outlook.
Gains in employment during August were more
balanced, industrial activity was a little firmer,
and retail sales were more buoyant. These developments, together with confirmation of strong
growth for the German economy in the second
quarter, seemed to suggest that an atmosphere
supportive of renewed cooperation would surround the meetings of the Group of Five (G-5)
and Group of Seven (G-7) industrial countries in
Washington at the end of the month. With Japanese production for export declining, German
domestic demand replacing exports as the major
source of growth, and U.S. output appearing to
grow at a more satisfactory pace, the process of
adjustment appeared to be under way at long
last.
In response to these developments, foreign
exchange dealers concluded that the need for the
U.S. authorities to seek further exchange rate
adjustment had lessened, and the immediate
pressure on dollar exchange rates subsided. At
the same time, in the wake of repeated comments
by German officials, market participants became
reconciled to the view that the Bundesbank was
unlikely to ease monetary policy soon. As a
result, expectations of a further reduction of
interest rates faded—not only in Germany, but
also in the United States and other countries.
U.S. interest rates actually backed up somewhat.
As dollar exchange rates and interest rates both
started to move up, foreign exchange professionals began to cover sizable short dollar positions.
Bidding for dollars became intense, at times
exaggerated by rumors that unrealistically good
U.S. economic statistics were about to be released. By September 12, the dollar was swept
up to DM2.1030 to match its high early in the
three-month period.
After mid-September, the dollar showed little
trend. Market participants remained skeptical
that, over the longer term, the dollar had declined sufficiently to correct the U.S. balance of
payments deficit. But over the shorter term,
market participants perceived the dollar to be
consolidating its position around mid-September
rate levels. They were sensitive to any evidence
that U.S. and other monetary authorities would
be willing to support such a stabilization of
exchange rates. In this environment, they took
note of statements such as the one by Chairman
Volcker on September 24 that current exchange
rate relationships place our industry in a far
16
Federal Reserve Bulletin • January 1987
better competitive position than for some years.
Accordingly, the dollar fluctuated without clear
direction. But it was sometimes subject to abrupt
movements, especially against the mark in a
range of DM2.00 to DM2.08. These abrupt shifts
came in response to statements, actions, or rumors of actions thought to reflect official attitudes toward exchange rates.
The view that the dollar was entering a period
of greater stability was called into question several times between mid-September and mid-October. The first such occasion came in response
to statements that brought official attitudes about
exchange rates into question. Bundesbank President Poehl was reported to have said that the
Bundesbank would not cut its interest rates but
that Germany would accept a stronger mark as
its contribution to international economic adjustment. Subsequently, Treasury Secretary Baker
said that, although it was preferable not to rely
on exchange rate adjustments alone to reduce
trade imbalances, there would need to be further
exchange rate changes in the absence of additional measures to promote higher growth
abroad. In response, the dollar moved down
decisively, declining on September 19 to
DM1.9845 and ¥151.77, its low for the period
against the yen. But it soon recovered most of
this decline after a European Community (EC)
meeting of finance ministers and central bank
governors at Gleneagles, Scotland, the following
1. F e d e r a l R e s e r v e r e c i p r o c a l c u r r e n c y a r r a n g e m e n t s
Millions of dollars
Institution
Amount of
facility
October 31. 1986
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
250
1,000
2,000
250
3,000
2,000
6.000
3,000
5,000
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International Settlements:
Dollars against Swiss francs
Dollars against other authorized European
currencies
700
500
250
300
4,000
Total
600
1,250
30,100
day. Market participants interpreted statements
about that meeting as indicating that the EC
countries had agreed to use exchange market
intervention, if necessary, to protect the EMS
from strains that they felt were associated with
the decline in the dollar.
The next point of uncertainty occurred at the
end of September. The weekend G-5 and G-7
meetings in Washington ended without a specific
agreement, which some observers had been
looking for, that Germany and Japan would cut
interest rates in return for a U.S. commitment to
stabilize the dollar. Market participants, sensing
that no arrangement was in place to prevent a
resumption of the dollar's decline, moved to
reestablish short dollar positions. As a result, the
dollar declined sharply against the continental
European currencies throughout the first half of
October, hitting its low against the German mark
of DM1.9690 on October 17.
Meanwhile, the dollar had continued to trade
in a relatively narrow range against the Japanese
yen. In early September, news of a meeting
between Secretary of the Treasury Baker and
Japan's Finance Minister Miyazawa generated
some anticipation that an agreement on exchange
rates might be forthcoming. Later in September,
foreign investors, discouraged by the worsening
business climate in Japan, began to sell holdings
of shares on the Tokyo stock market. This outflow, combined with a growing pessimism about
the likelihood of a reduction in the Bank of
Japan's discount rate, contributed to a sharp
drop in the Tokyo stock market in the middle of
October. Japanese institutional investors, attempting to offset the resulting losses on their
yen equity portfolios before the end-October
reporting date, realized profits on their dollardenominated assets by unwinding hedges that
had been put in place when the dollar was much
higher. These various factors generated a demand for dollars throughout most of October and
reinforced sentiment that the dollar had reached
a near-term bottom against the Japanese currency.
Late in October evidence was accumulating
that the U.S. economy had strengthened significantly during the third quarter and that the U.S.
trade position had at least begun to stabilize. A
preliminary estimate showing that real GNP in-
Treasury and Federal Reserve Foreign Exchange
2. D r a w i n g s a n d r e p a y m e n t s b y f o r e i g n c e n t r a l
banks under regular reciprocal currency
arrangements'
Millions of dollars, drawings or repayments ( - )
Central bank
drawing on
the Federal
Reserve
System
Outstanding
as of
August
1, 1986
August
September
Bank of
Mexico...
0
210.2
-66.8
October
0
Outstanding
as of
October
31, 1986
143.4
1. Data are on a value-date basis.
creased 2.4 percent in the third quarter was
followed by a report that U.S. durable goods
orders had increased 4.9 percent in September.
Moreover, preliminary trade statistics for September indicated a second month of decline in
the U.S. trade deficit.
At the same time, market participants became
increasingly impressed with European officials'
apparent intention to buy dollars to resist depreciation of the U.S. currency and associated
strains on the EMS. There were several reports
of intervention by the Bundesbank and other
European central banks to buy dollars during
October. In addition, reported statements from
German officials that any further decline of the
dollar threatened economic growth in Europe
contributed to the perception that there might
also be a limit to the dollar's depreciation against
the continental currencies. Accordingly, when
the demand for dollars against the yen strengthened late in October, and the dollar began to firm
against that currency, it also firmed somewhat
against the European currencies.
As the period drew to a close, the dollar
received a final boost of support from the announcement of a Vi percentage point cut in the
Bank of Japan's discount rate and an economic
policy accord between U.S. Treasury Secretary
Baker and Japanese Finance Minister Miyazawa.
The accord outlined fiscal policy initiatives, including tax reform plans in Japan, and underscored the U.S. commitment to reducing the
budget deficit. The two countries judged the
exchange rate realignment achieved between
their currencies since September 1985 to be
broadly consistent with present underlying economic fundamentals, and they reaffirmed a will-
Operations
17
ingness to cooperate on exchange market issues.
Notwithstanding statements by Treasury officials that U.S. intervention policy had not
changed, some market participants interpreted
the accord to be a pact for concerted intervention
to support the dollar.
Thus the dollar continued to rise through the
end of October. This rise in dollar exchange rates
was led by an increase against the yen but was
accompanied by increases against other major
currencies. The increase in the dollar at the end
of the period left it higher on balance against
some currencies and limited its decline against
the German mark. On the trade-weighted basis
of the dollar exchange rate index of the Federal
Reserve Board, the dollar closed the period
l3/8 percent higher than at the end of July.
The pound sterling was the only currency
against which the dollar rose consistently during
the period under review. Some of sterling's decline was seen in foreign exchange markets as
reflecting the impact of weak oil prices on British
export revenues and government income. But
market participants were also concerned about
the direction of the government's overall monetary and fiscal policies, as well as about preelection political uncertainties. With the authorities
deciding formally to abandon monetary targets
as a policy tool, expectations strengthened that
the government might adopt an exchange rate
guide for policy instead. As a result, discussion
of sterling's joining the intervention arrangements of the EMS became even more widespread than before, both in the press and in
financial markets. But no new policy initiatives
along these lines emerged during the period
under review. By the end of October, sterling
had depreciated almost 6 percent against the
dollar and even more against the continental
European currencies.
During the period, the exchange rate mechanism of the EMS was at times subject to strain.
The Irish pound was caught between the decline
of sterling on the one hand and the rise of
continental currencies on the other. With Irish
exporters experiencing a loss of competitiveness
in the United Kingdom, Ireland's primary export
market, on August 2 the Irish authorities devalued the Irish pound 8 percent against the bilateral
central rates of the other EMS currencies.
18
Federal Reserve Bulletin • January 1987
3. D r a w i n g s a n d r e p a y m e n t s b y f o r e i g n central b a n k s u n d e r s p e c i a l s w a p a r r a n g e m e n t s w i t h the U . S .
Treasury1
Millions of dollars, drawings or repayments ( - )
Central bank drawing on the U.S. Treasury
Central Bank of Bolivia
Central Bank of Ecuador
Bank of Mexico
Central Bank of Nigeria
Amount of
Facility
Outstanding
as of
August 1,
1986
100.0
75.0
273.0
37.0
*
75.0
*
*
August
September
October
i
i
*
-75.0
211.0
*
0
*
-67.0
*
0
*
0
22.2
Outstanding
as of
October 31,
1986
0
*
144.0
22.2
1. Data are on a value-date basis.
*No facility
Later on, as the German mark appreciated
against the dollar, it also moved up against other
currencies. By late August the mark reached the
top of the narrow band, a position it held
throughout the remainder of the period. At times
during September and to a lesser extent during
October, the narrow band was fully stretched to
the 2'/4 percent intervention limit as the mark
benefited more than the others from the dollar's
decline. In response to these pressures, EC
finance ministers and central bank governors at
their Gleneagles meeting, agreed to try to stem
the rise of the member currencies against the
dollar, largely in an effort to preserve stability
within the EMS. By late October, tensions within the EMS joint float had subsided substantially.
At the beginning of the three-month period,
the only drawing outstanding on the credit arrangements of the U.S. monetary authorities was
$75 million drawn on May 16, 1986, by the
Central Bank of Ecuador against a $150 million
U.S. Treasury Exchange Stabilization Fund
(ESF) short-term swap facility. On August 14,
the swap arrangement was terminated pursuant
to the agreement.
In the period from July through October, the
U.S. monetary authorities provided short-term
bridging facilities to Bolivia, Nigeria, and Mexico.
The U.S. Treasury through the ESF on September 17 extended a $100 million financing
facility to the Central Bank of Bolivia. There
were no drawings made against this facility during the period under review.
The U.S. Treasury through the ESF agreed on
October 24 to provide a short-term facility of $37
million to the Central Bank of Nigeria as part of a
multilateral facility of $250 million organized
under the leadership of the Bank of England. On
October 31, a drawing of $22.2 million was made
on the U.S. portion.
On August 27 the U.S. monetary authorities
agreed jointly to a multilateral arrangement in the
amount of $1.1 billion with the Bank for International Settlements (acting for certain central
banks) and the central banks of Argentina, Brazil, Colombia, and Uruguay to provide a nearterm contingency support facility for Mexico's
international reserves. Drawings on the facility
were made available in light of agreement between Mexico and the IMF concerning a proposed standby arrangement, the expected receipt
by Mexico of disbursements under loans from
the International Bank for Reconstruction and
Development (IRBD), and the agreement by
Mexico to apply drawings from the IMF and
disbursements from the IBRD to the balances on
outstanding drawings on the facility. On August
29, $850 million was made available to Mexico.
On this date Mexico drew $211 million from the
Treasury through the ESF and $210.2 million
from the Federal Reserve through its regular
swap facility with the Bank of Mexico. On September 30, Mexico repaid $67 million to the ESF
and $66.8 million to the Federal Reserve.
4. N e t profits or l o s s e s ( - ) o n U . S . T r e a s u r y a n d
Federal R e s e r v e current foreign e x c h a n g e
operations
Millions of dollars
Period1
August 1, 1986October 31, 1986
Valuation profits and
losses on outstanding
assets and liabilities as
of October 31, 1986
1. Data are on a value-date basis.
Federal
Reserve
U.S. Treasury
Exchange
Stabilization
Fund
0
0
1,341.3
1,290.1
Treasury and Federal Reserve Foreign Exchange
During this period the Federal Reserve and the
ESF realized no profits or losses from exchange
transactions. As of October 31, cumulative bookkeeping or valuation gains on outstanding foreign
currency balances were $1,341.3 million for the
Federal Reserve and $1,290.1 million for the
Treasury's ESF. These valuation gains represent
the increase in the dollar value of outstanding
currency assets valued at end-of-period exchange rates, compared with the rates prevailing
at the time the foreign currencies were acquired.
The Federal Reserve and the ESF invest for-
Operations
19
eign currency balances acquired in the market as
a result of their foreign operations in a variety of
instruments that yield market-related rates of
return and that have a high degree of quality and
liquidity. Under the authority provided by the
Monetary Control Act of 1980, the Federal Reserve invested $2,868 million equivalent of its
foreign currency holdings in securities issued by
foreign governments as of October 31. In addition, the Treasury held the equivalent of $3,980.1
million in such securities as of the end of October.
•
20
Staff Studies
The staffs of the Board of Governors of the
Federal Reserve System and of the Federal
Reserve Banks undertake studies that cover a
wide range of economic and financial subjects.
From time to time the results of studies that are
of general interest to the professions
and to
others are summarized in the F E D E R A L R E S E R V E
BULLETIN.
The analyses and conclusions set forth are
those of the authors and do not
necessarily
STUDY
indicate concurrence by the Board of Governors,
by the Federal Reserve Banks, or by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the B U L L E T I N
are available without charge. The list of Federal
Reserve Board publications at the back of each
B U L L E T I N includes a separate
section
entitled
"Staff Studies" that lists the studies that are
currently
available.
SUMMARY
RESPONSES
TO DEREGULATION:
Patrick I. Mahoney,
Alice
Board of
Governors
RETAIL DEPOSIT PRICING FROM 1983 THROUGH
P. White,
Paul F. O'Brien,
and Mary
M.
1985
McLaughlin—Staff,
Prepared as a staff s t u d y in the spring o f 1986
The removal of interest rate restrictions on retail
time deposits in October 1983 gave commercial
banks and thrift institutions nearly complete
freedom to set offering rates on retail accounts.
This study examines the pricing of retail time
deposits and money market deposit accounts by
commercial banks and FSLIC-insured thrift institutions from October 1983 through December
1985 in the aggregate and for individual institutions. The appendix provides a history of the
regulation of deposit offering rates and a chronology of interest rate ceilings from 1933, when
ceilings on deposit offering rates were established, through April 1, 1986, when all remaining
ceilings were removed.
In general, depository institutions responded
to deregulation in a measured way, following
various pricing strategies. The most striking regularity in the data was that thrift institutions, in
the aggregate, consistently offered higher rates
on all accounts than did commercial banks; the
differences were greater on longer-term accounts. The differences in the average offering
rates between the two types of institutions on
time accounts usually exceeded the 25-basis
point differential that had been part of the Regulation Q interest rate structure just before deregulation. Over most of the period studied, the
average offering rates on most retail deposits at
both types of institutions were below interest
rates on market instruments of comparable maturity. Offering rates responded with varying lags
to changes in market interest rates, and the
difference between offering rates and market
interest rates varied considerably.
Data on deposit flows showed that a steeper
deposit yield curve enhanced flows into longerterm time deposits, demonstrating a role for
pricing in the determination of the maturity distribution of deposit inflows. Deregulation did
21
affect the liability structure of both sets of institutions, though not dramatically: commercial
banks increased the importance of retail deposits
at the expense of managed liabilities and transaction accounts, whereas thrift institutions increased their reliance on managed liabilities.
Offering rates of commercial banks and thrift
institutions differed state by state. Although the
average offering rates of thrift institutions generally exceeded those at commercial banks, analy-
sis of data for individual institutions revealed a
diversity of pricing strategies. Only in a few
cases did an institution pay the highest rate on a
deposit category for long, and no institution paid
the highest rate on all deposit categories at any
one time. In addition, individual institutions frequently adjusted their offering rates relative to
their competitors, a practice that suggests efforts
to explore depositor response to changes in
offering rates.
22
Industrial Production
Released for publication
November
average, total industrial output in October was
about VA percent higher than it was a year
earlier.
In market groups, output of consumer goods
declined 0.4 percent in October, largely reflecting a cutback in automotive products. Autos
were assembled at an annual rate of 7.3 million
units, down from a rate of 7.7 million in September; production of lightweight consumer trucks
14
Industrial production was unchanged overall in
October. Sharp reductions occurred in assemblies of motor vehicles, but there were increases
in the output of home goods, defense equipment,
and construction and business supplies—all of
which have posted better-than-average gains
over the past year. At 125.2 percent of the 1977
Ratio scale, 1977 = 100
140
—
MANUFACTURING
Nondurable
—\
-
^-y" 1
Durable
—
j
INTERMEDIATE PRODUCTS
Business supplies
-J
^
1
11 y
.—y
l
-
Construction supplies
—
_—
—
240
FINAL PRODUCTS
200
Defense and space
Business equipmen
/
1980
1982
1984
All series are seasonally adjusted. Latest figures: October.
1980
1982
1984
1986
23
1977 = 100
Percentage change from preceding month
1986
1986
Group
Sept.
Oct.
June
July
Aug.
Sept.
Oct
Percentage
change,
Oct. 1985
to Oct.
1986
Major market groups
Total industrial production
125.2
125.2
.0
.5
.1
.1
.0
1.3
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and s p a c e . . .
Intermediate p r o d u c t s . .
Construction supplies
Materials
133.8
132.9
125.1
117.0
128.1
139.7
182.4
137.2
124.8
113.5
133.8
132.7
124.6
115.1
128.1
139.6
183.6
137.7
125.2
113.5
.0
-.4
.1
.5
.0
-.9
.2
1.4
.5
.1
.6
.7
.6
1.7
.3
1.0
.7
.2
-.1
.4
.4
.4
-.1
-.7
.1
.9
.8
.4
.9
-.3
.1
.2
.0
1.3
-.4
.4
.8
-.5
-.2
.2
.0
-.1
-.4
-1.7
.0
.0
.7
.4
.3
.0
2.1
1.3
3.4
2.5
3.7
1.0
5.0
5.0
4.1
.1
.0
.1
-.1
-1.0
2.6
.0
-.2
.2
-.3
.9
2.5
.6
5.3
-10.6
.2
Major industry groups
Manufacturing.
Durable
Nondurable .
Mining
Utilities
129.5
127.6
132.2
95.8
111.1
129.5
127.4
132.4
95.6
112.1
.0
-.6
1.0
-.9
.1
.7
1.0
.4
-1.8
1.0
.3
.1
.5
-.3
-1.3
NOTE. Indexes are seasonally adjusted.
also was down sharply in October. Throughout
1986 assembly rates have fluctuated considerably, as auto makers have used output adjustments as well as periodic financial incentive
programs to control inventories.
Associated in part with the high levels of
housing activity, output of home goods rose
further. However, the output of nondurable consumer goods, which rose rapidly earlier in the
year, was unchanged during the month and remained at levels attained last spring. Production
of total business equipment was flat in October
following gains—concentrated in commercial
and transit equipment—in the preceding three
months. Output of defense and space equipment
continued to expand at the steady pace of recent
months, and production of supplies for construction and business also was up in October.
Continuing the pattern of most of 1986, output of
total materials was unchanged in October. Within
materials, significant growth has occurred in textiles, paper, and chemicals this year, while output
of many durable and energy materials such as
metals and crude oil has been depressed.
In industry groups, manufacturing output was
unchanged in October at a level 2.5 percent
higher than it was a year earlier. Durable manufacturing edged down during the month, but
nondurables increased somewhat. Mining output
edged down 0.3 percent further and was more
than 10 percent lower than it was a year earlier,
but production by utilities increased.
24
Announcements
PROPOSED
INVESTMENT
BY SUMITOMO BANK DEEMED
CONSISTENT
WITH BANK HOLDING COMPANY ACT
The Federal Reserve Board announced on November 19, 1986, that it had informed The Sumitomo Bank, Ltd., Osaka, Japan, that, with certain revisions, its proposed investment in
Goldman, Sachs & Co., New York, N e w York,
would be consistent with the Bank Holding Company Act. The Board reached this conclusion
only after Sumitomo agreed to a number of
changes to meet the Board's concerns about the
investment as it was originally structured.
The investment, as originally proposed, took
the form of a nonvoting $500 million limited
partnership interest and subordinated debt, as an
addition to an already existing subordinated debt
investment of $100 million in that company.
The Board had to determine, under the Bank
Holding Company Act, whether Sumitomo's role
would be passive and noncontrolling and would
not result in a situation in which Sumitomo had
the power to exercise a controlling influence
over the management or policies of Goldman, as
well as whether it would adversely affect the safe
and sound operation of banking organizations. In
making these judgements, the Board has adopted
policies and criteria for assessing particular proposed investments.
As relevant to the Sumitomo proposal, these
criteria include consideration of whether the
investment represents more than 25 percent of
the total shareholders' equity; whether it contains restrictions limiting the target's freedom of
action; whether it places the investor in the role
of entrepreneur in the organization, promotion,
or operation of the target firm; whether it results
in significant intercompany ties; whether it provides for interlocking directors or management
officials; or whether it allows for the extension of
credit on favorable terms.
The Board found the original proposal incon
sistent with these established policies and criteria. The points of inconsistency included the
following:
• The total investment, including limited partnership equity and subordinated debt, would
exceed 25 percent of Goldman's total equity.
• Sumitomo would have representation on the
boards of directors of the subsidiaries of Goldman in Tokyo and London, and the name of the
London subsidiary would reflect an affiliation
with Sumitomo.
• Sumitomo would have a 50 percent voting
interest in a London joint venture subsidiary and
12.5 percent in a Tokyo subsidiary.
• The investment was expected to result in an
increased business relationship between the
companies, at least in part through mutual referrals.
• Sumitomo employees could be transferred to
Goldman as trainees and could be used to solicit
business from Japanese companies.
Under this proposal business arrangements
between the parties would have been complex
and extensive. The Board was concerned that
this combination of a significant equity investment and the maintenance of extensive business
relationships would give the investor both the
economic incentive and means to exercise or
attempt to exercise a controlling influence over
the management or policies of the target company. An investment operated in this framework
cannot, as a practical matter, be expected to
remain wholly passive, but contains within it the
inherent potential—the power—for the exercise
of an important influence, including from time to
time a controlling influence, depending in part on
the relative business success of the parties to the
investment.
Aside from the control concerns expressed
above, the Board believes that the proposed
investment, even after compliance with the noncontrolling investment guidelines, has precedential implications for the Board's policies regard-
25
ing the capital adequacy of bank holding
companies and their obligation to serve as a
continuing source of strength to subsidiary
banks. The Board would expect that a U.S. bank
holding company seeking to make an investment
in such circumstances would be particularly
strongly capitalized. Such an investment could
not be given full weight in the evaluation of a
bank holding company's capital adequacy or its
continuing ability to serve as a source of financial
strength to its subsidiary banks. To remedy the
Board's concerns, Sumitomo has proposed the
following changes in its proposed investment in
Goldman, Sachs:
• Sumitomo's total investment in Goldman,
Sachs, which will include both Sumitomo's partnership interests and all Sumitomo's subordinated debt, will not exceed 24.9 percent of Goldman, Sachs total partners' capital.
• Sumitomo will not acquire any stock in, or
have any directors on the board of, any Goldman, Sachs affiliate, nor shall Sumitomo's name
be used by an affiliate of Goldman, Sachs or vice
versa.
• No present or former Sumitomo employees
will be trainees of Goldman, Sachs, although
Sumitomo reserves the right to seek relief from
this condition under terms acceptable to the
Board.
• Sumitomo and Goldman, Sachs will not increase the amount of business they currently do
with each other as a result of the investment.
Sumitomo will not solicit any business for Goldman, Sachs or vice versa. Nor will Sumitomo
introduce Goldman, Sachs to customers, or vice
versa, unless a customer specifically requests to
be introduced, and any such business introduced
at the request of customers will not exceed, in
any year, 2Vi percent of the consolidated gross
revenues of the recipient of the introduction.
• Existing normal business relationships will be
maintained on an arm's-length, nonexclusive basis, and there will be no advertising or marketing
of each other's services.
• Subject to necessary internal approvals and
as promptly as practical after the date of the
closing of its investment in Goldman, Sachs,
Sumitomo will enhance its capital position by an
amount that will substantially offset the funds
being invested in Goldman, Sachs.
• Sumitomo has reaffirmed its commitment that
it will waive any right to select general partners
under New York law and that the voting arrangements under the limited partnership agreement
will provide that Sumitomo will not have the
right to vote for or participate in the selection of
Goldman's general partners or other management officials or vote for or direct other policies
of Goldman.
The Board shall retain the authority to review
regularly the investment to determine whether,
under all the facts and circumstances, the investment is consistent with the requirements of no
controlling influence and safe and sound banking
practices. To address the possibility of a controlling influence developing in the future, the contract between Sumitomo and Goldman, Sachs
will provide that the investment shall be terminated and promptly repaid in the event that the
Board finds that Sumitomo has the power to
exercise a controlling influence over Goldman
unless the situation that resulted in such a finding
is eliminated.
These changes have been reviewed by the
Board, and the Board finds that the proposal, as
modified, is consistent with the requirements of
the Bank Holding Company Act.
The Board noted that considerable interest has
focused on the proposal, in part because of
perceived implications for administration of the
Glass-Steagall Act. However, the only issue
raised by the proposal concerns administration
of the Bank Holding Company Act and, in particular, determination of whether the proposed
transaction implies a controlling interest in a firm
engaged in activities not permitted under that
act, and its consequences for the capital strength
of the bank holding company parent. A truly
passive noncontrolling investment logically
should not raise any Glass-Steagall issues.
Similarly, some question has been raised over
whether U.S. banks would receive reciprocal
treatment in Japan. While the Board has a continuing interest in encouraging open markets and
fair treatment, this issue is also not relevant by
law to the Board's consideration of this case.
Under the policy of national treatment established by the Congress in the International Banking Act and the Bank Holding Company Act, the
Board's evaluation of the investment is limited to
26
Federal Reserve Bulletin • January 1987
the control question and to safety and soundness
concerns.
CHANGES IN AMOUNTS SUBJECT
TO RESERVE
REQUIREMENTS
The Federal Reserve Board announced an increase in the amount of net transaction accounts
to which the 3 percent reserve requirement will
apply in 1987 from $31.7 million to $36.7 million.
The Board also increased the amount of a depository institution's reservable liabilities that are
subject to a reserve requirement of 0 percent
from $2.6 million to $2.9 million of total reservable liabilities and increased the reporting cutoff
level distinguishing weekly reporters from quarterly reporters from $26.8 million to $28.6 million
of total deposits and other reservable liabilities.
These adjustments take effect beginning December 30, 1986.
The Board made the changes in accordance
with provisions of the Monetary Control Act.
The act requires the Board to amend its Regulation D (Reserve Requirements of Depository
Institutions) annually to increase the amount of
transaction accounts subject to a 3 percent reserve requirement. The annual adjustment must
be 80 percent of the annual percentage change in
transaction accounts held by all depository institutions. The growth in total net transaction accounts of all depository institutions from June
30, 1985, to June 30, 1986, was 19.6 percent. The
statutory rule thus requires an increase of $5.0
million over last year's amount to $36.7 million.
The Board is also required by the Garn-St
Germain Depository Institutions Act of 1982 to
amend Regulation D to adjust the amount of a
depository institution's total reservable liabilities
that are exempt from reserve requirements for
the upcoming year by 80 percent of any annual
percentage increase in total reservable liabilities
for all depository institutions. Growth in total
reservable liabilities was 13.6 percent from June
30, 1985, to June 30, 1986, requiring an increase
in the reserve requirement exemption to $2.9
million.
The Board is also increasing the reporting
cutoff level distinguishing weekly reporters from
quarterly reporters from $26.8 million to $28.6
million of total deposits and other reservable
liabilities. The cutoff level is indexed to 80 percent of the annual percentage increase in total
deposits and other reservable liabilities for all
depository institutions. The annual adjustment of
the cutoff level is computed as of June 30 of each
year. Institutions with total deposits and other
reservable liabilities below the reserve requirement exemption amount of $2.9 million are excused from reporting even on a quarterly basis if
their deposits can be estimated from other
sources.
REVISION TO
CAPITAL ADEQUACY
GUIDELINES
The Federal Reserve Board issued on November
4, 1986, revisions to its capital adequacy guidelines for bank holding companies that treat perpetual debt as primary capital and placed limits
on the amount of perpetual debt, perpetual preferred stock, and mandatory convertible securities that may qualify as primary capital. The
guidelines are effective immediately.
Capital adequacy is one of the critical factors
the Board is required to analyze in taking action
on various types of applications, such as mergers
and acquisitions by bank holding companies, and
in the conduct of the Board's various supervisory activities related to the safety and soundness
of the banking system.
Before perpetual debt can be treated as primary capital, it must meet the following criteria:
• The debt issue must be unsecured. If it is
issued by a bank, it must be subordinated to
claims of depositors.
• Repayment of the principal of the debt instrument will be limited to those situations involving
the issuer's insolvency, bankruptcy, or reorganization.
• Any voluntary redemption of the perpetual
debt securities must be approved by the Board.
• The debt instrument contract must give the
issuer the authority to choose to defer interest
payments if all dividends on common and preferred stock have been eliminated.
• Perpetual debt issued must convert to equity
when the issuer's retained earnings and surplus
become negative (or in the case of a guarantee,
Announcements
when the guarantor's earnings and surplus become negative).
The amount of perpetual debt, perpetual preferred stock, and mandatory convertible securities that will qualify as primary capital has been
limited to 33 xh percent of all primary capital
(stated on a gross rather than a net basis)—an
increase from the proposed 25 percent limit. In
addition, the Board has imposed a limit of 20
percent of all primary capital on mandatory
convertible securities and perpetual debt.
All securities exceeding the limits and issued,
or in the process of being issued, before November 20, 1985, will be grandfathered and given
primary capital treatment.
FEE SCHEDULES FOR SERVICES
BY FEDERAL RESERVE BANKS
PROVIDED
The Federal Reserve Board has announced the
1987 fee schedules for services provided by the
Reserve Banks. For the most part, the new fees
are the same as those for 1986.
The fee schedules apply to check collection,
automated clearinghouse, 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 on request from Publications Services,
Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
In 1987, total costs for priced services including the private sector adjustment factor are projected to be $622.3 million. Total revenue is
estimated at $634 million, resulting in a recovery
rate of 101.9 percent.
At the same time, the Board approved the 1987
private sector adjustment factor (PSAF) for Reserve Bank priced services of $70.9 million, an
increase of 4.1 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, 1987,
27
except for the automated clearinghouse fee
schedule, which is effective April 1, 1987.
TIERED PRICING STRUCTURE
APPROVED
FOR CHECK COLLECTION
SERVICES
The Federal Reserve Board announced approval
on November 25, 1986, of a proposal to permit
the head offices of the Federal Reserve Banks of
Minneapolis and Kansas City to use a tiered
pricing structure for check collection services on
a permanent basis.
Since November 1984, both Reserve Bank
head offices have been conducting a pilot program to test the feasibility of tiered pricing. The
current pilot program will be made a permanent
structure of their check collection services,
effective immediately.
A tiered pricing structure allows different fees
to be charged to sending institutions for check
presentment based on whether the payor institution wants the checks sent to a high- or a lowcost presentment point.
There is a significant difference between the
unit cost of clearing checks drawn on high- or
low-cost presentment points in some collection
zones. Tiered pricing more accurately reflects
Federal Reserve costs of processing. It also
allows financial institutions to make better decisions in choosing the most cost-effective method
of clearing checks.
Besides adopting the proposal, the Board also
established criteria under which tiered pricing
could be used for check collection services at
other Reserve Bank offices.
NEW MEMBERS
APPOINTED
TO PRICING POLICY COMMITTEE
The Federal Reserve Board announced the appointment of new members to its Pricing Policy
Committee (PPC), effective January 1, 1987. The
new members are Silas Keehn, President of the
Federal Reserve Bank of Chicago, and William
H. Wallace, First Vice President of the Federal
Reserve Bank of Dallas.
The Board also appointed Jack Guynn, First
Vice President of the Federal Reserve Bank of
28
Federal Reserve Bulletin • January 1987
Atlanta, as Executive Director of the PPC
through year-end 1988. He will replace Henry R.
Czerwinski, who will remain a member of the
committee.
The other members of the PPC include Governor Wayne D. Angell; Edward G. Boehne, President of the Philadelphia Reserve Bank; and
Theodore E. Allison, Staff Director for the
Board's Office of Federal Reserve Bank Activities.
. The committee reviews and determines—subject to approval by the Board—all fee schedules
for priced services offered by Federal Reserve
Banks to depository institutions.
STANDARD FORMAT APPROVED
FOR FEDWIRE
INFORMATION
The Federal Reserve Board announced its approval on November 24, 1986, of a proposal to
require a standard format for third-party payment information over Fedwire, effective April
3, 1989.
A 25-cent surcharge will be imposed on Fedwire fund transfers that do not meet the standard
format beginning April 1, 1988. Beginning April
3, 1989, messages that do not conform to the new
format will not be accepted for transmittal.
QUARTERLY FINANCIAL
AVAILABLE FOR PRICED
OPERATIONS
RESULTS
SERVICE
The Federal Reserve Board has reported financial results of Federal Reserve priced service
operations for the quarter ending September 30,
1986.
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.
PROPOSED
ACTIONS
The Federal Reserve Board has issued for public
comment a proposal to provide a redeposit service for small checks that are returned because
of insufficient or uncollected funds. Comments
should be received by December 18.
The Federal Reserve Board also issued for
public comment a proposal to charge fees for the
processing of applications and for the supervision and general oversight of Edge corporations.
Comments should be received by January 5.
A proposal to amend Regulation Z (Truth in
Lending) to require that more information be
disclosed to consumers regarding adjustable rate
mortgages (ARMs) before loan application and at
adjustment dates has also been issued for public
comment. Comments are requested by January
20, 1987.
The Board issued for public comment on November 28, 1986, proposed revisions to the official staff commentaries for three of its consumer
credit protection regulations—Regulation B
(Equal Credit Opportunity), Regulation E (Electronic Fund Transfers), and Regulation Z (Truth
in Lending). Comments must be received by
January 30, 1987.
The Board also issued for comment on November 28, 1986, a list of factors to be considered
when Reserve Banks propose to consolidate a
priced service across District lines. Comments
are requested by January 28, 1987. The Board
approved consolidation of the municipal bond
and coupon collection activities of the Federal
Reserve Bank of San Francisco at the Minneapolis Reserve Bank.
NEW PUBLICATION:
INDUSTRIAL PRODUCTION—1986 EDITION
Industrial Production—1986 Edition is now available. It contains a summary of the major revision
of the industrial production index published in
1985; a description of the methods used to construct the index and of its historical development
from 1919; a listing of the sources and coverage
of the index series; and statistical tables providing historical data through 1985 for the total
index, its major subaggregates, and its main
components.
To obtain copies of Industrial
Production—
1986 Edition, write to Publications Services,
Board of Governors of the Federal Reserve
System, Washington, D.C. 20551. The price is
$9.00 per copy.
Announcements
29
2. Change in claims of B I S reporting banks on country groups, unadjusted and adjusted
for e x c h a n g e rate c h a n g e s
Billions of dollars; - = decrease
1981-82
1983-84
1985
Country group
Non-OPEC developing countries
OPEC countries
Eastern Europe 1
G-10 countries, smaller developed countries,
and offshore banking centers 2
Unallocated
All countries
Unadjusted
Adjusted
Unadjusted
Adjusted
Unadjusted
Adjusted
53.8
8.6
-6.6
59.7
12.4
.1
14.2
3.5
-8.1
22.3
7.8
1.8
21.4
4.7
12.3
11.3
.2
5.6
295.0
8.1
352.7
15.5
112.0
-1.6
193.0
4.5
321.1
9.0
219.8
3.8
358.9
440.4
120.0
229.4
368.5
240.7
1. Excludes Yugoslavia, which is included here among the smaller
developed countries.
2. These areas were grouped together because the BIS changed the
country composition of the reporting area in these years and because
it adjusted the data for changes in exchange rates partly on the basis of
the definition of that area.
ERRATA: BULLETIN TABLE
To obtain copies of Financial Futures and
Options in the U.S. Economy, write to Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
The price is $10 per copy.
In table 2, " C h a n g e in claims of BIS reporting
banks on country groups, unadjusted and adjuste d , " which appeared on page 686 of the October
1986 B U L L E T I N , the column headings, "unadj u s t e d " and " a d j u s t e d , " were transposed for
each entry and time period. The corrected table
appears above.
NEW PUBLICATION: FINANCIAL FUTURES
AND OPTIONS IN THE U . S . ECONOMY
The 11 papers in Financial Futures and Options
in the U.S. Economy, prepared by the staff of the
Federal Reserve System and edited by Myron L.
Kwast, address a broad range of public policy
concerns raised by the invention and rapid
growth of financial futures and options. The main
issues addressed are (1) What are the economic
purposes served by the markets in financial
futures and options? (2) Do financial futures and
options increase the price volatility of cash markets? (3) What are the effects of financial futures
and options markets on the formation and distribution of real capital? (4) Can financial futures
and options markets interfere with the conduct of
monetary policy?
The papers, revised since their preparation in
connection with a 1985 report to the Congress,
are preceded by an overview summarizing them
and putting them in the context of a broader,
nontechnical discussion.
CHANGES IN BOARD
STAFF
The Board of Governors announced the appointment of Donald B. Adams as Assistant Director
in the Division of International Finance, effective
November 7, 1986.
The Board has also announced the following
official staff actions in the Division of Research
and Statistics, effective November 24, 1986:
Appointment of Martha S. Scanlon as Assistant Director.
Appointment of Joyce K. Zickler as Assistant
Director.
Promotion of Martha C. Bethea, Assistant
Director, to Deputy Associate Director.
Promotion of Peter A. Tinsley, Assistant Director, to Deputy Associate Director.
Mr. Adams joined the Board's staff in January
1974 and has been Chief for the Administration
and Statistical and Data Management Sections.
Mr. Adams has an M.B.A. in finance from
Harvard University and has done graduate studies in economics at Columbia University.
Ms. Scanlon joined the Board's staff in August
1972 as an economist and was promoted to Chief
of the Capital Markets Section in March 1983.
30
Federal Reserve Bulletin • January 1987
Ms. Scanlon has done graduate studies in economics at the University of Wisconsin.
Ms. Zickler came to the Board in September
1975 as an economist and became Chief of the
Economic Activity Section in October 1984. Ms.
Zickler has a Ph.D. in economics from the
George Washington University.
SYSTEM MEMBERSHIP:
OF STATE BANKS
ADMISSION
The following banks were admitted to membership in the Federal Reserve System during the
period November 1 through November 30, 1986:
Michigan
Ludington
Niles
Old Kent Bank of Ludington
Old Kent Bank Southwest
31
Record of Policy Actions of the
Federal Open Market Committee
MEETING HELD ON SEPTEMBER 23,
Domestic
Policy
1986
Directive
The information reviewed at this meeting suggested a moderate pickup in economic growth
from the slow pace in the second quarter. Payroll
employment expanded further in August with
gains widespread by industry. Consumer spending has continued to increase at a relatively rapid
pace, and construction of single-family homes
has remained at a high level. Business capital
spending, however, has been sluggish, particularly for new structures. Wages rates have continued to increase slowly in recent months, while
producer and consumer prices have tended to
firm, reflecting developments in food and energy
markets.
Total nonfarm payroll employment continued
to expand in August, rising about lA million
further after adjusting for strike activity, somewhat faster than the average gain so far this year.
Hiring at service establishments accounted for
two-thirds of the increase, but construction employment also was up substantially, and manufacturing employment rose for the first time since
January. The civilian unemployment rate edged
down again in August to 6.8 percent, nearly Vi
percentage point below the second-quarter average.
After declining on balance over the first half of
the year, industrial production has picked up
recently. According to revised data, output was
flat in June and rose 0.3 percent in July, rather
than declining in both months as previously
reported. In August industrial production edged
up 0.1 percent. Gains in output in July and
August were particularly large for defense and
space equipment. Production of business equipment, consumer goods, and construction supplies also registered strong increases. Capacity
utilization in manufacturing, mining, and utilities
fell 0.1 percentage point in August to 79 percent,
about the same as the rate in the preceding three
months but 1.6 percentage points below a year
ago.
Retail sales rose 0.8 percent in August, after a
July increase of 0.3 percent. Sales in the automotive group strengthened noticeably in response to
incentive plans offered at the end of the month by
domestic auto producers. Total car sales rose to
an annual rate of 12.2 million units in August,
compared with 10.9 million units in July. In the
early part of September, sales of domestically
produced autos soared to an annual rate of 17
million units. Outlays for durable goods other
than autos, which were strong earlier in the year,
dropped back in August, but sales at general
merchandisers posted another large gain.
Residential construction activity remained relatively high through the summer. Housing starts
totaled 1.8 million units at an annual rate in July
and August. Single-family starts remained close
to the vigorous pace of the first half of the year,
while multifamily starts were appreciably below
their average level in that period. In July sales of
new homes dropped below the extraordinary
levels recorded earlier in the year, but sales of
existing homes remained at about the advanced
pace of the second quarter.
Business capital spending has remained sluggish, reflecting continued weakness in nonresidential construction. Although the contraction in
oil and gas-well drilling appears to be subsiding,
the downtrend in commercial and industrial
building has continued partly because of high
vacancy rates and the impact of the tax reform
legislation. The value of nonresidential construction put in place fell in July for the fifth time in
six months. Business outlays for equipment,
however, have expanded somewhat in recent
months; shipments of nondefense capital goods
in August were VA percent above the secondquarter average. N e w orders fell in August,
32
Federal Reserve Bulletin • January 1987
partially reversing gains in the previous two
months, largely because orders for aircraft and
parts dropped. Bookings for office and computing equipment, however, have rebounded from
their level earlier this year.
Wage rates have continued to rise moderately
over the past few months, while producer and
consumer prices have firmed somewhat on balance due to developments in food and energy
markets. Prices other than those for food and
energy, however, have risen at about the same
pace as earlier in the year. In August, the producer price index advanced 0.3 percent, after
changing little on balance over the previous three
months and declining sharply earlier in the year.
The consumer price index increased 0.2 percent
in August. The index had risen on balance in
other recent months after falling somewhat during the first four months of the year. In the
commodity markets, spot prices for precious
metals rose sharply during August, reflecting
supply disruptions and, perhaps, renewed inflationary expectations. The latter appeared to be
associated in part with oil price developments
and the lower foreign exchange value of the
dollar. Lumber prices also rose significantly during August.
The trade-weighted value of the dollar against
major foreign currencies had changed very little
on balance since the August 19 meeting of the
Committee, although it fluctuated over a fairly
wide range. Exchange rates appeared to be affected mainly by news about prospects for economic activity in the United States and abroad.
Germany and Japan did not follow the Federal
Reserve's reduction in the discount rate, and
short-term interest rates abroad were little
changed while money market rates in the United
States were somewhat lower. At the same time,
long-term rates in the United States moved up
sharply relative to comparable foreign interest
rates. Preliminary data for the U.S. merchandise
trade deficit in July indicated a substantially
larger deficit than on average in the first half of
the year as non-oil imports surged. Real economic growth appeared to have picked up on balance
in the foreign industrial countries during the
second quarter after a weak performance in the
first quarter.
At its meeting in August, the Committee
adopted a directive that called for decreasing
slightly the existing degree of pressure on reserve positions, taking account of the possibility
of a change in the discount rate. The members
expected such an approach to policy to be consistent with growth in M2 and M3 over the period
from June to September at annual rates of about
7 to 9 percent. Over the same period growth in
M l was expected to moderate from the rapid
pace during the second quarter. The Committee
agreed that it would continue to evaluate growth
of M l in light of the expansion of the broader
aggregates and other factors. The members also
decided that somewhat greater or lesser reserve
restraint might be acceptable depending on the
behavior of the aggregates, 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 maintained at 4 to 8 percent.
The discount rate was reduced x/i percentage
point shortly after the August meeting. In the
two complete reserve maintenance periods ending after the meeting, adjustment plus seasonal
borrowing at the discount window averaged
close to $460 million, somewhat higher than in
the previous intermeeting period. In the first
week of the current maintenance period, borrowing dropped back to about $280 million.
Growth in the broader monetary aggregates
slowed in August; M2 and M3 grew at annual
rates of about 103/4 percent and 8V2 percent,
respectively. In August, both aggregates were
close to the upper limits of their longer-run
ranges. In contrast to the broader aggregates,
growth in M l accelerated, but it appeared to
have slowed considerably in the early weeks of
September.
Federal funds generally have traded around
5% percent since the reduction in the discount
rate shortly after the August 19 meeting of the
Committee. Other short-term interest rates fell
about 30 basis points following the discount rate
cut. Longer-term bond yields changed little immediately after the discount rate action but have
increased noticeably in recent weeks, with rates
on Treasury securities rising as much as 60 basis
points. The recent behavior of long-term rates
apparently has reflected, at least in part, some
concerns by market participants about whether
inflationary pressures could develop in the con-
Record of Policy Actions of the FOMC
text of some strengthening in economic activity,
the declining dollar, firmer oil prices, and rapid
monetary growth in the United States and
abroad.
The staff projections presented at this meeting
suggested that growth in real GNP likely would
pick up a bit further in coming months. Growth
was forecast to continue at a moderate pace in
1987. Through 1987, the key element supporting
expansion in domestic production was a projected improvement in the U.S. trade position.
Growth in domestic spending was forecast to
slow over the next several quarters. The staff
outlook for inflation indicated a limited increase
from the current pace due to some firming in
world oil prices and the effects of the dollar's
depreciation. The civilian unemployment rate
was expected to decline slightly over the projection horizon.
In the Committee's discussion of the economic
situation and outlook, the members expressed
general agreement with the staff projection that
moderate growth through the forecast horizon
was the most likely outcome. However, the
outlook remained subject to substantial uncertainties relating to both domestic and international factors. On the favorable side, consumer
spending and construction of single-family housing remained elements of strength in the domestic economy, and members reported that business sentiment appeared to have improved
recently in several, but not all, parts of the
country. One member noted that reduced personal income taxes could help to sustain consumer expenditures next year. Another commented
that the emergence of apparently more stable
conditions in agriculture and energy would tend
to remove the retarding influences that those key
sectors had been exerting on overall economic
activity. On the negative side, the demand for
automobiles undoubtedly would weaken after
the currently attractive incentive programs expired, and the apparent overbuilding of multifamily housing in many areas would tend to restrain
overall residential construction. Business fixed
investment was not expected to provide much, if
any, impetus to the expansion despite indications
of improvement recently in the demand for
equipment. Adverse factors bearing on the investment outlook included the current oversupply of office buildings and other commercial
33
facilities in many parts of the country and the
negative effects of the tax reform legislation on
investment incentives that many businessmen
were reporting. The outlook for fiscal policy
remained uncertain; several members noted that
some of the proposed measures for reducing the
deficit in 1987 did not deal with underlying
imbalances and that the prospects beyond 1987
were especially unclear. However, one member
observed that a reduction in government borrowing, if achieved, would tend to have a favorable
impact on financial markets and thus on the
economy generally.
On balance, while a few members supported
the view that some pickup in domestic demand
was a reasonable expectation, most believed that
growth in domestic demand would probably
taper off over the next several quarters. In their
view, therefore, the prospects for sustained economic growth depended on an improvement in
the foreign trade balance. The members generally agreed that the substantial depreciation of the
dollar against several major foreign currencies
provided a basis for anticipating a reduction in
the trade deficit in real terms, but the timing of
such a reduction still was subject to a great deal
of uncertainty. Moreover, several expressed
concern that the improvement might well be
relatively modest, especially in the absence of
stronger economic growth in key industrial nations abroad; and some members also commented on the inertia on both the import and export
sides associated with long-term contracts and
established marketing relationships. It also was
noted that the currencies of a number of developing countries had changed relatively little vis-avis the dollar over the past year or so, raising a
question as to the speed of adjustment in the
trade balance. With regard to currently available
information on trade developments, a few members referred to limited indications in reports
from firms in their Districts that tended to suggest some gains in the international competitive
position of U.S. firms and better prospects for
greater stability, if not some improvement, in the
overall trade balance. However, broadly confirming evidence of such a development had not
materialized thus far.
Against the background of the dollar's depreciation, the members agreed that some upward
pressure on prices could be expected over the
34
Federal Reserve Bulletin • January 1987
next several quarters, a tendency that would be
reinforced if world oil prices continued to rise.
Moreover, most commodity prices appeared to
have stabilized recently, after declining earlier,
while prices of precious metals had increased
considerably and these developments along with
conditions in financial markets suggested increased concern about the possibility of a pickup
in inflation. On the other hand, a number of
members observed that wages generally were
rising somewhat less this year than in 1985 and
some members also commented on the continuing efforts of many business firms to hold down
their costs. And while productivity gains had
been relatively limited in recent quarters, many
labor contracts incorporated provisions on work
rules that should help to improve efficiency and
moderate pressures on costs.
At its meeting in July the Committee reviewed
the basic policy objectives that it had established
in February for growth of the monetary and
credit aggregates in 1986 and set tentative objectives for expansion in 1987. For the period from
the fourth quarter of 1985 to the fourth quarter of
1986, the Committee reaffirmed the ranges established in February for growth of 6 to 9 percent for
both M2 and M3. The associated range for expansion in total domestic nonfinancial debt also
was reaffirmed at 8 to 11 percent for 1986. With
respect to M l , the Committee decided that
growth in excess of the 3 to 8 percent range set in
February would be acceptable and that such
growth would be evaluated in the context of the
velocity of M l , the expansion of the broader
aggregates, developments in the economy and
financial markets, and price pressures. For 1987
the Committee agreed on tentative monetary
growth objectives that included a reduction of Vi
percentage point to a range of 5 V2 to 8V2 percent
for both M2 and M3. In the case of Ml the
Committee expressed the preliminary view that
retention of the 1986 range of 3 to 8 percent,
which implied a considerable reduction from the
likely rate of growth in 1986, appeared appropriate for 1987 in the light of most historical experience. The Committee also retained the range of 8
to 11 percent for growth of total domestic nonfinancial debt in 1987. It was understood that all
the ranges were provisional and that, notably in
the case of M l , they would be reviewed in early
1987 against the background of intervening developments.
In the Committee's discussion of policy implementation for the weeks immediately ahead,
nearly all the members were in favor of directing
open market operations, at least initially, toward
maintaining unchanged conditions of reserve
availability. Several emphasized that monetary
policy had moved toward an increasingly accommodative posture over the course of recent
months and that it was now time to pause and
observe developments, given the rapid growth in
the broad as well as the narrow monetary aggregates, a few indications of more strength in the
economy, and some signs of increasing inflationary expectations. One member expressed the
view, however, that some tightening of reserve
conditions was desirable at this time against the
background of recent economic and financial
developments, notably the persistence of rapid
growth in the monetary aggregates.
In their discussion of policy implementation
over the near term, the members took into account an analysis that suggested that if current
conditions of reserve availability were maintained and if short-term interest rates did not
deviate significantly from their existing levels,
the growth of the monetary aggregates could be
expected to slow over the months ahead, relative
to the very rapid pace over the summer months,
even assuming somewhat stronger expansion in
economic activity. The most recent behavior of
the monetary aggregates lent some weight to
such an expectation. However, the anticipated
slowing still would result in growth of the broad
aggregates around the upper bound of their longterm ranges. Also, the members recognized that
the extent of any slowing in monetary growth
was subject to perhaps more than the usual
uncertainties, reflecting for example questions
about the pace of further adjustments in offering
rates on various types of interest-bearing deposits as depository institutions continued to respond to earlier declines in short-term market
rates. The members also noted that the monetary
aggregates might well continue to grow very
rapidly if short-term interest rates were to decline appreciably further.
In the course of the discussion, a number of
members expressed concern about the potential
Record of Policy Actions of the FOMC
for the broad monetary aggregates to exceed
their longer-term ranges. While recognizing the
need to evaluate the aggregates in the context of
economic and financial developments more generally, these members emphasized the potential
for inflation stemming from the buildup in money
balances, and in liquid assets more generally,
and these members attached considerable importance to constraining the growth of the broader
monetary aggregates to within the Committee's
ranges for the year. A slightly different view
acknowledged that the Committee's objectives
for M2 and M3 appeared to remain appropriate
for the year, but in this view actual growth
marginally in excess of those ranges should be
tolerated—and the added risks of some future
inflation accepted—if such growth occurred in
the context of continuing sluggish economic expansion. One member stressed that if the velocity of money continued to decline, further rapid
expansion might indeed be needed to sustain an
acceptable rate of economic growth.
Turning to the question of possible adjustments in the degree of reserve pressure during
the intermeeting period, the members did not
foresee as likely any developments that might
call for more than a slight change, if any, in the
availability of reserves during the weeks ahead.
In this context, however, a number believed that
policy implementation should be especially alert
to the potential need for some slight firming of
reserve conditions, particularly if monetary
growth did not slow in line with expectations,
though this growth would continue to be viewed
in the context of other economic and financial
developments. Most of these members did not
want to rule out the possibility of some easing in
the weeks immediately ahead, but they saw the
prospects for such a move as less likely, and two
favored a directive that would not contemplate
any easing. Other members felt that there should
be no presumptions about the likely direction of
any intermeeting adjustments, given the many
uncertainties that existed about the behavior of
the monetary aggregates and about prospective
economic and financial developments. The members agreed that the behavior of the dollar on
foreign exchange markets could be an important
factor influencing any small intermeeting adjustments.
35
At the conclusion of the Committee's discussion, all but one member indicated that they
favored a directive that called for no change in
the current degree of pressure on reserve positions. The members expected this approach to
policy implementation to be consistent with
some reduction in the growth of M2 and M3 to
annual rates of 7 to 9 percent over the fourmonth period from August to December. Over
the same interval, growth in Ml was expected to
moderate from the exceptionally large increase
during the past several months. Because the
prospective behavior of Ml remained subject to
unusual uncertainty, the Committee again decided not to specify a rate of expected growth for
this aggregate in the operational paragraph of the
directive but to continue to evaluate M l in the
light of the performance of the broader aggregates and other factors. The members indicated
that slightly greater reserve restraint would, or
slightly lesser restraint might, be acceptable over
the intermeeting period depending on the behavior of the monetary aggregates, taking into account 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. 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 4 to 8
percent.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests
some pickup in the growth of economic activity from
the slow pace in the second quarter. In August total
nonfarm payroll employment grew considerably further, with employment in manufacturing rising for the
first time since January. The civilian unemployment
rate edged down further to 6.8 percent. Industrial
production rose slightly in July and August after
declining on balance during the first half of the year.
Consumer spending has remained relatively strong in
recent months, with gains in retail sales in August
paced by a sharp rise in auto sales. Housing starts in
July and August stayed at a relatively high level.
Business capital spending appears to have remained
sluggish, reflecting weakness in nonresidential con-
36
Federal Reserve Bulletin • January 1987
struction. A more moderate rate of wage increases has
been sustained in recent months, while broad measures of prices have firmed somewhat due to developments in food and energy markets.
The trade-weighted value of the dollar against major
foreign currencies is essentially unchanged on balance
since the August 19 meeting of the Committee. Preliminary data for the U.S. merchandise trade deficit in
July indicate a larger deficit than in previous months.
Growth of M2 and especially of M3 moderated in
August, but expansion of these two aggregates for the
year through August has been at the upper end of their
respective ranges established by the Committee for
1986. In August Ml continued to grow very rapidly.
Expansion in total domestic nonfinancial debt remains
appreciably above the Committee's monitoring range
for 1986. Short-term interest rates have declined further since the August meeting of the Committee while
long-term market rates have risen on balance. On
August 20, the Federal Reserve Board approved a
reduction in the discount rate from 6 to 5V2 percent.
The Federal Open Market Committee seeks monetary and financial conditions that will foster reasonable
price stability over time, promote growth in output on
a sustainable basis, and contribute to an improved
pattern of international transactions. In furtherance of
these objectives the Committee agreed at the July
meeting to reaffirm the ranges established in February
for growth of 6 to 9 percent for both M2 and M3,
measured from the fourth quarter of 1985 to the fourth
quarter of 1986. With respect to Ml, the Committee
recognized that, based on the experience of recent
years, the behavior of that aggregate is subject to
substantial uncertainties in relation to economic activity and prices, depending among other things on the
responsiveness of Ml growth to changes in interest
rates. In light of these uncertainties and of the substantial decline in velocity in the first half of the year, the
Committee decided that growth of Ml in excess of the
previously established 3 to 8 percent range for 1986
would be acceptable. Acceptable growth of Ml over
the remainder of the year will depend on the behavior
of velocity, growth in the other monetary aggregates,
developments in the economy and financial markets,
and price pressures. Given its rapid growth in the early
part of the year, the Committee recognized that the
increase in total domestic nonfinancial debt in 1986
may exceed its monitoring range of 8 to 11 percent, but
felt an increase in that range would provide an inappropriate benchmark for evaluating longer-term trends
in that aggregate.
For 1987 the Committee agreed on tentative ranges
of monetary growth, measured from the fourth quarter
of 1986 to the fourth quarter of 1987, of 5lA to 8V2
percent for M2 and M3. While a range of 3 to 8 percent
for Ml in 1987 would appear appropriate in the light of
most historical experience, the Committee recognized
that the exceptional uncertainties surrounding the behavior of Ml velocity over the more recent period
would require careful appraisal of the target range at
the beginning of 1987. The associated range for growth
in total domestic nonfinancial debt was provisionally
set at 8 to 11 percent for 1987.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. This action is
expected to be consistent with growth in M2 and M3
over the period from August to December at annual
rates of 7 to 9 percent. While growth in Ml is expected
to moderate from the exceptionally large increase
during the past several months, that growth will continue to be judged in the light of the behavior of M2
and M3 and other factors. Slightly greater reserve
restraint would, or slightly lesser reserve restraint
might, be acceptable depending on the behavior of the
aggregates, taking into account the strength of the
business expansion, development 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 4 to 8 percent.
Votes for this action: Messrs. Volcker, Corrigan,
Angell, Guffey, Heller, Mrs. Horn, Messrs.
Johnson, Melzer, Morris, Rice, and Ms. Seger.
Vote against this action: Mr. Wallich.
Mr. Wallich dissented because he preferred a
slight tightening of reserve conditions. He was
concerned about the persistence of rapid monetary expansion and the associated potential for
inflation. In his view some reduction in the
availability of reserves was needed to increase
the likelihood of significant slowing in monetary
growth over the months ahead.
37
Legal Developments
AMENDMENT TO REGULATION D
Category
The Board of Governors is amending its Regulation D,
Reserve Requirements of Depository Institutions, to:
(1) increase the amount of transaction accounts
subject to a reserve requirement ratio of 3 percent,
as required by section 19(b)(2)(C) of the Federal
Reserve Act (12 U.S.C. § 461(b)(2)(C)), from $31.7
million to $36.7 million of net transaction accounts;
(2) increase the amount of reservable liabilities of
each depository institution that is subject to a reserve requirement of zero percent, as required by
section 19(b)(ll)(B) of the Federal Reserve Act
(12 U.S.C. § 461(b)(ll)(B)), from $2.6 million to
$2.9 million of reservable liabilities; and
(3) increase the reporting cutoff level which is used
to separate weekly reporters from quarterly reporters from $26.8 million to $28.6 million of total
deposits and other reservable liabilities.
Effective December 30, 1986, the Board amends
12 C.F.R. Part 204 as follows:
Net transaction accounts
$0 to $36.7 million
over $36.7 million
Reserve Requirement
3 percent of amount
$1,101,000 plus 12% of amount
over $36.7 million
Nonpersonal time deposits
By original maturity (or
notice period):
Less than IV2 years
1 Vi years or more
Eurocurrency liabilities
3%
0%
3%
(2) Exemption from reserve requirements. Each
depository institution, Edge or Agreement Corporation, and U.S. branch or agency of a foreign
bank is subject to a zero percent reserve requirement on an amount of its transaction accounts
subject to the low reserve tranche in paragraph
(a)(1), nonpersonal time deposits, or Eurocurrency liabilities or any combination thereof not in
excess of $2.9 million determined in accordance
with section 204.3(a)(3) of this Part.
AMENDMENT TO REGULATION Y
Part 204—Reserve
Institutions
Requirements
of
Depository
1. The authority citation for 12 C.F.R. Part 204 is
revised to read as follows:
Authority: 12 U.S.C. §§ 248(a), 248(c), 371a, 371b,
461, 601, 611; 12 U.S.C. § 3105; 12 U.S.C. § 461.
2. Section 204.9, Reserve Requirement Ratios, is
amended by revising paragraphs (a)(1) and (a)(2) as
follows:
(a)(1) Reserve percentages. The following reserve
ratios are prescribed for all depository institutions, Edge and Agreement Corporations, and
United States branches and agencies of foreign
banks:
The Board of Governors is amending Appendix A—
Capital Adequacy Guidelines for Bank Holding Companies and State Member Banks—to its Regulation Y,
Bank Holding Companies and Change in Bank Control, to treat perpetual debt securities that meet certain
criteria as primary capital for bank holding companies
(but not state member banks). The Board also adopted, with modifications, its proposal to limit the combined amount of mandatory convertible instruments,
perpetual preferred stock and perpetual debt that may
qualify as primary capital.
Effective November 3, 1986, the Board amends
Appendix A of 12 C.F.R. Part 225 as follows:
Part 225—Bank Holding Companies
Change in Bank Control
and
1. The authority citation for Part 225 continues to read
as follows:
38
Federal Reserve Bulletin • January 1987
Authority: 12 U.S.C. §§ 1817(j)(13), 1818, 1843(c)(8),
1844(b), 3106, 3108, 3907, 3909.
2. The portion of Appendix A of Part 225 entitled
"Definition of Capital to be Used in Determining
Capital Adequacy of Bank Holding Companies and
State Member Banks" is amended by adding perpetual
debt to the list of primary capital components, by
deleting footnote 3, and by adding a new subsection
entitled "Limits on Non-Common-Equity Forms of
Primary Capital." That portion of Appendix A now
reads as follows:
A—Capital Adequacy Guidelines for
Bank Holding Companies and State Member
Banks
APPENDIX
Definition of Capital to be Used in
Capital Adequacy of Bank Holding
Banks
and State Member
Determining
Companies
Primary Capital Components
The components of primary capital are:
— common stock,
— perpetual preferred stock (preferred stock that
does not have a stated maturity date and that
may not be redeemed at the option of the
holder),
— surplus (excluding surplus relating to limited-life
preferred stock),
— undivided profits,
— contingency and other capital reserves,
— mandatory convertible instruments,
— allowance for possible loan and lease losses
(exclusive of allocated transfer risk reserves),
— minority interest in equity accounts of
consolidated subsidiaries,
— perpetual debt instruments (for bank holding
companies but not for state member banks).
Limits on Certain Forms of Primary
Capital
Bank Holding Companies. The maximum composite
amount of mandatory convertible securities, perpetual
debt, and perpetual preferred stock that may be counted as primary capital for bank holding companies is
limited to 33.3 percent of all primary capital, including
these instruments. Perpetual preferred stock issued
prior to November 20, 1985 (or determined by the
Federal Reserve to be in the process of being issued
prior to that date), shall continue to be included as
primary capital.
The maximum composite amount of mandatory convertible securities and perpetual debt that may be
counted as primary capital for bank holding companies
is limited to 20 percent of all primary capital, including
these instruments. The maximum amount of equity
commitment notes (a form of mandatory convertible
securities) that may be counted as primary capital for a
bank holding company is limited to 10 percent of all
primary capital, including mandatory convertible securities. Amounts outstanding in excess of these limitations may be counted as secondary capital provided
they meet the requirements of secondary capital instruments.
State Member Banks. The composite limitations on
the amount of mandatory convertible securities and
perpetual preferred stock (perpetual debt is not primary capital for state member banks) that may serve
as primary capital for bank holding companies shall
not be applied formally to state member banks, although the Board shall determine appropriate limits
for these forms of primary capital on a case-by-case
basis.
The maximum amount of mandatory convertible
securities that may be counted as primary capital for
state member banks is limited to 16% percent of all
primary capital, including mandatory convertible securities. Equity commitment notes, one form of mandatory convertible securities, shall not be included as
primary capital for state member banks, except that
notes issued by state member banks prior to May 15,
1985 will continue to be included in primary capital.
Amounts of mandatory convertible securities in excess of these limitations may be counted as secondary
capital if they meet the requirements of secondary
capital instruments.
3. That portion of Appendix A entitled "Criteria
Applicable to Both Types of Mandatory Convertible
Securities" is amended by deleting paragraph (b) and
footnote 4 and relettering paragraphs (c) through (f) as
paragraphs (b) through (e). Footnotes 5 and 6 will be
renumbered as footnotes 3 and 4.
4. That portion of Appendix A entitled "Additional
Criteria Applicable to Equity Commitment Notes" is
amended by deleting paragraph (d) and by renumbering footnotes 7 and 8 as footnotes 5 and 6.
5. Appendix A is amended by adding the following
paragraphs at the end of the Appendix.
Legal Developments
Criteria for Determining the Primary
Status of Perpetual Debt Instruments
Holding Companies
Capital
of Bank
1. The instrument must be unsecured and, if issued by
a bank, must be subordinated to the claims of depositors.
2. The instrument may not provide the noteholder with
the right to demand repayment of principal except in
the event of bankruptcy, insolvency, or reorganization. The instrument must provide that nonpayment of
interest shall not trigger repayment of the principal of
the perpetual debt note or any other obligation of the
issuer, nor shall it constitute prima facie evidence of
insolvency or bankruptcy.
3. The issuer shall not voluntarily redeem the debt
issue without prior approval of the Federal Reserve,
except when the debt is converted to, exchanged for,
or simultaneously replaced in like amount by an issue
of common or perpetual preferred stock of the issuer
or the issuer's parent company.
4. If issued by a bank holding company, a bank
subsidiary, or a subsidiary with substantial operations,
the instrument must contain a provision that allows the
issuer to defer interest payments on the perpetual debt
in the event of, and at the same time as the elimination
of dividends on all outstanding common or preferred
stock of the issuer (or in the case of a guarantee by a
parent company at the same time as the elimination of
the dividends of the parent company's common and
preferred stock). In the case of a nonoperating subsidiary (a funding subsidiary or one formed to issue
securities), the deferral of interest payments must be
triggered by elimination of dividends by the parent
company.
5. If issued by a bank holding company or a subsidiary
with substantial operations, the instrument must convert automatically to common or perpetual preferred
stock of the issuer when the issuer's retained earnings
and surplus accounts become negative. If an operating
subsidiary's perpetual debt is guaranteed by its parent,
the debt may convert to the shares of the issuer or
guarantor and such conversion may be triggered when
the issuer's or parent's retained earnings and surplus
accounts become negative. If issued by a nonoperating
subsidiary of a bank holding company or bank, the
instrument must convert automatically to common or
preferred stock of the issuer's parent when the retained earnings and surplus accounts of the issuer's
parent become negative.
AMENDMENT
TO REGULATION
39
AA
The Board of Governors is granting in part the request
by the state of Wisconsin for an exemption from the
Board's Credit Practices Rule, Subpart B of Regulation AA, Unfair or Deceptive Acts or Practices.
Effective November 20, 1986, the Board grants,
pursuant to Subpart B of 12 C.F.R. Part 227, an
exemption as follows:
Part 227—Unfair or Deceptive Acts or
Practices
1. The authority citation for 12 C.F.R. Part 227 continues to read as follows:
Authority: § 18(f), FTC A, as amended by Pub.L.
93-637.
2. The exemption requested by the state of Wisconsin
to Subpart B of Regulation AA, the Credit Practices
Rule, is granted in part, as follows:
ORDER
The state of Wisconsin has applied for an exemption
from the Credit Practices Rule which became effective
January 1, 1986. Pursuant to § 227.16 of Regulation
AA, the Board has determined that the relevant laws
of this state are substantially equivalent to the federal
law and that the state administers and enforces its laws
effectively. The Board hereby grants the exemption as
follows:
Effective November 20, 1986, consumer credit transactions under $25,000 that are subject to the Wisconsin
Consumer Act and its implementing regulations are
exempt from the Board's Credit Practices Rule. Consumer credit transactions over $25,000 are subject to the
Board's Credit Practices Rule; however, compliance
with the relevant provisions of the Wisconsin Consumer
Act would be considered compliance with the Board's
rule.
This exemption does not apply to transactions in
which a federally chartered institution is a creditor.
40
Federal Reserve Bulletin • January 1987
ORDERS ISSUED UNDER BANK HOLDING
COMPANY ACT, BANK MERGER ACT, BANK
SERVICE CORPORATION ACT, AND FEDERAL
RESERVE ACT
Orders Issued Under Section
Holding Company Act
3 of the Bank
A.B.N.-Stichting
Amsterdam, The Netherlands
Algemene Bank Nederland N.V.
Amsterdam, The Netherlands
ABN Company, Inc.
Chicago, Illinois
LaSalle National Corporation
Chicago, Illinois
Order Approving Acquisition of a Bank Holding
Company and of a Bank
A.B.N.-Stichting, Amsterdam, The Netherlands
("Stichting"), and its wholly owned direct and indirect
subsidiaries, Algemene Bank Nederland N.V., Amsterdam, The Netherlands ("Algemene"); ABN Company, Inc., Chicago, Illinois ("ABN"); and LaSalle
National Corporation, Chicago, Illinois ("LaSalle National") (collectively "Applicants"), all bank holding
companies within the meaning of the Bank Holding
Company
Act
("BHC
Act")
(12 U.S.C.
§ 1841 et seq.), have each applied for the Board's prior
approval under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the outstanding voting shares of Lisle Bancorporation, Lisle, Illinois ("Bancorporation"), and thereby to acquire indirectly Bank of Lisle, Lisle, Illinois ("Lisle Bank").
Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the BHC 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 BHC Act (12 U.S.C. § 1842(c)).
Stichting is a private foundation that does not engage in activities other than holding shares of Algemene. Algemene, with total assets of $51.3 billion, is
the 43rd largest bank in the world and the largest bank
in The Netherlands. 1 Algemene has banking and nonbanking subsidiaries, offices, branches and agencies in
1. Banking data for Algemene are as of December 31, 1985.
44 countries. In the United States, Algemene operates
full service branches in New York, Chicago, and
Pittsburgh, a limited service branch in Seattle, and
agencies in Atlanta, Boston, Miami, Houston, Los
Angeles, and San Francisco. Algemene has selected
Illinois as its home state under the Board's Regulation
K (12 C.F.R. § 211.22(b)). Algemene is permitted
under section 5(b) of the International Banking Act
("IBA") (12 U.S.C. § 3103(b)) to retain its full service
branches outside of Illinois because they were opened
before July 27, 1978, the grandfather date under section 5 of the IBA. The Seattle branch limits its deposittaking operations to those permissible for a corporation organized under section 25(a) of the Federal
Reserve Act (12 U.S.C. § 611 et seq.), as required by
section 5 of the IBA. Algemene also operates a subsidiary in New York engaged in acting as agent in the
purchase and sale of securities on the Amsterdam
Stock Exchange as permitted under the Board's regulations. ABN is a holding company whose only subsidiaries are LaSalle National and a subsidiary in Chicago, with an office in Houston, organized pursuant to
section 25(a) of the Federal Reserve Act. LaSalle
National is a holding company whose only subsidiaries
are LaSalle National Bank, Chicago, Illinois ("LaSalle
Bank"), and a subsidiary engaged in discount brokerage activities permitted under the Board's regulations.
LaSalle National is the 11th largest commercial
banking organization in Illinois with total deposits of
$935.1 million, representing 0.9 percent of the total
deposits in commercial banks in the state. 2 Algemene's Chicago branch holds no deposits. Bancorporation, with only one bank, is the 250th largest commercial banking organization in Illinois with total deposits
of $79.1 million, representing less than 0.1 percent of
the total deposits in commercial banks in the state.
Upon consummation of this proposal, LaSalle National will become the 10th largest commercial banking
organization in Illinois with total deposits of approximately $1 billion, representing approximately 1 percent of the total deposits in commercial banks in the
state.
LaSalle National competes in the Chicago banking
market, 3 where it is the 8th largest of 279 commercial
banking organizations, with 1.4 percent of the total
deposits in commercial banks. Bancorporation also
competes in the Chicago banking market, where it is
the 129th largest commercial banking organization,
with 0.1 percent of the total deposits in commercial
banks in the market. Upon consummation, LaSalle
2. All banking data are as of June 30, 1985, unless otherwise
indicated.
3. The Chicago banking market is approximated by Cook, DuPage
and Lake Counties, all in Illinois.
Legal Developments
National will become the 7th largest commercial banking organization in the market with 1.5 percent of the
total deposits in commercial banks.
The Chicago banking market is not concentrated,
with the four largest commercial banking organizations in the market holding 46.7 percent of the total
deposits in commercial banks in the market and a
Herfindahl-Hirschman Index ("HHI") of 715 points.
Upon consummation of this proposal, the HHI will
increase by less than one point. Accordingly, based on
these and all the facts of record, the Board has
determined that consummation of this proposal would
not have any significant adverse competitive effects or
result in the concentration of banking resources in any
relevant banking market.
Section 3(c) of the BHC Act requires in every case
that the Board consider the financial resources of the
applicant organization and the 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
issues that the Board believes require careful consideration and that the Board continues to have under
review.4 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 Algemene, as publicly reported, is below the
minimum level established for domestic bank holding
companies. In other similar cases, the Board has
considered mitigating factors, including adjustments to
the applicant's capital that reflect differences between
foreign and domestic accounting and regulatory practices. After making adjustments in this case to account
for certain elements of capital that are the same or
similar in the capital structure of domestic bank holding companies, and adjustments that reflect differences in accounting and regulatory practices, the
primary capital ratio of Algemene closely approximates the minimum level established for domestic
bank holding companies. The Board has also considered as positive factors that Algemene has recently
4 . Bank
Mitsubishi
of Montreal,
Bank, Ltd.,
raised additional capital, and its plans to improve
further its capital ratio in the near future. The Board
also notes that Algemene is in compliance with the
capital and other financial requirements of the appropriate supervisory authorities in The Netherlands and
that Algemene's resources and prospects are viewed
as satisfactory by those authorities.
In its evaluation of this case, the Board has considered as additional positive factors the fact that ABN,
LaSalle National, and LaSalle Bank are all strongly
capitalized, and that LaSalle National and LaSalle
Bank have significantly improved their capital positions under the ownership and control of Algemene. In
addition, the Board notes that Lisle Bank is small in
relation to Algemene and ABN and is itself strongly
capitalized. In this regard, as the Board has noted,5
recent changes in Illinois banking law have allowed
multi-bank holding companies in Illinois. This has
created the opportunity for large banking organizations in Chicago and other markets to expand into the
Chicago suburbs. In line with the actions of its major
competitors in Chicago, Lasalle National is attempting
through this acquisition to expand its deposit base and
banking activities into the Chicago suburbs. This acquisition of a $79 million bank is LaSalle National's
first effort in this regard and is modest in scope.
The Board expects that Applicants will maintain
LaSalle Bank and Lisle Bank as among the more
strongly capitalized banking organizations of comparable size in the United States. Based on these and other
facts of record, the Board concludes that the financial
factors to be considered under the BHC Act are
consistent with approval of the transaction.
In its evaluation of Applicants' managerial resources, the Board has considered certain violations
by LaSalle Bank of the Currency and Foreign Transactions Reporting Act6 ("CFTRA") and the regulations
thereunder. The Board notes that LaSalle Bank has
consulted with and cooperated with the appropriate
supervisory authorities and law enforcement agencies
following discovery of these violations.
In addition, LaSalle Bank has implemented a comprehensive remedial program to correct these violations and to prevent violations from occurring in the
future. Applicants have advised the Board that LaSalle Bank has filed corrective currency transaction
reports; implemented audit and operations procedures
to ensure that reportable transactions are identified for
proper reporting, including implementing computer
programs to verify compliance; and appointed a compliance officer responsible for monitoring compliance
7 0 FEDERAL RESERVE BULLETIN 6 6 4 ( 1 9 8 4 ) ;
7 0 FEDERAL RESERVE BULLETIN 5 1 8 ( 1 9 8 4 ) .
See also Policy Statement on Supervision and Regulation
Based Bank Holding Companies,
1 Federal Reserve
Service
41
11 4 - 8 3 5 (1979).
of ForeignRegulatory
5. Continental
Illinois
Corp.,
7 3 FEDERAL RESERVE BULLETIN 4 6
(1987).
6. 31 U . S . C . § 5 3 1 1 , et seq.\31
C . F . R . § 103.
42
Federal Reserve Bulletin • January 1987
with the CFTRA and regulations thereunder. Applicants have also instituted an intensive ongoing internal
training and testing program for bank personnel regarding compliance with the CFTRA. The sufficiency
of the compliance procedures adopted to address this
matter and the efficacy in correcting the deficiencies
have been reviewed by Office of the Comptroller of the
Currency examiners. The Board has also consulted
with appropriate enforcement agencies and has considered Applicants' past record of compliance with the
law. For the foregoing reasons and based upon a
review of all facts of record, the Board concludes that
the managerial resources of Applicants are consistent
with approval.
The Board has also determined that considerations
relating to the convenience and needs of the community to be served are also consistent with approval.
Based on the foregoing and all the facts of record, the
Board has determined that the applications should be
and hereby are approved. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 26, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Seger, and Angell. Absent and not voting: Governors Wallich, Rice, and Heller.
BARBARA R . LOWREY
[SEAL]
Associate
Secretary
of the
Board
Baker Boyer Bancorp
Walla Walla, Washington
Order Approving the Formation of a Bank Holding
Company
Baker Boyer Bancorp, Walla Walla, Washington, 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 the Baker-Boyer National Bank
of Walla Walla, Walla Walla, Washington ("Washington Bank") and the Bank of Commerce, MiltonFreewater, Oregon ("Oregon Bank").
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)).
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 a bank located outside the bank holding company's home state, 1 unless the state where the bank to
be acquired is located has specifically authorized the
acquisition by language to that effect and not merely
by implication. The Board has previously determined
that Oregon has by statute expressly authorized a
Washington bank holding company, such as Applicant, to acquire an Oregon bank or bank holding
company. 2 Accordingly, approval of Applicant's proposal to acquire Oregon Bank is not barred by the
Douglas Amendment.
Washington Bank, the tenth largest of 88 commercial banking organizations in Washington, controls
$162.2 million in total deposits, representing 0.7 percent of total deposits in commercial banks in Washington. 3 Oregon Bank, the 23rd largest of 60 commercial
banking organizations in Oregon, controls $41 million
in total deposits, representing 0.3 percent of total
deposits in commercial banks in Oregon. Consummation of the proposal would have no significant effect on
the concentration of banking resources in Washington
or Oregon.
Washington Bank and Oregon Bank compete directly in the Walla Walla, Washington/Umatilla, Oregon
banking market. 4 Washington Bank is the largest of 12
commercial banking organizations in the market, with
deposits of $151 million, representing 26.4 percent of
the total deposits in commercial banks in the market. 5
Oregon Bank is the sixth largest commercial bank in
the market, with total deposits of $38 million, representing 6.7 percent of the deposits in commercial
banks in the market. After consummation of the
proposal, Applicant's share of the deposits in commercial banks in the market would be 33.1 percent and it
would rank first in the market. The share of deposits
held by the four largest commercial banking organiza-
1. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842(d). Applicant's home state is Washington.
2. Rainier
(1987).
Bancorporation,
7 3 FEDERAL RESERVE BULLETIN
55
3. State deposit data are as of March 31, 1986.
4. The Walla Walla, Washington/Umatilla, Oregon banking market
consists of Walla Walla County, Washington, and Umatilla County,
Oregon.
5. Market data are as of June 30, 1985.
Legal Developments
tions in the market would increase from 64 percent to
71 percent and the Herfindahl-Hirschman Index
("HHI") would increase by 354 points to 1765.6
Although consummation of the proposal would eliminate some existing competition between Washington
Bank and Oregon Bank in the market, numerous other
commercial banking organizations would remain as
competitors after consummation of the proposal. In
addition, the effect of this proposal on existing competition is further mitigated by the extent of competition
offered by thrift institutions in the market. 7 Eight thrift
institutions hold 40.9 percent of the total deposits in
the market. These institutions compete with commercial banks by providing a wide array of deposit and
lending services to consumers and commercial customers. 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 and size of competitors remaining in the market and other facts of record,
the Board concludes that consummation of the proposed acquisition is not likely to substantially lessen
competition in the Walla Walla, Washington/Umatilla,
Oregon banking market.
The financial and managerial resources of Applicant, Washington Bank and Oregon Bank 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.
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
6. 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 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 indicate that the merger is not likely substantially to 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 effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by at
least 200 points.
7. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
BULLETIN 743 (1984); NCNB Corporation, 70 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation,
43
such period is extended for good cause by the Board or
by the Federal Reserve Bank of San Francisco, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 19, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Rice, Seger, and Angell. Absent and not voting:
Governors Wallich and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the Board
Central Bancompany
Jefferson City, Missouri
Order Approving Acquisition of a Bank
Central Bancompany, Jefferson City, Missouri, a bank
holding company within the meaning of the Bank
Holding Company Act ("Act") (12 U.S.C. § 1841
et seq.), has applied for the Board's approval under
section 3(a)(3) of the Act to acquire Bank of Lake of
the Ozarks, Osage Beach, Missouri ("Bank").
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, including one comment in opposition to the
application, in light of the factors set forth in section
3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the sixth largest commercial banking
organization in Missouri, controls seven subsidiary
banks in the state with approximately $1.1 billion in
total deposits, representing 2.7 percent of the total
deposits in commercial banks in the state. 1 Bank, the
69th largest of 673 commercial banks in Missouri, has
deposits of $101.9 million, representing 0.3 percent of
the total deposits in commercial banks in the state.
Upon consummation of the proposed transaction, Applicant would remain the sixth largest commercial
banking organization in Missouri, with total deposits
of $1.2 billion, representing 2.9 percent of total deposits in commercial banks in the state. Accordingly,
consummation of the proposal would have no significant effect on the concentration of banking resources
in Missouri.
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
8. If 50 percent of the deposits held by thrift institutions were
included in the calculation of market concentration, the share of total
deposits held by the four largest organizations in the market would be
54 percent. Upon consummation of the proposal, Applicant would
control 24.6 percent of the total deposits in the market and the HHI
would increase by 196 points to 1136.
1. Banking data are as of December 31, 1985 and are adjusted to
reflect mergers consummated and holding company acquisitions approved through September 30, 1986.
44
Federal Reserve Bulletin • January 1987
Applicant and Bank compete directly in the Eldon/
Camdenton, Missouri, banking market. 2 Applicant is
the fifth largest of 11 commercial banking organizations in the Eldon/Camdenton banking market, with
deposits of $16.4 million, representing 4.5 percent of
total deposits in commercial banks in the market.
Bank is the largest commercial bank in the market,
with total deposits of $101.9 million, representing 28
percent of the deposits in commercial banks in the
market. After consummation of the proposal, Applicant's share of the deposits in commercial banks in the
market would be 32.5 percent. The market's four-firm
concentration ratio would increase from 76 percent to
80.5 percent and, based on commercial banks alone,
the Herfindahl-Hirschman Index ("HHI") would increase by 252 points to 1978. The increase in the HHI
would make this transaction one that would be subject
to challenge under the Department of Justice Merger
Guidelines.3
Although consummation of the proposal would eliminate existing competition between Applicant and
Bank in the Eldon/Camdenton, Missouri, banking
market, the Board has concluded that the effect of this
proposal on existing competition is mitigated by the
presence of a number of banking alternatives in the
market, including a newly chartered state bank scheduled to open in Osage Beach, Missouri, prior to
January 1, 1987. In addition, the Board has considered
the presence and competition afforded by thrift institutions in its analysis of this proposal. 4 Three thrift
institutions located in the Eldon/Camdenton market
hold deposits of $56 million, representing 13.5 percent
of the total deposits in depository institutions in the
market. These institutions compete with commercial
banks in the provision of consumer loans, and, to
some extent, commercial lending services and commercial checking accounts. 5
2. The Eldon/Camdenton, Missouri, banking market consists of
Camden and Miller Counties, Missouri.
3. 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.
The Department has informed the Board that a bank merger or
acquisition 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.
4. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
BULLETIN 7 4 3 ( 1 9 8 4 ) ; NCNB
Corporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation,
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
5. If 50 percent of the deposits held by thrift institutions in the
Eldon/Camdenton banking market were included in the calculation of
market concentration, the HHI, as a result of the proposal, would
increase by 217 points to 1729 and Applicant would control 30.1
percent of the market's deposits upon consummation of the proposal.
On the basis of these and other facts of record, the
Board concludes that consummation of the proposal is
not likely to have a significant adverse effect on
competition in the Eldon/Camdenton, Missouri, banking market.
The financial and managerial resources of Applicant, its subsidiaries and Bank are consistent with
approval of the application. Upon consummation of
this proposal, Bank will offer new products and services including one-statement banking, automatic teller machines, instant statements in bank lobbies, and
overdraft checking. Considerations relating to the convenience and needs factors are also 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 St. Louis, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 21, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, and Angell. Absent and not voting: Chairman Volcker and Governors Wallich and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
Citizens and Southern Corporation
Atlanta, Georgia
Citizens and Southern Florida Corporation
Ft. Lauderdale, Florida
Order Approving Acquisition of Banks
The Citizens and Southern Corporation, Atlanta,
Georgia ("C&S Georgia"), and Citizens and Southern
Florida Corporation, Ft. Lauderdale, Florida ("C&S
Florida") (together "Applicants"), bank holding companies within the meaning of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) ("Act"), have
applied for the Board's approval under section 3(a)(3)
of the Act (12 U.S.C. § 1842 (a)(3)) to acquire First
National Bank, Winter Park, Winter Park, Florida
("Winter Park Bank"); Bank of the Islands, Sanibel,
Florida ("Sanibel Bank"); Community National Bank,
Kissimmee, Florida ("Kissimmee Bank"); and First
Legal Developments
National Bank, Seminole County, Longwood, Florida
("Longwood Bank") (together "Banks").
Notice of the applications, affording an opportunity
to interested persons to submit comments, has been
given in accordance with section 3(b) of the Act (51
Federal Register 28,982 (August 13, 1986)). The time
for filing comments has expired, and the Board has
considered the applications and all the comments
received in light of the factors set forth in section 3(c)
of the Act.1
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 a bank located outside the bank holding company's home state,2 unless the state where the bank to
be acquired is located has specifically authorized the
acquisition by language to that effect and not merely
by implication. The Board has previously determined
that Florida has by statute expressly authorized a
Georgia bank holding company, such as C&S Georgia,
to acquire a Florida bank or bank holding company.3
Accordingly, approval of Applicants' proposal to acquire banks in Florida is not barred by the Douglas
Amendment.
C&S Florida is the eighth largest commercial banking organization in Florida, with eleven subsidiary
banks in Florida that control aggregate deposits of
approximately $3.4 billion, representing 4.7 percent of
the total deposits in commercial banks in Florida.4
C&S Georgia is the largest commercial banking organization in Georgia and controls aggregate deposits of
approximately $6.1 billion, representing 17.6 percent
of the total deposits in commercial banks in that state.
C&S-South Carolina is the second largest commercial
banking organization in South Carolina, with one
subsidiary bank that holds deposits of approximately
$2.4 billion, representing 22.3 percent of the total
deposits in commercial banks in South Carolina. The
Banks to be acquired are some of the smaller institu-
1. The Board received a comment from Mr. Rancy F. Snyder that
challenged Applicants' record of complying with the Community
Reinvestment Act and reported Applicants' violation of the Florida
Consumer Finance Act. Fla. Stat. Ann. chap. 687. The Board has
reviewed Florida law and Applicants' compliance with the Community Reinvestment Act. After careful consideration of the protest and all
the facts of record, including the corrections instituted by Applicants,
the Board concludes that the protest does not support a finding of
adverse banking factors.
2. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842(d). Applicants' home state is Georgia.
3. Citizens and Southern Georgia Corporation, 71 FEDERAL RESERVE BULLETIN 728 (1985). See, Fla. Stat. Ann. § 658.295 (1984);
Ga. Code Ann. §§ 7-1-620 to 7-1-625 (Supp. 1985).
4. State data are as of December 31, 1985.
45
tions in Florida and together control 0.4 percent of the
deposits in commercial banks in Florida. Upon consummation of the transaction, Applicants would control 5.1 percent of the total deposits in commercial
banks in Florida and would remain the eighth largest
commercial banking organization in Florida. The
Board concludes that consummation of this proposal
would have no effect on the concentration of banking
resources in any state.
Applicants and Banks compete in the Orlando and
Fort Myers banking markets. In the Orlando banking
market, Applicants are the ninth largest commercial
banking organization, with deposits of $69.9 million,
representing approximately 1.6 percent of the total
deposits in commercial banks in the market.5 The
Winter Park Bank, Kissimmee Bank and Longwood
Bank together are the seventh largest commercial
banking organization in the market, with deposits of
$184.6 million, representing 4.3 percent of the deposits
in commercial banks in the market. Upon consummation of the proposal, Applicants would become the
fifth largest commercial banking organization in the
market and would control approximately 6 percent of
the total deposits in commercial banks in the market.
The Orlando market has a four-firm concentration
ratio of 76.1 percent and is considered highly concentrated. The Herfindahl-Hirschman Index ("HHI") for
the market is 2290 and would increase by 15 points to
2305 upon consummation of the proposal. Because of
the small increase in the HHI, this acquisition would
not be subject to challenge by the Department of
Justice under its merger guidelines.6 Moreover, numerous other commercial banking organizations
would remain in the market after consummation of the
proposal. Based upon the above considerations, the
Board concludes that consummation of the proposal is
not likely to substantially lessen competition in the
Orlando banking market.
Applicants and Sanibel Bank compete directly in the
Fort Myers banking market.7 Applicants are the largest commercial banking organization in the market,
with total deposits of $671.4 million, representing 36.3
5. The Orlando banking market is defined as Orange County, plus
Seminole and Osceola Counties, exlcuding the towns of Oviedo and
Sanford.
6. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,283 (June 29, 1984)), any market in which the
post-merger HHI is over 1800 is considered highly concentrated, and
the Department is likely to challenge a merger that increases the HHI
by more than 50 points, unless other facts of record indicate that the
merger is not likely substantially to 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 effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points.
7. The Fort Myers banking market is approximated by Lee County,
Florida.
46
Federal Reserve Bulletin • January 1987
percent of the total deposits in the commercial banks
in the market. Sanibel Bank is the sixth largest commercial banking organization in the market, with deposits of $172.4 million, representing 3.9 percent of the
total deposits in commercial banks in the market.
After consummation of the proposal, Applicants'
share of the deposits in commercial banks in the
market would be 40.2 percent. The share of deposits
held by the four largest commercial banking organizations in the market would increase from 76.5 percent
to 80.4 percent and the HHI would increase 283 points
to 2355.
Although consummation of the proposal would eliminate some existing competition between Applicants
and Sanibel Bank in the Fort Myers market, numerous
other commercial banking organizations would remain
as competitors after consummation of the proposal. In
addition, the Board has considered the presence and
competition afforded by thrift institutions in its analysis of this proposal. 8 Twenty thrift institutions compete with commercial banks in the Ft. Myers banking
market and account for 44.8 percent of the total
deposits in the market. Thrift institutions already exert
a considerable competitive influence in the market as
providers of NOW accounts and consumer loans. In
addition, most of these institutions provide commercial and industrial loans, as well as traditional thrift
services. Based upon the above considerations, the
Board concludes that consummation of the proposal is
not likely substantially to lessen competition in the Ft.
Myers banking market. 9
The financial and managerial resources of Applicants, its subsidiaries, and Banks are consistent with
approval. 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
the proposed acquisitions are in the public interest and
that the applications should be, and hereby are, approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
8. The board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
BULLETIN 743 (1984); NCNB Corporation, 70 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation,
6 9 FEDERAL RESERVE B U L L E T I N 2 9 8 ( 1 9 8 3 ) .
9. If 50 percent of deposits held by thrift institutions in the Ft.
Myers banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would be 52.8 percent. Applicants' market
share would decrease by 11.6 percentage points to 28.6 percent and
the HHI would increase by 143 points to 1305 upon consummation of
the proposal.
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 the Federal Reserve
Bank of Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
November 4, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker and Governor Wallich.
[SEAL]
Associate
Secretary
JAMES M C A F E E
of the
Board
Continental Illinois Corporation
Chicago, Illinois
Order Approving Acquisition of Banks and a Bank
Holding Company
Continental Illinois Corporation ("Continental" or
"Applicant"), Chicago, Illinois, a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended ("BHC Act" or "Act")
(12 U.S.C. § 1841 et seq.), has applied for the Board's
approval under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire First National Bank of Deerfield ("Deerfield Bank"), Deerfield, Illinois; The First
National Bank of Western Springs ("Western Springs
Bank"), Western Springs, Illinois; and First Suburban
Bank of Olympia Fields, Olympia Fields, Illinois
("Olympia Fields Bank") through the latter's parent
holding company, South Suburban Bancorp, Inc.
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, including the comments submitted at the
September 19, 1986, public meeting on these applications, in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant is the second largest commercial banking
organization in Illinois, controlling total domestic deposits of approximately $8.9 billion, representing 8.7
percent of total deposits of commercial banks in
Illinois.1 Deerfield Bank (deposits of $58.6 million),
Western Springs Bank (with $65.7 million in deposits),
and Olympia Fields Bank (deposits of $31.5 million)
1. Deposit data are as of June 30, 1985.
Legal Developments
control individually and in the aggregate less than 1
percent of total deposits in commercial banks in Illinois. Upon consummation of the acquisition, Applicant would remain the second largest banking organization in Illinois, with deposits of $9 billion,
representing 8.8 percent of total deposits in commercial banks in Illinois.
Applicant's subsidiary banks compete with the
banks to be acquired in the only market in which the
latter operate, the Chicago banking market.2 Applicant
is the second largest of 279 commercial banking organizations in the Chicago market, where its subsidiary
banks control domestic deposits of $8.9 billion, representing 13.3 percent of total deposits in commercial
banks in the market. The banks to be acquired are
among the smaller commercial banking organizations
in the market, controlling domestic deposits of $155.8
million, representing 0.24 percent of total deposits in
commercial banks in the market. Upon consummation
of these acquisitions, Applicant would remain the
second largest commercial banking organization in the
Chicago market and would control approximately 13.6
percent of total deposits in commercial banks in the
market.
The Chicago market is, and would continue to be
after consummation of the proposed acquisitions, an
unconcentrated market.3 Moreover, a large number of
commercial banking organizations would remain in the
Chicago market after the proposed acquisitions. On
the basis of these and all other facts of record, the
Board concludes that consummation of these acquisitions would not have a significant adverse effect on
existing competition in the Chicago market. Accordingly, competitive factors are consistent with approval
of the applications.
Public Meeting
In acting on these applications, the Board has also
reviewed those issues raised by the commenters to
these proposed acquisitions. At the request of certain
of these commenters, a public meeting was held at the
Chicago Reserve Bank during which additional testimony was received into the record regarding the
applications. The Board has carefully reviewed the
2. The Chicago banking market comprises Cook, Lake and DuPage
Counties, all in Illinois.
3. Consummation of the proposed transaction would increase the
market's Herfindahl-Hirschman Index ( " H H I " ) by 6 points, from 715
to 721. The market is considered unconcentrated under the Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984),
and the increase in the HHI resulting from the transaction is not within
the parameters the Department of Justice has stated are likely to result
in its challenging the transaction.
47
issues raised by the commenters, including the public
policy concerns expressed by the commenters regarding the Federal Deposit Insurance Corporation's
("FDIC") ongoing assistance agreement with Applicant. In particular, certain commenters have objected
to: the propriety of Applicant's proposed expansion
plans while the institution is still funded in part by the
FDIC; the suspension of FDIC insurance premium
rebates, which certain commenters contend was
caused in whole or in part by the necessity to provide
assistance to Continental; and the issue of unfair
competition with what certain commenters have characterized as the unlimited financial resources of a
nationalized bank. On the basis of these public policy
considerations, the commenters have requested that
the Board deny these applications.
Continental's new management has demonstrated a
capacity to run Continental in a satisfactory manner.
Based on normal measures, including the investment
by the FDIC in 1984, Continental possesses adequate
capital in terms of other similarly sized and situated
bank holding companies. Moreover, no competitive
issues within the scope of section 3 of the BHC Act are
raised by the proposed acquisitions. In that sense, all
the statutory factors required to be considered under
the Act are satisfied.
The comments to these applications, however, raise
significant issues of public policy, outlined above,
which are not susceptible to easy resolution. On
balance, the Board believes that public policy considerations weigh in favor of approval. These applications
represent a reasonable interim step toward the banking
regulators' agreed goal of restoring Continental to a
competitive private status consistent with a business
plan established by management and subject to review
by the FDIC, the Comptroller of the Currency, and the
Board.
The commenters' concerns in essence involve the
propriety of Continental's proposed expansion plans
while still receiving FDIC assistance. Under the Federal Deposit Insurance Act ("FDI Act"), however,
Congress clearly contemplated and provided for FDIC
assistance to financially troubled, open banks, including assistance through the purchase by the FDIC of
securities in a troubled banking organization, as was
done in this case. The standard under which FDIC
assistance may be provided, moreover, clearly contemplates that FDIC assistance is intended either to
maintain a bank's service to the community or, in the
case of a closed bank, to restore the bank to normal
operation.
In this instance, the FDIC made the requisite findings required by the FDI Act, specifically that: the
continued operation of Continental was essential to
provide adequate banking services in its community,
48
Federal Reserve Bulletin • January 1987
the granting of assistance was in the best interest of the
public and the depositors of Continental; and the
assistance was granted to prevent the closing of Continental. The Board notes that there exists no statutory
limitation in the FDI Act on the ability of a bank
receiving FDIC assistance to expand or otherwise to
compete with non-assisted banks on an equal basis.
Implicit in the provision of FDIC open-bank assistance, with no other statutory restraints imposed, is
the conclusion that Congress intended that assisted
banks would function normally, thereby assisting the
FDIC in its attempts to minimize any potential loss as
a result of the assistance provided, and enabling the
assisted institution to continue to provide service to its
community. Indeed, as noted, the FDI Act contemplates that FDIC assistance is for the purpose of
restoring a closed bank to "normal operation."
The applications before the Board are well within
the scope of normal operations for Continental as
compared to the activities of other area banks and with
respect to its present financial standing. Recent
changes in Illinois banking law have allowed banking
organizations in Illinois and the Midwest to expand in
Illinois by acquiring existing banks. As a result, large
banking organizations in the City of Chicago and other
markets in the area have expanded, and continue to
expand, into the Chicago suburbs. Indeed, Continental's expansion as represented by these applications is
rather modest in comparison to recently completed
and proposed acquisitions by others. Also, it is important to note that since the Applicant received assistance from the FDIC in 1984 its financial condition has
significantly improved, with this improvement signalled in part by a decrease in its reliance on purchased funds.
Applicant has stated that these acquisitions would
render Continental a more attractive and stronger
financial institution and indeed hasten its return to
private ownership. In this regard, the Board notes that
the process of privatization has already begun with the
announcement by the FDIC on October 16, 1986, of its
intention to sell approximately 30 percent of its interest in Continental before the end of 1986. Thus, these
acquisitions appear well within the scope of normal
operations for Continental while enhancing the schedule for returning the organization to private ownership.
The burden of the commenters case is that the
federal assistance provided to Continental provides an
unfair competitive advantage and that expansion activities of a company receiving this assistance should be
restrained. It is, of course, fundamental that governmental assistance to particular private enterprises ordinarily be avoided to assure that competition is
undistorted by government intervention. Neverthe
less, it is also well established that in specific and
limited circumstances government assistance for private enterprises can be appropriate, and that is clearly
the case here with respect to FDIC assistance for a
failing bank. Limitations on some activities of an
institution receiving government assistance, including
certain kinds of aggressive expansion or risk taking,
may be appropriate in some situations. The particular
applications involved here do not cross these particular thresholds of concern. The limited geographic
expansion permitted by the proposed acquisitions,
consistent with changes in Illinois law, is in accordance with normal and prudent banking practices, and
takes place in the context of an overall substantial
downsizing of the institution. The proposed applications would clearly further the stated goals of the FDI
Act and regulators' announced intention in carrying
out the mandate of that Act; that is, of restoring
Continental to a "viable, self-financing entity." 4
Accordingly, based upon a review of the record
under the statutory factors set forth in the BHC Act,
the Board finds that the financial and managerial
resources and future prospects of Applicant, its subsidiary banks, and the banks to be acquired, are
consistent with approval. Considerations relating to
the convenience and needs of the communities to be
served also are consistent with approval of the applications.
Based upon the foregoing and other facts of record,
including its resolution of those issues of public policy
raised by the commenters to these proposals, 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,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 4, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson and Seger. Voting against this action: Governor
Angell. Abstaining from this action: Governors Rice and
Heller. Absent and not voting: Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
4. Permanent Assistance Program for Continental Illinois Bank
and Trust Company (Joint Press Release of OCC, FDIC, and Federal
Reserve Board) at 1 (July 26, 1984).
Legal Developments
Dissenting Statement of Governor Angell
I believe that, as a matter of public policy, any
expansion by an FDIC-assisted banking organization
should take place only after restoration of the institution to full private ownership. Accordingly, I vote to
deny these applications.
November 4, 1986
First Kentucky National Corporation
Louisville, Kentucky
Order Approving Acquisition of a Bank
First Kentucky National Corporation, Louisville,
Kentucky, a bank holding company within the meaning of the Bank Holding Company Act ("Act")
(12 U.S.C. § 1841 et seq.), has applied for the Board's
approval under section 3 of the Act (12 U. S. C. § 1842)
to acquire 100 percent of the voting shares of Mutual
Trust Bank, New Albany, Indiana ("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
(51 Federal Register 29,309 (August 15, 1986)). 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.
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 a bank located outside the bank holding company's home state, 1 unless the state where the bank to
be acquired is located has specifically authorized the
acquisition by language to that effect and not merely
by implication. The Board has previously determined
that Indiana has by statute expressly authorized a
Kentucky bank holding company, such as Applicant,
to acquire an Indiana bank or bank holding company,
such as Bank. 2 Accordingly, approval of Applicant's
proposal to acquire Bank is not barred by the Douglas
Amendment.
Applicant, the largest commercial banking organization in Kentucky, controls six subsidiary banks with
total deposits of $3.3 billion, representing 13.8 percent
1. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842(d).
2. Citizens Fidelity Corporation, 72 FEDERAL RESERVE BULLETIN
576 (1986); Ind. Code § 28-2-15-18(e) (effective January 1, 1986).
49
of the total deposits in commercial banks in the state. 3
Bank is the 77th largest commercial banking organization in Indiana and controls deposits of $105.7 million,
representing 0.3 percent of the total deposits in commercial banks in Indiana. Because Applicant does not
operate in Indiana, consummation of the proposal
would have no effect on the concentration of banking
resources in Indiana.
Applicant and Bank compete directly in the Louisville, Kentucky, banking market. 4 Applicant is the
second largest commercial banking organization in the
market, with total deposits of $2.5 billion, representing
31.7 percent of the total deposits in commercial banks
in the market. Bank is the seventh largest commercial
banking organization in the market, controlling 1.4
percent of the total deposits in commercial banks in
the market. After consummation of the proposal,
Applicant's share of the deposits in commercial banks
in the market would be 33.1 percent. The share of
deposits held by the four largest commercial banking
organizations in the market would increase from 88.9
percent to 90.3 percent and the Herfindahl-Hirschman
Index ("HHI") would increase by 86 points to 2582.5
Although consummation of the proposal would eliminate some existing competition between Applicant
and Bank in the Louisville, Kentucky, market, numerous other commercial banking organizations would
remain as competitors after consummation of the
proposal. In addition, the Board has considered the
presence and competition afforded by thrift institutions in its analysis of this proposal. 6 Eight thrift
institutions compete with commercial banks in the
Louisville banking market and account for 22.7 percent of the total deposits in the market. Thrift institutions already exert a considerable competitive influ-
3. Deposit data refer to total domestic deposits as of December 31,
1985, and reflect bank holding company acquisitions approved as of
August 25, 1986.
4. The Louisville banking market is approximated by the Louisville, Kentucky RMA plus the non-RMA portion of Clark County,
Indiana.
5. Under the revised Department of Justice Merger Guidelines
(49 Federal Register 26,823 (June 29, 1984)) ("Guidelines"), a market
in which the post-merger HHI is over 1800 is considered highly
concentrated. In such a market, the Department is likely to challenge
a merger that produces an increase in the HHI of more than 50 points.
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 anticompetitive effects) unless the post-merger HHI
is at least 1800 and the merger increases the HHI by at least 200
points.
6. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
BULLETIN 743 (1984); NCNB Corporation, 70 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation,
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
50
Federal Reserve Bulletin • January 1987
ence in the market as providers of NOW accounts and
consumer loans. In addition, most of these institutions
provide commercial and industrial loans in addition to
traditional thrift services. Based upon the above considerations, the Board concludes that consummation
of the proposal is not likely substantially to lessen
competition in the Louisville banking market. 7
The financial and managerial resources of Applicant, its subsidiaries and Bank are 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 proposed acquisition is in the public interest and
that the application should be, and hereby is, approved.
On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth
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 St.
Louis pursuant to delegated authority.
By order of the Board of Governors, effective
November 7, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Rice, Seger, Angell, and Heller. Absent and not
voting: Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
James Madison Limited
Washington, D.C.
Notice of the application, 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 application and all comments received
in light of the factors set forth in section 3(c) of the
Act.
Applicant, a one-bank holding company, is the
seventh largest commercial banking organization in
the District of Columbia ("District"). Its subsidiary
bank controls total domestic deposits of $360.7 million, representing 3.5 percent of the total deposits in
commercial banks in the District. Bank is the 18th
largest commercial banking organization in Virginia,
controlling total domestic deposits of $114.5 million,
representing 0.3 percent of the total deposits in commercial banks in Virginia.1
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." 3
The statute laws of Virginia authorize the acquisition of a bank or bank holding company in Virginia by
a bank holding company located in another state in a
defined southeastern region, including the District, if
the laws of that state permit Virginia bank holding
companies to acquire banks and bank holding companies in that state. The District has enacted a similar
regional interstate banking statute, which permits the
acquisition of a District bank holding company or bank
by a bank holding company located in Virginia.4
The Virginia Commissioner of Financial Institutions
has determined that the District statute satisfies the
requirements of Virginia Code § 6.1-399.5 Based on
Order Approving Acquisition of a Bank
James Madison Limited, Washington, D.C., 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 the successor by merger to The McLean Bank,
McLean, Virginia ("Bank").
7. If 50 percent of deposits held by thrift institutions in the
Louisville banking market were included in the calculation of market
concentration, the share of total deposits held by the four largest
organizations in the market would be 77.9 percent. Applicant's market
share would increase by 1.2 percentage points to 28.8 percent and the
HHI would increase by 66 points to 1969 upon consummation of the
proposal.
1. Deposit data are as of December 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 the date on which the
company became a bank holding company, whichever is later. Applicant's home state is the District of Columbia.
3. Virginia Code § 6.1-398 et seq. (Supp. 1985). The states in the
region defined by Virginia law include Alabama, Florida, Georgia,
Louisiana, Maryland, Mississippi, North Carolina, South Carolina,
Tennessee, Virginia, and West Virginia, in addition to the District of
Columbia.
4. District of Columbia Regional Interstate Banking Act of 1985,
1985 D.C. Law 6-63, as amended by the District of Columbia Regional
Interstate Banking Act of 1985 Amendments Act of 1985, D.C. Law 6 276.
5. This determination was made on October 31, 1986, in connection
with an application by Riggs National Corporation, Washington, D.C.
to acquire Guaranty Bank and Trust Company, Fairfax, Virginia.
Legal Developments
the foregoing, the Board has determined that the
proposed acquisition is specifically authorized by the
statute laws of Virginia and is thus permissible under
the Douglas Amendment, subject to Applicant's receipt of the approval of the Virginia Commissioner of
Financial Institutions pursuant to Virginia Code
§ 6.1-399. The Board's Order is specifically conditioned upon satisfaction of the state regulatory approval requirement.
Applicant's subsidiary bank competes with Bank in
the Washington, D.C., banking market. 6 Applicant is
the 14th largest of 70 commercial banking organizations in the Washington, D.C., market, and controls
deposits of $360.7 million, representing 1.4 percent of
the total deposits in commercial banks therein. 7 Bank
is the 26th largest commercial banking organization in
the market, controlling domestic deposits of $98.0
million, representing 0.4 percent of the total deposits
in commercial banks in the market. Upon acquisition
of Bank, Applicant would become the 12th largest
commercial banking organization in the Washington,
D.C., market and would control 1.8 percent of the
total deposits in commercial banks in the market.
The Washington, D.C., banking market is unconcentrated, and would remain unconcentrated after
consummation of the proposed acquisition. The share
of deposits held by the four largest commercial banking organizations in the market is 50.4 percent and the
Herfindahl-Hirschman Index for the market is 816.8
Moreover, a large number of commercial banking
organizations would remain in the Washington, D.C.,
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, D.C., market.
The financial and managerial resources and future
prospects of Applicant, Bank, 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.
Based on the foregoing and other facts of record, the
Board has determined that this application should be,
and hereby is, approved, subject to the express condi-
6. 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.
7. Market data are as of June 30, 1985.
8. Consummation of the proposed transaction would increase the
market's Herfindahl-Hirschman Index by 1 point. Thus, the transaction is not likely to be challenged by the Department of Justice under
its merger guidelines, 49 Federal Register 26,823 (1984).
51
tion that Applicant obtain the approval of the Virginia
Commissioner of Financial Institutions pursuant to
section 6.1-399 of the Virginia Code. The acquisition
of Bank shall not be consummated before the thirtieth
calendar day following the effective date of the Order,
or later than three months after the effective date of
the Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 3, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, Angell, and Heller. Absent and not voting:
Chairman Volcker and Governor Wallich.
JAMES M C A F E E
[SEAL]
Associate
Secretary
of the
Board
Keystone Financial, Inc.
State College, Pennsylvania
Order Approving Merger of Bank Holding
Companies
Keystone Financial, Inc., State College, Pennsylvania, a bank holding company within the meaning of the
Bank Holding Company Act of 1956, as amended
("BHC Act") (12 U.S.C. § 1841 et seq.), 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 Pennsylvania National Financial Corp., Harrisburg, Pennsylvania ("PNFC"), and thereby indirectly to acquire Pennsylvania National Bank and Trust Company,
Pottsville, Pennsylvania ("PNB"), and Hamburg Savings and Trust Company, Hamburg, Pennsylvania
("Hamburg").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC 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 BHC Act (12 U.S.C. § 1842 (c)).
Applicant is the 13th largest commercial banking
organization in the state, holding deposits of $1.2
billion, representing 1.3 percent of total deposits in
commercial banks in the state. 1 PNFC is the 23rd
largest commercial banking organization in the state,
controlling deposits of $559.1 million, representing 0.6
1. All banking data are as of December 31, 1985, unless otherwise
specified.
52
Federal Reserve Bulletin • January 1987
percent of total deposits in commercial banks in the
state. Upon consummation of this proposal, Applicant
would become the 12th largest banking organization in
the state and would control less than 2 percent of
deposits in commercial banks in the state. Consummation of the proposal would not have a significant
adverse effect on the concentration of banking resources in the state.
Applicant's subsidiary banks compete directly with
PNFC's subsidiary banks in two markets: the Scranton/Wilkes-Barre and the Northumberland County
markets. In the ScrantonAVilkes-Barre market,2 Applicant is the 33rd largest of 37 commercial banking
organizations, with total deposits of $20 million, representing 0.3 percent of total deposits in commercial
banks in the market.3 PNFC is the 35th largest commercial banking organization in the market, with total
deposits of $7.2 million, representing 0.1 percent of
total deposits in commercial banks in the market. The
ScrantonAVilkes-Barre market is considered moderately concentrated, with the four largest banks controlling 58.2 percent of the deposits in commercial
banks in the market. The Herfindahl-Hirschman Index ("HHI") for the market is 1027, and would
increase by 1 point upon consummation of the proposal.4 Based upon the number of commercial banking
organizations that would remain in the market after
consummation and the small increase in Applicant's
market share, the Board concludes that consummation
of the proposal is not likely to substantially lessen
competition in the Scranton/Wilkes-Barre market.
In the Northumberland County market,5 Applicant
is the second largest of 14 commercial banking organizations, with total deposits of $136.2 million, representing 21.8 percent of the deposits in commercial
banks in the market. PNFC's subsidiary banks rank
fourth in the market, with $47.6 million in deposits,
2. The Scranton/Wilkes Barre market is defined by the Scranton/
Wilkes Barre Metropolitan Statistical Area ("MSA") and includes
Luzerne, Lackawanna, Columbia, Monroe, and Wyoming counties in
Pennsylvania.
3. Market data are as of June 30, 1985, and account for all
acquisitions that have been consummated as of July 31, 1986.
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 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
records indicate that the merger is not likely substantially to 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 effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by at
least 200 points.
5. The Northumberland market is approximated by Northumberland County, Pennsylvania.
representing 7.6 percent of the total deposits in commercial banks in the market. The Northumberland
banking market is considered to be moderately concentrated, with the four largest commercial banks
controlling 62.9 percent of the deposits. The HHI for
the market is 1404, and would increase by 332 points
upon consummation of the proposal.
Although consummation of the proposal would eliminate some existing competition between Applicant
and PNFC in the Northumberland banking market,
numerous other commercial banking organizations
would remain as competitors in the market. In addition, the presence of four thrift institutions, controlling
approximately 20.9 percent of the market's total deposits, mitigates the anticompetitive effects of the
transaction.6 Thrift institutions already exert a considerable competitive influence in the market as providers of NOW accounts and consumer loans. Based
upon the above considerations, the Board concludes
that consummation of the proposal is not likely to
substantially lessen competition in the Northumberland County banking market.7
In its evaluation of Applicant's managerial resources, the Board has considered certain violations
by PNFC's lead bank, PNB, of the Currency and
Foreign Transactions Reporting Act ("CFTRA") and
the regulations thereunder.8 PNB has taken remedial
action as a result of the discovery of these violations.
Applicant has committed to implement its compliance
program at PNB within 30 days of consummation and
to undertake a compliance review at PNB within 120
days of consummation.
Based on the foregoing and other facts of record, the
Board concludes that the financial and managerial
resources and future prospects of Applicant and
PNFC are considered satisfactory and consistent with
approval.
In considering the convenience and needs of the
communities to be served, the Board has considered
the records of PNFC's bank subsidiaries under the
6. The Board has previously indicated that thrift institutions have
become, or have the potential to become, major competitors of
commercial banks. National City Corporation, 70 FEDERAL RESERVE
BULLETIN 743 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL
RESERVE BULLETIN 802 (1983); First Tennessee National Corporation,
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
7. If 50 percent of deposits held by thrift institutions in the
Northumberland banking market were included in the calculation of
market concentration, the share of total deposits held by the four
largest organizations in the market would be 59.3 percent. Applicant
would control 19.3 percent of the market's deposits and PNFC would
control 6.8 percent of the market's deposits. The HHI would increase
by 263 points to 1474.
8. 31 U.S.C. § 5311 et seq.; 31 C.F.R. § 103.
Legal Developments
Community Reinvestment Act ("CRA") (12 U.S.C.
§ 2901 et seq.). The CRA requires federal bank supervisory agencies to encourage financial institutions to
help meet the credit needs of the local communities in
which they are chartered, consistent with the safe and
sound operation of such institutions. To accomplish
this objective, the CRA requires the appropriate federal banking agency to assess the records of banks in
meeting the credit needs of their entire communities,
including low- and moderate-income neighborhoods,
consistent with their safe and sound operation, and to
take those records into account in its evaluation of
bank holding company applications.
With regard to PNB's CRA record, the Board has
considered the comments of the Harrisburg Fair Housing Council, Inc., Harrisburg, Pennsylvania ("Protestant"). In accordance with the Board's practice and
procedures for handling protested applications,9 the
Board reviewed the CRA record of Applicant and
PNFC's banking subsidiaries, the information provided and allegations made by Protestant, and Applicant's response.
Protestant initially raised 37 issues concerning
PNB's CRA performance. After a series of private
meetings between Protestant and PNB to discuss and
clarify the issues, only four points remain. PNB has
prepared a comprehensive proposal in response to
Protestant's concerns, which Applicant and PNB intend to implement following consummation of the
merger. The proposal is a partnership between the
parties, and includes many provisions responsive to
Protestant's concerns, including: establishing flexible
credit standards; providing conventional and federally
sponsored or subsidized home mortgage loan programs; offering credit-counseling services ; considering
financing joint venture partnerships involving community-based organizations; providing small business and
SBA lending; establishing a community relations officer; marketing affirmatively PNB's lending programs;
upgrading the Allison Hill branch office services;
instituting a community review council with representatives of community organizations and PNB to review
PNB's lending programs and implementation of various provisions of the proposal; and enhancing PNB's
CRA compliance. This proposal is, in the Board's
view, responsive to the issues raised by Protestant,
and is more comprehensive in scope than many of the
agreements that the Board has taken into consideration in previous cases involving CRA issues.
9. 12 C.F.R. § 262.25.
53
The record supports a finding that the CRA records
of the banking subsidiaries of Applicant and PNFC are
consistent with approval of the application. The Office
of the Comptroller of the Currency ("OCC") has
previously determined that the CRA record of the
subsidiary banks of Applicant and PNFC are satisfactory. In addition, an analysis of Home Mortgage
Disclosure Act data shows that PNB has a satisfactory
home mortgage lending record within the City of
Harrisburg, in the surrounding area, and in the minority areas within the City of Harrisburg, for its size and
market share. Finally, Applicant and PNB have shown
a willingness to meet and engage in constructive
discussions with Protestant.
Thus, based on all the facts of record, the Board
believes that the CRA records of the subsidiary banks
of Applicant and PNFC are consistent with approval
of this application.
Accordingly, based on all of the evidence, including
the commitments and representations by Applicant
and PNB to the Board, the Board concludes that
convenience and needs considerations are consistent
with approval of this application.10
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
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 Philadelphia, acting
pursuant to delegated authority.
By order of the Board of Governors, effective
November 17, 1986.
Voting for this action: Chairman Volcker and Governors
Rice, Angell, and Heller. Absent and not voting: Governors
Johnson, Wallich, and Seger.
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
10. The Board has also considered Protestant's request for a public
hearing. The Board finds that Protestant and Applicant have had
ample opportunity to submit materials in order to clarify factual
questions and that Protestant has not identified remaining material
questions of fact that would render a hearing appropriate. In light of
this and the representations and commitments made by Applicant in
response to Protestant's comments, the Board has determined to deny
Protestant's request for a public hearing.
54
Federal Reserve Bulletin • January 1987
The Marine Corporation
Milwaukee, Wisconsin
Order Approving Acquisition of a Bank Holding
Company
The Marine Corporation, Milwaukee, Wisconsin
("Marine"), a bank holding company within the meaning of the Bank Holding Company Act (12 U.S.C.
§ 1841 et seq.) ("BHC Act") has applied for the
Board's approval under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire Community State
Agency, Inc., Bloomington, Minnesota ("Company"), and thereby indirectly acquire Community State
Bank of Bloomington, Minneapolis, Minnesota
("Bank").
Notice of the application, affording an opportunity
for interested persons to submit comments, has been
given in accordance with section 3(b) of the BHC 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 BHC Act (12 U.S.C. § 1842(c)).1
Section 3(d) of the BHC Act, the Douglas Amendment (12 U.S.C. § 1842(d)), prohibits the Board from
approving any application by a bank holding company
to acquire a bank located outside the holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in which
such bank is located, by language to that effect and not
merely by implication." 2 The statute laws of Minnesota authorize bank holding companies located in "reciprocating states" to acquire a Minnesota bank with the
approval of the Commissioner of Commerce of the
State of Minnesota. 3 A "reciprocating state" is defined as a state that authorizes the acquisition of banks
in that state by a bank or bank holding company
located in Minnesota "under conditions substantially
similar to those imposed by Minnesota" as determined
by the Minnesota Commissioner of Commerce, and is
limited to Iowa, North Dakota, South Dakota, and
Wisconsin.4
1. The Board received a protest from the Harambee Ombudsman
Project, Inc. ("Protestant"), a community group, which challenged
Applicant's record of meeting the credit needs of its community under
the Community Reinvestment Act. Protestant withdrew its protest
after several meetings with Applicant which resulted in an agreement
by Applicant to institute a comprehensive program of services in
Protestant's area.
2. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries are
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 Wisconsin.
3. Minn. Stat. § 48.90 et seq. (1986).
4. Minn. Stat. § 48.92:7.
On April 30, 1986, Wisconsin enacted comprehensive banking legislation that includes authority for
bank holding companies in a region that includes
Minnesota to acquire banks and bank holding companies in Wisconsin. The Wisconsin statute specifically
states that the interstate banking provisions do not
apply until January 1, 1987.5 Based on the foregoing,
the Board has determined, as required by the Douglas
Amendment, that, as of January 1, 1987, the proposed
acquisition is specifically authorized by the statute
laws of Minnesota and is thus permissible under the
Douglas Amendment, subject to Applicant's obtaining
the approval required pursuant to section 48.93 of the
Minnesota statutes.
Marine is the third largest banking organization in
Wisconsin, operating 21 subsidiary banks with total
deposits of $3.3 billion, representing approximately
10.5 percent of the total deposits in commercial banks
in Wisconsin. 6 Company is the tenth largest banking
organization in Minnesota, operating one banking subsidiary with total deposits of $161.8 million, representing 0.5 percent of total deposits in commercial banks in
Minnesota. 7
Marine does not provide banking services in the
Minneapolis-St. Paul, Minnesota, banking market 8
where Bank competes, nor elsewhere in Minnesota.
The Minnesota interstate banking statute permits
banking organizations from four states, including Wisconsin, to enter Minnesota, and, accordingly, there
are numerous potential entrants into the state and into
the Minneapolis market. Based on the foregoing, the
Board concludes that the proposal would not have any
adverse effects on the concentration of banking resources in any relevant area, and that the proposal
would not result in the elimination of existing or
probable future competition in any relevant market.
The financial and managerial resources and future
prospects of Marine, Company and Bank 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 of the application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved, subject to the express condition that Applicant obtain the approval of the Minnesota Commissioner of Commerce pursuant to section
5. Wis. Stat. Ann. § 221.58(8) (West 1982 & Supp. 1986).
6. Wisconsin banking data are as of December 31, 1985.
7. Minnesota banking data are as of June 30, 1985.
8. The Minneapolis-St. Paul banking market is approximated by the
Minneapolis-St. Paul RMA, adjusted to include all of Carver and Scott
Counties, Minnesota, and Lanesburgh Township in LeSueur County,
Minnesota.
Legal Developments
48.93 of the Minnesota statutes, and the proposal not
be consummated before January 1, 1987, the effective
date of the Wisconsin statute. This transaction shall
also not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 26, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, and Heller. Absent and not voting: Chairman Volcker and Governors Wallich and Angell.
BARBARA R . LOWREY
[SEAL]
Associate
Secretary of the Board
The One Bancorp
Portland, Maine
Order Approving Acquisition of Bank
The One Bancorp, Portland, Maine, has applied for
the Board's approval under section 3(a)(3) of the Bank
Holding
Company
Act
("Act")
(12 U.S.C.
§ 1842(a)(3)), to acquire all of the outstanding voting
shares of the successor by merger to the Bank of
Hartford, Inc.,
S.A., Hartford,
Connecticut
("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 (12 U.S.C. § 1842(c)).
On the basis of the record, the application is approved for the reasons set forth in the Board's Statement, which will be released at a later date. This
approval is subject to Applicant's compliance with all
state and federal requirements necessary for consummation of the acquisition.
By order of the Board of Governors, effective
November 7, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Rice, Seger, Angell, and Heller. Absent and not
voting: Governor Wallich.
Rainier Bancorporation
Seattle, Washington
Order Approving Acquisition of Bank
Rainier Bancorporation, Seattle, Washington, a bank
holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. §§ 184148, has 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 Mount Hood Security Bank,
Gresham, Oregon.
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).
On the basis of the record, the application is approved for the reasons set forth in the Board's Statement, which will be released at a later date.
By order of the Board of Governors, effective
November 14, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Rice, and Angell. Absent and not voting: Governors
Wallich, Seger, and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
STATEMENT BY BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM REGARDING THE
APPLICATION OF RAINIER BANCORPORATION TO
ACQUIRE MOUNT HOOD SECURITY BANK
By Order dated November 14, 1986, the Board approved the application of Rainier Bancorporation,
Seattle, Washington, to acquire Mount Hood Security
Bank, Gresham, Oregon ("Mount Hood Bank"), pursuant to section 3(a)(3) of the Bank Holding Company
Act ("BHC Act" or "Act"). 12 U.S.C. § 1842(a)(3).
In this Statement the Board sets forth its reasons for
approving the application.
Applicant's lead bank, Rainier National Bank, Seattle, Washington ("Rainier Bank"), is the second largest commercial banking organization in Washington,
with deposits of $5.4 billion, representing 22.7 percent
of the total deposits in commercial banks in the state. 1
JAMES M C A F E E
[SEAL]
Associate Secretary of the Board
55
1. Statewide deposit data are as of June 30, 1986.
56
Federal Reserve Bulletin • January 1987
Mount Hood Bank is the thirty-fifth largest commercial bank in Oregon, with deposits of $19 million,
representing 0.1 percent of the total deposits in commercial banks in the state.
Under section 3(d) of the BHC Act, the Douglas
Amendment, a bank holding company may not acquire
a bank located outside of the bank holding company's
home state unless the acquisition is "specifically authorized by the statute laws of the state in which such
bank is located, by language to that effect and not
merely by implication."2 12 U.S.C. § 1842(d). An
Oregon statute that became effective on July 1, 1986,
authorizes a Washington bank holding company, with
the permission of the Oregon Banking Supervisor, to
"acquire . . . the capital stock" of "a bank that has
been engaged in the business of banking for . . . not
less than three years prior to the effective date of the
acquisition," or of a phantom institution that "has
merged with or acquired . . . the capital stock" of such
a bank. Or. Rev. Stat. § 715.065(1); see id.
§§ 706.005(29), 707.029(l)(c). There is no requirement
of reciprocity.
Mount Hood Bank has been "engaged in the business of banking" since 1982. Applicant would acquire
the bank's stock by having the bank merge into Rainier
Bank Oregon, N.A., a phantom institution wholly
owned by Applicant. The Oregon Banking Supervisor
approved the proposed acquisition on November 7,
1986, expressly concluding that Applicant had "met
the criteria as set out in ORS 715.065 to control and
operate [Mount Hood Bank] in a legal and proper
manner." Accordingly, the Board concludes that the
acquisition is specifically authorized by Oregon statute, and permissible under the Douglas Amendment.
Applicant competes with Mount Hood Bank in the
Portland, Oregon, banking market, the only market in
which Mount Hood Bank operates.3 Rainier Bank is
the ninth largest of 26 commercial banking organizations in the market, with deposits of $63 million,
representing 1.0 percent of the total deposits in commercial banks in the market. Mount Hood Bank is the
seventeenth largest commercial banking organization
in the market, with deposits of $17 million, representing 0.3 percent of the total deposits in commercial
banks in the market. Upon acquiring Mount Hood
2. A bank holding company's home state is the state in which the
operations of the bank holding company's subsidiary banks were
principally conducted on July 1, 1966, or on the date on which the
company became a bank holding company, whichever is later.
3. The Portland banking market is coextensive with the Portland,
Oregon, RMA. It consists of Multnomah County and parts of Clackamas, Columbia, Marion, Washington, and Yamhill Counties, all in
Oregon; and part of Clark County, Washington. Rainier Bank has a
branch in the Washington portion of the market.
Market data are as of June 30, 1985.
Bank, Applicant would continue to be the ninth largest
commercial banking organization in the market and
would control 1.3 percent of the total deposits in
commercial banks in the market.
Although the Portland banking market is concentrated, with a Herfindahl-Hirschman Index ("HHI") of
2419,4 the proposed acquisition would increase the
HHI by less than 1 point. Moreover, 25 commercial
banking organizations would remain in the market
after the acquisition. Based on these and other facts of
record, the Board concludes that the acquisition would
have no significant adverse effect on existing competition in the market. As there are numerous other
potential entrants into the market, the Board concludes that the acquisition would have no significant
adverse effect on probable future competition.
The financial and managerial resources and future
prospects of Applicant and its subsidiary banks and of
Mount Hood Bank are generally satisfactory and consistent with approval of the application.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records under the Community Reinvestment Act ("CRA"), 12 U.S.C. §§ 2901-05, of Applicant's subsidiary banks and of Mount Hood Bank. The
CRA requires the federal bank supervisory agencies to
encourage banks to help meet the credit needs of the
local communities in which they are chartered, consistent with the banks' safe and sound operation. To
that end, the CRA requires the appropriate bank
supervisory agency to assess a bank's record in meeting the credit needs of its entire community, including
low- and moderate-income neighborhoods, and requires the Board to take such records into account in
evaluating a bank holding company's application to
acquire a bank.
In reviewing the CRA record of Rainier Bank, the
Board has considered the comments of two protesting
community organizations, South End Seattle Community Organization, and South East Effective Development, both of Seattle, Washington (together "Protes-
4. 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. The Guidelines
state that the Department is likely to challenge a merger that increases
the HHI in such a market by more than 50 points unless other factors
indicate that the merger will not substantially lessen competition.
However, the Department has informed the Board that a bank merger
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.
5. Pursuant to section 262.3(e) of its Rules of Procedure, the Board
has also considered similar comments by the Oregon State Public
Interest Research Group, Portland, Oregon ("OSPIRG"), which were
submitted after the close of the comment period.
Neither OSPIRG nor any other commenter has challenged the CRA
record of Mount Hood Bank.
Legal Developments
tants"). 5 Protestants have generally raised concerns
about whether Rainier Bank has been meeting the
needs of their neighborhood, the South End of Seattle
("South End"). 6
In accordance with the Board's practice and procedures for handling protested applications, 12 C.F.R.
§ 262.25, the Board has reviewed Rainier Bank's CRA
record, the information provided and allegations made
by Protestants, and Applicant's responses. The Board
notes that Applicant and Protestants met on July 14,
22, and 29, 1986, and met with officers of the Federal
Reserve Bank of San Francisco ("Reserve Bank") on
August 28 and September 4, 1986, to clarify the issues
and provide a forum for resolving differences.
The Office of the Comptroller of the Currency
("OCC") has previously determined that the CRA
record of each of Applicant's subsidiary banks is
satisfactory. 7
The Board has examined the mortgage and home
improvement lending data available under the Home
Mortgage Disclosure Act ("HMDA"), 12 U.S.C.
§§ 2801-11, and concluded that those data do not
indicate that Rainier Bank has neglected the South
End in favor of other areas or neglected low- and
moderate-income census tracts (whether in the South
End or in the Seattle MSA generally) in favor of upperincome census tracts. Rainier Bank's mortgage loans
in low- and moderate-income census tracts are generally in proportion to its overall mortgage lending. In
addition, pursuant to section 228.8(c) of the Board's
Regulation BB, 12 C.F.R. § 228.8(c), the Board has
accorded considerable weight to the mortgage and
home improvement lending record of Rainier Mortgage Company, Seattle, Washington, a nonbank subsidiary of Applicant.
The Board has also considered favorably the fact
that Applicant has several programs that are specifically directed toward the development of low- and
moderate-income areas. Through its Home Loan Center, Rainier Bank arranges purchase and rehabilitation
loans on distressed one- to four-family dwellings based
on the value of the property after rehabilitation. The
Board also notes that Rainier Bank's Community
Business Loan Center, which aims at making commercial loans more available to women, minority group
members, and others, and the bank's extensive pro-
6. The Board concludes that Rainier Bank's delineation of the
relevant "community" as King County, Washington, is reasonable,
does not exclude low-to-moderate-income or minority areas, and
complies with applicable regulations. 12 C.F.R. § 25.3. Under that
delineation, Rainier Bank must meet the credit needs of the entire
county, including the South End and the low- and moderate-income
neighborhoods of the county, and must be judged on its overall record
of meeting those needs.
7. No commenter has challenged the CRA record of any subsidiary
of Applicant other than Rainier Bank.
57
gram of making loans guaranteed by the Small Business Administration, are important means of meeting
the credit needs of the community.
In this connection, Applicant has also made a series
of commitments relating to matters such as lending in
the South End, lending in low- and moderate-income
communities, expanding and marketing programs such
as the Home Loan Center and Community Business
Loan Center, implementing an HMDA-type reporting
system for loans made by Applicant's nonbank subsidiaries, and continuing to provide low-cost checking
accounts.
The Board has fully and carefully considered the
various points made by Protestants, and for the reasons indicated above believes that Applicant is taking
appropriate measures to meet community needs. Protestants' major point is that Applicant should agree to
specific lending goals in the South End, including
dollar amounts for particular types of lending and
below-market terms. However, the Board has consistently maintained that neither the CRA nor the BHC
Act requires or authorizes the Board "to dictate a
bank's product mix (which credit or deposit services a
bank should emphasize) or to dictate what proportion
or amount of an institution's funds must, or even
should, be allocated to any particular credit need,
borrower or neighborhood or on what specific terms
credit should be extended." 8 Commerce Bancshares,
Inc., 64 F E D E R A L RESERVE B U L L E T I N 576, 579 (1978);
see Hibernia Corporation,
LETIN
72 FEDERAL RESERVE BUL-
656, 658 (1986).9
Based upon all of the evidence of record, including
Applicant's commitments and Protestants' comments,
the Board concludes that the CRA records of Applicant's subsidiary banks, and convenience and needs
considerations generally, are consistent with approval
8. Petitioners disregard these principles in their attempts to compare Rainier Bank with other financial institutions based on real estate
lending data. "The Board has recognized the importance of, among
other kinds of loans, both mortgage and small business loans in
meeting the requirements of the CRA, and believes that the appropriate mix of these types of loans is a business decision to be made by
banks." Dominion Bankshares Corporation, 72 FEDERAL RESERVE
BULLETIN 787, 789 n.10 (1986).
9. The Board believes that Rainier Bank's check-cashing policy is
not unduly burdensome under the circumstances, given the evidence
of record regarding the ease of obtaining adequate identification at
reasonable cost.
Protestants have offered neither evidence nor arguments to contradict Applicant's contention that Rainier Bank had legitimate business
reasons for reducing services at its Promenade 23 Branch and, under
the circumstances, the Board does not believe that the reduction
reflects adversely on Applicant's service to the convenience and
needs of the community.
58
Federal Reserve Bulletin • January 1987
of the application.10 The Board will review Applicant's
progress in fulfilling its commitments, as well as its
CRA record generally, in connection with any future
application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition shall not be
consummated before the thirtieth calendar day following the effective date of the Order, or later than three
months after the effective date of the Order, unless
that period is extended for good cause by the Reserve
Bank, pursuant to delegated authority, or by the
Board.
November 25, 1986.
BARBARA R . L O W R E Y
[SEAL]
Associate
Secretary of the Board
Suffield Financial Corporation
Suffield, Connecticut
Order Approving Formation of a Bank Holding
Company
Suffield Financial Corporation, Suffield, Connecticut,
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 Suffield Savings Bank, Suffield,
Connecticut ("Bank"). Bank is a state-chartered stock
savings bank, the accounts of which are insured by the
Federal Deposit Insurance Corporation.
Notice of the application, affording opportunity for
interested persons to submit comments, has been
given in accordance with section 3(b) of the Act. The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
The Board has previously determined that a state
savings bank is a "bank" under section 2(c) of the Act
if it accepts demand deposits, engages in the business
of making commercial loans, and is not covered by the
exemption created by the Garn-St Germain Depository Institutions Deregulation Act of 1982 for thrift
institutions insured by the Federal Savings and Loan
Insurance Corporation ("FSLIC") or operating under
a charter by the Federal Home Loan Bank Board. 1
Bank accepts demand deposits and engages in the
business of making commercial loans, and its deposits
are not insured by the FSLIC. Accordingly, Bank is a
"bank" for purposes of the Act, and Applicant's
application to become a bank holding company
through acquisition of Bank has been considered in
light of the requirements of section 3 of the Act
pertaining to the acquisition of banks.
Applicant is a nonoperating corporation with no
subsidiaries, formed for the purpose of acquiring Bank
and Bank's subsidiaries. Bank is the 45th largest
depository institution among commercial banks and
thrift institutions in Connecticut, with deposits of
approximately $199.5 million, controlling 0.4 percent
of the total deposits in commercial banks and thrift
institutions in the state. 2 Bank is the 17th largest
depository institution in the Hartford banking market, 3
controlling 1.2 percent of the total deposits in commercial banks and thrift institutions in the market. 4 Because this proposal involves the formation of a bank
holding company, consummation of the proposal
would not have any significant effect on existing or
probable future competition, nor would it significantly
increase the concentration of banking resources in
Bank's markets or in the State of Connecticut.
Bank engages through wholly owned subsidiaries in
certain real estate investment and development activities and real estate brokerage activities authorized for
Bank pursuant to state law. The Board has requested
comment regarding the permissible scope and extent
of real estate investment and development activities of
holding company banks and their subsidiaries,5 and
regarding the scope of section 225.22(d)(2) of the
Board's Regulation Y, 12 C.F.R. § 225.22(d)(2), which
authorizes state banks owned by bank holding companies to establish wholly owned operating subsidiaries
to engage in activities that the state bank is authorized
1. Excel
Bancorp,
Inc.,
72
FEDERAL RESERVE BULLETIN
731
(1986); First Fidelity Bancorporation, 72 FEDERAL RESERVE BULLETIN 487 (1986); BankVermont Corporation, 70 FEDERAL RESERVE
BULLETIN 829 (1984); The Frankford Corporation, 70 FEDERAL
RESERVE BULLETIN
654 (1984);
The
One
Bancorp,
70
FEDERAL
RESERVE BULLETIN 359 (1984); First NH Banks, Inc., 69 FEDERAL
RESERVE BULLETIN 874 (1983); Amoskeag Bank Shares, Inc., 69
FEDERAL RESERVE B U L L E T I N 8 6 0 ( 1 9 8 3 ) .
10. In considering Protestants' request for a public meeting, the
Board finds that Protestants and Applicant have had ample opportunity to present evidence and arguments in writing and to respond to one
another's submissions, and concludes that the parties' extensive
written submissions have been an adequate means of clarifying the
issues in this case, including the factual questions raised by Protestants. Accordingly, the Board has denied Protestants' request for a
public meeting.
2. Banking data are as of March 31, 1986.
3. The Hartford banking market is defined as the Hartford RMA
minus the Tolland County township of Mansfield and the Windham
County township of Windham, plus the Windham County township of
Ashford, the Hartford County township of Hartland and the Tolland
County township of Union, and the remaining portions of Plymouth
and East Hadden not already included in the RMA.
4. Market data are as of March 31, 1986.
5. 50 Federal Register 4519 (1985).
Legal Developments
to conduct directly under state law. Pending completion of these rulemakings on these issues, the Board
has, in a limited number of instances, permitted statechartered savings banks to continue to engage in real
estate investment and development activities, provided that the savings banks limit the level and scope of
these activities and maintain adequate capital to support the activities.6 Applicant has provided commitments that so limit Bank's real estate activities, and
has committed to conform these activities to the result
of the Board's rulemakings. Applicant has also committed to conform Bank's real estate brokerage activities to the results of the Board's rulemaking concerning the scope of section 225.22(d)(2) of the Board's
Regulation Y, and to any change in Board policy with
respect to real estate brokerage activities engaged in
by state-chartered savings banks and their subsidiaries. The Board notes that Bank's real estate brokerage
subsidiaries do not at any time take an equity position
in real estate. Accordingly, subject to these commitments, the Board has determined that Bank's real
estate investment and development activities and real
estate brokerage activities do not preclude approval of
this application.
The financial and managerial resources and future
prospects of Applicant and Bank are regarded as
satisfactory and consistent with approval of this proposal. 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,
including the commitments made by Applicant, the
Board has determined that the application under section 3 of the Act should be and hereby is approved.
The acquisition of Bank shall not be consummated
before the thirtieth calendar day following the effective
date of this Order or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Boston, pursuant to delegated authority.
By order of the Board of Governors, effective
November 10, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Rice, Angell, Seger, and Heller. Absent and not
voting: Governor Wallich.
JAMES M C A F E E
[SEAL]
6. See,
Associate
e.g.,
Excel
Bancorp,
Inc.,
Secretary of the Board
4 of the
Bank
Signet Banking Corporation
Richmond, Virginia
Order Approving the Acquisition of a Company
Engaged in Providing Financial Advisory Services
Signet Banking Corporation, Richmond, Virginia, a
bank holding company within the meaning of the Bank
Holding Company Act ("Act"), 12 U.S.C. § 1841
et seq., has applied for the Board's prior 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 100 percent of
the voting shares of Corporate Finance Advisors, Inc.,
Richmond, Virginia ("Company"), and to engage
through Company in certain financial advisory services.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (51 Federal Register
35,052, 39,587 (1986)). 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.
Applicant, a bank holding company by virtue of its
ownership of commercial banks in Virginia, Maryland
and the District of Columbia, has total consolidated
assets of $8.5 billion.1 Through its subsidiaries, Applicant currently engages in various permissible nonbanking activities.
Applicant proposes to establish Company de novo
as a financial advisory firm that will provide:
(1) advice regarding the structuring of and arranging
for loan syndications, interest rate "swap," interest
rate "cap," and similar transactions;
(2) advice in connection with merger, acquisition/
divestiture and financing transactions for nonaffiliated financial and nonfinancial institutions;
(3) valuations for nonaffiliated financial and nonfinancial institutions; and
(4) fairness opinions in connection with merger,
acquisition and similar transactions for nonaffiliated
financial and nonfinancial institutions.
None of Applicant's proposed services is included
on the list of permissible nonbanking activities in
Regulation Y, 12 C.F.R. § 225.25(b) et seq. However,
the Board has previously determined by order that the
7 2 FEDERAL RESERVE BULLETIN
731 (1986); First Fidelity Bancorporation,
BULLETIN 4 8 7 ( 1 9 8 6 ) .
Orders Issued Under Section
Holding Company
Act
59
72 FEDERAL RESERVE
1. Data are as of June 30, 1986.
A60 Federal Reserve Bulletin • January 1987
activities described in paragraphs (2), (3) and (4) are
closely related to banking and permissible for bank
holding companies, generally. By order approving the
application of Security Pacific Corporation to acquire
Duff & Phelps, Inc., Chicago, Illinois,2 the Board
determined that banks had extensive experience in
valuing securities within their trust departments, and
that banks typically provided extensive financial advice to customers as part of their commercial lending
services. The Board noted further that a number of
major banks were competitive with Duff & Phelps,
Inc., in offering corporate valuations and financial
feasibility studies for a fee.
Applicant has also requested the Board's approval
for Company to provide advice to institutional customers regarding the structuring of and arranging for loan
syndications and regarding interest rate "swap" and
"cap" transactions.3 Applicant states that the proposed advice would be provided mainly to corporate
and institutional clients in Virginia, Maryland and the
District of Columbia. Applicant further states that
Company will provide advice only; Company will not
broker interest rate transactions, nor will it participate
in the lending for any syndication.
In order to determine if an activity is closely related
to banking under section 4(c)(8) of the Act, the Board
has relied on guidelines established by the federal
courts.4 Under these guidelines, an activity may be
found to be closely related to banking if it is demonstrated:
(1) that banks generally have, in fact, provided the
proposed services;
(2) that banks generally provide services that are
operationally or functionally so similar to the proposed services as to equip them particularly well to
provide the proposed services; or
(3) that banks generally provide services that are so
integrally related to the proposed services as to
require their provision in a specialized form.
The Board also may consider other factors in determining whether an activity is closely related to bank-
2. Security Pacific Corporation, 71 FEDERAL RESERVE BULLETIN
118 ( 1 9 8 5 ) .
3. Applicant defines interest rate "swap" transactions as: contractual agreements between parties to exchange interest payments (rather than principal) based upon an assumed principal amount, various
interest rate indices, and a predetermined time period. Applicant
describes interest rate " c a p s " as: contractual agreements wherein the
seller of a cap agrees to make payment to the purchaser of a cap, if a
particular interest rate index (prime) exceeds a predetermined level,
with payments calculated on an assumed principal amount for a
deferred time period. Both " c a p s " and "swaps" are typically used by
institutions to manage or hedge outstanding positions in the financial
markets.
4. National Courier Association v. Board of Governors, 516 4.2d
1229 (D.C. Cir. 1975).
ing and has stated that it will consider evidence of any
reasonable connection to banking in making its analysis.5 In addition, section 225.21(a)(2) of Regulation Y
permits a bank holding company to engage in incidental activities that are necessary to carry on a closely
related activity.6
In this regard, Applicant states that Company's
proposed advisory services derive from investment
research activities currently performed by Applicant's
subsidiary bank in Virginia in response to requests
from institutional customers seeking advice on financial strategy and lender selection. Applicant also states
that a number of major commercial banking firms in
Virginia already offer advice for a fee regarding loan
syndications or interest rate exchange and protection
products.
Although the provision of the services included in
activity number (1) has not previously been found to
be permissible for bank holding companies, the Board
believes that Company's provision of advice regarding
loan syndications and interest rate swap and cap
transactions would be similar to financial advisory
services that are permissible for bank holding companies, generally.7 In addition, the Board believes that
banks currently perform this type of financial advisory
service for their customers. The Board also notes that
such advice is operationally or functionally so similar
to services generally provided by banks as to equip
banks particularly well to provide the proposed services. In view of this similarity, the Board finds that
Company's proposed activity number (1) may be
deemed closely related to banking.
In order to approve this application, the Board must
also find that the performance of the proposed activity
number (1) "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."
In this respect, Applicant indicates that Company's
performance of this activity may be expected to benefit the public by allowing Company to provide essential services at competitive costs. Specifically, Applicant notes that it has invested heavily in computer
systems and capacities and that the economies of scale
gained as a result will reduce operating costs to
5. 49 Federal Register 806 (1984).
6. See Association of Data Processing Service Organizations, Inc.
v. Board of Governors of the Federal Reserve System, 745 F.2d 677
( D . C . C i r . 1984).
7. Security Pacific Corporation at 119.
Legal Developments
Company. Applicant emphasizes that substantial
benefits will become available over the next several
years in the form of improved service, greater convenience and competitive pricing.
The Board notes that Company will be strongly
capitalized and will have a ready customer base, and
that Company will confine its financial advisory services to institutional customers in those states where
Applicant presently conducts its operations. The
Board also notes that Company's anticipated competitors include investment and commercial banking firms
much larger in terms of asset size, personnel resources
available, and volume of business transacted. 8 Moreover, the Board recognizes that Company will be
established as a de novo, independent subsidiary so
that no material changes in Applicant's management,
operations, marketing or other business functions will
be necessitated by this proposal.
The Board believes that concerns regarding conflicts of interest and related adverse effects that may
be associated with financial feasibility studies can be
substantially mitigated through the imposition of conditions designed to prevent such adverse effects. The
Board finds that appropriate conditions to mitigate
such adverse effects are as follows:
(1) Company will not make available to Applicant or
any of its subsidiaries confidential information received from Company's clients;
(2) Disclosure always will be made to each potential
client of Company that Company is an affiliate of
Applicant;
(3) Advice rendered by Company on an explicit fee
basis will be rendered without regard to correspondent balances maintained by the customer of Company at any depository institution subsidiary of
Applicant; and
(4) Company's financial advisory activities shall not
encompass the performance of routine tasks or
operations for a customer on a daily or continuous
basis.
Under these conditions, the Board concludes that
Applicant's performance of the proposed activity is
unlikely to result in any undue concentration of resources, decreased or unfair competition, unsound
banking practices, or other adverse effects.
8. Included among Company's competitors are: Sovran Bank,
N.A., United Virginia Bank, Wachovia Bank & Trust Company,
N.A., First Union National Bank, NCNB National Bank and Sun
Trust Bank.
61
Based upon the foregoing and all the facts of record
including Applicant's commitments, 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 the conditions set
forth in this Order and in sections 225.4(d) and
225.23(b)(3) of the Board's Regulation Y, 12 C.F.R.
§§ 225.4(d) and 225.23(b)(3). The approval is also
subject 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 Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
November 28, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, and Heller. Absent and not voting: Chairman Volcker and Governors Wallich and Angell.
BARBARA R . LOWREY
[SEAL]
Associate
Secretary
of the Board
Westpac Banking Corporation
Sydney, Australia
Order Approving an Application to Engage in
Certain Activities Related to Dealing in Gold
and Silver Bullion
Westpac Banking Corporation, Sydney, Australia
("Westpac"), a bank holding company within the
meaning of the Bank Holding Company Act ("Act"),
12 U.S.C. § 1841 et seq., has applied, pursuant to
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), for permission to engage through its subsidiary Mase Westpac, Inc., New York City, New York
("MWI"), in certain activities related to dealing in
gold and silver bullion.
Westpac's proposed activities are as follows:
(a) buying and selling gold and silver bullion, bars,
rounds and bullion coins for its own account and the
account of others;
(b) financing the production, refining and fabrication
of gold and silver, including lending and borrowing
gold and silver in connection with such financing;
(c) arbitraging gold and silver in markets throughout
the world; and
A62 Federal Reserve Bulletin • January 1987
(d) providing various incidental services for customers such as arranging for the safe custody, assaying
and shipment of gold and silver.1
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (51 Federal Register
30,271 (1986)). 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.
Westpac, a bank organized under the laws of Australia, is the 68th largest banking organization in the
world with total assets of approximately $36.9 billion.2
Westpac engages in a broad range of financial and
commercial services directly and indirectly through its
offices worldwide.
The Board has previously determined that most of
Westpac's proposed activities are permissible for bank
holding companies. A bank holding company may
engage in the purchase and sale of gold and silver for
its own account and for the account of others. 3 The
Board believes that assaying and arranging transport
of bullion is part of this activity.4 With regard to
Westpac's proposal to provide financing for the production and fabrication of gold and silver, Regulation
Y permits bank holding companies to engage in making loans and other extensions of credit. Thus, Westpac's proposed financing activities for the production
of gold and silver are permissible under Regulation Y.5
In order to approve this application, the Board is
also required to determine that Westpac's performance of the proposed activities "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
Westpac will engage in its proposed activities as part
of its acquisition of assets of Johnson Matthey Bankers, Ltd., which failed in 1984.6 Westpac's acquisition
of these assets prevented a decrease in competition in
the gold and silver markets that otherwise would have
resulted from the elimination of a competitor. Accordingly, the Board concludes that Westpac's performance of the proposed activities can reasonably be
expected to provide benefits to the public.
The Board also has considered the potential for
adverse effects that may be associated with this proposal. There is no evidence in the record that consummation of the proposal would result in any adverse
effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests,
or unsound banking practices.
Based upon a consideration of all the relevant facts,
the Board concludes that the balance of the public
interest factors that it is required to consider under
section 4(c)(8) is favorable. Accordingly, the application is hereby approved. 7
This determination is subject to all of the conditions
set forth in Regulation Y, including sections 225.4(d)
and
225.23(b)(3)
(12 C.F.R.
§§ 225.4(d)
and
225.23(b)(3)), and to the Board's authority to require
such modification or termination of the activities of a
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.
By order of the Board of Governors, effective
November 24, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, and Angell. Absent and not voting: Chairman Volcker and Governors Wallich and Heller.
WILLIAM W . W I L E S
[SEAL]
1. Westpac has notified the Board of its intention to purchase and
sell for its own account options, futures and options on futures on gold
and silver bullion. Applicant has committed to take positions in these
investments only as a means of hedging their position in the underlying commodity, i.e. gold and silver. Accordingly, this activity is
permissible under section 4(c)(1)(C) of the Act, 12 U.S.C.
§ 1843(c)(1)(C), which allows bank holding companies to "furnish(ing)
services to or perform(ing) services for such bank holding company or
its banking subsidiaries."
2. Banking data are as of March 31, 1986.
3. Hongkong and Shanghai Banking Corporation, 72 FEDERAL
RESERVE BULLETIN 345 (1986); Sovran Financial Corporation, 72
FEDERAL RESERVE BULLETIN 146 (1986); First Interstate Bancorp, 71
FEDERAL RESERVE BULLETIN 4 6 7 ( 1 9 8 5 ) .
4. In Standard and Chartered Banking Group Ltd., the Board
allowed the bank holding company to provide storage facilities,
weighing, coin counting and transportation services for bullion and
coin. 38 Federal Register 27,552 (1973).
5. 12 C.F.R. § 225.25(b)(1) (1986).
Secretary
of the Board
6. Pursuant to section 4(c)(9) of the Act, Westpac acquired certain
assets of Johnson Matthey Bankers, Ltd., London, England, on May
19, 1986.
7. Westpac also has applied to join the Commodities Exchange,
Inc. ("COMEX"), in order to execute and clear silver and gold
futures contracts. MWI will trade in the instruments only for its own
account. MWI's obligations will not be guaranteed by any affiliated
company and no such guarantee will be given without notifying the
Board.
Legal Developments
Orders Issued Under Sections
Bank Holding Company Act
3 and 4 of the
Midlantic Corporation
Edison, New Jersey
Order Approving Formation of a Bank Holding
Company and Acquisition of Banks and Nonbanking
Companies
Midlantic Corporation, Edison, New Jersey, has applied for the Board's approval under section 3(a)(1) of
the Bank Holding Company Act ("BHC Act")
(12 U.S.C. § 1842(a)(1)) to become a bank holding
company by acquiring all of the voting shares of two
bank holding companies and thereby indirectly acquiring their subsidiary banks and bank holding companies. Applicant proposes to acquire: 1) Midlantic
Banks, Inc., Edison, New Jersey and its subsidiaries,
Midlantic National Bank, Newark, New Jersey; Midlantic National Bank/North, West Paterson, New Jersey; Midlantic National Bank/South, Mount Laurel,
New Jersey; Midlantic National Bank/Merchants,
Neptune, New Jersey; Midlantic National Bank/Sussex & Merchants, Newton, New Jersey; and Midlantic
National Bank/Union Trust, Wildwood, New Jersey;
and 2) Continental Bancorp, Inc., Philadelphia, Pennsylvania and its subsidiaries, Continental Bank, Norristown, Pennsylvania; York Bancorp, Inc. and its
subsidiary bank, The York Bank and Trust Company,
York, Pennsylvania; and United Penn Bank, WilkesBarre, Pennsylvania. Applicant also proposes to acquire Midlantic Banks, Inc.'s 15.9 percent interest in
Statewide Bancorp, Toms River, New Jersey.
Applicant also has applied for the Board's approval
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) to acquire Midlantic Holdings, Inc., Edison, New Jersey; Midlantic National Bank and Trust
Co./Florida, Fort Lauderdale, Florida; Midlantic
Home Mortgage Corporation, Melville, New York;
Midlantic Commercial Leasing Corp, New York, New
York; Midlantic Middle States Leasing Corp., Edison,
New Jersey; Midlantic Commercial Co., Bloomfield,
New Jersey; Greater New Jersey Mortgage Co., Edison, New Jersey; Midlantic Brokerage Services Inc.,
Edison, New Jersey; and Lenders Life Insurance
Company, Phoenix, Arizona. These companies are
existing nonbank subsidiaries of Midlantic Banks, Inc.
and Continental Bancorp, Inc. engaged in the activities of making and servicing loans, performing trust
company functions, leasing personal and real property, underwriting credit life, accident and health insurance and securities brokerage. These activities have
been determined by the Board to be closely related to
63
banking and permissible for bank holding companies
(12 C.F.R. § 225.25(b)(1), (b)(3), (b)(5), (b)(9), (b)(15)).
Applicant also has given notice of its intention to
acquire Midlantic Banks, Inc.'s wholly owned corporation chartered pursuant to section 25(a) of the Federal Reserve Act (the "Edge Act") (12 U.S.C. § 611
et seq.), Midlantic Overseas, Ltd., Edison, New Jersey under section 211.4(b)(3) of Regulation K,
12 C.F.R. § 211. Applicant also has applied for the
Board's approval under section 4(c)(13) of the BHC
Act (12 U.S.C. § 1843(c)(13» to acquire Midlantic
Banks, Inc.'s subsidiary Midlantic International, Inc.
and its subsidiary, Midlantic Services e Administracao
Limitado, Brazil.1
Notice of the applications, affording opportunity for
interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the BHC
Act (51 Federal Register 26,945 (1986)). The time for
filing comments has expired, and the Board has considered the applications and all comments received in
light of the factors set forth in section 3(c) of the BHC
Act (12 U.S.C. § 1842(c)) and the considerations specified in section 4(c)(8) of the BHC Act. 2
Midlantic Banks, Inc., the second largest commercial banking organization in New Jersey, controls six
subsidiary banks in New Jersey with $7.3 billion in
total deposits, representing 15.4 percent of the total
deposits in commercial banks in New Jersey. 3 Continental Bancorp, Inc., Philadelphia, Pennsylvania, the
sixth largest commercial banking organization in Pennsylvania, controls three subsidiary banks, with $3.7
billion in total deposits, representing 4.4 percent of the
total deposits in commercial banks in Pennsylvania.
Consummation of the proposal would have no significant effect on the concentration of banking resources
in Pennsylvania or New Jersey.
Section 3(d) of the BHC Act, 12 U.S.C. § 1842(d),
the Douglas Amendment, prohibits the Board from
approving an application by a bank holding company
to acquire a bank located outside the holding compa1. As an alternative to the transactions described above, Midlantic
Banks, Inc. has applied for the Board's approval under section 3(a)(3)
of the BHC Act to exercise warrants for 1.9 million shares of
convertible preferred stock of Continental Bancorp, Inc. If converted,
these shares would represent 24.9 percent of Continental's common
stock on a pro forma basis. In view of the Board's action on
Applicant's application to become a bank holding company, action on
this alternative application is unnecessary.
2. The Board received letters protesting the application from the
Community Development Coalition, Inc. ("CDC"), Philadelphia,
Pennsylvania and the Camden Business Administrator, Camden, New
Jersey, alleging that certain of Applicant's subsidiary banks are not
fulfilling their responsibilities under the Community Reinvestment
Act. Following several meetings with Applicant, agreements were
reached with the protestants and the protests of the applications were
withdrawn.
3. Pennsylvania state deposit data are as of December 31, 1985;
New Jersey state deposit data are as of June 30, 1984.
A64 Federal Reserve Bulletin • January 1987
ny's home state, unless such acquisition is "specifically authorized by the statute laws of the state in which
such bank is located, by language to that effect and not
merely by implication."4
On June 25, 1986, Pennsylvania enacted a regional
interstate banking statute5 which permits out-of-state
bank holding companies located in states in the region6
that have reciprocal legislation with Pennsylvania to
acquire Pennsylvania banks and bank holding companies. The Pennsylvania statute explicitly declares that
the New Jersey interstate banking legislation is reciprocal with the legislation enacted in Pennsylvania.7
Accordingly, Pennsylvania law permits a New Jersey
bank holding company to acquire a bank holding
company or bank in Pennsylvania. Applicant meets all
of the requirements of the Pennsylvania statute authorizing an eligible bank holding company to acquire a
New Jersey bank or bank holding company.8 Based on
the foregoing, the Board has determined that the
proposed acquisition is specifically authorized by the
statute laws of Pennsylvania and is thus permissible
under the Douglas Amendment.
Subsidiary banks of Midlantic Banks, Inc. and Continental Bancorp, Inc. compete in the Philadelphia
banking market.9 Midlantic Banks, Inc. is the eighth
largest of 59 commercial banking organizations in the
Philadelphia banking market, with total deposits of
$1.4 billion, representing 4.2 percent of the deposits in
commercial banking organizations therein.10 Continental Bancorp, Inc. is the sixth largest commercial
banking organization in the market, with total deposits
of $2.2 billion, representing 6.7 percent of the deposits
in commercial banks in the market. Upon consummation of the proposal, Midlantic Banks, Inc. would
become the third largest commercial banking organization in the market, with total deposits of $3.5 billion,
representing 10.9 percent of the deposits in the commercial banks in the market. As a result of the
proposal, the Herfindahl-Hirschman Index ("HHI")
4. A bank holding company's home state for purposes of the
Douglas Amendment is that state in which the total deposits of its
banking subsidiaries were largest on July 1, 1966, or on the date it
became a bank holding company, whichever date is later. 12 U.S.C.
§ 1842. Applicant's home state is New Jersey.
5. 1986 Pa. Laws No. 69 (effective August 24, 1986).
6. The region consists of seven states (Delaware, Kentucky, Maryland, New Jersey, Ohio, Virginia, West Virginia) and the District of
Columbia.
7. Section 2(c)(iv) of 1986 Pa. Laws No. 69 (effective August 24,
1986).
8. On October 30, 1986, the Pennsylvania Deputy Secretary of
Banking determined that the application complied with all of the
requirements of Pennsylvania law and approved the application.
9. The Philadelphia banking market consists of Bucks, Chester,
Delaware, Montgomery and Philadelphia counties in Pennsylvania
plus Burlington, Camden and Gloucester counties in New Jersey.
10. Market data are as of June 30, 1985.
will increase 56 points to 97111 and the four-firm
concentration ratio will increase to 53.8 percent.
In view of the unconcentrated nature of the Philadelphia banking market, the small increase in Applicant's
market share, the number of competitors that would
remain upon consummation of the proposal and other
facts of record, the Board concludes that consummation of the proposal is not likely substantially to lessen
competition in the Philadelphia banking market.
The Board also has considered the effects of this
proposal on probable future competition in the markets in which Midlantic Banks, Inc. and Continental
Bancorp, Inc., but not both, compete. In light of the
number of probable future entrants into each of these
markets and other facts of record, the Board concludes that consummation of this proposal would not
have any significant adverse effect on probable future
competition in any relevant market.
In its evaluation of the managerial resources at
Midlantic Banks, Inc. and its subsidiary banks and
Continental Bancorp, Inc., and its subsidiary banks,
the Board has considered certain violations of the
Currency and Foreign Transactions Reporting Act
("CFTRA") and the regulations thereunder.12 The
Board notes that Midlantic Banks, Inc. and its bank
subsidiaries and Continental Bancorp, Inc. and its
bank subsidiaries have undertaken comprehensive remedial programs to correct these violations and to
prevent similar violations from occurring in the future.
Midlantic Banks, Inc. advised the Board that it filed
corrective currency transaction reports; carefully reviewed its exempt lists and removed those customers
not entitled to an exemption; instituted internal training for bank personnel regarding compliance with the
CFTRA; improved internal audit functions with respect to the CFTRA, including the appointment of a
Bank Secrecy Act officer at each subsidiary bank; and
established an automated software program at teller
windows to help ensure that reportable currency transactions are automatically identified for proper reporting. The Board notes that Midlantic Banks, Inc. has
cooperated fully with law enforcement agencies. In
addition, the sufficiency of the compliance procedures
adopted to address this matter and the efficacy in
correcting the deficiencies have been reviewed by the
primary supervisor of the banks involved. The Board
also consulted with appropriate enforcement agencies
11. Under the revised Department of Justice Merger Guidelines
(49 Federal Register 26,823 (June 29, 1984)), a market with a postmerger HHI of less than 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.
12. 31 U.S.C. § 5311 et seq.; 31 C.F.R. § 103.
Legal Developments
with respect to this matter, and considered Midlantic
Banks, Inc.'s past record of compliance with the law.
Continental Bancorp, Inc. advised the Board that it
brought the CFTRA violations at its subsidiary bank to
the attention of the appropriate supervisory authorities
and has cooperated fully with law enforcement agencies. Continental Bancorp, Inc. advised the Board that
it created a committee consisting of senior officers
representing various Bank departments to monitor and
to improve Bank's compliance with the CFTRA; carefully reviewed its exempt lists and removed those
customers not entitled to an exemption; instituted
internal training for bank personnel regarding compliance with the CFTRA; improved internal audit functions with respect to the CFTRA; and established an
automated software program to help ensure that
reportable currency transactions are automatically
identified for proper reporting. Furthermore, the sufficiency of the compliance procedures adopted to address this matter and the efficacy in correcting the
deficiencies have been reviewed. The Board also
consulted with appropriate enforcement agencies with
respect to this matter.
For the foregoing reasons and based upon a review
of all of the facts of record, the Board concludes that
the managerial resources of Midlantic Banks, Inc. and
Continental Bancorp, Inc. are consistent with approval. The Board also finds that the financial resources of
Midlantic Banks, Inc. and its subsidiaries, and Continental Bancorp, Inc. and its subsidiaries, are consistent with approval of the application. Considerations
relating to the convenience and needs of the community to be served are also consistent with approval.
Applicant also has applied under section 4(c)(8) of
the BHC Act to acquire the nonbanking subsidiaries of
Midlantic Banks, Inc. and Continental Bancorp, Inc.
that are engaged in lending, leasing, trust company,
securities brokerage and credit life, accident and
health insurance activities. While there is some service
area overlap between Midlantic and Continental in
mortgage lending, the market for such services is
unconcentrated and there are a large number of firms
that engage in this activity. No existing competition
would be eliminated with respect to any of the other
nonbanking activities.
Accordingly, it appears that Applicant's acquisition
of these nonbanking subsidiaries would not have a
significantly adverse effect upon competition in any
relevant market. Furthermore, there is no evidence in
the record to indicate that approval of this proposal
would result in undue concentration of resources,
unfair competition, conflicts of interest, unsound
banking practices, or other adverse effects on the
public interest. Thus, the Board has determined that
the balance of the public interest factors it must
65
consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of the applications.
Applicant also has given notice of its intention to
acquire Midlantic Banks, Inc.'s wholly owned Edge
Act Corporation, Midlantic Overseas Ltd., Edison,
New Jersey under section 211.4(b)(3) of Regulation K.
Midlantic Overseas, Ltd. would continue to operate as
a direct subsidiary of Midlantic Banks, Inc. as it has
since its establishment in March, 1982. Based on the
facts of record, the Board has determined that disapproval of the proposed investment is not warranted.
Applicant has also applied under section 4(c)(13) of
the BHC Act to acquire Midlantic Banks, Inc.'s subsidiary Midlantic International, Inc. and its subsidiary,
Midlantic Services e Administracao Limitado, Brazil,
which is an administrative services company engaged
in activities permitted by section 211.5(d)(6) of Regulation K. The Board has determined that approval of this
application under section 4(c)(13) of the BHC Act is
consistent with the purposes of the BHC Act and the
Board's Regulation K.
Based on the foregoing and the facts of record, the
Board has determined that the applications under
sections 3 and 4 of the BHC Act are consistent with
the public interest, and should be and hereby are
approved. The banking acquisitions shall not be consummated before the thirtieth calendar day following
the effective date of this Order, and neither the banking acquisitions nor the nonbanking activities shall 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 New York, acting pursuant to delegated
authority. The determinations as to Applicant's nonbanking activities are subject to the conditions set
forth in section 225.4(d) and section 225.23(b)(1),
(b)(3), (b)(5), (b)(9), (b)(15) of Regulation Y (12 C.F.R.
§ 225.4(d) and § 225.23(b)(1), (b)(3), (b)(5), (b)(9),
(b)(15)) and the Board's authority to require such
modifications or termination of the activities of a
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder, or
to prevent evasion thereof.
By order of the Board of Governors, effective
November 21, 1986.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, and Angell. Absent and not voting: Chairman Volcker and Governors Wallich and Heller.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
A66 Federal Reserve Bulletin • January 1987
Southborough Holdings, Inc.
Vancouver, B.C., Canada
Pacific National Financial Corporation
Vancouver, B.C., Canada
American National Corporation
Mountain View, California
Order Approving the Formation of Bank Holding
Companies and the Conduct of Nonbanking
Activities
Southborough Holdings, Inc., Vancouver, B.C., Canada ("SHI"), Pacific National Financial Corporation,
Vancouver, B.C., Canada ("PNF"), and American
National Corporation, Mountain View, California
("ANC") (SHI, PNF and ANC will be referred to
collectively as "Applicants"), have applied for the
Board's approval under section 3(a)(1) of the Bank
Holding Company Act ("BHC Act") (12 U.S.C.
§ 1842(a)(1)) to become bank holding companies
through the acquisition of the voting shares of Foothill
Bank, Mountain View, California ("Bank"). Applicants have also applied for Board approval under
section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) to engage in certain leasing activities in
the United States through American National Leasing
Corporation, Mountain View, California ("AN Leasing"). The Board has determined that these activities
are closely related to banking and permissible for bank
holding companies (12 C.F.R. § 225.25(b)(5)). Additionally, Applicants seek to continue to engage outside
the United States in certain leasing activities permissible under section 4(c)(8) of the BHC Act.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
given in accordance with sections 3 and 4 of the BHC
Act. 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), and the considerations expressed in section 4, of the BHC Act (12 U.S.C. §§ 1842(c) and
1843(c)(8)).
SHI, the top tier applicant, is a Canadian holding
company. SHI owns 74 percent of the voting common
stock of PNF. 1 PNF is a Canadian public corporation
1. SHI currently holds certain impermissible nonbanking investments. In addition, PNF has committed to divest the ownership of its
five rental properties within two years of the acquisition of the Bank.
In acting on this application, the Board has relied on Applicants'
commitment to divest these impermissible nonbanking investments
within two years of consummation of the proposed transactions,
which is the time period permitted under the BHC Act for companies
that become bank holding companies to conform their nonbanking
activities to the requirements of the BHC Act. 12 U.S.C. § 1843(a)(2).
engaged in full-payout equipment leasing in Canada.
Bank is the 230th largest bank in California, with total
deposits of $49.9 million, representing 0.02 percent of
total deposits in commercial banks in the state. 2
Bank operates in the San Francisco banking market,
and controls 0.04 percent of the deposits in commercial banking organizations in the market. 3 Applicants
do not operate any subsidiaries in the relevant market.
Based on the record, the Board has concluded that
consummation of this proposal would not result in any
significant adverse effects upon competition or significant increase in the concentration of resources in any
relevant market. Accordingly, competitive considerations are consistent with approval.
The financial and managerial resources and future
prospects of Applicants and Bank are considered
satisfactory and consistent with approval. Applicants
have committed to consent to the jurisdiction of the
United States, to appoint an agent for service of
process in the United States, and to maintain adequate
books and records in the United States, together with
any additional information the Board may require
concerning Applicants' business and financial condition. Based on all the facts of record, including the
commitments made by Applicants, the Board has
determined that considerations relating to banking
factors are consistent with approval of the proposed
acquisition. The Board has determined that considerations relating to the convenience and needs of the
community to be served are also consistent with
approval of this proposal.
Applicant has also applied, pursuant to section
4(c)(8) of the BHC Act, to acquire AN Leasing Corporation, Mountain View, California ("AN Leasing"),
the nonbanking subsidiary of ANC, and thereby engage in personal property leasing activities involving
leases that are the functional equivalent of an extension of credit. Applicant has also applied for Board
approval to continue to engage in certain personal
property leasing activities conducted by SHI and PFC
in Canada. These activities are permissible for bank
holding companies under section 225.25(b)(5) of the
Board's Regulation Y. 12 C.F.R. § 225.25(b)(5). AN
Leasing will be organized as a de novo subsidiary of
ANC. Consummation of the proposal would not result
in the elimination of any competition, and thus Applicants' proposal would not have any adverse effect on
competition in any relevant market. Furthermore,
there is no evidence in the record to indicate that
2. Deposit data are as of June 30, 1986. State ranking data are as of
December 31, 1985. Market data are as of June 30, 1985.
3. The San Francisco banking market is approximated by the San
Francisco-Oakland-San Jose RMA.
Legal Developments
67
Order Approving Acquisition of a Bank Holding
Company
rectly acquire its twelve subsidiary banks. 1 Applicant
has also applied under section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8) and section 225.23(a)) of the
Board's Regulation Y (12 C.F.R. § 225.23(a)(2)) to
acquire the following nonbank subsidiaries of Company: Third National Financial Services, Nashville, Tennessee, and thereby engage in mortgage banking including making, acquiring or servicing loans; Third
National Insurance Company, Chattanooga and Nashville, Tennessee, and thereby underwrite credit life,
accident and health insurance for Company and its
subsidiaries; ThirdData, Nashville, Tennessee, and
thereby provide data processing, data transmission
services and data bases primarily to financial institutions; Third National Brokerage Services, Chattanooga, Nashville, Knoxville and Johnson City, Tennessee, and thereby provide securities brokerage
services, related securities credit activities and incidental activities such as custodial services, individual
retirement accounts and cash management services;
and Third National Trust Company, Chattanooga,
Tennessee, to engage in activities of a fiduciary,
agency or custodial nature. These activities have been
determined by the Board to be closely related to
banking and permissible for bank holding companies
under section 225.25(b)(1), (3), (7), (8) and (15).
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.
(51 Federal Register 26,191 and 26,468 (1986)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received, including comments in opposition to the
applications from Legal Services of Greater Miami
("Legal Services"), in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)), and the
considerations specified in section 4(c)(8) of the Act.
Applicant is the second largest banking organization
in Georgia, with total Georgia deposits of $5.2 billion,2
representing 15.3 percent of the total deposits in
commercial banks in the state. Applicant is also the
second largest banking organization in Florida, controlling deposits in that state of $2.2 billion, representing 6.3 percent of the total deposits in commercial
banks in Florida. Company is the largest banking
organization in Tennessee with total deposits of $4.2
billion, representing 14.4 percent of state deposits.
SunTrust Banks, Inc., Atlanta, Georgia, 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)(3)), to acquire Third National Corporation,
Nashville, Tennessee ("Company"), and thereby indi-
1. Applicant also has applied to exercise a Warrant purchased from
Company to acquire up to 24.9 percent of Company's shares. By its
terms, the Warrant is exercisable only on the occurrence of certain
events which include a material breach by Company of the merger
agreement entered into with Applicant, or a tender offer, purchase,
merger or filing by any person or group that would result in that
person or group controlling at least 24.9 percent of Company's shares.
2. All banking data are as of June 30, 1986.
approval of this proposal 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 the
public interest factors it must consider under section
4(c)(8) of the BHC Act is consistent with approval of
these applications.
On the basis of the record and commitments made
by Applicants and their principals, and for the reasons
summarized above, the Board has determined that the
applications under sections 3 and 4 of the BHC Act
should be and hereby are approved. The banking
acquisition 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 San Francisco, acting
pursuant to delegated authority. The determination
with respect to Applicants' nonbanking activities 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 holding company or any
of its subsidiaries as the Board finds necessary to
assure compliance with, or to prevent evasion of, the
provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder.
By order of the Board of Governors, effective
November 3, 1986.
Voting for this action: Chairman Volcker and Governors
Johnson, Angell, and Heller. Absent and not voting: Governors Wallich, Rice, and Seger.
JAMES M C A F E E
[SEAL]
Associate
Secretary of the Board
SunTrust Banks, Inc.
Atlanta, Georgia
A68 Federal Reserve Bulletin • January 1987
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 a bank located outside the bank holding company's home state,3 unless the state where the bank to
be acquired is located has specifically authorized the
acquisition by language to that effect and not merely
by implication. Applicant's home state is Florida. The
statute laws of Tennessee authorize the acquisition of
a bank holding company in the state by a bank holding
company from another state, provided that state is
within a defined Southern Region, which includes
Florida.4 Such an acquisition is permitted if the laws of
the acquiring institution's home state permit the acquisition of a bank in that state by a Tennessee bank
holding company or bank on a reciprocal basis. Florida has enacted a similar reciprocal statute, which
permits the acquisition of a Florida bank by a Tennessee bank holding company.
Based on its review of the relevant Tennessee and
Florida statutes, the Board has determined that the
Florida statute and the proposed acquisition satisfy the
requirements of Tennessee's interstate banking statute
and that the Tennessee statute expressly authorizes a
Florida holding company, such as Applicant, to acquire a bank holding company located in Tennessee,
such as Company. Accordingly, the Board concludes
that approval of Applicant's proposal to acquire a
bank holding company is not barred by the Douglas
Amendment.
The Board has 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 Company and the banking subsidiaries of Applicant operate in different markets in
different states, consummation of the proposal would
not eliminate significant existing competition in any
relevant market.
The Board has considered the effects of the proposed acquisition on probable future competition in
Tennessee, Georgia and Florida. In view of the existence of numerous other potential entrants from states
within the interstate banking regions into each of the
markets served by Company or Applicant, the Board
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.
4. Tennessee Regional Reciprocal Banking Act, Tenn. Code Ann.
§§ 45-12-101 et seq. The region defined by this Act includes Alabama,
Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Virginia and
West Virginia. Tenn. Code Ann. § 45-12-102.
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 of Applicant, Company, and their subsidiary banks are considered satisfactory and consistent with approval. In
considering the convenience and needs of the communities to be served, the Board has also taken into
account Applicant's record under the Community Reinvestment Act (12 U.S.C. § 2901 et seq., ("CRA")).
The CRA requires the Board, in its evaluation of a
bank holding company application, to assess the record of an applicant in meeting the credit needs of the
entire community, including low- and moderate-income neighborhoods, consistent with safe and sound
operation. The Board has received comments from
Legal Services, which represents low income groups
and individuals in Miami. Legal Services requests that
the Board not approve the applications until Applicant
"provides adequate assurances that it will meet the
convenience and needs of the low- and moderateincome persons, and minorities, in their service areas
in Florida." 5
In accordance with the Board's practice and procedure for handling protested applications,6 the Board
reviewed the allegations made by Legal Services, and
Applicant's response. Applicant met privately with
Legal Services on several occasions and has agreed to
collaborate with the latter on the development of a
corporate CRA policy. In addition, pursuant to the
Board's examination of Applicant's CRA record, Applicant has committed to strengthen consumer compliance by its Florida subsidiaries by instituting more
extensive training for all responsible personnel. Applicant also will develop a written CRA policy and
program which addresses the requirements of CRA
and Regulation BB for all of its bank subsidiaries,
including a written corporate policy on basic banking
services which will take into account the guidelines
issued by the Board and the Office of the Comptroller
of the Currency as well as improve its marketing of
bank loan and deposit services to minorities and lowand moderate-income persons. Applicant has also
committed to institute in its Florida subsidiaries programs and policies that have been successfully implemented at its Georgia subsidiaries, such as its programs that assist minority businesses and the
5. Legal Services asserts that in Florida, Applicant has failed to
meet the credit needs of low income and black communities; has been
inadequately involved in community development activities; does not
offer various government loan programs such as FHA, FmHA and
VA; and has engaged in credit discrimination in the case of one client.
6. See 12 C.F.R. § 262.25(c).
Legal Developments
conservation of low-income housing. In this regard,
the Board notes that Applicant has a strong record of
meeting the needs of the communities it serves in
Georgia. Finally, Applicant will file detailed reports of
its programs in order that the Federal Reserve System
may evaluate Applicant's progress in meeting its CRA
objectives.
The Board has carefully reviewed the records of
Applicant, and Company as well, in meeting the
convenience and needs of all segments of their communities. Based on this review and after taking into
account Applicant's commitments to enhance its service to meet the convenience and needs of its community, including low- and moderate-income segments,
the Board concludes that convenience and needs considerations are consistent with approval of this application. 7
Applicant has also applied, pursuant to section
4(c)(8), to acquire the following nonbank subsidiaries
of Company, all located in Tennessee: Third National
Financial Services, Nashville, and thereby engage in
mortgage banking including making, acquiring or servicing loans; Third National Insurance Company,
Chattanooga and Nashville, and thereby underwrite
credit life, accident and health insurance within the
Third National system; ThirdData, Nashville, and
thereby provide data processing, data transmission
services and data bases primarily to financial institutions; Third National Brokerage Services, Chattanooga, Nashville, Knoxville and Johnson City, and thereby provide securities brokerage services, related
securities credit activities and incidental activities
such as custodial services, individual retirement accounts and cash management services; and Third
National Trust Company, Chattanooga, to engage in
69
activities of a fiduciary, agency or custodial nature.
Because Applicant and Company do not compete in
any of the same markets, approval of these applications will have no significant effect on 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, decreased or unfair competition, conflicts of
interests, unsound banking practices or other adverse
effects on the public interest. Accordingly, the Board
has determined that the balance of 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 Company's nonbanking subsidiaries.
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 Company shall not be
consummated before the thirtieth calendar day following the effective date of this Order or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Atlanta, pursuant to
delegated authority. The determinations as to Applicant's nonbanking activities are subject to all of the
conditions contained in Regulation Y, including those
in sections 225.4(d) and 225.23(b)(3) (12 C.F.R.
§§ 225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modification or termination of
the activities of a holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasions thereof.
By order of the Board of Governors, effective
November 26, 1986.
7. Legal Services has also requested that the Board order a public
meeting to receive public testimony on the issues presented by these
applications. Although section 3(b) of the Act does not require a
formal hearing in this instance, the Board may, in any case, order a
formal or informal hearing. In the Board's view, the parties have had
ample opportunity to present their arguments in writing and to
respond to one another's submissions. In light of these facts, the
proposals by Applicant to expand its services, and other facts of
record, the Board has determined that a hearing would serve no useful
purpose. Accordingly, Legal Services' request for a public hearing is
hereby denied.
Voting for this action: Vice Chairman Johnson and Governors Rice, Seger, and Heller. Absent and not voting: Chairman Volcker and Governors Wallich and Angell.
BARBARA R . LOWREY
[SEAL]
Associate
Secretary of the Board
A70 Federal Reserve Bulletin • January 1987
ORDERS APPROVED
By Board of
UNDER BANK HOLDING COMPANY
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
Effective
date
Bank(s)
Applicant
El Paso State Bank,
El Paso, Texas
Grant Bancshares, Inc.,
Grant, Nebraska
Mid-Nebraska Bancshares, Inc.,
Ord, Nebraska
BancTEXAS Sulphur Springs, N.A.
Sulphur Springs, Texas
El Paso Financial Corporation,
El Paso, Texas
First United Bancshares, Inc.,
Ord, Nebraska
Texas Community Bancshares, Inc.
Dallas, Texas
November 10, 1986
November 25, 1986
November 12, 1986
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
First Interstate Bancorp,
Los Angeles, California
The Union of Arkansas Corporation,
Little Rock, Arkansas
By Federal Reserve
Effective
date
Bank(s)
Applicant
First Interstate Central Bank,
Willows, California
Union National Bank of Oklahoma,
Temple, Oklahoma
November 20, 1986
November 14, 1986
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant
_ ...
Bank(s)
Reserve
Effective
B&nk
date
ABC Holding Company,
Moultrie, Georgia
The Citizens Bank of Tifton,
Tifton, Georgia
Atlanta
October 30, 1986
Legal Developments
71
Section 3—Continued
Applicant
Alabama National
Bancorporation,
Ashland, Alabama
American Capital Corporation,
Centerville, Texas
Amity Bancorp Inc.,
New Haven, Connecticut
ASB Bancshares, Inc.,
Ashville, Alabama
Avoca Financial Services Inc.,
Council Bluffs, Iowa
Western Iowa Consultants, Inc.
Council Bluffs, Iowa
Banco Harlan, Inc.,
Harlan, Kentucky
Bancorp of Mississippi,
Tupelo, Mississippi
Central Wisconsin Bankshares,
Inc.,
Wausau, Wisconsin
Chambanco, Inc.,
Chambers, Nebraska
Charter Banc Group, Inc.,
Northfield, Illinois
Citizens Community
Bankshares, Inc.,
Wittenberg, Wisconsin
City Bancorp of BloomingtonNormal, Inc.,
Bloomington, Illinois
City Holding Company,
Charleston, West Virginia
Commerce Bancorp, Inc.,
Marlton, New Jersey
Commerce Corporation,
St. Francisville, Louisiana
„ w ,
Bank(s)
Reserve
Bank
Effective
date
Atlanta
November 12, 1986
Dallas
November 7, 1986
Boston
November 10, 1986
Atlanta
November 10, 1986
Chicago
November 6, 1986
Cleveland
November 13, 1986
St. Louis
November 14, 1986
Chicago
November 4, 1986
Ewing Agency, Inc.,
Ord, Nebraska
Bank of Glenbrook,
Glen view, Illinois
Bank of Northfield,
Northfield, Illinois
Bank of Wheaton,
Wheaton, Illinois
Bank of Winfield,
Winfield, Illinois
Crandon National Bank,
Crandon, Wisconsin
Kansas City
November 6, 1986
Chicago
October 28, 1986
Chicago
October 30, 1986
State Bank of Saybrook,
Saybrook, Illinois
Chicago
November 13, 1986
The Peoples Bank of Point
Pleasant,
Point Pleasant, West Virginia
Commerce Bank/Pennsylvania,
N.A.,
Philadelphia, Pennsylvania
Feliciana Commerce Corporation,
St. Francisville, Louisiana
Richmond
November 5, 1986
Philadelphia
October 24, 1986
Atlanta
October 29, 1986
First United Corporation,
Ashland, Alabama
Headland Capital Corporation,
Headland, Alabama
Tallapoosa Capital Corporation,
Dadeville, Alabama
Macon Capital Corporation,
Tuskeegee, Alabama
Fairfield Bancshares, Inc.,
Fairfield, Texas
Amity Bank,
Woodbridge, Connecticut
Ashville Savings Bank,
Ashville, Alabama
Citizens Savings Bank,
Avoca, Iowa
The Bank of Harlan,
Harlan, Kentucky
First Mississippi National
Corporation,
Hattiesburg, Mississippi
Westby-Coon Valley State Bank,
Westby, Wisconsin
A72 Federal Reserve Bulletin • January 1987
Section 3—Continued
A
Applicant
Community Group, Inc.,
Jasper, Tennessee
CREST BANCORP INC.,
Roberts, Illinois
Dawson Springs Bancorp, Inc.,
Dawson Springs, Kentucky
Dominion Bankshares
Corporation,
Roanoke, Virginia
Equitable BankShares, Inc.,
Dallas, Texas
F&M Bank Holding Company
of Valley City, Inc.,
Valley City, North Dakota
FCNB Corp,
Frederick, Maryland
Financial Bancshares, Inc.,
St. Louis, Missouri
Schmid Brothers Investment
Company, Inc.,
Clayton, Missouri
First American Bankshares,
Inc.,
Fort Atkinson, Wisconsin
First Citizens of Paris, Inc.,
Paris, Illinois
First City Bancshares,
Incorporated of Springfield,
Missouri,
Springfield, Missouri
First Community Bankshares,
Milton, Wisconsin
First Illini Bancorp, Inc.,
Galesburg, Illinois
First Indiana Bancorp,
Elkhart, Indiana
AmeriTrust Corporation,
Cleveland, Ohio
First NH Banks, Inc.,
Manchester, New Hampshire
First NH Banks, Inc.,
Manchester, New Hampshire
First of America Bank
Corporation,
Kalamazoo, Michigan
„ w .
Bank(s)
Reserve
Effective
BanR
date
The First State Bank,
Jacksboro, Tennessee
Roberts State Bank,
Roberts, Illinois
Kentucky State Bank of
Scottsville,
Scottsville, Kentucky
The First National Bank of
Sparta,
Sparta, Tennessee
Landmark National Bank,
Arlington, Texas
Farmers & Merchants Bank of
Valley City,
Valley City, North Dakota
Frederick County National Bank
of Frederick,
Frederick, Maryland
Oran State Bank
Oran, Missouri
Atlanta
November 14, 1986
Chicago
November 6, 1986
St. Louis
October 29, 1986
Richmond
November 10, 1986
Dallas
November 19, 1986
Minneapolis
October 29, 1986
Richmond
November 12, 1986
St. Louis
November 12, 1986
First American Bank & Trust
Co.,
Fort Atkinson, Wisconsin
The Citizens National Bank of
Paris,
Paris, Illinois
First City National Bank,
Springfield, Missouri
Chicago
October 30, 1986
Chicago
November 13, 1986
St. Louis
October 28, 1986
The Farmers Bank,
Milton, Wisconsin
Community Bancshares of
Canton, Inc.,
Canton, Illinois
The Boone Corporation,
Lebanon, Indiana
Chicago
October 27, 1986
Chicago
November 4, 1986
Cleveland
November 6, 1986
Boston
October 27, 1986
Boston
October 31, 1986
First NH Bank of Maine,
Portland, Maine
The Cheshire National Bank,
Keene, New Hampshire
Legal Developments
73
Section 3—Continued
. . .
Applicant
First Petersburg Bancshares,
Inc.,
Petersburg, Illinois
First Valley Corporation,
Bethlehem, Pennsylvania
FMB Banking Corporation,
Monticello, Florida
Fort Wayne National
Corporation,
Fort Wayne, Indiana
Fourth Financial Corporation,
Wichita, Kansas
Gary-Wheaton Corporation,
Wheaton, Illinois
Greater Southwest Bancshares,
Inc.,
Irving, Texas
Greenwood County Financial
Services, Inc.,
Eureka, Kansas
Grenada Sunburst System
Corporation,
Grenada, Mississippi
Grenada Sunburst System
Corporation,
Grenada, Mississippi
Harbor Country Banking
Corporation,
Three Oaks, Michigan
Hi-Bancorp., Inc.,
High wood, Illinois
Houghton Financial, Inc.,
Houghton, Michigan
Huntington Bancshares
Incorporated,
Columbus, Ohio
Huntington Bancshares of
Indiana, Inc.,
Columbus, Ohio
Independence Bancorp, Inc.,
Perkasie, Pennsylvania
International City Bancorp,
Inc.,
Warner Robins, Georgia
Iowa National Bankshares,
Corp.,
Waterloo, Iowa
Kentucky Bancorporation, Inc.,
Covington, Kentucky
„ ,,.
Bank(s)
Reserve
^
Effective
^
Chicago
October 30, 1986
Philadelphia
November 12, 1986
Atlanta
November 5, 1986
Chicago
November 10, 1986
Kansas City
October 31, 1986
Chicago
November 13, 1986
Dallas
October 28, 1986
Home Bank and Trust Company
of Eureka,
Eureka, Kansas
Mount Olive Bank,
Mount Olive, Mississippi
Kansas City
November 3, 1986
St. Louis
November 4, 1986
South Mississippi Bank,
Prentiss, Mississippi
St. Louis
October 28, 1986
Heritage Bank,
Berrien Springs, Michigan
Chicago
October 24, 1986
GNP Bancorp, Inc.,
Mundelein, Illinois
Houghton National Bank,
Houghton, Michigan
Wainwright Financial
Corporation,
Noblesville, Indiana
Chicago
October 30, 1986
Minneapolis
November 12, 1986
Cleveland
October 29, 1986
Philadelphia
October 29, 1986
Atlanta
November 10, 1986
PT&S Bancorp,
Indianola, Iowa
Chicago
October 24, 1986
Marion Bancshares,
Lexington, Kentucky
Cleveland
November 5, 1986
The First National Bank of
Petersburg,
Petersburg, Illinois
West Side Bancorp, Inc.,
West Pittston, Pennsylvania
Pavo State Bank,
Pavo, Georgia
Old-First National Corporation,
Bluffton, Indiana
First National Bank and Trust
Company of Lenexa,
Lenexa, Kansas
Ogden-Saratoga Corporation,
Downers Grove, Illinois
Bank of the West,
Irving, Texas
Third National Bank and Trust
Company of Scranton,
Scranton, Pennsylvania
International City Bank,
Warner Robins, Georgia
A74 Federal Reserve Bulletin • January 1987
Section 3—Continued
Applicant
Kish Bancorp., Inc.,
Belleville, Pennsylvania
Lake view Financial Corp.,
Lakeview, Michigan
LCB Corporation, Inc.,
Fayetteville, Tennessee
Magna Group, Inc.,
Belleville, Illinois
Montgomery Bancorp, Inc.,
Mount Sterling, Kentucky
National Banc of Commerce
Company,
Charleston, West Virginia
New Palestine Bancorp,
New Palestine, Indiana
Nicholson Voting Trust
Agreement,
Forest City, Pennsylvania
Northeast Wisconsin Financial
Services, Inc.,
Sturgeon Bay, Wisconsin
Portage County Bancshares,
Inc.,
Almond, Wisconsin
Republic Bancshares, Inc.,
Neosho, Missouri
Riggs National Corporation,
Washington, D.C.
River Associates Bancorp, Inc.,
River Grove, Illinois
River Forest Bancorp,
River Forest, Illinois
Robinson Bancshares, Inc.,
Robinson, Kansas
St. Joseph Bancorporation, Inc.
South Bend, Indiana
Sardis Bankshares, Inc.,
Sardis, Georgia
Shawmut Corporation,
Boston, Massachusetts
Bank(s)
The Kishacoquillas Valley
National Bank of Belleville,
Belleville, Pennsylvania
Bank of Lakeview,
Lakeview, Michigan
First National Bank of Huntland,
Huntland, Tennessee
Bank of Cahokia,
Cahokia, Illinois
Farmers Exchange Bank,
Millersburg, Kentucky
The Chemical Bank and Trust
Company,
South Charleston, West
Virginia
New Palestine Bank,
New Palestine, Indiana
The First National Bank of
Nicholson,
Nicholson, Pennsylvania
First National Bank of Sturgeon
Bay,
Sturgeon Bay, Wisconsin
M&I Bank of Portage County,
Almond, Wisconsin
Security State Bank,
Republic, Missouri
The Riggs National Bank of
Virginia,
Fairfax, Virginia
River Grove Bank and Trust
Company,
River Grove, Illinois
Commercial Chicago
Corporation,
Chicago, Illinois
Morrill and Janes Bancshares,
Inc.,
Hiawatha, Kansas
Starke County Bancorp, Inc.,
Knox, Indiana
Bank of Sardis,
Sardis, Georgia
The Fidelity Trust Company,
Stamford, Connecticut
Reserve
Bank
Effective
date
Philadelphia
November 5, 1986
Chicago
October 29, 1986
Atlanta
November 6, 1986
St. Louis
October 29, 1986
Cleveland
November 7, 1986
Richmond
November 3, 1986
Chicago
November 6, 1986
Philadelphia
November 10, 1986
Chicago
November 5, 1986
Chicago
October 29, 1986
St. Louis
November 10, 1986
Richmond
November 7, 1986
Chicago
November 14, 1986
Chicago
November 6, 1986
Kansas City
November 5, 1986
Chicago
November 12, 1986
Atlanta
November 7, 1986
Boston
October 24, 1986
Legal Developments
75
Section 3—Continued
A
Applicant
Shelard Bancshares, Inc.,
St. Louis Park, Minnesota
Southeast Banking Corporation,
Miami, Florida
Southern National Corporation,
Lumberton, North Carolina
State Bancorp, Inc.,
Washington, Indiana
Statewide Bancorp,
Toms River, New Jersey
TCM Company,
Crete, Nebraska
UB&T Bancshares, Inc.,
Abilene, Texas
UniSouth, Inc.,
Umatilla, Florida
United Bancorp of Kentucky,
Inc.,
Lexington, Kentucky
Vermilion Bancshares
Corporation,
Kaplan, Louisiana
Washington Bancorporation,
Washington, D.C.
Waterman Bancshares, Inc.,
Waterman, Illinois
Wenona Bancorp, Inc.,
Wenona, Illinois
Woodford Bancorp, Inc.,
Versailles, Kentucky
,, ,
Bank(s)
Reserve
_ ,
Bank
Effective
,A
date
Minnesota National Bank of
Eagan,
Eagan, Minnesota
The First National Bank of Palm
Beach, Incorporated,
Palm Beach, Florida
First Palmetto Bancshares
Corporation,
Columbia, South Carolina
The Bank of Mitchell,
Mitchell, Indiana
The Penn's Grove National Bank
and Trust Company,
Penns Grove, New Jersey
City Bank and Trust Company,
Crete, Nebraska
United Bank & Trust,
Abilene, Texas
Umatilla State Bank,
Umatilla, Florida
Bank of Lexington & Trust
Company, Inc.,
Lexington, Kentucky
Vermilion Bank & Trust
Company,
Kaplan, Louisiana
Enterprise Bank Corporation,
Reston, Virginia
Waterman State Bank,
Waterman, Illinois
Wenona State Bank,
Wenona, Illinois
The Woodford Bank & Trust
Company,
Versailles, Kentucky
Minneapolis
November 6, 1986
Atlanta
October 31, 1986
Richmond
November 19, 1986
St. Louis
November 18, 1986
Philadelphia
November 14, 1986
Kansas City
October 30, 1986
Dallas
November 4, 1986
Atlanta
November 10, 1986
Cleveland
November 7, 1986
Atlanta
November 7, 1986
Richmond
November 17, 1986
Chicago
November 17, 1986
Chicago
November 18, 1986
Cleveland
October 8, 1986
n
Section 4
Applicant
American Bancorp, Inc.,
Hamden, Connecticut
Citicorp,
New York, New York
Nonbanking
Company /activity
acquire certain assets and assume
certain liabilities of Data
Control Group, Inc.,
New Haven, Connecticut
Securities Industry Software
Corporation,
Evergreen, Colorado
Reserve
Bank
Effective
date
Boston
November 7, 1986
New York
November 14, 1986
A76 Federal Reserve Bulletin • January 1987
Section 4—Continued
Nonbanking
Company
Applicant
Citizens State Bankshares of
Bald Knob,
Bald Knob, Arkansas
Dominion Bankshares
Corporation,
Roanoke, Virginia
Itasca Bancorp Inc.,
Itasca, Illinois
Norwest Corporation,
Minneapolis, Minnesota
Reserve
Bank
Effective
date
sale of credit related insurance on
extensions of credit by Citizens
State Bank,
Bald Knob, Arkansas
Internet, Inc.,
Reston, Virginia
St. Louis
November 7, 1986
Richmond
October 30, 1986
B.I.P., Inc.,
Bloomingdale, Illinois
Watson Agency, Inc.,
Watson, Minnesota
Chicago
October 31, 1986
Minneapolis
November 19, 1986
Section 3 and 4
Bank(s)/Nonbanking
Company
Applicant
Financial National Bancshares,
Co.,
Elgin, Illinois
ONB Corporation,
Owensboro, Kentucky
ORDERS APPROVED
NORTHWEST SUBURBAN
BANCORP, INC.,
Mount Prospect, Illinois
NSB Finance, Inc.,
Mount Prospect, Illinois
First City Bank and Trust
Company,
Hopkinsville, Kentucky
DATANET, Inc.,
Hopkinsville, Kentucky
UNDER BANK MERGER
Reserve
Bank
Effective
date
Chicago
November 7, 1986
St. Louis
November 12, 1986
ACT
By the Secretary of the Board
Applicant
Bank(s)
Effective
date
First Interstate Bank of California,
Los Angeles, California
First National Bank,
Willows, California
November 20, 1986
Legal Developments
By Federal Reserve
77
Banks
Applicant
Commerce Union Bank,
Nashville, Tennessee
Nor star Bank of Upstate NY,
Albany, New York
Reserve
Bank
Bank(s)
Commerce Union Bank of
Lawrence County,
Lawrenceburg, Tennessee
Seaway National Bank,
Watertown, New York
Effective
date
Atlanta
November 18, 1986
New York
November 14, 1986
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of
Governors is not named a party.
Independent Insurance Agents of America, et al. v.
Board of Governors, Nos. 86-1572, 1573, 1576
(D.C. Cir., filed Oct. 24, 1986).
Securities Industry Association v. Board of Governors, No. 86-2768 (D.D.C., filed Oct. 7, 1986).
Independent Community Bankers Association v.
Board of Governors, No. 86-5373 (8th Cir., filed
Oct. 3, 1986).
Jenkins v. Board of Governors, No. 86-1419 (D.C.
Cir., filed July 18, 1986).
Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986).
Adkins v. Board of Governors, No. 86-3853 (4th Cir.,
filed May 14, 1986).
Optical Coating Laboratory, Inc. v. United States,
No. 288-86C (U.S. Claims Ct., filed May 6, 1986).
CBC, Inc. v. Board of Governors, No. 86-1001 (10th
Cir., filed Jan. 2, 1986).
Howe v. United States, et al., No. 86-1430 (1st Cir.,
filed Dec. 6, 1985).
Myers, et al. v. Federal Reserve Board, No. 85-1427
(D. Idaho, filed Nov. 18, 1985).
Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.
(D. Colo., filed Nov. 1, 1985).
Podolak v. Volcker, No. C85-0456, et al. (D. Wyo.,
filed Oct. 28, 1985).
Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,
filed Oct. 22, 1985).
Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D.
Minn., filed Oct. 21, 1985).
Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D.
Neb., filed Oct. 16, 1985).
Jensen v. Wilkinson, et al., No. 85-4436-S, et al. (D.
Kan., filed Oct. 10, 1985).
Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D.,
filed Oct. 8, 1985).
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).
McHuin v. Volcker, et al., No. 85-2170 WARB (W.D.
Okl., filed Aug. 29, 1985).
Independent Community Bankers Associaton of South
Dakota v. Board of Governors, No. 84-1496 (D.C.
Cir., filed Aug. 7, 1985).
Urwyler, et al. v. Internal Revenue Service, et al., No.
85-2877 (9th Cir., filed July 18, 1985).
Johnson v. Federal Reserve System, et al., No. 864536 (5th Cir., filed July 16, 1985).
Wight, et al. v. Internal Revenue Service, et al., No.
85-2826 (9th Cir., filed July 12, 1985).
Cook v. Spillman, et al., No. 86-1642 (9th Cir., filed
July 10, 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).
Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed
Jan. 14, 1985).
Brown v. United States Congress, et al., No. 84-28876(IG) (S.D. Cal., filed Dec. 7, 1984).
Melcher v. Federal Open Market Committee, No. 841335 (D.D.C., filed Apr. 30, 1984).
Florida Bankers Association, et al. v. Board of Governors, Nos. 84-3269, 84-3270 (11th Cir., filed April
20, 1984).
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
WEEKLY REPORTING
CONTENTS
Domestic
Financial
Statistics
MONEY STOCK AND BANK
CREDIT
A3 Reserves, money stock, liquid assets, and debt
measures
A4 Reserves of depository institutions, Reserve
Bank credit
A5 Reserves and borrowings—Depository
institutions
A5 Selected borrowings in immediately available
funds—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
All Maturity distribution of loan and security
holdings
MONETARY AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
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
A33 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales and
asset position
A35 Corporate profits and their distribution
A2
Federal Reserve Bulletin • January 1987
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
REAL
REPORTED BY BANKS IN THE UNITED STATES
ESTATE
A38 Mortgage markets
A39 Mortgage debt outstanding
CONSUMER INSTALLMENT
CREDIT
A40 Total outstanding and net change
A41 Terms
A57
A58
A60
A61
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
BUSINESS
ENTERPRISES IN THE UNITED STATES
FLOW OF 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
Domestic
Nonfinancial
SECURITIES HOLDINGS AND
SELECTED
MEASURES
Statistics
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
International
SUMMARY
Statistics
STATISTICS
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets
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
SPECIAL TABLES
A70 Assets and liabilities of insured commercial
banks, domestic and foreign offices,
December 31, 1985
Money Stock and Bank Credit
1.10
A3
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent) 1
Item
1985
Q4
Q2
Ql
1986
Q3
June
July'
Aug.'
Sept.'
Oct.
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontransaction
10 In M25
11 In M3 only 6
1986
12.5
11.5
10.4
8.2
13.1
12.3
19.1
8.6
17.8
19.8
17.6
8.8
22.9
23.9
23.2
9.9
21.4
19.5
23.7
9.2
25.3
26.3
27.3
8.8
19.7
24.2
16.8
12.0
11.5
12.0
8.4
5.4
13.6
13.4
17.9
9.3
10.7
6.1
6.6
9.5
13.3
7.7
4.3
7.6
8.4
15.2
15.8
10.4
9.0
7.0
9.7
17.3'
11.1'
10.1
8.6
11.5
14.8'
9.5
8.5
6.8'
11.2
16.6
12.8
13.0
9.1
10.8
20.6
11.0
8.9
8.4
12.5
9.6
7.2
8.7
9.1
11.4
14.0
10.5
6.6
n.a.
n.a.
4.6
8.5
3.3
20.6
8.7
3.4
9.1
6.3'
7.7
4.7
11.4
14.2
7.8
.5
6.5
14.4
9.3
-9.1
3.2
-1.6
14.1
1.9
5.3
18.5
11.8
-3.1
-8.8
25.5
-9.0
-2.5'
17.7
-10.0
-4.3
22.9
-5.3
-1.7
30.6
-12.6
7.7
36.0
-10.9
-1.7
41.7
-15.8
-9.4
7.5
-2.9
5.2
3.1
6.6
10.0
20.9
2.6
11.0
23.6'
-3.8'
2.7'
29.1
-5.7
-2.2
22.9
-.5
8.7
18.2
-6.0
2.2
16.1
-6.0
-2.2
26.5
-12.0
-13.0
13.7
13.2'
9.4r
16.9
14.7
12.8'
11.5
9.1'
4.1
14.5
10.6
10.3
19.4
8.7
3.8
14.8
9.5
13.2
8.8
13.7
13.8
11.5
11.4
11.5
n.a.
n.a.
2.2
components
Time and savings deposits
Commercial banks
Savings7
Small-denomination time 8
Large-denomination time 9 1 0
Thrift institutions
15 Savings7
16 Small-denomination time
17 Large-denomination time 9
12
13
14
Debt components4
18 Federal
19 Nonfederal
20 Total loans and securities at commercial banks"
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with the
implementation of the Monetary Control Act and other regulatory changes to
reserve requirements. To adjust for discontinuities due to changes in reserve
requirements on reservable nondeposit liabilities, the sum of such required
reserves is subtracted from the actual series. Similarly, in adjusting for discontinuities in the monetary base, required clearing balances and adjustments to
compensate for float also are subtracted from the actual series.
3. The monetary base not adjusted for discontinuities consists of total
reserves plus required clearing balances and adjustments to compensate for float
at Federal Reserve Banks plus the currency component of the money stock less
the amount of vault cash holdings of thrift institutions that is included in the
currency component of the money stock plus, for institutions not having required
reserve balances, the excess of current vault cash over the amount applied to
satisfy current reserve requirements. After the introduction of contemporaneous
reserve requirements (CRR), currency and vault cash figures are measured over
the weekly computation period ending Monday.
Before CRR, all components of the monetary base other than excess reserves
are seasonally adjusted as a whole, rather than by component, and excess
reserves are added on a not seasonally adjusted basis. After CRR, the seasonally
adjusted series consists of seasonally adjusted total reserves, which include
excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted
currency component of the money stock plus the remaining items seasonally
adjusted as a whole.
4. Composition of the money stock measures and debt is as follows:
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 nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. The source of data on domestic
nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt
data are based on monthly averages. Growth rates for debt reflect adjustments for
discontinuities over time in the levels of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker/dealer), MMDAs, and savings and small time
deposits less the estimated amount of demand deposits and vault cash held by
thrift institutions to service their time and savings deposit liabilities.
6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,
money market fund balances (institution-only), less a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market mutual funds.
7. Excludes MMDAs.
8. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
9. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
10. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
11. Changes calculated from figures shown in table 1.23.
A4
DomesticNonfinancialStatistics • January 1987
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1986
1986
Factors
Aug.
Sept.
Oct.
210,945
215,130
185,339
185,339
0
8,076
8,076
0
0
847
610
16,073
11,084
4,844
17,374
188,598
187,237
1,361
8,252
8,047
205
0
1,046
734
16,500
11,084
5,018
17,420'
201,116
516
Sept. 17
Sept. 24
214,197
213,294
188,195
187,944
251
8,030
7,975
55
0
779
560
16,633
11,084
5,018
17,465
187,375
187,375
0
8,047
8,047
0
0
868
523
16,481
11,084
5,018
17,418'
201,433r
495
202,301
492
3,210
208
5,677
285
1,901
508
1,886
497
6,479
6,405
6,302
6,346
6,321
6,322
6,357
6,302
6,289
6,266
30,308
31,974
32,663
31,470
32,750
32,395
31,923
32,059
33,967
32,815
Oct. 1
Oct. 8
217,100
217,313
212,902
213,770
216,092
213,851
190,388
187,842
2,546
8,323
8,047
276
0
1,094
592
16,704
11,084
5,018
17,429r
190,094
186,808
3,286
8,640
8,039
601
0
940
522
17,118
11,084
5,018
17,439
187,055
187,055
0
7,988
7,988
0
0
863
467
16,529
11,084
5,018
17,449
187,677
187,677
0
7,988
7,988
0
0
653
761
16,690
11,084
5,018
17,459
189,717
188,605
1,112
8,217
7,973
244
0
888
628
16,642
11,084
5,018
17,469
188,083
188,083
0
7,954
7,954
0
0
715
342
16,757
11,084
5,018
17,478
201,704'
496
200,717'
496
200,310
493
201,598
492
203,045
493
202,751
493
201,937
492
3,305
215
4,098
249
7,625
268
8,630
352
3,424
193
2,701
217
3,552
210
3,332
231
1,971
516
1,885
566
1,973
482
1,872
480
1,924
542
1,939
576
1,926
475
1,907
453
Oct. 15
Oct. 22
Oct. 29
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
Held under repurchase a g r e e m e n t s . . . .
4
5
Federal agency obligations
Bought outright
6
Held under repurchase agreements....
7
8
Acceptances
9
Loans
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate a c c o u n t . . . .
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
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 2
End-of-month figures
Wednesday figures
1986
1986
Aug.
Sept.
Oct.
23 Reserve Bank credit
211,705
219,358
24
25
26
27
28
29
30
31
32
33
185,937
185,937
0
8,047
8,047
0
0
913
261
16,547
190,751
184,437
6,314
9,856
8,047
1,809
0
879
849
17,023
11,084
5,018
17,394
Sept. 17
Sept. 24
215,993
213,138
189,995
189,995
0
7,954
7,954
0
0
806
441
16,797
186,918
186,918
0
8,047
8,047
0
0
752
1,266
16,155
11,084
5,018
17,438r
11,084
5,018
17,488
201,778
497
200,63<y
492
1,106
227
1,669
461
Oct. 1
Oct. 8
215,489
212,429
214,905
216,106
221,974
214,647
187,958
186,247
1,711
8,266
8,047
219
0
1,555
924
16,786
186,765
186,765
0
7,988
7,988
0
0
841
323
16,512
187,340
187,340
0
7,988
7,988
0
0
2,185
719
16,673
188,988
188,988
0
7,988
7,988
0
0
638
1,917
16,575
193,130
188,055
5,075
8,877
7,954
923
0
2,261
739
16,967
188,302
188,302
0
7,954
7,954
0
0
807
517
17,067
11,084
5,018
17,427'
11,084
5,018
17,438'
11,084
5,018
17,448
11,084
5,018
17,458
11,084
5,018
17,467
11,084
5,018
17,477
11,084
5,018
17,487
202,517
485
201,392r
496
200,488'
493
200,808
493
202,343
493
203,417
493
202,404
492
202,242
491
7,514
342
2,491
303
4,665
247
7,744
208
5,012
214
3,211
199
3,105
240
3,349
206
3,594
238
1,681
663
1,744
479
1,668
503
1,668
449
1,681
725
1,681
467
1,717
625
1,717
439
1,743
455
Oct. 15
Oct. 22
Oct. 29
SUPPLYING RESERVE FUNDS
U.S. government securities'
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 Banks 2
6,562
6,463
6,342
6,200
6,153
6,144
6,181
6,138
6,212
6,081
32,901
35,113
35,222
31,496
31,826
30,902
33,890
33,941
40,735
33,392
1. Includes securities loaned—fully guaranteed by U.S government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. 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
R E S E R V E S A N D BORROWINGS
Millions of dollars
A5
Depository Institutions
Monthly averages 8
Reserve classification
1
2
3
4
5
6
7
8
9
10
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
1985
1986
Dec.
Dec.
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
21,138
20,755
17,908
2,847
38,894
38,333
561
774
%
2
21,738
22,316
18,958
3,358
40,696
39,843
853
3,186
113
2,604
27,620
22,956
20,522
2,434
48,142
47,085
1,058
1,318
56
499
27,114
22,688
20,160
2,528
47,274
46,378
896
761
68
518
28,892
22,231
19,990
2,241
48,882
48,081
801
893
73
634
28,279
22,474
20,140
2,334
48,419
47,581
838
876
94
584
29,499
22,805
20,439
2,366
49,938
49,007
931
803
108
531
30,313
23,098
20,716
2,381
51,029
50,118
910
741
116
378
30,165
23,451
21,112
2,339
51,277
50,538
740
872
144
465
31,922
23,384
21,267
2,117
53,189
52,463
726
1,008
137
570
Biweekly averages of daily figures for weeks ending
1986
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 16
July 30
Aug. 13
Aug. 27
Sept. 10
Sept. 24
Oct. 8'
Oct. 22'
Nov. 5
Nov. 19 p
31,267
22,466
20,283
2,183
51,550
50,871
679
758
104
442
29,549
23,644
21,095
2,549
50,644
49,528
1,117
702
127
294
30,185
23,323
20,992
2,331
51,177
50,592
585
759
134
373
29,758'
23,792
21,388
2,404
51,146
50,279
867
910
152
515
31,527
22,671
20,534
2,137
52,061
51,268
793
1,111
149
592
32,103
23,623
21,567
2,056
53,670
52,964
706
981
135
569
32,156
24,015
21,790
2,225
53,946
53,287
660
902
125
538
33,007
23,955
21,914
2,041
54,921
54,170
751
771
88
488
33,551
23,208
21,204
2,004
54,754
53,938
817
899
93
476
35,016
23,405
21,518
1,887
56,534
55,468
1,067
811
68
437
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.
S E L E C T E D B O R R O W I N G S IN I M M E D I A T E L Y A V A I L A B L E F U N D S
Large M e m b e r B a n k s '
Averages of daily figures, in millions of dollars
1986 week ending Monday
By maturity and source
1
2
3
4
Sept. 15
Sept. 22
Sept. 29
76,260
9,450
70,433
9,606
65,390
9,338
75,099
9,440
74,640
10,847
72,915
9,966
68,940
9,403
72,150
9,465
78,023
9,448
41,138
6,683
37,936'
6,443
36,375'
7,070
38,350
6,286
42,547
6,851
40,503
6,142
38,472
5,824
36,804
5,698
40,235
5,330
Federal funds purchased, repurchase agreements, and other
selected borrowing in immediately available funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and United States
government agencies
For one day or under continuing contract
For all other maturities
Oct. 6'
Oct. 13'
Oct. 20
Oct. 27
Nov. 3
Nov. 10
Repurchase agreements on United States government
and federal agency securities in immediately
available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
11,318
9,818
11,010
10,283
10,721
10,020
11,362
8,169
12,099
9,204
13,711
8,769
13,586
9,455
11,847
9,829
11,596
9,652
27,380
11,599
26,885
11,483
26,512
10,722
26,492
9,613
26,854
10,530
27,179
10,432
28,346
10,810
29,725
10,915
27,936
11,048
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2
28,114
12,242
26,250
11,631
24,570
10,665
30,137
11,100
28,708
10,922
29,987
10,917
26,244
10,568
29,120
10,261
28,968
10,482
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
A6
1.14
DomesticNonfinancialStatistics • January 1987
FEDERAL RESERVE BANK INTEREST RATES
Percent per annum
Current and previous levels
Extended credit2
Short-term adjustment credit
and seasonal credit1
Federal Reserve
Bank
First 60 days
of borrowing
Next 90 days
of borrowing
After 150 days
Rate on
11/26/86
Effective
date
Previous
rate
Rate on
11/26/86
Previous
rate
Rate on
11/26/86
Previous
rate
Rate on
11/26/86
5 >/2
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
6
5'/2
6
6'/2
7
m
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City . . . .
Dallas
San Francisco. ..
5 '/2
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
6
5Vi
6
6>/2
7
Effective date
for current rates
Previous
rate
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
8/22/86
8/21/86
8/21/86
8/21/86
8/21/86
IVi
Range of rates in recent years3
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
71/2
71/2-8
71/2
8
73/4-8
73/4
73/4
73/4
7V4-73/4
71/4-73/4
71/4
63/4-7V4
63/4
6'/4—63/4
61/4
6-6V4
6
73/4
71/4
7'/4
63/4
63/4
61/4
6V4
6
6
1976—Jan.
19
23
Nov. 22
26
51/2-6
5V2
5i/4-5'/2
51/4
5'/2
51/2
51/4
51/4
1977— Aug. 30
31
Sept. 2
Oct. 26
5'/4-53/4
5V4-53/4
53/4
6
51/4
53/4
53/4
6
6-6'/2
6 Vi
61/2-7
7
7-71/4
71/4
61/2
6V2
7
7
71/4
7'/4
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
1978— Jan.
9
20
May 11
12
July
July
3
10
Effective date
F.R.
Bank
of
N.Y.
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
8'/2-9'/2
9'/2
7%
8
8
8
9 '/>
9'/2
July 20
Aug. 1/
20
Sept. 19
21
Oct. 8
10
10
IO-IOV2
10'/2
101/2-11
11
11-12
12
10
10l/>
10'/>
11
11
12
12
73/4
8
8-8 V2
%Vl
Vi
Vi
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1982— July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
ll'/>-12
111/2
11-11 Vi
11
IOV2
IO-IOV2
10
9V2-IO
9Vi
9-9 V2
9
8V2-9
8l/2-9
8V2
111/2
11V2
11
11
10'/2
10
10
91/2
91/2
9
9
9
Effective date
m
81/2
1980- Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
12
11-12
11
10-11
10
13
13
13
12
11
11
10
10
1984— Apr.
9
13
Nov. 21
26
Dec. 24
8V2-9
9
8V2-9
81/2
8
9
9
81/2
81/2
8
1985— May 20
24
71/2-8
7'/2
m
12
12-13
13
12
13
13
1986— Mar.
1-1 Vi
1
5
13-14
14
13-14
13
12
14
14
13
13
12
May
Nov. 2
6
Dec. 4
1. After May 19, 1986, the highest rate within the structure of discount rates
may be charged on adjustment credit loans of unusual size that result from a major
operating problem at the borrower's facility.
A temporary simplified seasonal program was established on Mar. 8, 1985, and
the interest rate was a fixed rate Vi percent above the rate on adjustment credit.
The program was re-established on Feb. 18, 1986; the rate may be either the same
as that for adjustment credit or a fixed rate Vi percent higher.
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
Range (or
level)—
All F.R.
Banks
71/2
7
10
Apr. 21
23
July 11
Aug. 21
22
6'/2-7
6'/2
6
51/2-6
51/2
7
7
6V2
61/2
6
51/2
51/?
In effect Nov. 26, 1986
51/2
51/2
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
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
R E S E R V E R E Q U I R E M E N T S OF DEPOSITORY INSTITUTIONS'
Percent of deposits
Type of deposit, and
deposit interval
Member bank requirements
before implementation of the
Monetary Control Act
Percent
Net
A7
Effective date
demand2
$10 million-$100 million
$100 million-$400 million
Over $400 million
Time and
Savings
7
9l/2
ll3/4
123/4
16'/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
3
3/16/67
savings2,3
Time 4
$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
3
2Vi
1
3/16/67
1/8/76
10/30/75
6
2Vi
1
12/12/74
1/8/76
10/30/75
1. For changes in reserve requirements beginning 1963, see Board's Annual
Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report
for 1976, table 13. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge Act
corporations.
2. 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 l x h
percent above the base used to calculate the marginal reserve in the statement
week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was
reduced to the extent that foreign loans and balances declined.
Type of deposit, and
deposit interval 5
Depository institution requirements
after implementation of the
Monetary Control Act 6
Percent
Effective date
3
12
12/31/85
12/31/85
Nonpersonal time deposits9
By original maturity
Less than 1 Vi years
1 '/2 years or more
3
0
10/6/83
10/6/83
Eurocurrency
All types
3
11/13/80
Net transaction accounts1-*
$0—$31.7 million
liabilities
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.
Effective with the reserve computation period beginning Dec. 31, 1985, the
amount of the exemption is $2.6 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) described in 12 CFR
section 204.2 (d)(2); (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 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;
effective Jan. 1, 1985, to $29.8 million; and effective Dec. 31, 1985, to $31.7
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 1987
1.16
M A X I M U M I N T E R E S T RATES P A Y A B L E on Time and Savings Deposits at Federally Insured Institutions 1
Percent per annum
Type of deposit
Commercial banks
Savings and loan associations and
mutual savings banks (thrift institutions) 1
In effect Nov. 30, 1986
In effect Nov. 30, 1986
Percent
1 Savings
2 Negotiable order of withdrawal accounts
3 Money market deposit account
(23)
(4)
()
Time accounts
4 7-31 days
(5)
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.
2. Effective Apr. 1, 1986, the interest rate ceiling on savings deposits was
removed. Before Apr. 1, 1986, savings deposits were subject to an interest rate
ceiling of 5Vi percent.
3. Before Jan. 1, 1986, NOW accounts with minimum denomination requirements of less than $1,000 were subject to an interest rate ceiling of 5lA percent.
NOW accounts with minimum required denominations of $1,000 or more and
IRA/Keough (HR10) Plan accounts were not subject to interest rate ceilings.
Effective Jan. 1, 1986, the minimum denomination requirement was removed.
Effective date
4/1/86
1/1/86
12/14/82
1/1/86
10/1/83
Percent
(2)
(43)
()
(5)
Effective date
4/1/86
1/1/86
12/14/82
9/1/86
10/1/83
4. 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,
the minimum denomination and average balance maintenance requirements was
lowered to $1,000. Effective Jan. 1, 1986, the minimum denomination and average
balance maintenance requirements were removed. No minimum maturity period
is required for this account, but depository institutions must reserve the right to
require seven days, notice before withdrawals.
5. Before Jan. I, 1986, deposits of less than $1,000 were subject to an interest
rate ceiling of 5'/i percent. Deposits of less than $1,000 issued to governmental
units were subject to an interest rate ceiling of 8 percent. Effective Jan. 1, 1986,
the minimum denomination requirement was removed.
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1986
Type of transaction
1983
1984
1985
Apr.
Mar.
May
July
June
Aug.
Sept.
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
18,888
3,420
0
2,400
20,036
8,557
0
7,700
22,214
4,118
0
3,500
396
0
0
0
2,988
0
0
0
3,196
0
0
0
1,402
0
0
0
867
0
0
0
2,940
0
0
0
861
0
0
0
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
484
0
18,887
-16,553
87
1,126
0
16,354
-20,840
0
1,349
0
19,763
-17,717
0
0
0
1,152
-1,458
0
0
0
447
-1,129
0
0
0
1,847
-1,819
0
0
0
1,152
-1,957
0
0
0
579
-1,253
0
0
0
1,715
-4,087
0
0
0
1,053
-1,892
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,896
0
-15,533
11,641
1,638
0
-13,709
16,039
2,185
0
-17,459
13,853
0
0
-1,152
1,458
0
0
-447
1,134
0
0
-1,532
1,019
0
0
-1,152
1,957
0
0
-386
1,253
0
0
-1,194
2,587
0
0
-1,053
1,892
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
890
0
-2,450
2,950
536
300
-2,371
2,750
458
100
-1,857
2,184
0
0
0
0
0
0
-5
0
0
0
-315
500
0
0
0
0
0
0
-193
0
0
0
-520
1,000
0
0
0
0
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
383
0
-904
1,962
441
0
-275
2,052
293
0
-447
1,679
0
0
0
0
0
0
0
0
0
0
0
300
0
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
22,540
3,420
2,487
23,776
8,857
7,700
26,499
4,218
3,500
396
0
0
2,988
0
0
3,196
0
0
1,402
0
0
867
0
0
2,940
0
0
861
0
0
25
26
Matched transactions
Gross sales
Gross purchases
578,591
576,908
808,986
810,432
866,175
865,968
88,917
88,604
109,253
103,957
62,663
67,147
80,219
80,674
70,928
69,659
60,460
60,011
73,179
70,817
27
28
Repurchase agreements
Gross purchases
Gross sales
105,971
108,291
127,933
127,690
134,253
132,351
6,748
6,748
21,156
13,634
12,395
19,917
5,640
5,640
18,657
18,657
0
0
14,717
8,403
12,631
8,908
20,477
83
5,214
158
1,857
-403
2,491
4,814
0
0
292
0
0
256
0
0
162
0
0
0
0
0
0
0
0
50
0
0
0
0
0
0
0
90
0
0
*
Repurchase agreements
33 Gross purchases
34 Gross sales
8,833
9,213
11,509
11,328
22,183
20,877
1,821
1,821
3,369
1,955
3,135
4,567
1,691
1,691
4,984
4,984
0
0
2,678
869
35 Net change in federal agency obligations
-672
-76
1,144
0
1,432
-1,482
0
*
-90
1,809
36 Repurchase agreements, net
-1,062
-418
0
0
0
0
0
0
0
0
37 Total net change in System Open Market
Account
10,897
8,414
21,621
83
6,647
-1,324
1,857
-403
2,401
6,623
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
30
31
32
Outright transactions
Gross purchases
Gross sales
Redemptions
*
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 1987
FEDERAL RESERVE BANKS
Millions of dollars
Condition and Federal Reserve Note Statements
Account
Oct. 8
Oct. 1
Wednesday
End of month
1986
1986
Oct. 15
Oct. 22
Oct. 29
Aug.
Sept.
Oct.
Consolidated condition statement
ASSETS
11,084
5,018
510
11,084
5,018
503
11,084
5,018
528
11,084
5,018
506
11,084
5,018
507
11,084
5,018
468
11,084
5,018
507
11,084
5,018
508
841
0
2,185
0
638
0
2,261
0
807
0
913
0
879
0
806
0
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4
To depository institutions
Other
5
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
10
Notes
11
Bonds
12
Total bought outright 1
13 Held under repurchase agreements
14 Total U.S. government securities
0
0
0
0
0
0
0
0
7,988
0
7,988
0
7,988
0
7,954
923
7,954
0
8,047
0
8,047
1,809
7,954
0
94,392
66,597
25,776
186,765
0
186,765
94,967
66,597
25,776
187,340
0
187,340
96,615
66,597
25,776
188,988
0
188,988
95,682
66,597
25,776
188,055
5,075
193,130
95,929
66,597
25,776
188,302
0
188,302
93,564
66,597
25,776
185,937
0
185,937
92,064
66,597
25,776
184,437
6,314
190,751
97,622
66,597
25,776
189,995
0
189,995
15 Total loans and securities
195,594
197,513
197,614
204,268
197,063
194,897
201,486
198,755
7,384
647
6,717
647
12,078
647
6,725
648
6,091
649
5,632
642
9,125
647
6,104
649
9,126
6,739
9,132
6,894
9,137
6,791
9,151
7,168
9,156
7,262
9,147
6,758
9,126
7,250
9,133
7,015
236,102
237,508
242,897
244,568
236,830
233,646
244,243
238,266
184,363
185,881
186,970
185,924
185,753
185,349
184,191
186,022
32,583
5,012
214
725
35,571
3,211
199
467
35,658
3,105
240
625
42,452
3,349
206
439
35.135
3,594
238
455
34,570
1,106
227
461
36,794
7,514
342
663
36,966
2,491
303
479
38,534
39,448
39,628
46,446
39,422
36,364
45,313
40,239
7,061
2,143
5,998
2,193
10,161
2,145
5,986
2,176
5,574
2,067
5,371
2,193
8,276
2,193
5,663
2,275
232,101
233,520
238,904
240,532
232,816
229,277
239,973
234,199
1,844
1,781
376
1,845
1,781
362
1,848
1,780
365
1,853
1,780
403
1,853
1,781
380
1,843
1,781
745
1,849
1,780
641
1,854
1,781
432
33 Total liabilities and capital accounts
236,102
237,508
242,897
244,568
236,830
233,646
244,243
238,266
34 MEMO: Marketable U.S. government securities held in
custody for foreign and international account
162,735
162,954
164,119
164,010
166,086
155,182
163,236
164,020
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 2
19 All 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 credit items
28 Other liabilities and accrued dividends 4
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
Other eligible assets
40
41
U.S. government and agency securities
223,977
39,614
184,363
224,738
38,857
185,881
225,259
38,289
186,970
226,565
40,641
185,924
227,605
41,852
185,753
221,640
36,291
185,349
223,928
39,737
184,191
227,605
41,583
186,022
11,084
5,018
0
168,261
11,084
5,018
0
169,779
11,084
5,018
0
170,868
11,084
5,018
0
169,822
11,084
5,018
0
169,651
11,084
5,018
0
169,247
11,084
5,018
0
168,089
11,084
5,018
0
169,920
42 Total coUateral
184,363
185,881
186,970
185,924
185,753
185,349
184,191
186,022
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
Type and maturity groupings
Wednesday
End of month
1986
1986
Aug. 29
Sept. 30
Oct. 31
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
1 Loans—Total
2
Within 15 days
3
16 days to 90 days
91 days to 1 year
4
841
792
49
0
2,185
2,145
40
0
638
606
32
0
2,261
2,255
6
0
807
802
5
0
913
863
50
0
879
855
24
0
806
783
23
0
5 Acceptances—Total
6
Within 15 days
7
16 days to 90 days
91 days to 1 year
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
185,765
8,555
45,430
57,693
36,698
15,580
22,809
187,340
6,829
46,499
58,925
36,698
15,580
22,809
188,988
10,390
44,538
58,973
36,703
15,575
22,809
193,130
14,839
44,474
58,730
36,703
15,575
22,809
188,302
9,673
46,627
56,915
36,703
15,575
22,809
185,937
5,582
42,894
60,596
38,476
15,580
22,809
190,751
11,681
46,290
57,693
36,698
15,580
22,809
189,995
6,964
48,533
59,855
36,259
15,575
22,809
7,988
41
756
1,710
3,905
1,152
424
7,988
134
972
1,460
3,846
1,152
424
7,988
77
1,069
1,409
3,861
1,148
424
8,877
1,120
1,025
1,355
3,815
1,188
374
7,954
279
940
1,360
3,808
1,193
374
8,047
251
704
1,569
3,925
1,174
424
9,856
2,118
755
1,502
3,905
1,152
424
7,954
279
940
1,360
3,808
1,193
374
9 U.S. government securities—Total
10 Within 15 days 1
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days 1
18
16 days to 90 days
19 91 days to 1 year
20
Over 1 year to 5 years
21
Over 5 years to 10 years
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
1.20
DomesticNonfinancialStatistics • January 1987
AGGREGATE R E S E R V E S OF DEPOSITORY INSTITUTIONS A N D M O N E T A R Y B A S E
Billions of dollars, averages of daily figures
Item
1982
Dec.
1983
Dec.
1984
Dec.
1986
1985
Dec.
Mar.
1 Total reserves2
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
May
June
July
Aug.
Sept.
Oct.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'
2
3
4
5
Apr.
34.28
36.14
3951
45.61
46.87
47.28
48.58
49.45
50.49
51.32
51.81
52.40
33.65
33.83
33.78
170.04
35.36
35.37
35.58
185.39
36.32
38.93
38.66
199.17
44.29
44.79
44.55
216.72
46.10
46.62
45.97
221.26
46.38
47.02
46.47
222.36
47.70
48.29
47.74
224.90
48.64
49.17
48.51
226.63
49.75
50.13
49.58
228.30
50.45
50.91
50.58
230.59
50.80
51.37
51.08
231.63
51.56
52.05
51.65
233.44
50.62
Not seasonally adjusted
6 Total reserves2
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
Required reserves
Monetary base 4
35.01
36.86
40.57
46.84
46.34
47.94
47.71
49.20
50.32
34.37
34.56
34.51
173.07
36.09
36.09
36.30
188.66
37.38
39.98
39.71
202.34
45.52
46.02
45.78
220.36
45.58
46.10
45.44
218.99
47.04
47.68
47.14
222.13
46.84
47.42
46.87
223.61
48.40
48.93
48.27
227.04
49.58
49.96
49.41
230.02
41.85
38.89
40.70
48.14
47.27
48.88
48.42
49.94
51.03
41.22
41.41
41.35
180.42
38.12
38.12
38.33
192.26
37.51
40.09
39.84
204.18
46.82
47.41
47.09r
223.53
46.51
47.17
46.38
221.70
47.99
48.22
48.08
224.88
47.54
48.24
47.58
226.12
49.14
49.81
49.01
229.68
50.29
50.68
50.12
232.55
51.55
52.34
49.75
50.54
50.22' 51.11
49.88
50.82
230.76 231.51
51.50
52.00
51.59
233.04
51.28
53.19
54.62
50.41
50.90
50.54
233.32
52.18
52.76
52.46
235.07
53.78
54.15
53.87
237.26
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 5
11 Total reserves2
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3
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
M O N E Y STOCK, LIQUID A S S E T S , A N D D E B T M E A S U R E S
Billions of dollars, averages of daily figures
1986
1982
Dec.
1983
Dec.
1984
Dec.
1985
Dec.
July'
Aug.'
Sept.'
Oct.
Seasonally adjusted
1 Ml
2 M2
M3
4 L
5 Debt
479.9
1,952.6
2,443.5
2,850.1
4,661.8'
527.1
2,186.0
2,697.3
3,162.7
5,197.2
558.5
2,373.8
2,986.5
3,532.4
5,950.4
626.6
2,566.5
3,201.2
3,839.5
6,769.0
676.0
2,699.0
3,375.2
4,003.1
7,209.3
687.6
2,723.8
3,400.2
4,031.2
7,284.5
693.1
2,740.2
3,424.8
4,061.9
7,353.9
701.2
2,764.1
3,443.5
n.a.
n.a.
134.3
4.3
237.9
103.4
148.3
4.9
242.7
131.3
158.5
5.2
248.4
146.3
170.6
5.9
271.5
178.6
177.5
6.4
288.3
203.8
179.0
6.5
291.8
210.4
179.7
6.5
292.2
214.8
181.2
6.4
293.2
220.4
1,472.7
490.9
1,658.9
511.3
1,815.4
612.7
1,939.9
634.6
2,022.9
676.2
2,036.1
676.5
2,047.1
684.6
2,062.9
679.4
6
7
8
9
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
10
11
Nontransactions components
In M26
In M3 only 7
12
13
Savings deposits 9
Commercial Banks
Thrift institutions
163.7
194.2
133.4
173.2
122.3
167.3
124.5
179.1
133.4
197.8
136.8
200.8
140.9
203.5
145.8
208.0
14
15
Small denomination time deposits 9
Commercial Banks
Thrift institutions
380.4
472.4
351.1
434.1
387.2
500.3
384.1
496.2
380.0
503.7
376.0
501.2
372.6
498.7
367.7
493.7
16
17
Money market mutual funds
General purpose and broker/dealer
Institution-only
185.2
51.1
138.2
43.2
167.5
62.7
176.5
64.6
199.7
77.5
200.5
80.8
202.2
84.4
206.7
84.5
18
19
Large denomination time deposits 10
Commercial Banks 11
Thrift institutions
262.1
65.8
228.7
101.1
263.7
150.2
279.2
157.3
280.1
165.8
281.9
166.1
281.5
165.8
279.3
164.0
70
21
Debt components
Federal debt
Non-federal debt
979.7
3,682.1'
1,172.8
4,024.4'
1,367.7
4,582.8'
1,587.0
5,182.0
1,712.4
5,496.9
1,724.9
5,559.6
1,741.5
5,612.4
n.a.
n.a.
Not seasonally adjusted
490.9
1,958.6
2,453.3
2,856.4
4,655.8'
538.8
2,192.8
2,707.9
3,169.3
5,191.6'
570.5
2,380.8
2,997.8
3,537.6
5,944.6'
639.9
2,574.7
3,213.9
3,845.7
6,762.4
679.8
2,704.3
3,372.7
4,003.2
7,173.8
684.6
2,718.6
3,394.9
4,027.5
7,253.3
690.7
2,730.9
3,417.5
4,056.9
7,331.3
698.4
2,758.1
3,439.5
n.a.
n.a.
136.5
4.1
246.2
104.1
150.5
4.6
251.3
132.4
160.9
4.9
257.3
147.5
173.1
5.5
281.3
180.1
179.1
7.2
290.0
203.5
179.9
7.3
289.0
208.5
179.6
6.9
290.8
213.5
180.9
6.5
292.5
218.5
1,467.7
494.7
1,654.0
515.1
1,810.3
617.0
1,934.7
639.2
2,024.5
668.4
2,034.0
676.3
2,040.2
686.6
2,059.7
681.4
26.3
16.9
230.5
148.7
267.2
149.7
332.4
179.6
359.0
187.1
363.6
189.5
368.1
190.2
371.8
192.1
Savings deposits 8
Commercial Banks
Thrift institutions
162.1
193.1
132.2
172.3
121.4
166.5
123.5
178.3
135.1
198.7
137.3
199.7
140.7
202.5
146.1
208.7
37
38
Small denomination time deposits 9
Commercial Banks
Thrift institutions
380.1
471.7
351.1
434.2
387.6
501.2
384.8
497.6
379.8
502.7
377.9
500.5
375.1
498.4
370.4
496.6
39
40
Money market mutual funds
General purpose and broker/dealer
Institution-only
185.2
51.1
138.2
43.2
167.5
62.7
176.5
64.6
199.7
77.5
200.5
80.8
202.2
84.4
206.7
84.5
41
42
Large denomination time deposits 10
Commercial Banks 11
Thrift institutions
265.2
65.8
230.8
101.4
265.4
150.6
280.9
157.8
279.1
164.7
282.3
166.0
283.6
165.7
282.0
164.3
43
44
Debt components
Federal debt
Non-federal debt
976.4
3,679.3'
1,170.2
4,021.4'
1,364.7
4,579.9'
1,583.7
5,178.7'
1,695.6
5,478.1
1,713.3
5,540.0
1,734.6
5,596.7
V
73
74
75
26
Ml
M2
M3
L
Debt
27
78
79
30
Ml components
Currency 2
Travelers checks 3
Demand deposits 4
Other checkable deposits 5
31
32
Nontransactions components
M2«
M3 only7
33
34
Money market deposit accounts
Commercial banks
Thrift institutions
35
36
For notes see following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • January 1987
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 based on monthly averages.
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
1.22
A15
B A N K DEBITS A N D DEPOSIT T U R N O V E R
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1986
Apr.
June
May
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 deposits 4
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
154,556.0
70,445.1
84,110.9
1,920.8
539.0
192,847.2
95,699.5
97,147.7
2,088.7
385.2
189,819.7
87,846.7
101,973.0
2,255.6
389.7
187,035.1
89,201.2
97,833.9
2,188.0
382.6
188,874.2
91,040.8
97,833.4
2,320.1
417.4
194,457.3
92,961.7
101,495.6
2,414.8
421.0
197,997.9
95,252.0
102,745.9
2,704.8
428.4
379.7
1,528.0
240.9
15.6
5.4
434.4
1,843.0
268.6
15.8
5.0
496.5
2,168.9
301.8
16.7
4.5
593.6
2,635.1
336.6
16.0
3.1
569.7
2,457.8
342.8
17.0
3.1
553.3
2,504.5
323.5
16.2
3.0
556.4
2,417.2
324.2
16.8
3.2
567.6
2,437.0
333.4
16.9
3.2
573.9
2,519.8
334.5
18.4
3.1
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 2
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
MMDA 5
Savings deposits 4
17
18
19
20
21
22
Demand deposits 2
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts 3
MMDA 5
Savings deposits 4
Not seasonally adjusted
DEBITS TO
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
154,108.4
70,400.9
83,707.8
1,903.4
1,179.0
538.7
195,373.5
95,408.5
99,965.0
2,393.2
1,638.8
418.7
184,827.4
85,189.6
99,637.8
2,256.6
1,557.9
377.8
188,924.1
91,315.2
97,608.9
2,356.3
1,697.2
385.9
198,657.9
96,686.1
101,971.8
2,240.4
1,575.9
419.9
186,892.9
88,807.6
98,085.3
2,140.8
1,530.6
413.7
198,433.5
96,489.1
101,944.4
2,524.1
1,612.9
414.2
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
497.4
2,191.1
301.6
16.6
3.8
4.5
600.1
2,661.7
345.0
17.9
4.8
3.4
569.4
2,487.0
343.2
17.1
4.5
3.0
564.1
2,570.0
326.0
17.4
4.8
3.0
587.8
2,620.6
338.7
16.3
4.4
3.2
554.7
2,421.9
326.6
15.1
4.2
3.1
577.6
2,603.6
332.6
17.3
4.4
3.0
DEPOSIT TURNOVER
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 1987
LOANS A N D SECURITIES All Commercial Banks'
Billions of dollars; averages of Wednesday figures
1985
1986
Category
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
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
1,876.0
1,900.4
1,930.0
1,935.5
1,944.6
1,947.9
1,957.5
1,963.7
1,985.0
2,007.7
2,027.1
2,031.6
276.0
163.3
1,436.8
495.7
4.9
273.1
177.6
1,449.7
499.5
4.9
268.2
192.5
1,469.3
502.1
4.9
273.6
188.1
1,473.7
502.4
4.8
269.5
183.3
1,491.8
506.1
4.9
270.0
182.1
1,495.8
507.8
5.2
274.1
181.9
1,501.5
506.7
5.6
274.8
183.6
1,505.3
508.7
6.1
285.4
186.1
1,513.4
508.7
5.8
290.9
192.3
1,524.5
510.4
5.9
294.1
200.5
1,532.5'
510.7'
6.2
299.4
196.5
1,535.6
512.8
6.3
490.7
482.4
8.3
418.0
289.7
39.8
494.7
486.0
8.7
422.4
291.5
40.1
497.2
488.0
9.3
427.1
294.6
44.1
497.6
488.4
9.2
431.4
297.4
43.4
501.2
491.3
9.9
436.1
299.5
50.4
502.6
492.7
9.8
440.7
301.1
48.0
501.0
490.6
10.5
446.4
303.0
46.4
502.6
493.1
9.5
450.7
304.5
42.5
502.8
493.8
9.0
455.9
305.6
44.8
504.4
495.4
9.1
461.4
306.9
44.2
504.5'
495.7
8.9
465.9'
308.8
44.0
506.5
497.7
8.8
470.8
309.8
39.2
32.0
37.1
32.6
36.3
32.6
35.9
31.8'
35.4
32.2'
34.9
32.3'
34.6
33.3
34.1
34.7
33.7
34.2
33.3
34.4
33.3
35.1
33.2
35.6
33.3
50.0
9.0
6.7
18.4
40.3
52.8
9.1
6.9
18.8
39.6
60.5
9.1
7.0
19.4
36.9'
60.3
9.2
7.0
19.6
35.8'
60.2
9.2
6.8
19.8
36.6'
59.8
9.2
5.3
19.9
37.3
59.5
9.3
5.1
19.8
37.9
59.4
9.5
6.4
20.0
35.4
59.0
9.5
6.5
20.0
35.9
59.4
9.3
6.5
20.2
38.5
59.4
9.4
6.4
20.4
39.3
58.5
9.2
6.3
20.4
39.7
Not seasonally adjusted
20 Total loans and securities2
1,875.7
1,912.6
1,934.8
1,932.4
1,944.1
1,950.5
1,956.7
1,965.4
1,981.4
1,999.8
2,024.8
2,026.7
21 U.S. government securities
22 Other securities
23 Total loans and leases 2
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
273.7
163.3
1,438.7
494.8
5.0
271.0
178.7
1,462.9
501.5
5.2
267.7
193.8
1,473.3
501.4
4.9
275.0
188.9
1,468.5
500.1
4.7
273.2
183.9
1,487.1
506.9
5.0
274.0
181.8
1,494.7
510.0
5.2
275.4
182.2
1,499.0
508.5
5.5
276.2
182.5
1,506.7
509.4
6.0
285.3
183.9
1,512.1
508.6
6.0
289.1
192.1
1,518.7
508.3
5.9
292.5
200.5
1,531.9
509.9
6.0
295.1
196.0
1,535.6
511.8
6.1
489.7
481.0
8.8
419.2
291.0
41.0
496.4
487.3
9.0
423.3
294.8
45.4
496.5
487.3
9.2
427.3
297.0
46.8
495.4
486.3
9.1
430.6
296.3
42.6
501.9
492.7
9.2
434.9
296.8
49.5
504.9
495.4
9.5
439.5
298.6
48.5
503.0
493.3
9.7
445.2
301.1
45.6
503.4
494.0
9.4
450.2
303.1
42.5
502.6
493.3
9.3
455.8
304.9
43.0
502.4
493.1
9.4
461.7
307.2
41.3
503.9
494.6'
9.2
466.9
310.2
41.5
505.6
496.5
9.1
472.2
311.4
38.4
32.1
37.2
33.4
36.0
32.8'
35.2
31.2'
34.5
31.6'
34.0
32.2
33.9
33.1
34.1'
34.6
34.2
34.3
34.1
34.6
34.1'
35.3
34.(K
35.4
33.8
50.0
9.3
6.7
18.3
39.1
52.8
9.5
6.9
18.8
40.5
60.5
9.3
7.0
19.6
36.4'
60.3
9.3
7.0
19.8
36.6'
60.2
9.1
6.8
19.8
37.5'
59.8
9.0
5.3
19.9
38.1
59.5
9.1
5.1
19.9
37.9
59.4
9.2
6.4
20.0
37.7
59.0
9.4
6.5
20.0
36.5
59.4
9.1
6.5
20.1
36.3
59.4
9.4
6.4
20.3
38.7
58.5
9.3
6.3
20.3
38.2
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
1.24
Banking Institutions
A17
MAJOR N O N D E P O S I T F U N D S OF COMMERCIAL B A N K S 1
Monthly averages, billions of dollars
1986
1985
Source
Nov.
Total nondeposit funds
Seasonally adjusted 2
Not seasonally adjusted
Federal funds, RPs, and other
borrowings from nonbanks 3
Seasonally adjusted
3
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.
122.3
123.4
128.2
127.9
131.7
131.8
131.7
134.4
141.2
143.7
134.1
135.0
135.7
137.8r
132.6
131.3'
136.0
132.0r
137.7
136.7
142.3
140.6
139.8
138.0
149.4
150.5
154.1
153.7
151.6
151.6
152.7
155.3
160.6
163.1
160.4
161.3
157.9
160.0
157.1
155.8
166.2
162.3
168.0
166.9
167.3
165.6
167.6
165.9
-27.2
-25.9
-19.9
-21.0
-19.4
-26.3
-22.2
-24.5
-30.2
-30.2
-25.0
-27.8
-30.2
74.1
43.9
-31.6
76.3
44.7
-28.0
74.3
46.4
-25.8
69.4
43.6
-26.5
71.7
45.2
-30.2
75.2
45.1
-29.3
72.9
43.6
-30.5
72.2
41.7
-33.8
73.9
40.1
-31.2
75.2
44.0
-29.2
74.0
44.8
-31.9
73.5
41.6
3.1
55.9
58.9
5.7
56.7
62.5
8.1
57.6
65.7
4.8
60.0
64.8
7.1
60.7
67.8
3.9
62.5
66.4
7.1r
60.0
67.1
6.0
62.8
68.8
3.6
64.2
67.8
1.0
66.2
67.2
4.2
67.9
72.1
4.0
68.3
72.3
85.9
87.0
89.4
89.0
87.6
87.7
89.5
92.2
89.7
92.2
89.7
90.6
89.0
91.2
89.2
88.0
95.7
91.8
96.3
95.3
96.0
94.3
96.5
94.8
13.5
7.9
17.5
14.6
19.0
24.0
21.1
24.2
15.7
15.7
17.4
17.8
21.3
21.8
18.5
16.1
14.7
16.8
13.1
11.0
16.0
18.2
13.2
15.3
335.9
337.5
337.6
339.4
349.4
348.3
351.9
350.7
347.7
348.3
346.9
343.5
340.4
339.7
339.8
338.1
338.5r
337.5r
342.9'
343.2'
342.5r
344.6r
340.1
342.8
MEMO
6 Domestically chartered banks' net
positions with own foreign
branches, not seasonally
adjusted 4
7 Gross due from balances
Gross due to balances
8
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
Seasonally adjusted
14
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.
Data for lines 1-4 and 12-17 have been revised in light of benchmarking and
revised seasonal adjustment.
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.
A18
1.25
DomesticNonfinancialStatistics • January 1987
A S S E T S A N D LIABILITIES OF COMMERCIAL B A N K I N G INSTITUTIONS
Last-Wednesday-of-Month Series
Billions of dollars
1985
1986
Account
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
ALL COMMERCIAL BANKING
INSTITUTIONS'
1
2
3
4
5
6
7
8
9
10
11
12
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
13
14
15
16
17
Total cash assets
Reserves with Federal Reserve Banks
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
18
2,068.7
420.4
253.9
166.5
31.1
1,617.2
150.6
1,466.7
500.2
423.7
296.0
246.7
2,065.2
432.5
251.9
180.6
30.1
1,602.6
140.4
1,462.2
496.7
428.7
297.4
239.4
2,078.8
432.8
255.1
177.7
34.0
1,612.0
143.5
1,468.5
501.8
431.5
296.4
238.7
2,091.4
427.2
253.7
173.5
30.1
1,634.2
146.0
1,488.1
508.5
435.9
296.9
246.9
2,113.4
429.5
255.8
173.6
27.8
1,656.1
155.7
1,500.4
510.5
441.7
300.4
247.8
2,101.3
430.9
257.7
173.2
27.0
1,643.5
146.2
1,497.2
506.2
446.4
301.1
243.6
2,105.5
432.6
259.6
173.0
27.4
1,645.5
139.2
1,506.3
512.3
451.4
304.0
238.7
2,134.0
445.7
269.6
176.1
28.7
1,659.6
148.6
1,511.0
507.3
457.6
305.6
240.5
2,154.4
455.1
272.2
183.0
29.3
1,670.0
149.4
1,520.6
510.1
463.2
308.4
238.8
2,171.1
464.6
275.9
188.7
27.9
1,678.5
145.3
1,533.2
512.1
467.7
310.5
242.9
2,173.2
467.4
281.8
185.6
26.0
1,679.8
146.7
1,533.1
512.6
473.5
311.8
235.2
213.3
27.6
22.2
79.5
187.3
21.9
23.0
64.2
193.7
26.2
22.7
66.9
198.1
29.1
21.8
68.8
209.9
25.5
22.3
80.7
221.0
30.2
23.9
84.6
196.0
27.9
23.0
67.3
206.2
28.2
23.3
72.1
205.8
27.9
23.7
73.5
196.6
27.8
22.9
66.3
200.4
31.2
23.5
66.3
36.0
48.0
31.3
47.0
31.8
46.1
31.1
47.4
34.7
46.7
36.8
45.5
32.0
45.8
33.8
48.7
33.6
47.1
32.3
47.4
32.6
46.8
19
Other assets
201.9
187.0
186.5
195.3
207.0
195.9
196.6
196.6
196.2
200.8
198.3
20
Total assets/total liabilities and capital . ..
2,483.8
2,439.6
2,458.9
2,484.8
2,530.3
2,518.3
2,498.1
2,536.7
2,556.4
2,568.4
2,571.9
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1,772.5
536.9
452.0
783.6
367.8
175.8
167.7
1,739.5
488.8
454.2
796.5
364.4
167.6
168.2
1,746.4
492.1
457.2
797.1
374.7
169.1
168.8
1,762.8
502.5
462.0
798.3
373.1
179.3
169.7
1,798.4
540.7
467.8
789.9
390.7
170.4
170.8
1,807.4
542.7
477.3
787.5
367.4
173.1
170.3
1,791.9
523.3
482.4
786.3
366.8
168.5
170.9
1,819.5
540.0
490.8
788.7
379.2
168.6
169.4
1,833.6
544.2
497.7
791.7
377.3
174.7
170.8
1,830.8
537.4
504.4
789.0
388.1
177.5
172.1
1,843.8
547.5
514.8
781.5
380.0
175.1
173.0
28
U.S. government securities (including
trading account)
Other securities (including trading
account)
269.7
269.8
278.4
273.7
274.0
275.1
276.5
288.8
289.8
292.5
298.6
181.8
192.8
188.4
183.6
183.3
182.8
183.5
185.6
194.6
200.0
194.8
1.954.3
409.9
249.0
160.9
31.1
1,513.4
123.8
1,389.5
445.3
418.4
295.7
230.1
1,954.3
421.1
247.0
174.1
30.1
1,503.1
115.8
1,387.3
442.5
423.6
297.1
224.1
1,964.0
420.8
249.6
171.2
34.0
1,509.2
115.8
1,393.5
446.2
426.4
296.2
224.7
1,972.4
416.0
248.5
167.5
30.1
1,526.3
120.2
1,406.1
448.2
430.7
296.6
230.7
1,993.3
416.1
248.8
167.2
27.8
1,549.4
129.3
1,420.1
452.3
436.3
300.1
231.4
1,985.3
417.1
250.2
166.9
27.0
1,541.3
123.3
1,418.0
449.8
440.7
300.8
226.7
1,990.0
419.6
253.1
166.5
27.4
1,543.0
117.3
1,425.8
452.5
445.8
303.6
223.9
2,014.0
432.5
263.2
169.4
28.7
1,552.8
122.7
1,430.1
448.4
451.9
305.3
224.6
2,029.4
440.2
264.5
175.7
29.3
1,559.8
123.1
1,436.7
448.4
457.3
308.1
222.9
2,039.8
448.0
267.5
180.5
27.9
1,564.0
118.9
1,445.1
447.2
461.7
310.1
226.1
2,046.2
450.7
272.9
177.8
26.0
1,569.5
122.4
1,447.2
447.2
467.7
311.5
220.8
197.2
25.8
22.2
79.3
171.1
21.0
23.0
63.8
179.1
25.5
22.6
66.5
182.7
28.4
21.7
68.4
194.3
24.4
22.2
80.3
205.8
28.7
23.8
84.2
180.1
26.3
22.9
66.7
187.8
27.2
23.2
71.7
189.3
26.6
23.7
73.1
180.4
26.9
22.8
65.9
183.1
29.7
23.4
65.6
34.3
35.7
29.4
34.0
30.1
34.3
29.4
34.7
33.0
34.3
35.1
34.0
30.2
34.0
32.0
33.6
31.9
34.1
30.5
34.4
30.8
33.5
MEMO
29
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 2
30
31
32
33
34
35
36
37
38
39
40
41
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
4?
43
44
45
46
Total cash assets
Reserves with Federal Reserve Banks
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
47
48
Other assets
150.0
137.8
134.6
144.0
150.3
142.8
144.1
143.2
141.7
145.5
142.8
49
Total assets/total liabilities and capital . ..
2,301.6
2,263.1
2,277.8
2,299.1
2,337.9
2,334.0
2,314.1
2,345.0
2,360.3
2,365.7
2,372.1
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
1,724.4
529.5
450.3
744.7
295.7
116.9
164.6
1,689.6
481.6
452.4
755.7
298.0
110.5
165.0
1,698.2
484.8
455.3
758.1
304.9
109.0
165.6
1,713.1
495.0
460.1
758.1
304.8
114.6
166.5
1,749.1
533.1
465.8
750.1
309.1
112.0
167.7
1,758.7
535.3
475.2
748.1
294.2
113.9
167.2
1,741.4
515.5
480.3
745.6
293.5
111.5
167.8
1,768.0
532.1
488.7
747.2
300.5
110.3
166.2
1,779.9
536.1
495.5
748.2
295.5
117.3
167.7
1,775.2
529.3
502.1
743.8
305.2
116.4
168.9
1,788.6
539.7
512.5
736.5
299.3
114.3
169.8
1. 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.
2. 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
1.26
A19
A L L LARGE W E E K L Y REPORTING COMMERCIAL B A N K S with Domestic Assets of $1.4 Billion or More on
December 31, 1982, Assets and Liabilities
Millions of dollars, Wednesday figures
1986
Account
Sept. 3
1 Cash and balances due from depository institutions
Total loans, leases and securities, net
U.S. Treasury and government agency
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks, and securities
Other trading account assets
Federal funds sold1
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross 2
Other loans, gross 2
Commercial and industrial 2
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
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
Total assets
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.
Total liabilities
Residual (total assets minus total liabilities)4
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
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
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 MMDAs)
Sept. 17
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
100,532
92,899
92,984
118,066
90,021
107,770
98,357
108,527
100,020
967,681
961,680
957,252
957,371
973,244
965,268
966,701
962,588
970,361
104,527
104,266
107,780
104,097
105,279
105,436
102,040
106,507
103,985
19,315
18,823
20,023
20,742
19,947
20,348
22,808
24,875
22,593
85,212
85,443
87,757
83,749
84,536
82,628
82,092
81,392
81,633
17,257
17,141
17,087
17,274
17,310
18,238
17,876
17,314
17,956
40,324
40,103
39,946
38,932
39,826
38,436
37,766
38,011
38,808
30,724
27,631
28,200
27,544
25,954
26,450
27,400
25,510
25,426
73,875
73,575
74,484
72,350
76,348
75,762
77,701
79,275
78,480
5,074
4,866
4,535
4,901
7,098
6,223
5,821
8,788
7,785
69,009
68,501
67,816
69,941
69,584
70,125
70,604
70,487
70,695
59,024
58,287
59,466
60,448
60,126
61,466
61,013
61,327
61,329
10,252
10,916
10,811
11,007
11,107
11,068
11,508
10,623
10,684
48,035
48,550
48,213
49,441
49,020
49,945
49,959
50,704
50,645
9,477
9,529
9,457
9,543
9,112
9,492
9,137
9,365
9,160
5,399
4,580
5,096
5,375
5,989
5,425
5,346
5,351
5,106
63,450
60,516
55,978
62,627
58,974
56,348
64,656
62,117
61,056
38,846
35,750
33,418
39,012
34,772
32,312
39,054
38,529
37,813
14,772
14,327
15,636
15,238
17,219
13,939
15,470
15,039
13,830
9,994
8,967
8,233
8,383
9,677
8,798
10,474
8,731
7,488
737,259
741,614
739,961
738,664
739,872
738,422
744,423
733,892
739,576
720,957
725,327
723,669
727,987
722,193
723,467
721,964
723,334
717,613
259,145
258,701
257,388
258,542
256,623
259,659
258,329
258,439
256,616
2,484
2,390
2,387
2,257
2,257
2,286
2,268
2,447
2,257
256,660
256,311
255,001
257,402
256,255
254,366
254,359
256,061
255,991
251,155
252,757
252,469
252,398
252,077
250,390
253,510
250,330
251,931
3,842
3,846
3,857
3,903
3,892
3,984
3,976
4,029
4,061
199,567
200,696
200,268
198,821
198,294
198,712
198,658
196,674
197,426
140,712
141,026
140,135
140,460
139,364
139,649
140,101
138,596
138,936
48,769
48,198
47,203
48,177
49,250
48,738
48,611
47,876
47,496
15,642
15,724
15,643
15,581
14,915
16,616
16,644
14,938
15,045
4,575
5,858
4,810
6,035
5,304
5,260
5,258
5,774
5,058
26,984
27,269
27,664
27,347
27,122
28,004
26,691
27,163
27,393
14,855
12,962
13,816
14,473
16,294
16,043
16,791
17,567
15,269
5,922
5,909
5,776
6,017
5,960
5,997
6,008
6,059
6,008
35,531
35,472
35,724
36,251
35,908
36,157
36,080
36,230
36,443
3,224
3,248
3,246
3,086
3,194
3,153
3,121
3,170
3,234
16,856
17,614
16,524
17,660
18,620
17,302
16,920
18,447
16,510
16,287
16,292
16,302
16,458
16,436
16,472
16,279
16,405
16,242
4,944
4,950
4,933
4,902
4,877
4,910
4,884
4,869
4,846
16,273
16,251
16,261
16,252
16,163
16,314
16,369
16,388
16,311
718,744
716,048
720,430
717,503
717,210
723,382
712,654
718,600
718,416
127,824
124,531
124,789
129,724
126,746
133,767
126,303
129,236
127,731
1,206,619 1,188,911 1,194,295 1,174,138 1,214,781 1,187,977 1,213,570 1,186,743 1,174,940
212,947
212,267
246,596
215,872
209,278
241,097
217,506
219,345
234,522
187,010
163,396
163,670
167,357
159,937
185,025
178,174
168,931
169,593
4,914
5,458
4,828
6,030
5,138
5,524
6,103
4,668
5,519
2,495
2,580
3,238
2,972
2,785
1,490
2,169
1,607
2,611
24,214
24,298
23,713
31,249
24,263
29,178
25,239
25,614
29,377
6,478
6,104
6,847
7,599
6,580
7,065
6,495
6,498
7,260
874
828
794
911
854
927
972
811
701
9,995
10,595
9,872
9,535
9,547
11,310
8,751
8,975
11,884
50,927
51,391
51,377
50,502
48,643
50,375
50,510
50,618
51,042
499,512
500,989
501,470
498,878
499,468
501,642
500,448
499,768
499,540
461,189
463,149
460,398
460,646
462,292
461,489
463,269
461,923
461,099
25,926
25,879
25,868
25,660
25,926
25,673
25,653
25,526
25,716
893
910
799
870
878
863
850
860
883
10,287
10,489
11,095
10,618
10,346
10,752
10,666
10,606
10,612
1,218
1,213
1,283
1,218
1,269
1,254
1,237
1,237
1,230
254,958
244,891
256,038
249,894
249,389
255,179
252,855
255,181
253,589
1,688
195
787
1,680
100
230
3,521
150
730
6,514
6,362
2,267
6,846
19,716
808
16,366
18,470
2,863
246,755
247,996
247,527
237,850
228,886
236,479
248,527
238,665
249,996
80,471
84,513
79,827
84,438
84,307
84,291
82,911
86,725
85,157
1,123,850 1,105,734 1,111,393 1,091,070 1,131,340 1,104,116 1,129,808 1,102,858 1,090,977
83,885
83,861
83,762
83,964
83,177
82,902
83,068
83,441
82,769
938,054
747,165
153,714
1,706
1,023
684
215,324
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. 3J, J977, see table 1.13.
Sept. 10
930,968
743,151
154,143
1,729
1,032
697
215,623
938,286
749,159
153,741
1,738
1,041
697
215,671
929,655
745,843
154,654
1,748
1,046
702
214,955
938,586
753,381
153,604
1,744
1,047
698
218,426
931,837
746,699
153,607
1,729
1,027
702
218,107
934,376
750,575
152,532
1,705
1,007
698
220,259
931,423
749,002
152,852
1,736
1,039
697
218,405
929,403
744,176
152,050
1,703
1,006
697
218,429
4. This is not a measure of equity capital for use in capital adequacy analysis or
for other analytic uses.
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.
A20
1.28
DomesticNonfinancialStatistics • January 1987
L A R G E W E E K L Y REPORTING COMMERCIAL B A N K S IN N E W YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures except as noted
1986
Account
Sept. 3
Sept. 10
Sept. 17
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Oct. 2 2
Oct. 2 9
1
Cash and balances due from depository institutions
24,696
25,700
22,741
20,592
30,803
21,423
28,%7
28,537
22,075
2
Total loans, leases and securities, net 1
Securities
U.S. Treasury and government agency 2
Trading account 2
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities 2
Trading account 2
Investment account
States and political subdivisions, by maturity
One year or less
Over one year
Other bonds, corporate stocks and securities
Other trading account assets 2
Loans and leases
Federal funds sold 3
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
202,915
202,817
201,427
202,739
207,604
205,670
207,479
205,107
202,955
0
0
10,735
1,197
5,689
3,849
0
0
17,221
14,927
1,767
13,160
2,294
0
0
0
10,666
1,246
5,547
3,872
0
0
17,089
14,772
1,767
13,005
2,316
0
0
0
10,155
1,293
5,133
3,729
0
0
17,074
14,982
2,427
12,555
2,092
0
0
0
10,989
1,363
5,344
4,281
0
0
16,967
14,957
2,386
12,570
2,010
0
0
0
11,159
1,311
5,290
4,557
0
0
16,933
14,859
2,423
12,436
2,073
0
0
0
11,404
1,322
5,490
4,592
0
0
16,722
14,702
2,374
12,328
2,020
0
0
0
11,346
1,342
5,594
4,410
0
0
16,510
14,492
2,333
12,160
2,017
0
0
0
11,437
1,348
5,690
4,400
0
0
16,343
14,325
2,354
11,970
2,018
0
0
0
13,582
1,398
5,659
6,525
0
0
16,188
14,112
2,099
12,012
2,076
0
26,009
13,491
7,1%
5,322
154,960
151,768
57,652
563
57,089
56,628
460
33,026
19,357
17,009
6,686
2,964
7,359
9,040
325
8,879
836
5,643
3,192
1,466
4,545
148,950
75,527
30,352
15,754
6,226
8,373
150,798
147,593
57,037
580
56,456
55,975
482
33,061
19,446
16,410
6,592
2,246
7,571
7,401
329
8,853
735
4,321
3,205
1,473
4,615
144,710
71,300'
26,664
12,619
7,595
6,450
153,636
150,411
57,477
504
56,973
56,505
469
33,488
19,544
16,706
6,780
2,279
7,646
8,735
316
8,915
815
4,415
3,225
1,480
4,622
147,534
73,426
25,452
11,349
7,020
7,083
155,358
152,116
56,997
459
56,537
56,035
502
33,770
19,434
18,478
8,469
2,712
7,297
8,655
314
9,011
749
4,708
3,242
1,484
4,543
149,331
70,069
28,340
12,364
9,119
6,858
157,044
153,786
58,221
457
57,764
57,337
427
33,553
19,575
18,076
8,432
2,526
7,118
8,654
362
8,830
868
5,646
3,259
1,477
4,3%
151,172
72,822
28,823
13,994
6,703
8,126
154,724
151,445
58,338
454
57,884
57,490
394
33,616
19,596
18,069
7,857
3,064
7,149
7,355
353
8,787
845
4,486
3,279
1,510
4,492
148,722
70,463
30,596
15,647
7,585
7,363
155,029
151,745
58,801
558
58,243
57,843
400
33,563
19,701
17,607
7,599
2,926
7,082
7,018
300
8,710
916
5,129
3,284
1,512
4,489
149,028
69,516
28,731
12,971
7,711
8,049
154,608
151,305
58,647
622
58,025
57,628
397
33,943
19,740
17,358
7,707
2,437
7,215
7,159
309
8,669
918
4,561
3,304
1,516
4,497
148,595
66,849
24,443
10,704
6,958
6,780
154,790
151,473
58,148
629
57,519
57,154
366
34,190
19,702
16,950
7,632
2,015
7,302
6,784
282
8,676
899
5,842
3,317
1,518
4,530
148,742
68,856
303,138
299,816r
297,594
293,400
311,228
297,556
305,963
300,493
293,886
58,598
39,186
496
213
6,515
5,963
575
5,649
55,811
38,342
535
493
6,901
5,247
665
3,627
56,120
39,024
709
209
6,347
5,232
812
3,787
54,785
36,487
790
494
6,626
5,414
693
4,281
66,457
45,477
1,115
213
8,276
5,772
776
4,830
55,279
38,034
654
592
5,594
5,490
659
4,255
65,283
43,773
1,200
565
7,707
6,410
731
4,8%
54,555
36,298
792
514
6,035
5,276
758
4,882
54,312
37,308
544
495
6,089
4,948
672
4,255
54
55
56
57
58
59
60
61
62
63
64
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
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money 5
Other liabilities and subordinated note and debentures
5,965
92,228
83,534
5,667
84
2,317
625
83,395
0
942
82,453
35,880
6,016
92,212
83,424
5,645
90
2,425
628
83,383
2,540
119
80,724
35,205'
6,035
92,525
83,884
5,535
74
2,403
628
79,921
0
3,907
76,014
35,855
5,819
92,744
83,755
5,622
72
2,635
659
77,216
250
4,736
72,230
35,785
6,064
94,%9
85,871
5,779
68
2,603
648
80,615
0
3,748
76,867
35,804
6,190
93,852
84,554
5,941
73
2,632
651
81,933
1,450
1,207
79,275
32,878
6,171
95,261
86,182
5,821
78
2,554
626
77,863
0
501
77,361
33,929
6,126
94,472
85,255
5,953
80
2,549
634
81,937
1,380
2,005
78,552
35,974
6,113
93,896
84,846
5,947
79
2,399
626
76,552
0
1,751
74,801
35,799
65
Total liabilities
276,066
272,628'
270,456
266,350
283,910
270,131
278,507
273,064
266,672
66
Residual (total assets minus total liabilities)6
27,072
27,188
27,138
27,051
27,318
27,424
27,456
27,428
27,214
188,748
160,792
32,608
186,558
158,804
32,668
188,130
160,902
32,927
188,949
160,993
32,954
192,680
164,588
33,560
189,822
161,6%
33,429
190,234
162,378
33,607
190,442
162,661
33,669
190,666
160,896
33,418
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
42
43
44
45
46
47
48
49
50
51
52
53
MEMO
67
68
69
Total loans and leases (gross) and investments adjusted 1 ' 7
Total loans and leases (gross) adjusted 7
Time deposits in amounts of $100,000 or more
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
L A R G E W E E K L Y REPORTING U . S . B R A N C H E S A N D A G E N C I E S OF FOREIGN B A N K S '
Liabilities
Millions of dollars, Wednesday figures
A21
Assets and
1986
Account
Sept. 3
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
Cash and due from depository institutions.
Total loans and securities
U.S. Treasury and govt, agency securities
Other securities
Federal funds sold2
To commercial banks in the United States
Toothers
Other loans, gross
Commerci^ and industrial
Bankers acceptances and commercial
paper
Mother
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....
Transaction accounts and credit balances 3
Individuals, partnerships, and
corporations
Other
Nontransaction accounts 4
Individuals, partnerships, and
corporations
Other
Borrowings from other than directly
related institutions
Federal funds purchased 5
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. 10
Sept. 17
Sept. 24
Oct.
1
Oct.
8
Oct.
15
Oct.
22
Oct.
29
10,587
73,793
5,613
5,491
3,976
3,003
972
58,714
33,964
10,064
72,869
5,736
5,620
3,755
2,789
966
57,758
34,172
9,388
73,551
5,947
5,692
3,771
2,855
916
58,142
34,604
9,647
76,462
5,917
5,710
4,805
3,630
1,175
60,030
35,910
9,352
76,737
5,931
5,712
4,093
3,089
1,004
61,000
36,724
10,380
75,876
6,011
5,712
5,377
4,352
1,026
58,776
35,588
10,020
75,644
5,768
5,788
5,773
4,594
1,178
58,316
35,503
10,245
73,183
5,750
5,374
5,480
4,174
1,306
56,580
35,678
10,592
74,011
6,230
5,371
4,682
3,902
780
57,728
36,307
2,984
30,980
28,702
2,278
16,918
13,932
1,202
1,784
605
2,918
4,309
23,007
14,968
122,355
3,143
31,029
28,682
2,347
16,194
13,167
1,182
1,845
605
2,495
4,292
22,738
13,706
119,378
3,223
31,381
29,064
2,317
15,605
12,679
1,166
1,760
602
2,919
4,411
22,900
13,389
119,229
3,225
32,685
30,326
2,359
15,680
12,696
1,161
1,822
642
3,403
4,395
22,880
13,552
122,542
3,305
33,419
31,156
2,263
15,877
12,535
1,291
2,051
561
3,257
4,581
23,087
15,675
124,850
3,064
32,524
30,294
2,229
15,350
12,196
1,064
2,089
567
2,802
4,468
23,221
15,791
125,268
2,977
32,526
30,183
2,343
14,776
11,458
1,109
2,209
702
2,841
4,492
22,958
15,050
123,673
3,058
32,620
30,240
2,381
13,922
10,786
986
2,150
541
2,022
4,417
23,303
13,708
120,438
3,036
33,271
30,955
2,316
14,174
11,022
1,038
2,114
532
2,249
4,465
23,280
12,934
120,817
35,704
3,232
35,779
3,134
36,561
3,275
36,579
3,149
36,775
3,097
36,344
3,312
36,446
3,574
35,342
3,050
36,608
3,284
1,802
1,430
32,472
1,800
1,335
32,644
1,777
1,498
33,286
1,778
1,371
33,430
1,721
1,376
33,677
1,994
1,318
33,032
1,882
1,692
32,872
1,825
1,224
32,292
1,811
1,473
33,324
26,349
6,122
26,508
6,136
27,253
6,033
27,427
6,003
27,646
6,031
26,748
6,284
26,642
6,230
26,014
6,278
27,129
6,195
51,432
26,483
48,755
26,124
47,563
24,985
47,806
25,059
50,875
27,680
52,898
31,046
50,873
28,947
46,956
25,278
46,772
24,966
17,888
8,595
24,949
17,387
8,737
22,632
16,577
8,408
22,578
15,189
9,870
22,747
19,103
8,577
23,195
21,302
9,744
21,852
19,317
9,630
21,926
15,266
10,012
21,678
16,527
8,439
21,805
22,452
2,497
24,155
11,064
122,355
20,141
2,491
24,138
10,706
119,378
20,129
2,450
24,676
10,428
119,229
20,457
2,290
24,815
13,341
122,542
21,026
2,168
24,750
12,450
124,850
19,651
2,201
24,931
11,095
125,268
19,841
2,085
24,570
11,784
123,673
19,303
2,374
24,805
13,335
120,438
19,741
2,065
24,833
12,605
120,817
56,858
45,754
56,913
45,557
58,018
46,378
60,136
48,508
61,113
49,469
59,328
47,605
59,591
48,035
58,224
47,100
59,086
47,486
MEMO
41 Total loans (gross) and securities adjusted 6
42 Total loans (gross) adjusted 6
1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and
agencies of foreign banks that include those branches and agencies with assets of
$750 million or more on June 30, 1980, plus those branches and agencies that had
reached the $750 million asset level on Dec. 31, 1984.
2. Includes securities purchased under agreements to resell.
3. Includes credit balances, demand deposits, and other checkable deposits.
4. Includes savings deposits, money market deposit accounts, and time
deposits.
5. Includes securities sold under agreements to repurchase.
6. Exclusive of loans to and federal funds sold to commercial banks in the
United States.
A22
1.31
DomesticNonfinancialStatistics • January 1987
GROSS D E M A N D DEPOSITS Individuals, Partnerships, and Corporations'
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1981
Dec.
1982
Dec.
1983
Dec.
1985
1984
Dec.
Mar. 3 - 4
1 All holders—Individuals, partnerships, and
corporations
2
3
4
5
6
Financial business
Nonfinancial business
Consumer
Foreign
Other
June
1986
Sept.
Dec.
Mar.
June
288.9
291.8
293.5
302.7
286.3
298.4
299.3
321.0
307.4
322.4
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
166.3
81.5
3.6
19.7
27.3
157.9
78.9
3.6
18.7
27.9
164.5
82.8
3.7
19.5
28.1
167.2
82.0
3.5
18.5
32.3
178.5
85.5
3.5
21.2
31.8
166.6
84.0
3.4
21.6
32.3
180.0
86.4
3.0
20.6
Weekly reporting banks
1981
Dec.
7 All holders—Individuals, partnerships, and
corporations
8
9
10
11
12
Financial business
Nonfinancial business
Consumer
Foreign
Other
1982
Dec.
1985
1984
Dec. 2
Mar. 3 4
June
1986
Sept.
Dec.
Mar.
June
137.5
144.2
146.2
157.1
147.7
151.2
153.6
168.6
159.7
168.5
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
25.3
87.1
30.5
3.4
10.9
21.9
82.3
30.2
3.4
9.8
22.1
83.7
31.0
3.5
10.9
22.7
85.5
31.6
3.3
10.5
25.9
94.5
33.2
3.1
12.0
25.5
86.8
32.6
3.3
11.5
25.7
93.1
34.9
2.9
11.9
1. Figures include cash items in process of collection. Estimates of gross
deposits are based on reports supplied by a sample of commercial banks. Types of
depositors in each category are described in the June 1971 BULLETIN, p. 466.
Figures may not add to totals because of rounding.
2. Beginning in March 1984, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1983 based on the new weekly reporting panel are: financial
business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other,
9.5.
3. Beginning March 1985, financial business deposits and, by implication, total
gross demand deposits have been redefined to exclude demand deposits due to
1983
Dec.
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.
4. Historical data back to March 1985 have been revised to account for
corrections of bank reporting errors. Historical data before March 1985 have not
been revised, and may contain reporting errors. Data for all commercial banks for
March 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;
financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;
other, - . 1 . Data for weekly reporting banks for March 1985 were revised as
follows (in billions of dollars): all holders, - . 1 ; financial business, - . 7 ; nonfinancial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .
Financial Markets
1.32
A23
COMMERCIAL PAPER A N D B A N K E R S D O L L A R A C C E P T A N C E S O U T S T A N D I N G
Millions of dollars, end of period
1986
Instrument
Dec.
Dec.
Dec.
Dec.
Dec.
Apr.
May
June
July
Aug.
Sept.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies 3
Dealer-placed paper4
Total
Bank-related (not seasonally
adjusted)
Directly placed paper5
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies 6
165,829
166,436
187,658
237,586
300,899
297,108
309,843
310,211
311,435
326,601
326,567
30,333
34,605
44,455
56,485
78,443
83,871
87,423
89,757
90,038
94,084
97,994
6,045
2,516
2,441
2,035
1,602
1,520
1,575
1,568
1,772
1,799
1,980
81,660
84,393
97,042
110,543
135,504
135,801
142,252
142,933
142,121
149,200
147,497
26,914
53,836
32,034
47,437
35,566
46,161
42,105
70,558
44,778
86,952
37,835
77,436
39,009
80,168
40,147
78,021
39,067
79,276
40,415
83,317
37,455
81,076
Bankers dollar acceptances (not seasonally adjusted) 7
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
11
12
13
69,226
79,543
78,309
77,121
68,115
66,235
66,759
67,080
66,437
64,480'
67,009
10,857
9,743
1,115
10,910
9,471
1,439
9,355
8,125
1,230
9,811
8,621
1,191
11,174
9,448
1,726
12,287
10,261
2,026
12,216
10,254
1,962
12,789
10,641
2,147
11,577
9,257
2,320
12,127
9,794
2,333
13,101
11,001
2,101
195
1,442
56,731
1,480
949
66,204
418
729
67,807
0
671
66,639
0
937
56,004
0
746
53,202
0
664
53,880
0
896
53,396
0
931
53,929
0
897
51,456'
0
924
52,984
14,765
15,400
39,060
17,683
16,328
45,531
15,649
16,880
45,781
17,560
15,859
43,702
15,147
13,204
39,765
14,464
13,473
38,299
15,094
13,574
38,091
15,106
13,721
38,254
15,601
13,781
37,056
15,796
12,948
35,736'
16,612
12,693
37,704
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
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
1.33
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 were 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 R A T E C H A R G E D BY B A N K S on Short-Term Business Loans
Percent per annum
Rate
11.50
12.00
12.50
13.00
12.75
12.50
12.00
11.75
11.25
10.75
Effective Date
1985—Jan. 15
May 20
June 18
10.50
10.00
9.50
1986—Mar. 7
Apr. 21
July 11
Aug. 26
9.00
8.50
8.00
7.50
NOTE. These data also appear in the Board's H.15 (519) release. For address,
see inside front cover.
Average
rate
Rate'
1984—Jan..
Feb.
Mar.
Apr.
May.
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
11.00
11.00
1985—Jan..
Feb.
Mar.
Apr.
May.
10.61
10.50
10.50
10.50
10.31
11.21
11.93
12.39
12.60
13.00
13.00
12.97
12.58
11.77
11.06
Month
1985—June
July
Aug
Sept
Oct
Nov
Dec
1986—Jan
Feb
Mar
May
June
July
Aug
Sept
Oct
A24
1.35
DomesticNonfinancialStatistics • January 1987
I N T E R E S T R A T E S Money and Capital Markets
Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.
1986
Instrument
1983
1984
1986, week ending
1985
July
Aug.
Sept.
Oct.
Oct. 3
Oct. 10
Oct. 17
Oct. 24
Oct. 31
MONEY MARKET RATES
1 Federal funds 1 - 2
2 Discount window borrowing 1 ' 2 3
Commercial paper 4 ' 5
1-month
3
4
3-month
5 6-month
Finance paper, directly placed4-5
1-month
6
3-month
7
8 6-month
Bankers acceptances 5 - 6
3-month
9
10 6-month
Certificates of deposit, secondary market 7
1-month
11
12 3-month
13 6-month
14 Eurodollar deposits, 3-month 8
U.S. Treasury bills 5
Secondary market 9
15
3-month
16
6-month
17
1-year
Auction average 10
18
3-month
19
6-month
1-year
20
9.09
8.50
10.22
8.80
8.10
7.69
6.56
6.16
6.17
5.82
5.89
5.50
5.85
5.50
6.08
5.50
5.75
5.50
5.83
5.50
5.91
5.50
5.86
5.50
8.87
8.88
8.89
10.05
10.10
10.16
7.94
7.95
8.01
6.42
6.33
6.24
6.02
5.92
5.83
5.74
5.68
5.61
5.74
5.68
5.61
5.83
5.76
5.70
5.67
5.61
5.53
5.73
5.67
5.59
5.78
5.74
5.68
5.74
5.69
5.61
8.80
8.70
8.69
9.97
9.73
9.65
7.91
7.77
7.75
6.42
6.31
6.24
5.98
5.94
5.90
5.76
5.61
5.54
5.74
5.56
5.50
5.84
5.65
5.61
5.67
5.53
5.50
5.77
5.53
5.46
5.79
5.57
5.49
5.69
5.55
5.46
8.90
8.91
10.14
10.19
7.92
7.96
6.23
6.14
5.80
5.71
5.60
5.56
5.58
5.52
5.63
5.59
5.43
5.36
5.60
5.55
5.67
5.64
5.59
5.53
8.96
9.07
9.27
9.56
10.17
10.37
10.68
10.73
7.97
8.05
8.25
8.28
6.43
6.37
6.36
6.54
5.97
5.92
5.92
6.06
5.73
5.71
5.71
5.88
5.71
5.69
5.70
5.88
5.79
5.77
5.77
5.99
5.62
5.59
5.59
5.84
5.70
5.69
5.69
5.79
5.79
5.78
5.79
5.95
5.69
5.68
5.69
5.94
8.61
8.73
8.80
9.52
9.76
9.92
7.48
7.65
7.81
5.83
5.86
5.90
5.53
5.58
5.60
5.21
5.35
5.45
5.18
5.26
5.41
5.19
5.35
5.47
5.05
5.10
5.27
5.20
5.28
5.41
5.29
5.37
5.49
5.19
5.27
5.43
8.52
8.76
8.86
9.57
9.80
9.91
7.47
7.64
7.76r
5.84
5.85
5.98
5.57
5.58
5.82
5.19
5.31
5.33
5.18
5.26
5.44
5.20
5.37
5.47
5.08
5.13
n.a.
5.13
5.22
n.a.
5.30
5.39
n.a.
5.18
5.21
5.44
9.57
10.21
10.45
10.80
11.02
11.10
11.34
11.18
10.89
11.65
11.89
12.24
12.40
12.44
12.48
12.39
8.43
9.27
9.64
10.13
10.51
10.62
10.97
10.79
6.27
6.67
6.86
7.06
7.22
7.30
7.29
7.27
5.93
6.33
6.49
6.80
7.01
7.17
7.28
7.33
5.77
6.35
6.62
6.92
7.28
7.45
7.56
7.62
5.72
6.28
6.56
6.83
7.24
7.43
7.61
7.70
5.79
6.35
6.65
6.93
7.28
7.43
7.55
7.60
5.57
6.14
6.43
6.72
7.13
7.31
7.50
7.59
5.73
6.30
6.59
6.88
7.33
7.53
7.71
7.81
5.82
6.37
6.66
6.92
7.35
7.52
7.71
7.80
5.74
6.30
6.57
6.80
7.17
7.39
7.59
7.68
10.84
11.99
10.75
7.86
7.72
8.08
8.04
8.03
7.97
8.16
8.14
7.96
8.80
10.17
9.51
9.61
10.38
10.10
8.60
9.58
9.11
7.24
7.95
7.51
7.11
7.81
7.21
6.91
7.59
7.11
6.44
7.23
7.08
6.85
7.45
7.19
6.50
7.25
7.06
6.45
7.40
7.08
6.30
7.10
7.11
6.10
6.95
6.94
12.78
12.04
12.42
13.10
13.55
13.49
12.71
13.31
13.74
14.19
12.05
11.37
11.82
12.28
12.72
9.52
8.88
9.28
9.76
10.16
9.44
8.72
9.22
9.64
10.18
9.55
8.89
9.36
9.73
10.20
9.54
8.86
9.33
9.72
10.24
9.56
8.90
9.36
9.74
10.23
9.54
8.86
9.33
9.74
10.24
9.56
8.88
9.35
9.75
10.25
9.56
8.89
9.35
9.73
10.26
9.49
8.80
9.30
9.65
10.19
12.73
13.81
12.06
9.57
9.51
9.56
9.48
9.50
9.51
9.52
9.49
9.32
11.02
4.40
11.59
4.64
10.49
4.25
8.68
3.41
8.42
3.36
8.10
3.43
8.17
3.49
8.18
3.53
8.15
3.49
8.23
3.47
8.20
3.50
8.09
3.44
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
U.S. Treasury notes and bonds 11
Constant maturities 12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite 13
Over 10 years (long-term)
State and local notes and bonds
Moody's series 14
Aaa
Baa
Bond Buyer series 15
Corporate bonds
Seasoned issues 16
All industries
Aaa
Aa
A
Baa
A-rated, recently-offered utility
bonds 17
MEMO: Dividend/price ratio 18
39
Preferred stocks
Common stocks
40
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 150—
179 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. Averages (to maturity or call) for all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower" bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample 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
1986
Indicator
1983
1984
1985
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3 Transportation
Utility
4
5
Finance
6 Standard & Poor's Corporation (1941-43 = 10)1 . . .
7 American Stock Exchange 2
(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
108.09
123.79
104.11
56.75
114.21
186.84
126.43
144.03
124.18
65.18
142.13
219.37
133.97
152.75
128.66
68.06
153.94
232.33
137.25
157.35
125.92
69.35
154.83
237.97
137.37
158.59
122.21
68.65
151.28
238.46
140.82
163.15
120.65
70.69
151.73
245.30
138.32
158.06
112.03
74.20
150.23
240.18
140.91
160.10
111.24
77.84
152.90
245.00
137.06
156.52
114.06
74.56
145.56
238.27
136.74
156.56
120.04
73.38
143.89
237.36
216.48
207.96
229.10
246.09
264.91
270.59
274.22
281.18
269.93
268.55
264.30
257.82
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
85,418
8,215
91,084 109.191
6,107
8,355
152,590 160,755 146,330 127,624 126,151
14,057 15,902 13,503 11,870 12,795
137,709
10,320
128,661
9,885
150,831
10,853
131,155
8,930
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
23,000
22,470
28,390
27,450
29,090
30,760
32,370
32,480
33,170
34,550
34,580
36,310
Free credit balances at brokers4
11 Margin-account 5
12 Cash-account
8,430
1,755
10,215
2,715
12,840
2,545
12,355
2,715
13,920
3,065
14,340
2,405
12,970
2,585
13,570
2,570
14,600
3,035
14,210
3,395
14,060
3,805
14,445
n a.
n a
F
I
4
1
Margin-account debt at brokers (percentage distribution, end of period) 6
13 Total
14
15
16
17
18
19
By equity class (in percent)1
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
22.0
22.0
16.0
9.0
6.0
6.0
18.0
18.0
16.0
9.0
5.0
6.0
34.0
20.0
19.0
11.0
8.0
8.0
28.0
19.0
21.0
13.0
9.0
10.0
29.0
19.0
22.0
13.0
8.0
9.0
29.0
20.0
20.0
13.0
9.0
9.0
30.0
19.0
22.0
12.0
8.0
9.0
31.0
20.0
20.0
13.0
8.0
8.0
n.a.
n.a.
Special miscellaneous-account balances at brokers (end of period) 6
20 Total balances (millions of dollars) 8
Distribution by equity status
21 Net credit status
Debt status, equity of
22 60 percent or more
23
Less than 60 percent
58,329
75,840
99,310 104,228 103,450 105,790 109,620 112,401
(percent)
63.0
59.0
58.0
60.0
61.0
59.0
58.0
59.0
28.0
9.0
29.0
31.0
32.0
8.0
31.0
8.0
33.0
8.0
33.0
9.0
32.0
9.0
11.0
11.0
!
F
I
1
n. a.
n. a.
n a.
n.a.
Margin requirements (percent of market value and effective date) 9
24 Margin stocks
25 Convertible bonds
26 Short sales
Mar. 11, 1968
June 8. 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. 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. New series beginning June 1984.
6. In July 1986, the New York Stock Exchange stopped reporting certain data
items that were previously obtained in a monthly survey of a sample of brokers
and dealers. Data items that are no longer reported include distributions of margin
debt by equity status of the account and special miscellaneous-account
balances.
7. Each customer's equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
8. 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.
9. 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 1987
S E L E C T E D F I N A N C I A L INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1986
1985
Account
1983
1984
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Savings and loan associations
1 Assets
773,417
903,488
948,781
938,467
943,029
947,302
954,129
962,509
953,580
957,294
964,378
954,960
2 Mortgages
494,789
555,277
4 Cash and investment securities1 .
5 Other
104,274
174,354
124,801
223,396
585,462
97,303
126,712
238,833
578,472
96,891
123,415
236,850
576,608
98,482
127,028
239,394
574,732
99,332
131,464
241,104
575,288'
102,419
132,347
246,484
575,097'
107,311
134,870
252,522
565,148'
112,148
131,000
257,372
565,376'
112,054
132,769
259,089
566,506'
112,594
138,876
258,968
557,429'
112,720
139,861
256,688
6 Liabilities and net worth
773,417
903,488
948,781
938,467
943,029
947,302
954,129
962,509
953,580
957,294
964,378
954,960
752,056
133,407
70,464
62,943
20,078
750,299
139,574
73,815
65,759
22,078
751,138
144,179
73,520
70,659
24,803
744,018
147,166
73,555
73,611
20,947
747,015
145,691
75,059
70,632
22,899
749,086
147,658
75,594
72,064
24,788
743,635
151,899
80,409
71,490
16,181
7 Savings capital
8 Borrowed money
9
FHLBB
10 Other
11 Other
12 Net worth 2
634,455
92,127
52,626
39,501
15,968
725,045
125,666
64,207
61,459
17,944
750,071
138,798
73,888
64,910
19,045
745,218
131,521
71,488
60,033
21,024
747,016
131,671
71,214
60,457
23,125
30,867
34,833
41,064
40,704
41,227
41,760
42,178
42,388
41,450
41,689
42,846
43,245
54,113
61,305
56,051
51,130
52,542'
54,366
55,818'
57,997'
57,183'
55,687'
53,164'
51,531'
n a.
MEMO
13 Mortgage loan commitments
outstanding 3
FSLIC-insured federal savings banks
64,969
98,559
131,868
142,136
146,508
152,823
155,684
164,129
180,134
183,239
186,693
196,173
15 Mortgages
16 Mortgage-backed securities....
17 Other
38,698
7,172
6,595
57,429
9,949
10,971
72,355
15,676
11,723
78,984
16,620
13,274
81,641
16,367
13,759
85,028
17,851
13,923
86,599
18,661
14,590
89,108
19,829
15,083
99,599
21,649
16,816
101,206
23,330
17,714
102,422
24,187
17,794
107,335
24,447
18,326
18 Liabilities and net worth
64,969
98,559
131,868
142,136
146,508
152,823
155,684
164,129
180,134
183,239
186,693
196,173
19
70
71
77
73
24
53,227
7,477
4,640
2,837
1,157
3,108
79,572
12,798
7,515
5,283
1,903
4,286
103,462
19,323
10,510
8,813
2,732
6,351
111,879
20,419
11,151
9,268
2,983
6,855
114,743
21,254
11,283
9,971
3,397
7,114
119,434
22,747
12,064
10,683
3,291
7,349
121,133
23,196
12,476
10,720
3,755
7,599
126,123
25,686
12,830
12,856
4,338
7,982
138,168
28,502
15,301
13,201
4,279
9,186
140,610
28,697
15,866
12,831
4,504
9,427
142,805
29,387
16,157
13,230
4,851
9,650
149,086
32,231
16,845
15,386
4,675
10,180
2,151
3,234
5,355
6,707
7,718
8,330
8,287
8,762
9,343
10,134
9,378
10,113
14 Assets
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
n a.
MEMO
25 Mortgage loan commitments
outstanding 3
Savings banks
193,535
203,898
216,776
216,673
218,119
221,256
222,542
226,495
223,367' 224,569
227,011
228,854
97,356
19,129
102,895
24,954
110,371
30,876
108,973
31,752
109,702
32,501
110,271
34,873
11,813
34,591
112,417
35,500
110,958' 111,971
36,692' 36,421
113,265
37,350
114,188
37,298
15,360
18,205
2,177
25,375
6,263
9,670
14,643
19,215
2,077
23,747
4,954
11,413
13,111
19,481
2,323
21,199
6,225
13,113
12,568
21,372
2,298
20,828
5,645
13,237
12,474
21,525
2,297
20,707
5,646
13,267
12,313
21,593
2,306
20,403
5,845
13,652
12,013
21,885
2,372
20,439
5,570
13,859
13,210
22,546
2,343
20,260
6,225
13,994
12,297
22,954
2,309
20,862
4,651
13,104
12,043
21,161
2,400
20,602
5,018
13,172
12,357
23,216
2,407
20,902
4,811
13,675
35 Liabilities
193,535
203,898
216,776
216,673
218,119
221,256
222,542
226,495
223,367' 224,569
227,011
228,854
36 Deposits
37
Regular 4
38
Ordinary savings
39
Time
40
Other
41 Other liabilities
42 General reserve accounts
172,665
170,135
38,554
95,129
2,530
10,154
10,368
180,616
177,418
33,739
104,732
3,198
12,504
10,510
185,972
181,921
33,018
103,311
4,051
17,414
12,823
186,321
182,399
32,365
104,436
3,922
17,086
12,925
186,777
182,890
32,693
104,588
3,887
17,793
13,211
188,960
184,704
33,021
105,562
4,256
18,412
13,548
189,025
184,580
33,057
105,550
4,445
19,074
14,114
190,310
185,716
33,577
105,146
4,594
21,384
14,519
189,109' 188,615
183,970^ 183,433
34,008' 34,166
103,083' 102,374
5,139'
5,182
19,226' 20,641
14,731' 15,084
189,937
184,764
34,530
102,668
5,173
21,360
15,427
190,210
185,002
35,227
102,191
5,208
21,947
16,319
26 Assets
77
78
79
30
31
3?
33
34
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed securities...
State and local government...
Corporate and other
Cash
Other assets
12,115'
22,413'
2,281'
2,036'
5,301'
13,244'
n.a.
Financial Markets
All
1.37—Continued
1985
Account
1983
1986
1984
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Credit unions 5
43 Total assets/liabilities and capital .
44
45
Federal
State
46 Loans outstanding
47
Federal
48
State
49 Savings
50
Federal
51
State
81,961
93,036
118,010
118,933
122,623
126,653
128,229
132,415
134,703
137,901
139,233
140,496
54,482
27,479
63.205
29,831
77,861
40,149
78,619
40,314
80,024
42,599
82,275
44,378
83,543
44,686
86,289
46,126
87,579
47,124
89,539
48,362
90,367
48,866
91,981
48,515
50,083
32,930
17,153
74,739
49,889
24,850
62,561
42,337
20,224
84,348
57,539
26,809
73,513
47,933
25,580
105,963
70,926
35,037
73,513
48,055
25,458
107,238
72,166
35,072
74,207
48,059
26,148
110,541
73,227
37,314
75,300
48,633
26,667
114,579
75,698
38,881
76,385
49,756
26,629
116,703
77,112
39,591
76,774
49,950
26,824
120,331
79,479
40,852
77,847
50,613
27,234
122,952
80,975
41,977
79,647
51,331
28,316
125,331
82,596
42,735
80,656
52,007
28,649
126,268
83,132
43,136
81,820
53,042
28,778
128,125
84,607
43,518
n a.
n.a.
n.a.
Life insurance companies
52 Assets
53
54
55
56
57
58
59
60
61
67
63
Securities
Government
United States 6
State and local
Foreign 7
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
654,948 722,979
50,752 63,899
28,636 42,204
9,986
8.713
12,982
12,130
322,854 359,333
257,986 295,998
64,868 63,335
150,999 156.699
25,767
22,234
54,063 54,505
54,046 63,776
825,901' 831,716
r
75,230
75,937
51,70C
52,243
9,708'
9,869
13,822'
13,825
423,712' 428,979
346,216' 351,402
77,496' 77,577
171,797' 172,324
28,822'
29,035
54,369'
54,264
71,971'
57,090
839,856
848,535
855,605
863,610
872,359
877,919
887,255
76,761
53,264
9,588
13,909
435,758
354,911
80,847
172,997
29,356
54,267
57,351
77,965
54,289
9,674
14,002
440,963
357,196
83,767
174,823
29,804
54,273
57,753
78,494
54,705
9,869
13,920
445,573
361,306
84,267
175,951
30,059
54,272
57,492
79,051
55,120
9,930
14,001
450,279
364,122
86,157
177,554
30,025
54,351
57,802
78,284
54,197
10,114
13,973
455,119
367,966
87,153
180,041
30,350
57,342
58,290
78,722
54,321
10,350
14,051
455,013
369,704
85,309
182,542
31,151
54,249
58,792
79,188
54,487
10,472
14,229
463,135
374,670
88,465
183,943
31,844
54,247
57,905
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. Excludes checking, club, and school accounts.
5. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE. Savings and loan associations:
Estimates by the F H L B B for all
associations in the United States based on annual benchmarks for non-FSLICinsured associations and the experience of FSLIC-insured associations.
FSLIC-insured federal savings banks: Estimates by the F H L B B for federal
savings banks insured by the FSLIC and based on monthly reports of federally
insured institutions.
Savings banks: Estimates by the National Council of Savings Institutions for all
savings banks in the United States and for FDIC-insured savings banks that have
converted to federal savings banks.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in "other assets."
A28
1.38
DomesticNonfinancialStatistics • January 1987
F E D E R A L F I S C A L A N D F I N A N C I N G OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1984
Fiscal
year
1985
Fiscal
year
1986
1986
May
July
Aug.
77,024
58,400
18,624
78,034
60,982
17,052
-1,011
-2,583
1,572
62,974
47,571
15,402
85,203
69,604
15,599
-22,229
-22,033
-196
56,523
41,404
15,119
84,434
68,112
16,322
-27,911
-26,708
-1,203
June
Sept.
Oct.
1
U.S. budget
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
On-budget
5
Off-budget
6
7 Surplus, or deficit ( - ) , total
On-budget
8
Off-budget
9
Source of financing (total)
Borrowing from the public
Cash and monetary assets (decrease, or
increase ( - ) ) 2
12 Other 3
10
11
666,457
n.a.
n.a.
851,7%
n.a.
n.a.
-185,339
n.a.
n.a.
734,057
547,886
186,170
945,987
769,180
176,807
-211,931
-221,294
9,363
170,817
197,269
235,745
17,960
18,500
14,980
20,278
22,188
5,936
5,636
8,885
10,673
3,989
-18,044
2,997
22,774
-1,338
-13,065
-4,424
3,972
3,277
10,298
-2,665
-21,313
2,862
18,131
1,188
22,345
3,791
18,553
17,060
4,174
12,886
31,384
7,514
23,870
12,808
3,083
9,725
24,641
3,143
21,498
20,810
3,983
16,827
10,428
1,106
9,322
31,384
7,514
23,870
13,616
2,491
11,126
769,091
568,862
200,228
989,789
806,291
183,498
-220,698
-237,428
16,371
46,246
30,004
16,242
85,642
69,611
16,031
-39,396
-39,607
211
78,013
59,978
18,035
81,750
65,614
16,136
-3,737
-5,636
1,898
59,012
43,865
15,147
84,267
68,780
15,486
-25,255
-24,915
-340
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes U.S. Treasury operating cash accounts; SDRs; reserve position on
the U.S. quota in the IMF; loans to International Monetary Fund; and other cash
and monetary assets.
3. 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," and the "Daily Treasury Statement."
Federal Finance
1.39
A29
U . S . B U D G E T RECEIPTS A N D O U T L A Y S
Millions of dollars
Calendar year
Source or type
Fiscal
year
1985
Fiscal
year
1986
1985
1984
H2
HI
1986
1986
H2
HI
Aug.
Sept.
Oct.
RECEIPTS
1 All sources
? Individual income taxes, net
3 Withheld
Presidential Election Campaign Fund . . .
4
Nonwithheld
6
Refunds
Corporation income taxes
7 Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions 1
Self-employment taxes and
11
contributions 2
Unemployment insurance
12
3
13 Other net receipts
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
734,057
769,091
341,392
380,618
364,790
394,345
56,523
78,013
59,012
334,560
298,941
35
101,328
65,743
348,959
314,803
36
105,994
71,873
157,229
145,210
5
19,403
7,387
166,783
149,288
29
76,155
58,684
169,987
155,725
6
22,295
8,038
169,444
153,919
31
78,981
63,488
25,764
24,504
1
2,846
1,587
37,125
24,707
1
14,199
1,782
31,123
29,556
0
3,122
1,554
77,413
16,082
80,442
17,298
35,190
6,847
42,193
8,370
36,528
7,751
41,946
9,557
1,997
922
13,162
1,713
3,219
2,679
265,163
283,901
118,690
144,598
128,017
156,714
23,738
23,507
21,179
19,529
22,819
19,583
234,646
255,062
105,624
126,038
116,276
139,706
10,468
25,758
4,759
11,840
24,098
4,741
1,086
10,706
2,360
9,482
16,213
2,350
985
9,281
2,458
10,581
14,674
2,333
0
3,842
366
1,379
314
374
0
1,135
459
35,992
12,079
6,422
18,510
32,919
13,323
6,958
19,887
18,961
6,329
3,029
8,812
17,259
5,807
3,204
9,144
18,470
6,354
3,323
9,861
15,944
6,369
3,487
10,002
2,340
1,272
608
1,725
2,653
1,236
599
1,445
2,708
1,281
647
1,534
OUTLAYS
946,223
989,789
446,944
463,842
487,188
486,037
84,434
81,750
84,267
19
70
71
7?
73
24
National defense
International affairs
General science, space, and technology . . .
Energy
Natural resources and environment
Agriculture
252,748
16,176
8,627
5,685
13,357
25,565
273,369
14,471
9,017
4,792
13,508
31,169
118,286
8,550
4,473
1,423
7,370
8,524
124,186
6,675
4,230
680
5,892
11,705
134,675
8,367
4,727
3,305
7,553
15,412
135,367
5,384
12,519
2,484
6,245
14,482
22,448
999
694
671
1,142
844
23,964
2,603
876
228
1,227
2,801
23,177
1,259
794
405
1,200
3,573
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . . . .
Education, training, employment, social
services
4,229
25,838
7,680
4,258
28,058
7,510
2,663
13,673
4,836
-260
11,440
3,408
644
15,360
3,901
860
12,658
3,169
175
2,310
582
1,884
2,969
516
593
2,107
735
18 All types
29,342
29,662
13,737
14,149
14,481
14,712
2,630
2,507
2,332
79 Health
30 Social security and medicare
31 Income security
33,542
254,446
128,200
35,936
268,925
120,686
15,692
119,613
61,558
16,945
128,351
65,246
17,237
129,037
59,457
17,872
135,214
60,786
3,241
22,809
10,740
2,997
22,756
8,574
4,266
23,700
9,367
3?
33
34
35
36
37
26,352
6,277
5,228
6,353
129,436
-32,759
26,614
6,555
6,7%
6,430
135,284
-33,244
13,317
2,992
2,552
3,458
61,293
-17,061
11,956
3,016
2,857
2,659
65,143
-14,436
14,527
3,212
3,634
3,391
67,448
-17,953
12,193
3,352
3,566
2,179
68,054
-17,193
3,373
516
598
49
12,652
-2,079
829
513
525
1,139
8,640
-3,796
3,491
539
209
284
9,951
-3,719
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest'
Undistributed offsetting receipts 6
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. Net interest function includes interest received by trust funds.
6. 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 1987.
A30
1.40
DomesticNonfinancialStatistics • January 1987
F E D E R A L D E B T SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1984
1985
1986
Item
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1
Federal debt outstanding
1,517.2
1,576.7
1,667.4
1,715.1
1,779.0
1,827.5
1,950.3
1,991.1
2,063.6
2
3
4
Public debt securities
Held by public
Held by agencies
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
1,823.1
1,506.6
316.5
1,945.9
1,597.1
348.9
1,986.8
1,634.3
352.6
2,059.3
1,684.9
374.4
5
6
7
Agency securities
Held by public
Held by agencies
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
4.4
3.3
1.1
4.4
3.3
1.1
4.3
3.2
1.1
4.3
3.2
1.1
8
Debt subject to statutory limit
1,513.4
1,573.0
1,663.7
1,711.4
1,775.3
1,823.8
1,932.4
1,973.3
2,060.0
9
10
Public debt securities
Other debt 1
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
1,822.5
1.3
1,931.1
1.3
1,972.0
1.3
2,058.7
1.3
11
MEMO: Statutory debt limit
1,520.0
1,573.0
1,823.8
1,823.8
1,823.8
1,823.8
2,078.7
2,078.7
2,078.7
1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.
1.41
GROSS P U B L I C D E B T OF U.S. T R E A S U R Y
NOTE. Data from Treasury Bulletin and Daily Treasury Statement
Treasury Department),
(U.S.
Types and Ownership
Billions of dollars, end of period
1985
Type and holder
1981
1982
1983
1986
1984
Q3
Q4
QL
Q2
Total gross public debt
1,028.7
1,197.1
1,410.7
1,663.0
1,823.1
1,945.9
1,986.8
2,059.3
2
3
4
5
6
7
8
9
10
11
12
13
By type
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 2
Government
Public
Savings bonds and notes
Government account series 3
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
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
.0
73.1
286.2
1,821.0
1,360.2
384.2
776.4
199.5
460.8
62.8
6.6
6.6
.0
77.0
313.9
1,943.4
1,437.7
399.9
812.5
211.1
505.7
87.5
7.5
7.5
.0
78.1
332.2
1,984.2
1,472.8
393.2
842.5
223.0
511.4
88.5
6.7
6.7
.0
79.8
336.0
2,056.7
1,498.2
396.9
869.3
232.3
558.5
98.2
5.3
5.3
.0
82.3
372.3
14
Non-interest-bearing debt
1.4
1.6
9.8
2.3
2.1
2.5
2.6
2.6
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
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
179.4
316.5
169.7
1,338.2
196.9
22.7
88.6
59.0
348.9
181.3
1,417.2
192.2
25.1
93.2
59.0
352.6
184.8
1,473.1
195.1
29.9
95.8
59.6
374.4
183.8
1,502.7
197.2
22.8
n.a.
n.a.
n.a.
n.a.
68.1
42.7
136.6
163.0
68.3
48.2
149.5
217.0
71.5
61.9
166.3
259.8
74.5
69.3
192.9
360.6
78.2
73.2
209.8
79.8
75.0
214.6
81.4
76.1
225.4
83.8
73.4
237.9
n.a.
n.a.
n.a.
n.a.
1
4
15
16
17
18
19
20
21
22
23
24
7.5
26
By holder
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
Individuals
Savings bonds
Other securities
Foreign and international 5
Other miscellaneous investors 6
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.
59.8
5. Consists of investments offoreign 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 D E A L E R S
Par value; averages of daily figures, in millions of dollars
Transactions 1
1986
Item
1983
1984
A31
1986 week ending Wednesday
1985
Aug/
Sept.
Oct.
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
1
Immediate delivery 2
U.S. government securities
42,135
52,778
75,331
101,864
102,015
93,411
100,295
99,451
100,394
74,151
85,841
100,711
2
3
4
5
6
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
22,393
708
8,758
5,279
4,997
26,035
1,305
11,733
7,606
6,099
32,900
1,811
18,361
12,703
9,556
36,838
2,249
30,255
21,269
11,252
35,526
2,263
29,743
21,718
12,766
32,633
2,221
25,485
21,286
11,786
33,413
2,663
31,802
19,448
12,969
33,793
2,961
31,441
18,139
13,118
39,287
2,375
26,937
21,557
10,238
22,255
1,878
23,597
16,947
9,474
30,593
1,536
24,950
17,526
11,236
33,796
2,411
25,699
25,946
12,861
'/
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 3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures transactions 4
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions 5
U.S. government securities
Federal agency securities
2,257
2,919
3,336
4,570
4,232
3,905
3,791
4,681
4,567
3,036
2,747
3,637
21,045
18,833
5,576
4,333
2,642
8,036
25,580
24,278
7,846
4,947
3,243
10,018
36,222
35,773
11,640
4,016
3,242
12,717
53,216
44,078
16,963
4,381
3,215
17,093
54,585
43,199
17,693
4,724
3,452
16,058
49,366
40,140
18,302
4,351
3,348
17,078
55,012
41,493
15,786
4,295
3,591
15,277
51,605
43,165
14,039
4,300
3,262
16,547
52,595
43,232
14,226
5,123
4,292
15,880
38,372
32,743
14,200
3,698
2,623
16,738
45,456
37,638
23,727
3,982
3,549
17,401
53,876
43,198
20,222
4,141
2,534
17,014
6,655
2,501
265
6,947
4,503
262
5,561
6,069
240
2,871
5,939
12
3,056
7,784
4
1,754
5,416
0
2,992
8,974
3
2,655
7,679
4
1,387
4,859
1,194
5,100
0
2,728
5,307
*
1,361
5,430
2
1,493
1,646
1,364
2,843
1,283
3,857
2,907
7,785
1,838
8,684
1,734
8,450
3,356
8,778
1,092
8,040
812
8,089
875
7,276
3,096
10,917
1,968
7,581
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers.
Averages for transactions are based on the number of trading days in the period.
The figures exclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, purchases or sales of
securities under repurchase agreement, reverse repurchase (resale), or similar
contracts.
2. Data for immediate transactions do not include forward transactions.
3. Includes, among others, all other dealers and brokers in commodities and
*
securities, nondealer departments of commercial banks, foreign banking agencies,
and the Federal Reserve System.
4. Futures contracts are standardized agreements arranged on an organized
exchange in which parties commit to purchase or sell securities for delivery at a
future date.
5. Forward transactions are agreements arranged in the over-the-counter
market in which securities are purchased (sold) for delivery after 5 business days
from the date of the transaction for government securities (Treasury bills, notes,
and bonds) or after 30 days for mortgage-backed agency issues.
NOTE. Data for the period May 1 to Sept. 30, 1986, are partially estimated.
A32
1.43
DomesticNonfinancialStatistics • January 1987
U . S . G O V E R N M E N T SECURITIES D E A L E R S
Averages of daily figures, in millions of dollars
Positions and Financing 1
1986
Item
1983
1984
1986 week ending Wednesday
1985
Aug/
Sept/
Oct.
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
Positions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Net immediate 2
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
14,082
10,800
921
1,912
-78
528
7,313
5,838
3,332
3,159
5,429
5,500
63
2,159
-1,119
-1,174
15,294
7,369
3,874
3,788
7,391
10,075
1,050
5,154
-6,202
-2,686
22,860
9,192
4,586
5,570
18,616
12,812
3,515
11,627
-7,797
-1,541
26,857
9,960
5,172
7,469
11,302
8,676
2,847
11,917
-9,181
-2,957
30,165
11,289
5,665
8,991
8,313
11,070
2,704
9,682
-11,127
-4,017
29,073
9,511
5,897
8,302
16,823
12,790
2,719
16,324
-10,552
-4,459
29,597
10,998
5,393
8,746
10,711
11,901
3,338
10,344
-10,819
-4,053
28,268
10,101
6,149
9,219
7,964
10,726
3,119
9,377
-11,371
-3,887
29,064
10,164
7,111
8,438
2,602
8,381
2,659
7,164
-11,253
-4,348
31,224
8,882
5,852
7,973
10,038
11,633
2,150
10,946
-11,098
-3,593
28,155
8,944
5,074
7,250
-4,125
-1,033
171
-4,525
1,794
233
-7,322
4,465
-722
-16,246
2,427
-60
-15,996
4,234
-64
-15,845
3,424
-70
-15,099
4,809
-68
-17,574
3,842
-67
-18,105
3,409
-67
-14,733
3,561
-68
-13,900
3,132
-75
-1,936
-3,561
-1,643
-9,205
-911
-9,420
-3,503
-9,906
-3,769
-10,224
-128
-11,329
-3,565
-9,799
-640
-9,215
-63
-11,999
-1%
-13,785
410
-11,378
Financing 3
Reverse repurchase agreements 4
Overnight and continuing
Term agreements
Repurchase agreements 5
18 Overnight and continuing
19 Term agreements
16
17
29,099
52,493
44,078
68,357
68,035
80,509
98,805
106,640
113,057
106,335
n.a.
n.a.
116,444
106,464
114,643
111,545
122,784
107,286
120,516
111,172
115,125
115,093
57,946
44,410
75,717
57,047
101,410
77,748
138,823
103,532
149,027
104,455
n.a.
n.a.
153,787
104,984
151,714
111,097
159,950
102,440
152,871
110,249
144,895
114,034
1. Data for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. government
securities dealers on its published list of primary dealers.
Data for positions are averages of daily figures, in terms of par value, based on
the number of trading days in the period. Positions are net amounts and are shown
on a commitment basis. Data for financing are in terms of actual amounts
borrowed or lent and are based on Wednesday figures.
2. Immediate positions are net amounts (in terms of par values) of securities
owned by nonbank dealer firms and dealer departments of commercial banks on a
commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase (RPs). The maturities of some
repurchase agreements are sufficiently long, however, to suggest that the securities involved are not available for trading purposes. Immediate positions include
reverses to maturity, which are securities that were sold after having been
obtained under reverse repurchase agreements that mature on the same day as the
securities. Data for immediate positions do not include forward positions.
3. Figures cover financing involving U.S. government and federal agency
securities, negotiable CDs, bankers acceptances, and commercial paper.
4. Includes all reverse repurchase agreements, including those that have been
arranged to make delivery on short sales and those for which the securities
obtained have been used as collateral on borrowings, that is, matched agreements.
5. Includes both repurchase agreements undertaken to finance positions and
"matched book" repurchase agreements.
NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially
estimated.
Federal Finance
1.44
F E D E R A L A N D F E D E R A L L Y S P O N S O R E D CREDIT A G E N C I E S
Millions of dollars, end of period
A33
Debt Outstanding
1986
1983
Agency
1984
1985
Apr.
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department 1
Export-Import Bank 2,3
4
5
Federal Housing Administration 4
6
Government National Mortgage Association
participation certificates 5
7
Postal Service 6
8
Tennessee Valley Authority
United States Railway Association 6
9
10 Federally sponsored agencies 7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks
15 Student Loan Marketing Association 8
MEMO
16 Federal Financing Bank debt
Lending to federal and federally
17
18
19
20
21
June
July
Aug.
Sept.
240,068
271,220
293,905
293,336
294,961
296,226
298,361
n.a.
n.a.
33,940
243
14,853
194
35,145
142
15,882
133
36,390
71
15,678
115
35,530
55
15,257
114
36,110
52
15,256
118
35,826
48
14,953
115
35,768
45
14,953
115
36,132
40
14,953
115
36,473
37
14,274
117
2,165
1,404
14,970
111
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
1,940
15,925
74
2,165
1,940
16,505
74
2,165
1,854
16,617
74
2,165
1,854
16,562
74
2,165
1,854
16,931
74
2,165
3,104
16,702
74
206,128
48,930
6,793
74,594
72,816
3,402
236,075
65,085
10,270
83,720
71,193
5,745
257,515
74,447
11,926
93,896
68,851
8,395
257,806
76,527
13,492
92,401
65,188
10,198
258,851
78,718
12,475
92,629
64,629
10,400
260,400
81,558
12,276
92,562
63,585
10,419
262,593
83,081
12,818
93,417
62,857
10,420
n.a.
85,997
n.a.
92,286
61,575
10,420
n.a.
87,133
n.a.
91,629
63,073
10,555
135,791
145,217
153,373
153,508
155,076
155,222
155,526
156,132
156,871
14,789
1,154
5,000
13,245
111
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
15,250
1,690
5,000
14,250
74
15,250
1,690
5,000
14,830
74
14,947
1,604
5,000
14,942
74
14,947
1,604
5,000
14,937
74
14,947
1,604
5,000
15,306
74
14,268
2,854
4,978
15,077
74
55,266
19,766
26,460
58,971
20,693
29,853
64,234
20,654
31,429
63,829
21,061
32,354
64,544
21,154
32,534
64,924
21,255
32,476
65,174
21,321
32,469
65,274
21,398
32,529
65,374
21,460
32,786
sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
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.
May
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 1987
NEW SECURITY ISSUES Tax-Exempt State and Local Governments
Millions of dollars
1986
Type of issue or issuer,
or use
1983
1984
1985
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
1 All issues, new and refunding 1
86,421
106,641
214,189
3,300
8,008
12,578
13,215
12,611
19,833
25,965
4,532
Type of issue
2 General obligation
3 Revenue
21,566
64,855
26,485
80,156
52,622
161,567
916
2,384
2,720
5,288
5,459
7,120
7,115
6,100
6,326
6,285
6,531
13,302
5,931
20,034
1,267
3,265
Type of issuer
4 State
5 Special district and statutory authority 2
6 Municipalities, counties, townships
7,140
51,297
27,984
9,129
63,550
33,962
13,004
134,363
66,822
287
1,691
1,322
1,088
4,383
2,537
1,956
7,350
3,273
2,825
6,427
3,962
1,705
6,351
4,554
2,879
10,589
6,365
2,121
15,714
8,125
9
3,275
1,248
7 Issues for new capital, total
72,441
94,050
156,050
2,022
3,314
6,938
7,155
8,178
13,165
17,810
2,558
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
8,099
4,387
13,588
26,910
7,821
11,637
7,553
7,552
17,844
29,928
15,415
15,758
16.658
12,070
26,852
63,181
12,892
24,398
441
380
1,352
239
134
729
624
795
4,082
337
37
2,132
1,706
815
4,554
579
313
4,610
1,827
273
3,450
1,424
264
5,978
1,694
947
1,583
1,518
255
6,614
2,800
3,164
4,425
1,186
975
7,281
2,926
1,460
6,292
2,554
489
12,245
558
827
1,365
812
138
832
8
9
10
11
12
13
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning April 1986.
SOURCES. Securities Data Company beginning April 1986. Public Securities
Association for earlier data. This new data source began with the November
BULLETIN.
1.46
NEW SECURITY ISSUES Corporations
Millions of dollars
Type of issue or issuer,
or use
1 All issues'
1986
1983
1984
1985
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
119,949
132,531
201,269
23,931
30,444
33,489
19,564
25,776
21,093'
24,245'
15,967
2 Bonds2
68,370
109,903
165,754
19,469
24,923
27,883
13,050
20,756
16,766'
18,481'
12,739
Type of offering
3 Public
4 Private placement
47,244
21,126
73,579
36,324
119,559
46,195
19,469
n.a.
24,923
n.a.
27,883
n.a.
13,050
n.a.
20,756
n.a.
16,766'
n.a.
18,481'
n.a.
12,739
n.a.
17,001
7,540
3,833
9,125
3,642
27,227
24,607
13,726
4,694
10,679
2,997
53,199
52,228
15,215
5,743
12,957
10,456
69,157
3,950
1,216
373
2,540
1,200
10,190
8,895
790
303
2,133
1,907
10,895
7,975
2,640
614
3,330
3,115
10,210
3,939
1,776
427
1,709
712
4,487
5,368
2,206
250
1,948
810
10,174
2,535
3,410
497
1,470
465
8,389'
4,536
1,045
550
2,098
1,615
8,638'
2,345
1,405
375
1,905
417
6,292
11 Stocks3
51,579
22,628
35,515
4,462
5,521
5,606
6,514
5,020
4,327
5,764'
3,228
Type
12 Preferred
13 Common
7,213
44,366
4,118
18,510
6,505
29,010
975
3,487
1,160
4,361
751
4,855
856
5,658
1,284
3,736
726
3,601
1,290
4,474'
402
2,826
14,135
13,112
2,729
5,001
1,822
14,780
4,054
6,277
589
1,624
419
9,665
5,700
9,149
1,544
1,966
978
16,178
1,269
434
302
153
282
2,022
851
607
355
357
0
3,351
1,434
910
158
165
27
2,912
1,827
953
372
346
74
2,942
1,132
421
154
406
140
2,767
746
917
179
305
107
2,073
982'
803
57
208
379
3,335'
227
1,005
28
174
0
1,794
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.
SOURCES. IDD Information Services, Inc., 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 I N V E S T M E N T COMPANIES
Millions of dollars
A35
Net Sales and Asset Position
1986
Item
1984
1985
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
INVESTMENT COMPANIES 1
1 Sales of own shares 2
2 Redemptions of own shares 3
3 Net sales
4
5
6
Assets 4
Cash position 5
Other
107,480
77,032
30,448
222,670
132,440
90,230
27,489
11,860
15,629
33,764
15,085
18,679
37,656
21,699
15,957
31,251
16,706
14,545
30,619
18,921
11,698
35,684
21,508
14,176
32,636
20,102
12,534
34,282
21,464
12,818
137,126
12,181
124,945
251,695
20,607
231,088
292,002
23,716
268,286
315,245
27,639
287,606
329,684
29,599
300,085
343,926
28,184
315,742
356,040
28,083
327,957
360,050
28,080
331,970
387,547
28,682
358,865
381,655
29,516
352,139
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
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1984
Account
1983
1984
1985
1986
1985
Q4
Q1
Q2
Q3
Q4
Q1
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
213.7
207.6
77.2
130.4
71.5
58.8
264.7
235.7
95.4
140.3
78.3
62.0
280.6
223.1
91.8
131.4
81.6
49.8
265.0
221.9
87.8
134.1
80.1
54.0
266.4
213.8
87.8
126.0
80.9
45.1
274.3
213.8
87.1
126.7
81.4
45.3
296.3
229.2
95.8
133.4
81.6
51.8
285.6
235.8
96.4
139.4
82.5
57.0
296.4
224.3
89.1
135.2
85.2
50.0
293.1
231.3
93.3
138.0
87.5
50.4
299.6
241.3
97.4
144.0
88.8
55.2
7 Inventory valuation
8 Capital consumption adjustment
-10.9
17.0
-5.5
34.5
-.6
58.1
-1.6
44.7
-.5
53.2
1.6
58.9
6.1
61.0
-9.4
59.2
16.5
55.6
10.6
51.3
8.0
50.2
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.49
DomesticNonfinancialStatistics • January 1987
N O N F I N A N C I A L CORPORATIONS
Assets and Liabilities
Billions of dollars, except for ratio
1985
Account
1980
1981
1982
1983
1986
1984
Q1
Q2
Q3
Q4
Ql
1,328.3
1,419.6
1,437.1
1,575.9
1,703.0
1,722.7
1,734.6
1,763.0
1,784.6
1,795.7
2
3
4
5
6
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
127.0
18.7
507.5
543.0
132.1
135.6
17.7
532.5
584.0
149.7
147.8
23.0
517.4
579.0
169.8
171.8
31.0
583.0
603.4
186.7
173.6
36.2
633.1
656.9
203.2
167.5
35.7
650.3
665.7
203.5
167.1
35.4
654.1
666.7
211.2
176.3
32.6
661.0
675.0
218.0
189.2
33.0
671.5
666.0
224.9
195.3
31.0
663.4
679.6
226.3
7
Current liabilities
890.6
971.3
986.0
1,059.6
1,163.6
1,174.1
1,182.9
1,211.9
1,233.6
1,222.3
8
9
Notes and accounts payable
Other
514.4
376.2
547.1
424.1
550.7
435.3
595.7
463.9
647.8
515.8
636.9
537.1
651.7
531.2
670.4
541.5
682.7
550.9
668.4
553.9
Net working capital
437.8
448.3
451.1
516.3
539.5
548.6
551.7
551.1
551.0
573.4
1.462
1.458
1.487
1.464
1.467
1.466
1.455
1.447
1.469
1 Current assets
10
11
MEMO: Current ratio
1
1.492
Statistics, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
SOURCE. Federal Trade Commission and Bureau of the Census.
1. Ratio of total current assets to total current liabilities.
NOTE. For a description of this series, see "Working Capital of Nonfinancial
C o r p o r a t i o n s " in t h e J u l y 1978 BULLETIN, p p . 5 3 3 - 3 7 .
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 N O N F A R M B U S I N E S S E X P E N D I T U R E S on N e w Plant and Equipment
•
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1985
Industry
1 Total nonfarm business
Manufacturing
7, 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
2
10 Commercial and other
1984
1985
Ql
Q2
Q3
Q4
Ql
Q2
Q31
Q41
354.44
387.13
379.59
373.56
387.86
389.23
397.88
377.94
375.92
380.52
383.99
66.24
72.58
73.27
80.21
68.23
75.78
70.29
76.64
74.34
79.91
72.99
81.48
75.47
82.79
68.01
76.02
68.33
73.35
66.30
76.43
70.28
77.32
16.86
15.88
11.29
15.81
16.56
15.89
15.25
12.99
11.22
10.80
10.16
6.79
3.56
6.17
7.08
4.79
6.15
6.60
5.88
5.87
6.42
4.23
6.04
7.38
3.71
6.35
7.79
5.17
5.85
6.74
6.07
6.34
6.22
6.58
5.42
6.77
5.77
5.74
7.09
5.40
6.25
6.31
5.75
6.08
37.03
10.44
134.75
36.11
12.71
150.93
33.60
12.62
159.72
36.49
11.95
145.68
36.00
12.61
150.99
35.58
12.86
151.62
36.38
13.41
155.42
34.21
12.82
155.67
33.81
12.74
158.18
33.61
12.46
162.18
32.78
12.46
162.84
ATrade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1986
19861
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 F I N A N C E COMPANIES
Billions of dollars, end of period
Assets and Liabilities
1985
Account
A37
1982
1983
1986
1984
Q1
Q2
Q4
Q3
Q2
Q1
Q3
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
78.1
101.4
20.2
199.7
87.4
113.4
22.5
223.4
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
120.8
152.8
30.4
304.0
125.5
159.7
31.5
316.7
134.7
160.3
32.4
327.5
146.7
152.7
33.8
333.2
Less:
5 Reserves for unearned income
6 Reserves for losses
31.9
3.5
33.0
4.0
36.5
4.4
36.6
4.9
38.6
4.8
41.0
4.9
40.9
5.0
41.3
5.1
41.8
5.2
43.6
5.5
7 Accounts receivable, net
8 All other
164.3
30.7
186.4
34.0
217.3
35.4
227.0
35.9
235.6
39.5
240.6
46.3
258.1
46.8
270.3
50.6
280.4
52.1
284.1
63.1
9 Total assets
195.0
220.4
252.7
262.9
275.2
286.9
304.9
321.0
332.5
347.2
18.3
51.1
18.7
59.7
21.3
72.5
19.8
79.1
18.5
82.6
18.2
93.6
21.0
96.9
20.4
102.0
22.9
106.4
25.3
110.6
12.7
64.4
21.2
27.4
13.9
68.1
30.1
29.8
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
17.2
93.0
39.6
37.1
18.5
100.0
41.4
38.8
20.9
101.8
40.4
40.2
21.6
105.3
43.2
41.3
195.0
220.4
252.7
262.9
275.2
286.9
304.9
321.0
332.5
347.2
1
2
3
4
LIABILITIES
10 Bank loans
11 Commercial paper
Debt
12 Other short-term
13 Long-term
14 All other liabilities
15 Capital, surplus, and undivided profits
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 F I N A N C E COMPANIES Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Changes in accounts
receivable
Extensions
Repayments
1986
1986
1986
Accounts
receivable
outstanding
Sept. 30,
1986'
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.
July
Aug.
Sept.
July
Aug.
Sept.
152,689
949
190
-6,552
27,277
28,014
26,662
26,328
27,824
33,214
18,048
19,979
390
-106
291
-91
1,290
-212
1,365
1,022
1,302
786
2,299
986
975
1,128
1,011
876
1,009
1,197
15,626
4,745
7,311
-1,097
211
-242
127
-44
33
-9,172
36
113
9,030
900
1,656
10,220
845
1,703
7,536
829
1,881
10,128
689
1,898
10,093
889
1,669
16,708
793
1,768
16,570
40,711
103
647
185
22
549
286
1,077
1,669
892
1,540
1,075
1,574
973
1,022
707
1,518
526
1,289
16,922
12,777
716
327
-307
-27
539
19
9,208
1,350
9,429
1,298
9,298
1,183
8,492
1,023
9,735
1,325
8,760
1,164
NOTE. These data also appear in the Board's G.20 (422) release. For address,
see inside front cover.
A38
1.53
DomesticNonfinancialStatistics • January 1987
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1986
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)
Yield (percent per annum)
7 FHLBB series 5
8 HUD series 4
92.8
69.5
77.1
26.7
2.40
12.20
96.8
73.7
78.7
27.8
2.64
11.87
104.1
77.4
77.1
26.9
2.53
11.12
114.2
83.9
75.9
25.9
2.34
9.87
114.7
83.0
74.7
25.8
2.19
9.84
122.1
88.0
74.9
26.6
2.40
9.74
115.7
83.4
73.9
26.2
2.35
9.89
117.9
84.8
74.5
26.5
2.40
9.84
124.(K
90.4'
75.2'
27.1'
2.49'
9.74'
127.2
93.6
75.6
28.1
2.70
9.58
12.66
13.43
12.37
13.80
11.58
12.28
10.27
9.99
10.22
10.32
10.15
10.38
10.30
10.28
10.26
9.88
10.17'
9.96
10.03
9.89
13.11
12.25
13.81
13.13
12.24
11.61
9.80
9.17
10.07
9.23
9.98
9.57
10.01
9.31
9.80
9.11
9.90
9.17
9.80
9.06
SECONDARY MARKETS
Yield (percent per annum)
9 FHA mortgages (HUD series) 5
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
74,847
37,393
37,454
83,339
35,148
48,191
94,574
34,244
60,331
98,746
33,246
65,500
98,096
32,558
65,538
97,295
31,241
66,054
97,255
30,766
66,489
96,675
28,451
68,224
97,717
26,658
71,059
98,402
25,435
72,967
Mortgage transactions (during period)
14 Purchases
15 Sales
17,554
3,528
16,721
978
21,510
1,301
1,631
1,978
3,000
3,343
3,800
4,649
3,784
n.a.
n.a.
n.a.
n.a.
n.a.
n a.
n a.
Mortgage
commitments1
16 Contracted (during period)
17 Outstanding (end of period)
18,607
5,461
21,007
6,384
20,155
3,402
3,774
6,942
3,538
8,444
3,049
7,862
3,270
7,706
3,840
7,671
4,248
7,252
2,375
5,740
5,9%
974
5,022
9,283
910
8,373
12,399
841
11,558
13,144
778
12,366
14,302
769
13,533
14,194
742
13,452
13,795
692
13,103
14,010
688
13,322
Mortgage transactions (during period)
21 Purchases
22 Sales
23,089
19,686
21,886
18,506
44,012
38,905
6,195
5,591
8,947
7,354
10,505
9,588
8,518
8,113 R
10,458
10,132
n.a.
n.a.
Mortgage
commitments9
23 Contracted (during period)
24 Outstanding (end of period)
32,852
16,964
32,603
13,318
48,989
16,613
9,869
10,612
10,338
7,863'
13,707
n.a.
n.a.
n.a.
FEDERAL H O M E LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)8
18 Total
19 FHA/VA
20
Conventional
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
n.a.
n.a.
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
A39
MORTGAGE D E B T O U T S T A N D I N G
Millions of dollars, end of period
1986
1985
Type of holder, and type of property
1983
1984
1985
Q3
Q4
Ql
Q2'
Q3
1 All holders
1,813,856
2,034,602
2,266,267'
2,200,561'
2,266,267'
2,315,038'
2,381,232
2,456,895
7 1- to 4-family
3 Multifamily
4 Commercial
5
1,189,822
160,805
350,389
112,840
1,318,888
185,414
418,300
112,000
1,466,117'
213,817'
480,718'
105,615'
1,425,357'
203,626'
463,272'
108,306'
1,466,117'
213,817'
480,718'
105,615'
1,493,772'
221,508'
495,865'
103,893'
1,541,478
228,255
509,873
101,626
1,595,974
236,220
525,109
99,592
1,130,781
330,521
182,514
18,410
120,210
9,387
131,940
93,649
17,247
21,016
28
1,272,206
379,498
196,163
20,264
152,894
10,177
154,441
107,302
19,817
27,291
31
1,392,084'
429,386'
213,624'
23,374'
181,031'
11,357'
177,263
121,879
23,329
31,973
82
1,357,483'
415,599
209,119
22,254
173,190
11,036
174,427
119,952
22,604
31,757
114
1,392,084'
429,386'
213,624'
23,374'
181,031'
11,357'
177,263
121,879
23,329
31,973
82
1,410,541'
441,293'
216,58C
25,310'
187,606'
11,797'
188,154'
131,381'
23,980'
32,707'
86
1,437,054
456,146
222,144
26,306
195,459
12,237
203,238
142,215
26,549
34,370
104
1,464,604
472,048
228,471
27,709
203,217
12,651
215,135
148,702
28,593
37,752
88
494,789
387,924
44,333
62,403
129
150,999
15,319
19,107
103,831
12,742
22,532
555,277
421,489
55,750
77,605
433
156,699
14,120
18,938
111,175
12,466
26,291
583,236'
432,422'
66,410'
83,798'
606'
171,797'
12,381'
19,894'
127,670'
11,852'
30,402
573,682'
425,596'
62,39C
85,061'
635'
164,760'
13,454'
19,074'
120,183'
12,049'
29,015
583,236'
432,422'
66,410'
83,798'
606'
171,797'
12,381'
19,894'
127,67C
11,852'
30,402
574,732'
420,073'
67,140'
86,860'
659'
174,823'
12,605'
20,009'
130,569'
11,64c
31,539
565,205
413,952
65,966
84,755
532
180,041
12,608
20,181
135,924
11,328
32,424
558,409
408,584
65,902
83,409
514
185,241
12,958
20,981
140,124
11,178
33,771
148,328
3,395
630
2,765
2,141
1,159
173
409
400
158,993
2,301
585
1,716
1,276
213
119
497
447
166,928
1,473
539
934
733
183
113
159
278
166,248
1,640
552
1,088
577
185
139
72
181
166,928
1,473
539
934
733
183
113
159
278
165,041'
1,533
527
1,006
704
217
33
217
237
161,398
876
49
827
570
146
66
111
247
159,429
826
44
782
457
132
57
115
153
4,894
1,893
3,001
78,256
73,045
5,211
52,010
3,081
48,929
7,632
7,559
73
4,816
2,048
2,768
87,940
82,175
5,765
52,261
3,074
49,187
10,399
9,654
745
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
4,918
2,251
2,667
96,769
90,590
6,179
49,255
2,895
46,360
13,089
11,457
1,632
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
4,964
2,309
2,655
98,795
92,315
6,480
45,422'
2,673'
42,749'
13,623
12,231
1,392
5,094
2,449
2,645
97,295
90,460
6,835
43,369
2,552
40,817
14,194
11,890
2,304
4,966
2,331
2,635
97,717
90,508
7,209
41,669
2,452
39,217
13,794
10,890
2,904
49 Mortgage pools or trusts 3
50 Government National Mortgage Association
51
1- to 4-family
52
Multifamily
53
Federal Home Loan Mortgage Corporation
54
1- to 4-family
55
Multifamily
56
Federal National Mortgage Association
57
1- to 4-family
58
Multifamily
59
Farmers Home Administration
60
1- to 4-family
61
Multifamily
67
Commercial
63
Farm
285,073
159,850
155,950
3,900
57,895
57,273
622
25,121
25,121
n.a.
42,207
20,404
5,090
7,351
9,362
332,057
179,981
175,589
4,392
70,822
70,253
569
36,215
35,965
250
45,039
21,813
5,841
7,559
9,826
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
388,948
201,026
196,198
4,828
91,915
90,997
918
48,769
47,857
912
47,238
22,090
6,415
8,192
10,541
415,042
212,145
207,198
4,947
100,387
99,515
872
54,987
54,036
951
47,523
22,186
6,675
8,190
10,472
440,701
220,348
215,148
5,200
110,337
108,020
2,317
62,310
61,117
1,193
47,706
22,082
6,943
8,150
10,531
475,615
229,204
223,838
5,366
125,903
123,676
2,227
72,377
71,153
1,224
48,131
21,987
7,170
8,347
10,627
520,675
241,230
235,582
5,648
144,825
142,638
2,187
86,359
85,171
1,188
48,261
21,782
7,353
8,409
10,717
64 Individuals and others 4
65
1- to 4-family
66
Multifamily
67
Commercial
68
Farm
249,674
141,769
40,873
35,169
31,863
271,346
152,154
48,480
41,279
29,433
292,213
162,853
55,195
47,897
26,268
287,882
163,149
52,526
44,817
27,390
292,213
162,853
55,195
47,897
26,268
298,755
164,955
57,850
49,756
26,194
307,165
169,935
60,589
50,907
25,734
312,187
171,958
63,072
52,083
25,074
6 Selected financial institutions
7
Commercial banks 1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
1?
Savings banks
13
1- to 4-family
14
Multifamily
15
Commercial
16
Farm
17
18
19
70
?1
77
73
74
75
76
27
Savings and loan associations
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies 2
28 Federal and related agencies
29
Government National Mortgage Association
30
1- to 4-family
31
Multifamily
37, Farmers Home Administration
33
1- to 4-family
34
Multifamily
35
Commercial
36
Farm
37
38
39
40
41
42
43
44
45
46
47
48
Federal Housing and Veterans
Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Includes loans held by nondeposit trust companies but not bank trust
departments.
2. Assumed to be entirely 1- to 4-family loans.
3. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
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 other U.S. agencies.
NOTE. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers to
loans on structures of five or more units.
A40
1.55
DomesticNonfinancialStatistics • January 1987
C O N S U M E R I N S T A L L M E N T CREDIT 1 - 4 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1986
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Amounts outstanding (end of period)
1
453,580
535,098
542,753
547,852
550,939
555,810
562,267
567,653
573,216
576,609
584,977
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
209,158
96,126
66,544
37,061
40,330
4,361
240,796
120,095
75,127
39,187
55,555
4,337
243,256
123,717
75,810
39,416
56,290
4,264
244,761
126,001
76,431
39,497
57,048
4,114
245,172
127,422
76,953
39,844
57,573
3,975
247,498
128,728
77,957
39,826
58,024
3,777
248,681
131,172
78,474
40,139
60,247
3,554
249,753
134,933
79,095
40,076
60,352
3,445
251,197
137,197
80,130
40,251
61,051
3,389
251,908
138,938
80,622
40,351
61,421
3,368
253,543
144,559
81,594
40,445
61,540
3,295
By major type of credit
8 Automobile
y Commercial banks
10 Credit unions
11 Finance companies
12 Savings institutions
173,122
83,900
28,614
54,663
5,945
206,482
92,764
30,577
73,391
9,750
210,661
93,489
30,855
76,410
9,907
213,342
93,828
31,107
78,310
10,097
214,361
93,377
31,320
79,416
10,248
215,814
93,013
31,728
80,685
10,386
218,965
93,157
31,939
83,221
10,648
222,606
93,261
32,191
86,520
10,634
226,234
94,014
32,613
88,862
10,745
228,814
94,686
32,813
90,578
10,736
236,551
95,988
33,209
%,598
10,757
13 Revolving
14 Commercial banks
15 Retailers
16 Gasoline companies
17
Savings institutions
98,514
58,145
33,064
4,361
2,944
118,2%
73,893
34,560
4,337
5,506
119,682
74,991
34,770
4,264
5,657
120,724
75,953
34,843
4,114
5,813
122,131
77,021
35,188
3,975
5,947
123,442
78,421
35,170
3,777
6,075
124,545
79,151
35,449
3,554
6,392
124,720
79,397
35,390
3,445
6,488
125,577
79,998
35,542
3,389
6,649
125,915
80,133
35,639
3,368
6,775
126,426
80,551
35,688
3,295
6,893
18 Mobile home
19 Commercial banks
20
Finance companies
21
Savings institutions
24,184
9,623
9,161
5,400
25,461
9,578
9,116
6,767
25,371
9,457
9,125
6,789
25,573
9,566
9,161
6,846
25,584
9,348
9,327
6,909
25,513
9,264
9,286
6,%3
25,560
9,215
9,115
7,230
25,479
9,1%
9,077
7,206
25,398
9,156
8,989
7,253
25,215
9,086
8,882
7,248
24,949
9,037
8,681
7,231
22 Other
Commercial banks
23
24
Finance companies
25
Credit unions
Retailers
26
27
Savings institutions
157,760
57,490
32,302
37,930
3,997
26,041
184,859
64,561
37,588
44,550
4,627
33,533
187,039
65,319
38,182
44,955
4,646
33,937
188,212
65,414
38,530
45,323
4,653
34,291
188,863
65,427
38,678
45,633
4,656
34,469
191,041
66,800
38,757
46,228
4,656
34,600
193,197
67,158
38,836
46,535
4,690
35,977
194,847
67,898
39,336
46,903
4,686
36,024
1%,007
68,030
39,345
47,517
4,710
36,405
196,665
68,003
39,479
47,809
4,712
36,662
197,050
67,%7
39,281
48,385
4,758
36,660
2
3
4
5
6
7
Net change (during period)
28 Total
77,341
81,518
7,655
5,099
3,087
4,871
6,457
5,386
5,563
3,393
8,368
By major holder
Commercial banks
Finance companies 2
Credit unions
Retailers 3
Savings institutions
Gasoline companies
39,819
9,961
13,456
2,900
11,038
167
31,638
23,%9
8,583
2,126
15,225
-24
2,460
3,622
683
229
735
-73
1,505
2,284
621
81
758
-150
411
1,421
522
347
525
-139
2,326
1,306
1,004
-18
451
-198
1,183
2,444
517
313
2,223
-223
1,072
3,761
621
-63
105
-109
1,444
2,264
1,035
175
699
-56
711
1,741
492
100
370
-21
1,635
5,621
972
94
119
-73
By major type of credit
35 Automobile
36 Commercial banks
37 Credit unions
38
Finance companies
39
Savings institutions
27,214
16,352
3,223
4,576
3,063
33,360
8,864
1,963
18,728
3,805
4,179
725
278
3,019
157
2,681
339
252
1,900
190
1,019
-451
213
1,106
151
1,453
-364
408
1,269
138
3,151
144
211
2,536
262
3,641
104
252
3,299
-14
3,628
753
422
2,342
111
2,580
672
200
1,716
-9
7,737
1,302
3%
6,020
21
40 Revolving
41 Commercial banks
Retailers
42
43 Gasoline companies
44
Savings institutions
20,145
15,949
2,512
167
1,517
19,782
15,748
1,4%
-24
2,562
1,386
1,098
210
-73
151
1,042
%2
73
-150
156
1,407
1,068
345
-139
134
1,311
1,400
-18
-198
128
1,103
730
279
-223
317
175
246
-59
-109
%
857
601
152
-56
161
338
135
97
-21
126
511
418
49
-73
118
45 Mobile home
Commercial banks
46
47
Finance companies
48
Savings institutions
1,990
-199
544
1,645
1,277
-45
-45
1,367
-90
-121
9
22
202
109
36
57
11
-218
166
63
-71
-84
-41
54
47
-49
-171
267
-81
-19
-38
-24
-81
-40
-88
47
-183
-70
-107
-5
-266
-49
-201
-17
49 Other
Commercial banks
50
51
Finance companies
52 Credit unions
Retailers
53
54
Savings institutions
27,992
7,717
4,841
10,233
388
4,813
27,099
7,071
5,286
6,620
630
7,492
2,180
758
594
405
19
404
1,173
95
348
368
7
354
651
13
148
310
3
178
2,178
1,373
79
595
0
131
2,156
358
79
307
34
1,377
1,650
740
500
368
-4
47
1,160
132
9
614
24
381
658
-27
134
292
2
257
385
-36
-198
576
46
-2
29
30
31
32
33
34
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
2. More detail for finance companies is available in the G.20 statistical release,
3. Excludes 30-day charge credit held by travel and entertainment companies,
4. All data have been revised.
Consumer Installment Credit
1.56
A41
TERMS OF C O N S U M E R I N S T A L L M E N T CREDIT
Percent unless noted otherwise
1986
Item
1984
1983
1985
Mar.
Apr.
May
June
Aug.
July
Sept.
INTEREST RATES
1
2
3
4
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
13.92
16.68
16.08
18.78
13.71
16.47
15.58
18.77
12.91
15.94
14.96
18.69
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.45
14.89
13.97
18.32
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.00
14.70
13.95
18.15
n.a.
n.a.
n.a.
n.a.
12.58
18.74
14.62
17.85
11.98
17.59
10.51
16.63
10.55
16.67
9.49
16.56
9.35
16.06
9.31
15.83
9.29
15.56
5.40
15.23
45.9
37.9
48.3
39.7
51.5
41.4
51.0
42.4
50.6
42.5
49.4
42.5
49.5
42.7
49.9
42.8
50.4
42.9
44.5
42.5
86
92
88
92
91
94
90
95
89
%
89
97
89
97
89
97
90
97
92
98
8,787
5,033
9,333
5,691
9,915
6,089
10,306
6,207
10,402
6,281
10,521
6,393
10,608
6,611
10,748
6,614
10,756
6,569
11,162
6,763
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 1987
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-yearly data are at seasonally adjusted annual rates.
1983
H2
1984
1985
1986
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . . .
By sector and instrument
1 U.S. government
3 Treasury securities
4 Agency issues and mortgages
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
344.9
375.8
387.4
548.8
756.3
859.1
591.5
728.8
783.8
726.3
992.0
668.6
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
223.6
223.7
-.1
156.6
156.7
-.1
181.0
181.2
-.2
216.6
216.8
-.1
201.3
201.4
-.1
246.0
246.0
-.1
210.7
210.8
-.1
265.7
189.1
30.3
27.7
131.2
94.2
7.6
19.2
10.2
288.5
155.5
23.4
22.8
109.3
72.2
4.8
22.2
10.0
226.2
148.3
44.2
18.7
85.4
50.5
5.4
25.2
4.2
362.2
252.8
53.7
16.0
183.0
117.1
14.1
49.0
2.8
557.5
314.0
50.4
46.1
217.5
129.9
25.1
63.3
-.8
635.5
462.4
152.4
73.9
236.2
151.8
29.3
61.5
-6.4
434.9
277.9
51.8
11.5
214.6
135.0
20.4
55.3
3.9
547.8
298.5
42.7
31.2
224.5
135.2
27.5
62.9
-1.1
567.2
329.5
58.0
61.0
210.4
124.6
22.7
63.7
-.5
525.1
354.3
67.4
72.7
214.1
133.1
24.5
59.3
-2.8
746.0
570.6
237.3
75.0
258.2
170.4
34.1
63.7
-9.9
457.9
371.2
11.8
129.2
230.2
151.7
27.3
58.1
-6.8
76.6
4.5
37.8
4.0
30.3
133.0
22.6
57.0
14.7
38.7
77.9
17.7
52.9
-6.1
13.4
109.5
56.8
25.8
-.8
27.7
243.5
95.0
80.1
21.7
46.6
173.1
96.6
37.6
14.6
24.3
157.0
75.1
41.1
4.3
36.5
249.3
98.7
93.0
24.8
32.8
237.7
91.3
67.2
18.7
60.4
170.8
97.3
28.5
12.3
32.7
175.4
95.9
46.8
16.9
15.8
86.7
74.9
4.9
-15.7
22.6
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
19
20
21
22
23
24
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
265.7
17.2
120.0
15.2
31.8
81.5
288.5
6.8
121.4
16.6
38.5
105.2
226.2
21.5
88.4
6.8
40.2
69.2
362.2
34.0
188.0
4.3
76.6
59.3
557.5
27.4
239.5
.1
97.1
193.4
635.5
107.8
292.0
-14.3
90.0
160.1
434.9
33.7
223.2
6.7
91.7
79.7
547.8
25.2
232.9
-.4
101.4
188.6
567.2
29.6
246.1
.5
92.7
198.2
525.1
56.8
248.5
-7.4
83.3
143.9
746.0
158.8
335.5
-21.2
96.7
176.3
457.9
31.4
217.5
-16.5
85.8
139.7
25 Foreign net borrowing in United States
26
Bonds
27
Bank loans n.e.c
28
Open market paper
29
U.S. government loans
23.8
.8
11.8
2.4
8.8
23.5
5.4
3.0
3.9
11.1
16.0
6.7
-5.5
1.9
13.0
17.4
3.1
3.6
6.5
4.1
6.1
1.3
-6.6
6.2
5.3
2.1
4.0
-2.6
6.2
-5.5
15.5
2.3
-3.4
6.0
10.7
35.4
1.1
-2.3
18.0
18.7
-23.2
1.5
-11.0
-5.6
-8.1
-4.2
5.5
-6.1
4.2
-7.8
8.4
2.6
.9
8.2
-3.2
27.5
6.9
.9
20.6
1.0
368.7
399.3
403.4
566.2
762.4
861.2
607.1
764.2
760.6
722.1
1000.4
696.0
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
35
36 Private financial sectors
37 Corporate bonds
38 Mortgages
39 Bank loans n.e.c
Open market paper
40
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
65.4
101.9
90.1
94.0
139.0
186.9
123.1
134.3
143.8
154.9
218.8
186.4
44.8
24.4
19.2
1.2
20.6
1.6
47.4
30.5
15.0
1.9
54.5
4.4
67.8
1.4
66.4
74.9
30.4
44.4
69.8
29.1
40.7
80.0
31.8
48.2
92.9
25.3
67.6
26.2
12.1
64.5
17.3
.4
2.1
40.9
-1.8
31.1
15.7
63.8
29.3
.4
1.4
17.0
15.7
62.0
35.3
-.1
21.3
-7.0
64.1
23.3
.4
.7
24.1
15.7
54.3
13.1
*
101.5
20.6
79.9
1.1
85.3
36.5
.1
2.5
32.0
14.2
68.8
8.1
60.7
*
64.9
14.9
49.5
.4
25.2
12.5
.1
1.9
9.9
.8
1.0
13.9
11.7
110.2
15.9
92.1
22
108.7
37.7
.1
4.1
50.1
16.7
130.2
4.4
125.1
8
56.2
24.0
.1
3.5
15.2
13.5
1.4
66.4
26.2
5.0
12.1
-2.1
11.4
-.2
30.4
44.4
64.1
7.3
15.6
22.7
17.8
.8
21.7
79.9
85.3
-4.9
14.5
22.3
52.8
.5
8.1
60.7
54.3
17.1
14.9
4.6
18.0
-.3
29.1
40.7
64.5
15.4
23.7
20.2
4.4
.8
31.8
48.2
63.8
-.9
7.5
25.1
31.2
.8
25.3
67.6
62.0
-9.2
13.7
12.1
44.9
.5
18.1
92.1
108.7
-.6
15.3
32.6
60.8
.5
5.2
125.1
56.2
-13.4
7.1
31.9
28.9
1.7
-1.0
12.9
7.1
1.2
32.7
16.2
25.6
19.2
20.6
8.3
6.7
7.4
-1.3
-.5
32.4
15.0
54.5
11.6
9.2
15.5
18.5
-.2
15.3
49.5
25.2
11.7
6.8
2.5
4.3
*
*
*
*
*
All sectors
50 Total net borrowing
434.1
501.3
493.5
660.2
901.4
1048.1
730.2
898.5
904.3
877.0
1219.2
882.5
51
52
53
54
55
56
57
58
122.9
30.3
30.1
131.1
4.5
48.5
19.3
47.5
133.0
23.4
32.6
109.2
22.6
61.2
51.3
68.0
225.9
44.2
37.8
85.4
17.7
49.3
5.7
27.6
254.4
53.7
31.2
183.0
56.8
29.3
26.9
24.8
273.8
50.4
70.7
217.8
95.0
74.2
52.0
67.6
324.2
152.4
114.4
236.1
96.6
37.6
52.8
34.1
225.5
51.8
26.8
214.5
75.1
39.8
51.2
45.4
250.9
42.7
49.6
224.9
98.7
90.7
73.9
67.1
296.7
58.0
91.8
210.7
91.3
57.6
30.1
68.0
294.3
67.4
113.5
214.0
97.3
23.3
30.4
36.6
354.0
237.3
115.3
258.2
95.9
51.8
75.2
31.5
340.2
11.8
160.1
230.3
74.9
9.3
20.0
35.9
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
External corporate equity funds raised in United States
59 Total new share issues
60
61
62
63
64
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
21.2
-3.3
33.6
67.0
-31.1
37.5
52.1
-40.1
-22.2
33.3
41.6
163.4
4.5
16.8
12.9
1.8
2.1
6.0
-9.3
-11.5
1.9
.3
16.8
16.8
11.4
4.0
1.5
32.1
34.9
28.3
2.7
3.9
38.0
-69.1
-77.0
6.7
1.2
103.4
-65.9
-81.6
11.7
4.0
28.7
23.4
18.4
2.9
2.1
39.3
-79.4
-84.5
5.9
-.7
36.6
-58.8
-69.4
7.6
3.0
93.6
-60.4
-75.7
11.0
4.3
113.1
-71.5
-87.5
12.4
3.6
214.1
-50.7
-67.5
8.3
8.5
Flow of Funds
1.58
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
1983
Transaction category, or sector
1980
1981
1982
1983
1984
H2
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1985
1986
1985
HI
H2
HI
H2
HI
344.9
375.8
387.4
548.8
756.3
859.1
591.5
728.8
783.8
726.3
992.0
668.6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
94.9
15.8
31.7
7.1
40.2
104.4
17.1
23.5
16.2
47.7
115.4
22.7
61.0
.8
30.8
115.3
27.6
76.1
-7.0
18.6
154.6
36.0
56.5
15.7
46.5
193.0
43.1
94.6
14.2
41.0
106.8
19.0
71.5
-1.8
18.1
133.4
27.6
52.7
15.7
37.5
175.8
44.4
60.2
15.7
55.5
195.6
50.1
85.6
11.7
48.2
190.3
36.1
103.7
16.7
33.9
255.9
63.3
121.2
13.5
57.9
7
8
9
10
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
23.7
45.6
4.5
21.1
24.0
48.2
9.2
23.0
15.9
65.5
9.8
24.1
9.7
69.8
10.9
24.9
17.4
73.3
8.4
55.5
10.8
101.5
21.6
59.1
9.7
70.5
12.2
14.5
9.0
74.0
9.0
41.3
25.7
72.5
7.8
69.8
20.8
98.2
24.0
52.6
.7
104.9
19.2
65.6
7.9
128.0
10.1
109.9
11
12
Agency and foreign borrowing not in line 1
Sponsored credit agencies and mortgage pools
Foreign
44.8
23.8
47.4
23.5
64.9
16.0
67.8
17.4
74.9
6.1
101.5
2.1
68.8
15.5
69.8
35.4
80.0
-23.2
92.9
-4.2
110.2
8.4
130.2
27.5
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
318.7
107.1
30.3
20.3
70.0
98.1
7.1
342.3
115.9
23.4
19.8
53.5
145.9
16.2
352.9
203.1
44.2
14.8
-5.3
96.9
.8
518.7
226.9
53.7
14.6
55.0
161.5
-7.0
682.7
237.8
50.4
32.6
98.5
279.1
15.7
769.8
281.1
152.4
36.5
86.3
227.7
14.2
569.1
206.5
51.8
9.0
83.9
216.0
-1.8
700.6
223.3
42.7
25.6
109.9
314.7
15.7
664.8
252.3
58.0
39.5
87.0
243.6
15.7
619.4
244.2
67.4
47.1
71.9
200.4
11.7
920.2
317.9
237.3
25.9
100.8
255.0
16.7
570.4
276.8
11.8
88.8
57.7
148.7
13.5
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
71
Commercial banking
7?
Savings institutions
23
Insurance and pension funds
24 Other finance
286.2
107.6
51.3
93.2
34.0
320.2
106.5
26.2
93.5
94.0
261.9
110.2
21.8
86.2
43.7
391.9
144.3
135.6
97.8
14.1
550.5
168.9
149.2
124.0
108.3
547.2
186.8
85.7
133.4
141.3
447.6
167.2
143.8
105.7
30.9
583.4
185.7
173.6
144.6
79.5
517.5
152.0
124.9
103.5
137.1
461.2
135.8
63.1
113.9
148.4
633.2
237.9
108.3
153.0
134.1
574.1
86.6
113.8
141.5
232.1
75 Sources of funds
76
Private domestic deposits and RPs
27 Credit market borrowing
286.2
170.8
20.6
320.2
214.5
54.5
261.9
195.2
25.2
391.9
212.2
26.2
550.5
317.6
64.1
547.2
206.9
85.3
447.6
235.7
54.3
583.4
300.3
64.5
517.5
334.8
63.8
461.2
201.8
62.0
633.2
212.1
108.7
574.1
215.1
56.2
78
?9
30
31
32
94.8
-25.1
-2.6
88.9
33.6
51.2
-23.7
-1.1
89.6
-13.6
41.5
-31.4
6.1
92.5
-25.7
153.4
16.3
-5.3
110.6
31.8
168.8
5.4
4.0
112.5
46.8
254.9
16.2
10.3
102.2
126.3
157.6
46.2
-21.9
122.4
10.9
218.6
3.0
-.4
146.5
69.5
119.0
7.8
8.5
78.5
24.2
197.4
11.2
13.9
92.0
80.4
312.5
21.2
6.6
112.5
172.2
302.7
-6.4
-7.8
107.7
209.3
53.1
34.2
7.0
-11.7
-4.6
28.2
76.6
37.1
11.1
-4.0
1.4
31.0
116.3
69.9
25.0
2.0
-1.3
20.6
153.0
95.5
39.0
-12.7
15.1
16.2
196.4
132.9
29.6
-3.4
8.9
28.3
307.9
156.8
58.8
15.5
49.9
26.9
175.8
89.2
37.8
-4.5
32.1
21.2
181.7
140.9
25.0
-26.7
15.6
26.9
211.0
125.0
34.3
19.9
2.3
29.7
220.2
134.4
20.2
34.5
4.9
26.3
395.6
179.3
97.4
-3.5
94.9
27.6
52.5
55.7
-37.1
27.2
-16.4
23.1
19 Deposits and currency
40
Currency
41
Checkable deposits
47
Small time and savings accounts
43
Money market fund shares
44
Large time deposits
45
Security RPs
46
Deposits in foreign countries
183.9
10.3
6.5
82.3
29.2
45.9
6.8
2.8
222.4
9.5
18.5
47.3
107.5
36.0
5.2
-1.7
204.5
9.7
18.6
135.7
24.7
5.2
11.1
-.4
229.7
14.3
28.8
215.3
-44.1
-6.3
18.5
3.1
321.1
8.6
27.8
150.7
47.2
84.9
7.0
-5.1
217.2
12.4
44.2
137.5
-2.2
14.0
13.4
-2.1
248.8
17.4
16.2
148.1
-4.2
53.8
21.8
-4.3
311.5
13.2
30.2
136.2
30.2
92.9
10.8
-2.0
330.7
4.1
25.4
165.1
64.2
77.0
3.1
-8.2
215.0
15.9
18.1
166.7
4.2
-1.5
14.3
-2.6
219.3
8.9
70.2
108.3
-8.6
29.6
12.5
-1.7
216.6
11.4
76.0
115.5
29.0
-5.4
.1
-10.0
47 Total of credit market instruments, deposits and
currency
237.0
299.0
320.7
382.7
517.4
525.1
424.6
493.2
541.7
435.2
614.9
269.0
25.7
89.8
-4.0
26.2
93.6
28.6
74.2
-7.3
20.4
75.5
41.3
20.3
80.6
60.9
22.4
71.1
75.2
17.6
78.7
60.6
17.5
83.3
44.3
23.1
77.8
77.6
27.1
74.5
63.7
19.0
68.8
86.7
36.8
100.7
103.5
21.2
4.5
16.8
22.2
-1.0
-3.3
6.0
-9.3
19.9
-23.2
33.6
16.8
16.8
27.6
6.0
67.0
32.1
34.9
46.8
20.2
-31.1
38.0
-69.1
8.2
-39.4
37.5
103.4
-65.9
31.2
6.3
52.1
28.7
23.4
35.6
16.5
-40.1
39.3
-79.4
-4.1
-36.0
-22.2
36.6
-58.8
20.6
-42.7
33.3
93.6
-60.4
48.0
-14.7
41.6
113.1
-71.5
14.3
27.3
163.4
214.1
-50.7
28.5
134.9
?
3
4
5
6
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Private domestic nonfinancial investors
33 Direct lending in credit markets
34
U.S. government securities
35
State and local obligations
36 Corporate and foreign bonds
37 Open market paper
38 Other
48
49
50
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
51 Total net issues
57 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
-.7
NOTES BY LINE NUMBER.
1.
2.
6.
11.
13.
18.
26.
27.
29.
30.
Line 1 of table 1.57.
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, less
claims on foreign affiliates and deposits by banking in foreign banks.
Demand deposits and note balances at commercial banks.
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
A44
2.10
Domestic Nonfinancial Statistics • January 1987
N O N F I N A N C I A L B U S I N E S S ACTIVITY Selected Measures'
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1986
Measure
1983
1984
1985
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.
1 Industrial production
109.2
121.8
124.5
125.3
123.6
124.7
124.2
124.2
124.9'
125.1
125.2
125.2
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
113.9
114.7
109.3
121.7
111.2
102.8
127.1
127.8
118.2
140.5
124.9
114.6
131.7
132.0
120.7
147.1
130.6
114.7
132.9
132.8
123.3
145.4
133.4
114.8
131.2
130.6
121.8
142.3
133.3
113.3
132.7
132.1
124.5
142.3
134.5
113.8
132.4
131.6
124.3
141.2
135.1
113.0
132.4
131.1
124.4
140.0
137.0
113.1
133.2'
132.0'
125.2'
141.0'
137.3'
113.6'
133.7
132.5
125.1
142.4
137.8
113.2
133.8
132.9
125.1
143.1
137.2
113.5
133.8
132.7
124.6
143.5
137.7
113.5
110.2
123.9
127.1
128.7
127.2
128.7
128.2
128.3
129.2'
129.5
129.5
129.5
74.0
75.3
80.8
82.3
80.3
80.2
80.2
79.6
79.1
78.5
79.9
78.7
79.4
78.1
79.3
78.0
79.7
78.3
79.8
78.0
79.6
78.1
79.4
77.9
2
3
4
5
6
7
Industry groupings
8 Manufacturing
Capacity utilization (percent) 2
9
Manufacturing
10 Industrial materials industries
3
138.0
150.0
161.0
162.0
149.0
176.0
160.0
161.0
163.0
168.0
158.0
170.0
12
13
14
15
16
17
18
19
20
21
11 Construction contracts (1977 = 100)
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income 5
Retail sales (1977 = 100)6
109.4
95.9
93.6
88.6
115.0
176.6
168.7
149.0
176.0
162.0
114.5
101.6
98.6
94.1
120.0
193.5
184.8
164.6
193.6
179.0
118.5
102.9
98.7
93.5
125.0
206.2
197.8
172.5
205.0
190.6
120.6
102.9
98.0
92.6
128.0
213.7
205.7
176.2
212.9
194.5
120.6
102.5
97.8
92.4
128.2
214.3
206.4
176.4
213.7
193.7
121.0
102.9
97.8
92.4
128.6
216.9
206.8
175.8
216.5
195.4
121.2
102.6
97.5
92.1
129.0
216.6
207.1
176.1
215.9
197.0
121.1
102.1
97.2
91.8
129.0
216.6
207.6
175.4
215.5
197.5
121.4
102.2
97.1
91.7
129.4
217.3
208.5
175.5
216.0
198.9
121.6
102.2
97.1
91.7
129.7
217.8
209.6
176.6
216.1
201.7
121.8
102.1
97.0
91.6
130.1
218.5
210.1
176.4
216.6
212.5
122.2
102.2
97.2
91.9
130.5
219.2
211.5
178.9
217.2
201.8
22
23
Prices 7
Consumer
Producer finished goods
298.4
285.2
311.1
291.1
322.2
293.7
327.5
291.9
326.0
288. (K
325.3
287.2
326.3
288.9'
327.9
289.3'
328.0
288.0
328.6
288.3
330.2
287.5
330.5
290.5
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
A45
LABOR FORCE, E M P L O Y M E N T , A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1986
Category
1983
1984
1985
Mar.
Apr.
May
June
July
Aug.
Sept.'
Oct.
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
176,414
178,602
180,440
182,223
182,387
182,545
182,732
182,906
183,074
183,261
183,450
2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries 2
5
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor force) . . .
8 Not in labor force
113,749
111,550
115,763
113,544
117,695
115,461
119,445
117,207
119,473
117,234
119,898
117,664
120,345
118,116
120,296
118,072
120,428
118,182
120,484
118,220
120,746
118,482
97,450
3,383
101,685
3,321
103,971
3,179
105,503
3,285
105,670
3,222
105,950
3,160
106,508
3,165
106,769
3,112
107,107
3,048
106,770
3,121
107,091
3,149
10,717
9.6
62,665
8,539
7.5
62,839
8,312
7.2
62,745
8,419
7.2
62,778
8,342
7.1
62,914
8,554
7.3
62,647
8,443
7.1
62,387
8,190
6.9
62,610
8,027
6.8
62,646
8,329
7.0
62,777
8,242
7.0
62,704
90,196
94,461
97,698
99,484
99,783
99,918
99,843
100,105
100,283'
100,448
100,746
18,434
952
3,948
4,954
20,881
5,468
19,694
15,869
19,412
974
4,345
5,171
22,134
5,682
20,761
15,984
19,426
969
4,661
5,300
23,195
5,924
21,929
16,295
19,255
852
4,838
5,280
23,669
6,184
22,707
16,699
19,245
821
4,972
5,266
23,715
6,228
22,825
16,711
19,201
790
4,974
5,265
23,783
6,261
22,924
16,720
19,135
772
4,947
5,167
23,773
6,295
23,072
16,682
19,121
768
4,980
5,288
23,841
6,334
23,176
16,597
19,123'
753'
5,012
5,255'
23,893'
6,364'
23,255'
16,628'
19,099
743
5,008
5,309
23,888
6,383
23,275
16,743
19,126
746
5,010
5,314
23,980
6,399
23,368
16,803
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
4. In addition to the revisions noted here, data for January through June 1985
have been revised as follows: Jan., 21,382; Feb., 21,480; Mar., 21,644; Apr.,
21,723; May, 21,813; and June, 21,856. These data were reported incorrectly in
the BULLETIN for November 1985 through March 1986.
A46
2.12
Domestic Nonfinancial Statistics • January 1987
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1986
1985
Q4
Ql
Q2
1985
Q3
Q4
1986
Ql
Q2
1985
Q3
Q4
Capacity (percent of 1977 output)
Output (1977 = 100)
1986
Ql
Q2
Q3
Utilization rate (percent)
1 Total industry
124.7
125.0
124.3
125.1
155.4
156.3
157.1
157.9
80.2
80.0
79.2
79.2
2 Mining
3 Utilities
107.1
112.8
105.4
110.5
100.1
109.5
96.6
110.6
132.5
135.7
132.1
136.3
132.1
136.9
137.5
149.0
80.9
83.2
79.6
81.1
75.6
79.5
73.2
80.5
4 Manufacturing
127.4
128.4
128.3
129.5
159.5
160.5
161.4
162.3
79.9
80.0
79.5
79.8
5 Primary processing . . .
6 Advanced processing .
110.3
137.8
111.5
138.5
111.1
138.8
111.9
140.1
133.1
175.3
133.6
176.7
134.0
177.9
134.5
179.2
82.8
78.6
83.5
78.4
82.9
78.0
83.2
78.2
7 Materials
114.3
114.5
113.4
113.4
143.6
144.2
144.7
145.3
79.6
79.4
78.3
78.1
8 Durable goods
9 Metal materials
10 Nondurable goods
11 Textile, paper, and chemical..
17
n
121.1
82.6
113.9
114.0
124.8
113.4
120.9
79.0
115.7
116.2
128.8
115.3
118.8
75.2
116.8
117.0
130.2
115.4
118.7
72.6
118.9
119.6
159.0
115.5
138.6
138.0
136.5
143.6
159.9
115.0
139.0
138.4
137.3
144.0
160.7
114.5
139.5
138.8
138.1
144.3
161.5
114.0
139.9
139.2
76.2
71.5
82.2
82.7
91.4
79.0
75.6
68.7
83.2
83.9
93.8
80.1
73.9
65.7
83.8
84.3
94.3
79.9
73.5
63.7
85.0
85.9
14 Energy materials
102.6
102.2
100.8
99.4
120.9
121.1
121.3
121.4
84.9
84.4
82.9
81.9
Previous cycle 1
High
Low
Latest cycle 2
High
Low
1985
Aug.
1986
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct.
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
80.6
80.2
79.0
79.5
79.1
79.0r
77.2
79.2
79.2
79.0
16 Mining
17 Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
81.6
81.5
79.4
80.4
77.9
80.1
76.4
80.0
75.5
79.3
74.9
79.2
73.5
79.9
73.1
78.8
72.7
80.7
72.5
81.3
18 Manufacturing
87.7
69.9
86.5
68.0
80.3
80.2
79.1
79.9
79.4
79.3
79.7
79.8
79.6
79.4
82.5
79.3
83.6
78.6
82.4
77.4
83.2
78.5
82.9
78.0
82.7
77.7
82.9
78.4
83.3
78.0
83.3
77.8
83.6
77.5
19 Primary processing . . .
20 Advanced processing .
91.9
86.0
68.3
71.1
89.1
85.1
65.1
69.5
21 Materials
92.0
70.5
89.1
68.4
79.8
79.6
78.5
78.7
78.1
78.0
78.3
78.0
78.1
77.9
22 Durable goods
Metal materials
23
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
76.8
70.2
75.9
69.0
74.5
66.0
74.9
68.3
73.7
65.2
73.2
63.2
73.7
63.8
73.5
63.8
73.3
63.8
73.3
64.8
24 Nondurable goods . . . .
25
Textile, paper, and
chemical
26
Paper
27
Chemical
91.1
66.7
88.1
70.6
81.6
83.5
82.5
83.6
83.5
84.3
85.0
85.4
85.9
85.7
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.6
79.9
63.3
81.7
89.7
78.7
84.2
93.8
80.2
83.4
93.0
79.4
83.6
93.6
79.4
84.2
93.1
80.2
85. V
95.y
80.4
85.6
97.8
80.2
86.4
97.6
81.1
86.9
96.4
81.9
86.8
94.6
80.8
28 Energy materials
94.6
86.9
94.0
82.2
84.8
84.3
83.7
82.8
82.9
83.1
82.3
81.0
81.4
81.1
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
A47
I N D U S T R I A L PRODUCTION Indexes and Gross Value A
Monthly data are seasonally adjusted
1977
Grouping
portion
1986
1985
1985
avg.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
Sept.''
Oct/
Index (1977 = 100)
MAJOR MARKET
100.00
123.8
123.6
124.8
125.6
126.2
125.3
123.6
124.7
124.2
124.2
124.9
125.1
125.2
125.2
2 Products
3
Final products
Consumer goods
4
5
Equipment
57.72
44.77
25.52
19.25
130.8
131.1
120.2
145.4
131.0
131.0
120.5
144.9
132.8
133.1
122.7
147.0
133.0
133.2
123.3
146.4
134.0
133.9
123.8
147.5
132.9
132.8
123.3
145.4
131.2
130.6
121.8
142.3
132.7
132.1
124.5
142.3
132.4
131.6
124.3
141.2
132.4
131.1
124.4
140.0
133.2
132.0
125.2
141.0
133.7
132.5
125.1
142.4
133.8
132.9
125.1
143.1
133.8
132.7
124.6
143.5
6
Intermediate products
7 Materials
12.94
42.28
130.0
114.2
131.2
113.4
131.8
113.9
132.0
115.4
134.2
115.5
133.4
114.8
133.3
113.3
134.5
113.8
135.1
113.0
137.0
113.1
137.3
113.6
137.8
113.2
137.2
113.5
137.7
113.5
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
112.9
114.0
112.0
98.9
136.3
116.9
112.2
131.0
131.8
119.8
94.3
112.3
113.2
111.3
94.9
141.8
116.0
111.6
127.5
129.8
121.9
94.4
115.4
115.6
114.1
95.6
148.6
117.7
115.3
138.8
141.3
124.6
93.1
115.3
113.9
U0.4
94.6
139.8
119.0
116.4
140.4
143.2
123.3
95.1
116.0
116.2
118.2
105.5
141.7
113.3
115.8
133.2
135.7
125.1
98.0
116.6
117.6
119.4
107.1
142.1
114.9
115.8
135.1
137.6
124.4
97.0
112.4
110.4
106.3
93.7
129.6
116.6
113.9
133.7
136.0
121.2
95.5
115.9
116.4
115.1
100.8
141.5
118.4
115.5
138.8
140.6
121.8
95.0
113.8
113.2
110.3
94.8
139.1
117.4
114.3
133.9
135.8
123.3
95.0
114.3
113.7
112.2
99.3
136.1
116.1
114.8
137.5
139.1
122.5
94.1
116.3
116.4
114.5
95.3
150.3
119.1
116.3
138.9
141.6
126.6
94.1
115.5
114.5
110.4
87.8
152.4
120.6
116.3
139.4
142.5
124.2
95.2
117.0
117.4
116.8
96.2
155.1
118.4
116.7
140.8
143.0
124.1
95.2
115.1
112.0
107.7
91.9
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
122.9
129.0
128.8
129.2
149.1
141.9
101.8
88.6
115.3
123.5
129.4
128.7
130.1
149.1
143.5
103.0
90.1
116.2
125.3
131.3
130.5
132.1
154.8
143.2
103.1
89.8
116.6
126.3
132.5
131.6
133.4
153.6
146.5
105.4
91.7
119.4
126.6
132.8
130.1
135.6
156.3
148.9
107.0
94.1
120.1
125.8
132.3
131.1
133.5
158.3
143.4
103.2
92.0
114.5
125.3
131.6
130.3
133.0
156.4
143.1
104.0
92.2
116.1
127.7
134.3
131.9
136.7
163.1
145.1
106.0
93.7
118.4
128.1
135.0
132.4
137.7
162.4
148.6
106.8
96.4
117.5
128.1
135.1
133.3
137.0
163.6
147.1
104.8
91.8
118.1
128.4
135.3
132.2
138.5
166.4
146.4
106.6
91.2
122.3
128.6
135.6
133.3
138.1
163.4
147.4
107.6
95.9
119.6
128.1
135.1
132.5
137.8
163.7
146.8
107.1
93.3
128.1
135.0
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
14.34
2.08
3.27
1.27
5.22
2.49
3.67
146.0
139.6
64.3
110.7
83.5
217.9
105.4
170.6
145.7
138.3
64.2
110.0
85.3
212.3
109.5
174.8
148.2
140.8
65.1
110.5
84.1
218.6
109.7
177.2
147.8
140.0
66.3
111.6
85.4
217.0
105.5
178.5
149.1
141.5
65.3
113.0
82.9
217.8
112.7
178.7
147.8
140.5
63.0
112.9
82.3
216.8
111.7
176.3
145.5
137.7
59.5
112.4
82.0
214.3
104.3
176.2
146.6
138.6
58.6
111.9
83.0
213.4
112.1
178.0
146.0
137.9
60.9
111.9
82.9
212.9
107.3
178.0
145.1
136.6
61.9
111.7
83.5
208.2
108.8
178.4
146.4
137.9
60.6
112.6
81.7
214.5
103.9
179.5
147.7
139.2
58.3
113.3
81.6
217.2
106.9
181.0
148.4
139.7
57.8
112.2
81.3
216.3
113.7
182.4
148.6
139.6
5.95
6.99
5.67
1.31
118.3
140.0
143.9
122.9
120.2
140.5
144.3
123.8
120.5
141.5
145.3
125.4
119.8
142.4
146.2
126.2
124.0
142.9
147.2
124.4
122.6
142.6
146.7
124.9
122.6
142.5
146.4
125.6
123.6
143.8
148.0
125.8
123.5
145.0
148.3
130.7
124.1
147.9
151.6
131.9
124.0
148.6
153.3
128.3
125.1
148.7
152.9
130.6
124.8
147.7
152.1
128.9
125.2
20.50
4.92
5.94
9.64
4.64
121.4
100.3
158.0
109.7
84.8
120.1
99.8
152.7
110.3
85.5
121.2
100.7
154.0
111.4
87.8
121.9
101.1
154.1
112.8
87.9
122.2
103.5
153.8
112.2
85.2
121.3
103.2
153.0
111.0
83.0
119.3
99.9
153.7
108.0
79.6
120.2
99.3
154.8
109.4
82.9
118.4
96.4
152.3
108.8
78.9
117.8
96.3
151.8
107.9
76.7
118.8
96.7
154.3
108.2
77.4
118.7
95.0
155.6
108.0
76.9
118.5
94.2
155.2
108.4
77.1
118.7
94.0
154.9
109.0
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
Materials
40 Durable goods materials
41
Durable consumer parts
42
Equipment parts
43
Durable materials n.e.c
44
Basic metal materials
118.5
117.4
141.4
138.0
112.0
81.9
216.4
112.6
183.6
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
112.2
113.6
113.3
114.9
116.2
116.1
114.8
116.5
116.5
117.7
118.9
119.5
120.3
120.2
7.53
1.52
1.55
4.46
2.57
112.2
98.7
124.1
112.7
112.1
113.7
105.2
121.8
113.7
113.4
113.4
106.1
123.6
112.4
112.8
115.0
103.8
129.0
114.0
114.4
116.5
104.1
129.7
116.2
115.4
116.5
107.5
128.8
115.4
115.0
115.5
105.7
128.0
114.5
112.8
115.9
106.7
129.0
114.5
118.2
116.9
108.4
128.6
115.7
115.3
118.2
109.5
132.7
116.1
116.4
119.0
111.2
135.6
115.9
118.3
120.2
113.4
135.5
117.3
117.2
121.1
115.1
134.1
118.6
117.9
121.1
51 Energy materials
52 Primary energy
53
Converted fuel materials
11.69
7.57
4.12
103.4
107.2
96.4
101.5
105.5
94.2
101.8
106.5
93.3
104.5
108.1
97.9
103.0
106.9
95.8
102.1
106.7
93.6
101.4
107.4
90.5
100.4
106.2
89.7
100.5
106.7
89.2
100.8
106.5
90.4
99.9
104.8
90.9
98.3
104.4
87.3
98.9
102.8
91.6
98.5
A48
2.13
Domestic Nonfinancial Statistics • January 1987
INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued
Grouping
SIC
code
1977
proportion
1986
1985
1985
avg.
Oct.
Nov.
Dec
Jan.
Feb.
Apr.
May
June
July r
Aug.
Sept.?
Oct
Index (1977 = 100)
MAJOR INDUSTRY
15.79
9.83
5.96
84.21
35.11
49.10
110.0
108.8
111.9
126.4
125.1
127.3
108.8
106.9
111.8
126.3
125.8
126.7
108.8
106.9
111.9
127.8
127.2
128.2
110.2
107.4
114.8
128.2
127.5
128.7
109.8
108.1
112.5
129.4
129.3
129.5
106.8
105.1
109.7
128.7
128.7
128.7
105.4
103.0
109.3
127.2
127.7
126.8
104.2
101.0
109.4
128.7
129.6
128.1
103.1
99.8
108.5
128.2
129.9
127.0
102.6
98.9
108.6
128.3
131.2
126.2
101.8
97.1
109.7
129.2
131.7
127.4
101.1
96.8
108.3
129.5
132.4
127.5
101.6
95.8
111.1
129.5
132.2
127.6
101.8
95.6
112.1
129.5
132.4
127.4
10
11.12
13
14
.50
1.60
7.07
.66
75.0
126.8
106.2
118.3
76.0
122.9
104.4
118.5
78.3
125.8
103.6
118.0
77.3
128.4
104.2
114.6
73.5
130.8
104.9
113.5
77.2
126.5
101.1
116.8
75.9
124.7
99.2
111.6
76.0
124.4
96.2
115.0
72.0
124.0
95.1
112.4
65.9
127.3
93.3
114.5
69.2
120.2
92.4
111.8
122.2
91.2
115.8
120.8
90.6
108.1
90.4
1 Mining and utilities
Mining
2
3
Utilities
4 Manufacturing
Nondurable
5
6
Durable
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals
11
12
13
14
15
Nondurable
manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.96
.62
2.29
2.79
3.15
130.2
100.2
103.2
100.9
127.6
129.4
103.2
107.7
102.1
127.7
131.5
102.8
110.0
103.8
128.9
132.1
100.3
107.7
104.5
131.3
132.0
93.8
107.9
105.5
133.6
132.9
97.0
109.9
102.8
132.6
132.2
93.6
108.0
102.8
132.4
133.1
100.3
111.4
103.1
134.1
133.7
101.6
111.3
102.6
133.2
134.6
97.6
112.6
101.7
137.2
134.3
97.9
113.4
102.5
138.1
135.4
96.9
114.2
102.2
138.9
116.2
103.0
137.5
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
153.9
127.1
86.8
146.9
68.5
154.5
127.3
87.9
149.0
68.2
156.8
128.2
87.6
150.1
68.7
157.6
128.1
88.9
149.4
66.4
160.9
131.7
94.7
150.2
65.4
156.7
132.0
90.1
151.1
64.8
157.8
130.2
88.6
147.8
62.7
161.6
132.8
91.3
146.8
61.5
161.9
131.5
95.7
150.1
59.5
164.0
134.2
91.8
152.2
57.9
165.4
134.1
90.6
155.5
61.9
165.0
134.4
94.5
156.0
62.0
164.0
134.7
93.3
156.4
60.2
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, stone p r o d u c t s . . . .
24
25
32
2.30
1.27
2.72
113.4
139.7
115.5
116.2
140.0
116.1
115.0
142.2
116.7
116.1
140.5
118.2
120.5
141.2
120.0
120.3
143.2
119.3
120.7
142.9
120.0
121.3
145.9
121.6
121.6
146.2
120.2
120.9
147.1
120.8
120.8
149.5
119.6
123.1
147.8
119.6
147.0
121.4
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
80.5
70.4
107.3
145.3
168.4
81.9
72.4
107.9
141.7
164.2
82.9
73.9
107.6
144.8
166.9
81.7
71.6
108.2
146.2
168.7
82.4
72.2
109.2
144.9
166.1
80.3
69.5
108.5
143.9
164.8
76.3
64.3
107.6
141.7
165.2
78.1
65.6
108.2
140.8
166.8
74.8
60.2
106.5
141.3
166.0
71.4
58.3
106.6
140.4
163.2
73.6
61.7
105.7
142.6
166.8
73.4
60.8
105.8
143.0
167.1
72.8
59.2
105.9
141.3
166.8
106.0
142.0
167.3
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
121.4
111.5
123.3
111.4
124.8
112.6
124.0
111.4
128.2
116.5
127.5
116.4
122.6
108.1
126.2
112.6
124.1
108.7
125.1
110.6
125.6
111.2
125.1
108.2
127.8
112.3
125.2
107.2
372-6.9
38
39
3.87
2.66
1.46
134.9
139.1
96.1
139.4
138.4
95.0
141.3
139.9
94.8
141.0
140.4
96.6
143.9
141.5
100.9
142.6
141.9
100.9
142.4
142.0
99.0
144.8
142.4
99.2
145.0
140.3
101.0
144.7
139.9
98.3
145.2
141.7
97.5
148.0
142.1
97.8
148.8
140.6
97.0
149.7
139.4
4.17
119.7
119.4
120.1
122.4
119.7
119.5
119.8
121.6
121.7
123.1
125.4
122.4
126.0
24
25
26
27
28
Utilities
34 Electric
134.8
164.5
92.4
73.7
Gross value (billions of 1978 dollars, annual rates)
MAJOR MARKET
35 Products, total
517.5 1,650.9 1,658.6 1,680.6 1,676.6 1,702.1 1,686.5 1,660.8 1,686.3 1,687.6 1,676.7 1,669.9 1,682.2 1,685.1 1,684.9
36 Final
37
Consumer goods .
38
Equipment
39 Intermediate
405.7 1,282.3 1,284.6 1,304.9 1,302.5 1,321.2 1,310.3 1,282.5 1,307.0 1,301.1 1,289.5 1,282.7 1,293.7 1,299.3 1,293.5
272.7 820.7 822.1 838.1 841.7 850.7 845.3 832.0 852.3 852.4 843.8 842.3 848.2 846.1 839.9
133.0 461.7 462.5 466.8 460.8 470.5 465.1 450.4 454.7 448.7 445.7 440.4 445.5 453.2 453.7
111.9 368.6 374.0 375.7 374.1 380.8 376.2 378.3 379.3 386.4 387.2 387.1 388.5 385.8 391.4
A 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
A49
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1985
Item
1983
1984
1986
1985
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
Private residential real estate activity (thousands of units)
N E W UNITS
1 Permits authorized
2
1-family
3
2-or-more-family
1,605
902
703
1,682
922
759
1,733
957
777
1,839
963
876
1,861
1,060
801
1,808
1,033
775
1,834
1,043
791
1,885
1,139
746
1,788
1,092
696
1,792
1,121
671
1,759
1,093
666
1,673
1,039
634
1,603
1,047
556
4 Started
5
1-family
6
2-or-more-family
1,703
1,067
635
1,749
1,084
665
1,742
1,072
669
1,882
1,098
784
2,034
1,335
699
2,001
1,202
799
1,960
1,221
739
2,019
1,242
777
1,853
1,241
612
1,852
1,230
622
1,782
1,137
645
1,795
1,186
609
1,652
1,100
552
7 Under construction, end of period 1
8
1-family
9
2-or-more-family
1,003
524
479
1,051
556
494
1,063
539
524
1,088
561
528
1,094
571
522
1,110
581
529
1,099
574
526
1,135
586
549
1,132
597
534
1,151
612
539
1,157
623
533
1,164
629
535
1,155
626
529
1,390
924
466
1,652
1,025
627
1,703
1,072
631
1,762
1,141
621
1,778
1,075
703
1,725
1,038
687
1,806
1,153
653
1,693
1,127
566
1,829
1,140
689
1,620
1,060
560
1,761
1,067
694
1,769
1,132
637
1,730
1,112
618
13 Mobile homes shipped
296
296
284
285
280
266
240
249
239
226
236
232
244
Merchant builder activity in 1-family units
14 Number sold
15 Number for sale, end of period 1
622
304
639
358
688
350
729
349
735
352
741
352
924
338
880
336
787
336
722'
34(K
695
349
624
354
690
357
10 Completed
11
1-family
12 2-or-more-family
Price (thousands of dollars)2
Median
16
Units sold
Average
17
Units sold
75.5
80.0
84.3
87.9
86.6
89.7
88.7
92.5
92.1
91.2
93.5
91.6
91.7
89.9
97.5
101.0
106.1
104.1
106.6
108.0
110.3
114.6
lio.y
116.3
113.8
114.1
2,719
2,868
3,217
3,520
3,300
3,270
3,200
3,570
3,450
3,390
3,470
3,610
3,770
69.8
82.5
72.3
85.9
75.4
90.6
75.5
91.8
77.1
93.0
77.4
93.1
79.8
96.8
80.2
98.1
83.2
101.7
82.6
102.1
79.9
99.2
82.0
100.3
79.4
96.8
EXISTING UNITS ( 1 - f a m i l y )
18 Number sold
Price of units sold (thousands of dollars)2
19 Median
20 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
77
73
24
7,5
7.6
77
28
Private
Residential
Nonresidential, total
Buildings
Industrial
Commercial
Other
Public utilities and other
79 Public
30
Military
31
Highway
Conservation and development
37
Other
33
279,240 327,209 355,570 365,554 373,378 373,947 368,027 373,904 374,483 375,397
376,613 380,428 385,656
228,527 271,973 292,792 300,619 305,366 305,682 298,868 303,320 302,573 304,567
126,553 155,148 158,818 161,786 163,413 164,713 165,645 170,520 172,491 174,478
101,974 116,825 133,974 138,833 141,953 140,969 133,223 132,800 130,082 130,089
304,241 307,511 309,113
174,263 175,168 176,712
129,978 132,343 132,401
12,863
35,789
11,838
41,484
13,746
48,100
12,547
42,432
15,769
59,626
12,619
45,960
16,546
63,863
12,487
45,937
15,783
65,222
12,781
48,167
16,381
63,494
13,065
48,029
13,354
60,716
13,131
46.022
14,557
59,763
13,006
45,474
13,658
57,368
13,131
45,925
13,027
57,443
13,263
46,356
12,866
58,077
13,296
45,739
12,591
60,050
13,394
46,308
13,485
58,839
14,707
45,370
50,715
2,544
14,143
4,820
29,208
55,232
2,839
16,343
4,654
31,396
62,777
3,283
19,998
4,952
34,544
64,935
3,539
21,017
4,958
35,421
68,013
3,407
22,129
5,614
36,863
68,264
3,974
22,273
4,372
37,645
69,159
3,673
22,673
4,598
38,215
70,583
3,725
23,155
4,947
38,756
71,910
3,637
23,240
4,729
40,304
70,830
3,761
22,001
4,657
40,411
72,373
3,768
21,771
4,371
42,463
72,917
4,021
21,843
4,365
42,688
76,543
4,285
21,641
5,022
45,595
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 16,000jurisdictions beginning
with 1978.
A50
2.15
Domestic Nonfinancial Statistics • January 1987
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
Change from 1 month earlier
Index
level
Oct.
Item
1985
1986
Oct.
Oct.
1985
1986
Dec.
r
Mar.
June
1986
(1967
= 100) 1
1986
Sept/
June
r
July
Aug.
Sept.
Oct.
CONSUMER PRICES 2
1
All items
3.2
1.5
5.3
-1.9
1.5
2.2
.5
.0
.2
.3
.2
330.5
2
3
4
5
6
Food
Energy items
All items less food and energy
Commodities
Services
1.8
.1
4.2
2.0
5.5
4.5
-18.4
4.0
1.3
5.5
5.9
3.3
5.4
3.6
6.5
-1.4
-34.2
4.1
.3
6.5
3.4
-12.5
3.1
-.5
5.2
9.4
-19.5
3.7
3.1
4.1
.1
2.3
.3
.1
.4
.9
-4.1
.4
.2
.4
.9
-1.9
.3
.3
.3
.4
.7
.3
.2
.3
.3
-2.2
.4
.2
.5
323.7
348.6
331.6
265.5
403.7
1.1
-1.1
-3.6
3.0
2.6
-1.4
5.5
-36.5
2.9
2.2
9.2
16.0
20.7
4.4
5.6
-12.5
-8.1
-66.9
2.5
.7
.4
5.9
-22.3
2.0
2.3
.7
13.0
-36.9
2.2
2.2
.1
.0
.1
.2
.2
-.5
1.9
-12.7
.2
.1
.3
1.3
-1.5
.1
.1
.4
-.2
3.7
.2
.4
.3
.9
-4.3
.8
.5
290.5
282.9
454.9
262.4
310.1
-.5
.0
-4.2
.1
2.9
.0
-11.8
-1.0
-5.3
-1.3
-.8
2.0
.0
.0
-.6
.2
-.2
.0
.5
.3
-.3
.1
310.4
304.9
-8.3
-5.6
-4.5
4.1
-27.4
-1.7
47.0
-4.0
1.5
-24.7
-51.3
-.2
1.6
-29.1
7.0
20.1
-13.3
-18.1
-.7
-1.2
1.2
2.9
-4.5
.0
2.5
-2.6
-5.3
-.8
3.7
.5
2.6
-.9
1.7
233.7
539.2
242.3
PRODUCER PRICES
7
8
9
10
11
Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment
12
13
Intermediate materials 3
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.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
2.16
GROSS N A T I O N A L PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1983
Q3
Q4
Ql
Q2
GROSS N A T I O N A L PRODUCT
1 Total
3,405.7
3,765.0
3,998.1
4,030.5
4,087.7
4,149.2
4,175.6
By source
2 Personal consumption expenditures
3
Durable goods
4
Nondurable goods
5
Services
2,234.5
289.1
816.7
1,128.7
2,428.2
331.2
870.1
1,227.0
2,600.5
359.3
905.1
1,336.1
2,627.1
373.3
907.4
1,346.4
2,667.9
362.0
922.6
1,383.2
2,697.9
360.8
929.7
1,407.4
2,732.0
373.9
928.4
1,429.8
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
502.3
509.4
356.9
124.0
232.8
152.5
662.1
598.0
416.5
139.3
277.3
181.4
661.1
650.0
458.2
154.8
303.4
191.8
657.4
654.3
459.8
155.0
304.7
194.5
669.5
672.6
474.0
157.2
316.8
198.6
708.3
664.4
459.2
154.6
304.6
205.3
687.3
672.8
457.5
141.5
316.0
215.3
12
13
-7.1
.4
64.1
56.6
11.1
12.2
3.1
3.2
-3.1
16.7
43.8
41.2
14.5
10.5
Change in business inventories
Nonfarm
14 Net exports of goods and services
15
Exports
16
Imports
352.5
358.7
-58.7
382.7
441.4
-78.9
369.8
448.6
-83.7
362.3
446.0
-105.3
368.2
473.6
-93.7
374.8
468.5
-104.5
363.0
467.5
17 Government purchases of goods and services...
18
Federal
19
State and local
675.0
283.5
391.5
733.4
311.3
422.2
815.4
354.1
461.3
829.7
360.9
468.8
855.6
380.9
474.7
836.7
355.7
480.9
860.8
367.6
493.3
3,412.8
1,396.1
573.3
822.7
1,682.5
327.1
3,700.9
1,576.7
675.0
901.7
1,813.1
375.1
3,987.0
1,630.2
700.2
930.0
1,959.8
408.1
4,027.4
1.642.8
710.3
932.5
1.971.9
415.9
4,090.8
1,644.1
709.1
935.0
2,025.5
418.1
4,105.4
1,669.0
710.6
958.4
2,057.7
422.6
4,161.2
1,661.6
703.1
958.5
2,087.4
426.7
-7.1
64.1
39.2
24.9
11.1
6.6
-3.1
9.5
-12.7
14.5
4.5
3.1
-2.7
5.8
43.8
-6.1
3,279.1
3,489.9
3,585.2
3,603.8
30 Total
2,719.5
3,032.0
3,222.3
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises...
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
2,020.7
1.676.2
324.3
1.352.3
344.5
170.9
173.6
2,214.7
1,837.0
346.2
1,490.6
377.7
193.1
184.5
2,368.2
1.965.8
372.2
1.593.9
402.4
205.5
196.9
190.9
178.4
12.4
236.9
205.3
31.5
254.4
225.2
29.2
By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
26 Change in business inventories
27
Durable goods
28
Nondurable goods
29 MEMO: Total GNP in 1982 dollars
-6.1
-1.0
28.6
- . 1
15.3
14.6
3,622.3
3,655.9
3,661.4
3,243.4
3,287.3
3.340.7
3,376.4
2,380.9
1,976.0
374.2
404.9
206.1
198.8
2,423.6
2,012.8
381.6
1,631.1
410.9
209.1
201.7
2,461.5
2,044.1
387.2
1.656.8
417.4
212.9
204.5
2.480.2
2,058.8
392.5
1.666.3
421.3
214.1
207.3
249.3
227.7
21.6
262.1
232.7
29.4
265.3
240.9
24.4
289.1
249.6
39.5
12.8
16.3
296.4
224.3
16.5
55.6
293.1
231.3
10.6
51.3
304.9
297.7
NATIONAL INCOME
38 Proprietors' income 1
39
Business and professional 1
40
Farm 1
41 Rental income of persons 2
1,601.8
13.2
8.3
7.6
7.3
42 Corporate profits 1
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment
213.7
207.6
-10.9
17.0
264.7
235.7
-5.5
34.5
280.7
223.2
296.3
229.2
58.1
61.0
285.6
235.8
-9.4
59.2
46 Net interest
281.0
307.4
311.4
309.7
307.6
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
-.6
6.1
3. For a f t e r - t a x profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A51
A52
2.17
Domestic Nonfinancial Statistics • January 1987
P E R S O N A L INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1986
1985
Account
1985
1984
1983
Q3
Q4
QL
Q2
Q3'
PERSONAL INCOME AND SAVING
1 Total personal income
2,838.6
3,110.2
3,314.5
3,323.2
3,382.9
3,432.6
3,483.3
3,501.6
2 Wage and salary disbursements
3
Commodity-producing industries
Manufacturing
4
Distributive industries
5
6
Service industries
Government and government enterprises
7
1,676.6
523.1
397.4
404.2
425.1
324.3
1,836.8
577.8
439.1
442.2
470.6
346.2
1,966.1
607.7
460.1
469.8
516.4
372.2
1,976.0
608.3
460.7
472.4
521.1
374.2
2,012.8
617.7
467.5
478.9
534.6
381.6
2,044.1
622.0
470.5
485.2
549.6
387.2
2,058.8
620.8
468.8
484.3
561.3
392.5
2,081.1
621.7
469.9
488.2
572.8
398.4
173.6
190.9
178.4
12.4
13.2
68.7
393.1
442.6
221.7
184.5
236.9
205.3
31.5
8.3
74.7
446.9
455.6
235.7
196.9
254.4
225.2
29.2
7.6
76.4
476.2
487.1
253.4
198.8
249.3
227.7
21.6
7.3
76.3
475.2
491.1
256.5
201.7
262.1
232.7
29.4
8.3
76.7
480.6
493.6
256.8
204.5
265.3
240.9
24.4
12.8
79.1
480.8
504.7
263.2
207.3
289.1
249.6
39.5
16.3
81.1
480.1
510.1
264.1
210.4
279.5
258.0
21.4
15.9
82.0
475.1
518.4
269.6
8 Other labor income
9 Proprietors' income 1
10 Business and professional 1
11 Farm 1
12 Rental income of persons 2
14 Personal interest income
15 Transfer payments
16 Old-age survivors, disability, and health insurance benefits...
17
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
120.1
133.5
150.2
150.7
152.9
158.6
159.5
160.7
2,838.6
3,110.2
3,314.5
3,323.2
3,382.9
3,432.6
3,483.3
3,501.6
410.5
439.6
486.5
491.2
500.7
497.5
504.8
518.9
20 EQUALS: Disposable personal income
2,428.1
2,670.6
2,828.0
2,832.0
2,882.2
2,935.1
2,978.5
2,982.7
21
LESS: Personal outlays
2,297.4
2,501.9
2,684.7
2,712.4
2,756.4
2,789.4
2,825.5
2,892.3
22 EQUALS: Personal saving
130.6
168.7
143.3
119.6
125.8
145.6
153.1
90.4
13,963.7
9,138.5
9,930.0
5.4
14,721.1
9,475.4
10,421.0
6.3
14,980.9
9,713.0
10,563.0
5.1
15,040.5
9,774.4
10,537.0
4.2
15,079.9
9,790.3
10,577.0
4.4
15,188.0
9,857.1
10,723.0
5.0
15,179.9
9,985.0
10,886.0
5.1
15,249.3
10,119.1
10,796.0
3.0
463.6
573.3
551.5
541.7
524.1
583.2
539.7
520.2
592.2
130.6
65.0
-10.9
674.8
168.7
91.0
-5.5
687.8
143.3
107.3
-.6
679.6
119.6
118.8
6.1
679.2
125.8
106.8
-9.4
714.8
145.6
122.1
16.5
718.7
153.1
112.3
10.6
661.7
90.4
113.5
8.0
242.7
153.9
.0
253.9
161.2
.0
268.2
169.0
.0
270.1
171.2
.0
273.3
173.4
.0
275.3
171.8
.0
278.9
174.4
.0
281.6
176.3
.0
-128.6
-176.0
47.5
-101.5
-170.0
68.5
-136.3
-198.0
61.7
-138.0
-197.5
59.5
-155.1
-217.6
62.5
-131.6
-201.6
70.0
-179.0
-*-238.1
59.0
-141.5
-205.8
64.3
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1982 dollars)
23 Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (percent)
GROSS SAVING
28
29
30
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
Capital consumption
32 Corporate
allowances
34 Wage accruals less disbursements
35 Government surplus, or deficit ( - ) , national income and
product accounts
.0
.0
.0
.0
.0
.0
.0
.0
39 Gross investment
468.8
571.4
545.9
536.2
525.7
579.6
544.3
530.0
40 Gross private domestic
41 Net foreign
502.3
-33.5
662.1
-90.7
661.1
-115.2
657.4
-121.2
669.5
-143.8
708.3
-128.6
687.3
-143.0
674.8
-144.8
5.2
-1.9
-5.5
-5.5
1.6
-3.6
4.6
9.8
38 Capita] grants received by the United States, net
42 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
3.10
A53
U . S . I N T E R N A T I O N A L T R A N S A C T I O N S Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1986
1985
Item credits or debits
1985
1984
1983
Q2
Q4
Q3
Q2"
Ql
-46,605
-106,466
-117,677
-29,416
-30,362
-28,454
-32,275
-33,698
-31,510
-34,038
-31,020
-34,731
-35,753
-67,080
201,820
-268,900
-370
24,841
5,484
-112,522
219,900
-332,422
-1,827
18,751
1,288
-124,439
214,424
-338,863
-2,917
25,188
-525
-30,367
53,875
-84,242
-729
5,449
-311
-31,675
52,498
-84,173
-619
8,262
-421
-37,352
52,727
-90,079
-1,322
9,255
-35
-36,459
53,661
-90,120
-1,066
6,517
-7
-36,023
54,795
-90,818
-704
5,290
753
-3,194
-6,286
-3,621
-8,536
-3,787
-11,196
-881
-2,577
-914
-3,087
-937
-3,307
-954
-2,069
-843
-3,204
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-5,005
-5,523
-2,824
-1,055
-422
-540
-250
-181
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
-1,196
0
-66
-4,434
3,304
-3,130
0
-979
-995
-1,156
-3,858
0
-897
908
-3,869
-356
0
-180
72
-248
-121
0
-264
388
-245
-3,148
0
-189
168
-3,126
-115
0
-274
344
-185
16
0
-104
366
-246
17 Change in U.S. private assets abroad (increase, - ) 3
18 Bank-reported claims
19 Nonbank-reported claims
U.S. purchase of foreign securities, net
20
U.S. direct investments abroad, net 3
21
-43,821
-29,928
-6,513
-7,007
-373
-14,987
-11,127
5,081
-5,082
-3,859
-25,754
-691
1,665
-7,977
-18,752
-1,382
3,450
1,706
-2,325
-4,213
-5,324
4,009
-1,517
-1,664
-6,152
-19,579
-8,485
418
-1,411
-10,101
-12,533
6,333
-2,842
-6,133
-9,891
-17,584
-10,744
n.a.
-1,567
-5,273
7.2 Change in foreign official assets in the United States
(increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligations
Other U.S. government liabilities4
25
26 Other U.S. liabilities reported by U.S. banks
27 Other foreign official assets 5
5,968
6,972
-476
725
545
-1,798
3,037
4,690
13
436
555
-2,657
-1,324
-546
-295
483
522
-1,488
8,486
8,685
136
606
-107
-834
2,577
-81
46
58
2,932
-378
-1,322
-1,976
-171
263
722
-160
2,469
3,256
-177
288
-1,261
363
13,766
13,889
-597
663
350
-539
28 Change in foreign private assets in the United States
(increase, +) 3
79
U.S. bank-reported liabilities
30
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
31
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in the United States, net 3
79,528
50,342
-118
8,721
8,636
11,947
99,730
33,849
4,704
23,059
12,759
25,359
128,430
40,387
-1,172
20,500
50,859
17,856
16,872
606
-1,837
5,123
7,223
5,757
33,088
7,276
589
7,484
11,628
6,111
53,158
20,427
2,232
5,676
22.441
2,382
34,151
8,434
-2,057
7,666
18,686
1,422
32,738
4,983
n.a.
1,391
22,590
3,774
0
11,130
0
27,338
0
23,006
0
6,851
-1,175
0
-1,344
-3,688
0
5,128
3,774
0
10,316
1,216
0
5,976
-1,464
11,130
27,338
23,006
8,026
2,344
1,354
9,100
7,440
-1,196
-3,130
-3,858
-356
-121
-3,148
-115
16
5,243
2,601
-1,807
7,880
2,519
-1,585
2,181
13,103
-8,283
-4,304
-6,599
-1,843
-1,831
-1,002
1,421
-2,609
194
190
64
12
15
28
22
61
1 Balance on current account
~>
3
4
5
6
7
8
9
10
Merchandise trade balance 2
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)
34 Allocation of SDRs
35 Discrepancy
36
37
Statistical discrepancy in recorded data before seasonal
adjustment
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 1987
U . S . FOREIGN T R A D E
Millions of dollars; monthly data are not seasonally adjusted.
1986
1984
1983
Item
1985
Mar.
1
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
May
17,604
258,048
325,726
345,276
31,972
28,762
30,272
31,764
34,121
29,476
28,695
3
-57,562
107,861
-132,129
-13,059
-10,797
-12,842
-12,694
-16,414
-11,871
-11,177
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
17,707
Sept.
217,865
17,431
19,070
Aug.
200,486
18,913
17,965
July
June
2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded
warehouses
Trade balance
213,146
Apr.
17,518
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
1986
Type
1984
1983
1985
Apr.
1 Total
2 Gold stock, including Exchange Stabilization Fund 1
2 3
3
Special drawing rights -
4
Reserve position in International Monetary Fund 2
5
Foreign currencies 4
June
Aug.
July
Sept.
Oct.
33,747
34,934
43,191
46,491
45,260
46,635
47,430
48,161
48,086
47,166
11,121
11,096
11,090
11,089
11,085
11,084
11,084
11,084
11,084
11,143
5,025
5,641
7,293
8,098
8,066
8,213
8,085
8,250
8,295
8,090
11,312
11,541
11,952
12,242
11,789
12,109
12,114
12,017
11,922
11,575
6,289
6,656
12,856
15,062
14,320
15,229
16,147
16,810
16,785
16,358
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
May
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 A S S E T S H E L D AT F E D E R A L R E S E R V E B A N K S
Millions of dollars, end of period
1986
Assets
1984
1983
1985
Apr.
1 Deposits
Assets held in custody
2 U.S. Treasury securities 1
3 Earmarked gold2
July
June
Sept.
Aug.
Oct.
190
267
480
325
253
354
233
227
342
303
117,670
14,414
118,000
14,242
121,004
14,245
132,017
14,160
136,762
14,145
137,820
14,128
144,527
14,131
148,263
14,120
152,275
14,115
156,076
14,110
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 B R A N C H E S OF U.S. B A N K S
Millions of dollars, end of period
A55
Balance Sheet Data 1
1986
Asset account
Mar.
Apr.
May
June
July
Aug.
Sept.?
All foreign countries
1 Total, all currencies
?,
4
5
6
7
8
9
10
Claims on United States
Parent bank
Other banks in United States 2
Nonbanks 2
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers
Nonbank foreigners
477,090
453,656
458,012
459,885
475,158
459,587
467,565
454,886'
461,404
474,562
115,542
82,026
113,393
78,109
13,664
21,620
320,162
95,184
100,397
23,343
101,238
119,713
87,201
13,057
19,455
315,702
91,399
102,960
23,478
97,865
118,524
85,164
12,960
20,400
316,493
91,586
101,743
23,770
99,394
122,487
88,975
12,792
20,720
326,013
95,238
107,141
23,645
99,989
117,627
83,404
13,185
21,038
316,151
90,447
103,851
23,823
98,030
117,680
82,514
14,0^
21,147'"
324,128
98,457
105,570
23,273
96,828
113,383
79,387
13,508'
20,488'
314,153
92,641
103,002
23,561
94,949
117,661
83,779
13,071
20,811
315,583
93,435
102,849
23,720
95,579
116,378
82,297
13,624
20,457
328,635
103,278
107,631
23,376
94,350
1
342,689
96,004
117,668
24,517
107,785
18,859
20,101
22,597
24,868
26,658
25,809
25,757
28,160
29,549
12 Total payable in U.S. dollars
371,508
350,636
336,288
324,129
331,511
322,837
327,639
313,703
318,357
330,215
n Claims on United States
14 Parent bank
15 Other banks in United States 2
16 Nonbanks 2
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
Public borrowers
70
Nonbank foreigners
21
113,436
80,909
247,406
78,431
93,332
17,890
60,977
111,426
77,229
13,500
20,697
228,600
78,746
76,940
17,626
55,288
116,645
85,971
12,454
18,220
209,927
72,689
71,748
17,252
48,238
114,965
83,841
12,261
18,863
199,279
70,910
63,849
17,219
47,301
118,629
87,597
11,891
19,141
202,498
73,109
66,006
16,752
46,631
113,767
82,110
12,272
19,385
198,172
69,684
65,053
17,180
46,255
113,387
81,022
12,887'
19,478'
203,846
75,934
66,673
16,492
44,747
109,172
78,025
12,354'
18,793'
193,901
69,135
64,940
16,667
43,159
113,636
82,261
12,179
19,196
194,643
68,604
64,940
16,788
44,311
112,129
80,748
12,802
18,579
207,378
78,400
68,322
16,417
44,239
10,666
10,610
9,716
9,885
10,384
10,898
10,406
10,630
10,078
10,708
11 Other assets
22 Other assets
27,350'
United Kingdom
23 Total, all currencies
74 Claims on United States
75
Parent bank
Other banks in United States 2
76
Nonbanks 2
77
28 Claims on foreigners
79 Other branches of parent bank
Banks
30
31
Public borrowers
32 Nonbank foreigners
158,732
144,385
148,599
150,975
155,867
152,075
151,593
145,448
145,619
151,596
34,433
29,111
27,675
21,862
1,429
4,384
111,828
37,953
37,443
5,334
31,098
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
33,990
27,881
1,129
4,980
111,468
31,250
38,929
5,833
35,456
34,234
28,058
1,386
4,790
115,485
32,516
41,593
5,642
35,734
34,231
28,001
1,312
4,918
111,823
31,984
39,222
5,427
35,190
31,364
25,106
1,365'
4,893'
113,739
34,670
39,430
5,236
34,403
30,223
24,252
1,369'
4,602'
108,156
31,613
38,393
5,229
32,921
29,839
23,466
1,448
4,925
109,024
31,828
38,048
5,336
33,812
30,880
24,291
2,092
4,497
113,440
34,678
40,332
4,957
33,473
1
119,280
36,565
43,352
5,898
33,465
33 Other assets
34 Total payable in U.S. dollars
Claims on United States
Parent bank
36
Other banks in United States 2
37
Nonbanks 2
38
39 Claims on foreigners
Other branches of parent bank
40
Banks
41
Public borrowers
47
Nonbank foreigners
43
44 Other assets
5,019
4,882
5,225
5,517
6,148
6,021
6,490
7,069
6,756
7,276
126,012
112,809
108,626
105,118
107,364
106,716
104,013
97,641
97,771
102,851
33,756
28,756
88,917
31,838
32,188
4,194
20,697
26,868
21,495
1,363
4,010
82,945
33,607
26,805
4,030
18,503
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
32,746
27,393
1,027
4,326
69,433
25,250
22,106
4,223
17,854
32,959
27,629
1,225
4,105
71,058
26,224
23,310
4,012
17,512
32,872
27,584
1,152
4,136
70,406
26,265
23,134
3,937
17,070
29,944
24,693
1,102'
4,149'
70,697
27,559
22,825
3,777
16,536
28,848
23,888
1,131'
3,829'
65,472
24,258
21,938
3,793
15,483
28,446
22,972
1,194
4,280
66,465
24,657
21,636
3,838
16,334
29,513
23,826
1,848
3,839
70,002
27,151
22,643
3,674
16,534
3,339
2,996
3,059
2,939
3,347
3,438
3,372
3,321
2,860
3,336
138,944
134,238
137,526
143,082
69,721
43,867
11,182'
14,672'
60,162
16,682
27,067
6,534
9,879
73,047
47,694
10,812
14,541
60,167
16,539
27,065
6,675
9,888
71,918
46,635
10,641
14,642
66,620
22,763
27,779
6,434
9,644
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
Parent bank
47
Other banks in United States 2
48
49
Nonbanks 2
50 Claims on foreigners
51
Other branches of parent bank
Banks
57
53 Public borrowers
Nonbank foreigners
54
55 Other assets
56 Total payable in U.S. dollars
I
152,083
146,811
142,055
136,529
137,272
132,122
75,309
48,720
77,296
49,449
11,544
16,303
65,598
17,661
30,246
6,089
11,602
74,864
50,553
11,204
13,107
63,904
19,042
28,192
6,458
10,212
71,735
46,813
10,827
14,095
60,564
19,131
25,129
6,292
10,012
72,755
47,613
10,445
14,697
60,301
18,286
25,809
6,326
9,880
68,710
42,868
10,895
14,947
59,106
15,703
26,290
6,694
10,419
72,868
20,626
36,842
6,093
12,592
3,906
3,917
3,287
4,230
4,216
4,306
4,238
4,355
4,312
4,544
145,641
141,562
136,794
130,438
130,530
125,681
132,353
127,910
130,723
136,615
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.
70,751
44,132
11,71(K
14,909'
63,955
20,636
27,000
6,399
9,920
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 1987
Continued
1986
Mar.
Apr.
May
June
July
Aug.
Sept.?
All foreign countries
57 Total, all currencies
477,090
453,656
458,012
459,885
475,158
459,587
467,565
454,886^
461,404
474,562
58 Negotiable CDs 3
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
n.a.
188,070
81,261
29,453
77,356
37,725
147,583
78,739
18,409
50,435
34,607
155,538
83,914
16,894
54,730
36,066
140,401
74,952
15,744
49,705
33,229
150,390
81,594
14,270
54,526
35,006
144,241
77,484
14,347
52,410
34,683
149,848r
85,126'
16,118
48,604
32,656
141,599'
81,299
14,191'
46,109
31,475
145,488
80,219
14,496
50,773
33,642
151,287
87,927
14,159
49,201
63 To foreigners
64 Other branches of parent bank
65
Banks
66 Official institutions
67
Nonbank foreigners
68 Other liabilities
269,685
90,615
92,889
18,896
68,845
19,335
247,907
93,909
78,203
20,281
55,514
20,441
245,942
89,529
76,814
19,523
60,076
21,925
261,763
90,921
84,800
20,688
65,354
21,655
269,814
93,768
89,608
20,744
65,694
21,725
258,700
90,228
83,251
20,792
64,429
21,640
262,329'
97,717
81,008
20,480
63,124'
20,705
259,133'
91,144
82,854'
20,608
64,527
21,498'
262,978
91,307
85,239
20,637
65,795
21,463
269,442
102,245
81,967
20,089
65,141
20,191
69 Total payable in U.S. dollars
388,291
367,145
353,470
341,550
347,587
340,176
346,428
330,183'
333,581
349,254
70 Negotiable CDs 3
71 To United States
72
Parent bank
73 Other banks in United States
74
Nonbanks
n.a.
184,305
79,035
28,936
76,334
35,227
143,571
76,254
17,935
49,382
31,063
150,161
80,888
16,264
53,009
32,418
134,204
71,616
14,953
47,635
29,912
143,601
78,061
13,477
52,063
31,513
137,694
73,950
13,575
50,169
31,076
142,730
81,066
15,323
46,341
28,970
133,908'
77,048
13,507'
43,353
28,091
137,805
76,046
13,709
48,050
30,560
143,633
83,790
13,179
46,664
75 To foreigners
76 Other branches of parent bank
77
Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities
194,139
73,522
57,022
13,855
51,260
9,847
178,260
77,770
45,123
15,773
39,594
10,087
163,361
70,943
37,323
14,354
40,741
8,885
166,329
70,465
37,470
14,719
43,675
8,599
166,229
71,841
37,240
14,746
42,402
7,845
162,528
69,978
36,335
14,049
42,166
8,441
163,943
75,805
33,745
13,772
40,621
8,679
158,314'
68,065
34,827'
14,091
41,331
8,991'
158,931
66,878
36,460
14,125
41,468
8,754
167,411
77,464
35,372
13,677
40,898
7,650
United Kingdom
158,732
144,385
148,599
150,975
155,867
152,075
151,593
145,448
145,619
151,596
82 Negotiable CDs 3
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
n.a.
55,799
14,021
11,328
30,450
34,413
25,250
14,651
3,125
7,474
31,260
29,422
19,330
2,974
7,118
32,217
22,945
13,724
2,793
6,428
29,898
28,450
17,231
1,966
9,253
31,734
27,505
16,624
2,175
8,706
31,396
26,270
15,892
1,997
8,381
29,295
22,671
13,300
1,999
7,372
28,279
22,831
14,188
2,148
6,495
30,352
26,540
17,399
2,062
7,079
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
95,847
19,038
41,624
10,151
25,034
7,086
77,424
21,631
30,436
10,154
15,203
7,298
78,525
23,389
28,581
9,676
16,879
9,392
86,053
24,733
33,301
9,750
18,269
9,760
87,773
25,379
34,294
9,757
18,343
9,746
83,067
23,838
31,584
9,548
18,097
9,769
84,362
27,029
30,505
9,543
17,285
9,565
83,707
25,106
31,678
9,074
17,849
9,775
84,880
24,962
32,250
9,330
18,338
9,629
85,680
28,272
31,190
8,652
17,566
9,024
81 Total, all currencies
131,167
117,497
112,697
108,420
110,378
109,337
108,375
101,095
101,397
108,249
94 Negotiable CDs 3
95 To United States
%
Parent bank
97 Other banks in United States
98
Nonbanks
n.a.
54,691
13,839
11,044
29,808
33,070
24,105
14,339
2,980
6,786
29,337
27,756
18,956
2,826
5,974
30,042
21,070
13,405
2,596
5,069
27,978
26,411
16,867
1,774
7,770
29,542
25,490
16,233
1,944
7,313
29,135
24,214
15,331
1,817
7,066
27,015
20,065
12,648
1,738
5,679
26,114
20,403
13,707
1,879
4,817
28,490
24,039
16,984
1,735
5,320
99 To foreigners
100 Other branches of parent bank
101
Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
73,279
15,403
29,320
8,279
20,277
3,197
56,923
18,294
18,356
8,871
11,402
3,399
51,980
18,493
14,344
7,661
11,482
3,624
53,219
19,068
14,731
7,839
11,581
4,089
52,262
19,297
14,125
7,449
11,391
3,727
50,441
18,043
14,114
6,953
11,331
3,864
51,056
20,455
13,073
6,914
10,614
3,970
49,932
17,868
14,251
6,658
11,155
4,083
50,855
17,790
15,056
6,724
11,285
4,025
52,706
21,305
14,491
6,015
10,895
3,014
134,238
93 Total payable in U.S. dollars
Bahamas and Caymans
105 Total, all currencies
152,083
146,811
142,055
136,529
137,272
132,122
138,944
137,526
143,082
106 Negotiable CDs 3
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
n.a.
111,299
50,980
16,057
44,262
615
102,955
47,162
13,938
41,855
610
103,813
44,811
12,778
46,224
1,132
97,686
43,834
11,624
42,228
629
98,621
43,662
11,014
43,945
634
94,128
40,757
10,738
42,633
567
98,897
47,014
12,868
39,015
565
96,636'
47,862
11,131'
37,643
470
99,585
45,072
11,297
43,216
527
102,018
49,981
10,992
41,045
38,445
14,936
11,876
1,919
11,274
2,339
40,320
16,782
12,405
2,054
9,079
2,921
35,053
14,075
10,669
1,776
8,533
2,579
35,646
13,198
10,340
1,759
10,349
2,065
35,901
14,077
10,788
2,176
8,860
2,121
35,139
13,731
10,318
2,144
8,946
2,221
37,340
15,882
9,991
2,427
9,040
2,140
34,827'
13,561
9,636'
2,468
9,162
2,210
35,216
13,368
10,216
2,386
9,246
2,255
38,441
15,918
10,152
2,834
9,537
2,096
148,278
143,582
138,322
132,308
132,966
127,918
134,606
130,075
133,256
138,733
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
S E L E C T E D U . S . LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1986'
Item
1984
1985'
Mar.
1 Total
2
3
4
5
6
7
8
9
10
11
12
1
By type
Liabilities reported by banks in the United States 2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
May
June
July
Aug.
Sept.P
180,552
178,356
180,538
188,914
190,159
194,562
198,784
203,364
209,447
26,089
59,976
26,734
53,252
25,479
55,933
27,028
59,547
24,911
63,614
26,142
65,790
25,143
70,721
25,482
74,766
29,342
75,095
69,019
5,800
19,668
77,108
3,550
17,712
78,483
2,750
17,893
82,345
2,300
17,694
82,501
1,800
17,333
84,113
1,800
16,717
85,561
1,300
16,059
85,622
1,300
16.194
87,570
1,300
16,139
69,776
1,528
8,561
93,954
1,264
5,469
74,418
1,314
11,141
86,459
1,824
3,200
72,435
1.445
10.425
90,882
1,846
3,505
76,354
1,711
10,785
94,653
1,833
3,578
76,405
1,502
10,595
96,487
1,718
3,452
79,641
1,529
11,046
97,359
1,717
3,270
81,524
1,627
11,242
100,070
1,525
2,7%
83,874
1,535
10,801
102,362
1,958
2,833
86,979
1,626
10,351
105,717
1,864
2,909
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.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
LIABILITIES TO A N D CLAIMS O N FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1985
Item
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.
4,844
7,707
4,251
3,456
676
5,219
7,231
2,731
4,501
1,059
1986
1984
8,586
11,984
4,998
6,986
569
12,982
15,233
8,540
6,693
328
Dec.
15,368
16,161
8,304
7,857
580
Mar.
21.364
19,736
11,318
8,418
1,426
June
24,137
21,584
11,912
9,672
1,385
NOTE. Data on claims exclude foreign currencies held by U.S. monetary
authorities,
A58
3.17
International Statistics • January 1987
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States
Millions of dollars, end of period
1986
Holder and type of liability
1983
1984
1985
Mar/
Apr.
May
June''
July
Aug.
Sept.?
1
All foreigners
369,607
407,306
435,726'
441,004
443,456
444,528
457,350
469,720'
486,519
504,685
2
3
4
5
6
Banks' own liabilities
Demand deposits
Time deposits 1
Other 2
Own foreign offices 3
279,087
17,470
90,632
25,874
145,111
306,898
19,571
110,413
26,268
150,646
341,070
21,107
117,278
29,305
173,381
344,449
20,208
116,325
32,212
175,705
346,469
19,751
114,209
33,220
179,289
342,074
19,651
114,055'
31,686'
176,683
345,663
21,332
115,246
31,712
177,373
342,267'
19,607
117,010
30,650'
174,999
355,009
20,281
122,325
33,026
179,378
371,601
21,384
126,033
36,621
187,563
90,520
68,669
100,408
76,368
94,656'
69,133'
96,555
73,044
96,987
74,631
102,454
80,192
111,687
82,701
127,453
86,789
131,511
89,586
133,085
90,467
17,467
4,385
18,747
5,293
17,964
7,558'
15,329
8,182
13,776
8,580
13,917
8,346
14,729
14,257
16,132
24,532
16,288
25,637
16,231
26,387
Banks' custody liabilities4
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
Other
10
7
8
9
11
Nonmonetary international and regional
organizations7
5,957
4,454
5,821
5,223
3,495
4,519
3,441
3,974
5,253
3,038
12
13
14
15
Banks' own liabilities
Demand deposits
Time deposits 1
Other 2
4,632
297
3,584
750
2,014
254
1,267
493
2,621
85
2,067
469
1,404
102
391
911
1,749
138
681
931
2,388
99
1,109
1,179
891
79
551
262
1,857
156
1,209
492
4,090
165
3,233
691
1,721
180
1,243
299
1,325
463
2,440
916
3,200
1,736
3,820
2,311
1,746
768
2,131
1,282
2,550
1,619
2,118
991
1,163
129
1,137
218
862
0
1,524
0
1,464
0
1,508
0
970
7
849
0
918
13
1,126
0
1,033
1
1,099
0
Banks' custody liabilities4
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 6
19
Other
16
17
18
20
Official institutions8
79,876
86,065
79,985
81,412
86,576
88,526
91,932
95,863'
100,247
104,439
21
22
23
24
Banks' own liabilities
Demand deposits
Time deposits 1
Other 2
19,427
1,837
7,318
10,272
19,039
1,823
9,374
7,842
20,835
2,077
10,949
7,809
21,726
1,917
10,259
9,550
23,927
1,832
9.368
12,728
22,018
1,810
9,850
10,358
22,928
2,131
10,347
10,450
22,044'
1,609
10,116
10,319'
22,710
1,582
9,892
11,236
26,619
1,893
10,924
13,802
60,448
54,341
67,026
59,976
59,150
53,252
59,686
55,933
62,648
59,547
66,508
63,614
69,004
65,790
73,820
70,721
77,538
74,766
77,819
75,095
6,082
25
6,966
84
5,824
75
3,585
168
2,916
185
2,754
139
2,996
218
2,892
207
2,624
148
2,524
199
226,887
248,893
275,589'
279,364
277,856
275,047'
284,637
290,397'
299,771
315,527
205,347
60,236
8,759
37,439
14,038
145,111
225,368
74,722
10,556
47,095
17,071
150,646
252,723
79,341
10,271
49,510
19,561
173,381
255,941
80,236
9,704
50,142
20,390
175,705
254,617
75,328
8,689
48,484
18,155
179,289
251,126'
74,444'
9,036
46,780'
18,627
176,682
255,673
78,300
10,277
48,480
19,544
177,373
251,779
76,780'
9,180
49,418
18,181
174,999
260,953
81,576
9,307
52,811
19,458
179,378
275,907
88,344
9,306
58,157
20,881
187,563
21,540
10,178
23,525
11,448
22,866'
9,832'
23,423
10,131
23,239
9,914
23,922'
10,841
28,964
10,688
38,618
10,934
38,818
10,543
39,620
10,635
7,485
3,877
7,236
4,841
6,040
6,994
5,752
7,540
5,423
7,901
5,451
7,629'
5,448
12,828
5,585
22,099
5,526
22,749
5,526
23,458
Banks' custody liabilities4
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
Other
28
25
26
27
9
29
Banks
30
31
32
33
34
35
Banks' own liabilities
Unaffiliated foreign banks
Demand deposits
Time deposits 1
Other 2
Own foreign offices 3
Banks' custody liabilities4
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 6
39
Other
36
37
38
40
Other foreigners
56,887
67,894
74,331'
75,005
75,530
76,436'
77,339
79,485
81,248
81,682
41
42
43
44
Banks' own liabilities
Demand deposits
Time deposits
Other 2
49,680
6,577
42,290
813
60,477
6,938
52,678
861
64,892
8,673
54,752
1,467
65,379
8,484
55,533
1,361
66,176
9,093
55,677
1,406
66,543'
8,705
56,316
1,521'
66,170
8,845
55,869
1,456
66,587
8,663
56,267
1,657
67,256
9,227
56,388
1,641
67,354
10,005
55,710
1,639
7,207
3,686
7,417
4,029
9,439'
4,314'
9,626
4,669
9,354
4,401
9,893'
4,454
11,169
4,604
12,898
4,143
13,992
4,149
14,328
4,519
3,038
483
3,021
367
4,636
489'
4,483
473
4,465
487
4,862
577'
5,367
1,198
6,529
2,226
7,105
2,738
7,081
2,729
10,346
10,476
9,845
6,603
6,286
6,269
6,419
6,492
6,569
6,543
Banks' custody liabilities4
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 6
48
Other
45
46
47
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
1986
Area and country
1983
1984
1985
Mar.
Apr.
May
June
July
Aug.
Sept.P
1 Total
369,607
407,306
435,726'
441,004'
443,456
444,528
457,350
469,720'
486,519
504,685
2 Foreign countries
363,649
402,852
429,905'
435,781'
439,961
440,009
453,909'
465,745'
481,267
501,647
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
153,145
615
4,114
438
418
12,701
3.358
699
10,762
4.731
1,548
597
2,082
1,676
31,740
584
68,671
602
7,192
79
537
164,114'
693
5,243'
513
496
15,541'
4,835
666'
9,667
4,212
948
652
2,114'
1,422
29,02C
429
76,728
673
9,635
105
523
157,306'
91(K
5,031'
536
354
15,906
5,691
536'
7,215
4,334
469
705
1,774'
1,547
26,864'
383
78,585
535
5,293'
61
578'
165,193
931
5,737
752
619
19,322
6,718
559
6,553
4,320
731
674
1,919
1,313
27,247
363
81,983
547
4,233
38
634
165,795'
897
5,425
523
514
19,423
4,964
552
7,875
4,183
850
796'
1,879
1,299
26,848
434
83,885
556
4,165
34
693
166,382
1,013
5,224
519
484
19,862
4,639
657
8,918
4,224
710
795
2,069
1,118
27,812
586
82,314
661
3,997
89
690
163,016'
988
5,343
560'
449
20,129
5,646
604
8,828
4,682
497
711
1,894
1,267'
28,455
310
78,193
542
3,366
48
506
166,149
1,035
5,114
643
365
21,470
5,291
570
9,269
4,495
542
791
1,979
944
29,065
285
79,947
482
3,277
32
553
173,732
1,106
6,132
483
407
21,339
5,361
623
8,820
4,952
575
757
2,083
1,295
29,209
448
86,209
561
2,729
84
562
3 Europe
4
Austria
5
Belgium-Luxembourg
6 Denmark
Finland
7
8 France
9 Germany
10 Greece
11 Italy
Netherlands
1?
13 Norway
14 Portugal
Spain
Is)
16 Sweden
17
Switzerland
18 Turkey
19
United Kingdom
20
Yugoslavia
Other
Western Europe 1
21
7.7. U.S.S.R
Other Eastern Europe 2
23
16,026
16,059
17,427'
22,498'
20,450
21,257
22,926
22,359
23,933
24,150
25 Latin America and Caribbean
76
Argentina
?7
Bahamas
78
Bermuda
79
Brazil
30
British West Indies
31
Chile
3?
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39 Panama
Peru
40
41
Uruguay
47
Venezuela
Other Latin America and Caribbean
43
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
153,381
4,394
56.897
2,370
5,275
36,773
2,001
2,514
10
1,092
896
183
12,303
4,220
6,951
1,266
1,394
10,545
4,297
167,856'
6,032'
57,657
2,765
5,373'
42,674'
2,049'
3,104'
11
1,239'
1,071
122
14,060'
4,875
7,514'
1,167'
1,552'
11,922'
4,668
165,074'
5,158'
55,791
2,324
6,102'
44,180'
2,094'
3,078'
6
1,209
1,126
144
13,004'
4,561
7,306'
1,107'
1,570'
11,672'
4,641
164,801
5,627
57,865
2,270
5,788
41,354
2,147
3,101
7
1,199
1,128
173
13,126
4,859
6,960
1,116
1,646
11,727
4,708
161,405'
6,075
53,680
2,016
5,542
42,116'
2,223
3,053
7
1,166
1,097
201
13,153
4,798
7,042
1,132
1,703
11,712
4,689
169,650
6,229
60,081
2,513
5,185
43,278
2,270
3,419
8
1,262
1,108
185
13,633
4,358
6,686
1,254
1,664
11,734
4,783
181,737'
6,336
60,764
2,201
5,134
55,552
2,227
3,334
7
1,196
1,123
184
12,985
4,382
6,639
1,158
1,687
12,058
4,770
187,781
6,096
67,096
2,195
5,179
55,614
2,139
3,315
8
1,232
1,140
177
13,610
4,383
6,391
1,149
1,636
11,668
4,754
196,128
6,069
69,119
2,199
5,359
60,918
2,426
3,373
75
1,260
1,129
187
13,138
4,765
6,416
1,253
1,589
11,780
5,073
44 Asia
China
4S
Mainland
46
Taiwan
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
5?, Korea
53 Philippines
Thailand
54
55
Middle-East oil-exporting countries 3
Other Asia
56
58,570
71,187
72,280'
82,656'
81,682
83,817
86,977
91,669
96,022
100,055
1,550
11,027
8,757
574
1,787
1,490
28,279
1,337
1,051
993
14,418
10,419
973
12,687
8,745
577
1,758
1,671
29,689
1,336
1,331
1,155
14,537'
9,355'
1,469
13,683
8,656
695
1,416
1,725
31,325
1,414
1,306
1,068
14,581
9,638
1,795
14,331
8,934
562
1,572'
1,731
36,286
1,392
1,363
1,104
12,739'
9,861
1,185
15,608
9,026
685
1,474
1,686
38,221
1,251
1,458
1,080
13,227
11,121
1,947
16,132
9,339
651
1,611
2,109
39,955
1,282
1,400
1,100
13,047
11,481
24 Canada
249
4,051
6,657
464
997
1,722
18,079
1,648
1,234
747
12,976
9,748
1,153
4,990
6,581
507
1,033
1,268
21,640
1,730
1,383
1,257
16,804
12,841
1,607
7,786
8,067
712'
1,466
1,601'
23,077
1,665
1,140
1,358
14,523
9,276
1,347
10,838'
8,707'
928'
2,107
1,458'
28,274
1,551
978
1,104'
15,384
9,980
57 Africa
Egypt
58
59
Morocco
South Africa
60
61
Zaire
Oil-exporting countries 4
62
Other Africa
63
2,827
671
84
449
87
620
917
3,396
647
118
328
153
1,189
961
4,883
1,363
163
388
163
1,494
1,312
4,260
870
91
465
95
1,601
1,137
4,173
960
85
386
90
1,442
1,210
4,227
910
92
414
105
1,490
1,216
4,291
1,079
87
414
92
1,463
1,156
4,041
820
93
609
65
1,368
1,086
4,227
1,088
82
438
60
1,371
1,189
4,156
843
91
328
80
1,572
1,244
64 Other countries
65
Australia
All other
66
8,067
7,857
210
5,684
5,300
384
3,347
2,779
568
3,987
3,237
750
3,662
3,058
604
3,507
2,744
763
3,682
2,943
739
2,924
2,173
751
3,155
2,459
696
3,426
2,786
640
67 Nonmonetary international and regional
organizations
68
International
69
Latin American regional
Other regional 5
70
5,957
5,273
419
265
4,454
3,747
587
120
5,821
4,806
894
121
5,223
4,139
916
168
3,495
2,512
823
160
4,519
3,669
748
102
3,441
2,471
845
126
3,974
2,714
922
338
5,253
4,147
916
190
3,038
1,759
972
307
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 1987
B A N K S ' OWN CLAIMS O N FOREIGNERS Reported by Banks in the United States
Payable in U . S . Dollars
Millions of dollars, end of period
1986
Area and country
1983
1984
1985
Mar.
Apr.
May
June
July
Aug.
Sept.P
1 Total
391,312
400,162
401,608'
394,702'
401,109
394,667'
403,843
403,494
403,729
417,778
2 Foreign countries
391,148
399,363
400,577'
394,219'
400,607
394,259'
403,387
403,002
403,309
417,577
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
99,014
433
4,794
648
898
9,157
1,306
817
9,119
1,356
675
1,243
2,884
2,230
2,123
1,130
56,185
1,886
596
142
1,389
106,413'
598
5,772
706
823
9,124
1,267
991
8,848
1,258
706
1,058
1,908
2,219
3,171
1,200
62,566'
1,964
998
130
1,107
100,262'
494
5,429
845
1,194
8,636
1,374
798
7,297
1,394
613
893
1,885'
2,422
2,940
1,587
57,713'
1,978
1,166
424
1,180'
101,250
429
5,502
794
795
8,902
1,341
764
6,709
1,380
786
874
1,701
1,924
2,978
1,584
60,602
1,950
649
477
1,111
100,903'
501
5,696
882
866
8,861
1,176
723
6,806
1,384
746
850
1,986
2,239
3,134
1,649
59,332'
1,928
491
489
1.164
104,441
609
7,243
750
983
9,455
1,095
629
7,474
1,407
905
776
2,001
2,478
3,553
1,856
58,224
2,005
1,253
568
1,176
100,321
619
6,113
856
1,041
9,583
1,426
622
7,266
1,427
614
789
1,863
2,906
2,617
1,709
56,249
1,902
1,102
504
1,112
100,323
694
6,990
783
961
9,483
1,181
660
5,981
1,254
698
757
1,749
2,404
3,306
1,649
57,846
1,852
521
528
1,026
107,313
654
6,708
807
1,085
10,185
1,600
747
6,661
2,051
730
728
1,994
2,357
2,665
1,585
62,532
1,876
791
462
1,094
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
Spain
15
16 Sweden
1/
Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
Other Western Europe 1
21
22
U.S.S.R
23 Other Eastern Europe 2
24 Canada
16,341
16,109
16,482'
17,982'
18,814
17,910
18,270
18,303
19,401
18,112
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
207,862
11,050
58,009
592
26,315
38,205
6,839
3,499
0
2.420
158
252
34,885
1,350
7.707
2,384
1,088
11,017
2,091
202,674'
11,462
58,258
499
25,283
38,881
6,603
3,249
0
2,390
194
224
31,799'
1,340
6.645
1,947
960
10,871
2,067
196,815'
11,456
55,692'
460
25,379
36,888'
6,557
2,903
1
2,399
167
213
31,692'
927
6,179
1,806
961
11,204
1,931
199,032
11,803
55,260
275
25,363
38,932
6,540
2,861
0
2,388
124
216
32,367
839
6,133
1,767
953
11,295
1,917
193,625
11,921
52,537
238
25,271
37,072
6,537
2,820
0
2,382
112
218
31,493
1,075
5,919
1,757
951
11,326
1,997
200,733
12,079
57,075
274
24,855
40,043
6,507
2,789
0
2,397
136
244
31,399
1,086
5,860
1,738
931
11,304
2,015
202,204
12,282
56,250'
432'
24,915
41,923
6,514
2,776
0
2,366
113
209
31,168'
996'
6,280
1,703
927
11,364
1,985
197,866
12,009
55,453
373
24,762
39.740
6,449
2,642
0
2,375
127
209
30,839
1,060
5,862
1,677
936
11,289
2,065
206,143
12,119
61,697
320
25,461
40,270
6,488
2,634
0
2,387
135
224
31,032
1,138
6,377
1,600
1,052
11,174
2,035
67.837
66,316
66,212
70,729
73,421
73,965'
72,033
74,253
77,792
78,097
292
1,908
8,489
330
805
1,832
30,354
9,943
2,107
1,219
4.954
5,603
710
1,849
7,293
425
724
2,088
29,066
9,285
2,555
1,125
5,044
6,152
639
1,535
6,796
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
902
1,403
8.208
479
712
1,617
36,711
9,242
2,336
810
3,577
4,732
593
1,151
8,134
398
717
1,611
38,781
9,286
2,325
775
3,838
5,812
703
1,446
8,315
420
736
1,766'
38,629
9,176
2,263
716
3,948
5,845
567
1,238
7.526
440
675
1,772
38,524
8,977
2,393
706
3,680
5,535
779
1,089
8,445
372
720
1,567
40,902
8,900
2,168
711
2,919
5,680
526
1,637
8,632
375
729
1,541
43,327
8,476
2,128
736
2,764
6,921
758
1,903
8,878
355
689
1,636
42,751
7,855
2,148
636
3,733
6,754
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 5
63
Other
6,654
747
440
2,634
33
1,073
1,727
6,615
728
583
2,795
18
842
1,649
5,407
721
575
1,942
20
630
1,520
5,128
653
646
1,799
17
488
1,525
5,007
639
662
1,716
17
465
1,508
4.890
619
640
1,743
17
417
1,455
4,971
740
642
1,705
17
415
1,452
4,817
701
615
1,661
17
413
1,410
4,693
633
617
1,683
21
445
1,294
4,660
593
636
1,603
42
511
1,274
64 Other countries
65
Australia
66
All other
2,898
2,256
642
3,447
2,769
678
3.390
2,413
978
3,305
2,473
832
3,082
2,237
845
2,966
2,050
916
2,939
2,023
916
3,103
2,159
945
3,232
2,293
940
3,253
2,249
1,004
164
800
1,030
483
502
408
456
493
420
200
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
British West Indies
30
31
Chile
32 Colombia
33 Cuba
34
Ecuador
35
Guatemala 3
36 Jamaica 3
Mexico
3/
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
organizations 6
1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
3. Included in "Other Latin America and Caribbean" through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
3.19
Data
A61
B A N K S ' O W N A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U . S . Dollars
Millions of dollars, end of period
1986
Type of claim
1983
1984
1985
Mar.'
1 Total
2
3
4
5
6
7
8
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 . .
June
401,109
60,157
179,662
111,832
46,393
65,439
49,458
394,667
59,972
173,094
112,522
47,493
65,029
49,079
403,843
60,622
181,867
112,996
47,041
65,955
48,358
433,078
430,489'
419,746
391,312
57,569
146,393
123,837
47,126
76,711
63,514
400,162
62,237
156,216
124,932
49,226
75,706
56,777
401,608'
60,507'
174,261
116,654'
48,372'
68,282
50,185
394,702
60,659
173,400
110,571
45.043
65,529
50,072
34,903
2,969
32,916
3,380
28,881
3,335
25.044
2,494
28,483
3,475
26,064
23,805
19,332
17,859
20,294
5,870
5,732
6,214
4,692
4,715
37,715
37,103
28,487
28,541
28,328'
46,337
40,714
37,399
41,442
12 Outstanding collections and other
13 MEMO: Customer liability on
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
May'
426,215
11 Negotiable and readily transferable
Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 4 . . . .
Apr.
July
Aug.
403,494'
60,667
181,590^
114,101
49,326'
64,775'
47,137
403,729
59,776
182,151
115,888
52,410
63,477
45,913
417,778
61,110
193,987
116,819
52,136
64,683
45,862
45,848
47,526
n.a.
417,778
432,326
47,351
42,771
46,200'
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.
B A N K S ' O W N CLAIMS O N U N A F F I L I A T E D FOREIGNERS Reported by Banks in the United States
Payable in U . S . Dollars
Millions of dollars, end of period
1985
Maturity; by borrower and area
1
2
3
4
5
6
7
8
9
10
11
12.
13
Sept.'
By borrower
Maturity of 1 year or less 1
Foreign public borrowers
All other foreigners
Maturity of over 1 year 1
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less 1
Europe
Canada
Latin 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
1. Remaining time to maturity.
1982
1983
1986
1984
Sept.
Dec.
Mar.
June
228,150
243,715
243,952
232,803
227,903
221,177
222,256
173,917
21,256
152,661
54,233
23,137
31,095
176,158
24,039
152,120
67,557
32,521
35,036
167,858
23,912
143,947
76,094
38,695
37,399
161,642
25,537
136,105
71,161
36,820
34,340
160,824
26,302
134,522
67,078
34,512
32,567
152,6%
23,845
128,851
68,481
36,681
31,800
152,249
23,183
129,066
70,008
37,177
32,830
50,500
7,642
73,291
37,578
3,680
1,226
56,117
6,211
73,660
34,403
4,199
1,569
58,498
6,028
62,791
33,504
4,442
2,593
58,520
6,117
62,148
29,120
3,954
1,782
56,585
6,401
63,328
27,966
3,753
2,791
53,462
5,899
59,538
28,034
3,331
2,433
57,929
6,043
57,134
25,772
3,297
2,073
11,636
1,931
35,247
3,185
1,494
740
13,576
1,857
43,888
4,850
2,286
1,101
9,605
1,882
56,144
5,323
2,033
1,107
8,078
1,940
53,090
5,230
1,665
1,157
7,634
1,805
50,674
4,502
1,538
926
7,783
1,925
52,165
4,251
1,634
722
7,934
2,256
53,572
4,034
1,497
714
2. Includes nonmonetary international and regional organizations.
A62
3.21
International Statistics • January 1987
CLAIMS O N FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks'
Billions of dollars, end of period
1984
Area or country
1 Total
1982
1985
1986
1983
June 2
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
JuneP
436.1
433.9
427.6
406.4
405.7
405.5
396.8
394.9
391.9
394.4
391.1
179.6
13.1
17.1
12.7
10.3
3.6
5.0
5.0
72.1
10.4
30.2
167.8
12.4
16.2
11.3
11.4
3.5
5.1
4.3
65.3
8.3
29.9
157.4
10.9
14.2
10.9
11.5
3.0
4.3
4.2
60.3
8.9
29.3
147.5
9.8
14.3
10.0
9.7
3.4
3.5
3.9
57.1
8.1
27.7
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
153.0
9.3
14.5
8.9
10.0
3.8
3.1
4.2
65.4
9.1
24.7
146.7
8.9
13.5
9.6
8.6
3.7
2.9
4.0
65.7
8.1
21.7
152.0
9.5
14.8
9.8
8.4
3.4
3.1
4.1
67.1
7.6
24.3
148.5
9.3
12.3
10.5
9.8
3.7
2.8
4.4
64.6
7.0
24.2
156.6
8.3
13.8
11.2
8.5
3.5
2.9
5.4
68.8
6.1
28.1
159.7
9.0
14.7
11.5
9.3
3.4
2.9
5.6
68.9
7.0
27.4
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20
21
Turkey
Other Western Europe
22
23
South Africa
24
Australia
33.5
1.9
2.4
2.2
3.0
3.3
1.5
7.5
1.4
2.3
3.7
4.3
36.0
1.9
3.4
2.4
2.8
3.3
1.5
7.1
1.7
1.8
4.7
5.4
37.0
1.9
3.1
2.3
3.3
3.2
1.7
7.3
2.0
1.9
4.7
5.6
36.2
1.8
2.9
1.9
3.2
3.2
1.6
6.9
2.0
1.7
5.0
6.1
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
32.8
1.6
2.1
1.8
2.9
2.9
1.4
6.4
1.9
1.7
4.2
6.1
32.3
1.6
1.9
1.8
2.9
2.9
1.3
5.9
2.0
1.8
3.9
6.2
32.0
1.7
2.1
1.8
2.8
3.4
1.4
6.1
2.1
1.7
3.3
5.6
30.4
1.6
2.4
1.6
2.6
2.9
1.3
5.8
1.9
2.0
3.2
5.0
31.5
1.6
2.5
1.9
2.5
2.7
1.1
6.4
2.3
2.4
3.2
4.9
30.6
1.7
2.4
1.6
2.6
3.0
1.0
6.4
2.5
2.1
3.1
4.2
25 OPEC countries 3
Ecuador
26
Venezuela
27
28
Indonesia
29
Middle East countries
30
African countries
26.9
2.2
10.5
2.9
8.5
2.8
28.4
2.2
9.9
3.4
9.8
3.0
26.0
2.1
9.5
3.5
8.2
2.7
24.4
2.1
9.2
3.2
7.3
2.5
24.9
2.2
9.3
3.3
7.9
2.3
24.5
2.2
9.3
3.3
7.4
2.3
22.8
2.2
9.3
3.1
6.1
2.2
22.7
2.2
9.0
3.1
6.2
2.3
21.6
2.1
8.9
3.0
5.5
2.0
20.6
2.2
8.7
3.3
4.8
1.8
20.6
2.1
8.8
3.0
5.0
1.7
106.5
110.8
112.3
111.6
111.8
110.8
110.0
107.8
105.0
103.4
101.6
8.9
22.9
6.3
3.1
24.2
2.6
4.0
9.5
23.1
6.4
3.2
25.8
2.4
4.2
9.2
25.4
6.7
3.0
25.9
2.3
4.1
9.1
26.3
7.1
2.9
26.0
2.2
3.9
8.7
26.3
7.0
2.9
25.7
2.2
3.9
8.6
26.4
7.0
2.8
25.5
2.2
3.8
8.6
26.6
6.9
2.7
25.3
2.1
3.7
8.9
25.5
6.6
2.6
24.4
1.9
3.5
8.9
25.6
7.0
2.7
24.1
1.8
3.4
8.9
25.7
7.0
2.3
23.9
1.7
3.3
9.2
25.3
7.1
2.2
23.9
1.6
3.3
.2
5.3
.5
2.3
10.7
2.1
6.3
1.6
1.1
.3
5.2
.9
1.9
11.2
2.8
6.1
2.2
1.0
.6
5.2
.9
1.9
11.0
2.7
6.2
1.9
1.1
.5
5.1
1.0
1.7
10.3
2.9
5.9
1.8
.9
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.7
5.3
.9
1.7
10.4
2.7
6.1
1.7
1.1
.3
5.5
.9
2.3
10.0
2.8
6.0
1.6
.9
1.1
5.1
1.1
1.5
10.4
2.7
6.0
1.6
.9
.5
4.5
1.2
1.6
9.4
2.4
5.7
1.4
1.0
.6
4.3
1.2
1.3
9.5
2.2
5.6
1.3
.9
.6
3.6
1.3
1.6
8.7
2.0
5.7
1.1
.8
Other Africa 4
1.2
.7
.1
2.4
1.5
.8
.1
2.3
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
1.0
.9
.1
2.0
1.0
.9
.1
1.9
.9
.9
.1
1.9
.9
.9
.1
1.7
52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
Other
55
6.2
.3
2.2
3.7
5.3
.2
2.4
2.8
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
4.6
.2
2.4
1.9
4.2
.1
2.2
1.8
4.0
.3
2.0
1.7
4.0
.3
2.0
1.7
56 Offshore banking centers
57
Bahamas
58
Bermuda
Cayman Islands and other British West Indies
59
60
Netherlands Antilles
61
Panama 5
Lebanon
62
63
Hong Kong
Singapore
64
Others 6
65
66.0
19.0
.9
12.8
3.3
7.5
.1
13.3
9.1
.0
68.9
21.7
.9
12.2
4.2
5.8
.1
13.8
10.3
.0
72.8
27.4
.7
12.2
3.3
6.5
.1
12.4
10.2
.0
65.1
23.3
1.0
11.1
3.1
5.6
.1
11.6
9.4
.0
65.6
21.5
.9
11.8
3.4
6.7
.1
11.4
9.8
.0
63.2
20.1
.7
12.3
3.3
5.5
.1
11.4
9.9
.0
63.9
21.1
.9
12.1
3.2
5.4
.1
11.4
9.7
.0
58.8
16.6
.8
12.3
2.3
6.1
.0
11.4
9.4
.0
65.4
21.4
.7
13.4
2.3
6.0
.1
11.5
9.9
.0
61.5
21.5
.7
11.3
2.3
5.9
.1
11.4
8.4
.0
57.2
17.3
.4
12.8
2.3
5.5
.1
9.4
9.4
.0
66 Miscellaneous and unallocated 7
17.5
16.8
17.3
17.1
17.3
16.9
16.9
17.3
16.9
16.8
17.4
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
31 Non-OPEC developing countries
Latin America
Argentina
32
Brazil
33
34 ' Chile
Colombia
35
36
Mexico
37
Other Latin America
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Asia
China
Mainland
Taiwan
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
Africa
Egypt
Morocco
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. 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).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO U N A F F I L I A T E D FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1985
Type, and area or country
982
1986
1984
1983
June
Sept.
Mar.
Dec.
JuneP
1 Total
27,512
25,346
29,357
24,574
25,256
27,230
25,635
24,222
2 Payable in dollars
3 Payable in foreign currencies
24,280
3,232
22,233
3,113
26,389
2,968
21,899
2,675
22,408
2,848
23,994
3,236
22,022
3,613
20,692
3,530
By type
4 Financial liabilities
5
Payable in dollars
Payable in foreign currencies
6
11,066
8,858
2.208
10,572
8,700
1,872
14,509
12,553
1,955
11,528
9,543
1,985
11,815
9,824
1,991
13,005
10,955
2,050
12,328
10,205
2,123
11,117
9,177
1,940
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities . . .
16,446
9,438
7,008
14,774
7,765
7,009
14,849
7,005
7,843
13,046
5,797
7,249
13,441
5,694
7,747
14,225
6,685
7,540
13,307
5,598
7,710
13,105
5,503
7,602
15,423
1,023
13,533
1,241
13,836
1,013
12,356
690
12,584
857
13,039
1,186
11,817
1,490
11,516
1,590
6,501
505
783
467
711
792
3,102
5,742
302
843
502
621
486
2,839
6,728
471
995
489
590
569
3,297
5,944
351
865
474
604
566
2,835
6,568
367
849
493
624
593
3,351
7,270
329
857
419
745
676
3,924
6,971
338
851
371
630
702
3,736
6,705
288
701
262
651
561
3,960
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
746
764
863
850
826
760
753
287
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,751
904
14
28
1,027
121
114
2,596
751
13
32
1,041
213
124
5,086
1,926
13
35
2,103
367
137
3,106
1,107
10
27
1,734
32
3
2,619
1,145
4
23
1,234
28
3
3,152
1,120
4
29
1,814
15
3
2,788
954
13
26
1,610
20
4
2,404
859
14
27
1,362
30
3
27
28
29
Asia
Japan
Middle East oil-exporting countries 2 ..
1,039
715
169
1,424
991
170
1,777
1,209
155
1,584
994
147
1,767
1,136
82
1,790
1,173
82
1,799
1,192
78
1,660
1,189
43
30
Africa
17
0
19
0
14
0
14
0
14
0
12
0
12
0
12
0
12
27
41
30
22
21
4
49
3,831
52
598
468
346
367
1,027
3,245
62
437
427
268
241
732
4,001
48
438
622
245
257
1,095
3,461
53
423
428
284
349
730
3,897
56
431
601
386
289
858
4,074
62
453
607
364
379
976
3,915
66
382
546
545
251
957
3,761
58
357
512
587
283
861
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
1,495
1,841
1,975
1,494
1,383
1,449
1,442
1,351
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,570
16
117
60
32
436
642
1,473
1
67
44
6
585
432
1,871
7
114
124
32
586
636
1,225
12
77
90
1
492
309
1,262
2
105
120
15
415
311
1,088
12
77
58
44
430
212
1,097
26
210
64
7
256
364
1,304
10
294
107
35
235
488
48
49
50
Asia
Japan
Middle East oil-exporting countries 2 5 .
8,144
1,226
5,503
6,741
1,247
4,178
5,285
1,256
2,372
5,246
1,219
2,396
5,353
1,567
2,109
6,046
1,799
2,829
5,384
2,039
2,171
5,068
2,095
1,731
51
52
Africa
Oil-exporting countries 3
753
277
553
167
588
233
631
265
572
235
587
238
486
148
569
215
53
All other 4
651
921
1,128
988
975
982
983
1,053
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 1987
CLAIMS O N U N A F F I L I A T E D FOREIGNERS
United States 1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1985
Type, and area or country
1982
1986
1984
1983
Sept.
June
Dec.
Mar.
June?
1 Total
28,725
34,911
29,901
26,750
28,610
28,085
30,927'
32,519
2 Payable in dollars
3 Payable in foreign currencies
26,085
2,640
31,815
3,096
27,304
2,597
24,121
2,629
25,743
2,866
25,783
2,302
28,74C
2,187
30,337
2,182
By type
4 Financial claims
Deposits
5
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
17,684
13,058
12,628
430
4,626
2,979
1,647
23,780
18,496
17,993
503
5,284
3,328
1,956
19,254
14,621
14,202
420
4,633
3,190
1,442
16,695
12,839
12,283
556
3,856
2,375
1,480
19,203
15,315
14,611
704
3,889
2,351
1,538
18,099
14,852
14,237
615
3,248
2,213
1,035
21,540
18,146
17,689
457
3,394
2,301
1,093
23,324
20,034
19,479
555
3,290
2,269
1,021
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
11,041
9,994
1,047
11,131
9,721
1,410
10,646
9,177
1,470
10,055
8,688
1,367
9,406
7,932
1,475
9,986
8,6%
1,290
9,387'
8,086'
1,301
9,195
7,858
1,337
14
15
10,478
563
10,494
637
9,912
735
9,463
592
8,782
624
9,333
652
8,750r
637
8,589
606
4,873
15
134
178
97
107
4,064
6,488
37
150
163
71
38
5,817
5,762
15
126
224
66
66
4,864
5,477
15
51
175
46
16
4,900
6,463
12
132
158
127
53
5,736
6,327
10
184
223
61
74
5,522
6,859
10
217
172
61
166
5,986
8,877
11
257
148
17
177
8,051
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
4,377
5,989
3,988
3,756
4,037
3,256
4,024
4,464
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,546
3,279
32
62
3,255
274
139
10,234
4,771
102
53
4,206
293
134
8,216
3,306
6
100
4,043
215
125
6,616
2,204
6
96
3,747
206
100
7,603
2,315
5
92
4,632
201
73
7,697
2,685
6
78
4,440
180
48
9,934
3,500
2
77
5,904
178
43
9,151
3,251
17
75
5,359
176
42
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
698
153
15
764
297
4
961
353
13
640
281
6
969
725
6
696
475
4
621
350
2
723
499
2
34
35
Africa
Oil-exporting countries 3
158
48
147
55
210
85
111
25
104
31
103
29
87
27
89
25
31
159
117
95
26
21
14
20
3,826
151
474
357
350
360
811
3,670
135
459
349
334
317
809
3,801
165
440
374
335
271
1,063
3,680
212
408
375
301
376
950
3,235
158
360
336
286
208
779
3,533
175
426
346
284
284
898
3,387'
148
384'
396
221'
248
793
3,304
131
390
414
237
221
668
36
37
38
39
40
41
42
43
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
633
829
1,021
1,065
1,100
1,023
1,060
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,526
21
261
258
12
775
351
2,695
8
190
493
7
884
272
2,052
8
115
214
7
583
206
1,803
11
65
193
29
468
181
1,660
18
62
211
7
416
149
1,753
13
93
206
6
510
157
1,599'
27
82
231'
7
388'
172
1,590
24
148
194
24
320
180
52
53
54
Asia
Japan
Middle East oil-exporting countries 2
3,050
1,047
751
3,063
1,114
737
3,073
1,191
668
2,707
954
593
2,712
884
541
2,982
1,016
638
2,606'
801'
63 <y
2,649
846
691
55
56
Africa
Oil-exporting countries 3
588
140
588
139
470
134
464
137
434
131
437
130
491
167
447
171
57
All other 4
417
286
229
336
264
257
244
235
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.
970
Securities Holdings and Transactions
3.24
A65
FOREIGN T R A N S A C T I O N S IN SECURITIES
Millions of dollars
1986
Transactions, and area or country
1984
1986
1985
Jan.Sept.
Mar/
Apr/
May'
June
July
Aug.
Sept.''
U.S. corporate securities
STOCKS
1
2
Foreign purchases
Foreign sales
59,834
62,814
81,995'
77,054
110,917
92.636
13,568
10,687
15.414
11,468
13,244
10,388
11,176
10,832
13,268
11,258
12,040
10,611
12,180
10,926
3
Net purchases, or sales ( - )
-2,980
4,941'
18,281
2,881
3,947
2,856
344
2,010
1,429
1,253
4
Foreign countries
-3,109
4,857'
18,391
2,833
3,883
2,814
464
2,075
1,469
1,298
5
6
7
8
9
10
11
12
N
14
15
16
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries
-3,077
-405
-50
-357
-1,542
-677
1,691
495
-1,992
-378
-22
175
2,057
-438
730
-123
-75
1,665
356
1,718
238
296'
24
168
10,614
510
423
991
2,153
5.060
766
2,284
852
3,318
219
338
2,212
-26
229
166
697
1,029
77
195
127
135
59
28
2,066
36
47
123
569
733
52
880
339
399
48
100
1,571
99
99
236
376
563
44
489
117
472
43
78
192
219
-174
97
-134
38
131
60
-236
288
-3
32
576
182
-130
52
-198
481
214
269
181
830
30
-23
823
105
-42
50
44
520
97
108
78
376
-1
-13
584
29
7
36
70
461
92
146
58
346
-13
86
17
Nonmonetary international and
regional organizations
129
84
-111
47
63
42
-121
-65
-40
-45
BONDS 2
18
19
Foreign purchases
Foreign sales
39,296
26,399
86,587'
42,439'
91,739
52,412
12,515
7,379
13,483
8,855
12,044
5,252
8,964
5,686
8,937'
5,679
9,420
5,348
10,161
5,578
20
Net purchases, or sales ( - )
12,897
44,149'
39,327
5,137
4,628
6,792
3,278
3,259'
4,072
4,582
21
Foreign countries
12,600
44,244'
38,447
4,836
4,438
6,696
2,798
3,197'
4,077
4,872
11,697
207
1,724
100
643
8,429
-62
376
-1,230
1,817
1
0
40,047
210
2,001
222
3,987
32,762
19C
498
-2,631'
6,091
11
38
30,625
29
-204
277
4,178
26,498
155
1,201
-2,305
8.642
14
116
3,690
-17
-224
25
459
3,374
-197
200
8
1,144
0
-10
3,641
-22
-73
2
1,231
2,578
74
263
-396
840
3
13
6,221
83
205
89
456
5,631
54
142
-186
464
-2
3
2,763
-6
-3
-37
490
2,214
55
63
-632
480
3
66
2,395'
6
-91
-39
180
2,213'
85
250'
-718'
1,177'
-3
11
2,484
20
-81
98
564
1,917
110
160
-40
1,329
5
29
3,385
-28
28
51
30
3,410
3
65
-169
1,586
6
-4
880
301
190
96
480
61
-4
-290
Europe
73
France
24
Germany
25
Netherlands
26
Switzerland
27
United Kingdom
78 Canada
2,9 Latin America and Caribbean
1
3 0 Middle East
31 Other Asia
32 Africa
33 Other countries
22
34
Nonmonetary international and
regional organizations
297
-95
Foreign securities
35
36
37
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-1,101
14,816
15,917
-3,894'
20,851'
24,746'
-3,362
34,520
37,883
-1,364
3,710
5.073
-1,668
4,390
6,057
-221
3,454
3,675
-238
3,775
4,013
404'
4,310'
3,907'
-83
4,610
4,694
480
4,811
4,330
38
39
40
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,930
56,017
59,948
-3,996'
81,214'
85,210'
-4,169
120,591
124,760
-2,963
12,700
15,663
-1,251
15,296
16,546
188
13,491
13,303
1,540
15,632
14,091
359'
13,559
13,200'
1,232
14,086
12.854
-2,221
15,157
17,378
11
Net purchases, or sales ( - ) , of stocks and bonds . . . .
-5,031
-7,891'
-7,531
-4,326
-2,918
-33
1,302
762'
1,149
-1,741
42
Foreign countries
-4,642
-8,954'
-7,879
-4,003
-2,788
-106
1,122
438'
1,090
-1,678
43
44
45
46
47
48
Europe
Canada
Latin America and Caribbean
-8,655
542
2,460
1,356
-108
-238
-9,887'
-1,682'
1,845
658'
75
38'
-14,636
-596
2,746
5,501
46
-939
-3,802
-488
205
126
4
-47
-2,649
-286
176
-124
6
89
208
82
363
-746
3
-16
-1,332
16
742
1,639
3
55
-683'
245
278
659
9
-70
-714
263
127
1,337
1
75
-3,366
111
352
1,653
3
-430
49
Nonmonetary international and
regional organizations
-389
1,063
347
-324
-130
73
180
324
59
-63
Africa
Other countries
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-
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.25
International Statistics • January 1987
M A R K E T A B L E U.S. TREASURY BONDS A N D NOTES
Foreign T r a n s a c t i o n s
Millions of dollars
1986
Country or area
1984
1986
1985
Jan.Sept.
Mar.
Apr.
May
June
July
Aug.
Sept.P
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2
21,501
29,047
22,385
9,765'
8,658'
-2,132'
3,112
-254'
752
5,095
2 Foreign countries 2
16,496
28,591'
23,351
2,554'
8,398'
-252'
2,230
2,705'
2,215
4,105
11,014
287
2,929
449
40
656
5,188
1,466
0
1,586
4,145
476
1,917
269
976
760
-1,954
1,701
0
-188
13,478
316
4,785
1,191
459
772
3,797
2,158
0
789
1,813
-196
322
61
-14
22
1,474
144
0
762
1,625
29
139
81
113
163
-206
1,307
0
55
1,436'
39
468
-31
236
365
698'
-339
0
908
2,562
82
357
-64
16
349
698
1,125
0
-302
2,544'
-46
818
1,756
42
-278
-358
0
67
2,442
180
1,050
-64
-25
52
1,207
43
0
105
-765
239
1,042
-313
100
-68
-1,959
195
0
-198
1.418
14
536
869
2,431
6,289
-67
114
4,312
238
2,343
1,731
19,899'
17,920r
112
311
949
-29
1,343
-365
7,752
5,969
-30
413
227
127
171
-70
-253'
334'
-18
22
1,234
196
173
865
5,092'
2,267'
-1
394
-954
36
372
-1,363
-1,617'
-1,148'
-2
-22
-460
-170
-290
0
515
223
-5
-80
28
-72
96
5
-137'
273
6
198
-37
-294
255
2
-133
683
-1
-160
220
266
32
-78
5,036
4,095
11
-200
5,009
4,612
0
457r
-420
18
-965
-1,224
162
7,212'
6,957
23
260
198
30
-1,880'
-1,889
0
882
899
5
-2,959'
-2,804
0
-1,462
-1,511
0
990
885
39
16,496
505
15,992
28,591'
8,088
20,503'
23,351
10,462
12,891
2,554'
394
2,160'
8,398'
3,862
4,537'
-252'
157
-409'
2,230
1,612
619
2,705'
1,448'
1,257'
2,215
61
2,154
4,105
1,948
2,158
-6,270
-101
-1,581
7
-88
4
-607
-2
1,334
1
-14
-290
0
14'
2
-239
-1
-205
2
3 Europe 2
Belgium-Luxembourg
4
5
Germany 2
Netherlands
6
7
Sweden
8
Switzerland 2
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
MEMO
24 Foreign countries 2
25
Official institutions
26
Other foreign 2
27
28
Oil-exporting countries
Middle East 3
Africa 4
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
1
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
D I S C O U N T R A T E S OF FOREIGN C E N T R A L B A N K S
Percent per annum
Rate on Oct. 31, 1986
Rate on Oct. 31, 1986
Country
Austria..
Belgium .
Brazil...
Canada..
Denmark
Rate on Oct. 31, 1986
Country
Percent
4.0
8.0
49.0
8.55
7.0
Country
Month
effective
Aug.
May
Mar.
Oct.
Oct.
1985
1986
1981
1986
1983
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
A67
7.0
3.5
12.0
3.0
4.5
Month
effective
June
Mar.
May
Oct.
Mar.
1986
1986
1986
1986
1986
Percent
Norway
Switzerland
United Kingdom 2 .
Venezuela
Month
effective
June 1983
Mar. 1983
8.0
4.0
Oct. 1985
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such
discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1986
Country, or type
1
2
3
4
5
6
7
8
9
10
1983
1984
1985
Apr.
May
June
July
Aug.
Sept.
Oct.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
9.57
10.06
9.48
5.73
4.11
10.75
9.91
11.29
5.96
4.35
8.27
12.16
9.64
5.40
4.92
6.80
10.43
9.57
4.48
4.04
6.86
10.16
8.60
4.58
4.32
6.95
9.70
8.72
4.59
4.96
6.54
9.91
8.45
4.61
4.80
6.06
9.79
8.50
4.56
4.30
5.88
10.05
8.38
4.48
4.13
5.88
11.08
8.45
4.56
3.96
Netherlands
France
Italy
Belgium
Japan
5.58
12.44
18.95
10.51
6.49
6.08
11.66
17.08
11.41
6.32
6.29
9.91
14.86
9.60
6.47
5.23
7.66
13.62
8.51
4.85
5.76
7.21
12.35
7.90
4.58
5.90
7.23
11.78
7.27
4.64
5.69
7.13
11.70
7.25
4.62
5.28
7.09
11.18
7.25
4.68
5.17
7.07
10.84
7.25
4.71
5.32
7.38
10.85
7.29
4.75
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 • January 1987
FOREIGN EXCHANGE RATES
Currency units per dollar
1986
Country/currency
1983
1984
1985
May
June
July
Aug.
Sept.
Oct.
Australia/dollar1
Austria/schilling
Belgium/franc
Brazil/cruzeiro
Canada/dollar
China, P.R./yuan
Denmark/krone
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
70.026
20.676
59.336
6205.10
1.3658
2.9434
10.598
72.72
15.667
45.497
13.84
1.3757
3.2014
8.2479
68.89
15.699
45.633
13.84
1.3899
3.2115
8.2822
62.91
15.117
44.304
13.84
1.3808
3.6435
8.0635
61.23
14.502
42.701
13.84
1.3885
3.7129
7.7657
62.21
14.349
42.315
13.84
1.3872
3.7150
7.7278
63.83
14.111
41.635
13.98
1.3885
3.7257
7.5607
8
9
10
11
12
13
14
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee
Ireland/pound 1
5.5636
7.6203
2.5539
87.895
7.2569
10.1040
124.81
6.0007
8.7355
2.8454
112.73
7.8188
11.348
108.64
6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62
5.0967
7.0967
2.2277
139.64
7.8080
12.466
136.62
5.1954
7.1208
2.2337
140.98
7.8107
12.599
135.68
5.0744
6.9323
2.1517
138.40
7.8123
12.508
139.00
4.9377
6.7215
2.0621
134.68
7.8003
12.567
134.67
4.9190
6.6835
2.0415
135.07
7.8026
12.676
134.53
4.8684
6.5628
2.0054
135.44
7.7999
12.848
135.89
15
16
17
18
19
20
21
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar'
Norway/krone
Portugal/escudo
1519.30
237.55
2.3204
2.8543
66.790
7.3012
111.610
1756.10
237.45
2.3448
3.2083
57.837
8.1596
147.70
1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07
1528.50
167.03
2.5978
2.5082
56.666
7.4106
149.12
1533.10
167.54
2.6231
2.5154
54.585
7.6117
151.09
1478.31
158.61
2.6455
2.4236
53.176
7.4800
148.67
1420.33
154.18
2.6121
2.3242
50.068
7.3534
146.17
1410.23
154.73
2.6174
2.3050
47.950
7.3429
146.83
1387.67
156.47
2.6245
2.2663
50.392
7.3611
147.24
22
23
24
25
26
27
28
29
30
31
Singapore/dollar
South Africa/rand 1
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand,'baht
United Kingdom/pound 1
2.1136
89.85
776.04
143.500
23.510
7.6717
2.1006
n.a.
22.991
151.59
2.1325
69.534
807.91
160.78
25.428
8.2706
2.3500
39.633
23.582
133.66
2.2008
45.57
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74
2.2157
45.67
889.09
141.62
27.932
7.1458
1.8538
38.460
26.327
152.11
2.2232
39.49
890.74
142.91
27.955
7.2124
1.8406
38.163
26.400
150.85
2.1861
39.04
888.59
137.58
28.065
7.0715
1.7445
38.119
26.204
150.71
2.1601
38.39
886.45
134.11
28.187
6.9365
1.6616
37.422
26.093
148.61
2.1680
43.36
883.06
134.10
28.297
6.9191
1.6537
36.885
26.120
146.98
2.1777
44.42
879.22
133.43
28.407
6.8901
1.6433
36.647
26.129
142.64
125.34
138.19
143.01
113.27
113.77
110.38
107.50
107.15
106.58
1
2
3
4
5
6
7
MEMO
32 United States/dollar 2
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.
3. Currency reform.
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
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
....
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
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
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.
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
List Published
RELEASES
Semiannually,
with Latest Bulletin
Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Page
A87
August
December
March
January
May
September
November
December
March
May
July
December
A70
A68
A68
A70
A74
A70
A70
A76
A70
A70
A70
A70
TABLES
Published Irregulary,
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Assets
Terms
Terms
Terms
Terms
Issue
December 1986
with Latest Bulletin
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, 1985
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, November 1985
of lending at commercial banks, February 1986
of lending at commercial banks, May 1986
of lending at commercial banks, August 1986
Special tables begin on next
page.
September 30, 1985
December 31, 1985
March 31, 1986
June 30, 1986
1983
1983
1984
1987
1986
1986
1986
1986
1986
1986
1986
1986
A70
4.20
Special Tables • January 1987
DOMESTIC A N D F O R E I G N OFFICES, Insured Commercial Bank Assets and Liabilities 1 - 2
Consolidated Report of Condition, December 31, 1985
Millions of dollars
Banks with foreign offices3-4
Item
Total
Total
1 Total assets6
2 Cash and balances due from depository institutions
3 Cash items in process of collection, unposted debits, and currency
4 Cash items in process of collection and unposted debits and coin
5 Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8 Balances due from Federal Reserve Banks
Foreign
Domestic
Banks with domestic
offices only 5
Over 100
Under 100
2,706,663
1,590,531
415,674
1,233,483
676,166
439,966
335,330
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
234,619
92,859
n.a.
n.a.
32,992
91,189
17,579
109,765
1,513
n.a.
n.a.
20,175
87,847
229
124,855
91,345
78,961
12,385
12,817
3,343
17,350
63,719
26,711
18,424
8,288
20,937
7,614
8,456
37,000
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
MEMO
9
Noninterest-bearing balances due from commercial banks in the United
States (included in balances due from depository institutions in the U.S.)
n.a.
n.a.
8,479
13,620
15,625
n.a.
n.a.
583,685
383,576
162,297
16,847
145,450
149,930
123,372
73,745
56,124
17,621
172
162
10
73,573
55,962
17,611
86,582
60,626
25,956
83,288
n.a.
n.a.
23,961
n.a.
159,469
32,515
n.a.
11,554
6,067
65,586
22,966
6,023
0
10
603
16,072
502
11,554
6,057
64,984
6,893
5,521
6,098
19,858
56,534
6,813
6,393
6,309
n.a.
37,348
2,737
540
14,613
n.a.
257
5,766
16,942
3
499
15,570
254
5,267
1,373
145
6,248
420
137
2,599
132,055
1,635,479
17,649
1,617,830
22,897
72
1,594,861
64,027
990,373
7,081
983,292
14,290
72
968,929
130
244,136
1,865
242,269
n.a.
n.a.
n.a.
63,897
746,237
5,216
741,023
n.a.
n.a.
n.a.
37,321
408,403
6,469
401,934
5,499
0
396,435
30,707
236,703
4,098
232,604
3,107
0
229,497
435,493
n.a.
n.a.
n.a.
n.a.
n.a.
67,700
n.a.
n.a.
n.a.
205,230
n.a.
n.a.
n.a.
n.a.
n.a.
61,897
15,729
5,134
41,034
13,268
n.a.
n.a.
n.a.
n.a.
n.a.
37,022
1,340
463
35,219
191,962
58,934
1,371
78,611
6,152
46,894
24,875
14,389
4,671
5,815
138,343
21,517
2,701
66,871
4,503
42,750
5,139
4,232
849
58
91,920
8,698
7,268
50,580
1,883
23,492
664
n.a.
n.a.
n.a.
36,086
576,206
n.a.
n.a.
4,824
n.a.
n.a.
6,996
407,071
290,322
116,750
1,328
474
853
599
130,327
19,189
111,138
586
90
4%
6,397
276,744
271,133
5,611
742
385
357
6,980
111,761
111,516
246
1,864
n.a.
n.a.
22,110
57,374
n.a.
n.a.
1,632
n.a.
n.a.
301,330
73,757
227,573
132,930
43,120
89,810
9,207
n.a.
n.a.
123,722
n.a.
n.a.
113,181
28,655
84,526
55,219
1,982
53,237
61,057
45,688
15,369
128,571
n.a.
n.a.
n.a.
n.a.
39,280
28,433
10,847
115,555
39,427
76,128
n.a.
n.a.
629
12
618
48,564
35,814
12,750
n.a.
n.a.
38,650
28,421
10,229
66,992
3,613
63,378
21,431
41,947
18,439
14,951
3,488
9,265
44
9,221
2,290
6,931
3,338
2,304
1,034
3,750
n.a.
n.a.
n.a.
n.a.
24,214
40,431
40,412
7,129
2,083
50,336
n.a.
2,698
65,720
20,087
39,395
20,390
2,910
1,725
50,010
n.a.
1,563
3,934
11,731
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
16,152
27,664
n.a.
n.a.
n.a.
n.a.
48,414
n.a.
n.a.
3,433
899
11,812
2,045
297
296
n.a.
980
12,432
694
137
8,210
2,175
61
30
n.a.
155
8,621
n.a.
2,162,514
1,195,253
11 Total securities, book value
12 U.S. Treasury securities and U.S. government agency and corporation
obligations
13
U.S. Treasury securities
14
U.S. government agency and corporation obligations
15
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
16
All other
17 Securities issued by states and political subdivisions in the United States
18 Other securities
19
Other domestic securities
20
All holdings of private certificates of participation in pools of
residential mortgages
21
All other
Foreign securities
22
435,599
243,615
n.a.
n.a.
Federal funds sold and securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and leases (net of unearned income)
LESS: Allowance for loan and lease losses
LESS: Allocated transfer risk reserves
EQUALS: Total loans and leases, net
10 Total securities, loans and lease financing receivables, net
23
24
75
26
27
28
29
Total loans, gross, by category
30 Loans secured by real estate
31
Construction and land development
32 Farmland
1-4 family residential properties
33
34
Multifamily (5 or more) residential properties
35
Nonfarm nonresidential properties
36 Loans to depository institutions
37 To commercial banks in the United States
38 To other depository institutions in the United States
39 To banks in foreign countries
40
41
4?
43
44
45
46
47
48
49
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Loans to individuals for household, family and other personal expenditures
Credit cards and related plans
Other (includes single payment and installment)
50 Obligations (other than securities) of states and political subdivisions in the U . S . .
51
Nonrated industrial development obligations
52 Other obligations (excluding securities)
53
54
Loans to foreign governments and official institutions
55
Loans for purchasing and carrying securities
56
57
58
59
60
61
62
63
64
65
66
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and Agreement subsidiaries and IBFs . . .
Other assets
44,666
Commercial Banks
4.20
A71
Continued
Banks with domestic
offices only 5
Banks with foreign offices 3 ' 4
Item
Total
Foreign
Total
Domestic
Over 100
Under 100
67 Total liabilities, limited-life preferred stock and equity capital
2,706,663
1,590,530
n.a.
676,166
439,966
68 Total liabilities7
Limited-life preferred stock
69
2,539,095
14
1,507,283
0
414,484
n.a.
1,151,425
n.a.
629,800
14
402,012
0
70
71
77
73
74
75
76
77
78
79
2,101,008
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
23,963
n.a.
1,146,851
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
31,100
15,537
n.a.
321,660
173,528
n.a.
n.a.
n.a.
n.a.
n.a.
27,922
581
119,628
825,191
718,506
2,125
35,435
37,860
5,072
8,060
3,177
14,956
562,987
506,541
2,021
37,128
9,791
2,057
189
180
5,080
391,170
354,749
840
28,751
1,913
1,210
n.a.
n.a.
3,347
360
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and official checks
All other 8
n.a.
80 Total transaction accounts
81
Individuals, partnerships, and corporations
U.S. government
87
States and political subdivisions in the United States
83
Commercial banks in the United States
84
Other depository institutions in the United States
85
Banks in foreign countries
86
Foreign governments and official institutions
87
Certified and official checks
88
All
other
89
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
306,782
241,140
1,573
7,789
28,261
4,498
7,252
1,314
14,956
167,101
143,823
1,536
7,945
7,103
1,555
54
6
5,080
104,925
93,003
634
6,691
487
637
n.a.
n.a.
3,347
126
90 Demand deposits (included in total transaction accounts)
Individuals, partnerships, and corporations
91
U.S. government
92
93
States and political subdivisions in the United States
Commercial banks in the United States
94
Other depository institutions in the United States
95
Banks in foreign countries
96
Foreign governments and official institutions
97
Certified
and official checks
98
99
All other
100 Total nontransaction accounts
Individuals, partnerships, and corporations
101
U.S. government
102
103
States and political subdivisions in the United States
104 Commercial banks in the United States
105
U.S. branches and agencies of foreign banks
106
Other commercial banks in the United States
Other depository institutions in the United States
107
108
Banks in foreign countries
109
Foreign branches of other U.S. banks
Other banks in foreign countries
110
Foreign governments and official institutions
111
112
All other
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
261,554
196,940
1,558
6,778
28,260
4,497
7,252
1,313
14,956
120,628
100,037
1,520
5,292
7,093
1,548
53
5
5,080
518,408
477,366
552
27,646
9,599
311
9,288
574
808
22
785
1,864
395,885
362,718
484
29,184
2,688
156
2,532
502
135
4
131
175
65,946
57,614
617
3,156
485
629
n.a.
n.a.
3,347
100
286,245
261,746
206
22,060
1,426
n.a.
n.a.
572
n.a.
n.a.
n.a.
n.a.
234
219,327
n.a.
71,449
50,775
14,561
n.a.
60,138
167,554
982
28,717
57,992
80,328
n.a.
172,740
n.a.
63,053
50,449
12,572
n.a.
44,307
83,248
667
14,261
27,198
41,517
-3%
368
n.a.
22,130
10,577
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
172,372
17,310
40,923
39,872
n.a.
10,212
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
42,996
3,833
7,837
296
1,708
n.a.
10,144
46,352
220
7,296
16,718
22,119
3,592
694
558
30
280
n.a.
5,687
37,954
95
7,161
14,006
16,693
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
388
n.a.
n.a.
n.a.
n.a.
240
n.a.
n.a.
n.a.
n.a.
148
24,715
21,885
4,964
1,243
1,426
22,431
2,428
1,747
780
n.a.
13,658
500
320
272
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3,721
205,427
134,980
148,435
29,566
13,396
160,217
563,637
967
157,360
158,302
76,087
4,129
15,997
110,840
442,359
48
91,047
145,600
47,434
2,161
17,096
61,549
325,223
n.a.
n.a.
n.a.
705,023
390,076
230,699
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
34,159
144,893
16,305
74,488
n.a.
46,394
n.a.
n.a.
n.a.
321,403
286,502
225,697
2,017
12,000
113
114
115
116
117
118
119
120
121
177
173
124
125
Federal funds purchased and securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and Agreement subsidiaries and IBFs
176
177
178
179
130
131
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Nontransaction savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
Super NOW accounts
Money market deposit accounts (MMDAs)
Total time and savings deposits
Total equity capital 9
Perpetual preferred stock
Surplus
Undivided profits and capital reserves
Cumulative foreign currency translation adjustments
MEMO
132
133
134
135
136
137
138
Quarterly averages
139
140 Obligations (other than securities) of states and political subdivisions
in the United States
141 Time certificates of deposit of $100,000 or more
147 Super NOW accounts, money market deposit accounts, and time deposits (other
than certificates of deposits of $100,000 or more)
143 Number of banks
Footnotes appear at the end of table 4.22
14,285
268
n.a.
n.a.
A70
4.21
Special Tables • January 1987
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices
Consolidated Report of Condition, December 31, 1985
Millions of dollars
Members
Item
1 Total assets6
5
6
7
Cash and balances due from depository institutions
Cash items in process of collection and unposted debits
Currency and coin
Balances due from depository institutions in the United States
Balances due from banks in foreign countries and foreign central banks
Balances due from Federal Reserve Banks
8
Total securities, loans and lease financing receivables, (net of unearned income)
2
3
4
9 Total securities, book value
U.S. Treasury securities
10
11
U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
12
participation in pools of residential mortgages
13
All other
14
Securities issued by states and political subdivisions in the United States
15
Other domestic securities
16
All holdings of private certificates of participation in pools of residential mortgages
17
All other
18
Foreign securities
Federal funds sold and securities purchased under agreements to resell
National
-
Nonmembers
Total
Total
12 3
State
1,909,650
1,587,304
1,237,085
350,219
322,346
188,573
97,384
20,672
33,754
10,957
25,806
160,761
90,919
17,233
22,469
8,126
22,014
123,110
66,628
14,155
19,009
6,856
16,463
37,651
24,291
3,078
3,460
1,270
5,551
27,812
6,466
3,439
11,285
2,831
3,792
1,539,555
1,260,169
994,520
265,649
279,386
295,380
116,588
43,567
225,423
89,368
30,962
176,209
70,171
26,160
49,214
19,197
4,802
69,957
27,220
12,605
17,652
25,915
121,518
11,914
399
11,514
1,793
14,012
16,950
95,709
7,995
273
7,722
1,388
12,151
14,009
72,646
6,587
177
6,410
644
1,861
2,940
23,064
1,408
96
1,312
744
3,640
8,966
25,809
3,918
126
3,792
405
101,218
86,849
65,711
21,138
14,369
1,154,640
11,685
956,878
8,983
759,420
197,458
197,763
1,142,957
947,897
6,823
752,600
2,160
195,297
2,702
195,060
Total loans, gross, by category
23 Loans secured by real estate
24 Construction and land development
75
Farmland
1-4 family residential properties
26
27
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
28
29 Loans to commercial banks in the United States
30 Loans to other depository institutions in the United States
31 Loans to banks in foreign countries
32 Loans to finance agricultural production and other loans to farmers
330,305
80,452
4,071
145,482
10,655
89,645
18,621
5,520
5,873
13,377
259,077
66,591
2,873
113,162
8,159
68,292
14,296
5,289
5,689
11,260
220,159
54,403
2,583
97,929
6,984
58,260
9,258
4,069
3,047
9,997
38,918
12,188
289
15,233
1,175
10,033
5,038
1,220
2,643
1,263
71,228
13,860
1,199
32,321
2,496
21,352
4,324
231
184
2,117
33 Commercial and industrial loans
34 To U.S. addressees (domicile)
35 To non-U.S. addressees (domicile)
388,505
382,648
5,857
326,881
321,548
5,333
252,484
248,151
4,334
74,397
73,398
999
61,624
61,100
524
2,606
1,002
420
1,816
710
342
1,609
648
304
207
61
38
790
292
77
39 Loans to individuals for household, family and other personal expenditures
(includes purchased paper)
40 Loans to foreign governments and official institutions
41 Obligations (other than securities) of states and political subdivisions in the United States . . . .
Nonrated industrial development obligations
42
43 Other obligations (excluding securities)
44
45
Loans for purchasing and carrying securities
46
236,903
3,657
57,089
43,372
13,717
72,600
23,721
48,878
195,198
3,538
48,382
36,021
12,360
67,831
22,491
45,340
162,704
2,691
35,468
26,086
9,382
43,917
11,758
32,159
32,494
847
12,914
9,935
2,979
23,914
10,733
13,181
41,705
119
8,707
7,351
1,356
4,768
1,230
3,538
47
48 Customers' liability on acceptances outstanding
49 Net due from own foreign offices, Edge and Agreement subsidiaries and IBFs
50
19,585
37,844
48,414
143,677
17,620
37,045
44,880
129,330
14,017
27,270
35,310
92,184
3,602
9,774
9,570
37,145
1,965
800
3,534
14,348
19
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
22 Total loans and leases (net of unearned income)
20
21
36 Acceptances of other banks 10
37 Of U.S. banks
38
Of foreign banks
Commercial Banks
4.21
A73
Continued
Members
Item
Nonmembers
Total
Total
National
State
51
Total liabilities and equity capital
1,909,650
1,587,304
1,237,085
350,219
322,346
52
Total liabilities7
1,781,225
1,480,965
1,155,227
325,738
300,260
53
54
55
56
57
58
59
60
61
Total deposits
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and official checks
1,388,177
1,225,047
4,145
72,563
47,651
7,129
8,249
3,358
20,035
1,116,257
979,195
3,421
54,962
44,420
6,077
7,776
3,114
17,292
892,347
791,837
3,028
46,193
32,774
4,120
3,750
1,529
9,114
233,910
187,358
393
8,768
11,645
1,957
4,026
1,584
8,178
271,921
245,852
724
17,601
3,231
1,052
473
244
2,743
67
63
64
65
66
67
68
69
70
Total transaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and official checks
473,884
384,963
3,109
15,733
35,364
6,053
7,306
1,319
20,035
396,962
316,4%
2,651
12,956
33,837
5,408
7,114
1,208
17,292
303,317
248,708
2,337
10,499
25,139
3,564
3,363
593
9,114
93,644
67,788
313
2,457
8,698
1,844
3,751
615
8,178
76,922
68,467
459
2,777
1,527
645
192
111
2,743
71
72
73
74
75
76
77
78
79
Demand deposits (included in total transaction accounts)
Individuals, partnerships, and corporations
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and official checks
382,182
296,977
3,078
12,070
35,354
6,045
7,305
1,318
20,035
326,070
248,404
2,622
10,203
33,826
5,400
7,113
1,208
17,292
242,913
190,659
2,311
8,187
25,130
3,557
3,362
593
9,114
83,157
57,745
311
2,016
8,6%
1,844
3,751
615
8,178
56,112
48,573
456
1,867
1,527
644
192
NO
2,743
80
81
82
83
84
85
86
87
88
89
90
91
Total nontransaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United States
U.S. branches and agencies of foreign banks
Other commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign branches of other U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
941,294
840,084
1,036
56,830
12,287
467
11,820
1,076
942
26
916
2,038
719,295
662,699
770
42,006
10,583
203
10,380
669
661
22
639
1,905
589,030
543,129
691
35,695
7,635
137
7,498
556
387
19
368
936
130,265
119,570
79
6,311
2,948
66
2,882
113
275
3
272
969
194,999
177,385
266
14,824
1,704
264
1,440
407
281
4
276
133
92
93
94
95
96
97
98
Federal funds purchased and securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and Agreement subsidiaries and IBFs
215,368
21,144
48,760
40,169
1,708
10,212
65,900
200,898
19,486
44,802
39,369
1,147
8,314
59,006
151,364
14,981
26,129
28,537
1,020
5,342
40,849
49,534
4,505
18,673
10,831
127
2,972
18,157
14,470
1,657
3,958
800
561
1,897
6,894
99
Total equity capital 9
128,425
106,338
81,858
24,481
22,086
1,574
47,146
24,313
6,711
2,023
959
37,188
20,346
6,055
1,498
781
31,077
16,831
5,698
1,446
178
6,111
3,514
357
52
614
9,958
3,967
656
525
4,688
362,786
293,282
224,523
33,695
29,394
271,057
1,005,996
4,557
287,550
224,163
177,364
30,215
22,470
216,728
790,187
4,252
234,681
191,154
143,081
20,111
19,361
176,435
649,434
305
52,869
33,009
34,283
10,104
3,110
40,293
140,753
131
75,236
69,119
47,159
3,480
6,923
54,330
215,809
1,095,099
50,464
219,381
906,590
42,886
173,409
722,255
31,497
140,902
184,335
11,389
32,507
188,509
7,578
45,972
607,904
473,428
3%,436
76,992
134,476
2,285
1,359
1,154
205
926
MEMO
100
101
102
103
104
105
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 o r less
Nontransaction savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
Super NOW accounts
111 Money market deposit accounts (MMDAs)
112 Total time and savings deposits
106
107
108
109
110
Quarterly
113
114
115
116
averages
Obligations (other than securities) of states and political subdivisions in the United States
Time certificates of deposit of $100,000 or more
Super NOW accounts, money market deposit accounts, and time deposits (other than
certificates of deposits of $100,000 or more)
117
Footnotes appear at the end of table 4.22
A70
4.22
Special Tables • January 1987
DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities 1 - 2 - 3
Consolidated Report of Condition, December 31, 1985
Millions of dollars
Members
Item
Total
1 Total assets'
2 Cash and balances due from depository institutions
3 Currency and coin
4 Noninterest-bearing balances due from commercial banks
S Other
6 Total securities, loans, and lease financing receivables (net of unearned income)
7 Total securities, book value
8 U.S. Treasury securities and U.S. government agency and corporation obligations
9
Securities issued by states and political subdivisions in the United States
10
11
All holdings of private certificates of participation in pools of residential mortgages
All other
12
N Federal funds sold and securities purchased under agreements to resell
14 Total loans and lease financing receivables, gross
IS
LESS: Unearned income on loans
16 Total loans and leases (net of unearned income)
Total loans, gross, by category
17 Loans secured by real estate
18 Construction and land development
19 Farmland
20
1-4 family residential properties
21
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
22
23
24
75
26
27
28
29
30
31
32
33
34
35
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family and other personal expenditures
(includes purchased paper)
Obligations (other than securities) of states and political subdivisions in the United States . . . .
Nonrated industrial development obligations
Other obligations (excluding securities)
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and Agreement subsidiaries and IBFs
Remaining assets
Nonmembers
Total
National
State
2,349,616
1,774,344
1,392,787
381,557
575,271
225,574
25,519
37,724
162,330
177,212
19,370
21,204
136,638
136,938
15,939
17,681
103,318
40,273
3,431
3,523
33,319
48,362
6,150
16,520
25,693
1,926,238
1,423,945
1,130,650
293,295
502,293
418,752
243,443
158,866
16,443
537
15,906
131,925
1,391,343
15,784
1,375,561
275,739
153,814
111,350
10,575
314
10,262
100,758
1,058,194
10,748
1,047,448
217,560
123,727
85,590
8,242
207
8,036
77,429
843,938
8,279
835,661
58,179
30,086
25,760
2,333
107
2,226
23,329
214,256
2,469
211,787
143,013
89,629
47,516
5,868
223
5,645
31,167
333,149
5,036
328,113
422,225
89,149
11,339
196,062
12,538
113,136
298,101
70,579
5,373
134,895
8,955
78,299
252,487
57,870
4,579
115,679
7,653
66,707
45,614
12,709
794
19,217
1,302
11,592
124,124
18,570
5,966
61,167
3,583
34,838
30,678
35,486
445,879
4,238
25,582
19,499
352,548
2,580
16,639
16,633
274,315
2,236
8,943
2,866
78,234
343
5,097
15,987
93,331
1,658
292,123
60,427
45,676
14,751
80,007
20,279
37,874
48,414
159,930
219,279
49,783
36,997
12,786
72,896
17,926
37,058
44,880
136,129
182,798
36,686
26,936
9,749
47,869
14,275
27,281
35,310
97,917
36,481
13,097
10,061
3,036
25,027
3,651
9,777
9,570
38,212
72,844
10,644
8,679
1,966
7,110
2,353
816
3,534
23,801
36 Total liabilities and equity capital
2,349,616
1,774,344
1,392,787
381,557
575,271
37 Total liabilities7
2,183,236
1,652,241
1,297,885
354,356
530,995
38 Total deposits
39 Individuals, partnerships, and corporations
40
U.S. government
41
States and political subdivisions in the United States
47 Commercial banks in the United States
43
Other depository institutions in the United States
44
Certified and official checks
45
All other
1,779,348
1,579,796
4,986
101,314
49,564
8,339
23,382
11,966
1,282,483
1,130,380
3,785
66,305
45,466
6,670
18,809
11,067
1,030,837
917,789
3,337
55,660
33,612
4,627
10,400
5,410
251,647
212,591
448
10,645
11,854
2,042
8,409
5,657
496,865
449,415
1,202
35,009
4,098
1,669
4,573
899
578,810
477,966
3,744
22,425
35,852
6,690
23,382
8,752
442,209
356,565
2,921
15,600
34,184
5,742
18,809
8,388
341,217
282,350
2,567
12,700
25,343
3,845
10,400
4,012
100,991
74,215
354
2,900
8,840
1,897
8,409
4,375
136,601
121,401
823
6,824
1,668
948
4,573
364
448,129
354,590
3,6%
15,226
35,838
6,673
23,382
8,723
354,974
273,568
2,885
11,438
34,173
5,731
18,809
8,370
267,181
211,861
2,533
9,222
25,334
3,834
10,400
3,997
87,792
61,707
352
2,216
8,838
1,897
8,409
4,374
93,156
81,023
811
3,789
1,666
942
4,573
353
1,200,538
1,101,829
1,242
78,890
13,712
1,648
3,215
840,274
773,815
864
50,705
11,283
927
2,680
689,619
635,439
770
42,960
8,269
783
1,398
150,655
138,376
93
7,745
3,014
145
1,282
360,263
328,015
379
28,184
2,430
721
535
218,960
21,837
49,318
40,199
1,988
10,212
71,586
202,897
19,821
45,074
39,383
1,271
8,314
61,312
152,982
15,259
26,359
28,548
1,130
5,342
42,771
49,915
4,562
18,714
10,834
141
2,972
18,541
16,062
2,016
4,245
816
717
1,897
10,274
46
47
48
49
50
51
5?
53
Individuals, partnerships, and corporations
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
All other
54 Demand deposits (included in total transaction accounts)
55
Individuals, partnerships, and corporations
56
57
States and political subdivisions in the United States
58 Commercial banks in the United States
59 Other depository institutions in the United States
60 Certified and official checks
All other
61
6? Total nontransaction accounts
63 Individuals, partnerships, and corporations
64
65
States and political subdivisions in the United States
66
Commercial banks in the United States
Other depository institutions in the United States
67
68 All other
69
70
71
72
73
74
75
Federal funds purchased and securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and Agreement subsidiaries and IBFs
Remaining liabilities
Commercial Banks
4.22
A75
Continued
Members
Item
Nonmembers
Total
Total
76 Total equity capital 9
National
State
166,380
122,103
94,902
27,201
44,276
77 Assets held in trading accounts
78
U.S. Treasury securities
79
U.S. government agency corporation obligations
80
Securities issued by states and political subdivisions in the United States
81
Other bonds, notes and debentures
82 Certificates of deposit
83 Commercial paper
84
Bankers acceptances
85 Other
28,701
9,315
2,938
11,301
257
1,318
59
2,647
328
28,413
9,304
2,938
11,205
257
1,318
59
2,621
322
17,560
4,862
1,638
7,106
111
1,009
59
2,155
243
10,853
4,442
1,301
4,099
147
309
0
466
78
288
12
0
96
0
0
0
26
6
86 Total individual retirement accounts (IRA) and Keogh plan accounts
87 Total brokered deposits
88 Total brokered retail deposits
89
Issued in denominations of $100,000 or less
90
Issued in denominations greater than $100,000 and participated out by the broker in
shares of $100,000 or less
91 Nontransaction savings deposits
92 Total time deposits of less than $100,000
93 Time certificates of deposit of $100,000 or more
94 Open-account time deposits of $100,000 or more
95 Super NOW accounts
96 Money market deposit accounts (MMDAs)
97 Total time and savings deposits
60,804
24,813
7,031
2,295
42,734
20,542
6,161
1,586
35,697
17,004
5,785
1,519
7,036
3,539
376
66
18,071
4,271
871
710
4,736
453,832
438,881
271,956
35,828
46,489
332,608
1,331,219
4,575
327,480
282,660
199,028
31,100
29,776
244,057
927,510
4,266
267,785
239,215
161,738
20,876
25,362
199,315
763,655
309
59,695
43,445
37,291
10,224
4,414
44,742
163,854
161
126,352
156,221
72,928
4,758
16,713
88,551
403,709
1,325,799
265,775
1,004,969
194,468
804,421
159,046
200,548
35,422
320,830
71,307
833,601
566,579
474,169
92,410
267,023
14,285
5,978
4,909
1,069
8,307
MEMO
Quarterly averages
98 Total loans
99 Time certificates of deposit of $100,000 or more
100 Super NOW accounts, money market deposit accounts, and time deposits (other than
certificates of deposit of $100,000 or more)
101 Number of banks
1. The data in these tables have not appeared since Mar. 31, 1984, when the
report of condition was substantially revised for commercial banks. Some of the
changes are as follows: (1) Previously, banks with international banking facilities
(IBFs) that had no other foreign offices were considered domestic reporters.
Beginning with the Mar. 31, 1984 call report these banks are considered foreign
and domestic reporters and must file the foreign and domestic report of condition;
(2) banks with assets greater than $1 billion have additional items reported; (3) the
domestic office detail for banks with foreign offices has been reduced considerably; and (4) banks with assets under $25 million have been excused from reporting
certain detail items.
2. The " n . a . " for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due to." All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge Act and Agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FF1EC 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
A76
Federal Reserve Board of Governors
PAUL
A.
VOLCKER,
Chairman
Vice Chairman
MANUEL H . JOHNSON,
OFFICE
OF BOARD
HENRY
OFFICE
MEMBERS
C.
BOB S. MOORE, Special Assistant
to the
AND
DIRECTOR
FINANCIAL
POLICY
to the
Board
OF RESEARCH
AND
STATISTICS
DIVISION
JAMES L . KICHLINE,
MICHAEL BRADFIELD, General
Counsel
J . VIRGIL MATTINGLY, JR., Deputy General
Counsel
RICHARD M . ASHTON, Associate
General
Counsel
OLIVER IRELAND, Associate
General
Counsel
RICKI R . TIGERT, Assistant
General
Counsel
MARYELLEN A . BROWN, Assistant
to the General
Counsel
OFFICE
FOR
DONALD L . KOHN, Deputy Staff
Director
NORMAND R . V . BERNARD, Special Assistant
DIVISION
LEGAL
SEGER
OF STAFF
MONETARY
JOSEPH R . COYNE, Assistant
to the Board
DONALD J . W I N N , Assistant
to the
Board
STEVEN M . ROBERTS, Assistant
to the
Chairman
WALLICH
MARTHA R.
OF THE
SECRETARY
WILLIAM W . WILES,
Secretary
BARBARA R . LOWREY, Associate
Secretary
JAMES M C A F E E , Associate
Secretary
Director
EDWARD C . E T T I N , Deputy
Director
MICHAEL J . PRELL, Deputy
Director
JARED J . ENZLER, Associate
Director
DAVID E . LINDSEY, Associate
Director
ELEANOR J . STOCKWELL, Associate
Director
MARTHA BETHEA, Deputy Associate
Director
THOMAS D . SIMPSON, Deputy Associate
Director
LAWRENCE SLIFMAN, Deputy Associate
Director
PETER A . TINSLEY, Deputy Associate
Director
SUSAN J . LEPPER, Assistant
Director
RICHARD D . PORTER, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K . ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director
(Administration)
DIVISION
OF
CONSUMER
AND COMMUNITY
AFFAIRS
DIVISION
GRIFFITH L . GARWOOD,
GLENN E . LONEY, Assistant
ELLEN MALAND, Assistant
DOLORES S . SMITH, Assistant
DIVISION
OF
SUPERVISION
Director
Director
Director
BANKING
AND
WILLIAM TAYLOR,
REGULATION
Director
FRANKLIN D . DREYER, Deputy
FREDERICK R . DAHL, Associate
DON E . KLINE, Associate
Director1
Director
Director
FREDERICK M . STRUBLE, Associate
Director
WILLIAM A . RYBACK, Deputy Associate
Director
STEPHEN C . SCHEMERING, Deputy Associate
Director
RICHARD SPILLENKOTHEN, Deputy Associate
Director
HERBERT A . BIERN, Assistant
Director
JOE M. CLEAVER, Assistant
OF INTERNATIONAL
FINANCE
Director
Director
ANTHONY CORNYN, Assistant
Director
JAMES I . GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G . MARTINSON, Assistant
Director
ROBERT S . PLOTKIN, Assistant
Director
SIDNEY M . SUSSAN, Assistant
Director
LAURA M . HOMER, Securities
Credit
Officer
1. On loan from the Federal Reserve Bank of Chicago.
EDWIN M . TRUMAN,
Director
LARRY J . PROMISEL, Senior Associate
Director
CHARLES J . SIEGMAN, Senior Associate
Director
DAVID H . HOWARD, Deputy Associate
Director
ROBERT F . GEMMILL, Staff
Adviser
DONALD B . ADAMS, Assistant
Director
PETER HOOPER I I I , Assistant
Director
KAREN H . JOHNSON, Assistant
Director
RALPH W . SMITH, JR., Assistant
Director
Board
All
and Official Staff
WAYNE D.
ANGELL
H . ROBERT HELLER
OFFICE
STAFF
OF
OFFICE
DIRECTOR
FOR
MANAGEMENT
S . DAVID FROST, Staff
Director
EDWARD T . MULRENIN, Assistant
Staff
CHARLES L . HAMPTON, Senior Technical
PORTIA W . THOMPSON, Equal Employment
Programs
FEDERAL
OF STAFF
DIRECTOR
RESERVE
BANK
THEODORE E . ALLISON, Staff
Director
Adviser
Opportunity
Officer
DIVISION
BANK
OF FEDERAL
Director
RESERVE
OPERATIONS
CLYDE H . FARNSWORTH, JR.,
DIVISION
OF
PERSONNEL
DAVID L . SHANNON,
OF THE
Director
CONTROLLER
GEORGE E . LIVINGSTON,
Controller
BRENT L . B O W E N , Assistant
DIVISION
ROBERT E . FRAZIER,
FLORENCE M . YOUNG,
Controller
OF SUPPORT
SERVICES
Director
WALTER W . KREIMANN, Associate
Director
GEORGE M . LOPEZ, Assistant
Director
OFFICE
OF THE EXECUTIVE
INFORMATION
DIRECTOR
RESOURCES
FOR
MANAGEMENT
ALLEN E . BEUTEL, Executive
Director
STEPHEN R . MALPHRUS, Assistant
Director
DIVISION
OF HARDWARE
AND
SOFTWARE
SYSTEMS
BRUCE M . BEARDSLEY,
Director
THOMAS C . J U D D , Assistant
Director
ELIZABETH B . RIGGS, Assistant
Director
ROBERT J . ZEMEL, Assistant
Director
DIVISION
STATISTICAL
OF APPLICATIONS
DEVELOPMENT
SERVICES
WILLIAM R . JONES,
Director
DAY W. RADEBAUGH, Assistant
Director
RICHARD C . STEVENS, Assistant
PATRICIA A . WELCH, Assistant
Director
Director
Director
ELLIOTT C . M C E N T E E , Associate
Director
DAVID L . ROBINSON, Associate
Director
C . WILLIAM SCHLEICHER, JR., Associate
Director
CHARLES W . BENNETT, Assistant
Director
ANNE M . D E B E E R , Assistant
Director
JACK DENNIS, J R . , Assistant
Director
EARL G . HAMILTON, Assistant
Director
WILLIAM E . PASCOE I I I , Assistant
Director
JOHN H . PARRISH, Assistant
Director
JOHN R . WEIS, Assistant
Director
CHARLES W . W O O D , Assistant
Director
OFFICE
FOR
ACTIVITIES
AND
Adviser
A78
Federal Reserve Bulletin • January 1987
Federal Open Market Committee
FEDERAL OPEN MARKET
COMMITTEE
PAUL A . VOLCKER,
WAYNE D.
E . GERALD CORRIGAN, Vice
Chairman
KAREN N .
ANGELL
ROGER G U F F E Y
MANUEL H.
H . ROBERT HELLER
THOMAS C.
NORMAND R . V . BERNARD, Assistant
Secretary
MICHAEL BRADFIELD, General
Counsel
JAMES H . OLTMAN, Deputy General
Counsel
JAMES L . KICHLINE,
Economist
E D W I N M . TRUMAN, Economist
(International)
ANATOL B . BALBACH, Associate
Economist
JOHN M . DAVIS, Associate
Economist
HORN
FRANK E .
JOHNSON
MORRIS
MARTHA R.
MELZER
HENRY C.
SEGER
WALLICH
RICHARD G . DAVIS, Associate
THOMAS E . DAVIS, Associate
DONALD L . K O H N , Associate
DAVID E . LINDSEY, Associate
ALICIA H . MUNNELL, Associate
MICHAEL J . PRELL, Associate
CHARLES J . SIEGMAN, Associate
Economist
Economist
Economist
Economist
Economist
Economist
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
ROBERT L . N E W E L L , FIRST DISTRICT,
President
W I L L I A M H . B O W E N , E I G H T H D I S T R I C T , Vice
ROBERT L . N E W E L L , First District
JOHN F. MCGILLICUDDY, S e c o n d District
GEORGE A . BUTLER, Third District
JULIEN L . MCCALL, F o u r t h District
JOHN G . M E D L I N , JR., F i f t h District
BENNETT A . BROWN, S i x t h District
President
HAL C. KUEHL, Seventh District
WILLIAM H . BOWEN, Eighth District
D E W A L T H . ANKENY, JR., N i n t h District
F. PHILLIPS GILTNER, T e n t h District
NAT S. ROGERS, Eleventh District
G . ROBERT TRUEX, JR., T w e l f t h District
HERBERT V . PROCHNOW,
SECRETARY
W I L L I A M J. KORSVIK, ASSOCIATE SECRETARY
Chairman
A79
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
MARGARET M. MURPHY, Columbia, Maryland, Chairman
LAWRENCE S. OKINAGA, Honolulu, Hawaii, Vice Chairman
RACHEL G . BRATT, M e d f o r d , M a s s a c h u s e t t s
E D W I N B . BROOKS, JR., R i c h m o n d , Virginia
JONATHAN BROWN, W a s h i n g t o n ,
D.C.
FRED S . MCCHESNEY, Atlanta, G e o r g i a
FREDERICK H . MILLER, N o r m a n , O k l a h o m a
ROBERT F . MURPHY, D e t r o i t , M i c h i g a n
MICHAEL S. CASSIDY, N e w Y o r k , N e w Y o r k
HELEN NELSON, Mill Valley, California
THERESA FAITH CUMMINGS, Springfield, Illinois
SANDRA PARKER, R i c h m o n d , Virginia
JOSEPH L . PERKOWSKI, C e n t e r v i l l e , M i n n e s o t a
BRENDA SCHNEIDER, Detroit, M i c h i g a n
JANE SHULL, Phildelphia, P e n n s y l v a n i a
NEIL J. FOGARTY, Jersey City, New Jersey
STEVEN M. GEARY, Jefferson City, Missouri
KENNETH HALL, J a c k s o n , M i s s i s s i p p i
STEVEN W. HAMM, Columbia, South Carolina
ROBERT W. JOHNSON, West Lafayette, Indiana
TED L. SPURLOCK, New York, N e w York
MEL STILLER, Boston, Massachusetts
CHRISTOPHER J. SUMNER, Salt Lake City, Utah
JOHN M . KOLESAR, C l e v e l a n d , O h i o
EDWARD N . LANGE, Seattle, W a s h i n g t o n
ALAN B . LERNER, D a l l a s , T e x a s
EDWARD J . WILLIAMS, C h i c a g o , Illinois
MERVIN WINSTON, M i n n e a p o l i s , M i n n e s o t a
MICHAEL ZOROYA, St. L o u i s , Missouri
ROBERT J. HOBBS, B o s t o n , M a s s a c h u s e t t s
THRIFT INSTITUTIONS
ADVISORY
COUNCIL
RICHARD H. DEIHL, Los Angeles, California, President
MICHAEL R. WISE, Denver, Colorado, Vice President
ELLIOTT G . CARR, Orleans, M a s s a c h u s e t t s
M . TODD COOKE, Philadelphia, P e n n s y l v a n i a
JOHN C. DICUS, T o p e k a , K a n s a s
HAROLD W . GREENWOOD, JR., M i n n e a p o l i s , M i n n e s o t a
JAMIE J. JACKSON, H o u s t o n , T e x a s
JOHN A. HARDIN, Rock Hill, South Carolina
GARY L. SIRMON, Walla Walla, Washington
FRANCES LESNIESKI, East Lansing, Michigan
DONALD F . MCCORMICK, L i v i n g s t o n , N e w J e r s e y
HERSCHEL ROSENTHAL, M i a m i , Florida
A80
Federal Reserve Board Publications
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THE
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use. Multiple
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A81
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134. S M A L L EMPIRICAL M O D E L S OF E X C H A N G E
MARKET
INTERVENTION: A R E V I E W OF THE LITERATURE,
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
The Right to Financial Privacy Act
Signature Rules in Community Property States: Regulation B
Signature Rules: Regulation B
Timing Requirements for Adverse Action Notices: Regulation B
What An Adverse Action Notice Must Contain: Regulation B
Understanding Prepaid Finance Charges: Regulation Z
by
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135. S M A L L E M P I R I C A L M O D E L S O F E X C H A N G E
MARKET
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NY, AND JAPAN, by Deborah J. Danker, Richard A.
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AND
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FINANCIAL
MERGER POLICY
INTERSTATE
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Stephen
A.
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138. A N T I T R U S T
LAWS,
JUSTICE
DEPARTMENT
GUIDE-
L I N E S , A N D T H E L I M I T S O F C O N C E N T R A T I O N IN L O -
CAL BANKING MARKETS, by James Burke. June 1984.
14 pp. Out of print.
1 3 9 . S O M E I M P L I C A T I O N S O F F I N A N C I A L I N N O V A T I O N S IN
THE UNITED STATES, b y T h o m a s D . S i m p s o n and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC M A R K E T D E L I N E A T I O N : A R E V I E W
STAFF STUDIES.- Summaries
Bulletin
Only Printed
OF
in the
THE LITERATURE, by John D. Wolken. November
1984. 38 pp. Out of print.
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.
141. A COMPARISON O F D I R E C T D E P O S I T A N D C H E C K PAY-
MENT COSTS, by William Dudley. November 1984.
15 pp. Out of print.
142. MERGERS
AND
ACQUISITIONS
BY
COMMERCIAL
BANKS, 1 9 6 0 - 8 3 , by S t e p h e n A . R h o a d e s . D e c e m b e r
1984. 30 pp. Out of print.
Staff Studies 115-125 are out of print.
143. COMPLIANCE
THE
114. MULTIBANK
DENCE
HOLDING
ON
COMPANIES:
COMPETITION
AND
RECENT
COSTS
ELECTRONIC
AND
FUND
CONSUMER
TRANSFER
BENEFITS
ACT:
OF
RECENT
EVI-
SURVEY EVIDENCE, by Frederick J. Schroeder. April
1985. 23 pp. Out of print.
IN
1 4 4 . S C A L E E C O N O M I E S IN C O M P L I A N C E C O S T S F O R C O N -
PERFORMANCE
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
126. D E F I N I T I O N A N D M E A S U R E M E N T OF E X C H A N G E M A R -
KET INTERVENTION, by Donald B. Adams and Dale
W. Henderson. August 1983. 5 pp. Out of print.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTER-
S U M E R C R E D I T R E G U L A T I O N S : T H E T R U T H IN L E N D ING
AND
EQUAL
CREDIT
OPPORTUNITY
LAWS,
by
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
1 4 5 . S E R V I C E C H A R G E S AS A S O U R C E O F B A N K
AND
THEIR
IMPACT
ON
CONSUMERS,
by
INCOME
Glenn
B.
L.
Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
128. U . S . EXPERIENCE W I T H EXCHANGE M A R K E T INTER-
1 4 6 . T H E R O L E O F T H E P R I M E R A T E IN T H E P R I C I N G O F
VENTION:
JANUARY-MARCH
1975,
BY M a r g a r e t
Greene. August 1984. 16 pp. Out of print.
129.
VENTION: SEPTEMBER 1977-DECEMBER 1979, b y Mar-
B U S I N E S S L O A N S BY C O M M E R C I A L B A N K S ,
garet L. Greene. October 1984. 40 pp. Out of print.
by Thomas F. Brady. November 1985. 25 pp.
U . S . EXPERIENCE WITH EXCHANGE MARKET INTER-
147. REVISIONS
IN
THE
MONETARY
SERVICES
1977-84,
(DIVISIA)
VENTION: OCTOBER I98O-OCTOBER 1981, b y Margaret
INDEXES OF THE MONETARY AGGREGATES, b y
L. Greene. August 1984. 36 pp.
T. Farr and Deborah Johnson. December 1985. 42 pp.
1 3 0 . E F F E C T S O F E X C H A N G E R A T E V A R I A B I L I T Y ON
IN-
Helen
148. T H E MACROECONOMIC AND SECTORAL E F F E C T S
OF
TERNATIONAL TRADE AND OTHER ECONOMIC VARIA-
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA-
BLES: A R E V I E W O F T H E L I T E R A T U R E , b y V i c t o r i a S .
TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
Farrell with Dean A. DeRosa and T. Ashby McCown.
January 1984. Out of print.
131. CALCULATIONS O F PROFITABILITY FOR U . S . D O L L A R DEUTSCHE
MARK
INTERVENTION,
by
Laurence
R.
Jacobson. October 1983. 8 pp.
132. TIME-SERIES
TWEEN
STUDIES
EXCHANGE
OF
RATES
149. T H E OPERATING PERFORMANCE OF A C Q U I R E D FIRMS
IN B A N K I N G
BEFORE
AND AFTER ACQUISITION,
1 5 0 . S T A T I S T I C A L C O S T A C C O U N T I N G M O D E L S IN
THE
RELATIONSHIP
AND
INTERVENTION:
BEA
by
Stephen A. Rhoades. April 1986. 32 pp.
ING: A R E E X A M I N A T I O N
BANK-
A N D AN A P P L I C A T I O N ,
by
John T. Rose and John D. Wolken. May 1986. 13 pp.
A82
REPRINTS
OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
A Revision of the Index of Industrial Production. 7/85.
Financial Innovation and Deregulation in Foreign Industrial
Countries. 10/85.
Recent Developments in the Bankers Acceptance Market.
1/86.
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.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
U. S. International Transactions in 1985. 5/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
A83
Index to Statistical Tables
References
are to pages A3-A75 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, 70-75
Domestic finance companies, 37
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21
Nonfinancial corporations, 36
Automobiles
Consumer installment credit, 40, 41
Production, 47, 48
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20, 70, 72, 74 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 24
Branch banks, 21, 55
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, 71, 73, 75
Federal Reserve Banks, 10
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 70, 72, 74
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20, 70-75
Commercial and industrial loans, 16, 18, 19, 20, 21
Consumer loans held, by type, and terms, 40, 41
Loans sold outright, 19
Nondeposit funds, 17
Number, by classes, 71, 73, 75
Real 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, 73
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, 70, 72, 74
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, 71, 73, 75
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, 71, 73, 75
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 and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66
A84
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, 70
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, 72, 74
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 , 1 3
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks, 8 (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, 71
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, 39, 40
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
Thrift institutions, 3 (See also Credit unions, Mutual
savings banks, and Savings and loan associations)
Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21, 71,
73, 75
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, 70, 72, 74
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)
A85
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Joseph A. Baute
George N . Hatsopoulos
Frank E. Morris
Robert W. Eisenmenger
N E W YORK*
10045
John Brademas
Clifton R. Wharton, Jr.
Mary Ann Lambertsen
E. Gerald Corrigan
Thomas M. Timlen
Buffalo
14240
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
Owen B. Butler
James E. Haas
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
E. William Nash, Jr.
Sue McCourt Cobb
Patsy R. Williams
Sharon A. Perlis
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Robert E. Brewer
Silas Keehn
Daniel M. Doyle
W.L. Hadley Griffin
Mary P. Holt
Sheffield Nelson
William C. Ballard, Jr.
G. Rives Neblett
Thomas C. Melzer
Joseph P. Garbarini
John B. Davis, Jr.
Michael W. Wright
Marcia S. Anderson
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
Peyton Yates
Walter M. Mischer, Jr.
Ruben M. Garcia
Robert H. Boykin
William H. Wallace
Robert T. Parry
Carl E. Powell
Cincinnati
Pittsburgh
45201
15230
RICHMOND*
23219
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
N e w Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
K A N S A S CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
S A N FRANCISCO
59601
64198
80217
73125
68102
75222
79999
77252
78295
94120
Los Angeles
90051
Alan C. Furth
Fred W. Andrew
Richard C. Seaver
Portland
Salt Lake City
Seattle
97208
84125
98124
Paul E. Bragdon
Don M. Wheeler
John W. Ellis
Vice President
in charge of branch
Charles A. Cerino
Harold J. Swart
Robert D. McTeer, Jr.
Albert D. Tinkelenberg
John G. Stoides
Delmar Harrison
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
James L. Stull
Joel L. Koonce, Jr.
J.Z. R o w e
Thomas H. Robertson
Thomas C. Warren
(Acting)
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, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A86
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
i
1
I
ALASKA
©
if
I
i
Ii .
1
7 / p
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
•
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
X v
@FedFRASER