Full text of Federal Reserve Bulletin : January 1989
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VOLUME 7 5 •
NUMBER 1 •
JANUARY 1 9 8 9
FEDERAL RESERVE
BULLETIN
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 • Donald L. Kohn • Michael J. Prell • Edwin M. Truman
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T.
Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
L DROUGHT,
ECONOMY
AGRICULTURE,
AND THE
In 1988, for the fourth time in the past
fifteen years, drought and its repercussions
dominated agricultural developments. The
losses to drought reduced the growth of
gross national product, boosted consumer
food prices, and altered the financial prospects of farmers in diverse ways. Previous
episodes of drought suggest, however, that
both farmers and the economy can adjust
fairly readily to drought's adversities.
13 INDUSTRIAL
PRODUCTION
Industrial production increased an estimated 0.4 percent in October.
15 STATEMENT TO THE DEFICIT
COMMISSION
Alan Greenspan, Chairman, Board of Governors, discusses the federal government
deficit in terms of its long-term corrosive
impact and the compelling case for acting
promptly to bring it down, before the National Economic Commission, November
16, 1988.
19
ANNOUNCEMENTS
Change in reporting requirements under the
Home Mortgage Disclosure Act.
Proposal to rescind an existing rule in Regulation Y permitting bank holding companies to acquire operations subsidiaries; proposal to permit bank holding companies
that have established operations subsidiar-
ies to retain them without further approval;
proposed revisions to the official staff commentaries for Regulations E and Z.
Change in Board staff.
Admission of five state banks to membership in the Federal Reserve System.
20 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET
COMMITTEE
At its meeting on September 20, 1988, the
Committee approved a directive that called
for maintaining the current degree of pressure on reserve positions. The members
decided that somewhat greater reserve restraint would be acceptable, or slightly
lesser reserve restraint might be acceptable,
over the intermeeting period, depending on
indications of inflationary pressures, the
strength of the business expansion, the behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets. The reserve
conditions contemplated by the Committee
were expected to be consistent with growth
of M2 and M3 at annual rates of about 3
percent and 5 percent respectively over the
four-month period from August to December. The members agreed that the intermeeting range for the federal funds rate
should be left unchanged at 6 to 10 percent.
25 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
A i FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available as of
November 28, 1988.
A84 FEDERAL OPEN MARKET
COMMITTEE
AND STAFF; ADVISORY
COUNCILS
A86 FEDERAL RESERVE
PUBLICATIONS
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
BOARD
A89 INDEX TO STATISTICAL
TABLES
A71 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A 9 i FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A82 BOARD
A92 MAP OF FEDERAL
OF GOVERNORS
AND
STAFF
RESERVE
SYSTEM
Drought, Agriculture, and the Economy
This article was prepared by John Rosine and
Nicholas Walraven of the Board's Division of
Research and Statistics. Diana Lis ton Stella
contributed research assistance.
In 1988, for the fourth time in the past fifteen
years, drought and its repercussions dominated
agricultural developments. The drought came in
a year of reduced plantings and cut the total
output of crops to a level 20 percent below the
average of the four preceding years; it shriveled
the output of feed grains to roughly half the
four-year average. The loss of production caused
a steep rise in the prices received by farmers for
crops, 23 percent overall from March to August.
The price of soybeans increased nearly 40 percent over that period, and corn prices surged
despite huge surpluses from previous harvests.
The drought had a noticeable effect on overall
measures of U.S. economic performance in 1988.
According to estimates by the Department of
Commerce, the output losses in agriculture reduced the annual rate of real growth in the gross
national product nearly a full percentage point,
on average, over the last three quarters of 1988.
In addition, the initial shock to crop prices began
showing up quickly at the consumer level and
added to the rate of increase in the consumer
price index over the summer months and into
early autumn. Other repercussions of the sharp
rise in crop prices, including the effects on livestock and meat prices, probably still are working
their way through the economy, but perhaps with
less intensity than many observers had expected
initially.
In the farm sector itself, the drought's effects
were dramatic, but uneven. At one extreme,
those producers with little or no loss in production and large stockpiles from previous harvests
benefited enormously from the steep rise of crop
prices and ended up better off than they would
have been had the drought not occurred. However, a number of other producers suffered set-
backs that may have been only partly offset by
insurance indemnities or federal disaster payments.
Overall, farmers probably were better positioned to withstand drought losses in 1988 than
they would have been three or four years earlier,
when the farm financial problems of the 1980s
were at their most intense. A recovery in the
farm economy that began in 1986 picked up
momentum in 1987, and most of the readings for
1988 look favorable despite the drought. In particular, most farmers continue to have an ample
cash flow that should enable them to service debt
in the period ahead; and, while some droughtinduced loan defaults may occur, most farm
lenders should be able to handle them without
incurring a serious decline in profitability.
DROUGHT
LOSSES AND REAL
GNP
In most years, changes in farm output do not
have a marked influence on the growth in gross
national product. However, as was evident in
1988, swings in farm output sometimes are big
enough to have a sizable influence on GNP
growth, at least over the relatively short span of
three or four quarters. These swings pose special
challenges for national income accountants at the
Department of Commerce, and they also necessitate added caution in the interpretation of incoming GNP data.
Economic
Considerations
The broad economic effects of the drought are
relatively straightforward. Drought causes a onetime reduction in farm crop output and in the
economy's aggregate output. Usually, this reduction is reflected in gross national product mainly
as drawdowns in the inventories of crops owned
by farmers and those owned or financed by the
government's Commodity Credit Corporation.
2
Federal Reserve Bulletin • January 1989
On the demand side, the price increases caused
by drought reduce both the volume of farm
exports and the real income and spending of
households; when inventories are small initially,
the price increases will be larger, requiring that
real consumer spending and exports absorb more
of the shock to output. The rate of growth of real
GNP slackens as crop losses mount, but then
bounces back when the drought ends. Typically,
farm crop output has rebounded in the year after
a drought (chart 1). During the rebound the
effects of the losses on GNP are reversed, and,
for a time, real GNP growth is higher than would
otherwise be the case.
Accounting
Considerations
The challenges of measuring the changes in farm
output in the national income and product accounts stem largely from the annual nature of the
crop production process and the difficulties of
dividing that process into quarterly segments.
Because farm output is influencing GNP growth
so heavily at present, it is worthwhile sorting
through some of these accounting issues in detail.
Many production processes that are captured
in GNP are of short duration. Some services—
haircuts, for example—are produced each day,
and a quarterly estimate of the production of
these services can be obtained by adding up the
1. Crop production 1
daily output during the quarter. Similarly, one
can determine the quarterly output of many
goods by counting the number of items that come
off assembly lines each day; or, alternatively,
one can infer output from the labor and capital
inputs that are employed on the assembly line.
Some production processes (building a skyscraper, for example) may take a relatively long
time, but the value added in the process is
virtually certain to yield a finished product.
Hence, progress in production can reasonably be
allocated to appropriate quarters.
Agriculture differs from these production processes. Crop production takes a relatively long
time, a year for many crops; and, because natural
disaster poses a risk during the growing season,
there is no certainty until harvest that an actual
product will result. In addition, inferring output
from the spending on purchased inputs is difficult
because rainfall—a given of nature—often is the
dominant influence on crop production.
As a result of these difficulties, the Department
of Commerce, in the early part of the annual crop
cycle, is forced to devise quarterly estimates of
farm output from a forecast, prepared by the
Department of Agriculture, of what annual production eventually will be. Drought, of course,
causes production to deviate from its anticipated
course. However, evidence that output is irreversibly off track often will not be available until
midyear or later. Because analysts cannot predict the duration of the drought, they cannot
know for sure how much production was lost
until late in the year. Along the way, considerable judgment necessarily enters into the quarterly estimates of farm output.
Accounting for the 1988
1 I I I I 1 I I I I
1965
1970
I I I I 1 I I I
1975
1980
1985
70
1988
1. The series plotted is the index of farm crop production compiled
by the U.S. Department of Agriculture; the index is constructed by
weighting the physical output of crops by the prices of a base period.
The 1988 plot is an estimate from the U.S. Department of Agriculture,
"Crop Production Report," November 9, 1988. Here and in following
charts the shaded areas denote years in which losses from drought
were substantial.
Losses
The 1988 drought occurred somewhat earlier in
the farm production cycle than most previous
droughts, and by mid-July it was fairly clear that
drought losses would be severe. In its July report
on real gross national product, the Commerce
Department estimated an annual loss of $11
billion. The estimate was raised to $14 billion a
month later, reflecting surveys by the Agriculture
Department that showed further deterioration of
crops into early August. Subsequently, crop con-
Drought, Agriculture, and the Economy
ditions improved slightly, and the estimate of the
annual loss was scaled back a bit, to $12.8 billion
in the November GNP report.
Of the total annual loss, about one-sixth was
allocated to the second quarter of 1988, roughly
one-third was allocated to the third quarter, and
about one-half was allocated to the fourth quarter. In arriving at this quarterly breakdown, the
Department of Commerce took account both of
the time at which crop losses were recognized
and of the time at which the affected crops would
have been harvested.
According to the estimates of drought loss in
the GNP report released in late November, real
farm output in the fourth quarter, at an annual
rate, was more than $25 billion below what it
would have been in the absence of drought.
Analysts at the Department of Agriculture have
projected that farm output will rebound in 1989,
as it has in years following past droughts, and
officials at the Department of Commerce have
indicated that this rebound will add substantially
to the rate of GNP growth in the first quarter of
the new year.
A Cautionary
DROUGHTS
AND CONSUMER
FOOD
3
PRICES
In each drought of the past fifteen years the
tightening of supplies of agricultural crops has
boosted crop prices (chart 2) and stirred concerns that the cost of food to consumers would
rise dramatically.
However, in each of these episodes—at least
up to the current one—the runup in consumer
food prices, relative to the general rate of inflation, has tended to be reversed fairly quickly,
with little lasting influence on overall price
trends. This limited price response to drought is
evident in table 1 and in chart 3, which show the
behavior of food prices and other consumer
prices in the three most recent episodes of
drought.
2. C r o p prices 1
1977 = 100, ratio scale
Note
During a period of severe drought losses—and
during the period of recovery from drought—the
interpretation of short-run changes in gross national product requires added caution. Most
economists view such changes as being caused
mainly by shifts in aggregate demand; and observed changes in real GNP are used to draw
inferences about the strength of demand. Such
inferences may be misleading, however, if a
drought-induced change in GNP is taken to be a
signal of underlying growth in demand. Estimates of GNP that adjust for the drought-related
swings in farm output probably provide a better
gauge of the underlying course of the economy
and the associated pressures of demand on the
economy's resource base. Thus, fundamentally,
the economy probably was stronger over the last
three quarters of 1988 than was indicated by the
changes in GNP alone. Likewise, the economy's
fundamental strength in the first quarter of this
year likely will be exaggerated by the projected
rebound in farm output.
I I I I I I I I I I I I I I I I
1965
1970
1975
1980
1985
I l l
1988
1. The series plotted is the index of prices received by farmers for
crops, compiled by the U.S. Department of Agriculture and seasonally adjusted and transformed into quarterly averages by the authors.
The last plot is the average for October and November 1988.
1. C h a n g e s in c o n s u m e r p r i c e s d u r i n g t h e s i x
quarters after the o n s e t of s e l e c t e d droughts1
Percent, compound annual rate
Year of drought
1974
1980
1983
Food
8.8
7.6
3.3
All items
All items
food
excluding food excluding
and energy
9.2
10.0
4.2
9.0
10.0
4.9
1. Changes are measured from the second quarter of the year in
which the drought occurred to the fourth quarter of the following year.
Offsetting Macroeconomic
Influences
One reason why the droughts of recent years
have not led to larger and more sustained increases in consumer prices is that, on each
4
Federal Reserve Bulletin • January 1989
3. Effect of poor crops on food prices
Adjustments
within the Farm
Sector
Quarterly change in percent, annual rate
1974-76
20
, CPI for food
CPI excluding food
I
I
I
I
I
I
f
I
1980-82
1983-85
10
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
Adjustments within farming frequently have
facilitated a relatively .smooth adjustment of the
economy to drought losses. More than most
nations, the United States tends to carry large
inventories of farm crops that can be drawn upon
in the event of a poor harvest. In addition,
consumers of farm crops, particularly farmers
who fatten livestock for slaughter, often curtail
demand after a small crop and thus begin relieving the pressures on crop prices fairly soon after
harvest. The prospect of bringing unused acreage
back into production in the next growing cycle
also may help to stem upward price pressures;
indeed, because futures traders tend to anticipate
the next crop, crop prices may begin falling quite
early in the next cycle if crops get off to a good
start.
The degree to which these adjustments within
farming soften the effects of drought can vary a
lot, depending on initial conditions such as the
size of stockpiles and on the severity and duration of drought. For example, because of the
drought in 1988, stocks of the major crops are
likely to be reduced considerably before the 1989
harvest (chart 4); thus, should drought recur in
1989, inventories would provide less protection
4. Crop inventories
Supply at beginning of harvest, in months'
occasion, important macroeconomic influences
were working in an opposite direction, helping to
restrain increases in food prices. In 1974, a
deepening economic recession forestalled larger
price increases at the consumer level. In 1980,
spiraling interest rates and sluggish growth
blunted upward price pressures in farm commodity markets. In 1983, a rapidly appreciating dollar
restrained price advances. Unfortunately, the
effect of these countervailing influences on food
prices is difficult to determine with a high degree
of statistical precision because the number of
drought episodes is so few and the factors influencing prices are so numerous. The coincidence
of past droughts with the countervailing macroeconomic influences probably was happenstance, and in a more expansionary economy,
drought losses might well generate price effects
different from those observed in the past.
1. Supply is measured by relating stocks at the beginning of a
harvest to total use of the crop during the preceding marketing year.
The primary data are from the U.S. Department of Agriculture; they
have been adjusted to months' supply by the authors. For wheat, the
beginning of the harvest is June 1; for corn and soybeans it is
September 1. The figures for 1989 are derived from projections by the
Department of Agriculture as of December 12, 1988.
Drought, Agriculture, and the Economy
5. Acreage withheld from production under
government programs
5
1989 will likely be smaller than in recent years,
and plantings are expected to be larger.
Millions of acres
k
—
/\
\
—
1
1 1
1965
1
1 1 1 1
1i
K u u u l1 1 \
1970
1975
1 /
1980
J
rm
75
—
50
—
25
Transmission of a Drought
to Consumers
Other ways in which the impact of the drought is
cushioned center around the mechanisms by
which the initial shock to farm crop production
spreads through the economy. The transmission
process works through many channels. Some
carry the output shock through farm prices
quickly and directly to consumers. Other channels carry the effects so slowly and indirectly that
when they finally show up at the supermarket,
they may be diffused and inextricably entangled
with other influences. In some instances, the
initial price increases due to the drought already
are being reversed by the time the later price
effects appear to consumers. To categorize these
channels more rigorously, it is convenient to
consider three kinds of food commodities that
differ mainly in the timing of their production
responses to drought. Although the discussion
focuses on drought effects, other influences, such
as the trends in labor costs, also have been
shaping price developments over this period and
would need to be considered in a more general
discussion of price determination.
1I 1 1 1 1 1
1985
Shock
1988
SOURCE. U.S. Department of Agriculture. The figure for 1988 is
preliminary.
against price increases and the associated adjustments in consumption. By contrast, more spare
acres can be brought back into production in
1989 than in some previous droughts. In recent
years, the government has encouraged producers
to take large amounts of acreage out of production in an effort to reduce surplus stocks (chart
5). These acreage retirements were especially
large in 1987 and 1988. However, with the
drought causing crop inventories to contract
much faster than had been expected, policy now
is shifting back toward less production restraint.
The amount of land taken out of production in
2. Changes in consumer food prices, drought of 1988'
Percent
1987
Pre-drought,
December 1987 to
May 1988
Drought
May to September
1988
Food
Fresh fruits and vegetables
Cereals and bakery products
Fats and oils
Processed fruits and vegetables...
Poultry
Eggs
Beef
Pork
Food away from home
Dairy
Fish
Other meats
Sugar and sweets
Nonalcoholic beverages
Other prepared foods
October
3.5
3.6
9.2
.2
100.0
17.9
4.2
1.7
4.6
-9.2
-17.5
6.7
-1.8
-13.9
7.3
8.0
10.5
14.4
17.1
9.6
5.4
39.2
11.4
13.2
13.3
60.2
62.2
7.4
-9.8
-1.1
.7
1.0
1.3
-3.0
2.9
-.3
-.8
7.2
8.4
1.6
4.0
2.7
.9
6.4
3.8
3.6
1.8
10.0
4.2
1.7
-3.5
4.2
4.3
1.6
3.1
0.4
3.3
.9
2.5
5.0
4.2
.7
2.7
8.5
4.0
6.0
.3
.9
1.5
.2
.3
.1
.8
38.6
7.7
2.4
2.6
2.2
5.1
6.4
1. Calculations are based on data from the consumer price index for
all urban consumers. Changes for periods longer than one month are
at compound annual rates.
MEMO: R e l a t i v e
importance in the
food price index,
December 1987
6
Federal Reserve Bulletin • January 1989
Crops on a Short Production Cycle. Because
fresh fruits and vegetables are perishable, retail
supplies turn over quickly. Hence, production
losses tend to affect consumer prices within a
matter of days; but because these crops have a
short growing cycle—60 to 120 days—prices can
also fall quickly. This pattern apparently held in
1988. From May to September, consumer prices
of fresh fruits and vegetables rose about 40
percent at an annual rate (table 2); in October,
these prices fell sharply, as a new crop less
affected by the summer's heat and drought began
to reach consumers.
Crops on an Annual Cycle. Price increases for
foodstuffs that are on annual production cycles
and are storable also appear relatively quickly in
the supermarket, reflecting the immediate revaluation of farm and food inventories when crop
supplies tighten. In 1988, for example, higher
grain prices translated directly and quickly into
accelerated increases in the consumer prices of
cereal and bakery products. Similarly, higher
soybean prices prompted quick upward moves in
the retail prices of vegetable oils. Higher farm
prices for processed fruits and vegetables, many
of which are grown on an annual cycle, boosted
the inflation rate for these foods at the consumer
level. With all else constant, prices of such
products will remain at higher levels than would
otherwise be the case until supplies are restored,
which may take at least a year for these annual
crops. Fortunately, the price of the consumer's
breakfast cereal, to take one obvious example,
will not rise proportionately as much as the
wheat or oats that go into it because processing
and marketing account for so much of the value
added of such products.
Lagged Transmission through the Livestock
Sector. The transmission of increases in crop
prices through the livestock sector is more complicated. Changes in farm prices for poultry,
which has a short production cycle, often confront consumers quickly and directly. Indeed,
from May to September of 1988, poultry prices
rose about 60 percent at an annual rate, reflecting
the effects of both drought and strong demand.
Cattle and hogs have a more extended production cycle, and the transmission of the effects of
crop losses to the consumer level through this
channel may be lengthy. The key factor affecting
the transmission is how cattle and hog producers
alter their breeding herds in response to drought.
These herds are capital assets, whose value is
determined by the number of marketable animals
and the income that these assets are expected to
generate over time. If farmers are not expecting
income from the assets to be particularly high,
the extra costs of feed imposed by a drought may
trigger an extensive liquidation of herds, adding
to meat supplies in the near term (and lowering
prices) but reducing supplies in the longer term
(and raising future prices). Conversely, when
farmers expect strong earnings, many may try to
absorb the temporary costs connected with
drought, rather than sell off profitable assets
prematurely.
In 1988, the selloff appears to have been relatively moderate, at least for cattle. After several
years of liquidating herds, cattle producers are
perhaps becoming more eager to hold their animals in the hope of enjoying better profits in the
future. In addition, subsidies the federal government provided in the wake of the drought encouraged producers to retain their livestock. Furthermore, the nation's cattle herd has shrunk
substantially since the mid-1970s, so perhaps
producers find more easily the hay or rangeland
needed to carry animals through a drought.
In any event, the prospective liquidation of
herds that aroused concern around mid-1988 did
not materialize; and beef prices, instead of falling, actually increased from May to September.
As a corollary, because the liquidation was relatively small, its end should have little influence
on cattle prices in 1989 (although the longer-run,
cyclical rebuilding of herds may influence them).
Nor did hog producers engage in a massive and
immediate liquidation in the wake of drought.
However, some liquidation of breeding sows
may have occurred in late autumn, judging from
the very low levels to which hog prices fell
around early November; futures markets in early
December were pointing to a fairly quick rebound in hog prices over the winter months.
The Changing Patterns of Price Transmission.
Changing patterns in consumption may be causing consumer food prices to respond more
Drought, Agriculture, and the Economy
quickly to drought effects than they did in the
past. For example, poultry, which responds
quickly, has become more important in the consumer's diet, at the expense of beef and pork,
where the price transmission tends to lag. Dietary shifts toward fresh fruits and vegetables
work in the same direction. Also, the policy
changes that discourage liquidation of herds tend
to damp the cycle in livestock prices that would
otherwise be set in motion by drought. Such
changes notwithstanding, the diversity of the
transmission mechanisms in the farm and food
sectors still makes it difficult to know precisely
how the effect of drought on food prices will play
itself out in any given episode.
DROUGHT AND THE FINANCIAL
OF FARMERS
CONDITION
The 1988 drought bestowed windfall gains on
some farmers and inflicted painful losses on
others. Some of the farmers who suffered losses
will tighten their belts, draw on reserves of cash
or credit, and start looking forward to another
production cycle. Others who suffered big losses
and whose reserves against bad luck were slimmer will face more difficult adjustments. The
proportion of farmers in this latter group will
become more clear only as farmers and their
creditors sit down this winter to plan production
and financing strategies for the next crop year. A
reasonable guess at present is that, as in past
droughts, most farmers will find ways to adjust,
short of insolvency or radical restructuring of
their farm businesses.
Boom and Bust in
retracing the previous runup (chart 6). Farm
debt, which had been used heavily in financing
the boom of the 1970s, kept rising in the early
1980s, but then followed asset values downward.
Farmers who had purchased land at high prices
with borrowed money were squeezed in the
contraction, and many went broke or were
forced to sell off part of their farms in order to
stay in business. Lenders who had financed the
boom in land values suffered large loan losses,
and many failed.
When the boom started in the 1970s, crop
failures abroad and concerns about persistent
world food shortages were thought to have been
its dominant causes. Later on, it became clear
that the boom had been rooted more deeply than
many had perceived in the particular macroeconomic conditions of the 1970s: strong growth in
demand in the industrial economies, a cheap
dollar, accelerating inflation, and low or negative
real interest rates. When these macroeconomic
forces reversed in the early 1980s, the boom
collapsed.
Drought and Land
Prices
The frequent droughts of the past decade and a
half appear to have played only a limited role in
shaping the broad cycle of boom and bust. The
1974 drought helped to reinforce concerns about
world food shortages in the mid-1970s; the 1980
drought stirred similar concerns. The 1983
6. Farm real estate values1
1977 = 100, ratio scale
Agriculture
To help set the stage for a discussion of the
drought's potential impact on farm finances, a
brief review of the trends of the past few years is
useful.
The boom in agriculture that dominated the
1970s came to an end early in the current decade,
and an extended financial contraction followed.
A central feature of this contraction was a massive reversal of trends that had shaped the farm
balance sheet in the 1970s. Prices for farm real
estate—the main asset—plunged in the 1980s,
7
1988
1. The series plotted is the U.S. Department of Agriculture index of
the average value per acre of farmland and buildings in the United
States excluding Hawaii and Alaska. The series has been deflated by
the authors using the implicit price deflator for gross national product.
Data for this annual survey currently are collected around February 1;
for the years 1982-85, they were collected on April 1, and for 1970-75,
on March 1.
8
Federal Reserve Bulletin • January 1989
drought, coming at a time of large grain surpluses
and a flagging farm economy, amplified concerns
about the financial plight of farmers. Although
the droughts may have affected land prices in
some regions or localities, national trends in land
prices did not shift significantly in any of these
episodes. Land prices were rising rapidly when
the 1974 drought hit, and they kept on rising.
Similarly, the influence of the 1980 and 1983
droughts on trends in land prices appears to have
been small.
These patterns seem consistent with theories
about the determination of land prices. In forming long-run expectations of the earnings from
land, farmers presumably weigh the risks of
drought. As experience accumulates, land in
drought-prone areas may decrease in value relative to land in areas where droughts have typically been infrequent and mild. However,
prices—and the long-run expectations upon
which prices depend—probably do not shift dramatically in response to a particular drought
unless its length or severity is well outside normal experience.
The limited evidence on trends in land prices
since mid-1988 suggests that, as in the past, the
drought may have affected prices in some regions
but has not disturbed national trends. After several years of steep decline, nominal land prices
for the country turned up a bit in the year ended
February 1, 1988; and sharp increases were apparent in some mid western regions, including
those in which previous price declines had been
the steepest. Data for more recent quarters suggest that these trends have continued. In the
Chicago Federal Reserve District, where crop
losses were substantial, land prices kept rising in
the third quarter of 1988, to a level about 12
percent above a year earlier. Prices in the Upper
Midwest, where crop damage also was severe,
appear to have weakened after midyear but have
maintained the moderate year-to-year gains reported in previous quarters, according to surveys
by the Federal Reserve Bank of Minneapolis.
Land prices in the Kansas City District, where
the losses to drought were small, remained on a
firm uptrend in the third quarter.
The trends in prices of land in coming months
will be a key determinant of the financial health
of the farm economy. For highly leveraged oper-
ators, a steady or rising price of land helps
preserve a cushion against insolvency. For cashshort operators, a rising price of land provides a
reserve of collateral that helps to ensure continued access to credit. A continuation of the trends
in prices of land seen in recent quarters would
thus be a sign that the losses to drought have
not seriously derailed the improvement in farm
finance that has emerged over the past two
years.
Farm Debt
Like the value of land, the value of farm debt has
fallen steeply in the 1980s, especially in real
terms (chart 7). And as with land, the longer-run
trend in farm debt appears to have been little
affected by past droughts.
One important indicator of the desirability of
debt—real returns on farm assets relative to the
real cost of borrowing (lower portion of chart
7)—was sharply negative in the first half of the
1980s but has rebounded in the past two years
and may be helping to slow the contraction of
real farm debt. In this century's previous big
contraction—that of the interwar period—real
farm debt continued to shrink even after the real
return on farm assets had been above the cost of
debt for a fairly extended period. Apparently, the
scars of the long depression in farming during the
1920s and early 1930s had fostered an aversion to
debt among farmers.
The reluctance to incur debt probably is less
pronounced in the current episode. Although
many farmers have gone through a difficult period in the 1980s, the effect of these difficulties on
their attitudes toward debt may have been
smaller than that in the interwar years, when the
hard times lasted longer and government programs to aid farmers were much less generous.
Also, farmers today probably are better positioned to recognize improved financial opportunities and take advantage of them than their
predecessors of two generations ago were.
Hence, if real asset values remain stable or rise,
and if the relation of the return on assets to the
cost of debt remains about the same as it is now,
then the odds seem fairly high that the big
contraction in farm debt of the 1980s is in fact
about over.
Drought, Agriculture, and the Economy
7. Farm assets and debt
Billions of 1987 dollars, ratio scale
Percentage points
Spread between total real return and
real cost of debt 2
9
investment of earlier years—investment that was
undertaken, with public assistance in many
cases, partly in order to take advantage of price
runups such as that of 1988. By selling these
inventories, farmers acquire the liquidity needed
for living expenses and for debt service. At some
point—probably in 1989, according to the Department of Agriculture's projections—farmers
will want to rebuild stocks, and cash income
therefore will drop back somewhat.
An important qualification regarding the effect
of the drought on farm income is that some
individuals may have lost all their crops and have
had no inventories held over from previous
years. But some of these producers also may
have purchased crop insurance to guard against
the contingency of drought, and many producers
will benefit from government "disaster" payments, which are being channeled to those who
suffered the largest losses from the drought.
THE RECENT
EXPERIENCE
OF FARM
LENDERS
1. Data are for the farm sector excluding assets and debt related to
farm households. To obtain measures of assets and debt in 1987
dollars, data from the U.S. Department of Agriculture on the nominal
value of assets and debt have been adjusted for changes in general
purchasing power, using the implicit price deflator for personal
consumption expenditures.
2. The real return on farm assets is the income return to farm assets
plus the capital gain (or loss) adjusted using the implicit price deflator
for personal consumption expenditures.
SOURCE. Primary data are from the U.S. Department of Agriculture. See also Agricultural Finance Databook, Statistical Release
E.15 (Board of Governors of the Federal Reserve System, forthcoming). The plots for 1988 are derived mainly from forecasts by the
Department of Agriculture.
Farm
Income
Even those producers who try to anticipate
drought and prepare for it might temporarily
need to boost their reliance on debt if drought
losses cut unexpectedly deeply into the flow of
cash income. At present, some farmers are being
squeezed, but overall, cash flow apparently is
being well maintained. According to the Agriculture Department's current projections for 1988,
net cash income, a measure of farm earnings that
includes the revenue from the sales of farm
inventories, remained at its high 1987 level. In
effect, farmers are cashing in on the inventory
Before the onset of the drought, farm lenders had
been recovering from the financial stresses of
earlier years, helped by the improvement in farm
finances and some government assistance. For
both the Farm Credit System and commercial
banks, the volume of accruing farm loans had
turned up a bit by mid-1988, and the volume of
problem loans had shrunk. Profits of both sets of
institutions had improved, and for most, the risk
of failure had diminished. Indicators of the financial performance of farm lenders since the
drought currently are sketchy; in the past, the
effect of drought on lenders' performance generally was limited.
Problem
Loans
The improvement in the farm loan situation is
illustrated by the reductions in the proportion of
farm loans that are delinquent, shown in the
upper part of chart 8. These problem loans are
those on which payment in full of principal and
interest is not expected; thus the stock of these
loans increases as borrowers miss repayment
deadlines or as lenders estimate that the likeli-
10 Federal Reserve Bulletin • January 1989
8. Problem farm loans, major lenders
Percent of farm loans outstanding
Delinquent farm loans as of December 311
4
than lA percent of loans outstanding. In large
part, this improvement has coincided with the
recent stability in the nominal value of farmland
and the strength in farm income, which together
have limited the inflow of new loans into delinquency and have helped improve some loans
enough to remove them from nonaccrual status.
The 1988 drought seems unlikely to reverse the
improvement in lenders' portfolios of farm loans
over the past two years. As was discussed earlier, many farmers appear likely to have ample
cash to meet debt payments as they sell their
inventories at much higher prices. Farmers who
had poor yields and small stocks of previous
crops have suffered a reduction in income, of
course. But overall, the farm sector will have
ample cash on hand to service debt, and at
present, widespread increases in problem loans
due to the drought appear unlikely.
Profits of Farm
1. For the Farm Credit System, delinquent farm loans are defined as
nonaccrual loans; the data include loans by the Bank for Cooperatives. The data for 1988 are as of September 30 for the Farm Credit
System and June 30 for commercial banks.
For commercial banks, the data cover farm loans, other than those
on real estate, that are past due 90 days or more or are in nonaccrual
status. The data include estimates for the minority of banks that are
not required to report delinquencies; these estimates assume that
those banks experienced the same delinquency rate as did the banks
that do report.
2. The data for commercial banks cover farm loans other than those
on real estate; they are not available before 1984. Data for 1988 include
the actual observations through midyear for commercial banks and
through the first three quarters for the Farm Credit System and an
estimate for the balance of the year that assumes that net chargeoffs
continue at the same rate for both groups of lenders.
SOURCE. Data for commercial banks are from their quarterly reports
of condition; data for the Farm Credit System are from Farm Credit
System, Quarterly Information Statements, selected issues.
Lenders
Agricultural banks (those who lend more heavily
to farmers than do banks in general) were consistently more profitable than nonagricultural
banks of a similar size throughout the 1970s, but
with the onset of farm financial difficulties in
1982, they rapidly became less profitable (chart
9). However, the decline in the profitability of
agricultural banks apparently bottomed in 1986,
when net chargeoffs peaked; subsequently, the
rate of return for agricultural banks has rebounded. The profits of farm banks overall do
9. Profitability of agricultural and
small nonagricultural banks 1
Percent
hood of repayment has fallen. The level of problem loans decreases as loans are charged off or as
the outlook for repayment becomes brighter and
the loans are returned to regular loan status. As
may be seen, the share of past-due and nonaccrual loans in total farm loans peaked during 1986
and, while still fairly high, has been moving
steadily downward since then. In addition, the
proportion of these problem loans charged off by
banks in the first half of 1988 was less than V2
percent of loans outstanding (lower panel of
chart 8). Chargeoffs by the Farm Credit System
during the first three quarters of 1988 were less
1.5
Agricultural banks
Small nonagricultural banlfs
.5
1
1970
1975
1980
1
1
1 1 1
1985
1
1988
1. Profitability is defined as net income after taxes as a percentage
of total assets on December 31. Agricultural banks are defined as
insured commercial banks at which the ratio of total farm loans to total
loans is above the unweighted average of that ratio for all banks.
Drought, Agriculture, and the Economy
11. Vulnerable banks and bank failures
Number of banks
Vul nerable banks 1
Z2 | Nonagricultural banks
400
2
~ H | Agricultural banks
T\
nV\Vl7lV\
/ / i l l
flm ' ' ' ' ' / W 171 R
I I
t i n
n p ] 1 U\ t I I
U
I I I I I I I I / '/ '/ \ '/
' 1 )
' /
] lliil Hi
l
i
nmIbii
1984
Percent of total assets
I
1
I
I
I
I
I
I
l
l
h
1986
iP
1988
1.Vulnerable banks are defined as those having nonperforming
loans greater than total capital.
2. See chart 9, note 1.
3. Bank failures in 1988 include the failure of 41 subsidiaries of First
RepublicBank Corporation, each of which is counted separately.
Net interest income
Agricultural banks
200
Bank failures 3
r
10. Factors determining income of agricultural
banks and the Farm Credit System1
300
ffl
kSSSNI^B
not seem to have been much affected by either
the drought of 1974 or the two earlier droughts of
the 1980s.
A detailed look at the factors influencing the
rate of return of agricultural banks and the Farm
Credit System is provided in chart 10. Net interest income, the difference between interest received from borrowers and interest paid, expressed as a percent of total assets, declined
somewhat in the 1980s. In addition, as problem
loans mounted in the mid-1980s, increases in the
provision for loan losses (the middle panel)
pushed down profit margins. More recently, the
need to provide for additional loan losses has
diminished for both banks and the institutions of
the Farm Credit System, and profit margins have
improved. However, the improved profit margin
11
2
I
Net income
of the Farm Credit System masks a steep decline
in the system's dollar level of loans—its primary
asset—since 1982.
As shown in the lower two panels of chart 10,
agricultural bankers generally replenished their
provision for loan losses as loans were charged
off and avoided drastic swings in net income. In
contrast, the Farm Credit System initially provided less for loan losses, and then, in 1985
and 1986, made huge provisions that caused net
income to fall precipitously. Losses have failed
to materialize to the extent that was expected,
and in recent quarters, negative provisions for
losses on loans have boosted net income for the
system.
Bank Failures
1. The plots for 1988 are the observations for the first half of the year
for commercial banks and for the first three quarters of the year for the
Farm Credit System, both adjusted to an annual rate.
2. See chart 9, note 1, for the definition of agricultural banks.
3. Data for the Farm Credit System include data from the Bank for
Cooperatives.
A number of banks experienced severe financial
stress while dealing with the large volume of
problem farm loans, and many failed. The ratio
of nonperforming loans to total capital has
proven a useful indicator of the degree of diffi-
12 Federal Reserve Bulletin • January 1989
culties at banks. Chart 11 shows the number of
banks with nonperforming loans greater than
capital and the number of bank failures. Agricultural banks accounted for fewer and fewer of all
vulnerable banks as well as bank failures as the
farm situation began to improve in 1986 and
problems in the oil patch began to mount.
In addition, table 3 shows the skewed distribution of agricultural banks with a large amount of
problem loans. Most agricultural banks never
have had a large volume of problem loans relative to their capital. Furthermore, those having a
large quantity of problem loans compared to total
capital are increasingly in the minority. Thus,
most agricultural banks probably were reasonably well positioned in mid-1988 to handle potential increases in problem loans due to the 1988
drought.
3. D i s t r i b u t i o n o f a g r i c u l t u r a l b a n k s b y r a t i o o f p r o b l e m l o a n s t o total c a p i t a l , J u n e 3 0 , 1 9 8 3 - 8 8 '
Percent
Problem loans as a
percent of total capital
Under 25
25 to 49
50 to 74
75 to 99
100 to 124
125 to 149
150 to 174
175 to 199
200 and over2
1983
1984
1985
1986
1987
1988
100.0 100.0 100.0 100.0 100.0 100.0
83.6 76.3 69.0 66.6 74.2 84.4
19.4 16.1
12.5 16.3 19.6
10.5
2.3
4.4
6.1
6.8
4.8
2.8
.9
1.6
2.3
2.1
1.0
3.0
.6
1.4
1.1
.2
.3
1.3
.1
.3
.8
.8
.5
.2
*
.2
.4
.6
.3
.3
.1
.1
.2
.3
.2
.2
.2
.2
.4
.4
1.0
.7
1. Problem loans are loans that are past due 90 days or more or are
in nonaccrual status.
2. Includes banks with negative capital.
*Less than 0.05 percent.
13
Industrial Production
Released for publication November 15
plies. Production of materials, after having
posted a strong gain in July, has changed little
since then. At 139.2 percent of the 1977 annual
average, the total index in October was 5.1
percent higher than it was a year earlier.
In market groups, production of consumer
goods increased 0.6 percent in October, as most
major components posted gains. Auto assemblies
Industrial production increased 0.4 percent in
October after having risen 0.2 percent in September and 0.3 percent in August. The October gain
mainly reflected further increases in business
equipment and automotive products, as well as
an increase in the output of construction sup-
Ratio scale, 1977= 100
_ TOTAL INDEX
140
-
Products
120
/
100
1
80
_ MANUFACTURING
140
Materials
1
1
_ MATERIALS
Nondurable
1
:
1
1
i
Durable
120
100
Energy
1
80
- CONSUMER GOODS
-
1
1
-
Nondurable
„
%
^
140
1
/
/
/
Durable
1
1
1
1
1
FINAL PRODUCTS
MOTOR VEHICLES AND PARTS
200
Defense and space
120
180
100
160
140
80
120
Consumer goods
100
60
80
1982
1984
1986
All series are seasonally adjusted. Latest figures: October.
1988
1982
1984
1986
1988
14 Federal Reserve Bulletin • January 1989
1977 = 100
Percentage change from preceding month
1988
1988
Group
Oct.
Sept.
June
July
Aug.
Sept.
Oct.
Percentage
change,
Oct. 1987
to Oct.
1988
Major market groups
Total industrial production
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment..
Defense and space
Intermediate products..
Construction supplies
Materials
138.7
139.2
.3
1.1
.3
.2
.4
5.1
147.4
146.0
134.7
125.6
138.0
161.4
184.7
152.5
138.6
126.8
148.4
146.8
135.5
127.0
138.6
162.7
184.6
153.9
140.4
126.8
.2
.3
.2
-.3
.4
.8
-.5
-.3
-.9
.4
.8
.7
.9
.0
1.2
.8
.2
1.0
.6
1.6
.4
.4
.5
.1
.7
.5
-.1
.4
-.2
.1
.2
.2
-.2
.1
-.3
.8
.0
.2
.4
.2
.6
.6
.6
1.2
.4
.8
.0
.9
1.3
.0
5.3
5.3
5.0
2.2
6.0
9.4
-3.0
5.3
5.3
4.6
.4
.6
.2
-.2
-3.8
.5
.6
.3
-.9
.4
5.7
5.9
5.5
-.8
1.4
Major industry groups
145.2
144.8
145.7
102.8
113.7
144.5
144.0
145.3
103.8
113.3
Manufacturing
Durable
Nondurable
Mining
Utilities
.2
.1
.4
.3
1.5
1.1
.9
1.4
1.3
1.0
.2
.1
.2
-.3
2.9
NOTE. Indexes are seasonally adjusted.
rose to an annual rate of 7.6 million units from
the rate of 7.4 million units in September; output
of light trucks for consumer use also increased.
Production of home goods, which includes appliances, rose 0.8 percent, retracing some of the
decline in September; over the past year, output
of home goods, on balance, has been sluggish.
All major components of business equipment,
except commercial equipment, rose sharply in
October ; within this grouping output of manufacTotal industrial production—Revisions
Estimates as shown last month and current estimates
Index (1977=100)
Month
Percentage change
from previous
months
Previous
Current
Previous
Current
138.1
138.3
138.3
138.0
138.4
138.7
139.2
1.2
.2
.0
...
1.1
.3
.2
.4
July
August
Sept
Oct
turing and power equipment has been expanding
strongly since the spring. Production of construction supplies advanced 1.3 percent in October as
disruptions over the summer, owing mainly to
strikes, have ended.
Production of total materials was unchanged in
October, as small gains in durables and nondurables were offset by a decline in energy materials, mainly extraction of crude oil. Among durable materials, output of parts for consumer
durables and for equipment rose, but basic metals, notably steel, fell. Within nondurable materials, production of chemicals increased, but
textiles and paper were little changed.
In industry groups, manufacturing output rose
0.5 percent in October. Durable manufacturing
was boosted by sharp advances in the production
of motor vehicles and lumber; among nondurables, gains were scattered. Mining output, owing mainly to weakness in the oil and gas sector,
declined 0.9 percent, but production at utilities
rose 0.4 percent.
15
Statement to the Deficit Commission
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the National Economic Commission,
November 16, 1988.
It is a pleasure to appear before this distinguished
commission to discuss the federal government
deficit. My thesis today is that federal government deficits do matter. It may appear misplaced
to focus on this issue before a commission whose
very existence presupposes the need to reduce
the deficit. But there is a significant counterview,
fortunately, to date, a minority opinion, that in
fact deficits do not matter much, or in any event
that there is no urgency in coming to grips with
them.
The bulk of my opening remarks will concentrate on the long-term corrosive impact of the
deficit. From this perspective, the case for bringing down the deficit is compelling. But first, I
want to stress that the long run is rapidly turning
into the short run. If we do not act promptly, the
imbalances in the economy are such that the
effects of the deficit will be increasingly felt and
with some immediacy.
It is beguiling to contemplate the strong economy of recent years in the context of very large
deficits and to conclude that the concerns about
the adverse effects of the deficit on the economy
have been misplaced. But this argument is fanciful. The deficit already has begun to eat away at
the foundations of our economic strength. And
the need to deal with it is becoming ever more
urgent. To the extent that some of the negative
effects of deficits have not as yet been felt, they
have been merely postponed, not avoided. Moreover, the scope for further such avoidance is
shrinking.
To some degree, the effects of the federal
budget deficits over the past several years have
been muted by two circumstances, both of which
are currently changing rapidly. One was the
rather large degree of slack in the economy in the
early years of the current expansion. This slack
meant that the economy could accommodate
growing demands from both the private and
public sectors. In addition, to the extent that
these demands could not be accommodated from
U.S. resources, we went abroad and imported
them. This can be seen in our large trade and
current account deficits. By now, however, the
slack in the U.S. economy has contracted substantially. And, it has become increasingly clear
that reliance on foreign sources of funds is not
possible or desirable over extended periods. As
these sources are reduced along with our trade
deficit, other sources must be found, or demands
for saving curtailed. The choices are limited; as
will become clear, the best option for the American people is a further reduction in the federal
budget deficit, and the need for such reduction is
becoming more pressing.
Because of significant efforts by the administration and the Congress, coupled with strong
economic growth, the deficit has shrunk from 5
or 6 percent of gross national product a few years
earlier to about 3 percent of GNP today. Such a
deficit, nevertheless, is still very large by historical standards. Since World War II, the actual
budget deficit has exceeded 3 percent of GNP
only in the 1975 recession period and in the
recent deficit experience beginning in 1982. On a
cyclically adjusted or structural basis, the deficit
has exceeded 3 percent of potential GNP only in
the period since 1983.
Government deficits, however, place pressure
on resources and credit markets only if they are
not offset by saving elsewhere in the economy. If
the pool of private saving is small, federal deficits
and private investment will be in keen competition for funds, and private investment will lose.
The U.S. deficits of recent years are threatening precisely because they have been occurring
in the context of private saving that is low by
both historical and international standards. Historically, net personal plus business saving in the
16 Federal Reserve Bulletin • January 1989
United States in the 1980s is about 3 percentage
points lower relative to GNP than its average in
the preceding three decades. Internationally,
government deficits have been quite common
among the major industrial countries in the
1980s, but private saving rates in most of these
countries have exceeded the deficits by very
comfortable margins. In Japan, for example, less
than 20 percent of its private saving has been
absorbed by government deficits, even though
the Japanese general government has been borrowing almost 3 percent of its gross domestic
product in the 1980s. In contrast, more than half
of private U.S. saving in the 1980s has been
absorbed by the combined deficits of the federal
and state and local sectors.
Under these circumstances, such large and
persistent deficits are slowly but inexorably damaging the economy. The damage occurs because
deficits tend to pull resources away from net
private investment. And a reduction in net investment has reduced the rate of growth of the
nation's capital stock. This, in turn, has meant
less capital per worker than would otherwise
have been the case, and this will surely engender
a shortfall in labor productivity growth and, with
it, a shortfall in growth of the standard of living.
The process by which government deficits
divert resources from net private investment is
part of the broader process of redirecting the
allocation of real resources that inevitably accompanies the activities of the federal government. The federal government can preempt resources from the private sector or direct their
usage by a number of different means, the most
important of which are the following: (1) deficit
spending, on- or off-budget; (2) tax-financed
spending; (3) regulation that mandates private
activities such as pollution control or safety
equipment, which are financed by industry
through the issuance of debt instruments; and (4)
government guarantees of private borrowing.
What deficit spending and regulatory measures
have in common is that to the extent to which
resources are preempted by government actions,
directly or indirectly, they are not sensitive to the
rate of interest. The federal government, for
example, will finance its budget deficit in full,
irrespective of the interest rate it must pay to
raise the funds. Similarly, a government-man-
dated private activity will almost always be financed irrespective of the interest rate that exists. Borrowing with government-guaranteed
debt may be only partly interest sensitive, but the
guarantees have the effect of preempting resources from those without access to riskless
credit. Government spending fully financed by
taxation does, of course, preempt real resources
from the private sector, but the process works
through channels other than real interest rates.
Purely private activities, on the other hand,
are, to a greater or lesser extent, responsive to
interest rates. The demand for mortgages, for
example, falls off dramatically as mortgage interest rates rise. Inventory demand is, clearly, a
function of short-term interest rates, and the
level of interest rates, as they are reflected in the
cost of capital, is a key element in the decision on
whether to expand or modernize productive capacity. Hence, to the extent that there are more
resources demanded in an economy than are
available to be financed, interest rates will rise
until sufficient excess demand is finally crowded
out. The crowded-out demand cannot, of course,
be that of the federal government, directly or
indirectly, since government demand does not
respond to rising interest rates. Rather, real
interest rates will rise to the point that private
borrowing is reduced sufficiently to allow the
entire requirements of the federal on- and offbudget deficit, and all its collateral guarantees
and mandated activities, to be met.
In real terms, there is no alternative to a
diversion of real resources from the private to the
public sector. In the short run, interest rates can
be held down if the Federal Reserve accommodates the excess demand for funds through a
more expansionary monetary policy. But this
will only engender an acceleration of inflation
and, ultimately, will have little, if any, effect on
the allocation of real resources between the
private and public sectors.
The Treasury has been a large and growing
customer in financial markets in recent years. It
has acquired, on average, roughly 25 percent of
the total funds borrowed in domestic credit markets over the last four years, up from less than 15
percent in the 1970s. For the Treasury to raise its
share of total credit flows in this fashion, it must
push other borrowers aside.
Statement to the Deficit Commission
The more interest-responsive are the total demands of these other, private borrowers, the less
will the equilibrium interest rate be pushed up by
the increase in Treasury borrowing. That is, the
greater the decline in the quantity of funds demanded, and the associated spending to be financed, for a given rise in interest rates, the
lower will be the rate. In contrast, if private
borrowing and spending are resistant, interest
rates will have to rise more before enough private
spending gives way. In either case, private investment is crowded out by higher real interest
rates.
Even if private investment were not as interest-elastic as it appears to be, crowding out of
private spending by the budget deficit would
occur dollar for dollar if the total supply of saving
were fixed. To the extent that the supply of
saving is induced to increase, both the equilibrium rise in interest rates and the amount of
crowding out will be less. However, even if more
saving can be induced in the short run, it will be
permanently lowered in the long run to the extent
that real income growth is curtailed by reduced
capital formation.
But aggregate investment is only part of the
process through which the structure of production is affected by high real interest rates. Higher
real interest rates also induce both consumers
and businesses to concentrate their purchases
disproportionately on immediately consumable
goods and, of course, on services. When real
interest rates are high, purchasers and producers
of long-lived assets such as real estate and capital
equipment pull back. They cannot afford the
debt-carrying costs at high interest rates or, if
they are to finance the assets with available cash,
they cannot afford the forgone interest income
resulting from this expenditure of the cash. Under such conditions, one would expect the GNP
to be disproportionately composed of short-lived
goods—food, clothing, services, and so on.
Indeed, statistical analysis demonstrates such
a relationship—that is, a recent decline in the
average service life of all consumption and investment goods and a systematic tendency for
this average to move inversely with real rates of
interest. Parenthetically, the resulting shift
toward shorter-lived investment goods means
that more gross investment is required to provide
17
for replacement of the existing capital stock as
well as for the net investment necessary to raise
tomorrow's living standards. Thus, the current
relatively high ratio of gross investment to GNP
in this country is a deceptive indicator of the
additions to our capital stock.
In fact, we have already experienced a disturbing decline in the level of net investment as a
share of GNP. On a national income and product
accounts basis, net investment has fallen to 4.7
percent of GNP in the 1980s from an average
level of 6.7 percent in the 1970s and even higher
in the 1960s. Moreover, it is low not only by our
own historical standards but by international
standards as well. International comparisons of
net investment should be viewed with some
caution because of differences in the measurement of depreciation and in other technical details. Nevertheless, the existing data do indicate
that total net private and public investment as a
share of gross domestic product over the period
between 1980 and 1986 was lower in the United
States than in any of the other industrial countries except the United Kingdom.
It is important to recognize, as I indicated
earlier, that the negative effects of federal deficits
on growth in the capital stock may be attenuated
for a while by several forces in the private sector.
One is a significant period of output growth in
excess of potential GNP growth—such as occurred over much of the past six years—which
undoubtedly boosts sales and profit expectations
and, hence, business investment. Such rates of
output growth, of course, cannot persist, making
this factor inherently temporary in nature.
Another factor tending to limit the decline in
investment spending would be any tendency for
saving to respond positively to the higher interest
rates that deficits would bring. The supply of
domestic private saving has some interest elasticity, as people put off spending when borrowing
costs are high and returns from their financial
assets are favorable. But most analysts find that
this elasticity is not sufficiently large to matter
much.
Finally, net inflows of foreign saving can be, as
recent years have demonstrated, an important
addition to saving. In the 1980s, foreign saving
has kept the decline in the ratio of gross investment to GNP, on average, to only moderate
18 Federal Reserve Bulletin • January 1989
dimensions (slightly more than one-half percentage point) compared with the 1970s, while the
federal deficit rose about 2Vi percentage points
relative to GNP. Net inflows of foreign saving
have amounted, on average, to almost 2 percent
of GNP, an unprecedented level.
Opinions differ about the relative importance
of high U.S. interest rates, changes in the after-tax return to investment in the United States,
and changes in perception of the relative risks of
investment in various countries and currencies in
bringing about the foreign capital inflow. Whatever its source, had we not experienced this
addition to our saving, our interest rates would
have been even higher and domestic investment
lower. Indeed, since 1985, when the appetite of
private investors for dollar assets seems to have
waned, the downtrend in real long-term rates has
become erratic, tending to stall with the level still
historically high.
Looking ahead, the continuation of foreign
saving at current levels is questionable. Evidence
for the United States and for most other major
industrial nations over the last 100 years indicates that such sizable foreign net capital inflows
have not persisted and, hence, may not be a
reliable substitute for domestic saving on a longterm basis. In other words, domestic investment
tends to be supported by domestic saving alone
in the long run.
Let me conclude by reiterating my central
message. The presumption that the deficit is
benign is clearly false. It is partly responsible for
the decline in the net investment ratio in the
1980s to a suboptimal level. Allowing it to go on
courts a dangerous corrosion of our economy.
Fortunately, we have it in our power to reverse
this process, thereby avoiding potentially significant reductions in our standard of living.
•
19
Announcements
CHANGE IN REPORTING
UNDER THE HMD A
REQUIREMENTS
The Federal Reserve Board issued on November 21, 1988, a notice of a change in reporting
requirements of the Home Mortgage Disclosure
Act (HMDA) for mortgage banking subsidiaries
of bank and savings and loan holding companies
and certain savings and loan service corporations.
Under the statutory amendments that brought
these institutions within the coverage of HMDA,
they were required to report mortgage loan data
for all of calendar year 1988. The Congress
recently changed the effective date to require
these institutions, in their reports, to include data
only for loans originated or purchased on or after
August 19, 1988. These reports will be due on
March 31, 1989.
PROPOSED
ACTIONS
The Federal Reserve Board issued for public
comment on November 30, 1988, a proposal to
rescind the Board's existing rule in Regulation Y
(Bank Holding Companies and Change in Bank
Control) permitting bank holding companies,
through their state banks, to establish or acquire
nonbank companies engaged in activities that
may be conducted by the parent bank (so-called
operations subsidiaries). The effect of this action,
if adopted, would be to require holding companies to obtain approval under section 4(c)(8) of
the Bank Holding Company Act for their subsidiary state banks to acquire or retain control of
nonbank operations subsidiaries.
The Board requests comment on a proposal to
establish an expedited notice procedure for bank
holding companies seeking to establish or ac-
quire operations subsidiaries through their state
banks in the future.
The Board is also requesting comment on a
proposal to permit bank holding companies that
have established operations subsidiaries in reliance on the Board's current rules to retain all or
most of these subsidiaries without further approval.
The Federal Reserve Board also issued for
public comment on December 1, 1988, proposed
revisions to the official staff commentary for two
of its consumer credit protection regulations:
Regulation E (Electronic Fund Transfers) and
Regulation Z (Truth in Lending). Comments
must be received by February 3, 1989.
CHANGE IN BOARD
STAFF
Eleanor J. Stockwell, Associate Director, Division of Research and Statistics, retired, effective
December 16, 1988.
SYSTEM MEMBERSHIP:
STATE
BANKS
ADMISSION
OF
The following state banks were admitted to membership in the Federal Reserve System during the
period November 1 through November 30, 1988:
Illinois
Chicago
Pennsylvania
Philadelphia
York
Virginia
Roanoke
Texas
Kerrville
Affiliated Bank Chicago
First Executive Bank
First Capitol Bank
First Security Bank
Bank of Kerrville
20
Record of Policy Actions
of the Federal Open Market Committee
MEETING
HELD ON SEPTEMBER
Domestic Policy
20,1988
Directive
The information reviewed at this meeting suggested that the expansion of economic activity
might be moderating from the vigorous pace
experienced earlier in the year. Information on
output and spending in the third quarter was still
fragmentary, but recent statistics, including data
on labor market activity, pointed on balance to
some slowing in the rate of economic growth.
Measures of price and wage inflation showed
little change from recent trends, apart from the
continuing upward impetus to food prices stemming from the drought.
Total nonfarm payroll employment rose more
slowly in July and August, but gains in overall
employment remained sizable. After four months
of strong increases, manufacturing employment
fell slightly although some industries with strong
domestic and export sales recorded further increases. The civilian unemployment rate edged
up in July and rose somewhat further to 5.6
percent in August, returning to its average level
of the first half of the year.
Industrial production advanced somewhat further in August after a sharp increase in July.
Production gains were recorded for most categories although they generally were smaller than
those in July. Total industrial capacity utilization
was little changed in August. Utilization rates
remained at relatively high levels in primary
processing industries but slipped in manufacturing as a whole after four months of increases.
Total retail sales were little changed on balance in July and August. Outlays for durable
goods declined in both months, partly because of
some slowing in unit sales of new automobiles.
Sales of nondurable goods increased at a sluggish
pace.
Recent information on business capital spending suggested some moderation from the very
rapid growth in earlier months of the year. Real
outlays for equipment continued to expand in
July but at a pace well below that of the first half
of the year as shipments of office and computing
equipment fell. Nonresidential construction activity apparently edged higher in July despite
further contraction in oil drilling and in spending
on industrial and commercial structures other
than office buildings. Inventory investment in the
manufacturing and wholesale sectors in July evidently remained at about the moderate secondquarter pace. Housing starts rose in July, as
multifamily construction rebounded from a reduced June level, but single-family starts remained close to the average pace of the first half
of the year. Sales of new and existing homes
retreated from their June pace, which had been
the highest in more than a year.
The nominal U.S. merchandise trade deficit
fell appreciably further in July from a considerably reduced second-quarter rate and was the
lowest monthly deficit since March 1985. Virtually all of the improvement in July was due to a
reduction in imports. The total value of exports
was little changed from the June level as a sharp
reduction in exports of automotive products
about offset small increases in most other major
categories. Economic activity in major foreign
industrial countries slackened in the second
quarter, but expansion appeared to have resumed in the current quarter.
Producer prices of finished goods, propelled by
further substantial increases in refinery prices for
gasoline, registered another large advance in
August. At the level of crude materials, producer
food prices were up sharply for the fourth
straight month, reflecting the continuing effects
of the drought. Consumer prices, available for
July, advanced at about the second-quarter pace.
Record of Policy Actions of the Federal Open Market Committee
Consumer food prices surged again; and energy
prices rose further, mainly because of higher
gasoline prices. Excluding food and energy
items, consumer prices increased at about the
average pace of the preceding 12 months.
In the foreign exchange markets, the tradeweighted value of the dollar changed little on
balance over the period since the Committee
meeting on August 16. Following that meeting,
the dollar remained under upward pressure until
late in the month when increases in European
official lending rates arrested its climb. Following
the softer U.S. employment report for August,
the dollar moved lower in early September, but it
subsequently firmed in response to the publication of the July merchandise trade figures.
At its meeting in mid-August, the Committee
adopted a directive calling for no change in the
degree of pressure on reserve positions. These
reserve conditions were expected to be consistent with growth of M2 and M3 at annual rates of
about 2>Vi and 5Vi percent respectively over the
period from June through September. The members agreed that somewhat greater reserve restraint would, or slightly lesser reserve restraint
might, be acceptable, depending on indications
of inflationary pressures, the strength of the
business expansion, the behavior of the monetary aggregates, and developments in foreign
exchange and domestic financial markets.
Reserve conditions remained essentially unchanged over the period since the August
meeting. Adjustment plus seasonal borrowing
averaged just below $600 million for the two
reserve maintenance periods completed since
the meeting, and federal funds primarily traded
near the SVs percent level prevailing at the time
of the meeting. In light of some indications of
more moderate economic expansion, most other
market interest rates declined LA to 3/s percentage
point over the intermeeting period. Broad indexes of stock prices were up 1 to 3 percent.
Growth of the broader monetary aggregates
slowed again in August. The slower expansion of
M2 was concentrated in its liquid deposit components and probably continued to reflect the
rise since early spring of market interest rates
and related opportunity costs of holding such
deposits. Growth of Ml fell sharply in August, as
total transaction deposits declined slightly. Re-
21
flecting a contraction in total reserves, growth
of the monetary base slowed markedly in
August.
The staff projection prepared for this meeting
incorporated somewhat slower growth of economic activity in the current quarter than had
been projected earlier, largely reflecting the recent softening in the data on employment. The
rate of expansion through the end of 1989 was
expected to remain on balance below the pace in
recent quarters, with the drought likely to contribute to an uneven quarterly pattern of growth.
To the extent that monetary policy did not accommodate any tendency for growth in final
demand to be sustained at a pace that threatened
more inflation, pressures would be generated in
financial markets that would restrain domestic
spending. The staff continued to project relatively limited growth of consumer spending, considerably reduced expansion of business fixed
investment, and sluggish housing activity. The
foreign sector was still expected to make a major
contribution to domestic economic growth, even
though progress in reducing the trade deficit was
thought likely to be slower than in recent quarters. The staff also anticipated some continuing
cost pressures over the next several quarters,
reflecting the effects of rising import prices and
especially of reduced margins of unutilized labor
and other production resources.
In the Committee's discussion of the economic
situation and outlook, members noted that the
recent indications of some moderation in the rate
of economic growth tended to reinforce their
expectations of a reduced rate of economic expansion through next year. The members welcomed the signs of somewhat slower economic
growth, given the risks of higher inflation. A
number were concerned that the apparent slowing might prove to be only a temporary pause in
a generally strong expansion or to be inadequate
to avert an intensification of inflationary pressures without further monetary restraint. Others,
while noting the still tentative nature of the
incoming data, interpreted recent developments
in financial markets as well as the real economy
as suggesting a greater likelihood that policy had
tightened sufficiently to put the economy on a
desirable course toward moderate growth that
would prove compatible over time with the
22 Federal Reserve Bulletin • January 1989
achievement of the Committee's anti-inflationary
objectives.
In the Committee's discussion of factors bearing on the economic outlook, a number of members emphasized that, on the whole, indicators of
economic activity continued to suggest appreciable momentum in the expansion. Recent growth
of payroll employment, while below the average
pace of the first half of the year, was still substantial. Capital spending exhibited few signs of
weakening following a period of rapid expansion,
and sizable profits augured for continuing
growth. Likewise, new orders, notably for exports, were holding up well, and some greater
inventory investment was seen as a reasonable
prospect, given current low inventory-to-sales
ratios. A number of members also referred to
continuing evidence of a high level of business
activity in many parts of the country. Indeed, in
some areas and industries, growth was being
constrained by a limited availability of labor and
other production resources. At the same time,
members noted that economic performance remained uneven across the country, depending on
the mix of local industries, and a few signs of
moderation could be observed even in areas that
were characterized by strong local economies.
Retail sales were lackluster in a number of areas,
and the drought was having a mixed impact on
agriculture. The drought's adverse effects in
some parts of the country contrasted with income gains in other areas where producers experiencing more normal crop yields were benefiting
from higher prices. On balance, local conditions
appeared consistent with expectations of somewhat slower growth in domestic demand.
Members continued to anticipate further improvement in the nation's trade balance over the
next several quarters. That view was bolstered
by local reports of strength in export demands for
a wide variety of products and indications of
gains in domestic market shares by firms in the
United States. The prospective improvement in
net exports was not likely to be as strong as in
recent quarters, however, reflecting the lagged
effects of the rise in the exchange value of the
dollar over the course of recent months.
With regard to the outlook for inflation, members generally emphasized that the risks remained on the side of an intensification of infla-
tionary demand pressures. Some favorable
developments that had tended to dampen inflation, such as declining oil prices and a rising
dollar, might well be reversed. More fundamentally, given current utilization rates of labor and
other production resources, the economy was
probably near the point where expansion at a rate
somewhat above the economy's trend growth
potential could result in greater pressures on
wages and prices. Other members saw less risk
of more inflation, particularly in the context of
what they viewed as the moderating growth of
the economy and the appreciable tightening of
monetary policy over the past several months.
Consistent with this view, some noted that inflationary expectations appeared to have eased as
evidenced, for example, by the performance of
long-term debt markets and the behavior of the
dollar in foreign exchange markets. Moreover,
industrial commodity prices had been relatively
stable for an extended period. Reports from
contacts around the nation did not suggest much
change recently in local price and wage developments. Capacity constraints and labor shortages
in some industries and areas continued to be a
source of inflationary pressures, but there were
few reports of outsized increases in prices or
wages. Indeed, some members noted that prices
had tended to level out or to rise more slowly in
a number of industries and indications of faster
increases in wages were limited.
At its meeting in late June the Committee
reviewed the basic policy objectives that it had
set for growth of the monetary and debt aggregates in 1988, and it established tentative objectives for expansion of those aggregates in 1989.
For the period from the fourth quarter of 1987 to
the fourth quarter of 1988, the Committee reaffirmed the ranges of 4 to 8 percent set in February for growth of both M2 and M3. The monitoring range for expansion of total domestic
nonfinancial debt in 1988 was left unchanged
from its February specification of 7 to 11 percent.
On a cumulative basis through August, M2 had
grown at an annual rate slightly above, and M3 at
a rate more noticeably above, the midpoints of
their annual ranges. Expansion of total domestic
nonfinancial debt appeared to have moderated to
a pace marginally below the midpoint of its
range. For 1989 the Committee agreed on tenta-
Record of Policy Actions of the Federal Open Market Committee
tive reductions to ranges of 3 to 7 percent for M2
and 3V2 to l x h percent for M3. The monitoring
range for growth of total domestic nonfinancial
debt was lowered to 6Vi to IOV2 percent for 1989.
It was understood that all the ranges for next
year were provisional and that they would be
reviewed in February 1989 in the light of intervening developments. With respect to Ml, the
Committee reaffirmed in June its earlier decision
not to set a specific target for growth in 1988 and
it also decided not to establish a tentative range
for 1989.
In the Committee's discussion of policy implementation for the weeks immediately ahead, all
of the members agreed on a proposal calling for
an unchanged policy stance pending an evaluation of further economic developments. Those
who perceived the risks in the economic outlook
as still decidedly on the side of continued strong
demand and greater inflationary pressures saw
enough uncertainties in the current economic
situation to warrant a pause in the policy firming
process. Others were less persuaded that inflationary pressures would intensify, especially
given the degree of policy restraint that already
had been implemented over the past several
months. It was noted that additional firming at
this time could have undesirable repercussions
on the dollar in foreign exchange markets and on
the financial condition of many already troubled
depository institutions. Some members expressed concern that a marked weakening in the
economy, which would become a greater risk if
policy were tightened further, would disrupt
the urgent task of reducing the federal budget
deficit.
In their consideration of a desirable policy for
the near term, the members took account of a
staff analysis, which suggested that monetary
expansion was likely to remain relatively damped
in coming months. This outlook assumed a continuing lagged adjustment of offering rates on
retail deposits to earlier increases in market
interest rates.
With regard to possible adjustments in the
degree of reserve pressure during the intermeeting period, all of the members indicated that the
balance of risks in the economy was such that
they favored or could accept a directive that
would more readily accommodate a move toward
23
firming than an adjustment toward easing in the
weeks ahead. Some commented that near-term
developments were not likely to call for a policy
change in this period, while others saw a greater
likelihood that intermeeting developments would
point to the desirability of some firming. The
potential need for some easing was viewed as
remote.
At the conclusion of the Committee's discussion, all of the members approved a directive that
called for maintaining the current degree of pressure on reserve positions. The members decided
that somewhat greater reserve restraint would be
acceptable, or slightly lesser reserve restraint
might be acceptable, over the intermeeting period, depending on indications of inflationary
pressures, the strength of the business expansion, the behavior of the monetary aggregates,
and developments in foreign exchange and domestic financial markets. The reserve conditions
contemplated by the Committee were expected
to be consistent with growth of M2 and M3 at
annual rates of about 3 percent and 5 percent
respectively over the four-month period from
August to December. The members agreed that
the intermeeting range for the federal funds rate,
which provides one mechanism for initiating consultation of the Committee when its boundaries
are persistently exceeded, should be left unchanged at 6 to 10 percent.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal Reserve Bank of New York:
The information reviewed at this meeting suggests
that the expansion in economic activity may be moderating from the vigorous pace earlier in the year.
Total nonfarm payroll employment grew more slowly
in July and August, though the increases in the two
months were still sizable. The civilian unemployment
rate rose to 5.6 percent in August. Industrial production advanced slightly further in August after a sharp
increase in July. Retail sales were flat in July and
August. Recent indicators of business capital spending
suggest some moderation from the especially rapid
growth in earlier months of the year. Preliminary data
for the nominal U.S. merchandise trade deficit in July
showed some further reduction from the improved
second-quarter rate. The latest information on prices
suggests little if any change from recent trends.
Most interest rates have declined somewhat since
the Committee meeting on August 16. Over the intermeeting period, the trade-weighted foreign exchange
24
Federal Reserve Bulletin • January 1989
value of the dollar in terms of the other G-10 currencies was about unchanged on balance.
Expansion of M2 and M3 moderated further in
August. For the year through August, M2 has grown at
a rate slightly above, and M3 at a rate more noticeably
above, the midpoints of the ranges established by the
Committee for 1988. Ml was unchanged in August
after registering relatively strong growth in June and
July. Expansion of total domestic nonfinancial debt for
the year thus far appears to be at a pace somewhat
below that in 1987.
The Federal Open Market Committee seeks monetary and financial conditions that will foster 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 at its meeting in late
June reaffirmed the ranges it had established in February for growth of 4 to 8 percent for both M2 and M3,
measured from the fourth quarter of 1987 to the fourth
quarter of 1988. The monitoring range for growth of
total domestic nonfinancial debt was also maintained
at 7 to 11 percent for the year.
For 1989, the Committee agreed on tentative ranges
for monetary growth, measured from the fourth quarter of 1988 to the fourth quarter of 1989, of 3 to 7
percent for M2 and 3l/z to IVz percent for M3. The
Committee set the associated monitoring range for
growth of total domestic nonfinancial debt at 6V2 to
IOV2 percent. It was understood that all these ranges
were provisional and that they would be reviewed in
early 1989 in the light of intervening developments.
With respect to M l , the Committee reaffirmed its
decision in February not to establish a specific target
for 1988 and also decided not to set a tentative range
for 1989. The behavior of this aggregate will continue
to be evaluated in the light of movements in its
velocity, developments in the economy and financial
markets, and the nature of emerging price pressures.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. Taking account of indications of inflationary pressures, the
strength of the business expansion, the behavior of the
monetary aggregates, and developments in foreign
exchange and domestic financial markets, somewhat
greater reserve restraint would, or slightly lesser reserve restraint might, be acceptable in the intermeeting period. The contemplated reserve conditions are
expected to be consistent with growth of M2 and M3
over the period from August through December at
annual rates of about 3 and 5 percent, respectively.
The Chairman may call for Committee consultation if
it appears to the Manager for Domestic Operations
that reserve conditions during the period before the
next meeting are likely to be associated with a federal
funds rate persistently outside a range of 6 to 10
percent.
Votes for this action: Messrs. Greenspan, Corrigan, Angell, Black, Forrestal, Heller, Hoskins,
Johnson, Kelley, LaWare, Parry, and Ms. Seger.
Votes against this action: None.
25
Legal Developments
PREEMPTION DETERMINATION
REGULATION B
UNDER
The Board of Governors has determined that a provision in the law of N e w York is inconsistent with the
Equal Credit Opportunity Act and Regulation B and
therefore is preempted.
Effective November 11, 1988, the Board has determined that the provision in the state law of N e w York
specified below is preempted by 12 C.F.R. Part 202 as
follows:
(1) General. Section 705(f) of the Equal Credit Opportunity Act authorizes the Federal Reserve Board to
determine whether an inconsistency exists between a
provision of the act and a state law relating to credit
discrimination. If a state law is inconsistent and provides no greater protection for credit applicants than
does the federal law, the state law is preempted to the
extent of the inconsistency, and creditors in that state
may not follow the inconsistent state requirement.
The Board received a request, made on behalf of an
organization headquartered in the Republic of China,
for a preemption determination concerning N e w York
state law. The organization plans to operate a fund that
will guarantee loans made to overseas Chinese residing in the United States when they borrow money from
the U.S. branches of Chinese banks or from U . S .
banks that have Chinese capital. The organization
proposes to establish this guarantee program in keeping with provisions of the Equal Credit Opportunity
Act that permit a creditor offering a special-purpose
credit program (as defined by the Board's Regulation
B, which implements the act) to take into account a
factor —such as national origin —whose consideration
is normally barred by the act and regulation.
In response to this request the Board examined N e w
York law, Article 15, section 296-a to determine
whether its provisions are inconsistent with the ECOA
and the Board's Regulation B. On July 18, 1988, the
Board published a preliminary determination (53 Federal Register 26,987). In that notice, the Board proposed to preempt the N e w York law to the extent that
it bars a creditor from offering a special-purpose credit
program. One comment on the proposed determination was received during the comment period, which
closed on September 12, 1988.
The Board is now publishing a final determination
regarding the N e w York law under authority delegated
to the Director of the Division of Consumer and
Community Affairs, as set forth in the Board's Rules
Regarding Delegation of Authority (12 C.F.R. Part
265).
(2) Analysis of ECOA, Regulation B, and New York
law. The ECOA and Regulation B prohibit discrimination in any credit transaction on the basis of race,
color, national origin, religion, sex, marital status, age,
receipt of income from public assistance programs, or
the good-faith exercise of any rights under the Consumer Credit Protection Act. However, section 202.8
of the regulation (which implements section 701(c) of
the ECOA) permits a creditor to extend special-purpose credit and to consider one or more common
characteristics of program participants (for example,
race or national origin) when extending credit under
these programs.
Under section 202.8, creditors are allowed to offer
credit assistance programs that are authorized by
federal or state law, or that are established by a
not-for-profit organization, for the benefit of an economically disadvantaged class of persons. It also allows a not-for-profit organization to offer credit assistance programs for the benefit of its members. In
addition, for-profit organizations may provide specialpurpose credit programs to meet special social needs if
the programs are administered pursuant to a written
plan that identifies the class of persons the particular
program is designed to benefit. As mentioned earlier,
participants of these programs may be required to
share one or more common characteristics, such as
race or national origin. If participants are required to
possess a common characteristic, the creditor may
request and consider information regarding that particular characteristic.
Under section 705 of the ECOA and Section 202.11
of Regulation B, state law provisions that are inconsistent with the requirements of the act and regulation
are preempted. Section 202.1 l(b)(l)(v) of Regulation B
also provides that a state law is inconsistent with the
requirements of the federal law to the extent that the
state law prohibits inquiries necessary to establish or
administer a special-purpose credit program as defined
by Section 202.8.
The Board has made a comparison of N e w York
statute sections 296-a(l)(b) and (c) to Regulation B's
26 Federal Reserve Bulletin • January 1989
Section 202.8. The establishment of a special-purpose
credit program, though permissible under the ECOA
and Section 202.8, is prohibited under N e w York law,
which bars—without exception—discrimination on the
basis of the race, creed, color, national origin, sex, or
marital status of an applicant or of a class of applicants. Furthermore, creditors are expressly prohibited
under N e w York law from inquiring about these
characteristics.
(3) Determination and Effect of Preemption. Based on
its analysis, the Board has determined that the N e w
York law on credit discrimination is inconsistent with
federal law, and that it is preempted by the ECOA and
Regulation B to the extent of the inconsistency. Thus,
the state of N e w York is barred from prohibiting
special-purpose credit programs and related inquiries
that are permissible under federal law.
The Board makes no determination, however, as to
whether any particular credit program (including the
program which the party requesting this preemption
determination proposes to establish) qualifies as a
special-purpose credit program under the ECOA and
Regulation B. A s explained in comment 8(a)-1 of the
official staff commentary to Regulation B (12 C.F.R.
Part 202, Supp. 1), the agency or creditor administering or oflfering the credit program must make that
determination.
AMENDMENT
TO REGULATION
D
The Board of Governors is amending 12 C.F.R. Part
204, its Regulation D, Reserve Requirements of Depository Institutions. The regulation is revised
(1) to increase the amount of transaction accounts
subject to a reserve requirement ratio of three percent,
as required by section 19(b)(2)(C) of the Federal Reserve Act (12 U.S.C. § 461(b)(2)(C)), from $40.5
million to $41.5 million of net transaction accounts
(known as the low reserve tranche adjustment);
(2) to 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 $3.2 million to $3.4 million of
reservable liabilities (known as the reservable liabilities exemption adjustment); and
(3) to increase the deposit cutoff level which is used in
conjunction with the reservable liabilities exemption
amount to determine the frequency of deposit reporting from $40.0 million to $42.1 million.
For depository institutions that report weekly, the
low reserve tranche adjustment and the reservable
liabilities exemption adjustment will be effective start-
ing with the reserve computation period beginning on
Tuesday, December 27, 1988, and with the corresponding reserve maintenance periods beginning
Thursday, December 29, 1988, for net transaction
accounts, and on Thursday, January 26, 1989, for
other reservable liabilities. For institutions that report
quarterly, the low reserve tranche adjustment and the
reservable liabilities exemption adjustment will be
effective with the computation period beginning on
Tuesday, December 20, 1988, and with the reserve
maintenance period beginning Thursday, January 19,
1989. For all depository institutions, the increase in
the deposit cutoff level will be used to screen institutions in the second quarter of 1989 to determine
reporting frequency beginning September 1989.
Pursuant to the Board's authority under section 19
of the Federal Reserve Act, 12 U.S.C. § 461 et seq.,
the Board is amending 12 C.F.R Part 204 as follows:
Part 204 —Reserve Requirements of Depository
Institutions
1. The authority citation for 12 C.F.R. Part 204 continues to read as follows:
Authority: Sections 11(a), 11(c), 19, 25, 25(a) of the
Federal Reserve Act (12 U.S.C. §§ 248(a), 248(c),
371a, 371b, 461, 601, 611); section 7 of the International Banking Act of 1978 (12 U.S.C. § 3105); and
section 411 of the Garn-St Germain Depository Institutions Act of 1982 (12 U.S.C. § 461).
2. In section 204.9 - Reserve Requirement Ratios,
paragraphs (a)(1) and (a)(2) are revised to read as
follows:
(a)(1) Reserve percentages.
The following reserve ratios are prescribed for all depository institutions,
Edge and Agreement Corporations, and United
States branches and agencies of foreign banks:
Category
Net transaction accounts*
$0 to $41.5 million
over $41.5 million
Nonpersonal time deposits
By original maturity (or
notice period):
Less than 1 Vi years
1V2 years or more
Eurocurrency liabilities
Reserve Requirement
3 percent of amount
$1,245,000 plus 12 percent of
amount over $41.5 million
3 percent
0 percent
3 percent
*Dollar amounts do not reflect the adjustment to be made by the
next paragraph.
Legal Developments
(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 $3.4 million
determined in accordance with section 204.3(a)(3) of
this Part.
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Financial Partners, Inc.
Worland, Wyoming
Order Approving
Company
Formation
of a Bank
Holding
Financial Partners, Inc., Worland, Wyoming ("Applicant"), has applied for the Board's approval under
section 3(a)(1) of the Bank Holding Company Act
(12 U . S . C . § 1842(a)(1)) ("BHC Act"), to become a
bank holding company by acquiring 96.4 percent of the
outstanding voting shares of Stockgrowers State
Bank, Worland, Wyoming ("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
(53 Federal Register 25,010 (1988)). 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.
Applicant is a nonoperating corporation formed to
acquire Bank. Bank is the 19th largest commercial
banking organization in Wyoming, with total deposits
of approximately $46.8 million, representing 1.2 percent of the total deposits in commercial banks in the
state. 1 Consummation of the transaction would not
result in an increase in the concentration of banking
resources in Wyoming.
Bank operates in the Washakie County banking
market, 2 where it is the largest of three commercial
banks, controlling 48.3 percent of the total deposits in
commercial banks in the market. Applicant and its
principals are not affiliated with any other depository
institution. Accordingly, consummation of this proposal would not result in any adverse effects on
competition.
The Board has considered the protest filed by Stockgrowers State Bank Company, Inc., Worland, Wyoming, relating to the commercial reasonableness of the
sale of shares of Bank to Applicant under state law.
The Board has previously indicated that the standards
of section 3(c) of the BHC Act do not require the
Board to adjudicate issues that do not raise statutory
factors that the Board must consider in approving an
application. 3 In this case, the matter of compensation
for the shares of Bank is not directly related to the
factors the Board must consider in approving the
application.
Based upon the facts of record, including certain
commitments made by Applicant, the financial and
managerial resources and future prospects of Applicant and Bank are consistent with approval. Considerations relating to 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. The transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months following the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Kansas City,
pursuant to delegated authority.
By order of the Board of Governors, effective November 21, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES MCAFEE
Associate
Secretary
of the
Board
First National of Nebraska, Inc.
Omaha, Nebraska
Order Approving
Company
the Acquisition
of a Bank
Holding
First National of Nebraska, Inc., Omaha, Nebraska
("First National"), a bank holding company within the
3. See, e.g., Hudson Financial Associates,
1. Banking data are as of December 31, 1987.
2. The Washakie County banking market is approximated by
Washakie County, Wyoming.
27
BULLETIN 150 (1986); Suburban
Bancorp,
72 FEDERAL RESERVE
Inc., 71 FEDERAL RESERVE
BULLETIN 581 (1985); Western Bancshares, Inc. v. Board of Governors of the Federal Reserve System, 480 F.2d 749 (1973).
28
Federal Reserve Bulletin • January 1989
meaning of the Bank Holding Company Act (the
"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 all of the voting
shares of First National Columbus Bancorp, Columbus, Nebraska ("Bancorp").
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 32,452 (1988)).
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.
First National is the third largest commercial banking organization in Nebraska, controlling total deposits of approximately $850.3 million, representing 5.9
percent of the total deposits in commercial banking
organizations ("total bank deposits") in the state. 1
Bancorp is the sixth largest commercial banking organization in Nebraska, controlling deposits of $185.1
million, representing 1.3 percent of the total bank
deposits in the state. Upon consummation of this
proposal, First National would remain the third largest
commercial banking organization in Nebraska, controlling deposits of $1.0 billion, representing 7.2 percent of the total bank deposits in the state. Accordingly, consummation of this proposal would not have
any significant adverse effects on the concentration of
banking resources in Nebraska.
The subsidiary banks of Bancorp and First National
compete directly in the Columbus, Nebraska, banking
market. 2 In this market, Bancorp's subsidiary bank,
First National Bank & Trust Company, is the largest
bank, with deposits of $175.6 million, representing
34.3 percent of the market's banking deposits. First
National's subsidiary bank, First National Bank of
Omaha, also has a branch operating within the Columbus market with $22.7 million in deposits and a market
share of 4.4 percent. 3 The Columbus market is moderately concentrated, with the four largest commercial
banks controlling 60.4 percent of the total bank deposits in the market. Upon consummation, First National
would remain the largest commercial banking organization in the market, controlling 38.7 percent of market deposits in commercial banks, and the four-firm
concentration ratio would increase 4.4 points to 64.8
percent. The market would be considered highly concentrated after consummation of the proposed trans-
action, with the Herfindahl-Hirschman Index
("HHI") increasing 303 points to 1919.4
Although consummation of this proposal would
eliminate some existing competition between First
National and Bancorp in the Columbus banking market, numerous other commercial banks would continue to operate in the market after consummation of
this proposal. In addition, the Board has considered
the presence of thrift institutions in this banking market in its analysis of this proposal. The Board has
previously indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. 5 In the Columbus market,
thrift institutions account for a significant percentage
of the total deposits. 6 Based upon the size and market
share of thrift institutions, the Board has concluded
that thrift institutions exert a significant competitive
influence that mitigates the anticompetitive effects of
this proposal in this banking market. 7
On the basis of the foregoing and other facts of
record, the Board concludes that consummation of
this proposal would not have a significantly adverse
effect on existing competition in the Columbus banking market. In addition, the Board concludes that,
based on the number of probable future entrants in the
markets, consummation of this proposal would not
have a significant adverse effect on probable future
competition in any relevant market.
The financial and managerial resources of First
National and Bancorp are considered satisfactory and
consistent with approval.
The Board has received a protest from the Omaha
Black Forum, an umbrella organization representing
4. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.
5. National City Corporation,
(1984); The Chase Manhattan
B U L L E T I N 5 2 9 ( 1 9 8 4 ) ; NCNB
Bancorporation,
7 0 FEDERAL RESERVE
BULLETIN 225 (1984); General Bancshares
Corporation,
69 FEDERAL
RESERVE BULLETIN 802 (1983); and First Tennessee National
Corporation,
1. State banking data are as of December 31, 1987.
2. The Columbus banking market is approximated by the following
areas in Nebraska: Platte County; the town of Genoa in Nance
County; the southern two-thirds of Colfax County; the northwest
corner of Butler County; the northeastern half of Polk County; and the
town of Silver Creek in Merrick County.
3. Market deposit data are as of June 30, 1987.
70 FEDERAL RESERVE BULLETIN 743
Corporation,
70 FEDERAL RESERVE
6 9 FEDERAL RESERVE BULLETIN 2 9 8 ( 1 9 8 3 ) .
6. Thrift institutions control 24 percent of the combined deposits of
banks and thrifts in the Columbus banking market. Market deposit
data for thrift institutions are as of June 30, 1986.
7. If 50 percent of deposits held by thrift institutions in the
Columbus banking market were included in the calculation of market
concentration, First National's pro forma market share would be 33.3
percent. The market would be considered moderately concentrated
with the HHI increasing by 224 points to 1481.
Legal Developments
various local community groups. The protest alleged a
lack of detail concerning certain activities and programs in the statement required to be filed by First
National's lead bank, First National Bank of Omaha,
under the Community Reinvestment Act, 12 U.S.C.
§ 2901 et seq. ("CRA").
As an initial matter, the Board has reviewed this
statement and finds that it complies with the requirements for such CRA statements set forth in the
Board's Regulation BB, 12 C.F.R. § 228.4. In addition, the Board notes that the CRA statement is but
one factor that the Board assesses in considering a
banking organization's compliance with the Act's requirement that a banking organization serve the convenience and needs of its local community. These
additional factors considered by the Board include any
evidence of prohibited discriminatory or other illegal
credit practices; the geographic distribution of credit
extensions, credit applications, and credit denials; and
the origination of residential mortgage loans, housing
rehabilitation loans, home improvement loans, and
small business loans within the community. In this
regard, the Board notes that the primary federal regulator of First National Bank of Omaha, who examines
for compliance with these factors, gave the bank a
satisfactory CRA rating during its most recent examination. Accordingly, the Board concludes that convenience and needs considerations in this case are consistent with approval of the application. 8 Based on the
foregoing and other facts of record, the Board has
determined that the application should be, and hereby
is, approved. The acquisition of Bancorp shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Kansas City, acting
pursuant to delegated authority.
By order of the Board of Governors, effective November 16, 1988.
8. The Protestant has also requested that the Board order a public
hearing on the application. 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. Under the Board's Regulation Y,
the Board shall order a hearing "only if there are disputed issues of
material fact that cannot be resolved in some other manner." 12
C.F.R. § 225.23(g). The Board's Rules of Procedure also provide that
a public meeting may be held to clarify factual issues related to an
application or to provide an opportunity for interested persons to
testify. 12 C.F.R. § 262.25(d). Protestant does not present any
material questions of fact that are in dispute, nor has the Protestant
alleged any additional facts to demonstrate that First National is not in
compliance with the CRA. Under these circumstances, and in light of
all of the facts of record, the Board has determined that a public
hearing or meeting is not necessary to clarify the record in this case
and would serve no useful purpose. Accordingly, the request for a
public hearing is hereby denied.
29
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and LaWare. Absent and not voting:
Chairman Greenspan and Governors Heller and Kelley.
JAMES MCAFEE
Associate
Secretary
of the
Board
Washington National Holdings, N.V.
Netherlands Antilles
Washington Bancorporation
Washington, D.C.
Order Approving Acquisition of Bank,
Membership
in the Federal Reserve System, and Establishment
of
Branch
Washington National Holdings, N . V . , Netherlands
Antilles ("Holdings"), and Washington Bancorporation, Washington, D.C. ("Bancorporation") (collectively referred to as "Applicants"), bank holding
companies within the meaning of the Bank Holding
Company Act (the " B H C Act"), have applied for the
Board's approval under section 3 of the BHC Act
(12 U.S.C. § 1842) and under section 225.14 of the
Board's Regulation Y (12 C.F.R. § 225.14) to acquire
control of all of the voting shares of The Washington
Bank (of Maryland) ("Washington Bank-Maryland"),
a state-chartered commercial bank to be located in
Maryland.
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with section 3(b) of the BHC Act
(12 U.S.C. § 1842(b)) (53 Federal Register 28,694; 53
Federal Register 45,160 (1988)). 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 N o hearing has been requested in this case.
Washington Bank-Maryland will be the successor
by merger to two Maryland-chartered savings and
loan associations formerly privately insured by the
Maryland Savings-Share
Insurance
Corporation
("MSSIC"): Center Savings & Loan Association,
Baltimore, Maryland ("Center"), and Universal Savings & Loan Association, Inc., Pikesville, Maryland
("Universal"). Washington Bank-Maryland will be
held directly by Bancorporation, a subsidiary of
Holdings. 2
1. The Board received one adverse comment, from Holdings,
concerning the managerial and financial resources of Bancorporation.
2. Holdings owns or controls approximately 27.6 percent of the
outstanding common stock of Bancorporation and serves as an
investment vehicle for foreign investors.
30
Federal Reserve Bulletin • January 1989
Applicants propose to acquire Washington BankMaryland, a commercial bank to be chartered by the
state of Maryland, pursuant to recently enacted
legislation. 3 Upon consummation of the acquisition,
Washington Bank-Maryland will operate one commercial bank branch within the state.
The establishment of Washington Bank-Maryland
and its acquisition by Applicants is a part of the State's
continuing effort over the last three years to resolve
the financial crisis in Maryland involving MSSICinsured savings and loan associations. Universal, with
$21 million in deposits, 4 has been transferred from
conservatorship to receivership, 5 and its depositors
have had their funds frozen for the past 14 months.
By letter dated September 6, 1988, the Maryland
Bank Commissioner informed the Board that it was
ready to approve the applications for conversion of the
thrifts to a state chartered bank and for the Applicants
to acquire the resultant bank. Further, the Maryland
Bank Commissioner requested that the Board act
expeditiously in this matter. The Bank Commissioner
advised the Board that an emergency situation exists
in the State of Maryland with respect to savings and
loan associations formerly insured by MSSIC. 6
Bancorporation, with total assets of $2.2 billion,
controls one bank subsidiary, The National Bank of
Washington, Washington, D.C., the second largest
commercial banking organization in the District of
Columbia. 7 Applicants also engage in a variety of
nonbanking activities in the greater District of Columbia area. Washington Bank-Maryland's assets will
account for less than 1 percent of Bancorporation's
pro forma assets. Bancorporation's financial condition
is consistent with approval.
Center and Universal compete in separate banking
markets. Bancorporation currently operates no banking subsidiaries within Maryland. In view of the relatively small size of the institutions involved, the number of potential entrants into the relevant markets, and
the fact that Washington Bank-Maryland, Center, and
Universal operate in separate banking markets, the
Board finds that this acquisition would not have any
significant adverse effect on existing or potential competition in any relevant market.
Under the BHC Act, the Board is required to
consider the financial and managerial resources and
3. Chapter 80, Laws of Maryland (1988), codified at Md. Fin. Inst.
Code Ann. § 5-1008.
4. Center has $9 million in deposits. Financial data are as of June 30,
1988.
5. Under Maryland law, deposit withdrawals are generally restricted after commencement of the conservatorship and interest
accumulation ceases upon transferral into receivership.
6. If Center does not receive federal deposit insurance by mid-year
1989, it will be forced to liquidate.
7. Financial data are as of September 30, 1988.
future prospects of the companies and the banks
concerned. In its consideration of these factors, the
Board has taken into account the comments filed by
Holdings. Based upon its review of the entire record,
the Board concludes that these considerations are
consistent with approval.
Consummation of Applicants' proposal will provide
adequate capitalization and continuing financial support to the successor to the thrift institutions involved
in the application. At consummation, Bancorporation
will inject a total of $3 million in new capital into
Washington Bank-Maryland. Bank thereafter will
have a level of primary capital in excess of the
minimum standards set forth in the Board's Capital
Adequacy Guidelines. This will ensure that service
provided by the thrift institutions to the convenience
and needs of their relevant communities will resume.
The proposed transaction is the most feasible solution
to permit Center and Universal, as Washington BankMaryland, to resume full operations promptly and to
allow their depositors immediate and full access to
their funds at the least cost to the State of Maryland.
Accordingly, the Board concludes that convenience
and needs factors lend substantial weight to approval
of this application.
On the basis of all of the above, including particularly the compelling benefits of the proposal to the
depositors of these institutions and to the public, the
Board concludes that approval of the proposed transaction would be in the public interest.
Section 3(d) of the BHC Act prohibits a bank
holding company from acquiring a bank outside of the
bank holding company's home state unless the statute
laws of the state where the target bank is located
specifically authorize such an acquisition. 8 Newly codified section 5-1008 of the Financial Institutions Article of the Maryland Code provides specific statutory
authorization for Applicants' proposed acquisition of
Washington Bank-Maryland. Accordingly, the instant
proposal would not violate the Douglas Amendment.
Washington Bank-Maryland has applied under section 9 of the Federal Reserve Act, 12 U.S.C. § 321
et seq., and section 208.4 of the Board's Regulation H,
12 C.F.R. § 208.4, to become a member of the Federal
Reserve System upon consummation of these acquisitions. It also has applied under section 9 of the
8. 12 U.S.C. § 1842(d). The home state of the acquiring holding
company is defined for Douglas Amendment purposes as the state in
which the operations of the bank holding company's bank subidiaries
were principally conducted on the later of July 1, 1966, or the date on
which the company became a bank holding company. Id. The Board
has previously determined that a District of Columbia bank holding
company can make acquisitions in Maryland. James Madison, Ltd.,
73 FEDERAL RESERVE BULLETIN 129 (1987). See generally
Inst. Code Ann. § 5-1001, et seq. (Supp. 1988).
Md. Fin.
Legal Developments
Federal Reserve Act and section 208.9 of the Board's
Regulation H, 12 C.F.R. § 208.9, to establish a
branch. The Board has considered the factors it is
required to consider when approving applications for
membership pursuant to section 9 of the Federal
Reserve Act (12 U . S . C . § 322) and section 6 of the
Federal Deposit Insurance Act (12 U . S . C . § 1816),
and finds those factors to be consistent with approval.
Bank appears to meet all the criteria for admission to
membership, including capital requirements and considerations related to management character and quality. Further, Washington Bank-Maryland meets all the
criteria to establish a branch. Accordingly, Washington Bank-Maryland's applications to become a member of the Federal Reserve System and to establish a
branch are approved.
On the basis of the entire record, the section 3
application to acquire control of Washington BankMaryland and the section 9 applications to become a
member in the Federal Reserve System and to establish a branch are approved for the reasons summarized
above. The transaction shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Richmond, pursuant to delegated authority.
By order of the Board of Governors, effective November 28, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES M C A F E E
Associate
Secretary
of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
First Wisconsin Corporation
Milwaukee, Wisconsin
Order Approving Acquisition of a Company
in Title Insurance Agency
Activities
Engaged
First Wisconsin Corporation, Milwaukee, Wisconsin
("First Wisconsin"), a bank holding company within
the meaning of the Bank Holding Company Act of
1956, as amended ( " B H C Act") (12 U . S . C . § 1841
et seq.), has applied under section 4(c)(8) of the BHC
Act (12 U . S . C . § 1843(c)(8)) and section 225.23(a) of
the Board's Regulation Y (12 C.F.R. § 225.23(a)) to
acquire all of the outstanding shares of Milwaukee
Title Insurance Service, Inc., Milwaukee, Wisconsin
("Milwaukee Title"), a company which will engage in
title insurance agency activities pursuant to section
31
225.25(b)(8)(vii) of the Board's Regulation Y
(12 C.F.R. § 225.25(b)(8)(vii)).
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 21,525 (1988)).
The time for filing comments has expired and the
Board has considered this application and the comments received from the American Land Title Association ("ALTA"), in light of the public interest factors
set forth in section 4(c)(8) of the BHC Act.
First Wisconsin, with consolidated assets of $7.2
billion, 1 controls 33 subsidiary banks and is the largest
commercial banking organization in Wisconsin. First
Wisconsin has applied for Milwaukee Title to engage
in title insurance agency activities pursuant to exemption G of the Garn-St Germain Depository Institutions
Act of 1982 ("Garn Act"). Title U S A Insurance Corporation of N e w York, an unaffiliated corporation, will
underwrite the title insurance policies sold by Milwaukee Title. First Wisconsin will not engage in underwriting title insurance.
Title VI of the Garn Act amended section 4(c)(8) of
the BHC Act to provide that insurance agency, brokerage, and underwriting activities are not "closely
related to banking" and thus are not permissible
activities for bank holding companies, unless the activities are included within one of seven specific exemptions (A through G) contained in section 4(c)(8).
First Wisconsin claims it is authorized to operate a
title insurance agency under exemption G, which
authorizes those bank holding companies that engaged, with Board approval, in insurance agency activities prior to 1971, to engage, or control a company
engaged, in insurance agency activities. First Wisconsin does not qualify to engage in title insurance agency
activities, directly or through a subsidiary, under any
other exemption.
First Wisconsin has been engaged in the sale of
insurance related to extensions of credit by its subsidiary banks since 1939. In 1959, First Wisconsin received approval from the Board, under the provisions
of the BHC Act, to retain an insurance agency subsidiary, First Wisconsin Company, which engaged in the
sale of credit life insurance to customers of First
Wisconsin. 2 First Wisconsin has been engaged in the
sale of credit life insurance through this and successor
insurance agency subsidiaries on a continuous basis
since receiving Board approval in 1959. First Wisconsin is one of 16 active companies with grandfather
rights under exemption G.
1. All banking data are as of June 30, 1988.
2. See Wisconsin Bankshares Corp., 45 FEDERAL RESERVE BULLETIN 1136(1959).
32
Federal Reserve Bulletin • January 1989
In 1985, First Wisconsin received approval from the
Board to expand its insurance agency activities
through the operation of a general insurance agency
engaged in the sale of all types of personal and
commercial insurance to the general public as well as
to First Wisconsin's customers. 3 In interpreting exemption G of section 4(c)(8), the Board determined
that First Wisconsin is authorized under that provision
to engage in general insurance agency activities and
thus to sell various types of insurance that it was not
selling in 1971.4
ALTA asserts that exemption G only exempts the
specific types of insurance agency activities the Board
authorized bank holding companies to engage in before 1971. Since the Board did not approve any applications before 1971 that specified title insurance, in
ALTA's opinion First Wisconsin cannot engage in the
sale of title insurance. ALTA also argues that exemption G only exempts general insurance agency activities and title insurance is a unique type of insurance
not sold by general insurance agencies. Finally, ALTA
asserts that approval of this application will not result
in any public benefits and will adversely effect competition.
The Board has previously determined that those
companies that received Board approval to engage in
general insurance agency activities prior to 1971 are
grandfathered under exemption G with respect to the
sale of any type of insurance that is within the scope of
general insurance agency activities—even an insurance agency activity (such as title insurance) not
actually offered by the applicant bank holding company before 1971.5 In reaching this conclusion, the
Board noted that the language of exemption G does
not limit or restrict the scope of permissible insurance
agency activities for qualifying bank holding companies to those insurance agency activities approved by
the Board prior to 1971. The language of exemption G
permits a bank holding company to engage in insurance activities provided the company "was engaged,
directly or indirectly, in insurance agency activities as
a consequence of approval by the Board prior to
January 1, 1971." There is no requirement in the
statute that a company qualifying for exemption G
engage only in those insurance agency activities it
conducted with Board approval prior to 1971. The
Board also found this interpretation to be consistent
with Congressional intent and the general structure of
the Gam Act exemptions.
3. First Wisconsin Corporation, 71 FEDERAL RESERVE BULLETIN
171 (1985).
4. Id. at 172-173.
5. First Wisconsin Corporation, 71 FEDERAL RESERVE BULLETIN
172; Norwest Corporation, 70 FEDERAL RESERVE BULLETIN 470
(1984).
Therefore, although the Board may not have specifically approved title insurance prior to 1971, this
activity would fall within exemption G if it is encompassed within the authorization of insurance agency
activities. In its analysis of this issue, the Board has
considered the plain meaning of the term "insurance"
as well as the terms and intent of the Garn Act. Title
insurance is "insurance" within the commonly understood meaning of the term. ALTA does not contend
that title insurance is not insurance. First Wisconsin
would sell title insurance only as agent. The proposed
activity thus falls within the literal authorization of
exemption G and the Board's implementing regulation. 12 C.F.R. § 225.25(b)(8)(vii).
Nothing in the terms or legislative history of the
Garn Act appears to support ALTA's argument that
selling title insurance falls outside the authorization of
exemption G. In addition, the Board previously has
concluded that the term "insurance" in the Garn Act
includes title insurance. 6 Accordingly, the Board believes that First Wisconsin's proposal to sell title
insurance through Milwaukee Title is permissible pursuant to exemption G and the Board's regulations.
There is no evidence in the record indicating that
consummation of First Wisconsin's proposal would
result in any undue concentration of resources, adverse effects on competition, conflicts of interests,
unsound banking practices, or any other adverse effects. First Wisconsin will provide an additional
source for insurance that is particularly convenient for
its customers. It has indicated that it will act affirmatively to ensure compliance with all laws and regulations prohibiting tie-ins by advising borrowers that
they can obtain title insurance from any source they
choose. Accordingly, the Board has determined that
the balance of the public interest factors the Board is
required to consider under section 4(c)(8) of the BHC
Act is favorable.
Based upon the foregoing and other facts of record,
the application is hereby approved. This determination
is subject to the conditions set forth in section
225.23(b) of Regulation Y (12 C.F.R. § 225.23(b)) 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 BHC Act and the Board's regulations and orders
issued thereunder, or to prevent evasion thereof.
The proposal shall be consummated not later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
6. Letter from the Board, to Independence Bancorp, Perkaise,
Pennsylvania (March 17, 1986).
Legal Developments
Board or by the Federal Reserve Bank of Chicago,
pursuant to delegated authority.
By order of the Board of Governors, effective November 17, 1988.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and LaWare. Absent and not voting:
Chairman Greenspan and Governors Heller and Kelley.
WILLIAM W . WILES
Secretary
of the Board
Huntington Bancshares Incorporated
Columbus, Ohio
Order Approving Application to Engage in
Underwriting and Dealing in Certain Securities
Limited Extent
to a
Huntington Bancshares Incorporated, Columbus,
Ohio, a bank holding company within the meaning of
the Bank Holding Company Act (12 U.S.C. § 1841
et seq. ( " B H C Act"), has applied for the Board's
approval under section 4(c)(8) of the BHC Act (12
U . S . C . § 1843(c)(8)) and section 225.23 of the Board's
Regulation Y (12 C.F.R. § 225.23) for its subsidiary,
The Huntington Company, Columbus, Ohio ("Company"), to engage de novo on a limited basis, in
underwriting and dealing in:
(1) municipal revenue bonds, including certain industrial development bonds;
(2) 1 - 4 family mortgage-related securities;
(3) commercial paper; and
(4) consumer-receivable-related securities ("CRRs")
(collectively "ineligible securities").
Company is currently authorized to engage in providing securities brokerage services pursuant to 12
C.F.R. § 225.25(b)(15); investment advisory services
pursuant to section 225.25(b)(4); and underwriting and
dealing in U . S . government securities pursuant to
section 225.25(b)(16). Company has also received
prior approval to purchase and sell gold and silver for
the account of customers; provide advice regarding
structuring and arranging interest rate swaps, interest
rate caps, and similar transactions; provide advice in
connection with merger, acquisition/divestiture and
financing transactions for nonaffiliated financial and
nonfinancial institutions; and furnish evaluation and
fairness opinions in connection with merger, acquisi-
33
tion and similar transactions for nonaffiliated financial
and nonfinancial institutions. 1
Applicant, with consolidated assets of $8.8 billion, is
the 60th largest banking organization in the nation. It
operates twelve subsidiary banks and engages directly
and through subsidiaries in a broad range of permissible nonbanking activities. 2
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (53 Federal Register 40,492
(1988)). 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 B H C Act.
The Board has previously determined that the conduct of the proposed ineligible securities underwriting
and dealing activity is consistent with section 20 of the
Glass-Steagall Act, provided the underwriting subsidiary derives no more than 5 percent of its total gross
revenue from underwriting and dealing in the approved securities over any two-year period. 3 The
Board further found that, subject to the prudential
framework of limitations established in those cases to
address the potential for conflicts of interests, unsound
banking practices or other adverse effects, the proposed underwriting and dealing activities were so
closely related to banking as to be a proper incident
thereto within the meaning of section 4(c)(8) of the
BHC Act. Applicant has committed to conduct its
ineligible underwriting and dealing activities subject to
the 5 percent revenue test and the prudential limitations established by the Board in its
Citicorp!Morgan!
Bankers Trust and Chemical Orders. 4
Consummation of the proposal would provide added
convenience to Applicant's customers. In addition,
the Board expects that the de novo entry of Applicant
into the market for these services would increase the
level of competition among providers of these services. Accordingly, the Board has determined that the
performance of the proposed activities by Applicant
can reasonably be expected to produce public benefits
1. These activities were approved by the Federal Reserve Bank of
Cleveland pursuant to delegated authority by letters dated August 10,
1987, and February 23, 1988.
2. All data are as of June 30, 1988.
3. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust
New
York Corporation,
73 FEDERAL RESERVE BULLETIN 473 (1987)
("Citicorp/Morgan/Bankers Trust"), ajf d sub nom., Securities Industry Association v. Board of Governors of the Federal Reserve System,
839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) ("SM
v. Board")-, and Chemical New York Corporation, The Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp,
Manufacturers Hanover Corporation and Security Pacific Corporation, 73 FEDERAL RESERVE BULLETIN 731 (1987) ( " C h e m i c a l " ) .
4. Applicant has not proposed a market share limitation. Accordingly, and in light of the decision in SIA v. Board, the Board has
determined not to require Applicant to comply with a market share
limitation.
34 Federal Reserve Bulletin • January 1989
which would outweigh adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act. 5 Based on the above, the Board has
determined to approve the underwriting application
subject to all of the terms and conditions established in
the Citicorp!Morgan!Bankers
Trust and Chemical Orders, except the market share limitation. 6
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Cleveland, pursuant to delegated authority.
By order of the Board of Governors, effective November 28, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
owned subsidiary, Signet Investment Corporation
("SIC"), to provide investment advice and securities
brokerage services to retail and institutional customers. SIC currently engages in discount brokerage activities in accordance with section 225.25(b)(15) of
Regulation Y, 12 C.F.R. § 225.23(b)(15).
Applicant is a multi-bank holding company owning
commercial banks in Virginia, Maryland, and the
District of Columbia. At June 30,1988, the corporation
reported total assets of $11.4 billion and total deposits
of $7.6 billion.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been duly published (53 Federal
Register
43,476 (1988)). 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 Bank Holding
Company Act.
The Board has previously determined that the combined offering of investment advice and securities
execution services to institutional and retail customers
from the same bank holding company subsidiary is
closely related and a proper incident to banking under
section 4(c)(8) of the B H C Act, and does not violate
the Glass-Steagall Act. National Westminister
Bank
PLC,
JAMES MCAFEE
Associate
Secretary
of the Board
et
al.,
7 2 FEDERAL RESERVE BULLETIN
(1986) ("NatWest"J;1
tion,
74
Bank of New England
FEDERAL RESERVE BULLETIN
584
Corpora700
(1988)
{"BNEC").
Signet Banking Corporation
Richmond, Virginia
Order Approving Application to Engage in
Combined Investment Advisory and Securities
Brokerage
Activities
Signet Banking Corporation, Richmond, Virginia
("Applicant" or "Signet"), a bank holding company
within the meaning of the Bank Holding Company Act
(the " B H C Act") (12 U . S . C . § 1841 et seq.), has
applied for the Board's approval under section 4(c)(8)
of the BHC Act and section 225.23(a)(3) of the Board's
Regulation Y, 12 C.F.R. § 225.23(a)(3), for its wholly
5. Company may also provide services that are necessary incidents
to these approved activities. The incidental services should be taken
into account in computing the gross revenue limit on the underwriting
subsidiary's ineligible underwriting and dealing activities, to the
extent such limits apply to particular incidental activities.
6. The industrial development bonds approved in those applications
and for Applicant in this case are only those tax exempt bonds in
which the governmental issuer, or the governmental unit on behalf of
which the bonds are issued, is the owner for federal income tax
purposes of the financed facility (such as airports, mass commuting
facilities, and water pollution control facilities). Without further
approval from the Board, Company may underwrite or deal in only
these types of industrial development bonds.
SIC proposes to conduct its brokerage and advisory
activities within the same framework approved by the
Board in BNEC. Signet has, however, proposed to
establish certain interlocking relationships between
SIC and its bank affiliates. Signet proposes that certain
non-sales, non-executive employees of its affiliated
banks will provide clerical and support services for
SIC, and that certain non-executive officers of Signet's
bank affiliates will serve as directors of SIC. These
employees and directors will not have contact with the
public or participate in the sales activities of SIC.
Officers and employees of SIC would not otherwise be
employees or officers of any of Applicant's subsidiary
banks. In particular, SIC's sales personnel will be
employees of SIC and not of Signet's bank subsidiaries. Applicant has also committed that it will not
permit its banks to share confidential customer information with SIC, and SIC will not be permitted to
transmit its advisory research or recommendations,
either through the proposed interlocks or otherwise, to
1. Affirmed, sub. nom., Security Industry Ass'n v. Board of
Governors, 821 F.2d 810 (D.C. Cir. 1987), cert, den., 108 S. Ct. 697
(1988).
Legal Developments
the commercial lending department of any bank affiliate.
The Board has previously permitted these types of
limited interlocks for affiliates providing full-service
brokerage. 2
Based upon the foregoing and other considerations
reflected in the record, and in reliance on the commitments offered by Applicant regarding the conduct of
SIC's affairs, the Board has determined that the public
benefits associated with consummation of this proposal can reasonably be expected to outweigh possible
adverse effects, and that the balance of the public
interests factors that the Board is required to consider
under section 4(c)(8) of the BHC Act is favorable.
Accordingly, the Board believes that the application
should be, and hereby is, approved. This determination is subject to all of the conditions set forth in the
Board's Regulation Y, including those in sections
225.4(d) and 225.23(b), and to the Board's authority to
require modification or termination of the activities of
the holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with the
provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder, or
to prevent evasion thereof.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Richmond, pursuant to delegated authority.
By order of the Board of Governors, effective November 28, 1988.
Voting for this action: Chairman Greenspan and Governors
Johnson, Seger, Angell, Heller, Kelley, and LaWare.
JAMES MCAFEE
Associate
Secretary
of the
Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Bank of Boston Corporation
Boston, Massachusetts
35
Bank of Boston Corporation ("Bank of Boston"),
Boston, Massachusetts, a bank holding company
within the meaning of the Bank Holding Company Act
of 1956 ( " B H C Act") (12 U . S . C . § 1841 et seq.), 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
BankVermont Corporation, Burlington, Vermont, and
thereby indirectly to acquire Bank of Vermont
("Bank"), Burlington, Vermont. Applicant also has
applied for the Board's approval pursuant to section 4
of the BHC Act (12 U . S . C . § 1843(c)(8)) to acquire
BankVermont's nonbanking subsidiary, Future Planning Associates, Inc., South Burlington, Vermont, and
thereby engage in providing retirement plan consulting, design and actuarial and administrative services to
corporations and individuals.
Notice of the applications, affording an opportunity
for interested persons to submit comments, has been
duly published (53 Federal Register 30,868 (1988)).
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
sections 3(c) and 4(c)(8) of the BHC Act (12 U . S . C .
§§ 1842(c) and 1843(c)(8)).
Bank of Boston controls banks in Massachusetts,
Connecticut, Rhode Island and Maine, with total deposits of $15.5 billion. 1 Bank of Boston is the second
largest commercial banking organization in Massachusetts, controlling deposits of $10.8 billion, representing
20.3 percent of the deposits in commercial banking
organizations in the state. It is the fifth largest commercial banking organization in Connecticut, controlling 7.3 percent of bank deposits in the state; the
second largest commercial banking organization in
Rhode Island, controlling 22.6 percent of bank deposits in the state; and the second largest commercial
banking organization in Maine, controlling 21.8 percent of bank deposits in the state.
BankVermont is the fifth largest banking organization in Vermont, controlling deposits of $513 million,
representing 8.7 percent of deposits in banking organizations in the state. 2
Because Bank of Boston does not operate a bank in
any market in which Bank of Vermont is located,
consummation of the proposal would not have a
Order Approving Acquisition of a Bank Holding
Company and its Bank and Nonbank
Subsidiaries
2.
J.P. Morgan
and Company,
Inc., 73 FEDERAL RESERVE BUL-
LETIN 810 (1987) ("J.P. Morgan") (back-office employees); Bankers
Trust New
York Company,
74 FEDERAL RESERVE BULLETIN 695
(1988) ("BTNY") (an officer of a bank affiliate permitted to serve as a
director of a brokerage subsidiary dealing exclusively with institutional investors).
1. All banking data are as of June 30, 1988.
2. Bank of Vermont, which is the largest subsidiary bank of
BankVermont, currently is a qualified savings bank, and BankVermont currently meets the definition of a savings bank holding company under section 2 of the Bank Holding Company Act as amended
by the Competitive Equality Banking Act of 1987. 12 U.S.C. § 1841
(1) & (m). Upon consummation of this proposal Bank of Vermont
would cease to be a qualified savings bank for purposes of the Bank
Holding Company Act, and consequently, would no longer be entitled
to the exemptions provided in section 3(f)(4) of the Bank Holding
Company Act. 12 U.S.C. § 1842(f)(4).
36
Federal Reserve Bulletin • January 1989
substantial adverse effect on competition in any relevant banking market. Consummation of the proposal
would also not have any significant adverse effect on
probable future competition in any relevant banking
market.
The Douglas Amendment to the BHC Act prohibits
the Board from approving an application by a bank
holding company to acquire control of any bank located outside of the bank holding company's home
state unless 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." 3
Bank of Boston's home state is Massachusetts.
Effective December 31, 1987, a Vermont statute authorizes a "New England bank holding company", 4
such as Bank of Boston, to acquire a Vermont bank or
bank holding company with the approval of the Vermont Commissioner of Banking and Insurance, if a
Vermont bank holding company may acquire a bank in
the New England bank holding company's home
state. 5 A Massachusetts statute permits bank holding
companies located in Vermont to acquire control of a
Massachusetts financial institution. 6
Based on the foregoing and subject to approval of
the proposal by the Vermont Commissioner of Banking and Insurance pursuant to Vermont's interstate
banking statute, the Board has determined that the
proposed acquisition is specifically authorized by the
statute laws of Vermont and that Board approval is not
prohibited by the Douglas Amendment. The Board's
Order is specifically conditioned upon satisfaction of
the state regulatory requirement.
The financial and managerial resources and future
prospects of Bank of Boston, Bank Vermont, and their
respective subsidiaries are considered satisfactory and
consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board has taken into
account the records of Bank of Boston's subsidiary
banks under the Community Reinvestment Act
("CRA") (12 U.S.C. § 2901 et seq.). The CRA
3. 12 U.S.C. § 1842(d). 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.
4. Under the Vermont statute, a New England bank holding
company is defined as a bank holding company principally located in
the states of Connecticut, Massachusetts, New Hampshire or Rhode
Island. 8 Vermont Statutes Annotated § 1051 et seq.
5. The Vermont interstate banking statute requires the Vermont
Commissioner of Banking and Insurance to issue a determination that
the acquirer's principal place of business is in a reciprocal state.
8 V.S.A. § 1054(a). The Vermont Commissioner of Banking and
Insurance by letter dated July 13, 1988, determined that Massachusetts is a reciprocal state.
6. Massachusetts General Laws Annotated Chapter 167A, § 2.
requires the Board to assess the records of these
subsidiaries in meeting the credit needs of their entire
communities, including low- and moderate-income
neighborhoods, consistent with safe and sound operation, and to take these records into account in its
evaluation of bank holding company applications.
The Board has received extensive submissions from
the Vermont Community Reinvestment Association
("VCRA"), the Massachusetts Urban Reinvestment
Advisory Group ("MURAG"), the Rhode Island
Community Reinvestment Association ("RICRA"),
and the Citizens' Research and Education Network
("CREN"), (collectively, "Protestants"), 7 regarding
the CRA performance of Bank of Boston's subsidiary
banks. 8 Protestants allege that Bank of Boston has
engaged in a pattern of closing branch offices in lowand moderate-income areas, that its subsidiary banks
provide inadequate credit services in low- and moderate-income areas, discourage small business borrowers, exclude low- and moderate-income areas from
their service areas, and fail to maintain satisfactory
relationships with community development organizations. Bank of Boston has submitted a detailed response to the comments made by Protestants. In this
regard, a private meeting was held between Protestants and Bank of Boston to clarify the issues and
provide a forum for the resolution of differences. This
meeting, however, did not produce a resolution of the
differences between Bank of Boston and Protestants.
The Board has carefully considered the record of
this application, including the comments of Protestants and Bank of Boston's response, in light of the
requirements of the CRA and the implementing regu7. The Board has also received and considered comments from the
Community and Economic Development Office of the City of Burlington and the Valley Community Development Corporation.
8. In connection with this application, Protestants had requested an
extension of the public comment period in order to permit the
Protestants an opportunity to conduct an extended study of the
pattern of branch openings and closings by Bank of Boston. The
Board had earlier determined not to extend the public comment period
in this case beyond September 7, 1988, but stated that it would
consider any comments submitted by these Protestants prior to the
time the Board acted on this case regarding any aspect of the CRA
performance of the institutions involved in this case. The Protestants
have availed themselves of this opportunity, and have made a number
of submissions through October 31, 1988. As discussed above, the
Board has carefully reviewed all of these comments. The Board will
consider any additional comments or extended studies that are completed by Protestants or other interested parties regarding the CRA
record of the bank subsidiaries of Applicant in the context of future
applications. The regulations of the Board and the other federal
banking agencies require banks, in connection with their CRA statement, to maintain a public file of comments submitted regarding the
institution's CRA record. See, e.g., 12 C.F.R. § 228.5. Comments
and studies subsequently submitted by Protestants or other interested
parties should also be submitted to the banks for inclusion in these
public files. This will permit the appropriate federal banking agency
for the individual bank to give appropriate consideration to these
comments in the examination by that agency of the CRA performance
of the bank.
Legal Developments
lations of the federal banking agencies. Based upon
this record, the Board believes that the Bank of
Boston has a satisfactory program in place to ensure
that its subsidiary banks carry out their responsibilities
under the CRA to serve the convenience and needs of
their communities, including low- and moderateincome neighborhoods, and that its subsidiary banks'
CRA performance is consistent with approval of the
application.
In implementing the CRA, the Board and the other
federal banking agencies have issued regulations specifying the assessment factors that would be taken into
account during the examination process to determine
whether the institution is meeting its responsibilities
under the CRA. See 12 C.F.R. § 228.7. Based upon
these factors and the Board's experience over the
years in examining bank performance under the CRA,
the Board believes that institutions with the most
effective programs to help meet community credit
needs share a number of elements. They maintain
outreach programs which include procedures to permit
effective communication between the bank and various segments of the community and formalized methods for incorporating findings regarding community
credit needs into the development and delivery of
products and services. They monitor institutional performance at the senior management or board of director level and periodically evaluate new opportunities
for innovative lending programs, such as home mortgage and neighborhood residential rehabilitation lending and similar programs, to meet specific community
credit needs, including those of low- and moderateincome persons. An effective program also includes
the use of specifically designed marketing and advertising plans to stimulate public-awareness of the
bank's services throughout the community, including
low- and moderate-income neighborhoods, as well as
support of community development projects and programs.
Initially, the Board notes that Bank of Boston's
subsidiary banks have each received satisfactory ratings from their primary regulators in examinations of
their CRA performance. In addition, the record shows
that the First National Bank of Boston ("Boston
Bank"), Applicant's lead bank, has a program in place
that contains the necessary elements as outlined above
to encourage effective CRA performance. The program has a community outreach component that calls
for ongoing community contact by branch and departmental staff regarding the needs of the community,
including low- and moderate-income neighborhoods,
and the products and services that the bank offers to
meet these needs. To promote community input regarding the community's needs and the development
of its products and services, the Boston Bank has
37
established a community investment department,
which routinely visits community development corporations, technical assistance organizations, school
groups, public officials, human service providers,
housing groups and business associations. The Boston
Bank's staff is also involved in numerous community
organizations and advisory groups throughout its area.
The Boston Bank's mortgage originators maintain
regular contact with local realtors and attend real
estate brokerage industry seminars to ensure familiarity with the community's housing needs. The Boston
Bank periodically conducts customer surveys and
participates in a monthly survey of regional small
business conditions.
The Boston Bank also seeks through specialized
marketing efforts to ensure that all segments of the
community are aware of its services. For example, the
Bank regularly uses newspapers and media outlets,
including neighborhood weeklies and ethnic publications, to reach all segments of the community.
The Boston Bank also has established a formalized
system to monitor its CRA performance. This system
includes a CRA compliance department with responsibility for monitoring implementation of the Boston
Bank's CRA policies. In addition, the Bank annually
prepares an internal report that discusses the outreach
programs the Bank has in place to determine the needs
of the community and outlines the steps taken by the
Bank to satisfy those needs. This report is presented to
the Boston Bank's board of directors and senior management. In addition, staff of the Bank's community
investment department reports on a regular basis to a
subcommittee of the board of directors of the Bank
regarding the Bank's CRA performance.
Bank of Boston's other bank subsidiaries have similar CRA programs in place. Staff of the community
investment department of the Boston Bank maintains
working relationships with those banks, monitors their
CRA performance, and reports to Bank of Boston's
board of directors on performance of each of these
banks at least annually.
The record also shows that the Bank of Boston's
subsidiary banks have loan penetrations in all segments of their communities, including low- and moderate-income neighborhoods. An analysis of the Boston Bank's HMDA data indicates that a substantial
percentage of its 1-4 family mortgage loans, home
improvement, multi-family dwelling loans, and nonoccupant housing loans were made in low- and moderate-income census tracts throughout the area it
serves. With respect to small business lending, the
Boston Bank has been an SBA lender for over 20 years
and has more than $275 million outstanding in loans,
including certified SBA loans, to small businesses,
with substantial amounts originated over the last sev-
38
Federal Reserve Bulletin • January 1989
eral years. The Bank is also a participant in the Boston
Neighborhood Development Bank, providing nearly
half of the loans originated by that organization. The
Boston Bank has also participated recently in funding
cooperative housing in its area, providing nearly $1
million in funds for the rehabilitation of a housing
cooperative unit in Boston.
In evaluating the Boston Bank's CRA performance,
the Board has considered comments that the Bank
does not make loans in the Pittsfield, Massachusetts
area, where 24 percent of the HMDA tracts are
considered low- and moderate-income areas. An analysis of HMDA data, however, reveals that Boston
Bank is lending in the Pittsfield area and that a
significant percentage of its lending in that community
is in low- and moderate-income communities. Regarding Bank of Boston's Connecticut subsidiary, an analysis of HMDA data reveals that the bank, after its
acquisition by Bank of Boston in 1985, has improved
loan service to low- and moderate-income communities. Similarly, an analysis of HMDA data indicates
that Bank of Boston's Rhode Island bank subsidiary is
lending in low- and moderate-income communities.
The Board expects that Bank of Boston will continue
its efforts to improve the CRA performance of its
banks in Connecticut and Rhode Island.
The Board has given particular attention to comments that Bank of Boston has a policy to close
branches in low- and moderate-income neighborhoods
and to concentrate on higher income areas. The record
shows that the bank subsidiaries of Bank of Boston
have opened and closed branches in their service areas
in Connecticut, Massachusetts and Rhode Island.
An analysis of the branch closings and openings by
Bank of Boston does not reveal a pattern of disinvestment in low- and moderate-income areas. The record
shows that Bank of Boston maintains many branches
in low- and moderate-income communities throughout
its service areas and in fact has opened branches in
these areas over the last several years. There is no
apparent practice of opening branches solely in higherincome areas and closing branches in lower-income
areas. The record shows that branches were closed in
high-income areas as well as in low- and moderateincome communities, and that the decision to close
individual branches was made in response to an assessment of the actual and expected profitability of
these units, including the need to provide up-to-date
facilities or to eliminate duplicative facilities resulting
through Bank of Boston's acquisitions and mergers. In
other instances, Bank of Boston's subsidiary banks
sold branches to competing firms within a market, thus
maintaining office area convenience, or reopened the
branches at new locations in close proximity to the
closed branches.
Finally, the Board notes that Bank of Boston has in
place a written corporate policy concerning branch
closings that requires management to notify the public
in advance of any proposed closing, and to conduct an
analysis of the impact of the branch closing on the
local community and efforts that may be made to
minimize any adverse impact.
The Board also notes that Bank of Vermont has
received a satisfactory CRA assessment from its primary regulator. Protestants have not alleged any deficiencies in Bank's CRA record, and the Board expects
Bank of Boston to continue the satisfactory CRA
performance by Bank after consummation of this
proposal.
For the foregoing reasons, the Board concludes that
convenience and needs considerations are consistent
with approval of these applications. 9
The Board has previously determined that the retirement plan consulting services of Future Planning
Associates, Inc., are closely related to and a proper
incident of banking. 72 FEDERAL RESERVE BULLETIN
337 (1986). 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 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
BankVermont's nonbanking subsidiary.
Accordingly, based upon the foregoing and other
facts of record, the Board has determined that the
applications should be, and hereby are, approved. The
acquisition of BankVermont 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
9. The Board has carefully considered the protestants' requests for
public meetings or hearings in each of the states in which Bank of
Boston subsidiary banks operates. Although section 3(b) of the Bank
Holding Company Act does not require a public meeting or formal
hearing in this instance, the Board may, in any case, order a public
meeting or hearing. 12 C.F.R. § 262.3(e). The Board's Rules of
Procedure also provide that a public meeting may be held to clarify
factual issues related to the record of an applicant in meeting the
convenience and needs of its community, or to provide an opportunity
for interested persons to provide testimony. 12 C.F.R. § 262.25(d).
The Board notes that protestants and Applicant have submitted
substantial written material regarding the CRA performance of the
institutions in this case and have held a private meeting to discuss
these issues. In addition, the state of Vermont has held a public
hearing at which several protestants presented their views. In light of
these facts, the Board believes that a public meeting or hearing is not
necessary to clarify the record in this case and would not serve any
useful purpose, and these requests are, therefore, denied.
Legal Developments
delegated authority. The determinations as to Bank of
Boston'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 termination of
the activities of a holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective November 30, 1988.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Heller, Kelley, and LaWare. Absent and
not voting: Chairman Greenspan.
JAMES MCAFEE
Associate
Secretary
of the Board
Bank of Ireland
Dublin, Ireland
Order Approving
Company
Formation
of a Bank
Holding
Bank of Ireland, Dublin, Ireland ("Applicant"), has
applied for the Board's approval under section 3(a)(1)
of the Bank Holding Company Act (12 U . S . C .
§ 1842(a)(1)) ( " B H C Act"), to become a bank holding
company by acquiring all of the outstanding voting
shares of First N H Banks, Inc., Manchester, N e w
Hampshire ("First N H " ) , 1 and thereby indirectly to
acquire First N H ' s eleven subsidiary banks in Maine
and N e w Hampshire. 2 Applicant has also applied
under section 4(c)(8) of the BHC Act (12 U . S . C .
1. The proposed acquisition would be effected through two wholly
owned subsidiaries of Applicant: Bank of Ireland (U.S.) Holdings,
Inc., Manchester, New Hampshire ("BOI Holdings"); and BOI
Acquisition Corp., a subsidiary of BOI Holdings. BOI Acquisition
Corp. would be merged with and into First NH, which would then
become a direct subsidiary of BOI Holdings.
In connection with this application, Applicant has applied for
approval to exercise a warrant issued by First NH to BOI Holdings
which would allow BOI Holdings to acquire up to 24.9 percent of the
outstanding shares of First NH. The warrant would only be exercisable under certain conditions indicative of an attempted takeover by a
third party.
2. First NH's subsidiary banks are: The Bedford Bank, Bedford,
The Exeter Banking Company, Exeter, First Capital Bank, N.A.,
Concord, First Central Bank, Plymouth, First Cheshire Bank, Keene,
First NH Bank of Lebanon, Lebanon, First NH-White Mountain
Bank, North Conway, Granite State National Bank, Somersworth,
The Merchants National Bank of Manchester, Manchester, and the
Wolfeboro National Bank, Wolfeboro; all in New Hampshire; and
First NH Bank of Maine, Portland, Maine.
39
§ 1843(c)(8)) to acquire the nonbanking subsidiaries of
First N H . 3
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (53 Federal Register 29,950 (1988)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in sections 3(c)
and 4(c)(8) of the BHC Act.
The Douglas Amendment to the BHC Act
(12 U.S.C. § 1842(d)), prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the bank
holding company's principal place of business 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."
Pursuant to the International Banking Act ("IBA"),
Applicant's principal place of business with regard to
the Douglas Amendment would be N e w Hampshire. 4
Hence, Applicant's indirect acquisition of First N H
Bank of Maine, as well as First N H ' s other bank
subsidiaries, which are located in N e w Hampshire, is
not prohibited by the Douglas Amendment or the IBA.
The Board has previously determined that Maine law
authorizes a N e w Hampshire bank holding company
to acquire a Maine bank or bank holding company. 5
Applicant, with total assets of approximately $14.2
billion, is the second largest banking institution in
Ireland. 6 Applicant has 275 offices in Ireland and
3. Applicant has applied to acquire: First NH Mortgage Corp,
Hooksett, New Hampshire, and thereby engage in mortgage banking
activities in New England, including the origination, purchase, sale,
and servicing of residential mortgages; First NH Resources, Inc.,
Boston, Massachusetts, and thereby engage in leasing transactions
involving equipment valued at more than $1 million; New England
Acceptance Corporation, Keene, New Hampshire, and thereby engage in insurance premium financing activities; Vender Funding Co.,
Inc., New Hyde Park, New York, and thereby engage in leasing
equipment valued between $5000 and $250,000; and EG & G Financial
Services, Inc., Wellesley, Massachusetts, and thereby engage in
equipment leasing. These activities are authorized by sections
225.25(b)(1) and (5) of the Board's Regulation Y. 12 C.F.R.
§§ 225.25(b)(1) and (5).
4. Section 5(a)(5) of the IBA (12 U.S.C. § 3103(a)(5)) prohibits a
foreign bank from acquiring voting shares of a bank located outside of
its home state if the acquisition would be prohibited under the Douglas
Amendment if the foreign bank were a bank holding company whose
principal place of business were its home state. Applicant had
originally selected New York as its home state under the Board's
Regulation K (12 C.F.R. § 211.22(b)), but has notified the Board of
its intention to change its home state to New Hampshire pursuant to
the provision of Regulation K permitting a one-time change of home
state (12 C.F.R. § 211.22(c)).
Applicant will also retain its New York branch, which was opened
prior to July 27, 1978, pursuant to the grandfather provisions of
section 5(b) of the IBA (12 U.S.C. § 3103(b)), as well as section
211.22(c)(2) of the Board's Regulation K (12 C.F.R. § 211.22(c)(2)).
5 . First
NH Banks,
Inc.,
7 3 FEDERAL RESERVE BULLETIN 72 (1987).
In addition, the Superintendent of the Maine Bureau of Banking
approved Applicant's proposal on September 8, 1988.
6. Data are as of June 30, 1988.
40
Federal Reserve Bulletin • January 1989
operates 27 branches and 3 representative offices
worldwide including its branch in New York.
First N H is the largest commercial banking organization in New Hampshire, controlling deposits of $1.8
billion, representing 20.9 percent of the total deposits
in commercial banks in New Hampshire. 7 First N H is
also the sixteenth largest commercial banking organization in Maine, controlling deposits of $7.2 million,
representing less than one percent of the total deposits
in commercial banks in Maine. Applicant does not
compete in New Hampshire or Maine, and the Board
concludes that the proposed transaction will not have
any adverse effect on competition, or increase the
concentration of resources, in any relevant market in
the United States. 8
The financial resources of Applicant, First NH,
and its subsidiary banks are consistent with approval.
The Board also has considered previous violations
by First NH's subsidiary banks of the Currency and
Foreign Transactions Reporting Act (31 U.S.C.
§ 5311 e/ seq.) ("CFTRA"). In connection with earlier
proposals by First NH, the Board reviewed First NH's
CFTRA violations that occurred at certain of its NH's
subsidiary banks. 9 In that case, the Board determined
that corrective actions taken by First N H were satisfactory and concluded that overall managerial considerations were consistent with approval.
After consummation of these proposals, additional
CFTRA violations were discovered at certain subsidiary banks of First NH. First NH has assured the
Board that it has implemented CFTRA compliance
procedures at its subsidiary banks sufficient to resolve
these reporting violations, and the FDIC has agreed
with this assessment. The Board has also consulted
with the Department of Treasury regarding these violations.
Applicant has indicated that it regards improved
compliance ratings as a high priority, and that it will
review First NH's continued commitment to compliance matters through the appointment of one of Applicant's representatives to the Audit Committee of
First NH. Applicant also stated that it will review the
compliance record of First N H through periodic reports. On the basis of these factors, and all other facts
of record, the Board concludes that the managerial
7. State banking data are as of December 31, 1987.
8. One of First NH's subsidiary banks, First Cheshire Bank, Keene,
New Hampshire, has a branch in Hinsdale, New Hampshire, which is
part of the Brattleboro, Vermont banking market. Applicant does not
compete in the Brattleboro market, and the Board concludes that the
proposed transaction will not have any adverse effect on competition,
or increase the concentration of resources in that market.
9. First NH Banks, Inc., 13 FEDERAL RESERVE BULLETIN 72 (1987).
resources of Applicant and First N H are consistent
with approval.
In considering the convenience and needs of the
community to be served, the Board has taken into
account the record of First N H ' s banks and Applicants' New York branch under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA").
The CRA requires the 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 end, the CRA
requires the appropriate federal supervisory authority
to "assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
safe and sound operation of the institution." The
Board is required to "take such record into account in
its evaluation" of applications under section 3 of the
BHC Act.
In this regard, the Board has received comments from the Massachusetts Urban Reinvestment
Advisory Group, Inc., Boston,
Massachusetts
("MURAG"), on behalf of itself, the Franklin Area
Community Land Trust, Franklin, N e w Hampshire,
and New Hampshire Citizen's Action. MURAG has
alleged that a foreign bank is incapable of meeting the
credit and financial needs of the local community, and
that the CRA records of First N H and its subsidiaries
show little communication, outreach, or assessment of
community credit needs. 10
Initially, the Board notes that First NH's subsidiary
banks and Applicant's N e w York branch have received satisfactory CRA assessments from their primary supervisory agencies. Applicant has also committed to support fully the CRA and other community
activities pursued by First NH's banks.
Representatives from Applicant and First N H met
with MURAG representatives in connection with this
application, and although the two parties were not
completely able to resolve their differences, First N H
committed, in a letter to MURAG, to continue to
endeavor to meet the credit and financial needs of its
local communities. First N H stated that it will continue to participate in housing programs in low- and
moderate-income neighborhoods, and continue to par10. MURAG also requested that the Board hold a public hearing to
further assess the facts surrounding Applicant's proposal. Under the
Board's rules, the Board may hold a public hearing on an application
to clarify factual issues related to the application and to provide an
opportunity for testimony, if appropriate. 12 U.S.C. § 262.25(d). In
light of the fact that the parties in this case have had ample opportunity
to present their arguments in writing and to respond to one another's
submissions, the Board has determined that a public meeting would
serve no useful purpose. Accordingly, the request for a public hearing
is denied.
Legal Developments
ticipate in below-market-rate loan programs and offer
competitive mortgage financing products. First N H
also will remain active in groups such as the N e w
Hampshire Community Development Finance Authority and the Northern N e w Hampshire Housing Cooperative in an effort to provide more affordable
housing throughout N e w Hampshire.
Furthermore, First N H will continue its community
outreach program, and establish a program of periodic
meetings with various community groups to continually assess community credit needs. First N H ' s CRA
Officer will also meet periodically, with First N H ' s
marketing committee, as well as senior management of
First N H and the presidents of First N H ' s subsidiary
banks to discuss and evaluate marketing plans and
CRA performance. As noted, Applicant has committed to support these initiatives. Accordingly, on the
basis of the record, including the past CRA performance of First N H and its subsidiary banks and
Applicant's N e w York branch, as well as First N H ' s
future CRA plans, the Board believes that considerations relating to the convenience and needs of the
communities to be served are consistent with approval.
There is no evidence in the record to indicate that
approval of this proposal would result in decreased
competition, in undue concentration of resources,
unfair competition, conflicts of interests, unsound
banking practices, or other adverse effects on the
public interest. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of the applications to acquire First N H ' s nonbanking subsidiaries
and activities.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisitions shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Boston,
acting 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 evasion
thereof.
41
By order of the Board of Governors, effective November 16, 1988.
Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and LaWare. Absent and not voting:
Chairman Greenspan and Governors Heller and Kelley.
JAMES M C A F E E
Associate
Secretary
of the Board
The Royal Bank of Scotland Group pic
Edinburgh, Scotland
Order Approving
Company
Formation
of a Bank
Holding
The Royal Bank of Scotland Group pic, Edinburgh,
Scotland, ("Applicant"), has applied for the Board's
approval under sections 3(a)(1) and 4(c)(8) of the Bank
Holding Company Act of 1956, as amended
(12 U . S . C . §§ 1842(a)(1) and 1843(c)(8)) ("BHC
Act"), to become a bank holding company by acquiring all of the voting shares of Citizens Financial
Group, Inc., Providence, Rhode Island ("Citizens"), 1
a bank holding company, and thereby indirectly acquire Citizens Savings Bank, Providence, Rhode Island, Citizens Trust Company, Providence, Rhode
Island, and Fairhaven Savings Bank, Fairhaven, Massachusetts ("Fairhaven Savings"). 2
Applicant has also applied for the Board's approval
under section 4 of the B H C Act (12 U . S . C . § 1843) to
acquire Gulf States Mortgage Co., Inc., Atlanta, Georgia, a nonbanking subsidiary of Citizens, and thereby
engage in mortgage banking and in the sale of creditrelated insurance. These activities are authorized for
bank holding companies pursuant to the Board's Regulation Y, 12 U . S . C . §§ 225.25(b)(1) and (8).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
duly published (53 Federal Register 29,952 (1988)).
The time for filing comments has expired, and the
Board has considered the applications and all comments received in light of the factors set forth in
sections 3(c) and 4(c)(8) of the B H C Act.
Applicant, with total assets of approximately $40.3
billion, is the 7th largest bank in the United Kingdom
and the 114th largest commercial bank in the world. 3
In the United States, Applicant operates a branch in
1. Citizens (U.K.) Limited, Edinburgh, Scotland, a subsidiary of
Applicant, has also applied to become a bank holding company and
will engage in no other activity than to hold the shares of Citizens.
2. Alternatively, in the event that an entity other than Applicant
gains control of Citizens, Applicant has proposed to acquire an option
to purchase up to 24.99 percent of the voting shares of Citizens.
3. All data are as of March 31, 1988.
42
Federal Reserve Bulletin • January 1989
N e w York City; an agency in San Francisco; and
representative offices in Chicago, Los Angeles and
Houston. Applicant's home state is Rhode Island
under the International Banking Act ("IBA") and the
Board's Regulation K. 4
The Douglas Amendment to the BHC Act
(12 U.S.C. § 1842(d)) prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the bank
holding company's principal place of business 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."
Pursuant to the IBA, Applicant's principal place of
business with regard to the Douglas Amendment
would be Rhode Island. 5 Hence, Applicant's indirect
acquisition of Citizens' two Rhode Island bank subsidiaries is not prohibited by the Douglas Amendment or
the IBA. Applicant's acquisition of Fairhaven Savings, a Massachusetts bank, is also not prohibited by
the Douglas Amendment or the IBA. The Board has
previously determined that Massachusetts law 6 authorizes a Rhode Island bank holding company to acquire
a Massachusetts bank or bank holding company. 7
Massachusetts law requires, however, that the acquiring bank holding company obtain approval for the
acquisition from the Massachusetts Board of Bank
Incorporation. Based on the foregoing, the Board has
determined that, subject to the Applicant's obtaining
approval from the Massachusetts Board, the proposed
acquisition is specifically authorized by the statute
laws of Massachusetts and thus Board approval is not
prohibited by the Douglas Amendment.
4. Applicant originally selected New York as its home state under
the Board's Regulation K (12 C.F.R. § 211.22(b)), but in connection
with this transaction, changed its home state to Rhode Island pursuant
to the provision of Regulation K permitting a one-time change of home
state (12 C.F.R. § 211.22(c)). Section 211.22(c) provides that a foreign
bank may change its home state once if prior notice is filed with the
Board and if domestic branches established and investments in banks
acquired in reliance on its original home state selection are conformed
to those that would have been permissible had the new home state
been selected as its home state originally. Royal may retain its New
York branch, however, because it was acquired prior to July 27, 1978;
therefore the branch is grandfathered and may be retained under
section 5(b) of the International Banking Act (12 U.S.C. § 3103(b)).
5. Section 5(a)(5) of the IBA (12 U.S.C. § 3103(a)(5)) prohibits a
foreign bank from acquiring voting shares of a bank located outside of
its home state if the acquisition would be prohibited under the Douglas
Amendment and if the foreign bank were a bank holding company
whose principal place of business were its home state. As previously
noted, Royal's home state pursuant to Regulation K is Rhode Island.
6. Mass. Ann. Laws Ch. 167A, § 2 (1987).
7. Citizens
Financial
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The acquisition of Citizens
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Boston, acting pursuant to delegated authority. 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 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 7, 1988.
Voting for this action: Chairman Greenspan and Governors
Seger, Angell, Heller, Kelley, and LaWare. Absent and not
voting: Governor Johnson.
Group, Inc., 74 FEDERAL RESERVE BULLETIN
496 (1988); and Fleet Financial Group, Inc., 70 FEDERAL RESERVE
BULLETIN 834 (1984).
Applicant and Citizens do not compete in any market. Consummation of this proposal would not result
in any adverse effect upon competition or increase the
concentration of resources in any relevant market.
Accordingly, the Board concludes that competitive
considerations under the B H C Act are consistent with
approval.
The financial and managerial resources of Applicant
and Citizens are consistent with approval. Convenience and needs considerations are also consistent
with approval.
There is no evidence in the record that approval of
this proposal would result in decreased competition,
undue concentration of resources, unfair competition,
conflicts of interests, unsound banking practices, or
other adverse effects on the public interest. Accordingly, the Board has determined that the balance of
public interest factors it must consider under section
4(c)(8) is favorable and consistent with approval of the
applications to acquire Citizens' nonbanking subsidiary and activities.
JAMES M C A F E E
Associate
Secretary
of the Board
Legal Developments
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY
43
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant
FirstBank Holding Company of
Colorado,
Lake wood, Colorado
FirstBank Holding Company of
Colorado,
Lakewood, Colorado
Bank(s)
Effective
date
First Bank of Southmoor Park, N . A . ,
Denver, Colorado
First Bank at Buckley/Quincy, N . A . ,
Aurora, Colorado
First Bank of Table Mesa, N . A . ,
Boulder, Colorado
FirstBank at 30th/Arapahoe, N . A . ,
Boulder, Colorado
FirstBank at Chambers/Mississippi, N.A.,
Aurora, Colorado
FirstBank of West Vail,
Vail, Colorado
November 14, 1988
Nonbanking
Activity/Company
Effective
date
November 18, 1988
Section 4
Applicant
First Chicago Corporation,
Chicago, Illinois
Norwest Corporation,
Minneapolis, Minnesota
SunTrust Banks, Inc.,
Atlanta, Georgia
The First National Bank of Chicago,
Chicago, Illinois
Midwest Mortgage Services, Inc.,
Oakbrook Terrace, Illinois
Hopkins Insurance Agency, Inc.,
Des Moines, Iowa
BHC Holding, Inc.,
Philadelphia, Pennsylvania
Midwest Mortgage Services, Inc.,
Oakbrook Terrace, Illinois
November 23, 1988
November 18, 1988
November 1, 1988
November 16, 1988
S e c t i o n s 3 and 4
Applicant
Commerce Bancshares, Inc.,
Kansas City, Missouri
Bank(s)
Midwest Financial Group, Inc.,
Peoria, Illinois
Effective
date
November 23, 1988
44 Federal Reserve Bulletin • January 1989
Bank Merger Act
First Interstate Bank of California,
Los Angeles, California
Effective
date
Bank(s)
Applicant
Point West Bank,
Sacramento, California
November 23, 1988
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Section 3
Applicant(s)
Adrian Bancshares, Inc.,
Adrian, Missouri
American Bankshares, Inc.,
Marietta, Georgia
Atcorp, Inc.,
Atco, New Jersey
Bancorp II, Inc.,
Kansas City, Kansas
Banterra Corp.,
Eldorado, Illinois
Berger Bancorp, Inc.,
Berger, Missouri
B.H.C., Inc.,
Arlington, Georgia
Blue Ridge Bankshares, Inc.,
Luray, Virginia
Blunt Bank Holding Company,
Blunt, South Dakota
Buena Vista Bancorp, Inc.,
Chester, Illinois
Central Bancompany,
Jefferson City, Missouri
Citizens Independent Bancorp,
Inc.,
Logan, Ohio
CNB Bancorp, Inc.,
Gloversville, N e w York
Commerce Bancorp, Inc.,
Cherry Hill, New Jersey
Bank(s)
Reserve
Bank
Effective
date
Adrian Bank,
Adrian, Missouri
Cobb American Bank and Trust
Company,
Marietta, Georgia
Atco National Bank,
Atco, New Jersey
The Citizens Bank of Pilot
Grove,
Pilot Grove, Missouri
The Hamilton County Bank,
McLeansboro, Illinois
Farmers and Merchants Bank of
Berger,
Berger, Missouri
Bostwick Banking Company,
Arlington, Georgia
The Page Valley National Bank
of Luray,
Luray, Virginia
State Bank of Blunt, S.D.,
Blunt, South Dakota
Buena Vista National Bank,
Chester, Illinois
Centerre Bank of Branson,
Branson, Missouri
The Citizens Bank of Logan,
Logan, Ohio
Kansas City
October 21, 1988
Atlanta
November 14, 1988
Philadelphia
October 31, 1988
Kansas City
October 28, 1988
St. Louis
November 16, 1988
St. Louis
November 8, 1988
Atlanta
October 31, 1988
Richmond
November 7, 1988
Minneapolis
November 23, 1988
St. Louis
November 4, 1988
St. Louis
November 7, 1988
Cleveland
October 31, 1988
City National Bank and Trust
Company of Gloversville,
Gloversville, New York
Citizens State Bank of New
Jersey,
Forked River, New Jersey
New York
November 9, 1988
Philadelphia
November 4, 1988
Legal Developments
45
Section 3—Continued
Applicant(s)
Bank(s)
Dickinson Financial Corporation,
Chillicothe, Missouri
Citizens State Bank,
Mary ville, Missouri
Community Bank,
Chillicothe, Missouri
First National Bank of Kirksville,
Kirksville, Missouri
Fort Knox National Bank,
Fort Knox, Kentucky
Citizens Bank,
Shelby ville, Missouri
Citizens State Bank of
Montgomery,
Montgomery, Minnesota
The Dulaney National Bank of
Marshall,
Marshall, Illinois
The Security National Bank of
Edgeley,
Edgeley, North Dakota
Bank of Stockton,
Stockton, California
Duke Financial Group, Inc.,
St. Paul, Minnesota
Dulaney Bancorp, Inc.,
Marshall, Illinois
Edgeley Bancorporation, Inc.,
Edgeley, North Dakota
1867 Western Financial
Corporation,
Stockton, California
Empire Bank Corp.,
Homerville, Georgia
Equity Financial Ventures, Inc.,
Hialeah, Florida
Financial Institutions Holding
Corporation,
Riverdale, Maryland
First Bancorporation of Akron,
Akron, Ohio
First Commercial Corporation,
Little Rock, Arkansas
First Commercial Corporation,
Little Rock, Arkansas
FirstMorrill Co.,
Omaha, Nebraska
First of America Bank
Corporation,
Kalamazoo, Michigan
First of America
Bancorporation-Illinois, Inc.,
Libertyville, Illinois
FirstPerryton Bancorp, Inc.,
Perry ton, Texas
Reserve
Bank
Effective
date
Kansas City
October 28, 1988
Minneapolis
October 26, 1988
Chicago
November 23, 1988
Minneapolis
November 16, 1988
San Francisco
November 9, 1988
Empire Banking Company,
Homerville, Georgia
The Village Bank,
Hialeah, Florida
The Bank of Bowie,
Bowie, Maryland
Atlanta
November 2, 1988
Atlanta
November 18, 1988
Richmond
November 23, 1988
The First National Bank in
Massillon,
Massillon, Ohio
Benton State Bankshares, Inc.,
Benton, Arkansas
The Citizens Bank,
England, Arkansas
Morrill Insurance Services, Inc.,
Morrill, Nebraska
Ansley Insurance Agency,
Ansley, Nebraska
Quad Cities First Company,
Rock Island, Illinois
Cleveland
October 28, 1988
St. Louis
November 17, 1988
St. Louis
November 4, 1988
Kansas City
November 8, 1988
Chicago
November 22, 1988
Quad Cities First Company,
Rock Island, Illinois
Chicago
November 22, 1988
The First National Bank of
Hereford,
Hereford, Texas
Dallas
November 10, 1988
46 Federal Reserve Bulletin • January 1989
Section 3—Continued
Applicant(s)
First Shares, Inc.,
Platteville, Wisconsin
Firstshares of Texas, Inc.,
Marshall, Texas
First Southern Bancorp, Inc.,
Stanford, Kentucky
First State Bancorporation,
Taos, New Mexico
Livingston & Company
Southwest, L.P.,
Chicago, Illinois
Livingston Southwest
Corporation,
Chicago, Illinois
Florida Security Holding
Corporation,
Maitland, Florida
F.N.B. Corporation,
Hermitage, Pennsylvania
FNB, Inc.,
Denver, Colorado
FNW Bancorp, Inc.,
Elgin, Illinois
Ford Bank Group, Inc.,
Lubbock, Texas
Fourth Financial Corporation,
Wichita, Kansas
Gore-Bronson Bancorp, Inc.,
Northbrook, Illinois
HMC Holding Company,
Sioux Falls, South Dakota
Indiana Bancshares, Inc.,
Greenwood, Indiana
Jamestown Bancorp, Inc.,
Jamestown, Kentucky
Main Street Banks Incorporated,
Covington, Georgia
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Merchants National Corporation,
Indianapolis, Indiana
Merchants National Corporation,
Indianapolis, Indiana
Bank(s)
Reserve
Bank
Effective
date
The First National Bank of
Platteville,
Platteville, Wisconsin
The First National Bank of
Marshall,
Marshall, Texas
Peoples Bank of Paint Lick,
Paint Lick, Kentucky
First State Bank of Taos,
Taos, New Mexico
New Mexico Bank Corporation,
Inc.,
Albuquerque, New Mexico
First State Bancorporation,
Taos, New Mexico
Chicago
October 31, 1988
Dallas
November 8, 1988
Cleveland
November 2, 1988
Kansas City
November 3, 1988
Kansas City
November 3, 1988
First American Bank of Orange
County,
Maitland, Florida
Farmers National Bank of
Emlenton,
Emlenton, Pennsylvania
Colorado National Bank-Greeley,
Greeley, Colorado
The Heritage Group,
Inc.,
Woodridge, Illinois
Lubbock Bancorporation, Inc.,
Lubbock, Texas
IV Topeka Acquisition, Inc.,
Wichita, Kansas
Fairlawn Plaza Investments, Inc.,
Topeka, Kansas
The Palwaukee Bank,
Prospect Heights, Illinois
Gary State Bank,
Gary, South Dakota
Hoosier Bancshares, Inc.,
Bloomington, Indiana
Bank of Jamestown,
Jamestown, Kentucky
The Bank of Covington,
Covington, Georgia
Scottscom Bancorp, Inc.,
Scottsdale, Arizona
BSB Bancorp,
Batesville, Indiana
Riley Company, Inc.,
East Chicago, Indiana
Atlanta
November 4, 1988
Cleveland
November 4, 1988
Kansas City
November 10, 1988
Chicago
November 9, 1988
Dallas
October 19, 1988
Kansas City
November 10, 1988
Chicago
November 2, 1988
Minneapolis
November 4, 1988
Chicago
November 16, 1988
St. Louis
November 22, 1988
Atlanta
October 19, 1988
Chicago
November 16, 1988
Chicago
October 31, 1988
Chicago
October 24, 1988
Legal Developments
A1
Section 3—Continued
Applicant(s)
Meredosia Bancorporation, Inc.,
Springfield, Illinois
M & M Bancorp, Inc.,
Ellisville, Mississippi
M.O. Packard Investment
Company,
Springville, Utah
Muncy Bank Financial, Inc.,
Muncy, Pennsylvania
National Banc of Commerce
Company,
Charleston, West Virginia
National Banc of Commerce
Company,
Charleston, West Virginia
NBCC, Inc.,
Charleston, West Virginia
New Mexico Bank Corporation,
Inc.,
Albuquerque, New Mexico
North Shore Financial
Corporation,
Duluth, Minnesota
Parker Bancshares, Inc.,
Dover, Delaware
P.C.B. Bancorp, Inc.,
Largo, Florida
Peoples Bancorp Inc.,
Marietta, Ohio
Peoples Bancshares, Inc.,
Elba, Alabama
Peoples Heritage Financial
Group, Inc.,
Portland, Maine
Pioneer Bancorp, Inc.,
Chicago, Illinois
PNC Financial Corp,
Pittsburgh, Pennsylvania
Port St. Lucie National Bank
Holding Corp.,
Port St. Lucie, Florida
Bank(s)
Mount Zion State Bank and
Trust,
Mount Zion, Illinois
M & M Financial Corporation,
Laurel, Mississippi
Merchants and Manufacturers
Bank of Ellisville,
Ellisville, Mississippi
Kolob Investment Company,
Springville, Utah
Reserve
Bank
Effective
date
St. Louis
November 4, 1988
Atlanta
November 10, 1988
San Francisco
November 4, 1988
The Muncy Bank and Trust
Company,
Muncy, Pennsylvania
GuarantyShares of West Virginia,
Inc.,
Huntington, West Virginia
The Bank of Man,
Man, West Virginia
Philadelphia
November 8, 1988
Richmond
November 22, 1988
Richmond
November 22, 1988
The Guaranty National Bank of
Huntington,
Huntington, West Virginia
Banquest National Bank of
Albuquerque,
Albuquerque, New Mexico
Airport State Bank,
Duluth, Minnesota
Richmond
November 22, 1988
Kansas City
November 3, 1988
Minneapolis
November 23, 1988
Dallas
November 23, 1988
Atlanta
November 4, 1988
Cleveland
October 28, 1988
Atlanta
October 21, 1988
Boston
November 17, 1988
Chicago
November 2, 1988
Cleveland
November 7, 1988
Atlanta
October 28, 1988
Weatherford National Bank,
Weatherford, Texas
Pinellas Community Bank,
Largo, Florida
Heartland BancCorp,
Grove City, Ohio
The Peoples Bank,
Elba, Alabama
Oxford Bank and Trust,
Oxford, Maine
Pioneer Bank & Trust Company,
Chicago, Illinois
The Clayton Bank and Trust
Company,
Clayton, Delaware
Port St. Lucie National Bank,
Port St. Lucie, Florida
48
Federal Reserve Bulletin • January 1989
Section 3—Continued
Applicant(s)
Premier Bancshares of Texas,
Inc.,
Victoria, Texas
Raymond Bancorp, Inc.,
Raymond, Illinois
Raymond Acquisition
Corporation,
Raymond, Illinois
Redwood Empire Bancorp,
Santa Rosa, California
Republic Bancorp, Inc.,
Ann Arbor, Michigan
Sebastian Bankshares, Inc.,
Barling, Arkansas
Seligman Bancshares, Inc.,
Seligman, Missouri
Sierra Petroleum Co., Inc.,
Wichita, Kansas
SouthTrust Corporation,
Birmingham, Alabama
Southwest Missouri
Bancorporation, Inc.,
Carthage, Missouri
Terrapin Bancorp, Inc.,
Elizabeth, Illinois
The Bancorp of Tomah, Inc.,
Tomah, Wisconsin
The Bank of New Mexico
Holding Company,
Albuquerque, New Mexico
The Citizens and Southern
Corporation,
Atlanta, Georgia
Citizens and Southern Georgia
Corporation,
Atlanta, Georgia
Thompson Financial, Ltd.,
Fort Worth, Texas
Trenton Trust Bancshares, Inc.,
Trenton, Missouri
Tritten Bancshares, Inc.,
St. Robert, Missouri
Bank(s)
Reserve
Bank
Effective
date
Bank of Kerrville,
Kerrville, Texas
Dallas
November 17, 1988
S.B.V. Banc Shares, Inc.,
Virden, Illinois
St. Louis
October 21, 1988
National Bank of the Redwoods,
Santa Rosa, California
Republic Bank-Oakland,
Bloomfield Hills, Michigan
Citizens Bank of Lavaca,
Lavaca, Arkansas
Bank of Seligman,
Seligman, Missouri
Graham-Michaelis Financial
Corporation,
Wichita, Kansas
NBW Financial Corporation,
Wichita, Kansas
Meigs County Bancshares, Inc.,
Decatur, Tennessee
Bank of Miami,
Miami, Oklahoma
San Francisco
November 4, 1988
Chicago
November 9, 1988
St. Louis
November 10, 1988
St. Louis
November 7, 1988
Kansas City
October 18, 1988
Atlanta
November 22, 1988
Kansas City
November 15, 1988
The Elizabeth State Bank,
Elizabeth, Illinois
First Bank of Tomah,
Tomah, Wisconsin
Western Bank of Springer,
Springer, New Mexico
Chicago
November 14, 1988
Chicago
October 28, 1988
Kansas City
November 18, 1988
Heritage Trust,
Conyers, Georgia
Atlanta
November 23, 1988
Texas Security Bancshares, Inc.,
Fort Worth, Texas
Trenton Trust Company,
Trenton, Missouri
Bank of Plato,
Plato, Missouri
Dallas
November 3, 1988
Kansas City
October 28, 1988
St. Louis
October 25, 1988
Legal Developments
49
Section 3—Continued
Applicant(s)
U.S. Bancorp,
Portland, Oregon
Vineyard National Bancorp,
Rancho Cucamonga, California
Weslaco Bancshares, Inc.,
Weslaco, Texas
Western Springs Bancorp, Inc.,
Chicago, Illinois
WIN Bancorp, Inc.,
Winchester, Illinois
Worthington Bancshares, Inc.,
Indianapolis, Indiana
Wyandotte Ban Corporation,
Kansas City, Kansas
Bank(s)
Bank of Loleta,
Eureka, California
Western Independent
Bancshares, Inc.,
Auburn, Washington
Vineyard National Bank,
Rancho Cucamonga, California
City National Bank,
Weslaco, Texas
Continental Illinois Bank of
Western Springs, National
Association,
Western Springs, Illinois
Winchester National Bank,
Winchester, Illinois
Worthington State Bank,
Worthington, Indiana
The Edwardsville Bank,
Edwards ville, Kansas
Reserve
Bank
Effective
date
San Francisco
November 7, 1988
San Francisco
November 14, 1988
Dallas
October 31, 1988
Chicago
October 28, 1988
St. Louis
November 7, 1988
St. Louis
October 31, 1988
Kansas City
October 28, 1988
Section 4
Applicant
First Bank System, Inc.,
Minneapolis, Minnesota
First Bank System, Inc.,
Minneapolis, Minnesota
Fleet/Norstar Financial Group,
Inc.,
Providence, Rhode Island
F.N.B. Corporation,
Hermitage, Pennsylvania
Montana Bancsystem, Inc.,
Billings, Montana
U.S. Bancorp,
Portland, Oregon
Nonbanking
Activity/ Company
Columbia Savings,
Denver, Colorado
Interstate Lending Corporation,
Englewood, Colorado
Brokers Securities, Inc.,
Norfolk, Virginia
Household Bank, FSB,
Columbus, Ohio
Mr. Richard Mihalovich, d.b.a.
The Insurance Center,
Roundup, Montana
State Financial Services, Inc.,
Bend, Oregon
Reserve
Bank
Effective
date
Minneapolis
October 31, 1988
Minneapolis
November 4, 1988
Boston
November 14, 1988
Cleveland
November 16, 1988
Minneapolis
November 1, 1988
San Francisco
November 14, 1988
50
Federal Reserve Bulletin • January 1989
Sections 3 and 4
Applicant
Big Sioux Financial, Inc.,
Estelline, South Dakota
Fleet/Norstar Financial Group,
Inc.,
Providence, Rhode Island
KeyCorp,
Albany, N e w York
Key Bancshares of Wyoming
Inc.,
Cheyenne, Wyoming
Marietta Bancshares, Inc.,
Marietta, Minnesota
Nonbanking
Activity/ Company
Reserve
Bank
Effective
date
The Farmers State Bank of
Estelline,
Estelline, South Dakota
Farmers State Bank Agency,
Estelline, South Dakota
Indian Head Banks Inc.,
Nashua, N e w Hampshire
Minneapolis
October 21, 1988
Boston
November 18, 1988
First Wyoming Bancorporation,
Cheyenne, Wyoming
First Wyoming Bancorporation,
Cheyenne, Wyoming
N e w York
November 15, 1988
N e w York
November 15, 1988
State Bank of Marietta,
Marietta, Minnesota
Marietta Insurance Agency,
Marietta, Minnesota
Minneapolis
November 3, 1988
APPLICATIONS APPROVED UNDER BANK MERGER
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Applicant
Central Florida Banc Shares,
Inc.,
Maitland, Florida
First City Bank of Dallas,
Dallas, Texas
Scottscom Bank,
Scottsdale, Arizona
The State Savings Bank of South
Lyon,
South Lyon, Michigan
Bank(s)
First American Bank of Orange
County,
Maitland, Florida
First City Bank of Lewisville,
Lewisville, Texas
First City Bank of Piano, N . A . ,
Piano, Texas
Thunderbird Bank,
Phoenix, Arizona
First of America Bank-Ann
Arbor,
Ann Arbor, Michigan
Reserve
Bank
Effective
date
Atlanta
November 4, 1988
Dallas
November 22, 1988
San Francisco
November 16, 1988
Chicago
October 20, 1988
Legal Developments
51
Banks in which the Board
of
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against
Governors is not named a party.
MCorp v. Board of Governors, No. CA3-88-2693-F
(N.D. Tex., filed October 28, 1988).
White v. Board of Governors, No. CU-S-88-623-RDF
(D. N e v . , filed July 29, 1988).
VanDyke v. Board of Governors, No. 88-5280 (8th
Cir., filed July 13, 1988).
Whitney v. United States, et al., No. CA3-88-1596-H
(N.D. Tex., filed July 7, 1988).
Baugh v. Board of Governors, No. C88-3037 (N.D.
Iowa, filed April 8, 1988).
Bonilla v. Board of Governors, No. 88-1464 (7th Cir.,
filed March 11, 1988).
Cohen v. Board of Governors, No. 88-1061 (D.N.J.,
filed March 7, 1988).
Stoddard v. Board of Governors, No. 88-1148 (D.C.
Cir., filed February 25, 1988).
Independent Insurance Agents of America, Inc. v.
Board of Governors, No. 87-1686 (D.C. Cir., filed
November 19, 1987).
the Federal Reserve
Irving Bank Corporation v. Board of Governors, N o .
88-1176 (D.C. Cir., filed March 1, 1988).
National Association of Casualty and Surety Agents,
et al., v. Board of Governors, N o s . 87-1644, 871801, 88-1001 88-1206, 88-1245, 88-1270 (D.C.
Cir., filed N o v . 4, Dec. 21, 1987, Jan. 4, March 18,
March 30, April 7, 1988).
Teichgraeber v. Board of Governors, N o . 87-2505-0
(D. Kan., filed Oct. 16, 1987).
Northeast Bancorp v. Board of Governors, N o . 871365 (D.C. Cir., filed July 31, 1987).
National Association of Casualty & Insurance Agents
v. Board of Governors, N o s . 87-1354,87-1355 (D.C.
Cir., filed July 29, 1987).
The Chase Manhattan Corporation v. Board of Governors, N o . 87-1333 (D.C. Cir., filed July 20, 1987).
Lewis v. Board of Governors, N o s . 87-3455, 87-3545
(11th Cir., filed June 25, Aug. 3, 1987).
CBC, Inc. v. Board of Governors, N o . 86-1001 (10th
Cir., filed Jan. 2, 1986).
A1
Financial and Business Statistics
WEEKLY REPORTING COMMERCIAL
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
A6 Selected borrowings in immediately available
funds—Large member banks
POLICY
INSTRUMENTS
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holdings
MONETARY
AND CREDIT
AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL BANKING
INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
A19
A20
A21
A22
BANKS
Assets and liabilities
All reporting banks
Banks in N e w York City
Branches and agencies of foreign banks
Gross demand deposits—individuals,
partnerships, and corporations
FINANCIAL
MARKETS
A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities
FEDERAL
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U . S . budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U . S . Treasury—Types
and ownership
A31 U.S. government securities dealers—
Transactions
A32 U . S . government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 N e w security issues—State and local
governments and corporations
A35 Open-end investment companies—Net sales
and asset position
A35 Corporate profits and their distribution
A35 Total nonfarm business expenditures on new
plant and equipment
56
Federal Reserve Bulletin • January 1989
A36 Domestic finance companies—Assets and
liabilities and business credit
REAL
ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
A56 U.S. reserve assets
A56 Foreign official assets held at Federal Reserve
Banks
A57 Foreign branches of U.S. banks—Balance
sheet data
A59 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS IN THE UNITED
CONSUMER INSTALLMENT
A39 Total outstanding and net change
A40 Terms
FLOW OF FUNDS
A41 Funds raised in U.S. credit markets
A43 Direct and indirect sources of funds to credit
markets
A44 Summary of credit market debt oustanding
A45 Summary of credit market claims, by holder
Domestic
SELECTED
Nonfinancial
Statistics
A59
A60
A62
A63
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A63 Banks' own claims on unaffiliated foreigners
A64 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A65 Liabilities to unaffiliated foreigners
A66 Claims on unaffiliated foreigners
MEASURES
A46 Nonfinancial business activity—Selected
measures
A47 Labor force, employment, and unemployment
A48 Output, capacity, and capacity utilization
A49 Industrial production—Indexes and gross value
A51 Housing and construction
A52 Consumer and producer prices
A53 Gross national product and income
A54 Personal income and saving
International
SUMMARY
STATES
CREDIT
Statistics
STATISTICS
A55 U.S. international transactions—Summary
A56 U.S. foreign trade
SECURITIES HOLDINGS AND
TRANSACTIONS
A67 Foreign transactions in securities
A68 Marketable U.S. Treasury bonds and notes—
Foreign transactions
INTEREST AND EXCHANGE
RATES
A69 Discount rates of foreign central banks
A69 Foreign short-term interest rates
A70 Foreign exchange rates
A71 Guide to Tabular
Presentation,
Statistical Releases, and Special
Tables
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)
Item
1
2
i
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Nontrgnsaction
10 In M2 y
11 In M3 only 6
1987
1988
Q4
Ql
2.5
1.4
2.4
7.8
1988
Q2
Q3'
June
July
Aug.'
Sept.'
Oct.
3.5
2.9
1.5
8.3
5.8
7.2
-6.5
7.6
4.3
4.0
2.5
6.6
5.4
8.6
-4.8
6.2
11.9
9.7
5.1
10.4
-2.9
-1.9
1.1
2.5
-1.9
-2.3
6.4
5.5
-.7
-2.6
10.4
5.7
3.9
3.9
5.5
5.8
10.0
3.8
6.8
7.r
6.9r
8.0
6.3
7.7
7.7'
9.0'
8.5
5.2
3.6
5.7
7.0
8.2
9.8
5.7
7.8 r
4.4 r
8.2r
9.0 r
3.7
7.0'
11.4'
7.7'
.3
2.3
3.8
4.9
8.6
-.2
.9
1.5
1.2
8.2
1.7
1.2
4.7
n.a.
n.a.
3.9
11.9
7.8
8.2'
8.2
7.4'
3.1
13.6
4.3
15.7'
1.8'
19.6'
3.1
9.2
1.3
3.8
1.0
17.9
.7
14.8
10.5
6.3
13.7
3.4
11.0
11.8
6.7
8.8
10.2
21.5
12.9
6.2
23. V
9.6
8.8
25.5'
7.6
12.6
21.1
-2.5
20.0
17.6
-2.5
23.4
15.0
-3.8
16.0
22.2
-2.4
21.3
13.7
6.6
14.0
9.3
5.7
4.5
4.5
9.0
1.7
-.7'
7.0'
1.3
3.6'
5.4
6.1
-.7
-2.0
10.1
24.3
-8.9
9.0
15.4
7.6
10.7
5.2r
8.0
8.0
5.3'
8.3
8.6
11. r
7.0
8.5
7.3
5.9
10.3
5.4
8.5'
6.3
9.9
8.2
7.2
11.9
7.0
-.7'
n.a.
n.a.
7.1
institutions
components
Time and savings deposits
Commercial banks
Savings
Small-denomination time
Large-denomination time 9,
Thrift institutions
15
Savings
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 depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
dep9sits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all 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.
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 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
Domestic Financial Statistics • January 1989
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
Factors
1988
Aug.
Sept.
Oct.
Sept. 14
Sept. 21
Sept. 28
Oct. 5
Oct. 12
Oct. 19
Oct. 26
251,530
256,979
255,178
254,921
258,506
259,277
258,674
255,459
255,563
254,497
223,140
223,140
226,629
224,058
2,571
8,525
7,191
1,334
225,724
225,210
514
7,482
7,160
322
225,024
224,040
984
7,495
7.191
304
228,026
223,886
4,140
8,887
7,191
1,696
227,983
224,405
3,578
9,715
7,191
2,524
227,163
223,243
3,920
9,495
7,191
2,304
226,071
226,071
225,964
225,964
7,190
7,190
7,186
7,186
0
0
0
225,397
225,094
303
7,198
7,116
82
3,267
595
17,334
11,062
5,018
18,555
2,722
1,154
17,951
11,062
5,018
18,606
2,337
1,219
18,416
11,064
5,018
18,667
3,031
1.192
18,180
11,062
5,018
18,597
2,911
990
17,692
11,062
5,018
18,611
2,257
909
18,413
11,063
5,018
18,625
2,621
1,322
18,073
11,063
5,018
18,639
2,124
1,235
18,839
11,066
5,018
18,653
2,283
1,721
18,409
11,063
5,018
18,667
2,359
828
18,715
11,064
5,018
235,916
396
236,382
392
237,156
398
237,454
389
236,170
389
235,096
389
235,856
391
237,607
405
237,898
401
236,965
3%
3,153
227
7,684
236
5,954
240
3,986
221
8,971
231
12,209
235
9,890
268
5,211
237
5,470
236
5,623
238
1,899
377
1,848
404
1,848
352
1,786
332
1,813
467
1,859
440
1,815
344
1,932
307
1,982
314
1,915
389
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
U.S. government securities 1
3
Bought outright
4
Held under repurchase agreements
5
Federal agency obligations
6
Bought outright
7
Held under repurchase agreements
8
Acceptances
9
Loans
10
Float
11
Other Federal Reserve assets
12 Gold stock 2
13 Special drawing rights certificate a c c o u n t . .
14 Treasury currency outstanding
0
7,194
7,194
0
0
0
0
0
0
0
0
0
0
0
0
18,681
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 3
7,329
7,632
7,617
7,589
7,716
7,674
7,802
7,561
7,567
7,524
36,868
37,087
36,361
37,841
37,441
36,079
37,028
36,935
36,443
36,210
Oct. 12
Oct. 19
Oct. 26
End-of-month figures
Wednesday figures
1988
1988
Aug.
Sept.
Oct.
Sept. 14
Sept. 21
Sept. 28
Oct. 5
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
251,520
261,855
257,722
256,053
274,670
261,227
251,579
256,648
257,243
253,025
24
U.S. government securities 1
25
Bought outright
26
Held under repurchase agreements
27
Federal agency obligations
28
Bought outright
29
Held under repurchase a g r e e m e n t s . . . .
30
Acceptances
31
Loans
32
Float
33
Other Federal Reserve assets
34 Gold stock 2
35 Special drawing rights certificate a c c o u n t . .
36 Treasury currency outstanding
222,795
222,795
229,181
223,573
5,608
11,073
7,191
3,882
225,638
223,041
2,597
8,767
7,116
1,651
225,593
223,556
2,037
7,842
7,191
651
237,589
224,051
13,538
10,730
7,191
3,539
228,858
226,015
2,843
10,285
7,191
3,094
219,636
219,636
225,669
225,669
226,242
226,242
224,263
224,263
7,191
7,191
7,186
7,186
7,186
7,186
7,116
7,116
3,237
659
17,638
11,061
5,018
18,581
2,154
1,199
18,248
11,062
5,018
18,637
2,275
1,690
19,352
11,062
5,018
18,693
2,907
1,335
18,376
11,062
5,018
18,609
7,373
848
18,130
11,063
5,018
18,623
2,664
946
18,474
11,063
5,018
18,637
5,173
1,557
3,546
1,855
18,414
11,063
5,018
18,679
1,980
1,005
11,064
5,018
18,651
2,279
2,992
18,522
11,067
5,018
18,665
11,063
5,018
18,693
235,881
398
235,527
389
237,094
397
237,106
389
235,756
389
235,248
389
236,653
402
238,328
402
237,648
3%
236,948
394
4,390
231
13,023
338
6,151
301
4,846
198
19,014
212
14,694
331
3,917
174
4,842
273
5,532
239
5,690
226
1,634
392
1,605
358
1,662
348
1,640
339
1,640
344
1,603
371
1,605
315
1,628
308
1,629
337
1,662
600
0
7,191
7,191
0
0
0
0
0
0
0
0
0
0
18,022
0
0
0
0
0
0
0
0
0
18,661
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
7,020
7,899
8,463
7,447
7,888
7,509
7,336
7,405
7,330
7,319
36,234
37,433
38,079
38,777
44,131
35,799
35,909
38,212
38,892
34,959
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. Revised for periods between October 1986 and April 1987. At times during
this interval, outstanding gold certificates were inadvertently in excess of the gold
stock. Revised data not included in this table are available from the Division of
Research and Statistics, Banking Section.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions1
Millions of dollars
Monthly averages*
Reserve classification
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 2
Total vault cash 3
Vault*
Surplus
Total reserves
Required reserves
Excess reserve balances at Reserve Banks'
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks . .
Extended credit at Reserve Banks 8
1985
1988
Dec.
Dec.
27,620
22,953
20,522
2,431
48,142
47,085
1,058
1,318
56
499
37,360
24,079
22,199
1,879
59,560
58,191
1,369
827
38
303
37,673
26,155
24,449
1,706
62,123
61,094
1,029
777
93
483
36,027
25,926
24,049
1,877
60,076
59,147
929
1,752
119
1,478
Apr.
May
June
July
Aug.
Sept.
38,429
25,200
23,636
1,564
62,064
61,205
859
2,993
146
2,624
36,509
25,873
24,172
1,700
60,681
59,641
1,040
2,578
246
2,107
37,907
25,717
24,084
1,632
61,991
61,103
888
3,083
311
2,554
37,992
26,479
24,763
1,715
62,756
61,749
1,007
3,440
376
2,538
36,911
26,895
25,054
1,841
61,965
61,012
953
3,241
423
2,653
37,213
26,726
24,940
1,786
62,153
61,181
972
2,839
421
2,059
Biweekly averages of daily figures for weeks ending
1988
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks 2
Total vault cash 3
Vault4.,
Surplus 5 .
Total reserves
Required reserves
i
Excess reserve balances at Reserve Banks'
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve B u l k s . .
Extended credit at Reserve Banks
37,260
26,237
24,492
1,745
61,752
60,692
1,060
2,658
337
2,138
July 13
July 27
Aug. 10
Aug. 24
Sept. 7
Sept. 21
Oct. 5 r
Oct. 19
Nov. 2
38,831
26,270
24,629
1,641
63,460
62,599
861
3,656
352
2,340
37,399
26,647
24,889
1,758
62,288
61,085
1,203
3,268
390
2,663
37,343
26,571
24,762
1,810
62,104
61,309
7%
3,339
407
2,748
36,422'
27,400
25,513
1,887
61,935
60,954
981
3,245
431
2,671
37,273
26,351
24,555
1,797
61,827
60,705
1,123
3,093
432
2,482
37,625
26,787
25,054
1,733
62,679
61,896
783
2,971
408
2,075
36,527
26,924
25,063
1,861
61,590
60,442
1,148
2,438
433
1,704
36,678
27,612
25,806
1,806
62,484
61,509
975
2,204
337
1,681
36,090
26,825
25,310
1,515
61,400
60,262
1,139
2,353
285
1,931
1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for
float.
3. Dates refer to the maintenance periods in which the vault cash can be used
to satisfy reserve requirements. Under contemporaneous reserve requirements,
maintenance periods end 30 days after the lagged computation periods in which
the balances are held.
4. 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.
5. 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.
6. 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.
7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy
reserve requirements less required reserves.
8. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.
A6
Domestic Financial Statistics • January 1989
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Member Banks1
Averages of daily figures, in millions of dollars
1988 week ending Monday
Maturity and source
1
2
3
4
Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and U.S. government
agencies
For one day or under continuing contract
For all other maturities
Feb. 15
Feb. 22
Feb. 29
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4
71,220
10,983
70,499
10,336
68,564
10,925
74,546
10,486
74,875
10,990
70,844
11,063
66,924
10,781
75,487
10,964
34,496
7,250
35,712
6,146
36,350
5,926
38,939
7,002
40,780
7,567
38,287
5,974
36,308
6,270
35,383
7,084
Repurchase agreements on U.S. government and federal
agency securities in immediately available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
13,137
16,451
14,778
13,610
13,368
14,974
12,705
13,797
12,181
14,617
12,768
14,374
13,570
13,645
13,685
15,050
25,709
9,655r
25,270
9,173r
24,686
9,588r
24,513
9,613'"
24,704
10,403''
24,364
12,275
25,634
10,562
24,025
11,956
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
34,848
14,115
36,414
13,620
32,112
13,381
35,273
13,953
35,864
14,047
35,301
13,503
31,377
14,184
36,189
12,487
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.
2. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies,
Policy Instruments
A7
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended credit 2
Adjustment credit
and
Seasonal credit
Federal Reserve
Bank
After 30 days of borrowing3
First 30 days of borrowing
On
11/23/88
Effective
date
Previous
rate
On
11/23/88
Effective
date
Previous
rate
On
11/23/88
Effective
date
Previous
rate
Effective date
6 Vl
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
6
6W
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
8/9/88
6
8.95
11/17/88
11/17/88
11/17/88
11/17/88
11/17/88
11/17/88
8.85
11/3/88
11/3/88
11/3/88
11/3/88
11/3/88
11/3/88
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
6W
8/10/88
8/9/88
8/9/88
8/9/88
8/11/88
8/9/88
6
6W
8/10/88
8/9/88
8/9/88
8/9/88
8/11/88
8/9/88
6
8.95
Range of rates for adjustment credit in recent years
Effective date
In effect Dec. 31, 1977.
1978—Jan. 9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
-July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
1980- -Feb. 15
19
May 29
30
June 13
16
11/3/88
11/3/88
11/3/88
11/3/88
11/3/88
11/3/88
8.85
4
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
6
6
(»W
6W
1980—July 28
29
Sept. 26
Nov. 17
Dec. 5
10-11
10
11
12
12-13
10
10
11
12
13
1984—Apr.
9
13
Nov. 21
26
Dec. 24
8W-9
9
8W-9
8W
8
9
9
8 Vi
8W
8
IV*
1981—May
13-14
14
13-14
13
12
14
14
13
13
12
1985—May 20
24
7W-8
7W
7W
7W
1986—Mar.
7-7 W
7
6W-7
6
5W-6
5W
7
7
6W
6
5 Vl
5W
6-6W
6W
6V2-7
7-71/4
1
1
m
73/4
73/4
1
m
8
8-8W
m
8W-9W
9W
8
8W
8W
9W
9W
10
10-10W
10
10W-11
11
11-12
12
11
low
12-13
13
12-13
12
11-12
11
10W
10W
11
12
12
13
13
13
12
11
Effective date
5
8
Nov. 2
6
Dec. 4
1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
Range (or
level)—
All F.R.
Banks
11W-12
11 Vl
11—11 Vi
11
10W
10-10W
10
9W-10
9 Vi
9-9 W
9
8W-9
8W-9
8 Vl
F.R.
Bank
of
N.Y.
11W
11W
11
11
10W
10
10
9W
9W
9
9
9
8W
8W
Effective date
7
10
Apr. 21
July 11
Aug. 21
22
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1987—Sept.
4
11
5W-6
6
6
6
1988—Aug.
9
11
6-6W
6W
6W
6W
6W
6W
In effect November 23, 1988 . .
11
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19,1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate W percent above the rate on adjustment
credit. The program was reestablished on Feb. 18, 1986 and again on Jan. 28,
1987; the rate may be either the same as that for adjustment credit or a fixed rate
W percent higher.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
11/17/88
11/17/88
11/17/88
11/17/88
11/17/88
11/17/88
somewhat above rates on market sources of funds ordinarily will be charged, but
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
Domestic Financial Statistics • January 1989
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval
Depository institution requirements
after implementation of the
Monetary Control Act
Effective date
Net transaction accounts '
$0 million-$41.5 million
More than $41.5 million . . .
12/20/88
12/20/88
5
Nonpersonal time deposits
By original maturity
Less than 1 Vi years
1 xfr years or more
Eurocurrency liabilities
All types
1. Reserve requirements in effect on Dec. 31, 1988. 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. For previous reserve
requirements, see earlier editions of the Annual Report and of the FEDERAL
RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository
institutions include commercial banks, mutual savings banks, savings and loan
associations, credit unions, agencies and branches of foreign banks, and Edge
corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities (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 succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); (2) net other transaction
accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting
with those with the highest reserve ratio. With respect to NOW accounts and
10/6/83
10/6/83
11/13/80
other transaction accounts, the exemption applies only to such accounts that
would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits subject to time deposit reserve requirements).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage increase in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 20,
1988 for institutions reporting quarterly and Dec. 27, 1988 for institutions
reporting weekly, the amount was increased from $40.5 million to $41.5 million.
5. 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.
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1988
Type of transaction
1985
1986
1987
Apr.
Mar.
July
June
May
Aug.
Sept.
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
?
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
22,214
4,118
0
3,500
22,602
2,502
0
1,000
18,983
6,050
0
9,029
560
0
0
0
423
0
0
0
0
0
0
0
0
0
0
0
515
0
0
0
0
0
0
0
1,280
0
0
0
1,349
0
19,763
-17,717
0
190
0
18,673
-20,179
0
3,658
300
21,502
-20,388
70
0
0
2,051
-2,089
0
1,092
0
868
-1,688
0
0
0
1,646
-4,324
0
0
0
1,384
-1,826
0
0
0
1,033
-87
0
0
0
3,932
-4,296
0
0
0
1,368
-1,646
0
1 to 5 years
Gross purchases
Gross sales
1?
Maturity shift
13 Exchange
2,185
0
-17,459
13,853
893
0
-17,058
16,984
10,231
452
-17,974
18,938
0
0
-2,051
2,089
3,661
0
-823
1,434
0
0
-1,102
3,724
0
0
-1,384
1,826
0
0
-997
0
0
0
-1,821
3,971
0
0
-1,368
1,646
5 to 10 years
Gross purchases
Gross sales
16 Maturity shift
17 Exchange
458
100
-1,857
2,184
236
0
-1,620
2,050
2,441
0
-3,529
950
0
0
0
0
1,017
0
-45
254
0
0
-387
400
0
0
0
0
0
0
-36
87
0
0
-2,111
325
0
0
0
0
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
293
0
-447
1,679
158
0
0
1,150
1,858
0
0
500
0
0
0
0
966
0
0
0
0
0
-157
200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
26,499
4,218
3,500
24,078
2,502
1,000
37,171
6,802
9,099
560
0
0
7,160
0
0
0
0
0
0
0
0
515
0
0
0
0
0
1,280
0
0
Matched transactions
75
26 Gross purchases
866,175
865,968
927,997
927,247
950,923
950,935
104,527
104,572
86,900
85,608
115,287
115,115
73,708
72,966
81,979
83,464
124,875
123,220
113,886
113,384
Repurchase agreements2
77 Gross purchases
28 Gross sales
134,253
132,351
170,431
160,268
314,620
324,666
0
0
18,696
11,088
15,871
23,478
10,520
5,334
22,978
28,164
0
0
35,800
30,191
20,477
29,989
11,235
605
13,476
-7,779
4,444
-3,186
-1,655
6,386
0
0
162
0
0
398
0
0
276
0
0
3
0
0
120
0
0
11
0
0
0
0
0
67
0
0
10
0
0
0
22,183
20,877
31,142
30,522
80,353
81,351
0
0
4,243
1,447
4,771
7,566
5,083
2,843
12,355
14,594
0
0
12,107
8,225
1,144
222
-1,274
-3
2,676
-2,807
2,239
-2,306
-10
3,882
21,621
30,211
9,961
602
16,151
-10,585
6,683
-5,492
-1,665
10,268
10
11
14
N
18
19
20
21
All maturities
27 Gross purchases
Gross sales
24 Redemptions
29 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32
Repurchase agreements2
33
34 Gross sales
35 Net change in federal agency obligations
36 Total net change in System Open Market
1. Sales, redemptions, and negativefiguresreduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements,
A10
DomesticNonfinancialStatistics • January 1989
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Account
Sept. 28
Oct. 5
Wednesday
End of month
1988
1988
Oct. 12
Oct. 19
Oct. 26
Aug.
Sept.
Oct.
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
Notes
10
11
Bonds
Total bought outright2
12
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies3
19 All other
20 Total assets
11,063
5,018
384
11,064
5,018
398
11,067
5,018
406
11,063
5,018
424
11,063
5,018
431
11,061
5,018
370
11,062
5,018
397
11,062
5,018
434
2,664
0
0
5,173
0
0
2,279
0
0
3,546
0
0
1,980
0
0
3,237
0
0
2,154
0
0
2,275
0
0
7,191
3,094
7,191
0
7,186
0
7,186
0
7,116
0
7,191
0
7,191
3,882
7,116
1,651
109,038
87,484
29,493
226,015
2,843
228,858
102,659
87,484
29,493
219,636
0
219,636
108,692
87,484
29,493
225,669
0
225,669
109,265
87,484
29,493
226,242
0
226,242
107,286
87,484
29,493
224,263
0
224,263
105,818
87,484
29,493
222,795
0
222,795
106,5%
87,484
29,493
223,573
5,608
229,181
106,064
87,484
29,493
223,041
2,597
225,638
241,807
232,000
235,134
236,974
233,359
233,223
242,408
236,680
6,788
733
8,052
737
12,521
736
8,530
739
6,925
739
6,283
732
8,052
736
6,785
740
9,557
8,184
9,528
7,757
9,784
8,002
9,790
7,885
9,807
8,115
9,797
7,109
9,528
7,984
10,423
8,189
283,534
274,554
282,668
280,423
275,457
273,593
285,185
279,331
LIABILITIES
21 Federal Reserve notes
Deposits
To depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
217,385
218,803
220,471
219,789
219,081
218,068
217,676
219,232
22
23
24
25
37,402
14,694
331
371
37,514
3,917
174
315
39,840
4,842
273
308
40,521
5,532
239
337
36,621
5,690
226
600
37,868
4,390
231
392
39,038
13,023
338
358
39,741
6,151
301
354
26 Total deposits
52,798
41,920
45,263
46,629
43,137
42,881
52,757
46,547
5,842
2,953
6,495
2,821
9,529
2,834
6,675
2,766
5,920
2,743
5,624
2,613
6,853
3,277
5,089
3,051
278,978
270,039
278,097
275,859
270,881
269,186
280,563
273,919
2,097
2,047
412
2,097
2,047
371
2,106
2,047
418
2,107
2,046
411
2,107
2,047
422
2,083
2,041
283
2,097
2,047
478
2,108
2,047
1,257
33 Total liabUities and capital accounts
283,534
274,554
282,668
280,423
275,457
273,593
285,185
279,331
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
224,077
225,395
226,211
227,037
227,713
223,518
225,561
231,250
27 Deferred credit items
x
28 Other liabilities and accrued dividends
29 ToUl liabUities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
LESS: Held by bank
36
37
Federal Reserve notes, net
Collateral held against notes net:
38 Gold certificate account
39 Special drawing rights certificate account
40 Other eligible assets
41 U.S. Treasury and agency securities
265,693
48,308
217,385
265,681
46,878
218,803
266,112
45,641
220,471
266,533
46,744
219,789
267,154
48,073
219,081
263,958
45,890
218,068
265,671
47,995
217,676
267,461
48,229
219,232
11,063
5,018
0
201,304
11,064
5,018
0
202,721
11,067
5,018
0
204,386
11,063
5,018
0
203,708
11,063
5,018
0
203,000
11,061
5,018
0
201,989
11,062
5,018
0
201,596
11,062
5,018
0
203,152
42 ToUl collateral
217,385
218,803
220,471
219,789
219,081
218,068
217,676
219,232
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Type and maturity groupings
Wednesday
End of month
1988
1988
Sept. 28
Oct. 5
Oct. 12
Oct. 19
Oct. 26
Aug. 31
Sept. 30
Oct. 31
1 Loans—Total
2 Within 15 days
3 16 days to 90 days
4 91 days to 1 year
2,664
2,575
89
0
5,173
4,978
195
0
2,279
2,0%
183
0
3,546
3,503
43
0
1,980
1,938
42
0
3,237
3,063
174
0
2,154
1,996
158
0
2,275
2,189
86
0
5 Acceptances—Total
6 Within 15 days
7 16 days to 90 days
8 91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
228,858
14,652
52,197
62,886
58,915
13,700
26,508
219,636
6,553
48,746
68,726
55,403
13,700
26,508
225,669
9,430
51,803
68,826
55,403
13,699
26,508
226,242
10,253
51,486
68,699
55,445
13,851
26,508
224,263
8,873
53,146
66,440
55,445
13,851
26,508
222,795
10,774
50,393
66,296
55,124
13,700
26,508
223,573
2,318
55,265
70,379
55,403
13,700
26,508
223,041
5,789
51,917
70,477
54,499
13,851
26,508
10,285
3,309
742
1,614
3,293
1,138
189
7,191
215
793
1,563
3,293
1,138
189
7,186
148
815
1,607
3,289
1,138
189
7,186
262
701
1,607
3,289
1,138
189
7,116
228
735
1,539
3,322
1,103
189
7,191
287
660
1,647
3,268
1,140
189
7,191
215
793
1,563
3,293
1,138
189
7,116
228
782
1,492
3,322
1,103
189
9 U.S. Treasury securities—Total
10 Within 15 days1
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
16 Federal agency obligations—Total
17 Within 15 days'
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.
A12
DomesticNonfinancialStatistics • January 1989
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
Item
1984
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
1988
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
Seasonally adjusted
CHANGES IN RESERVE REQUIREMENTS 2
1 Total reserves3
2
3
4
5
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base
40.96
47.26
57.46
58.72
59.76
60.37
60.37
60.64
61.24
61.09
61.00
60.96
37.77
40.38
40.11
200.45
45.94
46.44
46.20
218.26
56.63
56.93
56.09
240.80
57.94
58.43
57.69
257.93
58.01
59.49
58.83
263.32
57.38
60.00
59.51
265.81
57.79
59.89
59.32
266.92
57.55
60.11
59.75
268.31
57.80
60.34
60.23
270.63
57.85
60.50
60.14
271.20
58.16
60.21
60.02
272.45
58.66
60.44
59.89
273.75
Not seasonally adjusted
6 Total reserves3
7
8
9
10
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base5
41.84
38.65
41.26
40.99
203.39
48.27
58.70
60.02
58.85
60.95
59.45
60.68
61.47
60.59
60.65
60.55
46.95 57.87
47.45 58.18
47.21 57.33
221.49 244.55
59.25
59.73
58.99
262.05
57.10
58.58
57.92
260.77
57.95
60.58
60.09
265.01
56.88
58.98
58.41
265.73
57.60
60.15
59.79
269.44
58.03
60.57
60.46
272.41
57.35
60.00
59.64
271.73
57.82
59.87
59.68
271.57
58.25
60.03
59.48
272.46
62.12
60.08
62.06
60.68
61.99
62.76
61.97
62.15
61.92
61.35 58.32
61.86 59.58
61.09 59.15
266.16 263.98
59.07
61.89
61.21
268.13
58.10
60.08
59.64
268.90
58.91
61.47
61.10
272.65
59.32
61.99
61.75
275.59
58.72
61.26
61.01
275.03
59.31
61.32
61.18
274.87
59.62
61.46
60.85
275.79
NOT ADJUSTED FOR
,
CHANGES IN RESERVE REQUIREMENTS 6
11 Total reserves3
12
13
14
15
Nonborrowed reserves
Nonborrowed reserves plus extended credit4
Required reserves
Monetary base5
40.70
48.14
59.56
37.51
40.09
39.84
204.18
46.82
47.41
47.08
223.53
58.73
59.04
58.19
247.71
1. Latest monthly and biweekly figures are available from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Figures 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. 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 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. 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.
5. The monetary base not adjusted for discontinuities consists of total reserves
plus required clearing balances and adjustments to compensate forfloatat Federal
Reserve Banks and 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. Currency and vault
cash figures are measured over the weekly computation period ending Monday.
The seasonally adjusted monetary base 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.
6. 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.
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES'
Billions of dollars, averages of daily figures
2
1984
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
1988
July
Aug.'
Sept.'
Oct.
Seasonally adjusted
551.9
2,363.6
2,978.3
3,519.4
5,907.4
620.1
2,562.6
3,196.4
3,825.9
6,716.8
725.4
2,807.7
3,490.8
4,134.3
7,572.7
750.8
2,901.0
3,664.4'r
4,329.3
8,279.3
782.3
3,025.8'
3,836.2'
4,561.0'
8,674.6'
782.5
3,031.6
3,848.3
4,579.7
8,736.6
782.4
3,033.9
3,853.2
4,584.4
8,796.2
783.5
3,036.9
3,868.4
n.a.
n.a.
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits6
156.1
5.2
244.1
146.4
167.7
5.9
267.2
179.2
180.4
6.5
303.3
235.2
196.5
7.1
288.0
259.3
206.3
7.2
290.6
278.2'
207.2
7.2
290.1
278.0
208.5
7.3
288.4
278.2
209.5
7.4
288.6
277.9
10
11
Nontransactions components
In M2 . . . 8
In M3 only
1,811.7
614.7
1,942.5
633.8
2,082.3
683.1
2,150.2
763.4'
2,243.4'
810.5'
2,249.2
816.7
2,251.6
819.3
2,253.4
831.5
12
13
Savings deposits9
Commercial Banks
Thrift institutions
122.6
162.9
124.8
176.6
155.5
215.2
178.2
236.0
189.5
242.4'
190.7
243.5
190.3
243.1
189.9
241.3
14
15
Small-denomination time deposits10
Commercial Banks
Thrift institutions
386.3
497.0
383.3
496.2
364.6
488.6
384.6
528.5
409.8
568.7
414.1
571.6
421.0
576.4
429.2
580.7
16
17
Money market mutual funds
General purpose and broker-dealer
Institution-only
167.5
62.7
176.5
64.5
208.0
84.4
221.1
89.6
229.6
84.8
230.8
84.0
230.9
83.7
231.4
84.6
IK
19
Large-denomination time deposits"
Commercial Banks
Thrift institutions
270.2
146.8
284.9
151.6
288.9
150.3
323.5
161.2
341.2
168.0'
347.2
167.9
352.3
171.3
356.7
173.5
20
21
Debt components
Federal debt
Nonfederal debt
1,366.1
4,541.3
1,585.3
5,131.5
1,805.8
5,766.9
1,956.1
6,323.2
2,040.8
6,633.8'
2,057.7
6,678.9
2,078.2
6,718.0
n.a.
n.a.
785.5
3,030.3'
3,833.5'
4,550.3'
8,639.5'
781.2
3,030.8
3,846.0
4,571.8
8,693.6
779.8
3,029.1
3,851.9
4,580.2
8,755.2
780.9
3,038.4
3,868.8
n.a.
n.a.
1
2
3
4
5
Ml
M2
M3
L
Debt
6
7
8
9
Not seasonally adjusted
564.5
2,373.2
2,991.4
3,532.7
5,901.1
633.5
2,573.9
3,211.0
3,841.4
6,706.8
740.6
2,821.4
3,507.6
4,152.3
7,556.6
Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits6
158.5
4.9
253.0
148.2
170.2
5.5
276.9
180.9
183.0
6.0
314.4
237.3
199.4
6.5
298.5
261.6
207.9
8.2
292.7'
276.8
207.9
8.2
288.7
276.3
207.9
7.9
287.1
276.9
209.0
7.5
288.4
276.1
31
32
Nontransactions components
M2
M3 only8
1,808.7
618.2
1,940.3
637.1
2,080.7
686.2
2,148.8
766.3'
2,244.8'
803.2'
2,249.6
815.2
2,249.3
822.7
2,257.5
830.4
33
34
Money market deposit accounts
Commercial Banks
Thrift institutions
267.4
149.4
332.8
180.8
379.6
192.9
358.2
167.0
359.4
161.7'
357.0
160.1
353.7
157.0
352.3
154.4
35
36
Savings deposits9
Commercial Banks
Thrift institutions
121.5
161.5
123.7
174.8
154.2
212.9
176.7
233.3
191.5'
245.7'
190.9
244.0
189.8
242.3
190.1
242.0
37
38
Small-denomination time deposits10
Commercial Banks
Thrift institutions
386.9
498.2
384.0
497.5
365.3
489.7
385.2
529.3
410.3
568.9
415.3
571.4
422.8
575.6
430.0
582.0
39
40
Money market mutual funds
General purpose and broker-dealer
Institution-only
167.5
62.7
176.5
64.5
208.0
84.4
221.1
89.6
229.6
84.8
230.8
84.0
230.9
83.7
231.4
84.6
41
42
Large-denomination time
deposits"
Commercial Banks12
Thrift institutions
270.9
146.8
285.4
151.9
289.1
150.7
323.6
161.8
338.4
166.5
346.5
167.6
352.3
171.7
356.0
174.6
43
44
Debt components
Federal debt
Nonfederal debt
1,364.7
4,536.4
1,583.7
5,123.1
1,803.9
5,752.8
1,954.1
6,307.1
2,022.3
6,617.2'
2,035.8
6,657.7
2,054.9
6,700.3
77
7.3
24
25
26
Ml
M2
M3
L
27
28
29
30
For notes see following page.
765.9
2,914.7
3,681 .Cr
4,347.4
8,261.2
n.a.
n.a.
A14
DomesticNonfinancialStatistics • January 1989
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (308)
release. Historical data are available from the Monetary and Reserves Projection
section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all 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.
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 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.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, and term Eurodollars of U.S.
residents, money market fund balances (institution-only), less the estimated
amount of overnight RPs and Eurodollars held by institution-only money market
funds.
9. Savings deposits exclude MMDAs.
10. 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.
11. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
12. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
A15
1.22 BANK DEBITS AND DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1988
Bank group, or type of customer
19852
19862
19872
Apr.
Mar.
May
June
July
Aug.
Seasonally adjusted
Demand deposits3
1 All insured banks
2 Major New York City banks
3 Other banks
4
4 ATS-NOW accounts
5 Savings deposits5
156,091.6
70,585.8
85,505.9
1,823.5
384.9
188,345.8
91,397.3
96,948.8
2,182.5
403.5
217,115.9
104,496.3
112,619.6
2,402.7
526.5
218,986.7
101,161.0
117,825.7
2,856.8
640.7
213,971.5
100,695.1
113,276.4
2,557.9
543.7
224,052.3
109,714.7
114,337.6
2,664.9
574.7
230,198.8
111,402.1
118,796.6
2,786.0
597.1
224,512.7
107,336.7
117,176.0
2,570.4
538.3
228,898.2
110,150.0
118,748.2
2,963.6
609.6
500.3
2,196.9
305.7
15.8
3.2
556.5
2,498.2
321.2
15.6
3.0
612.1
2,670.6
357.0
13.8
3.1
628.8
2,811.0
377.3
15.5
3.5
600.2
2,700.6
354.9
13.8
3.0
630.9
2,881.3
360.6
14.2
3.1
649.8
2,911.0
376.0
14.8
3.2
622.7
2,789.6
363.8
13.5
2.9
645.8
2939.3
374.6
15.6
3.2
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts4
Savings deposits5
Not seasonally adjusted
DEBITS TO
Demand deposits
11 All insured banks
12 Msyor New York City banks
13 Other banks
14 ATS-NOW accounts4
15 MMDA°
16 Savings deposits5
156,052.3
70,559.2
85,493.1
1,826.4
1,223.9
385.3
188,506.4
91,500.0
97,006.6
2,184.6
1,609.4
404.1
217,124.8
104,518.6
112,606.1
2,404.8
1,954.2
526.8
233,286.6
109,557.8
123,728.8
2,825.0
2,337.5
616.5
214,848.8
101,141.9
113,706.9
2,745.3
2,372.8
603.2
222,685.5
106,335.6
116,349.9
2,601.3
2,341.0
566.4
241,133.2
117,287.7
123,845.5
2,851.4
2,557.1
598.3
217,350.7
103,561.2
113,789.6
2,536.6
2,399.0
566.2
237,459.0
112,654.6
124,804.4
2,828.0
2,530.0
615.9
499.9
2,196.3
305.6
15.8
4.0
3.2
556.7
2,499.1
321.2
15.6
4.5
3.0
612.3
2,674.9
356.9
13.8
5.3
3.1
684.3
3,005.7
406.4
15.3
6.5
3.4
601.8
2,706.2
355.7
14.4
6.6
3.3
638.6
2,895.6
372.9
14.1
6.6
3.1
679.5
3,121.4
390.3
15.2
7.2
3.2
599.9
2,660.7
351.9
13.4
6.7
3.0
681.6
3,170.3
398.9
15.1
7.2
3.3
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts4
MMDA"
Savings deposits5
1. Historical tables containing revised data for earlier periods may be obtained
from the Monetae and Reserves Projections Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and
of states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes ATS and NOW accounts, MMDA and special club accounts, such
as Christmas and vacation clubs.
6. Money market deposit accounts.
A16
DomesticNonfinancialStatistics • January 1989
1.23 LOANS AND SECURITIES
All Commercial Banks1
Billions of dollars; averages of Wednesday figures
1987
1988
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 leases2
5 Commercial and industrial . . . . .
6
Bankers acceptances held . . .
'/
Other commercial and
industrial
8
U.S. addressees4
9
Non-U.S. addressees4
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables . . . .
19 All other loans
2,235.3
2,233.0
2,244.8
2,264.1
2,281.3
2,304.7
2,328.5
2,348.4
2,360.8
2,374.9
2,373.6'
2,387.5
332.6
195.1
1,707.5
561.3
4.4
335.0
194.5
1,703.5
562.4
4.1
336.4
192.0
1,716.5
565.2
4.3
336.4
193.7
1,734.0
569.3
4.3
340.2
195.7
1,745.4
568.6
4.7
343.8
196.6
1,764.3
578.1
4.6
346.5
196.1
1,786.0
586.3
4.4
350.5
196.5
1,801.5
592.4
4.4
348.0
196.8
1,815.9
598.3
4.4
350.5
196.4
1,827.9
599.4
4.6
352.5'
194.2'
1,826.8'
597.1'
4.5
355.1
195.4
1,836.9
600.9
4.2
556.9
549.4
7.5
581.2
326.3
39.3
558.3
550.2
8.1
588.4
327.8
33.4
560.9
552.2
8.7
593.7
329.8
36.5
564.9
556.3
8.7
599.2
333.0
42.1
564.0
555.8
8.2
604.9
337.0
41.2
573.5
565.5
8.1
611.3
340.4
39.5
582.0
575.1
6.9
618.6
342.8
39.8
588.1
581.3
6.8
625.0
344.4
39.3
593.9
587.4
6.5
631.4
345.3
38.6
594.7
588.4
6.3
638.7
347.0
40.1
592.7
586.4
6.3
644.7
349.1
36.3
596.7
590.6
6.1
652.0
349.6
38.4
31.8
29.5
31.8
29.5
31.4r
29.6
31.8'
29.5
31.2'
29.3
30.4'
29.4
30.9'
29.6
30.6'
29.7'
31^
29.6
30.8'
29.4
29^
29.3
29.8
29.3
54.1
8.2
5.5
24.6
45.8
52.2
7.5
5.3
24.6
40.5'
51.7
7.6
5.4
25.1
40.4'
51.0
7.4
5.1
25.3r
40.4
50.1
7.8
5.1
25.4
44.8'
49.5
8.3
5.1
25.7
46.5'
49.3
8.0
5.1
26.0
49.5'
49.3'
7.9
5.0
26.5
51.3'
50.2
8.2
5.0
27.2
51.C
49.6
8.1
5.2
27.3
52.3'
49.4
7.4
5.2
27.7'
50.7'
48.7
7.6
5.1
28.1
47.3
Not seasonally adjusted
20 Total loans and securities2
2,234.4
2,249.2
2,257.5
2,268.8
2,281.6
2,305.9
2,325.2
2,344.6
2,350.7
2,363.5
2,370.3'
2,382.0
21 U.S. government securities
22 Other securities
23 Total loans and leases2
24 Commercial and industrial . . . . .
25
Bankers acceptances held . . .
Other commercial and
26
industrial
U.S. addressees4.
27
28
Non-U.S. addressees
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
332.5
194.5
1,707.4
560.2
4.4
334.9
195.0
1,719.3
566.4
4.2
337.9
194.6
1,724.9
564.9
4.1
341.5
194.4
1,732.9
568.5
4.3
342.0
195.3
1,744.2
573.8
4.7
343.4
196.2
1,766.3
582.1
4.5
344.9
196.1
1,784.2
588.8
4.4
347.0
196.0
1,801.6
594.0
4.5
347.1
195.5
1,808.1
595.4
4.4
350.5
196.3
1,816.7
594.2
4.6
352.7
194.3'
1,823.3'
593.7
4.5
352.8
194.3
1,834.9
596.4
4.1
555.8
547.7
8.1
581.7
328.0
39.4
562.2
554.1
8.1
589.3
332.1
35.0
560.7
552.8
8.0
594.1
333.3
37.3
564.2
556.0
8.2
598.5
332.4
40.5
569.1
561.2
7.9
604.1
333.9
40.6
577.6
569.7
7.9
610.3
337.4
41.2
584.4
577.3
7.1
618.1
339.9
40.4
589.5
582.6
6.9
624.8
342.3
40.8
591.0
584.0
7.0
631.5
343.8
38.2
589.6
582.9
6.7
638.7
347.1
38.3
589.1'
582.5'
6.6
645.5
350.7'
35.3
592.3
586.1
6.2
652.6
351.3
37.1
32.2
29.8
33.1
29.3
31.6r
28.9
30.8'
28.5
30.3'
28.3
30.3'
28.6
30.7'
29.3
30.6'
30.(y
30.8'
30.3
30.7'
30.3
30.2'
30.3
29.9
30.2
53.1
8.2
5.5
24.3
45.0
52.2
7.9
5.3
24.6
44.0
53.5
7.8
5.4
25.2
42.
52.2
7.6
5.1
25.4
43.3'
51.0
7.7
5.1
25.6
43.9'
50.0
7.9
5.1
25.9
47.5'
49.3
7.7
5.1
26.1
48.9'
48.9
7.8
5.0
26.7
50.8'
49.5
8.2
5.0
27.2
48.2'
49.0
7.9
5.2
27.2
48.0'
48.6
7.6
5.2
27.5'
48.5'
47.9
7.8
5.1
27.6
48.8
1. These data also appear in the Board's G.7 (407) release. For address, see
inside front cover.
2. Excludes loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1988
1987
Source
Total nondeposit funds
Federal funds, RPs, and other 3
borrowings from nonbanks
5 Net balances due to foreign-related
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.'
Oct.
174.5'
176.9
178.4
179.3
180.2
180.6
178.1
180.7
175.8
176.6
183.1
182.2
194.3
194.<r
194.8
191.1
192.2r
188.2'
195.5'
195.8'
181.0
181.6
177.8
178.1
166.7
169.0
163.2
164.1
171.1
171.4
175.0
177.6
178.9
179.8
181.1
180.2
184.5
184.3
186.1
182.4
181.4'
177.4'
176.8'
177.1'
171.9
172.5
173.0
173.3
7.9
15.2
9.1
3.1
-3.1
2.0
9.7
8.7
10.8
18.7
9.1
4.8
-17.1
70.4
53.3
-14.0
69.5
55.5
-16.5
71.2
54.7
-20.2
72.9
52.7
-25.3
76.6
51.4
-22.2
72.9
50.7
-16.5
69.7
53.2
-16.3
69.6
53.3
-14.0
70.3
56.4
-7.2
70.4
63.1
-15.6
74.8
59.1
-20.7
76.7
56.0
24.9
83.2
108.2
29.2
79.8
109.0
25.6
85.2
110.9
23.3
87.3
110.6
22.1
88.6
110.7
24.2
88.3
112.4
26.2
89.9
116.1
25.0
93.6
118.6
24.8
94.1
118.9
26.0
93.9
119.8
24.7
89.6
114.4
25.5
88.4
113.9
107.6
109.9
107.3
108.1'
110.C
110.4
109.0
111.6
109.7
110.6
113.5
112.6
117.7
117.5
122.0
118.3
119.5'
115.5'
116.6'
116.9r
112.6
113.2
112.3
112.6
35.7
25.8
26.1
22.4
18.6
24.9
22.6
28.2
24.9
22.3
21.8
21.7
24.7
30.4
22.0
21.0
20.2
22.0
15.8
11.9
24.5
24.6
30.7
27.7
387.0
387.0
389.2
389.3
389.1
390.1
394.4
394.7
396.1
398.2
394.0
393.9
396.4
397.1
400.5
399.8
406.8'
404.0'
413.6'
412.9'
419.7
419.7
423.7
423.0
MEMO
6 Domestically chartered banks1 net positions
with own foreign branches,
not seasonally adjusted
9 Foreign-related institutions' net positions
with directly related institutions,
Security RP borrowings
U.S. Treasury demand balances7
Time deposits, $100,000 or more®
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks. New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars.
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
DomesticNonfinancialStatistics • January 1989
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Last-Wednesday-of-Month Series1
Billions of dollars
1987
1988
Account
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
2,429.0
514.7
323.6
191.2
16.9
1,897.4
168.1
1,729.3
572.2
593.7
334.1
229.3
2,417.6
515.7
325.5
190.3
2,450.0
517.7
325.7
192.0
20.3
1,912.0
159.5
1.752.4
576.2
607.3
334.8
234.1
2.466.8
519.7
328.8
190.9
19.6
1,927.5
158.0
1.769.5
583.4
612.5
339.1
234.6
2.473.2
521.6
330.7
191.0
20.3
1.931.3
152.3
1.779.1
587.8
619.7
340.0
231.7
2,511.7
518.6
328.0
190.6
22.1
1,971.0
163.7
1,807.3
598.2
627.5
343.2
238.4
2,509.0
521.6
331.6
190.0
23.9
1,963.5
158.7
1,804.8
592.4
633.1
344.1
235.2
2.523.3
525.4
334.6
190.8
1,883.6
159.0
1,724.6
562.9
595.2
332.9
233.6
2,427.7
514.9
325.0
190.0
21.9
1,890.9
161.4
1,729.5
568.9
599.2
332.7
228.7
2.522.7
525.9
336.5
189.4
21.3
1,975.5
151.2
1,824.3
593.8
647.8
351.5
231.2
2,537.9
523.6
334.4
189.2
24.8
1,989.4
158.5
1,830.9
593.8
654.1
351.9
231.1
236.2
36.2
28.4
80.1
213.4
33.3
25.7
70.8
207.4
32.7
25.1
66.9
211.2
214.3
32.2
25.4
76.4
200.3
26.0
25.4
71.5
221.4
34.4
26.5
77.2
217.0
30.7
25.9
75.7
221.8
215.9
31.1
76.4
208.5
31.6
26.3
72.6
36.2
31.7
32.0
51.9
30.3
49.9
29.2
55.3
30.4
52.3
31.6
51.8
31.3
53.5
31.5
50.9
29.4
52.8
29.2
48.8
191.6
181.5
ALL COMMERCIAL BANKING
INSTITUTIONS
1 Loans and securities
Investment securities
2
3
U.S. government securities
4
Other
5 Trading account assets
6 Total loans
7
Interbank loans
Loans excluding interbank
8
9
Commercial and industrial
10
Real estate
11
Individual
12
All other
13 Total cash assets
14 Reserves with Federal Reserve Banks
15 Cash in vault
16 Cash items in process of collection . .
17 Demand balances at U.S. depository
institutions
18 Other cash assets
19 Other assets
20 Total assets/total liabilities and capital...
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
2,856.8
18.2
180.9
2,816.0
32.0
24.8
74.1
48.2
193.1
452.1
205.4
183.5
1,978.4
568.6
535.7
874.1
450.8
202.5
184.4
2,854.3
2.008.5
588.5
540.0
879.9
454.9
207.7
183.2
334.6
339.5
342.1
197.0
194.5
194.7
2,245.1
489.7
313.1
176.6
16.9
1,738.5
133.8
1,604.7
479.2
579.8
333.8
211.9
2.240.5
489.1
313.9
175.2
217.0
35.0
28.4
79.6
34.3
2,011.8
624.9
527.9
859.0
432.8
228.4
183.7
2.812.5
1.971.6
577.4
531.6
190.9
2.871.9
2.011.6
48.3
186.6
2.860.2
22.8
1,975.1
154.7
1.820.4
592.8
641.8
349.2
236.6
33.0
26.5
79.9
26.2
194.3
188.4
187.5
191.8
201.2
2,927.5
2,914.4
2,932.6
2,930.3
2,947.6
2,042.5
603.3
544.5
894.7
487.4
209.7
187.8
2,050.2
598.4
545.4
906.4
470.7
2.058.8
588.3
536.9
933.6
470.8
213.1
187.6
2,067.3
586.9
538.4
941.9
481.3
185.3
2,072.9
609.5
542.2
921.2
452.4
218.5
188.7
595.9
536.4
879.3
465.8
210.1
184.4
2,008.6
579.1
542.2
887.3
458.4
207.4
185.8
341.2
343.4
346.3
344.7
349.2
351.4
352.7
354.3
196.8
195.9
195.6
196.0
196.4
196.7
194.4
194.2
2.246.3
488.6
313.6
175.0
21.9
1,735.8
132.0
1,603.8
475.8
584.5
332.4
2,266.0
491.7
314.5
177.2
20.3
1,754.0
131.2
1,622.9
481.0
592.1
334.5
215.3
2,282.3
494.6
317.7
176.9
19.6
1,768.1
128.5
1,639.6
487.4
597.0
338.8
216.4
2,286.4
495.7
318.6
177.1
20.3
1,770.4
124.9
1.645.6
488.8
603.6
339.7
213.5
2.314.6
492.8
316.3
176.6
22.1
1.799.7
133.1
2.319.3
495.3
319.3
176.1
23.9
2,330.5
499.3
322.8
176.5
492.6
611.4
342.9
219.7
130.7
1.669.4
490.8
617.5
343.8
217.3
1,808.5
125.2
1.683.3
489.7
625.4
348.9
219.2
2,329.1
501.0
325.0
175.9
21.3
1,806.8
2,342.4
498.5
323.1
175.5
24.8
1,819.0
127.8
1,691.2
490.2
636.5
351.6
212.9
194.2
31.7
25.7
70.3
186.6
30.5
25.1
66.4
193.9
30.1
24.7
73.5
196.7
30.7
25.4
75.8
183.0
23.6
25.4
71.0
201.6
32.9
26.4
76.5
196.4
29.5
25.9
75.1
202.8
30.1
36.5
28.8
30.4
28.7
36.0
27.5
29.8
35.8
29.4
29.8
36.0
27.3
35.3
116.0
118.5
123.8
127.8
2.550.6
2.551.4
2,657.2
2,650.3
1.910.2
569.3
529.3
811.6
351.7
108.6
1,916.1
560.7
533.3
1,991.0
579.1
534.4
877.5
358.6
116.4
184.3
2.665.0
1.999.1
577.3
535.8
885.9
363.2
117.0
185.6
37.3
594.1
37.9
598.5
862.6
208.2
210.0
189.0
MEMO
28 U.S. government securities (including
trading account)
29 Other securities (including trading account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30 Loans and securities
31 Investment securities
32
U.S. Treasury securities
33
Other
34 Trading account assets
35 Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Individual
41
Allother
42 Total cash assets
43 Reserves with Federal Reserve Banks
44 Cash in vault
45 Cash items in process of collection ..
46 Demand balances at U.S. depository
institutions
47 Other cash assets
48 Other assets
49 Total assets/liabilities and capital
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
39.7
126.4
2,588.5
1,948.3
616.9
525.6
805.8
337.5
122.3
180.5
18.2
1.733.1
130.3
1,602.8
472.7
581.7
332.6
215.9
211.1
35.8
822.0
349.9
104.4
35.2
123.1
2,583.0
1,944.5
580.0
537.6
826.9
350.1
108.6
121.3
2,600.3
1,948.1
587.2
533.9
827.0
358.4
112.7
35.6
118.3
2.587.7
1,944.7
570.7
539.8
834.2
351.7
180.2
181.1
179.9
181.1
108.8
31.3
550.4
31.7
552.9
32.1
560.0
33.0
564.0
33.7
569.9
182.4
1,666.6
125.6
2.641.8
1,800.1
36.5
121.6
22.8
31.4
26.4
79.2
1.976.9
594.5
541.8
840.6
369.4
111.0
2,637.4
1,984.4
589.6
542.9
851.9
358.5
112.5
184.5
182.0
2.006.4
600.6
539.7
866.1
345.7
119.6
185.4
34.8
576.6
35.3
582.2
36.3
589.2
121.8
1,685.0
489.2
631.5
351.2
213.2
193.4
29.0
26.2
75.7
189.7
29.8
26.3
71.9
27.2
34.4
132.9
MEMO 4
57 Real estate loans, revolving
58 Real estate loans, other
31.7
548.2
1. Back data are available from the Banking and Monetary Statistics section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Data have been revised because of benchmarking to new Call reports beginning
January 1987.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
4. Memorandum items for real estate loans; revolving and other, are shown as
separate breakdowns for the first time.
Weekly Reporting Commercial Banks
A19
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS'
Millions of dollars, Wednesday figures
Aug. 31
1 Cash and balances due from depository institutions —
2 Total loans, leases, and securities, net
3 U.S. Treasury and government agency
4 Trading account
Investment account
5
6
Mortgage-backed securities
All other maturing in
7
One year or less
Over one through five years
8
Over five years
9
10 Other securities
11 Trading account
12 Investment account
13
States and political subdivisions, by maturity
14
One year or less
15
Over one year
16
Other bonds, corporate stocks, and securities
17 Other trading account assets
18 Federal funds sold 3
19 To commercial banks
20 To nonbank brokers and dealers in securities
21 To others
22 Other loans and leases, gross
23 Other loans, gross
24
Commercial and industrial
25
Bankers acceptances and commercial paper
26
All other
27
U.S. addressees
28
Non-U.S. addressees
29
Real estate loans
30
Revolving, home equity
31
Allother
32
To individuals for personal expenditures
33
To depository and financial institutions
34
Commercial banks in the United States
35
Banks in foreign countries
36
Nonbank depository and other financial institutions
37
For purchasing and carrying securities
38
To finance agricultural production
39
To states and political subdivisions
40
To foreign governments and official institutions —
41
Allother
42 Lease financing receivables
43 LESS: Unearned income
44
Loan and lease reserve
45 Other loans and leases, net
46 All other assets
47 Total assets
48 Demand deposits
49 Individuals, partnerships, and corporations
50 States and political subdivisions
51
U.S. government
52 Depository institutions in the United States
53
Banks in foreign countries
54 Foreign governments and official institutions
55 Certified and officers' checks
56 Transaction balances other than demand deposits
57 Nontransaction balances
58 Individuals, partnerships, and corporations
59 States and political subdivisions
60
U.S. government
61 Depository institutions in the United States
62
Foreign governments, official institutions, and banks
63 Liabilities for borrowed money
64
Borrowings from Federal Reserve Banks
65 Treasury tax-and-loan notes
66 All other liabilities for borrowed money5
67 Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities)6
MEMO
70
71
72
73
74
75
76
77
7
Total loans and leases (gross) and investments adjusted
Total loans and leases (gross) adjusted 7
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less ..
Loans sold outright to affiliates—total®
Commercial and industrial
Other
Nontransaction savings deposits (including MMDAs)...
Sept. T
Sept. 2V
Sept. 28r
Oct. 5
Oct. 12
107,444
103,487
105,122
119,433
106,386
1,132,483
1,127,376
1,137,731
1,132,809
1,140,338
131,888
18,144
113,744
43,630
131,705
16,595
115,110
44,140
132,212
17,529
114,683
44,221
132,752
18,534
114,218
44,193
132,826
18,784
114,042
44,466
19,242
42,472
9,165
72,311
1,480
70,831
46,704
5,475
41,229
24,127
3,203
19,209
41,812
9,093
72,201
1,499
70,702
46,581
5,463
41,117
24,121
2,864
19,354
42,478
9,138
72,583
1,836
70,747
46,563
5,454
41,109
24,184
3,254
72,747
48,384
15,158
9,205
893,391
870,569
296,999
1,776
295,224
292,8%
2,328
68,399
45,916
13,792
8,692
891,978
869,0%
2%,297
1,710
294,586
292,265
2,322
19,228
41,550
9,247
72,779
1,564
71,215
46,236
5,468
40,768
24,979
3,502
67,251
43,109
16,317
7,825
8%,574
873,414
298,074
1,701
296,373
294,152
19,234
41,240
9,101
72,776
1,5%
71,180
46,140
5,420
40,719
25,040
3,634
66,653
42,452
15,039
9,163
892,826
870,025
296,295
1,825
294,470
292,111
2,358
19,212
41,832
9,418
72,762
1,736
71,027
46,293
5,452
40,841
24,734
3,336
73,973
50,554
15,068
8,351
895,743
872,629
298,476
1,685
296,791
294,539
2,252
289,725
20,339
269,386
164,534
48,446
22,381
3,875
22,190
12,605
5,562
29,865
2,0%
20,897
290,672
20,486
270,185
164,875
46,935
20,867
4,246
22,801
21,066
22,822
4,924
35,701
852,200
128,377
4,942
35,664
852,785
128,306
291,036
20,509
270,527
165,253
45,331
20,158
3,865
21,308
12,744
5,555
29,722
2,250
20,908
22,882
4,947
35,597
851,434
127,177
291,650
20,620
271,030
164,855
46,133
20,551
3,939
21.643
12,462
5,613
29,546
2,250
21.644
23,114
4,921
35,374
855,447
133,691
292,314
20,707
271,606
164,158
47,818
21,338
4,882
21,599
12,369
5,587
29,512
22.552
4,871
35,768
855,206
123,960
288,632
20,194
268,438
163,954
50,276
23,425
4.456
22,396
12,254
5,534
29,930
2,191
21,872
22,710
4,894
35,777
853,367
125,158
21,395
23,160
4,934
35,117
856,524
133,444
3,%2
21,640
13,925
5,585
29,452
2,138
21,857
23,178
4,862
35,110
859,348
130,717
1,362,888
1,372,061
1,364,133
1,368,233
1,358,040
1,376,544
1,385,686
1,377,442
229,554
184,138
6,157
1,656
21,794
7,169
695
7,945
73.553
609,987
569,598
29,842
987
8,722
838
264,324
2,600
6,750
254,973
93,775
235,528
185,481
6,078
1,501
25,346
7,722
651
8,749
75,362
611,997
571,800
29,899
890
8,586
228,746
183,247
5,814
3,514
21,418
6,037
690
216,068
221,565
174,319
5,774
2,070
20,713
6,377
713
11,599
70,221
612,025
572,172
29,855
893
232,206
25,739
244,244
90,237
868
8,985
73,902
616,774
576,569
30,408
890
8,056
850
278,315
4,130
13,956
260,229
83,693
238,057
189,160
5,288
1,776
25,389
6,905
581
8,959
73,328
617,829
577,586
30,539
872
7,991
840
279,945
1,750
16,856
261,339
83,992
223,717
177,227
5,658
4,107
21,710
6,500
688
7,827
72,480
617,061
577,108
30,394
917
7,7%
846
283,452
2,901
18,482
262,069
88,454
106,720
111,668
1,132,208
1,135,235
130,952
16,883
114,069
43,528
132,268
17,366
114,901
43,763
18,690
42,882
8,970
72,652
1,722
70,929
46,889
5,430
41,459
24,040
4,068
19,252
42,546
9,340
72,273
1.455
70,818
46,732
5,468
41,263
24,087
3,963
73,364
46,562
16,906
9,897
894,038
871,328
296,684
2,000
294,683
292,263
2,420
69,329
42,644
18,070
8,615
895,845
873,293
296,449
1,897
294,552
292,167
2,385
288,586
20,104
268,482
164,022
50,643
24,432
4,286
21,925
13,667
5,636
30,037
2,230
22,022
108,944
1,126,812
132,444
17,850
114,594
43,716
21,822
12,410
5,594
29,830
2,187
2,222
2,186
71,754
46,430
16,737
8,586
899,321
876,142
297,985
1,703
296,281
294,056
2,225
293,594
20,808
272,785
164,119
47,487
21,886
270,379
2,450
5,938
261,991
87,026
73,873
613,259
572,979
29,959
884
8,600
837
266,689
2,350
9,084
255,255
89,282
172,612
6,346
1,586
19,902
6,637
702
8,283
71,505
612,125
572,244
29,607
883
8,550
841
287,493
5,731
25,603
256,159
88,657
1,271,193
1,280,292
1,271,850
1,275,848
1,266,032
1,284,890
1,293,152
1,285,164
91,694
91,768
92,284
92,384
92,009
91,654
92,534
92,278
1,105,770
898,098
190,783
19,414
1,289
843
446
252,236
1,105,920
897,416
191,241
19,801
1,442
996
446
253,002
1,102,605
894,646
192,424
19,831
1,339
893
446
251,874
1,103,840
8%,887
193,066
1,101,847
894,304
192,807
18,708
1,386
946
441
248,946
1,106,922
898,611
194,374
18,959
1,303
879
424
251,186
1,108,412
899,378
193,821
18,715
1,304
879
426
252,360
1,111,995
902,759
194,166
18,986
1,291
866
426
250,789
822
1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised
somewhat, eliminating some former reporters with less than $2 billion of assets
and adding some new reporters with assets greater than $3 billion.
2. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes federal funds purchased and securities sold under agreements to
Sept. 14r
8,026
20,186
1,307
866
441
249,554
8,261
844
271,983
2,000
182,012
5,975
5,118
23,136
6,111
repurchase; for information on these liabilities at banks with assets of $1 billion or
more on Dec. 31, 1977, see table 1.13.
6. This is not a measure of equity capital for use in capital-adequacy analysis or
for other analytic uses.
7. Exclusive of loans and federal funds transactions with domestic commercial
banks.
8. Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
A20
DomesticNonfinancialStatistics • January 1989
1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
IN NEW YORK CITY1
Millions of dollars, Wednesday figures
1988
Account
Aug. 31
1 Cash balances due from depository institutions
2 Total loans, leases and securities, net2
Securities
3 U.S. Treasury and government agency
4 Trading account
5 Investment account
6 Mortgage-backed securities4
All other maturing in
7
One year or less
8
Over one through five years
9
Over five3 years
10 Other securities 3
11 Trading account
12 Investment account
13
States and political subdivisions, by maturity
14
One year or less
Over one year
15
lb
Other bonds, corporate stocks, and securities
1/ Other trading account assets
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
4J
44
45
46
Loans and leases 5
Federal funds sold
To commercial banks
To nonbank brokers and dealers in securities
To others
Other loans and leases, gross
Other loans, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To depository and financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank depository and other financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
AHother
Lease financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
All other assets
47 Total assets
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
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 money8
Other liabilities and subordinated notes and debentures
68 Total liabilities
69 Residual (total assets minus total liabilities)9
Sept. 7
Sept. 14
Sept. 21
Sept. 28
Oct. 5
Oct. 12
Oct. 19
Oct. 26
21,672
23,295
25,567
24,973
25,240
22,715
25,251
21,944
20,285
217,470
216,669
214,186
218,003
213,331
211,942
212,650
218,380
212,164
0
0
14,615
5,662
0
0
15,240
5,663
0
0
14,943
5,662
0
0
15,253
5,728
0
0
15,399
5,906
0
0
15,056
5,935
0
0
15,074
5,905
0
0
15,306
6,119
0
0
15,198
6,110
2,274
4,664
2,015
0
0
16,665
12,770
1,127
11,643
3,895
0
2,527
4,674
2,376
0
0
16,739
12,755
1,210
11,545
3,984
0
2,446
4,762
2,073
0
0
16,802
12,750
1,218
11,533
4,052
0
2,605
4,873
2,046
0
0
16,796
12,722
1,223
11,499
4,073
0
2,656
4,760
2,076
0
0
16,855
12,728
1,230
11,497
4,127
0
2,249
4,783
2,088
0
0
17,171
12,711
1,229
11,482
4,460
0
2,337
4,760
2,070
0
0
17,165
12,703
1,230
11,473
4,462
0
2,377
4,754
2,057
0
0
17,197
12,652
1,224
11,428
4,545
0
2,306
4,720
2,062
0
0
17,206
12,653
1,226
11,427
4,553
0
28,923
13,116
10,180
5,626
172,362
166,924
56,194'
444
55,75C
55,285'
465
48,874
3,135
45,739
21,061'
21,338
12,498
2,520
6,320
5,782
215
6,727
707
6,026
5,439
1,572
13,524
157,266r
56,182
28,430
11,689
9,610
7,131
171,403
165,962
56,55C
457
56,092r
55,624'
468
48,757
3,138
45,619
21,112'
21,438
12,192
2,734
6,512
4,488
188
6,738
668
6,022
5,442
1,582
13,562
156,260
56,535'
26,723
11,553
8,932
6,239
170,880
165,381
56,820'
409
56,410'
56,010'
401
48,728
3,158
45,571
21,247'
20,783
12,175
2,197
6,411
4,872
188
6,711
576
5,455
5,499
1,597
13,565
155,718
56,679'
30,548
15,752
8,794
6,001
170,548
165,044
56,652'
390
56,262'
55,86C
402
48,911
3,187
45,724
21,337'
20,342
11,413
2,629
6,300
4,578
215
6,713
671
5,624
5,504
1,610
13,531
155,406
57,928'
26,444
12,850
7,722
5,871
169,776
164,267
56,544'
355
56,189'
55,781'
409
48,842
3,098
45,743
21,438'
19,430
11,217
2,208
6,005
4,866
200
6,688
711
5,546
5,509
1,630
13,513
154,633
57,961'
25,177
12,510
7,401
5,267
169,432
163,954
55,825
363
55,462
55,071
392
49,341
3,107
46,234
21,120
19,985
11,367
2,542
6,076
4,360
203
6,689
724
5,707
5,478
1,624
13,269
154,538
61,586
25,200
10,937
8,866
5,397
170,132
164,636
56,030
376
55,654
55,265
388
49,215
3,128
46,087
20,632
21,098
11,631
3,202
6,265
4,434
222
6,647
656
5,702
5,4%
1,621
13,300
155,212
63,863
29,831
14,362
9,313
6,156
170,930
165,406
55,973
368
55,606
55,222
383
49,569
3,128
46,441
20,431
20,132
11,459
2,401
6,272
5,761
263
6,615
618
6,044
5,524
1,582
13,301
156,046
62,012
26,759
12,608
8,123
6,028
167,894
162,370
55,474
352
55,122
54,700
422
49,366
3,142
46,224
20,449
19,501
11,235
1,989
6,277
4,804
247
6,560
5%
5,372
5,525
1,598
13,295
153,001
63,701
295,324'
296,499'
296,433'
300,904'
296,532'
296,244
301,764
302,336
296,150
54,954
39,495
586
173
5,612
6,052
527
2,508
54,811
37,993
655
192
5,571
6,491
518
3,389
53,682
38,866
621
560
5,306
4,962
556
2,809
52,054
36,707
592
184
5,028
5,478
563
3,502
55,992
37,151
550
357
5,668
5,196
534
6,535
53,516
36,786
910
1,032
5,555
4,957
708
3,567
55,520
39,033
590
243
5,928
5,642
432
3,651
53,195
37,717
597
834
5,424
5,278
526
2,818
50,013
35,664
550
467
5,370
4,635
444
2,883
8,599
106,131
96,772
6,942
29
2,066
321
60,159'
0
2,034r
58,126
39,327
8,765
106,374
97,082
6,964
28
1,986
314
66,825'
0
1,648
65,177'
33,408
8,736
105,746
96,567
6,969
30
1,869
312
66,446'
0
2,799
63,647'
35,294
8,457
106,079
97,016
6,886
30
1,827
320
72,550'
2,15c
7,212
63,188'
35,184
8,335
106,425
97,138
7,125
30
1,814
318
64,396'
0
7,213
57,183'
35,083
8,663
107,490
97,784
7,580
29
1,776
320
70,285
1,595
3,556
65,134
30,012
8,618
108,884
99,019
7,703
27
1,826
309
72,084
0
4,728
67,357
29,731
8,573
109,499
99,222
8,108
29
1,822
318
72,342
0
5,163
67,180
32,024
8,373
109,263
98,984
8,131
32
1,806
310
69,315
0
5,928
63,386
32,576
269,17c
270,183'
269,904'
274,325'
270,232'
269,967
274,838
275,634
269,541
26,154
26,316
26,528
26,579
26,300
26,277
26,927
26,702
26,609
206,951
175,671
38,341
4,538
207,931
175,952
38,527
4,590
205,620
173,875
38,268
4,199
205,979
173,930
38,901
4,415
204,406
172,152
38,889
3,978
202,959
170,732
39,974
3,491
205,002
172,764
40,062
3,346
207,442
174,939
40,924
3,990
203,215
170,811
40,941
3,600
MEMO
70
71
72
73
Total loans and leases (gross) and investments adjusted2,
Total loans and leases (gross) adjusted
Time deposits in amounts of $100,000 or more
U.S. Treasury securities maturing in one year or less
1. These data also appear in the Board's H.4.2 (504) release. For address, see
inside front cover.
2. Excludes trading account securities.
3. Not available due to confidentiality.
4. Includes U.S. government-issued or guaranteed certificates of participation
in pools of residential mortgages.
5. Includes securities purchased under agreements to resell.
6. Includes allocated transfer risk reserve.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
7. Includes trading account securities.
8. Includes federal funds purchased and securities sold under agreements to
repurchase.
9. Not a measure of equity capital for use in capital adequacy analysis or for
other analytic uses.
10. Exclusive of loans and federal funds transactions with domestic commercial banks.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS 1
Liabilities
A21
Assets and
Millions of dollars, Wednesday figures
Account
Sept. T
Sept. 14R
Sept. 2Y
Sept. 28R
10,754
108,073
11,243
108,238
10,579
106,193
11,571
108,522
11,330
108,124
10,810
111,005
10,389
109,214
11,434
111,938
10,286
109,648
8,075
7,719
8,785
6,726
2,058
83,495
56,116
8,050
7,302
9,309
7,095
2,214
83,576
56,236
8,130
7,309
7,131
4,876
2,255
83,623
56,042
8,228
7,271
8,712
6,457
2,255
84,310
56,140
7,885
7,153
7,463
4,842
2,621
85,622
56,570
7,978
7,178
8,064
5,690
2,374
87,785
58,023
8,035
7,186
7,583
5,201
2,382
86,410
57,492
7,756
7,320
10,198
7,972
2,226
86,663
56,877
7,760
7,315
9,290
6,852
2,437
85,283
56,758
1,713
54,403
52,473
1,930
15,380
11,153
876
3,351
1,639
54,598
52,673
1,924
15,491
11,267
1,070
3,154
1,576
54,466
52,586
1,880
15,868
11,9%
912
2,959
1,584
54,556
52,838
1,717
16,194
12,289
924
2,981
1,605
54,966
53,179
1,786
16,922
12,906
964
3,052
1,679
56,344
54,609
1,736
17,212
13,114
1,025
3,074
1,595
55,897
54,277
1,620
16,615
12,330
974
3,311
1,617
55,259
53,678
1,582
17,759
13,462
1,247
3,050
1,630
55,128
53,460
1,668
16,460
12,372
1,133
2,955
639
1,265
10,095
31,813
13,836
164,477
646
1,275
9,927
31,366
16,084
166,931
644
1,189
9,880
31,049
15,076
162,8%
677
1,445
9,854
31,267
18,884
170,244
638
1,481
10,011
31,518
15,910
166,883
639
1,647
10,263
30,253
17,264
169,331
642
1,432
10,230
30,248
16,149
166,000
637
1,238
10,152
30,266
17,907
171,546
548
1,235
10,281
30,442
18,220
168,5%
42,776
3,352
43,146
3,592
43,179
3,735
43,931
4,155
43,755
3,697
44,095
3,785
44,245
3,820
43,954
3,836
44,232
4,393
2,169
1,183
39,423
2,182
1,410
39,554
2,509
1,226
39,444
2,464
1,690
39,776
2,540
1,157
40,058
2,459
1,326
40,310
2,471
1,349
40,425
2,486
1,350
40,118
2,613
1,780
39,838
32,307
7,116
32,510
7,044
32,433
7,011
32,682
7,094
33,125
6,933
33,344
6,966
33,451
6,974
33,308
6,809
33,030
6,808
63,041
24,691
67,864
31,511
64,558
28,958
71,038
34,713
66,510
31,433
69,346
34,338
67,445
33,094
72,608
35,647
69,%2
35,242
10,777
13,914
38,350
16,553
14,958
36,353
13,743
15,214
35,601
18,599
16,114
36,325
16,465
14,967
35,077
19,425
14,914
35,007
16,299
16,795
34,351
18,337
17,309
36,%1
19,373
15,869
34,720
27,533
10,817
32,907
25,754
164,477
25,757
10,5%
32,660
23,261
166,931
25,390
10,211
32,413
22,746
162,8%
25,343
10,982
32,135
23,139
170,244
24,228
10,850
32,486
24,132
166,883
24,526
10,481
31,423
24,468
169,331
23,776
10,575
31,387
22,924
166,000
26,219
10,742
31,439
23,546
171,546
23,552
11,168
31,354
23,048
168,5%
90,194
74,401
89,875
74,523
89,320
73,882
89,775
74,276
90,376
75,338
92,202
77,045
91,683
76,462
90,504
75,427
90,424
75,348
Aug.
Cash and due from depository institutions . . .
Total loans and securities
U.S. Treasury and government agency
securities
4 Other securities.
5 Federal funds sold
6
To commercial banks in the United States.
7
To others
8 Other loans, gross
9
Commercial and industrial
Bankers acceptances and commercial
10
paper
11
All other
12
U.S. addressees
13
Non-U.S. addressees
14
To financial institutions
15
Commercial banks in the United States..
16
Banks in foreign countries
17
Nonbank financial institutions
18
To foreign governments and official
institutions
19
For purchasing and carrying securities
20
All other
21 Other assets (claims on nonrelated parties) ..
22 Net due from related institutions
23 Total assets
24
Deposits or credit balances due to other
than directly related institutions
25
Transaction accounts and credit balances .
Individuals, partnerships, and
26
corporations
27
Other
,
28
Nontransaction accounts
Individuals, partnerships, and
29
corporations
Other
30
Borrowings
from other than directly
31
related institutions
Federal
funds
purchased
32
33
From commercial banks in the
United States
34
From others
35
Other liabilities for borrowed money
36
To commercial banks in the
United States
37
To others
38 Other liabilities to nonrelated parties
39 Net due to related institutions
40 Total liabilities
1
2
3
31R
Oct.
5
Oct.
12
Oct.
19
Oct.
26
MEMO
41
42
Total loans (gross) and securities adjusted6 ..
Total loans (gross) adjusted
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. These data also appear in the
Board's H.4.2 (504) release. For address, see inside front cover.
2. Includes securities purchased under agreements to resell.
3. 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
DomesticNonfinancialStatistics • January 1989
1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances, not seasonally adjusted
Commercial banks
Type of holder
1987
1983
1984
Dec.
Dec.
1985
Dec. '4
1988
1986
Dec.
June
Sept.
Dec.
Mar.
June
Sept.
1 All holders—Individuals, partnerships, and
corporations
293.5
302.7
321.0
363.6
340.2
339.0
343.5
328.6
346.5
n.a.
2
3
4
5
6
32.8
161.1
78.5
3.3
17.8
31.7
166.3
81.5
3.6
19.7
32.3
178.5
85.5
3.5
21.2
41.4
202.0
91.1
3.3
25.8
36.6
187.2
90.1
3.2
23.1
36.5
188.2
88.7
3.2
22.4
36.3
191.9
90.0
3.4
21.9
33.9
184.1
86.9
3.5
20.3
37.2
194.3
89.8
3.4
21.9
n.a.
n.a.
n.a.
n.a.
n.a.
Financial business
Nonfinancial business
Consumer
Foreign
Other
Weekly reporting banks
1987
1983
Dec.
7
8
9
10
11
12
All holders—Individuals, partnerships, and
corporations
Financial business
Nonfinancial business
Consumer
Foreign
Other
1984
Dec.2
,4
1988
1986
Dec.
June
Sept.
Dec.
Mar.5
June
Sept.
146.2
157.1
168.6
195.1
179.3
179.1
183.8
181.8
191.5
185.3
24.2
79.8
29.7
3.1
9.3
25.3
87.1
30.5
3.4
10.9
25.9
94.5
33.2
3.1
12.0
32.5
106.4
37.5
3.3
15.4
29.3
94.8
37.5
3.1
14.6
29.3
96.0
37.2
3.1
13.5
28.6
100.0
39.1
3.3
12.7
27.0
98.2
41.7
3.4
11.4
30.0
103.1
42.3
3.3
12.8
27.2
101.5
41.8
3.1
11.7
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
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.
1985
Dec.
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 .
5. Beginning March 1988, these data reflect a change in the panel of weekly
reporting banks, and are not comparable to earlier data. Estimates in billions of
dollars for December 1987 based on the new weekly reporting panel are: financial
business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other,
13.1.
Financial Markets
A23
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1984
Dec.
1983
Dec.
1985
Dec.
1986
Dec.
1987
Dec.
1988
Apr.
May
June
July
Aug.
Sept.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
Financial companies1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
Nonfinancial companies
187,658
237,586
298,779
329,991
357,129
406,484
414,312
417,788
423,599
426,685
421,224
44,455
56,485
78,443
101,072
101,958
133,946
137,838
142,322
148,125
148,224
151,491
2,441
2,035
1,602
2,265
1,428
1,093
1,422
1,448
1,340
983
901
97,042
110,543
135,320
151,820
173,939
180,119
185,876
184,658
185,063
187,305
179,690
35,566
46,161
42,105
70,558
44,778
85,016
40,860
77,099
43,173
81,232
45,703
92,419
47,719
90,598
45,294
90,808
44,975
90,411
47,818
91,156
43,887
90,043
Bankers dollar acceptances (not seasonally adjusted)5
7 Total
Holder
8 Accepting banks
9 Own bills
10 Bills bought
Federal Reserve Banks
11 Own account
12 Foreign correspondents
13 Others
Basis
14 Imports into United States
15 Exports from United States
16 All other
78,309
78,364
68,413
64,974
70,565
64,111
63,381
64,359
63,240
64,036
63,452
9,355
8,125
1,230
9,811
8,621
1,191
11,197
9,471
1,726
13,423
11,707
1,716
10,943
9,464
1,479
10,295
8,929
1,366
9,412
8,588
825
9,734
8,861
873
9,655
8,702
953
9,551r
8,664
888
9,334
8,400
934
418
729
67,807
0
671
67,881
0
937
56,279
0
1,317
50,234
0
965
58,658
0
803
53,013
0
1,050
52,918
0
1,273
53,351
0
1,114
52,471
0
9,915
53,493
0
9,634
53,154
15,649
16,880
45,781
17,845
16,305
44,214
15,147
13,204
40,062
14,670
12,960
37,344
16,483
15,227
38,855
14,735
14,724
34,652
14,045
14,534
34,803
14,244
14,606
35,510
14,001
14,676
34,564
14,608
14,345
35,083
14,622
13,946
34,884
1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with
investors.
4. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
5. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The new reporting group accounts for over 90
percent of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Period
Average
rate
1985—Jan. 15
May 20
June 18
10.50
10.00
9.50
1985.
1986.
1987.
9.93
8.33
7
21
11
26
9.00
8.50
8.00
7.50
1
1
15
Sept. 4
Oct. 7
22
Nov. 5
7.75
8.00
8.25
8.75
9.25
9.00
8.75
1985 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
10.61
10.50
10.50
10.50
10.31
9.78
9.50
9.50
9.50
9.50
9.50
9.50
1986 —Jan.
Feb.
9.50
9.50
1986—Mar.
Apr.
July
Aug.
1987—Apr.
May
1988—Feb.
May
July
Aug.
Nov.
2
11
14
11
28
8.50
9.00
9.50
10.00
10.50
8.21
NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415)
releases. For address, see inside front cover.
Period
Average
rate
1986 —Mar.
Apr.
May
June
July
Aug.
Sept.
Oct..
Nov.
Dec.
9.10
8.83
8.50
8.50
1987 —Sept.
Oct.
Nov.
Dec.
7.90
7.50
7.50
7.50
7.50
1987 —Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
7.50
7.50
7.50
7.75
8.14
8.25
8.25
8.25
1988 —Jan.
Feb.
Mar.
Apr.
May,
June,
July
Aug.
Sept.
Oct.
8.16
A24
DomesticNonfinancialStatistics • January 1989
1.35 INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1988
Instrument
1985
1986
1988, week ending
1987
July
Aug.
Sept.
Oct.
Sept. 30
Oct. 7
Oct. 14
Oct. 21
Oct. 28
MONEY MARKET RATES
1 Federal funds1'2
2 Discount window borrowing1, 1
Commercial paper '
3 1-month
4 3-month
5 6-month
Finance paper, directly placed4.
6 1-month
7 3-month
8 6-month
^
Bankers acceptances '
9 3-month
10 6-month
Certificates of deposit, secondary market
11 1-month
12 3-month
13 6-month
14 Eurodollar deposits. 3-month8
U.S. Treasury bills
Secondary market
15 3-month
16 6-month
17 1-year
Auction average
18 3-month
19 6-month
20 1-year
8.10
7.69
6.80
6.32
6.66
5.66
7.75
6.00
8.01
6.37
8.19
6.50
8.30
6.50
8.24
6.50
8.38
6.50
8.27
6.50
8.27
6.50
8.29
6.50
7.93
7.95
8.00
6.61
6.49
6.39
6.74
6.82
6.85
7.72
7.82
7.90
8.09
8.26
8.36
8.09
8.17
8.23
8.12
8.24
8.24
8.13
8.18
8.24
8.10
8.21
8.22
8.09
8.21
8.21
8.13
8.25
8.24
8.16
8.29
8.28
7.90
7.77
7.74
6.57
6.38
6.31
6.61
6.54
6.37
7.62
7.55
7.19
7.96
7.95
7.57
7.96
7.95
7.71
8.05
8.06
7.80
8.09
8.04
7.76
8.03
8.05
7.81
8.02
8.01
7.80
8.06
8.06
7.80
8.08
8.11
7.80
7.91
7.95
6.38
6.28
6.75
6.78
7.77
7.85
8.19
8.30
8.06
8.15
8.15
8.13
8.09
8.17
8.12
8.12
8.13
8.11
8.15
8.13
8.18
8.16
7.96
8.04
8.24
8.28
6.61
6.51
6.50
6.71
6.75
6.87
7.01
7.06
7.73
7.94
8.18
8.09
8.08
8.35
8.66
8.47
8.12
8.23
8.50
8.31
8.15
8.36
8.48
8.51
8.14
8.24
8.50
8.28
8.12
8.31
8.47
8.50
8.13
8.33
8.46
8.48
8.16
8.38
8.48
8.51
8.18
8.41
8.51
8.56
7.47
7.65
7.81
5.97
6.02
6.07
5.78
6.03
6.33
6.73
6.99
7.22
7.06
7.39
7.59
7.24
7.43
7.53
7.35
7.50
7.54
7.30
7.51
7.60
7.25
7.48
7.56
7.31
7.42
7.51
7.40
7.54
7.56
7.42
7.53
7.55
7.47
7.64
7.80
5.98
6.03
6.18
5.82
6.05
6.33
6.73
6.97
7.04
7.02
7.36
7.40
7.23
7.43
7.60
7.34
7.50
7.57
7.23
7.48
7.48
7.23
7.46
n.a.
7.32
7.46
n.a.
7.36
7.55
n.a.
7.45
7.54
7.57
8.42
9.27
9.64
10.12
10.50
10.62
10.97
10.79
6.45
6.86
7.06
7.30
7.54
7.67
7.85
7.78
6.77
7.42
7.68
7.94
8.23
8.39
n.a.
8.59
7.75
8.28
8.44
8.66
8.91
9.06
n.a.
9.14
8.17
8.63
8.77
8.94
9.13
9.26
n.a.
9.32
8.09
8.46
8.57
8.69
8.87
8.98
n.a.
9.06
8.11
8.35
8.43
8.51
8.69
8.80
n.a.
8.89
8.18
8.52
8.62
8.73
8.90
8.99
n.a.
9.08
8.13
8.39
8.48
8.57
8.75
8.83
n.a.
8.94
8.07
8.33
8.44
8.53
8.71
8.81
n.a.
8.91
8.12
8.36
8.43
8.52
8.69
8.80
n.a.
8.88
8.13
8.34
8.42
8.47
8.66
8.77
n.a.
8.88
10.75
8.14
8.64
9.20
9.33
9.06
8.89
9.09
8.94
8.90
8.89
8.88
8.60
9.58
9.11
6.95
7.76
7.32
7.14
8.17
7.64
7.50
7.86
7.76
7.51
7.89
7.79
7.39
7.84
7.66
7.25
7.72
7.47
7.29
7.78
7.64
7.29
7.77
7.53
7.29
7.77
7.52
7.23
7.70
7.45
7.20
7.65
7.36
12.05
11.37
11.82
12.28
12.72
9.71
9.02
9.47
9.95
10.39
9.91
9.38
9.68
9.99
10.58
10.47
9.96
10.26
10.55
11.11
10.58
10.11
10.37
10.63
11.21
10.28
9.82
10.06
10.34
10.90
9.90
9.51
9.71
9.99
10.41
10.08
9.67
9.88
10.15
10.59
9.96
9.58
9.76
10.03
10.45
9.91
9.54
9.71
9.97
10.41
9.89
9.49
9.68
9.99
10.41
9.87
9.44
9.68
9.97
10.39
12.06
9.61
9.95
10.40
10.45
10.26
10.11
10.29
10.05
10.20
10.08
10.00
10.44
4.25
8.76
3.48
8.37
3.08
9.34
3.65
9.39
3.75
9.25
3.69
9.23
3.61
9.15
3.69
9.25
3.66
9.33
3.64
9.12
3.60
9.23
3.55
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"
Constant maturities
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite
Over 10 years (long-term)
State and local notes
and bonds
Moody's series14
Aaa
Baa
Bond Buyer series15
Corporate bonds 16
Seasoned issues
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility
bonds
MEMO: Dividend/price ratio18
39 Preferred stocks
40 Common stocks
1. Weekly, monthly and annual 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 in 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 of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
A25
Selected Statistics
1988
Indicator
1986
1985
1987
Feb.
Mar.
Apr.
June
May
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
4 Utility
5 Finance
6 Standard & Poor's Corporation
(1941-43 = 10)'
108.09
123.79
104.11
56.75
114.21
136.00
155.85
119.87
71.36
147.19
161.70
195.31
140.39
74.29
146.48
145.13
173.44
126.09
72.89
124.36
149.88
181.57
135.15
71.16
125.27
148.46
181.01
133.40
69.35
121.66
144.99
176.02
127.63
68.66
120.35
152.72
184.92
136.02
72.25
129.04
152.12
184.09
136.49
71.49
129.99
149.25
179.72
132.52
70.67
130.77
151.47
182.18
136.27
71.83
133.15
156.36
188.58
141.83
74.19
136.09
186.84
236.34
286.83
258.13
265.74
262.61
256.12
270.68
269.05
263.73
267.97
277.40
7 American Stock Exchange
(Aug. 31, 1973 = 50? ...'.
229.10
264.38
316.61
276.54
295.78
300.43
296.30
306.13
307.48
297.76
297.86
302.83
109,191
8,355
141,385
11,846
188,647
13,832
184,688
9,961
176,189
12,442
162,518
10,706
153,906
8,931
195,772
11,348
166,916
9,938
144,668
9,307
145,702
8,198
162,631
9,051
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers
3
Free credit balances at brokers4
11 Margin-account3
12 Cash-account
28,390
36,840
31,990
31,990
32,660
33,270
33,070
32,300
31,770
31,930
32,770
33,410
2,715
12,840
4,880
19,000
4,750
15,640
4,555
14,695
4,615
14,355
4,395
13,965
4,380
14,150
4,580
14,460
4,485
14,340
4,655
14,045
4,725
14,175
5,065
14,880
Margin requirements (percent of market value and effective date)6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
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.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
A26
DomesticNonfinancialStatistics • January 1989
1.37 SELECTED FINANCIAL INSTITUTIONS
Selected Assets and Liabilities
Millions of dollars, end of period
1987
Account
1985
1988
1986
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June'
July'
Aug.
FSLIC-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed securities
4 Contra-assets to1 mortgage assets
5 Commercial loans
6 Consumer loans
7 Contra-assets to nonmortgage loans'....
8 Cash and investment
securities
3
9 Other
1,070,012 1,163,851 1,246,983 1,250,855 l,254,885r l,257,466r 1,261,581' 1,274,51C 1,285,647' 1,290,288 1,299,767 1,311,416
721,593
722,944r
723,856
725,625r
r
728,976'
733,542'
737,006
743,242
751,451
115,525
158,193
200,039
201,828
201,732
197,81r
197,889''
202,742'
205,028'
207,569
208,266
210,331
45,219
17,424
45,809
41,799
23,683
51,622
41,396
23,294
57,465
42,344
23,163
57,902
41,291r
23,538
58,342
40,836r
23,340
58,687
41,268'
24,004'
58,39c
39,348'
24,243'
59,126
39,753'
24,201'
60,255'
40,064
24,585
61,140
40,102
24,861
61,575
38,899
25,055
62,410
690,717
697,451
717,933
2,521
3,041
3,430
3,467
3,580
3,524
3,628
143,538
104,739
164,844
112,898
170,713
122,367
169,717
122,462
169,953r
123,247r
174,106r
124,025r
176,386'
124,184'
3,512'
3,394'
3,478
3,344
3,114
177,98C
124,303'
179,645'
125,823'
177,590
125,940
178,613
126,656
175,844
128,339
r
r
10 Liabilities and net worth . 1,070,012 1,163,851 1,246,983 1,250,855 l,254,885 l,257,466 1,261,581' 1,274,51C 1,285,647' 1,290,288 1,299,767 1,311,416
It
12
13
14
15
16
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
843,932
157,666
84,390
73,276
21,756
46,657
890,664
196,929
100,025
96,904
23,975
52,282
922,340
247,461
111,283
136,178
27,404
49,777
932,616
249,917
116,363
133,554
21,941
46,382
939,080rr
246,088
114,053
132,035'
23,873'
45,845'
946,790 r
239,452
112,725
126,727'r
25,818
45,406'
958,471'
237,663'
112,389
125,274'
22,555'
42,892'
962,242'
244,990'
113,029
131,961'
24,694'
42,585'
963,686'
250,695'
114,994
135,701'
27,23C
43,736'
966,672
257,127
117,279
139,848
24,646
41,843
968,219
262,741
118,203
144,538
27,113
41,693
967,986
266,711
120,663
146,048
28,911
47,809
FSLIC-insured federal savings banks
17 Assets
18 Mortgages
19 Mortgage-backed securities
20 Contra-assets to mortgage assets'
'M
22 Consumer loans
23 Contra-assets to nonmortgage loans
24 Finance leases plus
131,868
210,562
279,221
284,272
284,303
295,951r
307,756'
311,434'
323,030'
329,721
333,611
357,623
72,355
113,638
161,014
164,013
163,915
171,592
178,26c
180,586'
186,818'
191,086
193,592
204,313
15,676
29,766
45,237
45,826
46,171
46,687
47,979
49.06C
51,276'
52,225
52,595
55,685
13,180
8,809
6,540
17,343
9,100
6,504
17,696
8,909
6,496
17,649
9,175
6,971
18,795
9,460
7,378
19,141
9,346'
7,531
19,616
9,736'
7,639
20,426
10,087
7,906
21,149
10,130
7,920
21,451
10,905
8,624
22,515
712
678
698
737
800
724
708
744
704
781
591
35,347
24,070
604
34,645
24,430
584
35,718
25,517r
611
38,224
26,424'
615
38,273'
25,822'
652
39,903'
26,76C
708
40,274
27,004
735
40,842
27,310
791
44,790
32,590
8,361
25 Cash and investment . . .
26 Other
11,723
19,034
566
33,965
24,078
27 Liabilities and net worth .
131,868
210,562
279,221
284,272
284,303
295,951r
307,756'
311,434'
323,03C
329,721
333,611
357,623
28
29
30
31
32
33
103,462
19,323
10,510
8,813
2,732
6,351
157,872
37,329
19,897
17,432
4,263
11,098
199,114
58,277
27,947
30,330
6,350
15,481
203,196
60,716
29,617
31,099
5,324
15,036
204,329
59,206
28,280
30,926
5,838
14,930
214,169
59,704
29,169
30,535
6,602
15,477'
224,169'
61,552'
30,456
31,096'
6,089'
15,946'
226,469
62,566'
30,075
32,491'
6,464'
16,087'
232,582
66,816'
31,682
35,134'
7,196'
16,587'
236,674
69,348
32,177
37,171
6,717
16,886
239,497
70,015
31,941
38,074
7,144
16,859
256,144
75,808
35,357
40,451
8,138
17,432
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
Savings banks
34 Assets
35
36
Loans
Mortgage
Other
Securities
U.S. government
Mortgage-backed
securities
State and local
government
Corporate and other .
Cash
Other assets
216,776
236,866
260,600
259,643
258,628
259,224
262,100
262,269
264,507
269,369
272,459
272,327
110,448
30,876
118,323
35,167
137,044
37,189
138,494
33,871
137,858
35,095
139,108
35,752
140,835
36,476
139,691
37,471
143,235
35,927
147,366
35,990
149,115
36,538
150,293
36,402
13,111
14,209
15,694
13,510
12,776
12,269
12,225
13,203
12,490
12,227
12,222
11,939
19,481
25,836
31,144
32,772
32,241
32,423
32,272
31,072
31,861
32,669
33,017
32,982
2,323
21,199
6,225
13,113
2,185
20,459
6,894
13,793
2,046
17,583
5,063
14,837
2,003
18,772
5,864
14,357
1,994
18,780
4,841
15,043
2,053
18,271
5,002
14,346
2,033
18,336
4,881
15,042
2,013
18,549
5,237
15,033
1,933
18,298
5,383
15,380
1,877
18,332
5,094
15,814
1,868
18,376
5,449
15,874
1,929
18,134
4,906
15,742
43 Liabilities
216,776
236,866
260,600
259,643
258,628
259,224
262,100
262,269
264,507
269,369
272,459
272,327
44 Deposits
45 Regular
46
Ordinary savings ..
47
Time
48 Other
49 Other liabilities
50 General reserve
accounts
185,972
181,921
33,018
103,311
4,051
17,414
192,194
186,345
37,717
100,809
5,849
25,274
202,030
196,724
42,493
112,231
5,306
36,167
201,497
196,037
41,959
112,429
5,460
35,720
199,545
194,322
41,047
112,781
5,223
36,836
200,391
195,336
41,234
113,751
5,055
35,787
203,407
198,273
41,867
115,529
5,134
35,737
203,273
197,801
41,741
115,887
5,472
35,827
205,692
200,098
42,403
117,297
5,594
35,836
209,227
203,434
43,282
119,815
5,793
36,779
210,751
204,851
43,228
121,356
5,900
37,584
210,399
204,866
42,651
122,959
5,533
37,824
12,823
18,105
21,133
20,633
20,514
20,894
21,024
21,109
21,179
21,385
21,559
21,405
37
38
39
40
41
42
Financial Markets
All
1.37—Continued
1987
Account
1985
1988
1986
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June r
July'
Aug.
Credit unions3
51 Total assets/liabilities
and capital
52
53
Federal
State
54 Loans outstanding.
55 Federal
56 State
57 Savings
58 Federal
59 State
118,010
147,726
169,111
169,175
172,456
172,345
173,276
77,861
40,149
95,483
52,243
109,797
59,314
109,913
59,262
112,595
59,855
112,573
59,772
113,068
60,208
73,513
47,933
25,580
105,963
70,926
35,037
86,137
55,304
30,833
134,327
87,954
46,373
101,965
65,732
36,233
156,045
101,847
54,198
103,271
66,431
36,840
155,105
101,048
54,057
105,704
68,213
37,491
157,764
103,129
54,635
105,800
68,658
37,142
158,186
103,347
54,839
107,065
69,626
37,439
159,314
104,256
55,058
1,113,547
Life insurance companies
60 Assets
61
62
63
64
65
66
67
68
69
70
71
Securities
Government
United States 6 .
State and local
Foreign"
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
825,901
937,551
1,024,460
1,033,170
1,042,350
1,052,645
1,065,549
1,075,541
1,094,827
1,105,546
75,230
51,700
9,708
13,822
423,712
346,216
77,496
171,797
28,822
54,369
71,971
84,640
59,033
11,659
13,948
492,807
401,943
90,864
193,842
31,615
54,055
80,592
91,227
65,186
11,539
14,502
548,767
459,537
89,230
208,839
33,538
53,334
88,755
91,302
64,551
11,758
14,993
553,486
461,942
91,544
212,375
34,016
53,313
88,678
91,682
64,922
11,749
15,011
563,019
469,207
93,812
212,637
34,178
53,265
87,569
92,497
65,534
11,859
15,104
571,070
476,448
94,622
213,182
34,503
52,720
88,673
92,408
65,218
12,033
15,157
580,392
484,403
95,989
214,815
34,845
52,604
90,499
93,946
66,749
11,976
15,221
587,846
490,285
97,561
215,383
34,964
52,568
90,834
86,711
58,988
87,160
59,351
11,114
16,695
614,052
509,105
104,947
220,870
35,545
53,107
94,812
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
3. Holding of stock in Federal Home Loan Bank and Finance leases plus
interest are included in "Other" (line 9).
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.
11,016
16,707
606,445
503,728
102,717
219,012
35,484
53,013
94,162
88,218
60,244
11,102
16,872
618,742
514,926
103,816
221,990
35,737
53,142
95,718
NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions
insured by the FSLIC and based on the FHLBB thrift Financial Report.
FSLIC-insured federal savings banks: Estimates by the FHLBB for federal
savings banks insured by the FSLIC and based on the FHLBB thrift Financial
Report.
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
DomesticNonfinancialStatistics • January 1989
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget1
1 Receipts, total
2 On-budget
Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus, or deficit (-), total
8 On-budget
9 Off-budget
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase
(-)l
12 Other5
10
11
Fiscal
year
1986
Fiscal
year
1987
Fiscal
year
1988
769,091
568,862
200,228
990,258
806,760
183,498
-221,167
-237,898
16,731
854,143
640,741
213,402
1,004,586
810,754
193,832
-150,444
-170,014
19,570
908,953
667,462
241,491
1,064,055
861,364
202,691
-155,102
-193,901
38,800
1988
May
June
July
Aug.
Sept.
Oct.
47,691
30,205
17,486
83,435
66,389
17,046
-35,744
-36,184
440
99,205
77,643
21,562
90,071
72,888
17,184
-22,583
4,755
4,379
60,690
40,980
19,710
83,634
66,818
16,816
9,134
-25,838
2,894
69,479
51,015
18,464
92,561
74,756
17,805
-22,944
-23,741
659
97,803
75,586
22,217
87,588
70,071
17,518
-23,082
5,515
4,699
63,646
45,847
17,799
91,086
73,945
17,141
-27,440
-28,097
658
236,187
150,070
166,171
13,005
11,391
3,665
23,370
14,665
10,716
-14,324
-696
-5,052
5,426
-7,963
-3,106
22,638
-1,478
-20,638
113
15,696
3,583
10,954
-11,242
-31,444
6,564
13,748
2,976
31,384
7,514
23,870
36,436
9,120
27,316
44,398
13,024
31,375
33,106
6,383
26,723
39,604
9,762
29,842
23,908
3,910
19,998
12,954
4,390
8,564
44,398
13,024
31,375
30,650
6,151
24,499
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetae fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1987
Fiscal
year
1988
1987
1986
1988
1988
H2
HI
H2
HI
Aug.
Sept.
Oct.
RECEIPTS
1 All sources
? Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund
Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
11 Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts4
854,143
908,953
387,524
447,282
421,712
476,115
69,479
97,803
63,646
392,557
322,463
33
142,957
72,8%
401,181
341,435
33
132,199
72,487
183,156
164,071
4
27,733
8,652
205,157
156,760
30
112,421
64,052
192,575
170,203
4
31,223
8,853
207,659
169,300
28
101,614
63,283
31,942
30,330
1
2,956
1,346
41,784
27,209
1
16,793
2,219
31,287
28,824
0
3,430
967
102,859
18,933
109,683
15,487
42,108
8,230
52,396
10,881
52,821
7,119
58,002
8,706
2,377
916
21,380
712
3,789
1,995
303,318
334,335
134,006
163,519
143,755
181,058
28,373
28,694
23,848
273,028
305,093
122,246
146,696
130,388
164,412
23,477
27,991
22,400
13,987
25,575
4,715
17,691
24,584
4,659
1,338
9,328
2,429
12,020
14,514
2,310
1,889
10,977
2,390
14,839
14,363
2,284
380
4,545
351
2,326
285
419
0
1,101
347
32,457
15,085
7,493
19,307
35,540
16,198
7,594
19,909
15,947
7,282
3,649
9,605
15,845
7,129
3,818
10,299
17,680
7,993
3,610
10,399
16,440
7,851
3,863
9,950
3,490
1,650
661
1,902
3,158
1,367
678
1,454
3,134
1,381
662
1,540
1,004,586
1,064,054
506,556
503,267
532,839
513,210
92,561
87,588
91,086
281,999
11,649
9,216
4,115
13,363
27,356
290,349
10,469
10,876
2,342
14,538
17,210
138,544
8,938
4,594
2,446
7,141
15,660
142,886
4,374
4,324
2,335
6,175
11,824
146,995
4,487
5,469
1,468
7,590
14,640
143,080
7,150
5,361
555
6,776
7,872
24,532
833
930
282
1,213
-152
21,941
-691
702
116
1,625
-414
25,938
2,176
1,136
366
1,451
3,025
6,182
26,228
5,051
19,064
27,196
5,577
3,764
14,745
3,651
4,893
12,113
3,108
3,852
14,096
2,075
5,951
12,700
2,765
4,077
2,696
284
6,076
2,568
743
477
2,504
648
29,724
30,856
16,209
14,182
15,592
15,451
3,033
2,588
2,644
79 Health
30 Social security and medicare
31 Income security
39,968
282,473
123,250
44,482
297,828
130,174
18,795
138,299
59,979
20,318
142,864
62,248
20,750
158,469
61,201
22,643
135,322
65,555
3,977
25,692
10,581
3,823
25,215
11,226
3,994
23,951
8,855
37
33
34
35
36
37
26,782
7,548
5,948
1,621
138,570
-36,455
29,248
9,205
8,552
966
151,711
-36,576
14,190
3,413
1,860
2,886
66,226
-16,475
12,264
3,626
3,344
337
70,110
-19,102
14,956
4,291
3,560
1,175
71,933
-17,684
13,241
4,761
4,337
448
76,098
-17,766
2,249
900
814
0
13,661
-3,041
3,085
710
796
0
12,371
-4,892
1,857
865
934
0
13,014
-2,751
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes 5
Miscellaneous receipts
OUTLAYS
18 AH types
19
70
21
22
23
24
National defense
International affairs
General science, space, and technology . . . .
Energy
Natural resources and environment
Agriculture
75
76
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
Veterans benefits and services
Administration of justice
General government
General-purpose fiscal assistance
Net interest
Undistributed offsetting receipts'
1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1988.
A30
D o m e s t i c F i n a n c i a l Statistics • January 1989
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1988
1987
1986
Item
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1 Federal debt outstanding
2,063.6
2,129.5
2,218.9
2,250.7
2,313.1
2,354.3
2,435.2
2,493.2
2,555.1
2 Public debt securities
3 Held by public
4 Held by agencies
2,059.3
1,684.9
374.4
2,125.3
1,742.4
382.9
2,214.8
1,811.7
403.1
2,246.7
1,839.3
407.5
2,309.3
1,871.1
438.1
2,350.3
1,893.1
457.2
2,431.7
1,954.1
477.6
2,487.6
1,996.7
490.8
2,547.7
2,013.4
534.2
4.3
3.2
1.1
4.2
3.2
1.1
4.0
3.0
1.1
4.0
2.9
1.1
3.8
2.8
1.0
4.0
3.0
1.0
3.5
2.7
.8
5.6
5.1
.6
7.4
7.0
.5
5 Agency securities
6 Held by public
7 Held by agencies
2,060.0
2,111.0
2,200.5
2,232.4
2,295.0
2,336.0
2,417.4
2,472.6
2,532.2
9 Public debt securities
10 Other debt1
2,058.7
1.3
2,109.7
1.3
2,199.3
1.3
2,231.1
1.3
2,293.7
1.3
2,334.7
1.3
2,416.3
1.1
2,472.1
.5
2,532.1
.1
11 MEMO: Statutory debt limit
2,078.7
2,111.0
2,300.0
2,300.0
2,320.0
2,800.0
2,800.0
2,800.0
2,800.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the
United States.
Types and Ownership
Billions of dollars, end of period
1988
1987
Type and holder
1 Total gross public debt
By type
2 Interest-bearing debt
3 Marketable
4 Bills
5 Notes
6 Bonds
7 Nonmarketable'
8 State and local government series
9 Foreign issues
10
Government
11
Public
12 Savings bonds and notes...3
13 Government account series
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
26
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local Treasurys
Individuals
Savings bonds
Other securities
Foreign and international
Other miscellaneous investors
1984
1987
Q3
Q4
Q1
Q2
1,663.0
1,945.9
2,214.8
2,431.7
2,350.3
2,431.7
2,487.6
2,547.7
1,660.6
1,247.4
374.4
705.1
167.9
413.2
44.4
9.1
9.1
1,943.4
1,437.7
399.9
812.5
2,212.0
505.7
87.5
7.5
7.5
1,619.0
426.7
927.5
249.8
593.1
110.5
4.7
4.7
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
2,347.7
1.676.0
378.3
1.005.1
277.6
671.8
129.0
4.3
4.3
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
2,484.9
1,758.7
392.6
1,059.9
291.3
726.2
142.9
.0
.0
.0
.0
.0
286.2
78.1
332.2
90.6
386.9
99.2
461.3
97.0
440.7
99.2
461.3
.0
102.3
474.4
2,545.0
1,769.9
382.3
1,072.7
299.9
775.1
146.9
5.7
5.7
.0
104.5
517.5
2.3
2.5
2.8
2.8
2.5
2.8
2.6
2.7
289.6
160.9
1,212.5
183.4
25.9
76.4
50.1
173.0
348.9
181.3
1,417.2
192.2
25.1
115.4
59.0
224.0
403.1
211.3
1,602.0
238.3
457.2
211.9
260.0
477.6
222.6
1,745.2
253.3
14.3
n.a.
84.6
n.a.
477.6
222.6
1,745.2
253.3
14.3
n.a.
84.6
n.a.
490.8
217.5
1,778.2
260.7
15.2
n.a.
n.a.
n.a.
534.2
227.6
1,784.9
263.0
13.4
n.a.
n.a.
n.a.
74.5
69.3
192.9
354.7
79.8
75.0
212.5
434.2
92.3
70.5
251.6
467.1
n.a.
287.3
n.a.
101.1
n.a.
287.3
n.a.
104.0
n.a.
320.8
n.a.
n.a.
332.3
n.a.
.0
73.1
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
1985
211.1
28.0
135.4
68.8
101.1
1,682.6
251.3
15.2
143.0
81.8
n.a.
98.5
70.4
267.0
n.a.
6.1
6.1
106.2
5. Consists of investments of foreign and international accounts. Excludes
non-interest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder. Treasury
Bulletin.
Federal Finance
A31
Transactions1
1.42 U.S. GOVERNMENT SECURITIES DEALERS
Par value; averages of daily figures, in millions of dollars
1988
1988
1985
Item
1986
1987
Aug/
Sept/
Oct.
Sept. 2lr Sept. 28r
Oct. 5
Oct. 12
Oct. 19
Oct. 26
2
1
?
3
4
5
6
7
8
9
10
11
17
13
14
15
16
17
18
Immediate delivery
U.S. Treasury securities
By maturity
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
By type of customer
U.S. government securities
dealers
U.S. government securities
brokers
All others3
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures contracts'
Treasury bills
Treasury coupons
Federal agency securities
Forward transactions5
U.S. Treasury securities
Federal agency securities
75,331
95,445
110,052
100,109
99,232
109,791
84,709
104,499
104,469
120,487
107,962
108,828
32,900
1,811
18,361
12,703
9,556
34,247
2,115
24,667
20,456
13,961
37,924
3,272
27,918
24,014
16,923
29,541
3,463
28,558
23,759
14,789
27,406
3,249
28,204
25,854
14,519
29,606
3,285
28,691
30,419
17,791
25,997
2,759
23,001
21,001
11,950
29,807
3,999
36,615
22,122
11,955
27,640
4,389
27,874
28,703
15,864
32,663
3,122
30,222
34,950
19,531
27,939
3,219
27,683
32,040
17,082
30,249
2,632
31,348
26,837
17,762
3,336
3,670
2,936
2,328
2,669
3,227
2,280
3,087
3,794
3,303
3,055
3,503
36,222
35,773
11,640
4,016
3,242
12,717
49,558
42,218
16,748
4,355
3,272
16,660
61,539
45,576
18,087
4,112
2,965
17,135
58,577
39,204
13,952
3,053
1,834
23,413
58,674
37,888
15,473
3,128
1,994
26,416
65,612
40,951
17,633
3,646
2,186
28,682
50,770
31,658
16,170
2,984
1,795
27,773
62,049
39,362
14,924
3,028
1,939
25,571
59,544
41,131
18,004
3,497
2,288
29,622
71,537
45,645
17,742
4,383
2,513
29,473
65,689
39,217
19,581
3,483
2,068
28,234
64,%3
40,361
15,828
3,564
2,034
26,399
5,561
6,085
252
3,311
7,175
16
3,233
8,964
5
2,593
9,485
0
2,555
9,393
0
2,772
10,684
0
1,879
8,292
0
2,179
8,021
0
1,7%
11,187
0
3,629
10,383
0
2,593
10,208
0
2,059
10,369
0
1,283
3,857
1,876
7,831
2,029
9,290
2,283
8,701
1,479
7,601
1,769
8,013
2,015
7,294
2,106
5,649
813
6,283
1,748
10,220
2,568
10,462
2,128
6,394
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. Treasury
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 secunties 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 Treasury securities (Treasury bills, notes, and
bonds) or after 30 days for mortgage-backed agency issues.
A32
DomesticNonfinancialStatistics • January 1989
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Averages of daily figures, in millions of dollars
1988
Item
1
Net immediate2
U.S. Treasury securities
1985
1986
1988
1987
Aug.
Sept.
Oct.
Sept. 28
Oct. 5
Oct. 12
Oct. 19
Oct. 26
7,391
12,912
-6,216
-31,781
-26,759r
-25,793
—27,809'
-27,322
-25,883
-27,790
-26,592
2
3
4
5
6
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
10,075
1,050
5,154
-6,202
-2,686
12,761
3,706
9,146
-9,505
-3,197
4,317
1,557
649
-6,564
-6,174
1,658
-2,389
-6,234
-13,383
-11,432
6,816r
-3,811
-2,8%
-13,750r
-13,117
3,692
-5,534
855
-11,191
-13,615
8,317
-3,943r
-4,864
-14,127''
-13,191
3,810
-5,056
1,493
-13,718
-13,850
5,086
-5,509
1,320
-13,569
-13,212
1,814
-5,806
-160
-10,315
-13,323
4,064
-5,438
-701
-9,915
-14,602
7
8
9
10
Federal agency securities
Certificates of deposit
Bankers acceptances
Commercial paper
Futures positions
Treasury bills
Treasury coupons
Federal agency securities
Forward positions
U.S. Treasury securities
Federal agency securities
22,860
9,192
4,586
5,570
32,984
10,485
5,526
8,089
31,910
8,188
3,661
7,496
27,844
8,476
1,963
5,829
29,023''
8,200
1,786
6,830
30,169
8,262
2,247
6,770
28,886''
8,191
1,798
7,001
29,398
8,052
1,933
7,400
29,252
8,322
2,238
6,%3
30,608
8,080
2,148
7,035
30,552
8,158
2,314
6,340
-7,322
4,465
-722
-18,059
3,473
-153
-3,373
5,988
-95
1,157
8,476
0
-4,049r
7,745
0
-4,385
6,532
0
-4,710
7,600
0
-2,849
7,538
0
-3,955
5,838
0
-4,803
6,128
0
-4,165
7,556
0
-911
-9,420
-2,144
-11,840
-1,211
-18,817
641
-17,258
-347
-16,988r
-969
-17,558
-1,501
-16,563r
-707
-17,463
-42
-17,369
-1,375
-17,359
-1,887
-17,670
11
12
13
14
15
Financing3
Reverse repurchase agreements4
Overnight and continuing
Term
,
Repurchase agreements5
18 Overnight and continuing
19 Term
16
17
68,035
80,509
98,954
108,693
124,791
148,033
142,120
180,855
139,167
185,275
149,450
193,290
132,608
190,187
146,913
184,216
148,541
187,466
152,285
189,152
146,437
197,229
101,410
70,076
141,735
102,640
170,840
120,980
174,006
134,608
178,459
134,107
189,508
145,288
172,412
142,523
187,020
135,606
189,360
138,246
193,747
138,838
184,577
154,170
1. OData for dealer positions and sources of financing are obtained from reports
submitted to the Federal Reserve Bank of New York by the U.S. Treasury
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. Treasury 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 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1988
Agency
1
Federal and federally sponsored agencies
2
3
4
5
6
Federal agencies
Defense Department'
Export-Import Bank2'
Federal Housing Administration
Government National Mortgage Association participation
certificates
Postal Service6
Tennessee Valley Authority
United States Railway Association6
7
8
9
10
11
12
N
14
15
16
17
Federally sponsored agencies7
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
Federal National Mortgage
Association
Farm Credit Banks8
9
Student Loan Marketing
Association
Financing Corporation1"
Farm Credit Financial Assistance Corporation"
MEMO
18
Federal Financing Bank debt12
19
70
71
22
23
Lending to federal and
federally sponsored agencies
Export-Import Bank5
Postal Service
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
74
75
26
Other Lending13
Farmers Home Administration
Rural Electrification Administration
1984
1986
1987
May
June
July
Aug.
Sept.
271,220
293,905
307,361
341,386
352,216
354,446
355,810
n.a.
n.a.
35,145
142
15,882
133
36,390
71
15,678
115
36,958
33
14,211
138
37,981
13
11,978
183
36,430
11
11,494
105
36,361
11
11,232
116
36,465
11
11,232
116
n.a.
n.a.
11
11,232
115
2,165
1,337
15,435
51
2,165
1,940
16,347
74
2,165
3,104
17,222
85
1,615
6,103
18,089
0
830
5,842
18,148
0
830
5,842
18,330
0
830
5,842
18,434
0
n.a.
n.a.
5,842
18,494
0
5,842
18,511
0
237,012
65,085
10,270
83,720
72,192
5,745
257,515
74,447
11,926
93,896
68,851
8,395
270,553
88,752
13,589
93,563
62,478
12,171
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
303,405
115,725
17,645
97,057
55,275
16,503
1,200
315,786
117,864
19,495
102,515
54,578
18,434
2,900
318,085
117,773
17,619
104,757
55,779
19,257
2,900
n.a.
n.a.
n.a.
319,345
119,409
17,844
104,751
54,538
19,453
2,900
450
324,110
121,266
19,652
105,730
53,582 F
19,680
3,750
450
328,246
126,011
18,368
105,986
53,764
19,917
3,750
450
145,217
153,373
157,510
152,417
149,986
149,833
149,937
149,809
146,151
15,852
1,087
5,000
13,710
51
15,670
1,690
5,000
14,622
74
14,205
2,854
4,970
15,797
85
11,972
5,853
4,940
16,709
0
11,488
5,592
4,940
16,768
0
11,226
5,592
4,940
16,950
0
11,226
5,592
4,940
17,054
0
11,226
5,592
4,940
17,114
0
10,958
5,592
4,910
17,131
0
58,971
20,693
29,853
64,234
20,654
31,429
65,374
21,680
32,545
59,674
21,191
32,078
59,674
19,218
32,306
59,674
19,204
32,247
59,674
19,206
32,245
59,464
19,225
32,248
58,496
19,205
29,859
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. I, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
1985
11
11,232
120
9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 21.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation (established in January
1988 to provide assistance to the Farm Credit System) undertook its first
borrowing in July 1988.
12. The 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.
13. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
A34
DomesticNonfinancialStatistics • January 1989
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1988
Type of issue or issuer,
or use
1985
1987
1986
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
1 All issues, new and refunding1
214,189
147,011
102,407
9,821
5,847
7,846
13,912
9,746
6,966
9,669
10,046
Type of issue
2 General obligation
i Revenue
52,622
161,567
46,346
100,664
30,589
71,818
2,776
7,045
1,707
4,140
3,085
4,761
4,237
9,675
1,959
7,788
2,472
4,494
2,370
7,299
1,932
8,114
Type of issuer
4 State
5 Special district and statutory authority2
6 Municipalities, counties, and townships
13,004
134,363
78,754
14,474
89,997
42,541
10,102
65,460
26,845
739
6,310
2,772
441
4,078
1,328
913
4,625
2,308
1,349
8,629
3,934
140
6,752
2,854
576
3,749
2,641
1,206
6,407
2,056
732
6,946
2,368
7 Issues for new capital, total
156,050
83,490
56,789
2,401
1,476
2,334
2,352
2,079
2,318
2,783
2,840
Use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
16,658
12,070
26,852
63,181
12,892
24,398
12,307
7,246
14,594
11,353
6,190
31,802
9,524
3,677
7,912
11,106
7,474
18,020
933
559
1,016
1,218
105
2,213
911
215
429
1,099
298
9%
1,316
452
580
694
248
1,900
1,320
858
635
2,060
434
3,628
1,699
1,446
225
1,222
128
3,666
694
265
613
1,242
460
2,043
1,351
732
694
2,358
280
1,661
489
481
1,223
2,493
330
1,742
8
9
10
11
12
li
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
1.46 NEW SECURITY ISSUES
SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.
Public Securities Association for earlier data.
U.S. Corporations
Millions of dollars
Type of issue or issuer,
or use
1988
1985
1986
1987
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
r
1 All issues'
239,015
423,726
392,156
22,439
25,902
21,227
23,413
30,043
17,982
19,269
23,575
2 Bonds2
203,500
355,293
325,648
18,549
20,815
18,515
19,382
25,748
12,844
15,934r
20,688
Type of offering
3 Public, domestic
4 Private placement, domestic3
5. Sold abroad
119,559
46,200
37,781
231,936
80,760
42,596
209,279
92,070
24,299
16,758
n.a.
1,791
19,827
n.a.
988
16,202
n.a.
2,313
17,496
n.a.
1,886
22,753
n.a.
2,995
10,850
n.a.
1,994
14,595r
n.a.
1,339
18,000
n.a.
2,700
63,973
17,066
6,020
13,649
10,832
91,958
91,548
40,124
9,971
31,426
16,659
165,564
61,666
49,327
11,974
23,004
7,340
172,343
3,151
1,416
200
1,718
101
11,962
3,482
1,007
1,017
2,259
115
12,935
4,513
771
890
1,170
411
10,760
4,206
1,446
184
1,929
69
11,546
5,305
2,281
580
1,707
925
14,949
2,204
1,531
100
540
577
7,893
3,476'
2,227'
0
298
29
9,903'
3,739
1,035
150
856
1,064
13,843
12 StocksJ
35,515
68,433
66,508
3,890
5,087
2,712
4,031
4,295
5,138
3,335'
2,887
Type
13 Preferred
14 Common
15 Private placement3
6,505
29,010
11,514
50,316
6,603
10,123
43,228
13,157
376
3,513
n.a.
625
4,462
n.a.
241
2,471
n.a.
285
3,746
n.a.
501
3,794
n.a.
407
4,731
n.a.
498'
2,837'
n.a.
459
2,448
n.a.
5,700
9,149
1,544
1,966
978
16,178
15,027
10,617
2,427
4,020
1,825
34,517
13,880
12,888
2,439
4,322
1,458
31,521
2%
44
474
142
0
2,933
256
99
32
93
63
4,544
318
276
150
238
109
1,621
1,080
157
15
59
78
2,642
1,676
522
51
207
13
1,826
296
2,073
0
20
20
2,729
538
347'
72
135
3
2,240'
244
437
5
215
23
1,963
6
7
8
9
10
11
16
17
18
19
20
21
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
Industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES
A35
Net Sales and Asset Position
Millions of dollars
1988
Item
1986
1987
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
INVESTMENT COMPANIES 1
1 Sales of own shares2
411,751
381,260
23,265
24,589
23,162
19,579
22,503
20,728
20,595
19,891
2 Redemptions of own shares3
3 Net sales
239,394
172,357
314,252
67,008
20,914
2,351
23,968
620
25,000
-1,828
21,412
-1,833
23,168
-665
20,561
167
22,836
-2,242
721,343
-1,452
4 Assets4
424,156
453,842
481,232
473,206
473,321
468,735
481,120
477,076
465,822
475,841
30,716
393,440
38,006
415,836
41,232
439,995
43,561
426,645
45,307
428,014
45,003
423,732
43,229
437,891
44,015
433,061
45,229
420,595
46,759
429,082
5
5 Cash position
6 Other
1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
1986
Account
1985
1986
1988
1987
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
282.3
224.2
96.4
127.8
83.2
44.5
298.8
236.3
106.6
129.8
88.2
41.5
310.4
276.7
133.8
142.9
95.5
47.4
293.9
252.1
114.3
137.9
89.8
48.1
298.3
261.8
126.3
135.5
91.7
43.8
305.2
273.7
132.6
141.1
94.0
47.0
322.0
289.4
140.0
149.5
97.0
52.4
316.1
281.9
136.2
145.7
99.3
46.4
316.2
286.2
136.9
149.4
101.3
48.1
326.5
305.9
143.2
162.7
103.1
59.6
323.7
307.7
144.6
163.1
105.7
57.5
7 Inventory valuation
8 Capital consumption adjustment
-1.7
59.8
8.3
54.1
-18.0
51.7
-8.1
49.8
-14.4
50.8
-20.0
51.5
-19.5
52.1
-18.2
52.4
-19.4
49.4
-27.4
48.0
-29.0
45.1
SOURCE. Survey of Current Business (Department of Commerce).
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1987
Industry
1 Total nonfarm business
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other2
1986
1987
Q1
Q2
Q3
Q4
Q1
Q2
Q31
Q41
379.47
389.67
430.95
376.73
380.66
394.54
406.82
412.02
426.94
440.42
444.40
69.14
73.56
71.01
74.88
78.06
85.50
70.79
70.70
69.05
72.66
71.%
76.24
72.28
79.92
75.70
82.90
76.87
84.82
80.59
85.78
79.09
88.48
11.22
11.39
12.62
10.38
11.02
11.81
12.32
12.59
13.26
12.74
11.89
6.66
6.26
5.89
5.92
6.53
6.40
7.05
7.61
6.91
5.68
7.01
6.08
5.84
6.02
6.26
6.07
6.15
6.97
6.12
6.94
6.28
6.92
6.43
7.08
7.01
6.66
7.05
7.07
9.31
7.06
7.19
8.02
6.44
33.91
12.47
160.38
31.63
13.25
168.65
32.20
14.27
186.74
31.23
12.72
162.13
31.47
12.47
165.86
31.57
13.73
170.05
32.28
14.11
176.56
30.31
14.30
175.79
30.95
14.48
185.83
33.79
14.26
189.82
33.76
14.04
195.50
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
1988
19881
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
A36
1.51
DomesticNonfinancialStatistics • January 1989
Assets and Liabilities1
DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period
1987
1986
Account
1983
1984
1985
Q2
Q3
Q4
Q1
Q2
Q3
Q4
ASSETS
Accounts receivable, gross
Consumer
Business
Real estate
Total
83.3
113.4
20.5
217.3
89.9
137.8
23.8
251.5
111.9
157.5
28.0
297.4
123.4
166.8
29.8
320.0
135.3
159.7
31.0
326.0
134.7
173.4
32.6
340.6
131.1
181.4
34.7
347.2
134.7
188.1
36.5
359.3
141.6
188.3
38.0
367.9
141.1
207.6
39.5
388.2
Less:
5 Reserves for unearned income
6 Reserves for losses
30.3
3.7
33.8
4.2
39.2
4.9
40.7
5.1
42.4
5.4
41.5
5.8
40.4
5.9
41.2
6.2
42.5
6.5
45.3
6.8
7 Accounts receivable, net
8 All other
183.2
34.4
213.5
35.7
253.3
45.3
274.2
49.5
278.2
60.0
293.3
58.6
300.9
59.0
311.9
57.7
318.9
64.5
336.1
58.2
9 Total assets
217.6
249.2
298.6
323.7
338.2
351.9
359.9
369.6
383.4
394.3
18.3
60.5
20.0
73.1
18.0
99.2
16.3
108.4
16.8
112.8
18.6
117.8
17.2
119.1
17.3
120.4
15.9
124.2
16.4
128.4
11.1
67.7
31.2
28.9
12.9
77.2
34.5
31.5
12.7
94.4
41.5
32.8
15.8
106.9
40.9
35.4
16.4
111.7
45.0
35.6
17.5
117.5
44.1
36.4
21.8
118.7
46.5
36.6
24.8
121.8
49.1
36.3
26.9
128.2
48.6
39.5
28.0
137.1
52.8
31.5
217.6
249.2
298.6
323.7
338.2
351.9
359.9
369.6
383.4
394.3
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
1. NOTE. Components may not add to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
Business Credit Outstanding and Net Change1
Millions of dollars, seasonally adjusted
1988
Type
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
1985
1986
Apr.
May
June
July
Aug.
Sept.
156,297
171,966
205,869
218,914
220,304
222,133
223,706
223,958''
230,474
20,660
22,483
25,952
22,950
35,674
24,987
37,619
27,263
37,219
27,081
37,519
27,548
37,682
27,428
37,519
27,603
37,120
27,569
23,988
4,568
6,809
23,419
5,423
7,079
31,059
5,693
8,408
27,361
5,429
8,311
28,260
5,237
8,414
28,731
5,557
8,481
28,449
5,654
8,458
27,721
5,803
8,531
32,732
5,949
8,738
16,275
34,768
19,783
37,833
21,943
43,002
23,458
51,092
23,690
52,126
24,076
52,365
24,400
52,803
24,370
53,671
23,861
55,400
15,765
10,981
15,959
13,568
18,024
17,079
18,789
19,592
18,700
19,578
18,595
19,260
19,095
19,736
19,132
19,609
19,386
19,719
Net change (during period)
11 Total
12
13
14
15
16
17
18
19
20
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
19,607
15,669
3,040
2,907
1,390
1,829
1,573
252'
6,515
5,067
-363
5,292
467
1,220
223
705
182
-400
-181
300
467
163
-120
-163
175
-399
-35
5,423
-867
1,069
-569
855
270
158
-101
257
32
178
-36
899
-192
103
471
320
67
-282
97
-23
-728
149
73
5,011
146
207
3,8%
2,685
3,508
3,065
-70
1,038
-34
681
231
1,034
386
239
324
438
-30
867
-509
1,729
2,161
536
194
2,587
-477
792
894
305
-88
-14
-105
-318
500
476
37
-127
255
110
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
Real Estate
A37
Aug.
Sept.
Oct.
1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1988
Item
1985
1986
1987
Apr.
May
June
July
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) ,
Contract rate (percent per year)
Yield (percent per
year)
5
7 FHLBB series
8 HUD series4
104.1
77.4
77.1
26.9
2.53
11.12
118.1
86.2
75.2
26.6
2.48
9.82
137.0
100.5
75.2
27.8
2.26
8.94
151.4
112.1
76.2
27.7
2.20
8.76
145.3
108.0
76.4
28.1
2.15
8.59
152.0
110.2
73.8
27.5
2.16
8.90
152.9
111.9
15.2
28.4
2.24
8.80
154.2
114.9
76.7
28.5
2.35
8.68
148.3
109.8
75.4
27.6
2.14
8.90
153.8
114.0
75.8
28.4
1.98
8.77
11.58
12.28
10.25
10.07
9.31
10.17'
9.13
10.19
8.95
10.48
9.26
10.35
9.17
10.47
9.06
10.55
9.26
n.a.
9.10
n.a.
12.24
11.61
9.91
9.30
10.16r
9.42
10.46
9.67
10.84
9.93
10.65
9.88
10.66
9.91
10.74
10.09
n.a.
9.93
n.a.
9.77
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional
94,574
34,244
60,331
98,048
29,683
68,365
95,030
21,660
73,370
100,796
19,932
80,864
101,747
19,805
81,941
102,368
19,765
82,603
102,540
19,677
82,864
102,540
19,586
82,954
102,453
19,526
82,927
102,493
19,464
83,030
Mortgage transactions (during period)
14 Purchases
21,510
30,826
20,531
2,409
2,138
2,372
1,960
1,638
1,111
1,488
Mortgage commitments1
15 Contracted (during period)
16 Outstanding (end of period)
20,155
3,402
32,987
3,386
25,415
4,886
2,555
6,033
2,142
5,777
2,179
5,365
1,108
4,277
1,041
3,135
1,439
3,257
1,740
3,165
Mortgage holdings (end of periodf
17 Total
18 FHA/VA
19 Conventional
12,399
841
11,559
13,517
746
12,771
12,802
686
12,116
14,822
635
14,187
15,228
633
14,595
15,576
627
14,949
15,133
619
14,514
15,142
611
14,531
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage transactions (during period)
20 Purchases
21 Sales
44,012
38,905
103,474
100,236
76,845
75,082
2,772
2,271
2,877
2,325
4,117
3,649
3,879
4,115
3,858
3,719
n.a.
n.a.
n.a.
n.a.
Mortgage commitments9
22 Contracted (during period)
48,989
110,855
71,467
6,437
5,159
6,447
5,328
3,480
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Home Loan Bank
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at the
end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
6. Average net yields to investors on Government National Mortgage 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.
A38
D o m e s t i c F i n a n c i a l Statistics • January 1989
1.54 MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1987
Type of holder, and type of property
1985
1986
1988
1987
Q3
Q4
Q1
Q2'
Q3
1 All holders
2,289,843
2,597,175
2,943,144'
2,864,736
2,943,144'
2,988, IOC
3,067,691
3,154,128
2 1- to 4-family
3 Multifamily
4 Commercial
Farm
1,488,009
214,470
481,514
105,850
1,698,524
247,831
555,039
95,781
1,925,197'
273,83(K
655,249'
88,868
1,870,635
268,911
635,230
89,960
1,925,197'
273,830'
655,249'
88,868
1,955,770'
277,622'
666,521'
88,187'
2,015,759
282,756
681,246
87,930
2,079,732
286,510
698,721
89,165
6 Selected financial institutions
'/
Commercial banks
1- to 4-family
Multifamily
Commercial
Farm
1,390,394
429,1%
213,434
23,373
181,032
11,357
1,507,289
502,534
235,814
31,173
222,799
12,748
1,700,820
591,151
275,761
33,296
267,663
14,431
1,648,328
567,000
263,762
32,114
256,981
14,143
1,700,820
591,151
275,761
33,296
267,663
14,431
1,723,737'
604,403'
280,439'r
33,640
275,535'
14,789'
1,773,569
628,132
291,767
34,672
286,366
15,327
1,828,599
653,388
303,629
35,936
297,880
15,943
760,499
554,301
89,739
115,771
688
171,797
12,381
19,894
127,670
11,852
28,902
777,312
558,412
97,059
121,236
605
193,842
12,827
20,952
149,111
10,952
33,601
856,945
598,886
106,359
150,943
n.a.
212,375
13,226
22,524
166,722
9,903
40,349
838,737
583,432
104,609
149,938
n.a.
204,263
12,742
21,968
159,464
10,089
38,328
856,945
598,886
106,359
150,943
n.a.
212,375
13,226
22,524
166,722
9,903
40,349
863,110
603,532
107,687
151,136
n.a.
214,815
13,653
22,723
168,774
9,665
41,409
882,049
622,976
109,353
148,969
n.a.
220,870
14,172
23,021
174,086
9,591
42,518
904,613
645,406
108,659
149,798
n.a.
227,120
14,573
23,667
179,012
9,868
43,478
23 Federal and related agencies
24 Government National Mortgage Association
1- to 4-family
25
26
Multifamily
27 Farmers Home Administration5
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
166,928
1,473
539
934
733
183
113
159
278
203,800
889
47
842
48,421
21,625
7,608
8,446
10,742
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
191,520
458
25
433
42,978
18,111
7,903
6,592
10,372
192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
1%,909
434
25
409
43,076
18,185
8,115
6,640
10,136
199,474
42
24
18
42,767
18,248
8,213
6,288
10,018
198,527
43
24
19
41,836
18,268
8,349
5,300
9,919
32
33
34
35
36
37
38
39
40
41
42
43
4,920
2,254
2,666
98,282
91,966
6,316
47,498
2,798
44,700
14,022
11,881
2,141
5,047
2,386
2,661
97,895
90,718
7,177
39,984
2,353
37,631
11,564
10,010
1,554
5,574
2,557
3,017
%,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
5,330
2,452
2,878
94,884
87,901
6,983
34,930
2,055
32,875
12,940
11,570
1,370
5,574
2,557
3,017
%,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442
5,660
2,608
3,052
99,787
92,828
6,959
33,566
1,975
31,591
14,386
12,749
1,637
5,673
2,564
3,109
102,368
95,404
6,964
33,048
1,945
31,103
15,576
13,631
1,945
5,545
2,445
3,100
102,453
95,417
7,036
33,208
1,954
31,254
15,442
13,589
1,853
44 Mortgage pools or trusts6
45 Government National Mortgage Association
46
1- to 4-family
47
Multifamily
48 Federal Home Loan Mortgage Corporation
49
1- to 4-family
50
Multifamily
51 Federal National Mortgage Association
52
1- to 4-family
53
Multifamily
54 Farmers Home Administration5
55
1- to 4-family
56
57
Commercial
58
Farm
439,058
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
565,428
262,697
256,920
5,777
171,372
166,667
4,705
97,174
95,791
1,383
348
142
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
692,944
308,339
300,815
7,524
208,872
202,308
6,564
130,540
128,770
1,770
333
144
718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
736,344
322,976
315,095
7,881
214,724
208,138
6,586
145,242
142,330
2,912
172
65
754,045
322,616
314,728
7,888
216,155
209,702
6,453
157,438
153,253
4,185
106
23
782,093
332,926
324,469
8,457
220,683
214,063
6,620
167,170
162,228
4,942
106
27
132
74
63
61
124
65
63
61
58
49
41
42
38
41
59 Individuals and others7
60 1- to 4-family
61 Multifamily
62 Commercial
63 Farm
293,463
162,419
55,849
48,692
26,503
320,658
177,374
66,940
53,315
23,029
331,306
171,325
75,368
63,255
21,358
331,944
173,360
74,795
62,131
21,658
331,306
171,325
75,368
63,255
21,358
331,110
169,509
76,021
64,378
21,202
340,603
177,074
76,935
65,4%
21,098
344,909
178,954
77,872
66,693
21,390
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Savings institutions3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies4
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation
1- to 4-family
Multifamily
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
5. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4,
because of accounting changes by the Farmers Home Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
Consumer Installment Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars
1988
Holder, and type of credit
1986
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Amounts outstanding (end of period)
571,833
613,022
619,258
624,294
629,485
633,336
636,318
644,372
647,993
653,317r
655,197
By major holder
Commercial banks
Finance companies
Credit unions
Retailers3
Savings institutions
Gasoline companies
262,139
133,698
76,191
39,660
56,881
3,264
281,564
140,072
81,065
42,782
63,949
3,590
284,753
141,695
81,662
42,926
64,633
3,590
287,344
142,946
81,897
43,080
65,396
3,631
290,831
144,053
82,595
43,271
65,078
3,657
293,166
144,516
83,204
43,295
65,387
3,769
295,546
144,454
83,881
43,162
65,509
3,765
300,275
144,748
84,912
43,450
67,274
3,713
303,189
143,812
85,468
43,634
68,182
3,707
307,119^
143,%2
85,881
43,712
68,909
3,735
308,836
142,723
86,707
43,956
69,310
3,665
By major type of credit
8 Automobile
9 Commercial banks
10 Credit unions
11 Finance companies
12 Savings institutions
246,109
100,907
38,413
92,350
14,439
267,180
108,438
43,474
98,026
17,242
269,883
109,298
43,959
99,147
17,479
273,133
111,021
44,251
100,123
17,738
276,762
113,593
44,795
100,669
17,705
278,567
114,868
45,293
100,564
17,841
279,418
115,951
45,831
99,708
17,928
282,254
117,322
46,565
99,900
18,465
283,359
118,650
47,043
98,8%
18,770
285,560'
120,38c
47,444
98,711
19,026
285,610
121,403
48,075
%,939
19,193
13 Revolving
14 Commercial banks
15 Retailers
16 Gasoline companies
17 Savings institutions
18 Credit unions
136,381
86,757
34,320
3,264
8,366
3,674
159,307
98,808
36,959
3,590
13,279
6,671
162,065
100,879
37,087
3,590
13,601
6,908
163,462
101,537
37,231
3,631
13,945
7,117
165,643
103,152
37,408
3,657
14,059
7,368
167,356
104,250
37,414
3,769
14,309
7,614
169,154
105,742
37,259
3,765
14,518
7,870
172,809
108,309
37,526
3,713
15,098
8,162
174,927
109,645
37,671
3,707
15,492
8,413
177,568'
111,623'
37,708
3,735
15,850
8,652
179,086
112,435
37,914
3,665
16,135
8,935
19 Mobile home
20 Commercial banks
21 Finance companies
22 Savings institutions
26,883
8,926
8,822
9,135
25,957
9,101
7,771
9,085
25,926
9,064
7,753
9,109
25,857
9,035
7,679
9,143
25,732
8,993
7,640
9,099
25,764
9,047
7,575
9,142
25,703
8,966
7,578
9,159
25,852
8,933
7,513
9,406
25,882
8,913
7,436
9,533
25,915'
8,893'
7,387
9,634
25,885
8,854
7,341
9,690
23 Other
24 Commercial banks
25 Finance companies
26 Credit unions
27 Retailers
28 Savings institutions
162,460
65,549
32,526
34,104
5,340
24,941
160,578
65,217
34,275
30,920
5,823
24,343
161,384
65,512
34,795
30,795
5,839
24,444
161,842
65,750
35,144
30,529
5,849
24,570
161,348
65,094
35,744
30,432
5,863
24,216
161,649
65,001
36,376
30,297
5,880
24,095
162,043
64,887
37,168
30,180
5,903
23,904
163,456
65,710
37,335
30,184
5,923
24,305
163,825
65,981
37,480
30,012
5,964
24,388
164,274'
66,222'
37,863
29,785
6,004
24,399
164,616
66,143
38,443
29,697
6,041
24,292
1 Total
2
3
4
5
6
7
Net change (during period)
54,078
41,189
6,236
5,036
5,191
3,851
2,982
8,054
3,621
5,324r
1,880
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
20,495
22,670
4,268
466
7,223
-1,044
19,425
6,374
4,874
3,122
7,068
326
3,189
1,623
597
144
684
0
2,591
1,251
235
154
763
41
3,487
1,107
698
191
-318
26
2,335
463
609
24
309
112
2,380
-62
677
-133
122
-4
4,729
294
1,031
288
1,765
-52
2,914
-936
556
184
908
-6
3,930'
150
413
78
111
28
1,717
-1,239
826
244
401
-70
By major type of credit
36 Automobile
37 Commercial banks
38 Credit unions
39 Finance companies
40 Savings institutions
36,473
8,178
2,388
22,823
3,084
21,071
7,531
5,061
5,676
2,803
2,703
860
485
1,121
237
3,250
1,723
292
976
259
3,629
2,572
544
546
-33
1,805
1,275
498
-105
136
851
1,083
538
-856
87
2,836
1,371
734
192
537
1,105
1,328
478
-1,004
305
2,201'
1,730'
401
-185
256
50
1,023
631
-1,772
167
41 Revolving
42 Commercial banks
43 Retailers
44 Gasoline companies
45 Savings institutions
46 Credit unions
14,368
11,150
47
-1,044
2,078
2,137
22,926
12,051
2,639
326
4,913
2,997
2,758
2,071
128
0
322
237
1,397
658
144
41
344
209
2,181
1,615
177
26
114
251
1,713
1,098
6
112
250
246
1,798
1,492
-155
-4
209
256
3,655
2,567
267
-52
580
292
2,118
1,336
145
-6
394
251
2,641'
1,978'
37
28
358
239
1,518
812
206
-70
285
283
47 Mobile home
48 Commercial banks
49 Finance companies
50 Savings institutions
49
-627
-472
1,148
-926
175
-1,051
-50
-31
-37
-18
24
-69
-29
-74
34
-125
-42
-39
-44
32
54
-65
43
-61
-81
3
17
149
-33
-65
247
30
-20
-77
127
33'
-20'
-49
101
-30
-39
-46
56
51 Other
52 Commercial banks
53 Finance companies
54 Credit unions
55 Retailers
56 Savings institutions
3,188
1,794
319
-257
419
913
-1,882
-332
1,749
-3,184
483
-598
806
295
520
-125
16
101
458
238
349
-266
10
126
-494
-656
600
-97
14
-354
301
-93
632
-135
17
-121
394
-114
792
-117
23
-191
1,413
823
167
4
20
401
369
271
145
-172
41
83
449'
241'
383
-227
40
11
342
-79
580
-88
37
-107
29 Total
30
31
32
33
34
35
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. 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,
A40
DomesticNonfinancialStatistics • January 1989
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1988
Item
1985
1986
1987
Mar.
Apr.
May
June
July
Aug.
Sept.
INTEREST RATES
1
2
3
4
5
6
Commercial banks2 3
48-month new car
24-month personal
120-month mobile home
Credit card
Auto finance companies
New car
Used car
12.91
15.94
14.%
18.69
11.33
14.82
13.99
18.26
10.45
14.22
13.38
17.92
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10.55
14.40
13.49
17.78
n.a.
n.a.
n.a.
n.a.
n.a.
10.93
14.81
13.62
17.79
n.a.
11.98
17.59
9.44
15.95
10.73
14.60
12.24
14.77
12.29
14.82
12.29
14.81
12.32
14.83
12.44
14.99
12.64
15.16
12.93
15.46
51.5
41.4
50.0
42.6
53.5
45.2
56.0
46.9
56.2
46.9
56.2
46.9
56.3
46.9
56.4
46.8
56.5
46.8
56.3
46.5
91
94
91
97
93
98
94
98
94
98
94
99
94
99
94
99
94
98
94
98
9,915
6,089
10,665
6,555
11,203
7,420
11,493
7,587
11,553
7,662
11,624
7,778
11,626
7,899
11,663
7,947
11,593
7,918
11,530
7,903
OTHER TERMS 4
7
8
9
10
11
12
Maturity (months)
New car
Used car
Loan-to-value ratio
New car
Used car
Amount financed (dollars)
New car
Used car
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
Flow of Funds
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1988
1987
Transaction category, sector
1983
1984
1985
1986
1987
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors
546.8
750.8
846.3
830.6
680.6
552.0
751.7
652.1
766.8
731.8
704.0
760.4
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
186.6
186.7
-.1
198.8
199.0
-.2
223.6
223.7
-.1
215.0
214.7
.4
143.8
142.3
1.5
161.6
157.7
3.9
145.2
147.1
-1.9
101.8
102.7
-.9
166.7
161.8
5.0
226.3
226.8
-.5
87.6
79.8
7.7
195.5
174.6
20.9
5 Private domestic nonfinancial sectors
6 Debt capital instruments
Tax-exempt obligations
7
8
Corporate bonds
9
Mortgages
10
Home mortgages
Multifamily residential
11
1?
Commercial
Farm
13
360.2
257.6
53.7
16.0
187.9
120.4
14.1
51.0
2.4
552.0
319.3
50.4
46.1
222.8
136.7
25.2
62.2
-1.2
622.7
452.3
136.4
73.8
242.2
156.8
29.8
62.2
-6.6
615.6
460.7
30.8
121.3
308.6
210.9
33.5
73.6
-9.5
536.8
446.1
34.5
99.9
311.6
221.7
24.3
72.0
-6.4
390.3
473.3
38.7
128.9
305.7
224.2
27.4
66.5
-12.4
606.4
466.7
33.1
88.5
345.1
243.5
30.9
77.2
-6.6
550.3
428.1
32.7
100.7
294.7
212.1
23.1
64.1
-4.7
600.1
416.1
33.5
81.6
301.1
206.9
15.9
80.2
-1.9
505.6
363.3
24.8
101.3
237.1
177.9
21.4
43.2
-5.4
616.5
452.2
32.6
118.4
301.2
228.0
14.0
60.8
-1.6
564.9
457.1
44.4
90.8
322.0
210.1
33.5
72.7
5.7
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
102.6
49.0
23.2
-.8
31.3
232.7
81.6
67.1
21.7
62.2
170.3
82.5
38.6
14.6
34.6
154.9
54.4
69.3
-9.3
40.5
90.7
40.7
8.8
2.3
38.9
-83.0
-.3
-107.8
-.5
25.5
139.7
52.4
36.6
4.7
46.1
122.2
61.4
21.0
1.0
38.7
184.0
49.4
85.3
3.9
45.5
142.3
34.8
40.4
-3.8
70.9
164.2
59.5
74.2
4.0
26.6
107.8
43.3
2.6
11.1
50.7
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
360.2
34.0
186.1
140.1
3.9
81.9
54.4
552.0
27.4
231.5
293.1
-.4
123.2
170.3
622.7
91.8
283.6
247.3
-14.5
129.3
132.4
615.6
44.3
286.1
285.1
-16.3
127.6
173.8
536.8
34.4
261.5
240.8
-11.2
115.8
136.3
390.3 606.4
31.4
37.0
197.3 302.7
156.0 272.4
-23.5 -12.7
108.4 125.7
71.2 159.4
550.3
34.8
281.2
234.2
-9.4
105.4
138.3
600.1
34.6
264.9
300.7
.8
123.8
176.1
505.6
22.3
220.0
263.3
-12.5
91.0
184.9
616.5
31.1
288.0
297.3
-3.6
87.1
213.9
564.9
41.3
250.9
272.7
1.3
120.3
151.1
26 Foreign net borrowing in United States
77 Bonds
28 Bank loans n.e.c
29 Open market paper
30 U.S. government loans
17.3
3.1
3.6
6.5
4.1
8.4
3.8
-6.6
6.2
5.0
1.2
3.8
-2.8
6.2
-5.9
9.6
3.0
-1.0
11.5
-3.9
4.3
6.8
-3.6
2.1
-1.0
-8.7
3.0
-1.2
-4.2
-6.4
-.1
-4.1
-3.5
-6.4
13.9
12.3
6.7
-3.7
21.6
-12.3
13.9
21.6
-6.1
-2.5
.8
-1.0
16.8
.7
1.5
-19.9
4.9
-2.9
-3.5
6.4
4.9
9.7
7.4
.3
10.7
-8.8
564.1
759.2
847.5
840.2
685.0
543.3
751.6
664.3
780.7
730.9
709.0
770.1
31 Total domestic plus foreign
Financial sectors
32 Total net borrowing by financial sectors
By instrument
33 U.S. government related
34 Sponsored credit agency securities
35 Mortgage pool securities
36
37 Private financial sectors
38 Corporate bonds
39 Mortgages
40 Bank loans n.e.c
41 Open market paper
42 Loans from Federal Home Loan Banks
By sector
43
44
45
46
47
48
49
50
51
52
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers
99.2
148.7
198.3
297.2
303.1
340.0
316.7
306.4
249.2
218.9
250.1
249.1
67.8
1.4
66.4
74.9
30.4
44.4
193.5
-4.4
200.7
-2.9
146.5
103.2
.4
-9.5
41.5
11.0
196.8
21.5
175.4
-.1
119.9
45.6
.1
.6
54.0
19.6
137.4
56.8
80.5
84.7
9.4
75.3
140.2
42.8
97.4
120.8
77.7
.2
6.3
14.3
22.2
81.7
41.8
.4
-10.7
5.4
44.9
81.6
74.7
.2
-26.8
28.0
5.4
165.4
67.9
108.9
65.9
-.1
21.3
-7.0
185.8
30.2
156.4
-.7
117.2
67.1
.3
-3.3
28.8
24.4
167.5
71.6
95.9
73.8
33.0
.4
.7
24.1
15.7
178.1
15.2
163.3
-.4
119.1
70.9
.1
4.0
24.2
19.8
185.5
32.0
153.5
31.4
17.3
101.5
20.6
79.9
1.1
96.7
47.9
.1
2.6
32.0
14.2
8.7
78.7
10.1
-4.9
21.3
26.6
99.2
148.7
198.3
297.2
303.1
340.0
316.7
306.4
249.2
218.9
250.1
249.1
1.4
66.4
31.4
5.0
12.1
-2.1
13.0
-.2
3.6
30.4
44.4
73.8
7.3
15.6
22.7
18.2
.8
9.3
21.7
79.9
96.7
-4.9
14.5
22.3
52.7
.5
11.5
14.9
163.3
119.1
-3.6
4.6
29.8
48.4
1.0
39.0
29.5
156.4
117.2
7.1
2.9
36.0
30.6
1.5
39.1
-7.2
200.7
146.5
6.4
25.6
28.0
18.1
1.7
66.8
21.4
175.4
119.9
20.0
-2.7
22.2
39.9
-.5
41.0
32.0
153.5
120.8
-13.1
11.3
41.9
36.3
1.7
42.7
71.6
95.9
81.7
15.0
-22.6
51.9
28.2
3.2
6.0
56.8
80.5
81.6
-22.4
-5.0
9.1
54.5
2.4
43.1
9.4
75.3
165.4
6.2
7.6
18.2
100.4
1.8
31.2
42.8
97.4
108.9
-12.9
5.2
52.9
40.6
1.9
21.3
*
*
A42
DomesticNonfinancialStatistics • January 1989
1.57—Continued
1988
1987
Transaction category, sector
1983
1984
1985
1986
1987
Q1
Q2
Q3
Q4
Q1
Q2
Q3
All sectors
53
54
55
56
57
58
59
60
61
62
Total net borrowing
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
63
Net borrowing by domestic nonfinancial
Net borrowing by U.S. government
64
1,045.7 1,137.4
988.0
970.7
1,029.9
949.8
959.1 1,019.2
393.5
30.8
195.2
308.6
54.4
72.3
26.4
56.1
330.4
34.5
173.8
311.9
40.7
1.9
33.2
61.6
358.0
38.7
235.2
306.0
-.3
-118.5
36.8
27.3
342.2
33.1
130.0
345.2
52.4
33.8
52.3
79.4
287.3
32.7
185.1
294.9
61.4
23.6
36.9
48.7
334.2
33.5
145.0
301.4
49.4
68.5
6.7
91.2
363.6
24.8
192.8
237.4
34.8
14.2
25.7
56.4
172.3
32.6
183.5
301.2
59.5
79.4
89.1
41.7
335.7
44.4
164.1
322.0
43.3
-2.0
43.1
68.6
-7.9
-34.9
77.7
-19.6
-54.7
60.9
3.3
6.4
688.5
151.7
586.9
196.6
674.0
67.6
671.7
121.4
821.5
221.4
670.9
165.4
700.8
84.3
754.0
189.1
-83.6 -73.7
-141.0
-70.3
-9.1
-74.6
-88.0
25.5
-12.0
-8.1
-132.9
-140.0
13.8
-6.7
6.0
-76.3
-92.0
13.6
2.1
663.4
907.9
254.4
53.7
36.4
187.8
49.0
26.7
26.9
28.4
273.8
50.4
83.0
223.1
81.6
61.1
52.0
82.9
324.2
136.4
125.4
242.2
82.5
38.3
52.8
44.0
-7.1
6.3
14.4
553.9
193.7
744.5
192.5
831.9
209.3
*
830.6
215.0
883.3 1,068.3
External corporate equity funds raised in United States
65
66
67
68
69
70
Total net share issues
Mutual funds
All other
Nonfinancial corporations
Financial corporations
Foreign shares purchased in United States
58.1
-36.0
20.1
93.9
13.3
170.1
27.2
30.8
23.5
3.6
3.7
29.3
-65.3
-74.5
8.2
.9
84.4
-64.3
-81.5
13.5
3.7
161.8
-68.0
-80.7
11.5
1.3
72.3
-59.0
-76.5
19.9
-2.4
205.4
-35.3
-57.0
19.1
2.7
13.9 -47.1
79.1
-65.2
-83.0
16.5
1.2
13.8
-60.9
-78.0
18.4
-1.3
5.0
-78.7
-95.0
17.0
-.7
Flow of Funds
A43
1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1987
Transaction category, or sector
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1983
1984
1985
1986
1988
1987
Q1
Q2
Q3
Q4
Ql
Q2
Q3
546.8
750.8
846.3
830.6
680.6
552.0
751.7
652.1
766.8
731.8
704.0
760.4
117.8
29.0
76.1
-7.0
19.7
157.6
38.9
56.5
15.7
46.6
193.1
37.9
94.6
14.2
46.3
304.2
69.4
160.3
19.8
54.6
256.3
68.2
153.2
24.4
10.5
270.9
59.0
194.8
11.0
6.1
279.3
55.3
169.4
19.6
35.1
211.1
35.1
146.0
22.2
7.8
264.0
123.3
102.7
44.9
-6.8
281.7
148.6
100.7
5.4
27.0
162.5
38.2
89.7
10.1
24.5
196.6
17.3
97.5
26.6
55.3
9.7
69.8
14.7
23.7
17.1
74.3
8.4
57.9
16.8
95.5
18.4
62.3
9.7
177.3
19.4
97.8
-11.5
180.6
24.7
62.5
-8.5
204.9
9.4
65.1
-12.3
177.0
29.8
84.8
-24.1
187.0
29.0
19.1
-.9
153.6
30.4
81.0
-8.9
123.3
-5.5
172.9
-10.1
86.3
4.1
82.2
1.5
119.9
17.1
58.2
67.8
17.3
74.9
8.4
101.5
1.2
178.1
9.6
185.8
4.3
193.5
-8.7
196.8
-.1
185.5
12.3
167.5
13.9
137.4
-1.0
84.7
4.9
140.2
9.7
Private domestic funds advanced
n 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
514.2
225.4
53.7
14.5
58.3
155.1
-7.0
676.4
234.9
50.4
35.1
105.3
266.3
15.7
756.0
286.2
136.4
40.8
91.8
214.9
14.2
714.1
324.1
30.8
84.1
84.1
210.8
19.8
614.5
262.2
34.5
86.5
92.8
162.9
24.4
465.9
299.0
38.7
100.4
56.7
-18.0
11.0
669.1
286.9
33.1
58.8
105.0
204.8
19.6
638.7
252.2
32.7
83.7
89.3
203.0
22.2
684.2
210.9
33.5
102.9
120.0
261.7
44.9
586.5
215.0
24.8
115.7
98.7
137.7
5.4
631.2
134.1
32.6
88.1
152.4
234.1
10.1
713.7
318.4
44.4
68.6
146.1
162.8
26.6
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
71 Commercial banking
77 Savings institutions
23 Insurance and pension funds
24 Other finance
394.7
144.3
135.6
100.1
14.7
581.0
168.9
150.2
121.8
140.1
569.8
186.3
83.0
148.9
151.6
746.3
194.8
105.5
181.9
264.3
564.9
136.3
140.4
210.8
77.3
521.5
-56.2
89.9
266.3
221.6
549.7
198.0
132.0
178.0
41.7
639.7
150.9
188.7
246.2
54.0
548.5
252.6
151.0
152.8
-7.9
674.9
56.0
87.9
282.4
248.6
615.7
213.3
120.7
235.3
46.5
606.4
132.3
166.4
217.6
90.1
75 Sources of funds
76 Private domestic deposits and RPs
77 Credit market borrowing
78 Other sources
79
Foreign funds
Treasury balances
30
31
Insurance and pension reserves
Other, net
32
394.7
210.4
31.4
152.9
14.6
-5.3
115.0
28.7
581.0
321.9
73.8
185.3
8.8
4.0
124.0
48.5
569.8
210.6
96.7
262.5
19.7
10.3
131.9
100.7
746.5
264.7
119.1
362.7
12.9
1.7
144.3
203.8
564.9
146.2
117.2
301.4
43.7
-5.8
175.0
88.6
521.5
-17.1
146.5
392.1
14.9
-36.9
195.1
219.0
549.7
141.1
119.9
288.6
35.1
43.6
191.1
18.9
639.7
193.9
120.8
325.0
99.5
6.1
194.8
24.6
548.5
266.8
81.7
200.0
25.2
-36.1
118.9
91.9
674.9
287.7
81.6
305.6
-80.1
53.3
247.6
84.8
615.7 606.4
127.3 206.1
165.4 108.9
323.0 291.3
106.6 -39.2
-17.5 -1.9
207.8 173.7
26.1 158.6
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
150.9
91.0
38.8
-8.3
12.4
17.0
169.2
115.4
26.5
-.8
4.0
24.2
282.9
175.7
39.6
2.4
45.6
19.6
86.7
50.1
-13.6
32.6
-3.0
20.7
166.8
103.2
46.1
5.1
7.9
4.6
90.9
52.1
27.8
9.3
-1.9
3.6
239.3
170.1
58.1
-58.6
64.2
5.6
119.8
70.9
42.4
28.3
-23.3
1.6
217.3
119.6
56.0
41.5
-7.5
7.7
-6.9
117.6
1.5
-40.6
-65.6
-19.7
180.9 216.2
23.8 160.0
29.7
39.1
52.7 -25.9
40.5
77.7
2.5
-3.0
39 Deposits and currency
40 Currency
41 Checkable deposits
42 Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45 Security RPs
46 Deposits in foreign countries
227.8
14.3
28.8
215.4
-39.0
-8.3
13.5
3.1
325.4
8.6
28.0
150.7
49.0
84.3
10.0
-5.1
220.9
12.4
40.9
138.4
8.9
7.7
14.6
-2.1
285.0
14.4
93.2
120.6
41.5
-11.5
20.8
5.9
162.4
19.0
-2.4
75.9
28.2
27.6
16.9
-2.8
-46.6
9.4
-98.7
31.3
14.4
13.7
22.1
-38.9
149.2
12.5
40.3
69.3
2.4
4.8
24.3
-4.4
229.3
17.3
34.5
79.9
32.7
.2
46.6
18.1
317.6
36.8
14.4
123.1
63.3
91.6
-25.6
13.9
282.7
8.2
4.2
195.1
59.1
12.0
17.3
-13.3
134.9
11.9
21.5
125.5
-34.8
-7.6
22.7
-4.3
256.7
17.5
-.6
102.1
13.0
92.0
-.4
33.1
47 Total of credit market instruments, deposits, and
currency
2
3
4
5
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
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
7
8
9
10
378.7
494.6
503.7
371.8
329.2
44.3
388.5
349.1
534.9
275.8
315.8
472.9
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
20.9
76.8
38.2
20.8
85.9
66.7
22.8
75.4
82.0
36.2
104.5
110.7
37.4
91.9
106.2
49.9
112.0
80.0
37.2
82.2
119.9
31.8
100.2
118.7
33.8
80.2
106.2
38.5
115.1
92.8
22.9
97.6
188.9
25.5
85.0
19.0
MEMO: Corporate equities not included above
51 Total net issues
58.1
-36.0
20.1
93.9
13.3
170.1
13.9
-47.1
-83.6
-73.7
-141.0 -70.3
57 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
27.2
30.8
50.4
7.7
29.3
-65.3
15.8
-51.8
84.4
-64.3
45.6
-25.5
161.8
-68.0
48.5
45.4
72.3
-59.0
22.6
-9.3
205.4
-35.3
29.2
140.9
79.1
-65.2
72.6
-58.7
13.8
-60.9
5.2
-52.4
-9.1
-74.6
-16.5
-67.1
5.0
-78.7
-33.0
-40.7
6.0
-8.1
-132.9 -76.3
-10.1 -9.4
-131.0 -61.0
48
49
50
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking in foreign banks.
30. Demand deposits and note balances at commercial banks.
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 inflowsand 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
D o m e s t i c F i n a n c i a l Statistics •
January 1989
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1987
Transaction category, sector
1983
1984
1985
1986
1988
1987
Q1
Q2
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
5,204.3
5,953.7
6,797.0
7,618.1
8,301.3 7,725.8
7,917.4
8,074.1
8,301.3
8,444.3
8,629.8
8,817.3
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
1,177.9
1,174.4
3.6
1,376.8
1,373.4
3.4
1,600.4
1,597.1
3.3
1,815.4
1,811.7
3.6
1,959.2 1,843.9
1,954.1 1,839.3
5.2
4.6
1,875.3
1,871.2
4.2
1,897.0
1,893.1
3.9
1,959.2
1,954.1
5.2
2,001.8
1,996.7
5.0
2,020.4
2,013.5
7.0
2,063.8
2,051.6
12.2
5 Private domestic nonfinancial sectors
6 Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
4,026.4
2,717.8
471.7
423.0
1,823.1
1,200.2
158.8
350.4
113.7
4,577.0
3,040.0
522.1
469.2
2,048.8
1,336.2
183.6
416.5
112.4
5,196.6
3,488.4
658.4
542.9
2,287.1
1,490.2
213.0
478.1
105.9
5,802.7
3,946.4
689.2
664.2
2,593.0
1,699.6
246.3
551.4
95.8
6,342.1
4,404.5
723.7
764.1
2,916.6
1,908.7
269.9
649.2
88.9
5,881.9
4,065.6
696.9
696.4
2,672.2
1,730.4
254.2
594.8
92.8
6,042.1
4,189.4
705.2
718.5
2,765.7
1,800.7
259.9
613.8
91.3
6,177.1
4,296.9
715.5
743.7
2,837.7
1,853.8
264.9
629.0
90.0
6,342.1
4,404.5
723.7
764.1
2,916.6
1,908.7
269.9
649.2
88.9
6,442.6
4,479.3
728.0
789.4
2,961.8
1,939.7
273.8
660.2
88.2
6,609.4
4,596.7
735.8
819.1
3,041.9
2,000.4
278.1
675.5
87.9
6,753.5
4,715.0
749.4
841.7
3,123.8
2,056.6
285.6
692.5
89.2
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,308.6
437.7
490.2
36.8
344.0
1,536.9
519.3
552.9
58.5
406.2
1,708.2
601.8
592.6
72.2
441.6
1,856.3
656.2
658.6
62.9
478.6
1,937.6 1,816.4
696.9
643.3
656.7
627.7
73.8
63.6
510.1
481.7
1,852.7
658.7
636.3
67.9
489.9
1,880.2
680.9
637.5
68.1
493.7
1,937.6
696.9
656.7
73.8
510.1
1,963.3
692.2
669.4
73.5
528.1
2,012.6
709.6
689.9
77.8
535.3
2,038.5
727.8
688.7
80.3
541.6
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
4,026.4
357.7
1,811.6
1,857.1
188.4
645.8
1,022.9
4,577.0
385.1
2,038.2
2,153.7
187.9
769.0
1,196.8
5,196.6
476.9
2,314.5
2,405.2
173.4
898.3
1,333.5
5,802.7
520.2
2,594.2
2,688.3
156.6
1,025.9
1,505.8
6,342.1
554.7
2,836.6
2,950.9
144.9
1,141.7
1,664.3
5,881.9
527.5
2,605.4
2,749.0
149.9
1,053.8
1,545.3
6,042.1
535.3
2,691.2
2,815.7
150.2
1,084.3
1,581.2
6,177.1
546.2
2,762.8
2,868.1
148.5
1,106.7
1,612.9
6,342.1
554.7
2,836.6
2,950.9
144.9
1,141.7
1,664.3
6,442.6
558.3
2,866.2
3,018.1
141.5
1,165.2
1,711.5
6,609.4
565.7
2,945.7
3,097.9
144.0
1,186.0
1,767.8
6,753.5
578.5
3,016.4
3,158.5
145.0
1,211.9
1,801.6
227.3
64.2
37.4
21.5
104.1
235.1
68.0
30.8
27.7
108.6
236.7
71.8
27.9
33.9
103.0
238.2
74.8
26.9
37.4
99.1
244.3
81.6
23.3
41.2
98.1
236.7
75.1
26.0
37.3
98.3
236.8
74.6
25.4
35.6
101.2
238.9
75.9
24.2
40.6
98.2
244.3
81.6
23.3
41.2
98.1
245.1
85.4
22.8
42.5
94.4
246.3
85.2
22.4
44.0
94.7
247.8
86.7
22.0
46.3
92.8
5,431.6
6,188.8
7,033.7
7,856.3
8,545.6 7,962.5
8,154.2
8,313.1
8,545.6
8,689.4
8,876.1
9,065.1
1,710.0
1,783.8
1,862.6
1,903.8
1,972.6
2,035.7
887.1
268.4
613.7
5.0
734.8
293.4
2.8
36.5
295.2
106.8
937.1
275.8
656.4
5.0
772.9
304.6
2.9
40.1
311.1
114.3
981.6
283.7
692.9
5.0
802.1
324.2
2.9
42.2
312.7
120.1
1,026.5
303.2
718.3
5.0
836.1
335.5
3.0
40.8
323.8
133.1
1,054.8
313.5
736.3
5.0
849.0
353.2
3.1
31.7
331.5
129.5
1,076.9
317.9
754.0
5.0
895.7
370.0
3.1
34.3
353.4
134.8
1,113.7
328.5
780.2
5.0
922.0
386.8
3.1
33.9
356.8
141.6
1,862.6 1,621.8
1,710.0
1,783.8
1,862.6
1,903.8
1,972.6
2,035.7
280.7
656.4
772.9
80.7
108.7
157.0
328.8
6.8
90.9
288.7
692.9
802.1
78.6
109.5
165.4
339.9
7.3
101.6
308.2
718.3
836.1
82.7
104.2
181.1
357.0
8.1
103.1
318.5
736.3
849.0
76.4
104.4
177.4
368.3
8.7
113.9
322.9
754.0
895.7
77.2
106.5
187.3
393.8
9.1
121.7
333.5
780.2
922.0
75.4
105.8
198.0
406.3
9.6
127.0
26 Foreign credit market debt held in
United States
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
27
28
29
30
31 Total domestic plus foreign
Financial sectors
32 Total credit market debt owed by
financial sectors
857.9
1,006.2
1,206.2
1,510.8
456.7
206.8
244.9
5.0
401.2
115.8
2.1
28.9
195.5
59.0
531.2
237.2
289.0
5.0
475.0
148.9
2.5
29.5
219.5
74.6
632.7
257.8
368.9
6.1
573.4
197.5
2.7
32.1
252.4
88.8
810.3
273.0
531.6
5.7
700.5
268.4
2.7
36.1
284.6
108.6
43 Total, by sector
857.9
1,006.2
1,206.2
1,510.8
44
45
46
47
48
49
50
51
52
211.8
244.9
401.2
76.8
71.0
73.9
171.7
3.5
4.2
242.2
289.0
475.0
84.1
86.6
93.2
193.2
4.3
13.5
263.9
368.9
573.4
79.2
101.2
115.5
246.9
5.6
25.0
278.7
531.6
700.5
75.6
101.3
145.1
308.1
6.5
64.0
33
34
35
36
37
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks...
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Finance companies
REITs
CMO Issuers
1,862.6 1,621.8
1,026.5
303.2
718.3
5.0
836.1
335.5
3.0
40.8
323.8
133.1
308.2
718.3
836.1
82.7
104.2
181.1
357.0
8.1
103.1
273.4
613.7
734.8
76.1
109.0
146.6
315.4
7.0
80.7
All sectors
53 Total credit market debt
6,289.5
7,195.0
8,239.8
9,367.2
10,408.1 9,584.3
54
55
56
57
58
59
60
61
1,629.4
471.7
603.0
1,825.4
437.7
556.5
253.8
512.1
1,902.8
522.1
686.0
2,051.4
519.3
613.2
305.7
594.4
2,227.0
658.4
812.1
2,289.8
601.8
652.6
358.5
639.5
2,620.0
689.2
1,007.4
2,595.8
656.2
721.6
384.9
692.0
2,980.7 2,726.0
723.7
696.9
1,181.2 1,064.9
2,919.7 2,675.1
696.9
643.3
720.8 690.3
438.8
396.1
746.3
691.8
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
9,864.2 10,096.9 10,408.1 10,593.3 10,848.6 11,100.8
2,807.4
705.2
1,097.7
2,768.6
658.7
701.7
414.6
710.4
2,873.7
715.5
1,143.9
2,840.6
680.9
703.8
421.4
717.0
2,980.7
723.7
1,181.2
2,919.7
696.9
720.8
438.8
746.3
3,051.6
728.0
1,228.1
2,964.9
692.2
723.9
447.5
757.0
3,092.3
735.8
1,274.2
3,045.0
709.6
746.6
475.3
769.8
3,172.5
749.4
1,315.2
3,127.0
727.8
744.6
483.4
780.9
Flow of Funds
A45
1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted; period-end levels.
1988
1987
Transaction category, or sector
1983
1984
1985
1986
1987
Ql
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
2
3
4
5
6
By public agencies and foreign
Total held
U.S. government securities
Residential mortgages
FHLB advances to savings and loans
Other loans and securities
7 Total held, by type of lender
8 U.S. government
9 Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
Q2
Q3
Q4
Ql
Q2
Q3
5,204.3 5,953.7 6,797.0 7,618.1 8,301.3 7,725.8 7,917.4 8,074.1 8,301.3 8,444.3 8,629.8 8,817.3
1,101.7 1,259.2 1,459.4 1,759.3 2,037.8 1,847.6 1,918.0 1,967.0 2,037.8 2,098.6 2,144.4 2,192.8
559.4
559.4
592.7
606.1
607.1
377.9
421.8
491.2
502.3
519.5
525.6
339.0
932.2
678.5
862.0
758.9
862.0
884.8
906.1
367.0
423.5
518.2
800.0
834.6
141.6
108.6
133.1
106.8
129.5
134.8
59.0
74.6
88.8
114.3
120.1
133.1
483.4
479.6
491.5
497.4
511.9
430.6
481.0
486.8
483.4
336.8
383.1
484.3
1,101.7 1,259.2 1,459.4 1,759.3 2,037.8 1,847.6 1,918.0 1,967.0 2,037.8 2,098.6 2,144.4 2,192.8
254.3
235.4
249.2
235.4
233.7
232.0
232.6
212.8
229.7
247.6
242.9
237.1
833.9 1,044.1
912.0
482.0
657.8
957.9 1,003.7 1,044.1 1,068.2 1,091.6 1,124.2
556.3
204.1
229.7
230.8
186.0
205.5
230.1
214.9
219.6
230.1
224.9
159.2
167.6
465.7
528.2
482.3
571.8
591.1
605.3
247.7
305.6
367.9
502.3
506.7
528.2
810.3 1,026.5
238.2
244.3
981.6 1,026.5 1,054.8 1,076.9 1,113.7
247.8
238.9
244.3
245.1
246.3
887.1
236.7
937.1
236.8
7,534.2
2,421.3
723.7
688.1
1,316.7
2,517.4
133.1
7,002.0
2,223.7
696.9
626.0
1,225.8
2,336.4
106.8
7,173.2
2,287.9
705.2
642.4
1,260.6
2,391.5
114.3
7,327.7
2,348.1
715.5
663.4
1,284.2
2,436.6
120.1
7,534.2
2,421.3
723.7
688.1
1,316.7
2,517.4
133.1
7,645.7
2,458.9
728.0
716.3
1,328.7
2,543.3
129.5
7,808.6
2,486.3
735.8
740.1
1,372.4
2,608.9
134.8
7,985.9
2,565.3
749.4
757.3
1,410.0
2,645.5
141.6
6,585.2
2,309.6
1,434.2
1,756.9
1,084.6
6,126.1
2,155.9
1,308.4
1,608.7
1,053.1
6,277.5
2,207.9
1,355.4
1,652.6
1,061.5
6,433.5
2,248.7
1,396.5
1,715.3
1,073.0
6,585.2
2,309.6
1,434.2
1,756.9
1,084.6
6,723.0
2,322.1
1,440.3
1,823.0
1,137.6
6,892.6
2,377.5
1,486.8
1,880.9
1,147.5
7,042.6
2,414.3
1,523.4
1,937.2
1,167.7
456.7
227.3
531.2
235.1
632.7
236.7
Private domestic holdings
14 Total private holdings
15 U.S. government securities
16 State and local obligations
17 Corporate and foreign bonds
18 Residential mortgages
19 Other mortgages and loans
20 LESS: Federal Home Loan Bank advances
4,786.6
1,290.4
471.7
441.7
992.2
1,649.6
59.0
5,460.8
1,524.9
522.1
476.8
1,096.5
1,915.2
74.6
6,207.0
1,805.2
658.4
517.6
1,185.1
2,129.5
88.8
6,907.3
2,128.7
689.2
601.7
1,267.4
2,328.9
108.6
Private financial intermediation
21 Credit market claims held by private financial
institutions
22 Commercial banking
23 Savings institutions
24 Insurance and pension funds
25 Other finance
4,111.2
1,622.1
944.0
1,093.5
451.6
4,691.0
1,791.1
1,092.8
1,215.3
591.7
5,264.4
1,978.5
1,178.4
1,364.2
743.4
6,009.5
2,173.2
1,283.0
1,546.0
1,007.3
26 Sources of funds
27 Private domestic deposits and RPs
28 Credit market debt
4,111.2 4,691.0 5,264.4 6,009.5 6,585.2 6,126.1 6,277.5 6,433.5 6,585.2 6,723.0 6,892.6 7,042.6
2,389.8 2,711.5 2,922.1 3,182.6 3,328.8 3,165.0 3,198.6 3,234.4 3,328.8 3,385.7 3,417.0 3,455.1
734.8
895.7
922.0
573.4
700.5
836.1
772.9
802.1
836.1
849.0
401.2
475.0
29
30
1,320.2 1,504.5 1,768.9 2,126.4 2,420.4 2,226.3 2,305.9 2,397.0 2,420.4 2,488.4 2,579.9 2,665.6
26.7
62.3
54.8
5.6
18.6
62.2
26.1
52.7
62.2
45.9
-23.0 -14.1
31.5
27.5
21.6
8.6
23.5
32.6
15.5
25.8
30.9
33.0
21.6
11.5
1,706.7
1,751.9
1,592.2
1,461.8
1,656.3
1,289.5
1,427.9
1,507.5
1,552.8
1,592.2
1,036.1 1,160.8
827.4
652.5
744.3
729.2
741.4
758.5
744.3
762.8
778.3
342.2
448.0
295.6
12
13
31
32
33
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Private domestic nonfinancial investors
34 Credit market claims
35 U.S. government securities
36 Tax-exempt obligations
37 Corporate and foreign bonds
38 Open market paper
39 Other
1,076.6 1,244.8 1,516.0 1,598.3 1,785.0 1,610.7 1,668.7 1,696.3 1,785.0 1,771.6 1,811.6 1,865.3
881.2 1,014.7
912.0
950.4
830.7
969.4 1,014.7 1,025.7 1,027.0 1,071.4
548.6
663.6
268.4
222.3
226.2
268.4
265.6
275.3
287.3
170.0
196.3
235.9
243.1
255.9
88.4
80.1
85.3
88.8
71.4
82.7
93.0
45.4
44.5
47.6
80.6
85.3
143.5
115.5
148.5
149.6
72.4
118.0
115.0
132.6
118.7
143.5
127.8
68.4
268.5
299.7
273.2
268.1
269.9
267.9
244.3
268.0
283.8
271.2
271.9
273.2
40 Deposits and currency
41 Currency
42 Checkable deposits
43 Small time and savings accounts
44 Money market fund shares
45 Large time deposits
46 Security RPs
47 Deposits in foreign countries
2,566.4 2,891.7 3,112.5 3,393.4 3,555.7 3,364.7 3,405.6 3,444.5 3,555.7 3,607.4 3,646.4 3,690.7
205.4
210.7
171.9
186.3
185.3
192.4
205.4
204.0
209.9
150.9
159.6
191.3
512.9
510.5
468.5
510.5
506.8
497.3
350.9
378.8
419.7
488.0
487.2
491.1
1,542.9 1,693.5 1,831.9 1,948.3 2,024.2 1,965.2 1,977.7 1,990.8 2,024.2 2,079.4 2,107.9 2,126.8
297.1
268.9
281.3
279.5
286.4
297.1
322.1
310.4
311.1
169.5
218.5
227.3
372.4
328.4
356.0
323.4
351.0
346.1
247.7
332.1
339.8
322.5
326.3
356.0
124.1
141.0
126.6
142.1
145.9
147.4
88.7
103.3
130.9
143.6
141.0
78.8
18.5
24.5
21.6
14.4
19.4
25.0
25.7
15.7
17.8
21.6
17.8
20.6
48 Total of credit market instruments, deposits, and
currency
3,643.0 4,136.5 4,628.5 4,991.7 5,340.8 4,975.4 5,074.2 5,140.8 5,340.8 5,379.0 5,458.0 5,556.1
49
50
51
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
20.3
85.9
224.7
20.3
85.9
291.5
20.7
84.8
373.5
22.4
87.0
484.2
23.8
87.4
590.5
23.2
87.5
509.0
23.5
87.5
528.4
23.7
87.8
559.4
23.8
87.4
590.5
24.2
87.9
617.6
24.2
88.3
653.4
24.2
88.2
660.0
MEMO: Corporate equities not included above
52 Total market value
2,134.0 2,158.2 2,824.5 3,362.0 3,313.4 3,990.2 4,110.0 4,300.8 3,313.4 3,494.8 3,612.6 3,577.5
53
54
Mutual fund shares
Other equities
413.5
460.1
136.7
240.2
485.2
520.7
525.1
483.9
112.1
460.1
479.2
486.8
2,021.9 2,021.5 2,584.3 2,948.5 2,853.2 3,505.0 3,589.3 3,775.7 2,853.2 3,015.7 3,125.9 3,093.6
55
56
Holdings by financial institutions
Other holdings
800.0
972.2 1,021.7 1,175.7 1,238.9 1,312.5 1,021.7 1,087.1 1,133.8 1,133.0
612.0
615.6
1,522.0 1,542.6 2,024.5 2,389.8 2,291.7 2,814.5 2,871.1 2,988.4 2,291.7 2,407.7 2,478.9 2,444.4
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
12. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34.
Also sum of lines 29 and 48 less lines 41 and 47.
19. Includes farm and commercial mortgages.
27. Line 40 less lines 41 and 47.
28. Excludes equity issues and investment company shares. Includes line 20.
30. Foreign deposits at commercial banks plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
31. Demand deposits and note balances at commercial banks.
32. Excludes net investment of these reserves in corporate equities.
33. Mainly retained earnings and net miscellaneous liabilities.
34. Line 14 less line 21 plus line 28.
35-39. Lines 15-19 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 39 includes mortgages.
41. Mainly an offset to line 10.
48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47.
49. Line 2/line 1 and 13.
50. Line 21Aine 14.
51. Sum of lines 11 and 30.
52-54. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types inflowsand in amounts
outstanding may be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
A46
Domestic Nonfinancial Statistics • January 1989
2.10 NONFINANCIAL BUSINESS ACTIVITY
Selected Measures1
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1988
Measure
1985
1986
1987
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct/
Industrial production
123.7
125.1
129.8
134.4
134.7
135.4
136.1
136.5
138.0r
138.4
138.7
139.2
5
6
7
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
130.6
131.0
119.8
145.8
129.3
114.3
133.3
132.5
124.0
143.6
136.2
113.8
138.3
136.8
127.7
148.8
143.5
118.2
143.4
141.6
131.3
155.3
149.4
122.1
143.6
141.8
131.2
155.9
149.9
122.5
144.1
142.5
131.9
156.5
149.6
123.6
145.0
143.5
132.7
157.7
150.4
123.9
145.3
144.0
133.0
158.5
150.0
124.5
146.5R
145.0R
134.2'"
159.4'"
151.6R
126.4'
147.1
145.7
134.9
159.9
152.2
126.6
147.4
146.0
134.7
160.9
152.5
126.8
148.4
146.8
135.5
161.7
153.9
126.8
8
Industry groupings
Manufacturing
126.4
129.1
134.6
139.5
140.0
140.8
141.8
142.1
143.6R
143.9
144.5
145.2
80.1
80.3
79.7
78.6
81.1
80.5
82.6
82.3
82.7
82.4
82.9
82.9
83.3
83.0
83.3
83.2
84.0 R
84.4
83.9
84.3
84.1
84.3
84.3
84.2
1
2
i
4
Capacity utilization (percent)2
9
Manufacturing
10
Industrial materials industries
3
11
Construction contracts (1982 = 100)
150.0
158.0
161.0
159.0
154.0
144.0
157.0
165.0
156.0
155.0
151.0
153.0
12
13
14
15
Nonagricultural employment, total4
Goods-producing, total
Manufacturing, total
Manufacturing, production-worker....
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
<
Disposable personal income
Retail sales
118.3
102.1
97.8
92.6
125.0
206.9
198.8
172.8
205.8
189.6
120.7
100.9
96.3
91.2
129.0
219.7
210.7
177.4
218.9
199.5
124.1
101.8
96.8
92.1
133.4
235.1
226.2
183.8
232.7
209.3
127.0
103.8
98.5
93.7
136.7
245.5
237.3
190.2
244.8
216.7
127.3
104.1
98.6
93.7
137.1
248.0
238.9
193.6
247.0
220.3
127.7
104.5
98.8
93.9
137.4
248.8
240.9
192.8
243.3
219.4
127.9
104.6
99.0
94.1
137.7
250.2
242.3
193.8
249.5
221.2
128.6
105.1
99.3
94.4
138.4
251.6
244.2
195.4
251.2
222.5
128.9
105.4
99.5
94.6
138.7
253.3
246.7
196.6
253.0
223.7
129.1
105.3
99.4
94.4
139.0
254.5
247.4
196.8
254.1
222.4
129.4
105.3
99.3
94.3
139.5
255.9
248.8
198.1
255.5
223.8
129.8
105.7
99.8
94.9
139.9
260.3
252.7
202.3
260.3
225.9
107.6
104.7
109.6
103.2
113.6
105.4
116.0
106.1
116.5
106.3
117.1
107.0
117.5
107.5
118.0
107.9
118.5
108.5
119.0
108.8
119.8
108.6
120.2
109.3
lb
17
18
19
20
21
Prices7
22
23
C o n s u m e r (1982-84 = 100)
Producer finished goods (1982 = 100) . . .
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
(1977= 100) through D e c e m b e r 1984 in the FEDERAL RESERVE BULLETIN, vol. 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
A47
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1988
1985
Category
1986
1987
Mar.
Apr.
May
June
July
Aug/
Sept/
Oct.
HOUSEHOLD SURVEY DATA
180,440
182,822
185,010
186,361
186,478
186,600
186,755
186,911
187,033
187,178
187,333
2 Labor force (including Armed Forces)
3 Civilian labor force
117,695
115,461
120,078
117,834
122,122
119,865
123,153
120,903
123,569
121,323
123,204
120,978
123,665
121,472
123,866
121,684
124,234
122,031
124,140
121,924
124,231
122,012
4
5
103,971
3,179
106,434
3,163
109,232
3,208
110,899
3,204
111,485
3,228
111,160
3,035
111,933
3,085
112,014
3,046
112,029
3,151
112,158
3,169
112,255
3,266
8,312
7.2
62,745
8,237
7.0
62,744
7,425
6.2
62,888
6,801
5.6
63,208
6,610
5.4
62,909
6,783
5.6
63,396
6,455
5.3
63,090
6,625
5.4
63,045
6,851
5.6
62,799
6,596
5.4
63,038
6,491
5.3
63,102
97,519
99,525
102,310
105,020
105,281
105,489
106,057
106,271
106,425
106,729
107,052
19,260
927
4,673
5,238
23,073
5,955
22,000
16,394
18,965
777
4,816
5,255
23,683
6,283
23,053
16,693
19,065
721
4,998
5,385
24,381
6,549
24,196
17,015
19,405
733
5,192
5,530
25,111
6,651
25,078
17,320
19,460
737
5,238
5,543
25,182
6,650
25,163
17,308
19,490
739
5,237
5,556
25,245
6,656
25,216
17,350
19,544
740
5,308
5,582
25,353
6,679
25,472
17,379
19,593
740
5,330
5,598
25,435
6,684
25,561
17,330
19,560
739
5,340
5,605
25,471
6,689
25,662
17,359
19,548
733
5,361
5,621
25,504
6,690
25,724
17,548
19,647
731
5,356
5,636
25,574
6,700
25,869
17,539
1 Noninstitutional population'
1
Nonagricultural industries
Agriculture
Number
6
7
Rate (percent of civilian labor force) —
8 Not in labor force
ESTABLISHMENT SURVEY DATA
9 Nonagricultural payroll employment3
10
11
1?
13
14
IS
16
17
Manufacturing
Mining
Contract construction
Transportation and public utilities
Finance
Service
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
A48
Domestic Nonfinancial Statistics • January 1989
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1987
1988
Series
Q4
Q1
Q2
Q3
Output (1977 = 100)
Q4
Q1
Q2
Q3
Q4
Capacity (percent of 1977 output)
Q1
Utilization rate (percent)
1 Total industry
133.2
134.5
136.0
138.2
162.2
163.1
164.2
165.2
82.1
82.4
82.8
83.8
2 Mining..
3 Utilities.
104.3
112.3
102.5
114.7
103.3
111.7
104.8
114.9
128.4
139.4
127.7
139.8
127.0
140.1
126.2
140.4
81.2
80.6
80.3
82.0
81.5
79.9
82.4
82.0
4 Manufacturing.
138.1
139.6
141.6
167.7
168.9
170.2
171.5
82.3
82.7
83.2
84.0
5 Primary processing...
6 Advanced processing.
122.2
147.6
123.0
149.7
123.9
152.3
125.7
154.5
140.6
184.1
141.6
185.6
142.7
186.7
143.9
188.1
86.9
80.1
86.9
80.7
86.8
81.5
87.5
82.4
7 Materials
122.5
122.5
124.0
126.6
147.8
148.5
149.3
150.1
82.9
82.5
83.0
84.3
8 Durable goods
9 Metal materials
10 Nondurable goods
11 Textile, paper, and chemical
12
Paper
13
Chemical
130.3
91.4
130.1
133.0
145.1
135.5
131.5
86.2
129.4
131.6
145.7
133.5
134.2
88.1
130.5
132.6
145.9
135.7
136.9
92.4
132.4
135.1
164.7
108.9
145.6
145.4
146.2
152.0
165.7
108.8
146.8
146.7
147.6
153.5
166.8
109.1
148.3
148.5
149.2
155.4
167.9
109.4
149.8
150.2
79.1
84.0
89.3
91.5
99.2
89.1
79.4
79.2
88.1
89.7
98.7
87.0
80.4
80.8
87.9
89.2
97.8
87.3
81.7
84.8
88.7
90.3
98.6
88.9
14 Energy materials.
102.1
100.9
100.4
103.5
119.9
119.7
119.4
119.1
85.2
84.3
84.2
86.2
June
July'
Aug.
Previous cycle2
High
Low
Latest cycle
High
Low
1988
Oct.
Feb.
Mar.
Apr.
May
Capacity utilization rate (percent)
15 Total industry
88.6
72.1
86.9
69.5
81.9
82.4
82.4
82.7
82.9
83.0
83.7
83.8
83.8
84.0
16 Mining
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
80.6
80.5
79.5
82.6
80.6
81.0
82.3
79.3
80.8
79.7
8i. r
80.8r
82.5
81.5
82.4
83.9
82.4
80.6
81.8
80.8
87.7
69.9
86.5
68.0
82.0
82.6
82.7
82.9
83.3
83.3
84.0
83.9
84.1
84.3
91.9
86.0
68.3
71.1
89.1
85.1
65.0
69.5
86.2
80.1
86.6
80.7
86.9
80.7
86.9
81.2
87.0
81.7
86.6
81.7
87.8
82.2
87.3
82.3
87.3
82.5
87.5
82.8
17 Utilities
18 Manufacturing
19 Primary processing
20 Advanced processing..
92.0
70.5
89.1
68.5
82.1
82.3
82.4
82.9
83.0
83.2
84.4
84.3
84.3
84.2
21 Materials
91.8
99.2
64.4
67.1
89.8
93.6
60.9
45.7
78.3
82.4
79.3
79.3
79.1
78.3
79.7
79.3
80.8
82.1
80.7
80.8
81.7
84.9
81.3
84.5
82.0
86.0
81.9
84.0
91.1
66.7
88.1
70.7
88.2
87.3
88.3
88.7
87.7
87.4r
88.9
88.8
88.5
88.4
92.8
98.4
92.5
64.8
70.6
64.4
89.4
97.3
87.9
68.8
79.9
63.5
90.4
97.4
88.0
88.5
97.8
85.7
89.9
97.8
87.5
90.1
98.1
88.0
88.8
98.1
86.9
88.9
97. l r
87.0
90.4
100.0
88.8
90.4
98.2
89.3
89.9
97.7
88.6
89.8
94.6
86.9
94.0
82.3
84.9
84.1
84.1
84.5
83.3
84.4
86.2
86.9
85.6
85.1
22 Durable goods
23
Metal materials
24 Nondurable goods
25
Textile, paper, and
chemical
26
Paper
27
Chemical
28 Energy
materials
1. These data also appear in the Board's G.3 (402) release. For address, see
inside front cover.
2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.
Selected Measures
2.13 INDUSTRIAL PRODUCTION
A49
Indexes and Gross Value1
Monthly data are seasonally adjusted
1977
Groups
portion
1987
avg.
1988
1987
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
Sept." Oct/
136.5
138.0
138.4
138.7
139.2
147.4
146.0
134.7
160.9
152.5
126.8
148.4
146.8
135.5
161.7
153.9
126.8
Index (1977 = 100)
MAJOR MARKET
1 Total index
100.00
129.8
132.5
133.2
133.9
134.4
134.4
134.7
135.4
136.1
57.72
44.77
25.52
19.25
12.94
42.28
138.3
136.8
127.7
148.8
143.4
118.2
140.9
139.3
129.0
153.0
146.1
121.2
141.0
139.2
129.4
152.2
147.3
122.5
141.3
139.8
129.8
153.1
146.5
123.7
142.7
141.1
131.2
154.3
148.1
123.0
143.4
141.6
131.3
155.3
149.4
122.1
143.6
141.8
131.2
155.9
149.9
122.5
144.1
142.5
131.9
156.5
149.6
123.6
145.0
143.5
132.7
157.7
150.4
123.9
145.3
144.0
133.0
158.5
150.0
124.5
146.5
145.0
134.2
159.4
151.6
126.4
147.1
145.7
134.9
159.9
152.2
126.6
6.89
2.98
1.79
1.16
.63
1.19
3.91
1.24
1.19
.96
1.71
120.2
118.5
115.1
90.7
160.5
123.5
121.6
141.5
142.1
130.7
102.0
124.3
124.3
122.2
94.7
173.2
127.5
124.3
145.7
146.1
132.9
104.1
123.9
121.3
118.7
91.9
168.5
125.2
125.8
150.1
150.5
133.5
103.9
120.3
115.4
110.2
83.7
159.5
123.3
123.9
142.7
142.6
133.9
104.8
121.7
118.7
112.8
77.5
178.3
127.7
124.0
142.2
140.9
134.2
105.2
120.6
117.6
111.8
79.5
171.6
126.4
122.8
140.6
141.4
132.3
104.7
120.4
120.6
116.4
86.3
172.2
126.9
120.2
132.8
132.7
133.1
103.9
123.3
121.9
118.0
91.0
168.2
127.8
124.3
143.2
142.2
133.1
105.7
125.6
127.1
126.9
98.9
178.9
127.4
124.4
142.2
143.0
135.8
105.2
125.3
127.1
125.3
99.0
174.1
129.7
123.9
138.0
137.1
135.9
107.0
125.3
124.4
120.8
93.8
170.8
129.9
125.9
143.3
143.8
136.6
107.4
125.4
123.8
122.8
92.6
179.0
125.3
126.6
146.5
146.1
136.0
107.0
125.6
126.1
124.6
97.4
175.3
128.3
125.1
143.3
142.1
134.8
106.6
127.0
128.2
127.9
100.7
19 Nondurable consumer goods
20 Consumer staples
71
Consumer foods and tobacco
22
Nonfood staples
71
Consumer chemical products
24
Consumer paper products
25
Consumer energy
76
Consumer fuel
27
Residential utilities
18.63
15.29
7.80
7.49
2.75
1.88
2.86
1.44
1.42
130.5
137.3
136.2
138.5
162.9
151.8
106.3
93.1
119.8
130.8
137.4
137.5
137.2
160.0
151.8
105.8
92.4
119.4
131.5
138.3
137.3
139.4
163.5
152.8
107.4
93.2
121.8
133.3
140.7
139.2
142.2
167.7
157.0
108.0
95.4
120.7
134.7
142.3
140.3
144.3
170.7
157.1
110.6
95.4
126.0
135.3
142.9
140.8
145.0
171.7
157.5
111.3
97.0
125.8
135.1
142.5
139.4
145.7
172.7
159.1
111.0
97.9
124.5
135.1
142.5
138.3
146.8
175.6
161.4
109.6
98.9
120.5
135.4
143.1
139.2
147.0
177.9
162.4
107.3
94.3
120.6
135.8
143.5
139.3
147.9
179.5
162.8
107.7
93.0
122.6
137.5
145.3
141.1
149.6
181.8
164.0
109.3
94.6
124.4
138.4
146.5
141.3
151.9
184.0
164.3
113.0
95.5
130.9
138.0
146.0
141.4
150.8
185.4
165.3
108.1
93.7
138.6
146.9
151.7
Equipment
78 Business and defense equipment
29 Business equipment
30
Construction, mining, and farm
31
Manufacturing
37
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
153.6
144.5
62.2
117.9
82.6
226.5
108.4
188.9
157.2
148.7
66.5
120.5
83.0
232.4
112.5
190.3
156.6
148.3
66.3
120.6
83.1
232.1
111.2
188.7
157.8
149.8
67.4
122.2
84.2
235.5
109.1
188.9
159.2
151.2
67.1
125.4
86.2
238.0
106.5
190.6
160.3
152.4
67.6
124.9
88.3
240.3
108.2
191.0
160.8
153.3
68.3
127.0
87.8
239.9
111.1
189.9
161.4
154.6
70.8
127.7
87.0
241.5
112.3
187.9
162.7
156.9
71.8
128.3
87.4
245.7
115.3
185.5
163.5
158.1
72.4
130.3
88.3
247.1
115.7
184.6
164.6
159.3
73.6
132.4
89.8
248.2
115.9
184.9
165.1
160.1
72.5
134.5
91.3
249.1
115.5
184.7
166.2
161.4
73.4
137.1
93.0
249.7
116.9
184.7
167.2
162.7
74.2
139.5
94.0
249.9
119.5
184.6
5.95
6.99
5.67
1.31
131.5
153.5
158.6
131.1
133.3
157.1
162.3
134.6
134.2
158.4
164.3
132.9
133.8
157.4
163.3
131.8
136.8
157.8
163.1
135.0
137.7
159.4
165.0
135.3
137.3
160.7
166.6
135.3
137.6
159.9
165.7
134.6
138.8
160.3
165.5
137.8
137.6
160.6
165.9
137.5
138.4
162.8
168.6
137.6
138.1
164.2
170.3
137.7
138.6
164.4
171.0
136.0
140.4
20.50
4.92
5.94
9.64
4.64
125.0
100.9
159.0
116.4
86.7
128.7
102.3
162.2
121.6
95.3
130.2
103.1
163.2
123.6
96.5
132.0
104.6
165.3
125.5
100.0
131.8
104.7
167.4
123.7
92.9
131.4
104.4
167.6
123.0
91.4
131.3
103.5
167.3
123.4
90.5
132.7
106.2
168.9
124.0
91.6
134.8
110.0
170.8
125.3
94.8
134.9
110.3
171.6
124.8
93.7
136.8
110.1
174.1
127.5
98.4
136.5
109.6
173.6
127.4
97.5
138.0
110.3
174.8
129.5
100.2
138.2
111.0
175.5
129.1
97.7
2 Products
Final products
4
Consumer goods
Equipment
6 Intermediate products
7 Materials
Consumer goods
8 Durable consumer goods
9 Automotive products
10
Autos and trucks
11
Autos, consumer
17
Trucks, consumer
N
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
Durable consumer parts
42 Equipment parts
43 Durable materials n.e.c
44
Basic metal materials
41
128.7
126.1
145.7
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 . . .
10.09 125.8
128.2
129.6
132.5
129.9
128.1
130.1
131.1
130.1
130.1
132.8
133.0
133.1
133.3
127.6
111.7
141.0
128.4
120.4
131.0
113.0
142.0
133.4
119.7
132.3
112.7
144.4
134.7
121.7
135.6
113.6
149.0
138.4
123.3
132.7
112.6
148.0
134.2
121.8
129.9
110.2
144.4
131.5
123.0
132.4
112.7
144.8
134.8
123.2
133.3
111.9
145.8
136.2
124.6
131.9
107.5
146.4
135.1
125.1
132.1
107.5
145.4
135.8
124.2
135.3
108.5
150.3
139.2
125.6
135.9
110.0
148.0
140.5
124.7
135.6
110.8
147.8
139.9
136.0
51 Energy materials
52 Primary energy
53 Converted fuel materials
11.69 99.8
7.57 105.0
4.12 90.3
101.8
106.8
92.7
102.8
108.4
92.6
101.7
107.7
90.7
101.4
107.3
90.6
100.6
104.8
93.0
100.6
105.0
92.6
101.0
106.7
90.5
99.5
104.0
91.2
101.3
105.6
93.5
102.7
106.8
95.3
103.5
106.6
97.9
101.9
106.4
93.7
101.2
7.53
1.52
1.55
4.46
2.57
A50
D o m e s t i c N o n f i n a n c i a l Statistics •
January 1989
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued
Groups
SIC
code
1977
proportion
1987
1988
1987
avg.
Oct.
Nov.
Dec
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug.
Sept. p
Oct,
Index (1977 = 100)
MAJOR INDUSTRY
1 Mining and utilities.
2 Mining
3 Utilities
4 Manufacturing
Nondurable
5
6
Durable
15.79
9.83
5.96
84.21
35.11
49.10
104.3
100.7
110.3
134.6
136.7
133.1
106.8
103.6
112.1
137.3
138.1
136.8
107.9
104.6
113.2
137.9
139.6
136.7
107.3
104.6
111.7
138.9
141.3
137.3
107.8
103.3
115.2
139.4
141.4
137.9
106.8
101.5
115.6
139.5
141.1
138.4
106.7
102.7
113.3
140.0
141.7
138.8
107.1
104.7
111.0
140.8
142.3
139.7
106.0
102.6
111.6
141.8
142.1
141.5
106.8
103.0
113.2
142.1
142.6
141.7
108.1
104.3
114.4
143.6
144.6
142.9
109.2
104.0
117.8
143.9
145.0
143.1
107.4
103.8
113.3
144.5
145.3
144.0
106.9
102.8
113.7
145.2
145.7
144.8
142.2
92.1
140.1
142.2
7
8
9
10
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals .
10
11.12
13
14
.50
1.60
7.07
.66
77.5
131.8
92.7
128.2
85.6
140.3
94.1
131.0
90.4
142.9
94.2
134.1
96.5
140.6
94.1
135.6
91.5
140.2
93.1
132.1
83.9
133.7
92.4
134.3
84.9
129.1
94.8
136.9
86.9
136.0
95.5
141.2
86.0
127.8
94.6
140.1
82.2
126.9
95.8
137.4
94.0
141.5
93.3
140.2
96.5
137.2
93.6
141.2
11
12
13
14
15
Nondurable manufactures
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
20
21
22
23
26
7.%
.62
2.29
2.79
3.15
137.7
103.4
115.8
107.4
144.4
138.0
103.7
116.8
108.0
146.0
138.9
106.5
117.3
109.4
148.3
140.1
110.5
118.2
107.8
150.6
141.2
105.8
116.2
108.7
149.9
141.9
107.0
115.3
108.5
148.0
141.1
107.2
117.0
108.7
149.1
140.3
107.2
117.3
109.2
149.2
141.0
107.2
114.6
108.6
149.5
141.3
104.5
114.3
109.3
148.6
143.3
100.6
117.1
109.4
152.3
143.1
105.1
116.3
109.0
150.8
150.3
16
17
18
19
20
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastic products.
Leather and products
27
28
29
30
31
4.54
8.05
2.40
2.80
.53
172.0
140.1
93.5
163.6
60.0
175.2
141.5
94.6
166.7
59.6
175.7
144.4
93.3
169.9
60.7
176.9
147.9
96.1
170.6
57.5
177.5
147.9
96.3
170.5
58.3
178.7
145.4
95.9
172.3
59.7
180.4
146.4
98.4
172.2
59.5
181.8
148.9
98.5
172.3
58.0
180.7
149.1
95.2
173.4
57.1
182.3
150.5
94.1
174.4
58.9
184.9
153.4
95.0
175.4
59.1
186.1
154.7
95.9
175.0
59.4
187.4
155.2
95.4
176.6
60.2
24
25
32
2.30
1.27
2.72
130.3
152.8
119.1
129.8
156.0
118.9
134.0
158.5
120.5
133.6
159.4
120.1
136.3
158.0
120.4
139.0
158.3
121.6
137.8
159.4
122.5
138.0
159.2
121.4
139.8
160.5
121.5
136.4
161.2
123.4
136.6
162.9
122.2
133.5
163.5
122.3
133.0
163.5
122.6
33
331.2
34
35
36
5.33
3.49
6.46
9.54
7.15
81.5
70.8
111.0
152.7
172.3
90.6
82.0
113.5
158.0
175.5
90.2
79.7
113.6
157.2
175.6
90.6
81.9
115.8
161.0
175.9
86.5
77.8
117.1
162.9
177.4
86.4
77.4
117.6
163.6
177.8
85.1
74.2
118.8
164.6
176.6
85.3
74.5
118.8
167.2
178.7
89.2
78.6
119.8
170.3
179.1
87.5
74.2
120.4
171.2
179.5
91.5
80.2
121.7
173.1
181.5
91.1
79.1
121.8
174.1
182.5
93.1
81.3
122.6
176.0
182.9
123.2
177.7
183.3
37
371
9.13
5.25
129.2
111.8
132.0
116.0
130.4
114.0
128.1
110.2
128.6
109.7
128.4
109.3
130.0
113.0
130.4
114.8
133.1
119.6
132.8
119.1
131.9
116.6
131.7
117.3
132.3
118.6
134.1
121.2
72-6.9
38
39
3.87
2.66
1.46
152.8
143.9
102.6
153.7
146.7
104.6
152.7
147.8
104.5
152.4
145.5
105.6
154.2
148.2
105.0
154.5
149.2
104.4
153.0
149.7
105.1
151.5
150.5
105.9
151.5
151.3
106.0
151.4
153.0
107.6
152.7
156.4
107.8
151.1
156.4
108.0
151.0
157.0
108.0
151.5
158.0
4.17
126.6
126.8
127.5
125.6
130.3
130.7
129.0
127.6
129.7
132.1
134.6
138.8
132.1
Durable manufactures
21 Lumber and products
22 Furniture and fixtures
23 Clay, glass, and stone products...
24
25
26
27
28
Primary metals
Iron and steel
Fabricated metal products
Nonelectrical machinery..
Electrical machinery
29 Transportation equipment
30 Motor vehicles and parts
31 Aerospace and miscellaneous
transportation equipment
32 Instruments
33 Miscellaneous manufactures
Utilities
34 Electric.
143.0
116.6
187.5
96.9
91.6
Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKET
35 Products, total.
517.5 1,735.8 1,774.1 1,772.4 1,778.8 1,790.6 1,797.5 1,807.5 1,812.2 1,820.1 1,813.9 1,822.3 1,827.1 1,830.0 1,851.9
36 Final
37 Consumer goods.
38 Equipment
39 Intermediate
405.7 1,333.8 1,360.9 1,359.9 1,359.4 1,375.5 1,381.1 1,385.9 1,393.9 1,397.1 1,394.3 1,398.9 1,403.1 1,405.7 1,421.8
272.7
866.0 876.6 879.8 881.2 893.6 893.7 893.2 899.1 898.9 893.6 895.6 899.8 897.4 908.7
133.0
467.8 484.4 480.1 478.2 481.9 487.3 492.7 494.7 498.3 500.7 503.2 503.3 508.3 513.1
111.9
402.0 413.2 412.5 419.4 415.1 416.5 421.6 418.4 423.0 419.6 423.4 423.9 424.5 430.1
1. These data also appear in the Board's G.12.3 (414) release. For address, see
inside front cover.
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
(1977= 100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71
(July 1985), pp. 487-501. The revised indexes for January through June 1985 were
shown in the September BULLETIN.
Selected Measures
A51
2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1987
1985
Item
1986
1988
1987
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July'
Aug/
Sept.
Private residential real estate activity (thousands of units)
NEW UNITS
1 Permits authorized
2 1-family
3 2-or-more-family
1,733
957
777
1,750
1,071
679
1,535
1,024
511
1,372
957
415
1,248
918
330
1,429
1,003
426
1,476
1,030
446
1,449
960
489
1,436
982
454
1,493
1,002
491
1,420
984
436
1,464
1,022
442
1,394
974
420
4 Started
5 1-family
6 2-or-more-family
1,742
1,072
669
1,805
1,179
626
1,621
1,146
474
1,399
1,035
364
1,382
1,016
366
1,519
1,102
417
1,529
1,172
357
1,584
1,093
491
1,393
1,004
389
1,465
1,092
373
1,477
1,068
409
1,461
1,078
383
1,449
1,042
407
7 Under construction, end of period1 .
8 1-family
9 2-or-more-family
1,063
539
524
1,074
583
490
987
591
397
1,016
618
398
1,008
614
394
983
596
387
999
617
382
999
622
377
984
610
374
982
609
373
974
606
368
%3
602
361
954
597
357
1,703
1,072
631
1,756
1,120
637
1,669
1,123
546
1,624
1,104
520
1,550
1,098
452
1,452
1,043
409
1,598
1,094
504
1,665
1,059
606
1,450
1,090
360
1,518
1,106
412
1,529
1,077
452
1,541
1,076
465
1,523
1,078
445
13 Mobile homes shipped
284
244
233
227
200
208
212
213
216
230
206
223
228
Merchant builder activity in
1-family units
14 Number sold
15 Number for sale, end of period
688
350
748
361
672
370
586
365
579
368
648
359
664
372
681
367
681
370
718r
367
700
364
715
363
659
364
84.3
92.2
104.7
111.8
119.0
110.9
108.9
111.0
110.0
111.5r
120.0
110.0
118.9
101.0
112.2
127.9
136.2
144.4
137.6
133.2
135.6
133.5
136.5r
142.5
140.0
146.3
3,217
3,566
3,530
3,330
3,170
3,250
3,330
3,520
3,590
3,820
3,630
3,710
3,670
75.4
90.6
80.3
98.3
85.6
106.2
85.4
107.1
87.4
108.7
88.1
110.4
87.9
110.7
87.3
108.7
88.8
111.9
90.2
115.4
90.7
1(4.8
91.4
115.1
88.2
112.3
10 Completed
11 1-family
12 2-or-more-family
2
16
17
Price (thousands of dollars)
Median
Units sold
Units sold
EXISTING UNITS (1-family)
18 Number sold
Price of units sold
(thousands of dollars)2
19 Median
20 Average
Value of new construction3 millions of dollars)
CONSTRUCTION
21 Total put in place
355,735 386,093 398,848 410,870 395,264 392,456 403,555 396,238 398,473 395,714 401,777 401,113 403,370
22 Private
23 Residential
24 Nonresidential, total
Buildings
25
Industrial
26
Commercial
Other
27
28
Public utilities and other
291,665 314,651 323,819 331,641 321,550 317,754 324,257 318,515 320,194 317,708 322,497 324,352 325,211
158,475 187,147 194,772 195,822 195,168 192,097 195,554 192,026 190,374 188,071 192,777 193,912 195,277
133,190 127,504 129,047 135,819 126,382 125,657 128,703 126,489 129,820 129,637 129,720 130,440 129,934
29 Public
30 Military
31 Highway
32 Conservation and development...
33 Other
15,769
59,629
12,619
45,173
13,747
56,762
13,216
43,779
13,707
55,448
15,464
44,428
14,130
55,831
17,708
48,150
13,480
53,555
16,954
42,393
13,489
53,571
17,101
41,496
14,546
54,843
17,301
42,013
13,849
56,169
16,382
40,089
13,907
57,447
16,847
41,619
13,676
56,585
16,757
42,619
13,183
56,658
16,148
43,731
12,931
56,429
16,601
44,479
13,043
55,622
16,860
44,409
64,070
3,235
21,540
4,777
34,518
71,437
3,868
22,681
4,646
40,242
75,028
4,327
22,758
5,162
42,781
79,228
4,879
25,274
5,759
43,316
73,715
4,172
24,808
4,038
40,697
74,702
3,280
25,348
4,535
41,539
79,298
4,216
26,963
4,899
43,220
77,723
3,872
26,912
4,226
42,713
78,278
3,547
25,254
4,460
45,017
78,007
4,844
24,822
4,5%
43,745
79,280
4,182
27,548
4,884
42,666
76,761
4,043
23,628
4,853
44,237
78,158
4,205
23,579
4,972
45,402
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
A52
Domestic Nonfinancial Statistics • January 1989
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item
1987
Oct.
Change from 3 months earlier
(at annual rate)
1987
1988
Oct.
Change from 1 month earlier
1988
Index
level
Oct.
1988'
1988
Dec.
Mar.
June'
Sept.r
Juner
July'
Aug.
Sept.
Oct.
CONSUMER PRICES 2
1 All items
(1982-84=100)
2
3 Energy items
4 All items less food and energy
5 Commodities
6 Services
4.5
4.2
3.2
4.2
4.5
4.8
.3
.4
.4
.3
.4
120.2
3.6
8.1
4.3
3.8
4.6
5.2
.1
4.5
3.8
4.8
2.8
-3.9
4.4
2.5
5.0
1.4
-4.9
5.4
4.7
5.9
7.1
4.2
4.3
3.9
4.5
9.9
2.7
4.0
3.1
4.1
.6
-.2
.4
.2
.5
1.0
.3
.3
.6
.9
.2
.3
-.3
.4
.5
.8
-.6
.4
.8
.1
.2
.1
.5
.7
.5
120.3
89.9
125.5
118.0
129.9
2.5
.3
13.7
2.4
1.4
2.9
4.5
-5.9
4.1
2.9
-1.9
-5.7
-9.6
1.7
-.7
2.7
6.0
-18.5
5.7
3.2
3.8
8.2
.7
2.4
2.5
6.5
10.0
-.7
6.6
6.5
.2
.9
-2.8
.3
.2
.7
.7
1.0
.9
.4
.6
.4
2.2
.3
.4
.4
1.2
-3.3
.4
.8
.0
-.1
.3
.0
-.3
109.3
114.6
58.7
120.3
115.8
5.0
4.3
4.9
7.1
4.3
7.2
4.3
8.2
7.8
6.9
4.9
7.2
.6
.4
.5
.7
.4
.4
.4
.6
.1
.5
108.3
117.4
1.3
13.0
24.3
15.9
-15.8
5.5
-4.8
-15.2
18.0
17.7
-24.1
15.9
31.0
7.8
-6.5
23.0
-26.1
8.5
4.0
-2.0
.2
1.4
-4.4
1.8
2.2
.1
.9
1.6
-3.1
-.6
1.4
-2.2
.2
111.4
63.5
133.3
PRODUCER PRICES
(1982=100)
1 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
12 Intermediate materials3
13 Excluding energy
14
15
16
Crude materials
Foods
Energy
Other
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
Selected Measures
A53
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1987
Account
1985
1986
1988
1987
Q3
Q4
Ql
Q2
Q3'
GROSS NATIONAL PRODUCT
1 Total
4,014.9
4,240.3
4,526.7
4,568.0
4,662.8
4,724.5
4,823.8
4,909.2
By source
2 Personal consumption expenditures
3
Durable goods
4 Nondurable goods
5 Services
2,629.0
372.2
911.2
1,345.6
2,807.5
406.5
943.6
1,457.3
3,012.1
421.9
997.9
1,592.3
3,058.2
441.4
1,006.6
1,610.2
3,076.3
422.0
1,012.4
1,641.9
3,128.1
437.8
1,016.2
1,674.1
3,194.6
449.8
1,036.6
1,708.2
3,261.5
451.8
1,061.9
1,747.7
643.1
631.8
442.9
153.2
289.7
188.8
665.9
650.4
433.9
138.5
295.4
216.6
712.9
673.7
446.8
139.5
307.3
226.9
702.8
688.3
462.1
143.0
319.1
226.2
764.9
692.9
464.1
147.7
316.3
228.8
763.4
698.1
471.5
140.1
331.3
226.6
758.1
714.4
487.8
142.3
345.5
226.5
771.4
723.0
494.7
143.9
350.7
228.3
11.3
14.6
15.5
17.4
39.2
40.7
14.5
17.8
72.0
72.8
65.3
49.4
43.7
33.1
48.4
39.5
14 Net exports of goods and services
15 Exports
16 Imports
-78.0
370.9
448.9
-104.4
378.4
482.8
-123.0
428.0
551.1
-125.2
440.4
565.6
-125.7
459.7
585.4
-112.1
487.8
599.9
-90.4
507.1
597.5
-82.4
531.5
613.9
17 Government purchases of goods and services
18 Federal
19 State and local
820.8
355.2
465.6
871.2
366.2
505.0
924.7
382.0
542.8
932.2
386.3
546.0
947.3
391.4
555.9
945.2
377.7
567.5
961.6
382.2
579.4
958.7
370.9
587.8
4,003.6
1,641.2
706.5
934.6
1,968.3
405.4
4,224.7
1,697.9
725.3
972.6
2,118.3
424.0
4,487.5
1,792.5
776.3
1,016.3
2,295.7
438.4
4,553.5
1,812.9
792.2
1,020.7
2,314.4
440.6
4,590.7
1,849.4
808.7
1,040.7
2,363.9
449.5
4,659.2
1,879.4
819.3
1,060.1
2,405.2
439.9
4,780.1
1,928.0
849.5
1,078.5
2,451.5
444.3
4,856.6
1,964.8
879.3
1,085.5
2,497.6
446.8
11.3
6.4
4.9
15.5
4.2
11.3
39.2
26.6
12.6
14.5
2.9
11.6
72.0
50.5
21.6
65.3
26.6
38.6
43.7
17.8
25.9
48.4
42.6
5.8
3,618.7
3,721.7
3,847.0
3,865.3
3,923.0
3,956.1
3,985.2
4,010.9
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
Residential structures
11
12
13
Change in business inventories
Nonfarm
By major type of product
70 Final sales, total
71 Goods
Durable
77
73
Nondurable
74 Services
25 Structures
26 Change in business inventories
77 Durable goods
28 Nondurable goods
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
30
3,234.0
3,437.1
3,678.7
3,708.0
3,802.0
3,850.8
3,928.8
3,996.2
31 Compensation of employees
37 Wages and salaries
33
Government and government enterprises
Other
34
35 Supplement to wages and salaries
Employer contributions for social insurance
36
Other labor income
37
2,367.5
1,975.2
372.0
1,603.4
392.4
204.8
187.6
2,507.1
2,094.0
393.7
1,700.3
413.1
217.0
196.1
2,683.4
2,248.4
420.1
1,828.3
435.0
227.1
207.9
2,702.8
2,265.3
423.2
1,842.1
437.5
228.2
209.3
2,769.9
2,324.8
429.2
1,895.6
445.1
232.7
212.4
2,816.4
2,358.7
437.1
1,921.6
457.7
243.1
214.6
2,874.0
2,410.0
442.9
1,967.1
464.0
247.5
216.5
2,932.5
2,461.4
449.1
2,012.4
471.1
251.6
219.5
255.9
225.6
30.2
286.7
250.3
36.4
312.9
270.0
43.0
306.8
271.5
35.2
326.0
279.0
47.0
323.9
279.2
44.7
328.8
285.3
43.4
322.1
291.7
30.4
38 Proprietors' income1
39 Business and professional1
40 Farm1
41 Rental income of persons2
9.2
12.4
18.4
18.1
20.5
20.5
19.1
20.1
47 Corporate profits'
43 Profits before tax3
44 Inventory valuation adjustment
45 Capital consumption adjustment
282.3
224.3
-1.7
59.7
298.9
236.4
8.3
54.2
310.4
276.7
-18.0
51.7
322.0
289.4
-19.5
52.1
316.1
281.9
-18.2
52.4
316.2
286.2
-19.4
49.4
326.5
305.9
-27.4
48.0
323.7
307.7
-29.0
45.1
46 Net interest
319.0
331.9
353.6
358.3
369.5
373.9
380.6
397.7
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
A54
Domestic Nonfinancial Statistics • January 1989
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1988
1987
Account
1985
1986
1987
Q3
Q4
Q1
Q2
Q3r
PERSONAL INCOME AND SAVING
1 Total personal income
3,325.3
3,531.1
3,780.0
3,801.0
3,906.8
3,951.4
4,022.4
4,092.3
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6
Service industries
7 Government and government enterprises
1,975.4
608.9
460.9
473.2
521.3
372.0
2,094.0
625.5
473.1
498.9
575.9
393.7
2,248.4
649.8
490.3
531.7
646.8
420.1
2,265.1
652.8
492.6
536.8
652.4
423.0
2,325.1
665.5
501.3
547.3
682.8
429.5
2,358.7
676.0
509.6
558.2
687.4
437.1
2,410.0
689.1
517.4
572.1
705.9
442.9
2,461.4
701.3
525.9
585.4
725.7
449.1
187.6
255.9
225.6
30.2
9.2
78.7
478.0
489.8
253.4
196.1
286.7
250.3
36.4
12.4
82.8
499.1
521.1
269.3
207.9
312.9
270.0
43.0
18.4
88.6
527.0
548.8
282.9
209.3
306.8
271.5
35.2
18.1
89.9
533.0
551.7
284.5
212.4
326.0
279.0
47.0
20.5
91.9
550.0
556.8
286.5
214.6
323.9
279.2
44.7
20.5
93.5
554.2
576.3
298.1
216.5
328.8
285.3
43.4
19.1
95.0
563.7
582.8
300.4
219.5
322.1
291.7
30.4
20.1
97.3
581.3
587.3
303.1
149.3
161.1
172.0
172.7
175.9
190.2
193.5
196.7
4,022.4
4,092.3
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income
Business
and professional
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
19
LESS: Personal tax and nontax payments
3,325.3
3,531.1
3,780.0
3,801.0
3,906.8
3,951.4
486.6
511.4
570.3
576.2
591.0
575.8
601.0
586.4
3,506.0
20 EQUALS: Disposable personal income
2,838.7
3,019.6
3,209.7
3,224.9
3,315.8
3,375.6
3,421.5
21
2,713.3
2,898.0
3,105.5
3,152.3
3,171.8
3,225.7
3,293.6
3,362.4
149.9
127.8
143.6
LESS: Personal outlays
125.4
121.7
104.2
72.6
144.0
15,120.6
9,839.4
10,625.0
4.4
15,401.2
10,160.1
10,929.0
4.0
15,770.0
10,334.3
11,012.0
3.2
15,834.9
10,426.8
10,989.0
2.3
16,031.8
10,346.1
11,145.0
4.3
16,127.6
10,435.4
11,260.0
4.4
16,213.1
10,492.2
11,237.0
3.7
16,271.4
10,565.9
11,360.0
4.1
27 Gross saving
533.5
537.2
560.4
556.8
603.4
627.0
634.1
656.4
28
29
30
31
665.3
125.4
102.6
-1.7
681.6
121.7
104.1
8.3
665.3
104.2
81.1
-18.0
642.2
72.6
85.0
-19.5
714.1
144.0
80.5
-18.2
726.3
149.9
78.1
-19.4
711.2
127.8
80.1
-27.4
725.2
143.6
73.5
-29.0
268.6
168.7
282.4
173.5
297.5
182.5
299.7
184.9
303.7
185.8
309.8
188.5
313.3
189.9
317.2
190.9
-131.8
-196.9
65.1
-144.4
-205.6
61.2
-104.9
-157.8
52.9
-85.5
-138.3
52.9
-110.7
-160.4
49.7
-99.2
-155.1
55.8
-77.1
-133.3
56.2
-68.8
-124.8
55.9
528.7
523.6
552.3
541.7
597.0
612.0
629.0
647.6
643.1
-114.4
665.9
-142.4
712.9
-160.6
702.8
-161.1
764.9
-167.8
763.4
-151.3
758.1
-129.1
771.4
-123.8
-4.8
-13.6
-8.1
-15.1
-6.4
-15.0
-5.1
-8.8
22 EQUALS: Personal saving
MEMO
Per capita (1982 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
Gross private saving
Personal saving
Undistributed corporate profits1
Corporate inventory valuation adjustment
Capital consumption
32 Corporate
33 Noncorporate
34
35
36
allowances
Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS
A55
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1988
1987
Item credits or debits
Not seasonally adjusted . 2
Merchandise trade balance
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers .
U.S. government grants (excluding military)
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
1987
1986
1985
-115,102
-138,827
-153,964
-122,148
215,935
-338,083
-3,431
25,936
-449
-3,786
-11,223
— I44,547
223,969
-368,516
-4,372
23,143
2,257
-3,571
-11,738
-160,'280
249,570
-409,850
-2,369
20,374
1,755
-3,434
-10,011
Q2
Q3
Q4
Q1
Q2"
-40,852
-41,799
-39,552
59,864
-99,416
-179
1,692
13
-884
-2,241
-41,967
-47,330
-39,665
64,902
-104,567
-851
1,067
87
-855
-2,125
-33,523
-31,803
-41,192
68,013
-109,205
-1,261
12,539
479
-828
-3,545
-36,938
-32,179
-35,184
75,300
-110,484
-1,033
1,159
1,241
-882
-2,239
-33,336
-34,228
-29,937
79,665
-109,602
-865
-1,747
2,120
-787
-2,120
-828
-2,829
-2,000
1,162
-170
252
1,012
-814
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
-3,858
312
9,149
3,419
32
3,741
1,503
39
-897
908
-3,869
-246
1,500
-942
-509
2,070
7,588
-171
335
3,255
-210
407
-165
-205
722
3,225
155
446
901
180
17 Change in U.S. private assets abroad (increase, - ) .
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchase of foreign securities, net
21 U.S. direct investments abroad, net
-25,949
-1,323
923
-7,481
-18,068
-96,303
-59,975
-4,220
-4,297
-27,811
-86,298
-40,531
3,145
-4,456
-44,456
-26,127
-22,422
2,603
-25,576
-16,519
-215
-972
-7,870
-43,645
-23,460
1,248
-1,757
-19,676
5,903
17,108
-315
-4,467
-6,423
-12,497
-13,999
22 Change in foreign official assets in the United States
(increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligates
25
Other U.S. government liabilities*
26 Other U.S. liabilities reported by U.S. banks3
27
Other foreign official assets
-1,196
-838
-301
767
645
-1,469
35,507
34,364
-1,214
2,054
1,187
44,968
43,361
1,570
-2,824
3,901
-1,040
10,332
11,083
256
-1,309
615
-313
611
842
714
-287
-34
-624
20,047
19,243
24,670
27,701
5,832
5,793
192
-570
834
-417
131,096
41,045
-366
20,433
50,962
19,022
185,746
79,783
-2,906
3,809
70,969
34,091
166,521
87,778
2,150
-7,5%
42,213
41,976
40,327
17,961
1,570
-2,431
15,998
7,229
71,047
46,153
-116
-2,835
12,819
15,026
28 Change in foreign private assets in the United States
(increase, +)
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in the United States, net
34 Allocation of SDRs
35 Discrepancy
36 Owing to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment
0
0
0
0
0
0
662
108
-223
257
36,025
29,764
-1,000
4%
-4,977
11,742
0
-121
-123
-1,954
-833
1,395
-17,233
2,015
6,887
2,379
7,347
0
0
0
0
0
0
17,839
15,566
18,461
13,071
-2,615
-4,399
-4,658
16,342
3,138
4,282
3,747
18,461
15,686
259
13,204
535
17,839
0
0
69
-210
"i,61(j
56,507
28,839
'4,473
9,823
13,372
0
-15,717
-3,456
-12,261
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in the United States (increase, +)
excluding line 25
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
-3,858
312
9,149
3,419
3,741
1,503
39
-1,963
33,453
47,792
11,641
19,939
24,793
6,402
-6,709
-9,327
-9,956
-2,681
-1,723
-2,750
-1,375
-1,782
46
101
58
26
13
12
45
10
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-41.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
Business (Department of Commerce).
A56
3.11
International Statistics • January 1989
U.S. FOREIGN TRADE1
Millions of dollars; monthly data are not seasonally adjusted.
1988
Item
1985
1986
1987
Mar.
Apr.
May
June
July
Aug/
Sept.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
218,815
227,159
254,122
29,106
26,335
28,143
26,839
25,098
26,538
27,441
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
2
C.I.F. value
3
Customs value
352,463
345,276
382,295
365,438
424,442
406,241
38,633
37,030
36,528
35,027
37,657
36,147
40,158
38,590
37,084
35,583
39,370
37,741
37,939
36,454
-133,648
-132,129
-155,137
-138,279
-170,320
-152,119
-9,528
-7,924
-10,193
-8,692
-9,514
-8,004
-13,319
-11,751
-11,986
-10,485
-12,832
-11,203
-10,498
-9,013
4
5
Trade balance
C.I.F. value
Customs value
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1,1987 census data are released 45 days after the end of the month; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1988
Type
1985
1986
1987
Apr.
May
June
July
Aug.
Sept.
Oct."
1 Total
43,186
48,511
45,798
42,730
41,949
41,028
43,876
47,778
47,788
50,204
2 Gold stock, including Exchange
Stabilization Fund1
11,090
11,064
11,078
11,063
11,063
11,063
11,063
11,061
11,062
11,062
7,293
8,395
10,283
9,589
9,543
9,180
8,984
9,058
9,074
9,464
4 Reserve position
in International Monetary Fund2
11,947
11,730
11,349
10,803
10,431
9,992
9,773
9,642
9,637
10,075
5 Foreign currencies4
12,856
17,322
13,088
11,275
10,912
10,793
14,056
18,017
18,015
19,603
3 Special drawing rights2'3 .
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 holdiings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1988
Assets
1985
1986
1987
Apr.
1 Deposits
Assets held in custody
2 U.S. Treasury securities2
3 Earmarked gold
June
July
Aug.
Sept.
Oct."
480
287
244
215
297
381
269
230
338
301
121,004
14,245
155,835
14,048
195,126
13,919
224,725
13,719
226,341
13,654
223,127
13,662
223,296
13,666
221,715
13,658
221,119
13,653
226,533
13,637
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies.
May
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce.
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.
Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS
A57
Balance Sheet Data1
Millions of dollars, end of period
1988
Asset account
1985
1986
1987
Mar.
Apr.
May
June
July
Aug.
Sept.p
All foreign countries
1 Total, all currencies
7 Claims on United States
3 Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
458,012
456,628
518,618
502,398
488,939
492,844
487,677
488,283
487,895
490,582
119,706
87,201
13,057
19,448
315,676
91,399
102,960
23,478
97,839
114,563
83,492
13,685
17,386
312,955
96,281
105,237
23,706
87,731
138,034
105,845
16,416
15,773
342,520
122,155
108,859
21,832
89,674
135,504
99,109
14,663
21,732
328,163
108,972
106,771
21,748
90,672
139,176
102,957
13,332
22,887
314,348
103,090r
101,233
20,827
89,198'
141,790r
104,299r
14,625
22,866
315,302''
102,931
103,427'
20,991
87,953'
140,932
104,405
14,424
22,103
311,308'
106,722
100,669'
20,438
83,479'
147,662
109,929
15,954
21,779
305,556
103,646'
99,66C
19,276
82,974'
157,021
117,525
16,176
23,320
295,270
98,299
98,982
18,709
79,280
155,386
115,286
16,121
23,979
298,466
102,355
98,563
18,444
79,104
22,630
29,110
38,064
38,731
35,415
35,752
35,437'
35,065
35,604
36,730
12 Total payable in U.S. dollars
336,520
317,487
350,107
333,874
327,736
334,112
334,990
336,233
342,906
340,944
n Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
?0 Public borrowers
21 Nonbank foreigners
116,638
85,971
12,454
18,213
210,129
72,727
71,868
17,260
48,274
110,620
82,082
12,830
15,708
195,063
72,197
66,421
16,708
39,737
132,023
103,251
14,657
14,115
202,428
88,284
63,707
14,730
35,707
128,935
95,844
13,346
19,745
190,593
81,692
58,109
14,853
35,939
133,289
100,320
12,318
20,651
179,722
75,654
54,588
14,407
35,073
136,078r
101,578
13,60c
20,900
182,98C
76,136
57,102
14,342
35,40C
135,348
101,422
13,661
20,265
183,568
79,774
55,234
13,851
34,709
141,415
106,792
14,434
20,189
179,076
78,071'
54,189
13,247
33,569'
151,581
114,943
14,901
21,737
174,433
73,792
54,839
12,933
32,869
149,764
112,621
14,687
22,456
174,314
76,506
52,503
12,770
32,535
9,753
11,804
15,656
14,346
14,725
15,054
16,074
15,742
16,892
16,866
11 Other assets
22 Other assets
United Kingdom
23 Total, all currencies
148,599
140,917
158,695
155,657
152,592
156,184
151,835
151,017
149,646
147,329
74 Claims on United States
75 Parent bank
76 Other banks in United States
77 Nonbanks
78 Claims on foreigners
79 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
33,157
26,970
1,106
5,081
110,217
31,576
39,250
5,644
33,747
24,599
19,085
1,612
3,902
109,508
33,422
39,468
4,990
31,628
32,518
27,350
1,259
3,909
115,700
39,903
36,735
4,752
34,310
29,581
24,580
1,191
3,810
116,975
34,278
40,247
5,312
37,138
31,618
26,155
1,013
4,450
112,261
33,019
38,790
4,914
35,538
32,832
27,506
1,360
3,966
114,452
33,849
39,883
4,987
35,733
33,852
28,535
1,322
3,995
107,856
32,446
37,108
4,742
33,560
35,708
30,615
1,064
4,029
105,594
30,228
37,805
4,665
32,8%
36,307
30,767
1,197
4,343
103,527
29,656
38,259
4,543
31,069
32,048
26,661
1,238
4,149
105,824
31,758
38,848
4,250
30,968
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41 Banks
47 Public borrowers
43 Nonbank foreigners
44 Other assets
5,225
6,810
10,477
9,101
8,713
8,900
10,127
9,715
9,812
9,457
108,626
95,028
100,574
95,972
93,214
97,188
95,326
94,492
96,767
93,790
32,092
26,568
1,005
4,519
73,475
26,011
26,139
3,999
17,326
23,193
18,526
1,475
3,192
68,138
26,361
23,251
3,677
14,849
30,439
26,304
1,044
3,091
64,560
28,635
19,188
3,313
13,424
27,388
23,285
1,025
3,078
64,247
26,812
19,656
3,864
13,915
29,555
25,137
781
3,637
59,434
24,867
18,065
3,412
13,090
30,736
26,608
1,068
3,060
62,018
25,448
19,555
3,252
13,763
31,855
27,672
1,069
3,114
57,%9
23,843
17,477
3,188
13,461
33,795
29,706
870
3,219
55,832
22,549
18,025
3,133
12,125
34,535
29,837
1,039
3,659
57,037
22,465
19,165
3,105
12,302
30,116
25,692
910
3,514
58,474
24,472
19,066
3,022
11,914
3,059
3,697
5,575
4,337
4,225
4,434
5,502
4,865
5,195
5,200
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47 Parent bank
48 Other banks in United States
49 Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
57 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
142,055
142,592
160,321
153,254
152,930
156,353
159,718
160,516
165,771
164,313
74,864
50,553
11,204
13,107
63,882
19,042
28,192
6,458
10,190
78,048
54,575
11,156
12,317
60,005
17,2%
27,476
7,051
8,182
85,318
60,048
14,277
10,993
70,162
21,277
33,751
7,428
7,706
85,837
56,330
12,476
17,031
61,962
19,368
28,647
6,891
7,056
88,283
59,240
11,470
17,573
58,818
17,790
26,700
6,849
7,479
90,8%
60,419
12,489
17,988
59,374
18,463
27,019
6,955
6,937
88,116
58,579
12,236
17,301
65,855
24,745
27,650
6,835
6,625
92,308
61,397
13,863
17,048
62,508
22,797
26,120
6,457
7,134
99,090
67,034
13,907
18,149
60,822
20,789
26,866
6,185
6,982
99,541
66,607
13,878
19,056
57,887
20,320
24,545
6,219
6,803
3,309
4,539
4,841
5,455
5,829
6,083
5,747
5,700
5,859
6,885
136,813
151,434
145,050
145,398
148,545
152,219
152,685
157,975
156,409
136,794
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.
A58
International Statistics • January 1989
3.14—Continued
1988
Liability account
1985
1986
1987
Mar.
Apr.
May
June
July
Aug.
Sept."
All foreign countries
57 Total, all currencies
458,012
456,628
518,618
502,398
488,939
492,844
487,677
488,283
487,895
490,582
58 Negotiable CDs
59 To United States
60 Parent bank
61 Other banks in United States .
62 Nonbanks
34,607
156,281
84,657
16,894
54,730
31,629
152,465
83,394
15,646
53,425
30,929
161,390
87,606
20,559
53,225
31,854
157,023
91,578
14,806
50,639
31,585
155,41 V
85,543'
16,312'
53,556
32,175
162,027'
86,901'
15,423'
59,703
29,485
156,294'
87,26C
14,68C
54,354
30,159
159,009'
84,1%
15,310
59,503'
31,203
164,401
88,819
16,676'
58,906'
28,953
165,492
94,999
14,226
56,267
63 To foreigners
64 Other branches of parent bank
65 Banks
66 Official institutions
67 Nonbank foreigners
68 Other liabilities
245,939
89,529
76,814
19,520
60,076
21,185
253,775
95,146
77,809
17,835
62,985
18,759
304,803
124,601
87,274
19,564
73,364
21,4%
290,104
109,071
88,257
18,608
74,168
23,417
281,132'
105,148r
85,016
18,005'
72,%3'
20,811
277,082'
104,667
82,421'
17,699'
72,295'
21,560'
280,939'
110,429'
82,380'
17,159
70,971'
20,959
277,776'
107,084
83,086'
16,628'
70,978'
21,339
270,678'
100,538'
80,606'
17,232
72,302'
21,613
274,822
106,284
80,382
16,911
71,245
21,315
69 Total payable in U.S. dollars
353,712
336,406
361,438
344,395
337,122
341,729
341,411
341,539
346,185'
348,248
70 Negotiable CDs
71 To United States
72 Parent bank
73 Other banks in United States
74 Nonbanks
31,063
150,905
81,631
16,264
53,010
28,466
144,483
79,305
14,609
50,569
26,768
148,442
81,783
19,155
47,504
26,869
144,983
84,751
13,501
46,731
26,5%
144,863'
79,857
15,115'
49,891
27,233
149,645'
80,331
14,073'
55,241
25,015
144,464'
80,752
13,256'
50,456
24,870
147,551
77,503
14,011
56,037
26,128
152,745'
81,710
15,473'
55,562'
24,353
154,647
88,459
13,107
53,081
75 To foreigners
76 Other branches of parent bank
77 Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities
163,583
71,078
37,365
14,359
40,781
8,161
156,806
71,181
33,850
12,371
39,404
6,651
177,711
90,469
35,065
12,409
39,768
8,517
163,275
81,073
30,688
10,489
41,025
9,268
156,768'
76,708
29,844'
10,539
39,677
8,895
155,450'
76,920
28,635'
10,028
39,867'
9,401
162,056'
83,493'
28,909'
9,571
40,083
9,876
158,901
81,144
28,495
9,354'
39,908'
10,217
156,358'
75,014'
30,041
9,938
41,365'
10,954
158,325
79,450
29,341
9,207
40,327
10,923
United Kingdom
81 Total, all currencies
148,599
140,917
158,695
155,657
152,592
156,184
151,835
151,017
149,646
147,329
82 Negotiable CDs
83 To United States
84 Parent bank
85 Other banks in United States .
86 Nonbanks
31,260
29,422
19,330
2,974
7,118
27,781
24,657
14,469
2,649
7,539
26,988
23,470
13,223
1,740
8,507
27,279
22,725
14,506
1,768
6,451
27,090
23,868
14,904
1,508
7,456
27,659
27,145
15,518
2,408
9,219
25,390
25,120
15,9%
1,791
7,333
25,750
26,859
16,844
2,051
7,964
26,998
25,013
15,100
1,878
8,035
24,311
25,657
17,115
2,021
6,521
87 To foreigners
88 Other branches of parent bank
89 Banks
90 Official institutions
91 Nonbank foreigners
92 Other liabilities
78,525
23,389
28,581
9,676
16,879
9,392
79,498
25,036
30,877
6,836
16,749
8,981
98,689
33,078
34,290
11,015
20,306
9,548
95,049
30,211
33,316
9,624
21,898
10,604
92,219
27,383
32,970
10,181
21,685
9,415
91,995
28,743
31,995
9,672
21,585
9,385
91,691
28,%7
33,125
8,893
20,706
9,634
88,489
26,948
32,763
9,034
19,744
9,919
87,504
25,570
31,829
9,982
20,123
10,131
87,212
26,837
31,701
8,570
20,104
10,149
93 Total payable in U.S. dollars
112,697
99,707
102,550
98,982
96,532
99,378
97,555
96,908
97,926'
96,970
94 Negotiable CDs
95 To United States
%
Parent bank
97 Other banks in United States
98 Nonbanks
29,337
27,756
18,956
2,826
5,974
26,169
22,075
14,021
2,325
5,729
24,926
17,752
12,026
1,512
4,214
24,716
19,116
13,622
1,556
3,938
24,392
20,310
13,947
1,306
5,057
24,994
22,405
14,134
2,184
6,087
22,960
20,889
14,712
1,512
4,665
22,846
23,105
15,729
1,817
5,559
24,229
20,993'
13,745
1,655
5,593'
22,043
22,177
16,031
1,819
4,327
99 To foreigners
100 Other branches of parent bank
101 Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
51,980
18,493
14,344
7,661
11,482
3,624
48,138
17,951
15,203
4,934
10,050
3,325
55,919
22,334
15,580
7,530
10,475
3,953
50,590
21,292
13,106
5,181
11,011
4,560
47,589
18,060
12,889
5,918
10,722
4,241
47,%9
18,902
12,860
5,470
10,737
4,010
48,777
20,303
12,957
4,700
10,817
4,929
46,083
18,539
12,240
5,036
10,268
4,874
47,227
17,550
13,501
5,781
10,395
5,477
47,149
18,6%
13,417
4,519
10,517
5,601
Bahamas and Caymans
105 Total, all currencies
142,055
142,592
160,321
153,254
152,930
156,353
159,718
160,516
165,771
164,313
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
610
104,556
45,554
12,778
46,224
847
106,081
49,481
11,715
44,885
885
113,950
53,239
17,224
43,487
1,069
110,451
55,931
11,829
42,691
1,038
109,199
50,576
13,621
45,002
1,0%
112,605
51,745
11,659
49,201
941
109,424
52,221
11,451
45,752
940
112,540
49,896
12,069
50,575
731
117,765
54,174
13,732'
49,859'
924
116,687
56,818
11,106
48,763
111 To foreigners
112 Other branches of parent bank
113 Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
35,053
14,075
10,669
1,776
8,533
1,836
34,400
12,631
8,617
2,719
10,433
1,264
43,815
19,185
10,769
1,504
12,357
1,671
40,038
17,260
9,404
1,873
11,501
1,6%
40,953
19,420
9,162
1,164
11,207
1,740
40,369
18,909
9,080
1,053
11,327
2,283
47,361
24,755
9,779
1,850
10,977
1,992
44,993
22,288
10,155
1,015
11,535
2,043
45,062
21,221
9,607
1,099
13,135
2,213
44,478
22,872
8,405
1,067
12,134
2,224
138,322
138,774
152,927
145,366
146,134
148,923
151,684
152,235
157,512
156,215
117 Total payable in U.S. dollars
Summary Statistics
A59
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1988
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
By area
Western Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries
1987
1986
Mar.
Apr.
May
June
July
Aug.
Sept/
211,834
259,517
284,324
286,529
294,729
290,842
290,775r
289,995
288,296
27,920
75,650
31,838
88,829
29,892
95,624
29,683
94,974
31,460
96,604
30,761
95,299
31,971'
96,645'
32,505
96,698
31,855
96,812
91,368
1,300
15,596
122,432
300
16,123
142,854
792
15,162
145,929
795
15,148
150,991
499
15,175
149,333
502
14,947
146,971
506
14,682
145,561
509
14,722
144,104
513
15,012
88,629
2,004
8,417
105,868
1,503
5,412
124,620
4,961
8,328
116,098
1,402
4,147
129,411
7,954
8,660
131,458
1,512
4,839
129,739
8,314
8,520
132,050
1,417
5,993
131,406
9,372
9,145
135,120
1,418
7,773
126,772
10,773
9,407
134,285
1,266
7,837
125,095
10,725
9,818
135,657
1,179
7,793
123,120
9,981
11,336
136,205
1,196
7,646
120,853
10,054
10,136
137,561
1,130
8,049
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, end of period
1987
Item
1 Banks' own liabilities
2 Banks' own claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers
1984
8,586
11,984
4,998
6,986
569
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
2. Assets owned by customers of the reporting bank located in the United
1985
15,368
16,294
8,437
7,857
580
1988
1986
29,702
26,180
14,129
12,052
2,507
Sept.
Dec.
Mar.
June
46,147
41,394
14,647
26,746
1,067
55,075
50,663
18,253
32,410
551
55,457
51,428
17,614
33,814
810
54,046'
50,098
16,723
33,375
1,004
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A60
3.17
International Statistics • January 1989
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1988
Holder and type of liability
1985
1986
1987
Mar.
Apr.
May
June
July'
Aug.
Sept."
1 All foreigners
435,726
540,996
618,978
605,615
611,031
629,139
637,3%
654,760
658,235
656,633
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5 Other.
6 Own foreign offices
341,070
21,107
117,278
29,305
173,381
406,485
23,789
130,891
42,705
209,100
470,056
22,383
148,444
51,607
247,621
443,680
21,901
137,729
47,040
237,011
449,324
20,330
134,320
46,018
248,655
465,665
22,181
138,255
48,489
256,741
476,117
22,990
141,553
47,658
263,916
490,660
21,983
142,670
51,244
274,762
494,084
20,315
147,866
50,409
275,494
489,192
21,517
149,912
53,311
264,452
94,656
69,133
134,511
90,398
148,923
101,743
161,935
109,233
161,707
107,881
163,474
108,803
161,279
108,614
164,101
109,555
164,151
109,106
167,441
109,686
17,964
7,558
15,417
28,696
16,791
30,388
16,121
36,581
16,017
37,810
16,595
38,075
16,626
36,039
16,165
38,381
15,892
39,153
16,537
41,218
7 Banks' custody liabilities5
8 U.S. Treasury bills and certificates6
9 Other negotiable and readily transferable
instruments
10 Other
11 Nonmonetary international and regional
organizations
5,821
5,807
4,464
6,033
4,575
6,889
7,879
7,036
4,749
7,764
12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other.
2,621
85
2,067
469
3,958
199
2,065
1,693
2,702
124
1,538
1,040
4,031
134
2,061
1,836
2,412
67
335
2,010
4,898
84
1,981
2,833
5,142
84
1,873
3,185
4,857
92
1,857
2,908
2,925
85
1,430
1,410
5,104
208
1,888
3,008
16 Banks' custody liabilities5
17 U.S. Treasury bills and certificates6
18 Other negotiable and readily transferable
instruments
19 Other
3,200
1,736
1,849
259
1,761
265
2,002
635
2,163
587
1,991
132
2,737
745
2,179
286
1,824
43
2,660
755
1,464
0
1,590
0
1,497
0
1,351
16
1,564
11
1,852
7
1,989
3
1,861
32
1,769
12
1,899
5
20 Official institutions9
79,985
103,569
120,667
125,516
124,657
128,065
126,060
128,616
129,203
128,667
21 Banks' own liabilities
22 Demand deposits
23 Time deposits
24 Other.
20,835
2,077
10,949
7,809
25,427
2,267
10,497
12,663
28,703
1,757
12,843
14,103
26,915
2,021
11,789
13,105
26,623
1,498
11,753
13,372
28,451
1,882
12,860
13,709
27,882
1,834
11,864
14,184
28,386
1,6%
11,464
15,226
28,981
1,405
12,667
14,909
28,616
1,750
11,579
15,287
25 Banks' custody liabilities5
26 U.S. Treasury bills and certificates
27 Other negotiable and readily transferable
instruments
28 Other
59,150
53,252
78,142
75,650
91,965
88,829
98,602
95,624
98,033
94,974
99,613
%,604
98,178
95,299
100,230
%,645
100,222
%,698
100,051
96,812
5,824
75
2,347
145
2,990
146
2,750
228
2,939
120
2,775
234
2,672
207
3,368
217
3,240
284
2,%1
279
29 Banks10
275,589
351,745
414,181
394,040
401,743
413,460
423,3%
436,310
439,843
435,674
30 Banks' own liabilities
31 Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other.
35 Own foreign offices
252,723
79,341
10,271
49,510
19,561
173,381
310,166
101,066
10,303
64,232
26,531
209,100
371,651
124,030
10,898
79,787
33,345
247,621
346,742
109,732
10,012
69,964
29,755
237,011
353,971
105,315
9,153
68,098
28,065
248,655
365,512
108,771
10,260
69,616
28,895
256,741
375,093
111,177
10,898
72,612
27,668
263,916
387,456
112,694
10,217
73,186
29,291
274,762
390,603
115,109
9,258
75,737
30,114
275,494
383,409
118,957
9,376
78,692
30,889
264,452
22,866
9,832
41,579
9,984
42,530
9,134
47,298
9,597
47,772
8,889
47,948
8,872
48,303
9,212
48,854
9,394
49,240
9,299
52,265
8,888
6,040
6,994
5,165
26,431
5,392
28,004
4,627
33,074
4,637
34,245
4,341
34,735
4,725
34,365
4,625
34,835
4,300
35,642
5,484
37,893
40 Other foreigners
74,331
79,875
79,666
80,026
80,056
80,726
80,061
82,800
84,440
84,528
41 Banks' own liabilities
42 Demand deposits
43 Time deposits
44 Other.
64,892
8,673
54,752
1,467
66,934
11,019
54,097
1,818
67,000
9,604
54,277
3,119
65,993
9,734
53,915
2,344
66,318
9,612
54,134
2,571
66,804
9,955
53,798
3,051
67,999
10,173
55,204
2,622
69,%1
9,979
56,163
3,819
71,575
9,566
58,033
3,976
72,063
10,183
57,752
4,127
36 Banks' custody liabilities5
37 U.S. Treasury bills and certificates6
38 Other negotiable and readily transferable
instruments
39 Other
45 Banks' custody liabilities5
46 U.S. Treasury bills and certificates6
47 Other negotiable and readily transferable
instruments
48 Other
9,439
4,314
12,941
4,506
12,666
3,515
14,034
3,378
13,739
3,430
13,922
3,1%
12,062
3,358
12,839
3,231
12,865
3,066
12,466
3,231
4,636
489
6,315
2,120
6,914
2,238
7,393
3,263
6,876
3,433
7,628
3,099
7,241
1,464
6,311
3,297
6,583
3,215
6,193
3,041
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
9,845
7,4%
7,314
7,325
7,480
8,261
7,711
6,975
7,064
6,393
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
Data
3.17—Continued
1988
Area and country
1985
1986
1987
Mar.
Apr.
May
June
July'
Aug.
Sept/
1 Total
435,726
540,9%
618,978
605,615
611,031
629,139
637,3%
654,760
658,235
656,633
2 Foreign countries
429,905
535,189
614,514
599,582
606,456
622,250
629,517
647,725
653,486
648,870
164,114
693
5,243
513
4%
15,541
4,835
666
9,667
4,212
948
652
2,114
1,422
29,020
429
76,728
673
9,635
105
523
180,556
1,181
6,729
482
580
22,862
5,762
700
10,875
5,600
735
699
2,407
884
30,534
454
85,334
630
3,326
80
702
234,641
920
9,347
760
377
29,835
7,022
689
12,073
5,014
1,362
801
2,621
1,379
33,766
703
116,852
710
9,798
32
582
213,051
958
8,804
930
405
28,424
6,609
656
10,075
5,399
917
874
2,608
1,836
31,739
616
101,621
550
9,341
66
623
218,515
1,162
9,629
1,034
504
27,015
6,878
656
10,040
5,154
1,101
917
2,415
1,692
30,523
518
109,547
566
8,473
44
648
227,867
1,090
9,893
1,164
478
28,193
6,487
675
9,285
5,757
1,240
910
2,839
2,280
31,293
628
115,439
586
9,038
136
456
227,626
941
10,363
1,364
426
26,975
5,105
653
10,695
5,351
1,078
897
4,168
1,522
31,226
570
115,521
690
9,230
239
611
231,170
1,412
9,494
1,474
549
26,002
5,211
620
9,361
5,560
1,330
859
5,011
1,926
30,451
537
121,895
614
8,135
81
648
232,753
1,246
10,050
2,078
417
24,209
6,226
694
9,766
5,648
900
848
5,569
2,011
29,569
709
122,619
629
8,893
100
572
224,819
1,109
9,983
1,403
447
24,265
5,055
633
8,546
6,173
1,057
858
6,248
2,249
32,172
706
112,975
579
9,312
465
584
17,427
26,345
30,095
27,350
27,011
27,890
30,051
29,944
28,128
28,234
246,635
7,106
78,437
2,390
4,500
101,067
2,467
4,171
9
1,244
1,177
166
15,818
5,253
4,128
1,584
1,882
9,750
5,485
3 Europe
4 Austria
Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
1? Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
2.1 Other Western Europe1
??
U.S.S.R
23 Other Eastern Europe2
24 Canada
76
71
78
?9
30
31
3?
33
34
35
36
37
38
39
40
41
4?
43
Latin America and Caribbean
Argentina
Bahamas
Bermuda
Brazil
British West Indies
Chile
Colombia
Cuba
Ecuador
Guatemala
Jamaica
Mexico
Netherlands Antilles
Panama
Peru
Uruguay
Venezuela
Other
44
45
46
47
48
49
50
51
5?
51
54
55
56
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
i
Middle-East oil-exporting countries
Other
57
58
59
60
61
62
63
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries
Other
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
210,318
4,757
73,619
2,922
4,325
72,263
2,054
4,285
7
1,236
1,123
136
13,745
4,970
6,886
1,163
1,537
10,171
5,119
220,399
5,006
74,676
2,344
4,005
81,612
2,210
4,204
12
1,082
1,082
160
14,480
4,975
7,414
1,275
1,582
9,048
5,234
220,707
5,101
68,966
2,214
4,074
88,214
2,314
3,833
8
1,169
1,182
208
15,784
5,207
4,306
1,364
1,763
9,411
5,591
225,708
5,307
69,975
2,402
3,992
92,534
2,251
3,843
13
1,174
1,209
209
15,347
5,345
4,059
1,424
1,745
9,564
5,313
229,829
5,219
73,990
2,927
4,122
91,601
2,184
4,395
9
1,206
1,191
152
15,866
5,348
4,005
1,423
1,717
9,255
5,219
232,760
5,876
74,034
2,077
4,205
94,311
2,378
4,502
10
1,212
1,209
156
15,801
5,338
4,171
1,438
1,882
8,950
5,209
242,674
5,975
75,910
2,413
4,489
101,378
2,323
4,441
9
1,216
1,183
154
16,334
4,798
4,251
1,514
1,828
9,116
5,343
246,521
6,775
78,810
2,389
4,609
99,687
2,478
4,403
8
1,224
1,182
149
17,260
5,011
4,262
1,540
1,889
9,330
5,514
72,280
108,831
121,364
129,237
125,653
125,750
128,100
134,003
136,293
139,021
1,757
23,422
10,417
844
1,255
1,194
65,001
1,720
1,001
1,422
12,788
15,472
1,599
22,275
10,900
1,014
1,125
1,130
68,413
2,093
975
2,287
14,0%
13,115
1,607
7,786
8,067
712
1,466
1,601
23,077
1,665
1,140
1,358
14,523
9,276
1,476
18,902
9,393
674
1,547
1,892
47,410
1,141
1,866
1,119
12,352
11,058
1,162
21,503
10,180
582
1,404
1,292
54,398
1,637
1,085
1,345
13,988
12,788
1,562
24,005
10,015
659
1,547
1,400
60,349
1,546
1,095
1,189
12,727
13,142
1,814
23,982
9,635
675
1,063
1,292
58,576
1,574
1,015
1,181
12,639
12,207
1,921
23,874
10,214
619
1,036
1,190
58,151
1,476
975
1,448
12,413
12,434
1,725
23,072
9,255
942
1,075
1,334
60,916
1,572
954
1,099
12,089
14,066
1,564
24,023
9,951
858
1,036
1,244
63,529
1,459
1,085
1,650
14,298
13,305
4,883
1,363
163
388
163
1,494
1,312
4,021
706
92
270
74
1,519
1,360
3,945
1,151
194
202
67
1,014
1,316
4,034
1,099
75
387
81
1,062
1,330
3,878
1,218
68
195
82
1,008
1,307
4,055
1,196
65
267
63
1,090
1,373
4,023
1,187
73
245
60
1,111
1,348
3,837
1,039
80
200
63
1,052
1,403
3,846
%9
70
204
67
1,039
1,498
3,667
815
111
247
71
1,017
1,406
64 Other countries
65 Australia
66 All other
3,347
2,779
568
5,118
4,1%
922
4,070
3,327
744
5,202
4,154
1,048
5,689
4,885
804
6,859
5,943
916
6,957
6,017
939
6,098
5,329
769
5,945
5,170
775
6,493
5,649
844
67 Nonmonetary international and regional organizations
68 International
69 Latin American regional
70 Other regional
5,821
4,806
894
121
5,807
4,620
1,033
154
4,464
2,830
1,272
362
6,033
4,330
1,305
397
4,575
2,691
1,528
356
6,889
4,955
1,727
207
7,879
5,925
1,769
185
7,036
5,105
1,651
279
4,749
2,979
1,614
156
7,764
5,721
1,762
281
1. Includes the Bank for International Settlements and Eastern European
countries that are not listed in line 23.
2. 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. Excludes "holdings of dollars" of the International Monetary Fund.
6. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A61
A62
International Statistics • January 1989
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Area and country
1985
1986
1987
Mar.
Apr.
May
June
July
r
Aug.
Sept."
1
401,608
444,745
459,706
443,416
432,679
450,678
459,411
471,697
468,541'
481,679
2 Foreign countries
400,577
441,724
456,302
441,211
431,317
449,532
456,866
468,541r
468,089
475,009
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
107,823
728
7,498
688
987
11,356
1,816
648
9,043
3,2%
672
739
1,492
1,964
3,352
1,543
58,335
1,835
539
345
948
102,375
793
9,397
717
1,010
13,553
2,039
463
7,460
2,624
934
477
1,858
2,269
2,719
1,680
50,819
1,700
619
389
852
94,565
846
8,252
874
729
12,227
1,852
701
6,444
2,755
627
423
1,761
2,227
2,243
1,594
47,477
1,658
747
328
802
93,507
893
8,792
612
993
10,885
1,610
513
6,201
2,865
650
439
1,766
2,347
2,452
1,733
47,319
1,618
573
377
866
100,484
865
8,724
630
1,103
12,147
1,719
558
6,606
2,766
886
400
1,911
2,480
3,093
1,543
51,679
1,586
598
339
851
100,925
806
7,863
640
954
12,184
2,840
590
7,072
2,656
589
358
1,867
2,087
3,274
1,495
52,084
1,624
647
506
787
99,705
888
8,530
743
1,325
11,861
2,153
563
6,607
3,017
484
333
1,978
1,958
2,486
1,432
51,885
1,559
671
431
800
99,208
743
8,398
609
1,231
11,963
1,982
524
6,626
2,938
534
321
2,016
2,256
2,559
1,397
51,728
1,537
520
466
859
102,543
808
8,867
582
1,290
12,048
1,712
521
6,113
3,202
510
333
1,969
1,968
2,555
1,396
54,722
1,506
864
515
1,062
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
lb Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe2
22 U.S.S.R
23 Other Eastern Europe
24 Canada
16,482
21,006
25,288
21,121
22,101
23,799
24,639
23,939
24,056
23,952
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
208,825
12,091
59,342
418
25,716
46,284
6,558
2,821
0
2,439
140
198
30,698
1,041
5,436
1,661
940
11,108
1,936
214,641
11,9%
64,586
471
25,897
49,8%
6,308
2,740
1
2,286
144
188
29,532
980
4,744
1,329
%8
10,838
1,738
210,445
12,230
60,636
449
25,9%
52,531
6,099
2,652
0
2,239
149
201
27,%7
1,159
3,0%
1,277
929
11,040
1,7%
200,220
12,288
54,625
669
26,042
48,212
6,132
2,721
1
2,883
141
212
27,2%
1,304
2,749
1,283
913
10,944
1,805
203,941
12,297
59,251
369
26,119
48,873
6,018
3,082
0
2,197
149
177
26,679
1,434
2,566
1,297
880
10,833
1,719
203,208
12,365
56,722
818
26,230
51,140
5,881
3,095
0
2,142
144
187
26,177
1,238
2,492
1,149
885
10,912
1,631
206,547rr
12,359
62,333rr
460
26,041'
49,745
5,778
3,127r
0
2,146
157
214
26,017r
1,055
2,400
1,136
878
ll,016rr
l,686
208,407
12,256
65,573
423
25,927
48,951
5,684
3,029
0
2,162
148
184
25,883
1,269
2,369
1,190
920
10,788
1,651
212,669
12,233
63,999
688
25,653
55,147
5,674
3,003
0
2,185
150
185
26,016
1,081
2,234
1,146
891
10,747
1,635
66,212
96,126
106,025
107,699
108,395
113,797
120,120
130,443r
128,616
128,216
639
1,535
6,797
450
698
1,991
31,249
9,226
2,224
845
4,298
6,260
787
2,681
8,307
321
723
1,634
59,674
7,182
2,217
578
4,122
7,901
%8
4,577
8,216
510
580
1,363
68,628
5,127
2,071
4%
4,858
8,633
1,0%
3,554
8,502
565
645
1,238
72,256
5,084
2,074
541
3,538
8,606
1,135
3,812
6,343
542
643
1,284
75,166
4,781
1,959
516
4,077
8,136
841
3,805
8,356
507
631
1,259
78,638
4,886
2,012
596
3,541
8,725
1,065
3,957
9,632
499
695
1,213
82,361
4,987
2,055
641
4,573
8,441
1,033r
3,562 r
8,342r
508
688
1,206r
93,093r
4,882
2,029
668
6,400r
8,03 V
1,033r
3,241
7,451
548
703
1,174
92,806
4,854
2,030
683
6,216
7,891
1,180
2,798
8,471
539
691
1,180
90,600
5,129
2,009
759
6,400
8,462
57 Africa
58 Egypt
59 Morocco
bO South Africa
bl
Zaire
62 Oil-exporting countries6
61 Other
5,407
721
575
1,942
20
630
1,520
4,650
567
598
1,550
28
694
1,213
4,742
521
542
1,507
15
1,003
1,153
4,881
483
487
1,458
46
1,141
1,267
4,879
483
495
1,439
47
1,138
1,276
5,092
503
483
1,4%
42
1,244
1,324
5,423
605
484
1,693
41
1,275
1,325
5,493
539
481
1,726
38
1,340
1,369
5,462
530
475
1,719
36
1,353
1,348
5,462
534
478
1,702
16
1,389
1,343
64 Other countries
65 Australia
66 All other
3,390
2,413
978
3,294
1,949
1,345
3,230
2,191
1,039
2,499
1,481
1,019
2,216
1,360
856
2,419
1,413
1,006
2,551
1,678
873
2,414
1,554
860
2,340
1,499
842
2,167
1,392
775
67 Nonmonetary international and regional
organizations
1,030
3,021
3,404
2,206
1,362
1,147
2,545
3,156r
3,061
6,670
25 Latin America and Caribbean
2b Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador 4
35 Guatemala
3b Jamaica4
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41 Uruguay
42 Venezuela
43 Other Latin America and Caribbean
44
45
4b
47
48
49
50
51
52
53
54
55
5b
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
,
Middle East oil-exporting countries
Other Asia
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German
Democratic Republic, Hungary, Poland, and Romania.
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1988
Type of claim
1985
1987
1986
Mar.
Apr.
May
June
430,489
478,650
497,464
480,426
2 Banks' own claims on foreigners
3 Foreign public borrowers
4 Own foreign offices2
5 Unaffiliated foreign banks
6
Deposits
7
Other
8 All other foreigners
401,608
60,507
174,261
116,654
48,372
68,282
50,185
444,745
64,095
211,533
122,946
57,484
65,462
46,171
459,706
64,703
224,567
127,573
60,490
67,083
42,863
443,416
61,906
222,269
117,900
55,364
62,536
41,342
28,881
3,335
33,905
4,413
37,758
3,692
37,009
5,011
35,432'
4,843'
19,332
24,044
26,6%
23,339
24,120
6,214
5,448
7,370
8,659
6,468
28,487
25,706
23,329
18,684
19,618'
38,102
43,974
40,059
37,807
11
Negotiable and readily transferable
Aug.
471,697
63,212
240,342
127,181
59,769
67,413
40,%2
471,150
62,347
238,469
128,340
60,367
67,973
41,993
46,558
50,022
494,843r
1 Total
9 Claims of banks' domestic customers 3 ...
July'
432,679
61,173
211,576
117,539
55,984
61,555
42,391
450,678
61,276
225,498
122,447
57,502
64,945
41,458
459,411
62,711
230,527
123,418
58,806
64,612
42,755
Sept/
481,679
481,679
64,606
249,016
124,709
61,314
63,395
43,349
12 Outstanding collections and other
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States
43,147
44,425
42,243'
n.a.
and foreign branches, agencies, or wholly owned subsidiaries of head office or
parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 BULLETIN,
p. 550.
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank.
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1987
Maturity; by borrower and area
1 Total
2
3
4
5
6
7
By borrower
Maturity of 1 year or less2
Foreign public borrowers
All other foreigners
Maturity over 1 year2
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less2
Europe
Canada
Latin America and Caribbean
Asia
Africa 3
Allother
Maturity of over 1 year2
14 Europe
15 Canada
16 Latin America and Caribbean
17 Asia
18 Africa 3
19 All other
8
9
10
11
12
13
1984
1988
1986
Sept.
Dec.
Mar.
June'
243,952
227,903
232,295
237,320
235,037
218,843
227,521
167,858
23,912
143,947
76,094
38,695
37,399
160,824
26,302
134,522
67,078
34,512
32,567
160,555
24,842
135,714
71,740
39,103
32,637
166,930
27,359
139,571
70,390
39,411
30,980
163,895
26,001
137,894
71,142
38,652
32,491
151,998
24,253
127,745
66,845
35,836
31,009
162,874
25,608
137,267
64,647
35,605
29,042
58,498
6,028
62,791
33,504
4,442
2,593
56,585
6,401
63,328
27,966
3,753
2,791
61,784
5,895
56,271
29,457
2,882
4,267
62,878
5,893
58,390
31,535
2,871
5,362
59,068
5,684
56,494
35,938
2,824
3,887
51,464
4,937
55,433
35,505
2,5%
2,062
55,169
6,425
56,298
38, %5
2,914
3,103
9,605
1,882
56,144
5,323
2,033
1,107
7,634
1,805
50,674
4,502
1,538
926
6,737
1,925
56,719
4,043
1,539
777
6,726
1,579
55,144
3,518
1,623
1,801
6,867
2,661
53,817
3,668
1,747
2,381
6,040
2,239
51,583
3,669
2,201
1,114
5,401
2,337
49,775
3,699
2,429
1,006
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
1985
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
A63
A64
International Statistics • January 1989
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2
Billions of dollars, end of period
1986
Area or country
1984
1987
1988
1985
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
405.7
385.4
381.5
381.6
385.1
394.8
384.6
387.7
381.3
372.3
353.1
148.1
8.7
14.1
9.0
10.1
3.9
3.2
3.9
60.3
7.9
27.1
146.0
9.2
12.1
10.5
9.6
3.7
2.7
4.4
63.0
6.8
23.9
156.4
8.9
15.0
11.5
9.0
3.4
2.9
5.6
67.9
6.6
25.8
154.8
8.3
14.5
12.4
7.8
3.9
2.7
4.7
68.8
5.9
25.8
156.6
8.3
13.7
11.6
9.0
4.6
2.4
5.8
71.0
5.3
24.9
162.7
9.1
13.3
12.7
8.6
4.4
3.0
5.8
73.7
5.3
26.9
158.1
8.3
12.5
11.2
7.5
7.3
2.4
5.7
72.1
4.7
26.4
155.2
8.2
13.7
10.5
6.6
4.8
2.6
5.4
72.1
4.7
26.6
159.9
10.1
13.8
12.6
7.3
4.1
2.1
5.6
69.1
5.5
29.8
156.5
9.3
11.5
11.8
7.4
3.3
2.1
5.1
71.3
5.0
29.7
150.5
9.2
10.8
10.6
6.1
3.3
1.9
5.6
69.8
5.4
28.0
13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia
33.6
1.6
2.2
1.9
2.9
3.0
1.4
6.5
1.9
1.7
4.5
6.0
29.9
1.5
2.3
1.6
2.6
2.9
1.2
5.8
1.8
2.0
3.2
5.0
30.2
1.7
2.3
1.6
2.6
3.0
1.0
6.4
2.2
2.0
3.0
4.1
28.9
1.7
2.2
1.6
2.3
2.7
1.0
6.7
1.9
1.6
3.0
4.2
25.7
1.7
1.7
1.4
2.3
2.4
.8
5.8
1.8
1.4
3.0
3.5
25.7
1.9
1.7
1.4
2.1
2.2
.8
6.3
1.7
1.4
3.0
3.2
25.2
1.8
1.5
1.4
2.0
2.1
.8
6.1
1.7
1.5
3.0
3.1
25.9
1.9
1.6
1.4
1.9
2.0
.8
7.4
1.5
1.6
2.9
2.9
26.3
1.9
1.7
1.3
2.0
2.3
.5
8.0
1.6
1.6
2.9
2.5
26.2
1.6
1.4
1.0
2.3
2.0
.4
9.0
1.6
1.9
2.8
2.1
23.7
1.6
1.0
1.2
2.2
2.0
.4
7.2
1.5
1.6
2.8
2.2
25 OPEC countries3
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
24.9
2.2
9.3
3.3
7.9
2.3
21.3
2.1
8.9
3.0
5.3
2.0
20.3
2.1
8.8
3.0
4.7
1.7
19.7
2.2
8.7
2.8
4.4
1.7
19.3
2.2
8.6
2.5
4.3
1.7
20.0
2.1
8.5
2.4
5.4
1.6
18.8
2.1
8.4
2.2
4.4
1.7
19.0
2.1
8.3
2.0
5.0
1.7
17.1
1.9
8.1
1.9
3.6
1.7
17.1
1.9
8.1
1.9
3.6
1.7
16.4
1.8
8.0
1.8
3.1
1.7
111.8
104.2
100.9
99.1
99.1
100.3
100.5
97.7
97.7
94.0
91.3r
1 Total
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
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America
8.7
26.3
7.0
2.9
25.7
2.2
3.9
8.8
25.4
6.9
2.6
23.9
1.8
3.4
9.1
25.3
7.1
2.1
23.8
1.6
3.3
9.2
25.2
7.1
1.9
23.9
1.5
3.3
9.5
25.2
7.1
2.1
23.8
1.4
3.1
9.5
26.1
7.2
2.0
23.9
1.4
3.0
9.5
25.1
7.2
1.9
25.3
1.3
2.9
9.3
25.1
7.0
1.9
24.8
1.2
2.8
9.4
24.7
6.9
2.0
23.7
1.1
2.7
9.5
23.9
6.6
1.9
22.5
1.1
2.8
9.4
23.7
6.4
2.1
21.1
.9
2.6
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.7
5.1
.9
1.8
10.6
2.7
6.0
1.8
1.1
.5
4.5
1.2
1.6
9.2
2.4
5.7
1.4
1.0
.6
3.7
1.3
1.6
8.4
1.9
5.7
1.1
.8
.6
4.3
1.3
1.4
7.1
2.1
5.4
1.0
.6
.4
4.9
1.2
1.5
6.6
2.1
5.4
.9
.7
.9
5.5
1.7
1.4
6.2
1.9
5.4
.9
.6
.6
6.6
1.7
1.3
5.6
1.7
5.4
.8
.7
.3
.3
8.2
1.9
1.0
4.9
1.5
5.1
.7
.7
.4
6.1
2.1
1.0
5.6
1.5
5.1
1.0
.7
.3
4.9r
2.3
1.0
5.9
1.5
4.9
1.1
.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa4
1.2
.8J
.9
.9
.7
.9
.7
.9
.6
.9
.6
.9
\.l
L6
L6
L4
13
13
.5
.9
.0
1.3
.5
.9
2.\
1.0
.9]
L9
L0
.6
.9
.1
1.2
52 Eastern Europe
53 U.S.S.R
54 Yugoslavia
55 Other
4.4
.1
2.3
2.0
4.1
.1
2.2
1.8
4.0
.3
2.0
1.7
3.3
.1
1.9
1.4
3.2
.1
1.7
1.4
3.0
.1
1.6
1.3
3.3
.3
1.7
1.3
3.3
.5
1.7
1.2
3.0
.4
1.6
1.0
2.9
.3
1.7
.9
3.1
.4
1.7
1.0
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands
Antilles
61 Panama5
62 Lebanon
63 Hong Kong
64 Singapore
65 Others6
65.6
21.5
.9
11.8
3.4
6.7|
62.9
21.2
.7
11.6
2.2
6.0J
53.0
16.9
.4
10.5
2.2
4.2
J
58.3
19.6
.4
11.3
1.8
5.1|
61.3
22.0
.7
12.4
1.8
4.0
62.8
23.8
.8
12.1
1.7
4.2
60.5
19.9
.6
13.9
1.3
3.9
64.3
25.5
.6
12.8
1.2
3.7
54.1
17.1
.6
13.1
1.2
3.7
54.1
18.3
.8
11.7
1.3
3.2
45.9
12.1
1.0
10.0
1.2
3.0
11.4
9.8
.0
1L4
9.8
.0
9^4
9.3
.0
103
9.7
.0
1111
9.2
.0
1L4
8.6
.0
12.5
8.3
.0
123
8.1
.0
1L2
7.0
.0
113
7.4
.0
1L7
6.8
.0
66 Miscellaneous and unallocated7
17.3
16.9
16.8
17.3
19.8
20.1
18.1
22.3
23.2
21.5
22.2r
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
J
J
J
J
J
J
13
.6
.8
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
Data
A65
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1987
Type, and area or country
1984
1985
1988
1986
June
Sept.
Dec.
Mar.
June
1 Total
29,357
27,825
25,779
29,019
28,669
27,590
28,840
29,425
2 Payable in dollars
3 Payable in foreign currencies
26,389
2,968
24,296
3,529
21,980
3,800
24,565
4,454
24,141
4,528
22,253
5,337
23,246
5,594
24,018
5,406
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
14,509
12,553
1,955
13,600
11,257
2,343
12,312
9,827
2,485
14,096
11,197
2,899
13,034
10,080
2,954
11,574
8,097
3,477
13,066
9,384
3,681
13,156
9,659
3,497
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities ..
14,849
7,005
7,843
14,225
6,685
7,540
13,467
6,462
7,004
14,923
7,286
7,637
15,635
7,548
8,086
16,016
7,425
8,591
15,774
6,601
9,173
16,269
6,853
9,417
13,836
1,013
13,039
1,186
12,153
1,314
13,368
1,555
14,061
1,574
14,156
1,859
13,862
1,912
14,359
1,910
6,728
471
995
489
590
569
3,297
7,700
349
857
376
861
610
4,305
8,079
270
661
368
704
646
5,140
9,713
257
822
402
669
655
6,646
9,298
230
615
505
641
685
6,357
7,794
202
364
583
1,014
493
4,946
8,939
241
365
586
1,013
652
5,900
8,839
267
330
623
1,008
705
5,733
10
11
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
863
839
399
441
397
400
467
458
3,184
1,123
4
29
1,843
15
3
1,961
614
4
32
1,163
22
0
1,744
398
0
22
1,223
29
2
961
280
0
22
580
17
3
847
278
0
25
476
13
0
1,195
249
0
23
824
15
2
1,192
211
0
19
896
26
0
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,086
1,926
13
35
2,103
367
137
27
28
29
Asia
Japan
Middle East oil-exporting countries2 .
1,777
1,209
155
1,815
1,198
82
OO 00
19
Payable in dollars
Payable in foreign currencies
1,805
2,131
1,751
7
2,300
1,830
7
2,429
2,042
8
2,379
1,987
12
2,591
2,063
11
30
31
Africa
Oil-exporting countries
14
0
12
0
1
1
1
0
2
0
4
1
5
3
2
1
32
All other4
41
50
67
66
76
100
80
73
4,001
48
438
622
245
257
1,095
4,074
62
453
607
364
379
976
4,447
101
352
714
424
387
1,341
4,966
111
423
585
324
557
1,380
4,951
59
437
674
336
556
1,473
5,626
125
451
916
421
559
1,668
5,757
148
441
817
484
529
1,798
5,812
150
433
798
535
455
1,850
33
34
35
36
37
38
39
40
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,975
1,449
1,405
1,371
1,399
1,301
1,393
1,169
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,871
7
114
124
32
586
636
1,088
12
77
58
44
430
212
924
32
156
61
49
217
216
1,069
13
266
88
67
214
203
1,082
22
252
40
47
231
176
865
19
168
46
19
189
162
937
17
325
59
14
164
85
1,000
64
272
54
28
233
111
48
49
50
Asia
Japan
Middle East oil-exporting countries2'5
5,285
1,256
2,372
6,046
1,799
2,829
5,091
2,052
1,679
5,919
2,481
1,867
6,511
2,422
2,104
6,573
2,580
1,964
5,899
2,509
1,069
6,270
2,659
1,320
51
52
Africa
Oil-exporting countries3
588
233
587
238
619
197
524
166
572
151
574
135
576
159
624
115
53
All other4
1,128
982
980
1,074
1,119
1,078
1,212
1,394
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.
A66
International Statistics • January 1989
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1987
Type, and area or country
1984
1985
1988
1986
June
Sept.
Dec.
Mar.
June
1 Total
29,901
28,876
36,248
33,578
33,209
32,285
31,389
38,470
2 Payable in dollars
3 Payable in foreign currencies
27,304
2,597
26,574
2,302
33,850
2,399
30,597
2,981
30,648
2,561
29,192
3,093
29,410
1,979
36,542
1,928
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
19,254
14,621
14,202
420
4,633
3,190
1,442
18,891
15,526
14,911
615
3,364
2,330
1,035
26,273
19,916
19,331
585
6,357
5,005
1,352
23,686
16,014
14,775
1,238
7,673
6,391
1,282
22,857
17,286
16,377
908
5,572
4,447
1,124
21,747
15,535
14,089
1,447
6,212
5,099
1,113
20,606
13,205
12,650
555
7,400
6,349
1,051
26,914
19,872
19,181
691
7,042
6,240
803
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
10,646
9,177
1,470
9,986
8,696
1,290
9,975
8,783
1,192
9,892
8,848
1,043
10,352
9,399
953
10,537
9,530
1,007
10,784
9,726
1,057
11,556
10,579
977
9,912
735
9,333
652
9,513
462
9,431
461
9,824
528
10,005
533
10,410
373
11,121
434
5,762
15
126
224
66
66
4,864
6,929
10
184
223
161
74
6,007
10,744
41
138
116
151
185
9,855
11,468
6
169
96
140
98
10,745
10,785
26
171
103
157
44
10,074
10,666
6
359
72
348
76
9,561
10,340
15
328
85
334
56
9,276
12,532
15
174
154
333
81
11,410
14
15
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
3,988
3,260
4,808
3,712
3,294
3,294
2,840
3,009
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,216
3,306
6
100
4,043
215
125
7,846
2,698
6
78
4,571
180
48
9,291
2,628
6
86
6,078
174
21
7,638
2,589
6
115
4,429
168
20
7,579
3,299
2
113
3,716
174
18
6,831
1,804
7
64
4,439
172
19
6,511
2,268
43
86
3,580
154
35
10,877
4,121
126
46
6,081
147
23
31
32
33
Asia
Japan
Middle East oil-exporting countries''
961
353
13
731
475
4
1,317
999
7
789
452
6
1,105
737
10
830
550
10
841
673
8
415
184
6
34
35
Africa
Oil-exporting countries'
210
85
103
29
85
28
59
9
71
14
65
7
53
7
61
10
36
All other4
117
21
28
20
24
61
21
20
3,801
165
440
374
335
271
1,063
3,533
175
426
346
284
284
898
3,708
133
414
444
164
217
999
3,845
137
439
526
172
187
1,074
4,120
169
416
550
190
206
1,228
4,132
179
595
560
133
185
1,086
4,135
192
485
629
151
173
1,084
4,821
159
605
768
173
263
1,300
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,021
1,023
934
1,046
1,051
931
1,167
947
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,052
8
115
214
7
583
206
1,753
13
93
206
6
510
157
1,857
28
193
234
39
412
237
1,727
14
169
204
19
347
204
1,711
12
143
231
20
369
192
1,912
19
159
226
26
366
298
1,963
14
171
215
24
371
322
2,095
13
174
233
25
400
344
52
53
54
Asia
Japan
Middle East oil-exporting countries2
3,073
1,191
668
2,982
1,016
638
2,755
881
563
2,642
952
452
2,800
1,027
434
2,919
1,160
450
2,867
1,109
412
3,013
1,168
449
55
56
Africa
Oil-exporting countries
470
134
437
130
500
139
378
123
407
124
401
144
420
157
423
136
57
All other4
229
257
222
255
262
241
231
257
1. For a description of the changes in the International Statistics tables, see
July 1979 BULLETIN, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A67
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1988
Transactions, and area or country
1986
1988
1987
Jan.Sept.
Mar.
Apr.
May
June
July
Aug.
Sept."
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
148,114
129,395
249,113
232,849
144,471
143,837
18,068
18,482
15,022
13,705
13,654
14,723
20,007
19,678
19,207
18,383
17,275
16,704
11,971
12,552
3
Net purchases, or sales (—)
18,719
16,264
634
-414
1,317
-1,069
329
824
572
-581
4
Foreign countries
18,927
16,313
674
-444
1,300
-976
287
793
548
-554
481
33
121
-36
-56
-204
146
-172
-116
-549
1,039
1,187
3
51
227
-34
-3
20
-90
253
58
58
-159
518
475
78
13
287
-21
9
-5
-37
234
162
159
91
-228
-282
41
36
-616
-37
-14
-56
-506
245
44
310
-188
-127
24
5
19
42
31
23
-28
5
6
7
8
9
10
11
12
N
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America
and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
9,559
459
341
936
1,560
4,826
816
3,031
976
3,876
3,305
297
373
1,928
905
-74
892
-1,123
630
1,048
1,314
-1,360
12,896
11,365
123
365
-1,644
-257
195
-521
-1,494
-2
354
774
-1,655
2,484
2,823
163
198
-360
-7
171
-223
-32
-331
-61
98
-788
577
704
5
84
104
-145
-17
429
241
230
24
372
262
19
-67
-1,151
-153
-66
-43
-247
-711
102
-82
62
106
85
23
-35
18
Nonmonetary international and
regional organizations
-208
-48
-40
31
17
-92
BONDS
-1
2
19
Foreign purchases
123,169
105,856
62,739
7,799
5,618
7,810
8,341
8,277
5,966
7,450
20
Foreign sales
72,520
78,312
43,529
5,594
4,433
3,518
4,590
5,064
4,144
4,953
21
Net purchases, or sales ( - )
50,648
27,544
19,210
2,206
1,185
4,292
3,751
3,213
1,822
2,497
22
Foreign countries
49,801
26,804
19,667
2,201
1,186
4,262
3,569
3,190
1,837
2,433
23
24
25
26
27
28
29
30
31
32
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America
and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
39,313
389
-251
387
4,529
33,900
548
1,552
-3,113
11,346
9,611
16
139
21,989
194
33
269
1,587
19,770
1,296
2,857
-1,314
2,021
1,622
16
-61
11,980
214
1,357
781
97
8,905
508
1,418
-431
6,222
5,349
-12
-18
1,462
57
260
30
-14
976
87
248
138
273
227
3
-11
658
7
347
58
-15
228
104
96
-54
373
336
4
5
2,256
-18
11
180
152
1,886
98
141
-4
1,755
1,641
-2
17
2,203
15
226
55
-71
1,738
216
174
-124
1,091
1,049
4
5
1,744
-7
8
17
-139
1,685
130
254
-101
1,152
1,035
0
10
1,482
5
166
41
84
1,188
27
193
-87
254
178
1
-33
1,639
90
160
415
97
821
-155
45
-14
916
575
1
1
36
Nonmonetary international and
regional organizations
847
740
-457
5
-1
31
182
23
-14
64
Foreign securities
37
38
39
Stocks, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-1,853
1,149
-225
-724
372
905
-154
-126R
-262
-68
49,149
51,002
95,263
94,114
53,559
53,784
6,693
7,417
5,797
5,425
5,964
5,059
6,404
6,558
7,052'
7,178 R
5,899
6,161
5,044
5,112
-363
17,038
17,401
-507
25,128
25,636
40
41
42
Bonds, net purchases, or sales ( - )
Foreign purchases
Foreign sales
-3,685
166,992
170,677
-7,830
199,010
206,845
-5,440
154,345
159,785
-1,179
16,561
17,740
-137
15,593
15,730
873
15,119
14,246
-708
17,013
17,721
-659'
19,224 R
19,882'
43
Net purchases, or sales (—), of stocks and bonds . . . .
-5,538
-6,687
-5,664
-1,903
235
1,778
-863
—785r
-625
-576
44
Foreign countries
-6,493
-6,718
-5,958
-1,944
179
1,562
-774
-759'
-655
-556
45
46
47
48
49
50
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
-18,026
-876
3,476
10,858
52
-1,977
-12,088
-4,065
828
9,338
89
-820
-5,353
-3,254
1,569
845
150
85
-1,541
-366
138
-154
48
-70
483
-406
538
-407
14
-43
681
-162
322
6%
-1
24
-1,185
-186
301
557
1
-262
-488R
-319
-48
237''
11
-153'
-903
216
-34
-114
37
143
-449
-730
290
189
28
115
51
Nonmonetary international and
regional organizations
955
31
294
41
56
216
-89
30
-19
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-
-26
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
A68
International Statistics • January 1989
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions
Millions of dollars
1988
Country or area
1988
1987
1986
Jan.Sept.
Mar.
Apr.
May
June
July
Aug.
Sept."
Transactions, net purchases or sales ( - ) during period1
1 Estimated total2
19,388
25,587
37,664
9,980
3,433
11,062
-2,162
905
-274
-2,008
2 Foreign countries2
20,491
30,889
37,759
9,017
3,728
9,972
-3,337
2,156
-40
-2,309
16,326
-245
7,670
1,283
132
329
4,546
2,613
0
881
23,716
653
13,330
-913
210
1,917
3,975
4,563
-19
4,526
12,247
883
-4,203
-475
-634
-800
8,929
8,540
6
2,725
3,471
454
919
378
-245
643
-244
1,570
-3
372
2,332
47
1,576
117
-93
344
97
238
5
133
3,108
159
79
-22
104
-309
1,523
1,560
14
1,415
-3,226
-68
-4,241
-7%
-232
654
47
1,420
-10
669
-1,460
122
-4,240
312
-187
-51
837
1,755
-9
-314
-836
-209
-2,020
-346
175
344
416
803
0
-315
-1,342
-333
-719
-115
-121
-1,355
1,980
-663
-17
-151
926
-96
1,130
-108
1,345
-22
-54
1,067
-2,192
150
-1,142
-1,200
4,488
868
-56
407
855
-110
861
104
19,932
17,460
3
1,998
198
20
169
10
5,463
4330
5
-492
75
15
97
-36
713
687
0
475
360
1
-17
376
4,476
2,820
-13
626
-580
2
63
-645
-382
-52
-1
183
0
-2
57
-55
3,246
3,006
-10
694
-312
-128
-292
108
1,027
1,539
5
391
264
-17
280
1
-1,304
-2,845
31
193
21 Nonmonetary international and regional organizations
22 International
23 Latin American regional
-1,104
-1,430
157
-5,300
-4,387
3
-96
307
-51
963
968
-5
-295
-334
0
1,090
1,155
7
1,174
1,546
-38
-1,252
-1,137
-14
-235
-282
-8
301
294
0
Memo
24 Foreign countries2
25 Official institutions
26 Other foreign
20,491
14,214
6,283
30,889
31,064
-181
37,759
21,672
16,089
9,017
8,135
882
3,728
3,075
653
9,972
5,062
4,910
-3,337
-1,658
-1,678
2,156
-2,362
4,518
-40
-1,410
1,371
-2,309
-1,457
-852
-1,529
5
-3,142
16
-243
1
578
0
514
0
-612
0
-201
0
295
0
449
0
-161
0
3 Europe2
4 Belgium-Luxembourg
Germany2
6 Netherlands
7 Sweden .. ^
8 Switzerland
9 United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
27
28
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Allother
Oil-exporting countries
Middle East3
Africa
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.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
A69
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on Nov. 30, 1988
Country
Austria..
Belgium .
Brazil . . .
Canada..
Denmark
Rate on Nov. 30, 1988
Country
Month
effective
4.0
7.5
49.0
10.84
7.0
Aug. 1988
Aug. 1988
Mar. 1981
Nov. 1988
Oct. 1983
France
Germany, Fed. Rep. of.
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
Percent
Month
effective
7.25
3.5
12.5
2.5
4.0
Oct. 1988
Aug. 1988
Aug. 1988
Feb. 1987
Aug. 1988
Rate on Nov. 30, 1988
Country
Month
effective
Norway
Switzerland
i
United Kingdom2
Venezuela
8.0
3.0
June 1983
Aug. 1988
8.0
Oct. i985
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per year, averages of daily figures
1988
Country, or type
1
2
3
4
5
6
7
8
9
10
1985
1986
1987
May
June
July
Aug.
Sept.
Oct.
Nov.
Eurodollars
United Kingdom
Canada
Germany
Switzerland
8.27
12.16
9.64
5.40
4.92
6.70
10.87
9.18
4.58
4.19
7.07
9.65
8.38
3.97
3.67
7.40
8.00
9.07
3.51
2.23
7.61
8.91
9.44
3.88
2.82
8.09
10.45
9.42
4.88
3.67
8.47
11.29
9.92
5.28
3.57
8.31
12.09
10.48
4.93
3.34
8.51
11.94
10.48
5.03
3.62
8.91
12.23
10.86
4.91
4.10
Netherlands
France
Italy
Belgium
Japan
6.29
9.91
14.86
9.60
6.47
5.56
7.68
12.60
8.04
4.96
5.24
8.14
11.15
7.01
3.87
4.07
7.81
10.57
6.05
3.80
4.10
7.27
10.90
6.04
3.82
4.85
7.32
11.02
6.84
3.84
4.50
7.58
11.02
7.25
3.98
5.51
7.86
11.27
7.39
4.15
5.35
7.87
11.30
7.24
4.26
5.30
8.03
11.48
7.18
4.22
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.
A70
3.28
International Statistics • January 1989
FOREIGN EXCHANGE RATES 1
Currency units per dollar
1988
Country/currency
1
2
3
4
5
6
Australia/dollar^
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
7
8
9
10
11
12
13
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
Hong Kong/dollar
India/rupee 2
Ireland/punt
14
15
16
17
18
19
20
Italy/lira
Japan/yen
Malay sia/ringgit
Netherlands/guilder 2
New Zealand/dollar
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/bah t
United Kingdom/pound
1985
1986
1987
June
July
Aug.
Sept.
Oct.
Nov.
70.026
20.676
59.336
1.3658
2.9434
10.598
67.093
15.260
44.662
1.38%
3.4615
8.0954
70.136
12.649
37.357
1.3259
3.7314
6.8477
80.76
12.380
36.786
1.2176
3.7314
6.6893
80.00
12.991
38.649
1.2075
3.7314
7.0266
80.57
13.281
39.562
1.2237
3.7314
7.2280
79.15
13.135
39.149
1.2267
3.7314
7.1764
80.% .
12.777
38.077
1.2055
3.7314
7.0055
85.07
12.307
36.670
1.2186
3.7314
6.7547
6.1971
8.9799
2.9419
138.40
7.7911
12.332
106.62
5.0721
6.9256
2.1704
139.93
7.8037
12.597
134.14
4.4036
6.0121
1.7981
135.47
7.7985
12.943
148.79
4.1761
5.9310
1.7579
140.69
7.8073
13.785
152.65
4.38%
6.2241
1.8466
147.85
7.8135
14.079
145.49
4.4720
6.3919
1.8880
151.62
7.8050
14.217
142.17
4.4282
6.3515
1.8668
151.47
7.8106
14.490
143.60
4.3041
6.1975
1.8165
148.71
7.8133
14.720
147.30
4.1522
5.9746
1.7491
145.22
7.8095
14.966
152.70
1908.90
238.47
2.4806
3.3184
49.752
8.5933
172.07
1491.16
168.35
2.5830
2.4484
52.456
7.3984
149.80
1297.03
144.60
2.5185
2.0263
59.327
6.7408
141.20
1305.56
127.47
2.5860
1.9767
69.9%
6.3951
143.54
1367.26
133.02
2.6267
2.0827
66.832
6.7207
150.42
1397.93
133.77
2.6520
2.1319
64.815
6.9016
153.72
1393.15
134.32
2.6643
2.1063
61.480
6.9150
154.18
1353.36
128.68
2.6785
2.0486
62.113
6.7400
150.13
1300.22
123.20
2.6779
1.9729
64.067
6.57%
145.57
2.2008
2.2343
861.89
169.98
27.187
8.6031
2.4551
39.889
27.193
129.74
2.1782
2.2918
884.61
140.04
27.933
7.1272
1.7979
37.837
26.314
146.77
2.1059
2.0385
825.93
123.54
29.471
6.3468
1.4918
31.756
25.774
163.98
2.0285
2.2716
732.88
116.25
31.133
6.1074
1.4629
28.723
25.280
177.68
2.0459
2.3985
728.67
122.27
31.782
6.3542
1.5343
28.726
25.523
170.51
2.0417
2.4531
725.74
124.122
32.807
6.4878
1.5837
28.693
25.560
169.65
2.0409
2.4575
723.00
124.36
32.953
6.4448
1.5763
28.914
25.548
168.40
2.0202
2.4662
712.72
120.02
32.989
6.2694
1.5372
28.880
25.365
173.87
1.9616
2.3943
6%.08
115.17
32.989
6.0968
1.4675
28.170
25.146
180.85
143.01
112.22
%.94
92.58
%.53
98.29
97.91
95.10
MEMO
31 United States/dollar3
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
91.91
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see FEDERAL
RESERVE BULLETIN, vol. 64, A u g u s t 1978, p . 700).
A71
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR
PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when
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)
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
. . .
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed
issues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
STATISTICAL
obligations of the Treasury. "State and local government"
also includes municipalities, special districts, and other political subdivisions.
In some of the tables, details do not add to totals because
of rounding.
RELEASES
List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
SPECIAL
Issue
December 1988
Page
All
October
February
April
June
February
June
September
January
September
May
September
January
November
February
August
A70
A70
A70
A70
A76
A76
A82
A78
A76
A70
A70
A72
A74
A80
A70
TABLES
Published Irregularly, with Latest Bulletin Reference
Assets and liabilities of commercial banks, March 31, 1987
Assets and liabilities of commercial banks, June 30, 1987
Assets and liabilities of commercial banks, September 30, 1987
Assets and liabilities of commercial banks, December 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1987
Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1988
Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1988
Terms of lending at commercial banks, November 1987
Terms of lending at commercial banks, February 1988
Terms of lending at commercial banks, May 1988
Terms of lending at commercial banks, August 1988
Pro forma balance sheet and income statements for priced service operations, June 30, 1987
Pro forma balance sheet and income statements for priced service operations, September 30, 1987
Pro forma balance sheet and income statements for priced service operations, March 31, 1988
Special tables begin on next page.
1987
1988
1988
1988
1988
1988
1988
1989
1988
1988
1988
1989
1987
1988
1988
All
Special Tables • January 1989
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 19881
A. Commercial and Industrial Loans 2
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity3
Days
Loan rate (percent)
Weighted
average
effective4
Standard
Interquartile
range6
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
Most
common
pricing
rate7
ALL BANKS
1 Overnight8
10,986,381
4,628
*
8.88
.12
8.48-9.14
76.4
3.2
Fed funds
2 One month and under
3 Fixed rate
4 Floating rate
6,733,440
5,355,084
1,378,356
671
855
366
15
14
20
9.22
9.10
9.69
.11
.13
.24
8.59-9.45
8.48-9.28
8.63-10.75
79.8
77.3
89.7
7.6
7.7
7.2
Domestic
Domestic
Domestic
5 Over one month and under a year .
6 Fixed rate
7 Floating rate
9,480,901
5,189,617
4,291,285
131
137
124
128
93
171
10.17
9.92
10.47
.13
.11
.18
9.29-10.92
9.11-10.52
9.84-11.04
77.1
75.2
79.5
16.0
17.9
13.6
Prime
Foreign
Prime
8 Demand9
9 Fixed rate
10 Floating rate
17,489,752
3,107,635
14,382,117
227
624
199
*
10.27
8.88
10.58
.18
.18
.19
8.97-11.07
8.38-9.47
9.92-11.46
81.7
80.9
81.9
13.3
33.2
9.0
Prime
Domestic
Prime
11 Total short term
44,690,474
276
49
9.75
.13
8.67-10.52
79.1
10.5
Prime
12 Fixed rate (thousands of dollars)...
13 1-24
14 25-49
15 50-99
16 100-499
17 500-999
18 1000 and over
24,638,508
267,711
164,686
209,305
590,502
412,330
22,993,972
479
7
31
64
189
663
7,066
27
102
122
104
80
51
23
9.15
11.89
11.56
10.83
10.37
9.87
9.04
.08
.14
.18
.10
.13
.10
.05
8.53-9.51
11.07-12.75
10.52-12.75
9.89-12.01
9.85-11.07
8.87-10.92
8.49-9.37
76.9
21.5
30.7
49.5
46.2
58.9
79.2
11.1
.0
.2
.3
1.7
10.5
11.6
Fed funds
Prime
Prime
Prime
Prime
Other
Fed funds
19 Floating rate (thousands of dollars)
20 1-24
21 25-49
22 50-99
23 100-499
24 500-999
25 1000 and over
20,051,966
500,450
570,128
1,015,333
3,700,965
1,735,206
12,529,885
182
9
34
67
200
658
4,480
134
159
161
156
162
137
120
10.49
11.70
11.46
11.27
10.94
10.57
10.20
.17
.08
.06
.06
.09
.04
.22
9.84-11.30
11.02-12.19
10.92-12.13
10.52-12.13
9.96-11.57
9.92-11.03
8.84-11.02
81.9
74.9
80.7
83.4
86.8
89.0
79.7
9.9
.9
2.9
3.8
5.8
9.7
12.3
Prime
Prime
Prime
Prime
Prime
Prime
Prime
*
*
Months
26 Total long term
3,451,808
205
44
10.44
.19
9.54-11.30
62.7
17.6
Prime
27 Fixed rate (thousands of dollars)...
28 1-99
29 100-499
30 500-999
31 1000 and over
1,349,955
142,752
116,774
66,310
1,024,120
183
22
236
698
7,391
42
60
60
36
38
9.92
11.53
11.06
10.87
9.50
.24
.33
.20
.47
.23
8.68-10.92
11.02-12.40
9.96-12.13
9.42-12.13
8.42-10.38
65.4
23.9
25.4
30.8
78.0
14.9
1.0
1.8
.0
19.4
Other
Prime
Prime
Prime
Fed funds
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
2,101,853
204,847
379,400
171,316
1,346,290
222
28
228
672
4,531
44
49
49
42
43
10.77
11.59
11.03
10.64
10.59
.20
.15
.09
.16
.21
9.96-11.57
11.02-12.13
10.47-11.57
10.20-11.19
9.85-11.46
60.9
30.3
42.7
60.7
70.7
19.3
1.4
9.8
14.2
25.3
Prime
Prime
Prime
Prime
Prime
9.50
9.50
9.64
9.51
75.3
80.2
84.8
68.5
3.3
8.4
22.5
15.0
Loan rate (percent)
Days
LOANS MADE BELOW PRIME 1 2
Overnight8
One month and under
Over one9 month and under a year
Demand
•
Effective4
Nominal10
8.41
8.46
8.75
8.38
.it
Prime rate
10,332,162
5,495,766
3,765,735
5,466,503
7,575
4,923
668
1,995
13
125
*
8.78
8.82
9.07
8.59
41 Total short term
25,060,166
2,308
28
8.79
8.47
9.52
76.3
9.9
42 Fixed rate
43 Floating rate
20,171,775
4,888,391
2,822
1,318
19
114
8.80
8.77
8.46
8.48
9.51
9.60
77.2
72.9
9.4
12.0
37
38
39
40
Months
44 Total long term
950,417
624
34
8.87
8.60
9.56
91.4
5.5
45 Fixed rate
46 Floating rate ..
553,164
397,253
664
577
36
32
8.64
9.18
8.44
8.81
9.53
9.60
89.7
93.8
6.1
4.8
For notes see end of table.
Financial Markets
4.23—Continued
A. Commercial and Industrial Loans2—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity3
Days
Loan rate (percent)
Weighted
average
effective4
Standard
error 5
Interquartile
range6
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
LARGE BANKS
1 Overnight8
8,980,522
8.91
8.53-9.14
71.1
3.6
2 One month and under
Fixed rate
3
4
Floating rate
4,789,534
3,813,568
975,967
3,023
4,411
1,356
15
14
19
9.13
9.02
9.53
8.45-9.36
8.40-9.24
8.63-10.34
87.4
85.7
94.1
6.6
6.8
5 Over one month and under a year .
6
Fixed rate
7
Floating rate
5,558,962
3,600,813
1,958,149
835
1,760
425
113
87
9.85
9.79
9.97
9.11-10.47
9.21-10.47
8.79-10.95
86.5
86.3
87.0
20.4
21.4
18.7
8 Demand 9
9
Fixed rate
10 Floating rate
10,846,970
2,345,821
8,501,149
644
3,792
524
10.12
8.89
10.47
8.64-11.02
8.37-9.38
9.00-11.46
76.5
87.2
73.5
16.3
40.2
9.7
11 Total short term
30,175,989
1,144
9.55
8.60-10.20
78.5
11.8
12 Fixed rate (thousands of dollars)...
13
1-24
14 25-49
15 50-99
16
100-499
17 500-999
18 1000 and over
18,740,724
9,440
10,696
23,122
134,925
180,899
18,381,642
3,877
9.10
11.36
8.53-9.45
10.52-12.03
10.63-12.02
9.96-11.47
9.27-10.92
9.07-10.40
8.53-9.41
79.0
29.1
32.7
37.9
12.3
.3
.0
66.1
3.1
74.6
79.2
10.2
19 Floating rate (thousands of dollars)
20
1-24
21 25-49
22 50-99
23
100-499
24 500-999
25
1000 and over
11,435,264
75,948
112,215
215,149
1,172,111
787,149
9,072,692
77.6
84.7
84.6
86.9
87.1
89.4
75.0
10.9
10.60
10.17
8.89-11.07
10.47-12.13
10.47-12.10
10.47-11.63
9.96-11.46
9.92-11.30
8.64-11.02
161
23
10
81
32
66
73
72
66
52
11.22
114
142
134
141
135
127
109
10.30
11.38
11.29
11.13
218
690
7,762
531
11
34
66
211
667
5,710
22
10.86
10.07
9.80
9.08
10.82
5.7
1.6
12.4
.6
.6
1.1
4.1
6.0
12.7
Months
1,567,629
847
9.79
8.70-10.38
81.7
9.2
27 Fixed rate (thousands of dollars)...
28
1-99
29
100-499
30 500-999
31
1000 and over
745,120
7,408
21,977
19,531
696,204
1,679
8.37-10.15
11.30-12.96
9.96-11.40
9.25-11.40
8.37-9.92
83.7
48.5
31.2
58.7
86.5
17.2
4.9
295
719
12,362
9.38
12.25
10.74
10.39
9.27
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35 500-999
36
1000 and over
822,509
25,806
94,858
66,310
635,534
584
35
11.68
10.17
9.49-10.92
10.47-12.68
10.20-11.57
10.20-11.30
8.73-10.52
79.9
68.3
70.4
69.1
82.9
2.0
.8
69.6
87.4
26 Total long term
26
11.04
10.70
9.92
212
657
5,339
2.0
.0
18.3
5.8
4.6
1.2
Loan rate (percent)
Days
Effective4
Nominal
LOANS MADE BELOW PRIME 12
Overnight8
One month and under
Over one month and under a year
Demand 9
8,389,197
4,085,120
2,631,792
4,406,948
7,868
6,078
4,537
4,998
41 Total short term
19,513,057
6,097
42 Fixed rate
43 Floating rate
15,604,762
3,908,296
6,338
5,295
37
38
39
40
8.62
8.43
9.50
9.50
9.50
9.50
66.3
3.8
7.1
23.1
15.4
8.78
8.46
9.50
75.1
9.7
8.81
8.66
8.48
8.39
9.50
9.50
76.7
68.5
9.9
9.2
8.81
8.57
9.50
94.5
4.6
8.45
8.73
9.50
9.50
91.3
8.0
8.80
13
125
17
110
8.79
8.43
8.43
8.66
88.1
Months
44 Total long term
45 Fixed rate
46 Floating rate ..
For notes see end of table.
726,379
414,576
311,804
5,184
6,750
3,963
34
8.61
9.08
.1
A73
All
Special Tables • January 1989
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 1988'—Continued
A. Commercial and Industrial Loans—Continued 2
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity3
Days
Loan rate (percent)
Weighted
average
effective4
Standard
error5
Interquartile
range6
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
OTHER BANKS
1 Overnight8
2,005,859
1,874
2 One month and under
3 Fixed rate
4 Floating rate
1,943,906
1,541,517
402,389
230
286
132
5 Over one month and under a year .
6 Fixed rate
7 Floating rate
3,921,939
1,588,804
2,333,136
60
44
78
8 Demand9
9 Fixed rate
10 Floating rate
6,642,782
761,814
5,880,968
11 Total short term
8.74
8.44-9.01
99.8
15
8.84-9.93
8.84-9.36
9.37-11.02
61.2
10.2
22
9.47
9.31
10.08
56.6
78.9
10.0
149
106
179
10.63
10.24
10.90
9.84-11.47
8.82-11.46
9.92-11.51
63.8
50.1
73.1
9.6
10.1
9.3
175
105
110
10.52
8.87
10.73
9.92-11.30
8.54-9.71
9.92-11.35
90.2
61.5
93.9
8.5
11.7
14,514,486
107
10.16
8.97-11.02
80.5
8.0
12 Fixed rate (thousands of dollars)...
13 1-24
14 25-49
15 50-99
16 100-499
17 500-999
18 1000 and over
5,897,784
258,271
153,990
186,183
455,578
231,431
4,612,331
127
7
31
64
8.49-9.79
11.07-12.75
10.52-12.75
9.89-12.01
9.92-11.19
8.82-11.57
8.48-9.20
70.2
7.2
644
5,204
9.31
11.91
11.59
10.83
10.45
9.93
19 Floating rate (thousands of dollars)
20 1-24
21 25-49
22 50-99
23 100-499
24 500-999
25 1000 and over
8,616,702
424,502
457,913
800,183
2,528,853
948,057
3,457,193
97
9
34
67
195
650
2,862
10.75
11.75
11.51
11.31
10.99
10.55
10.27
9.92-11.35
11.02-12.40
10.93-12.13
10.75-12.13
9.96-11.57
9.92-11.02
9.92-10.92
87.6
73.1
79.7
82.4
181
16
38
102
126
109
84
51
23
156
161
165
158
170
143
146
21.2
30.5
50.9
40.2
46.6
79.2
86.6
88.6
92.0
11.0
8.0
.0
.2
.1
1.3
10.8
8.6
8.5
1.0
3.4
4.5
6.6
12.8
11.3
Months
26 Total long term
1,884,179
126
10.98
10.38-11.63
46.8
27 Fixed rate (thousands of dollars)...
28 1-99
29 100-499
30 500-999
31 1000 and over
604,835
135,344
94,797
46,779
327,916
87
21
226
689
3,987
10.58
11.49
11.14
11.06
9.97
10.00-11.43
11.02-12.40
9.93-12.13
10.92-12.13
8.47-10.50
42.9
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
1,279,344
179,041
284,542
105,005
710,756
159
28
233
682
3,991
11.16
10.65-11.78
11.02-12.13
10.47-11.63
10.24-11.02
10.79-11.78
48.6
24.8
33.5
55.4
59.7
11.58
11.03
10.60
11.19
22.6
24.1
19.1
60.1
12.2
.8
1.7
.0
21.6
30.4
1.5
11.1
20.3
46.9
Loan rate (percent)
Days
Prime rate
Effective4
Nominal10
8.68
8.90
9.28
8.48
8.32
8.54
8.94
8.15
9.50
9.51
9.95
9.56
100.0
59.1
77.2
77.6
21.1
8.82
8.47
9.61
80.7
10.4
8.74
9.19
8.39
8.83
10.00
9.52
78.6
90.2
7.6
23.5
9.03
8.68
9.76
81.3
8.5
8.73
9.53
8.40
9.13
9.64
9.96
84.8
75.7
.3
21.7
LOANS MADE BELOW PRIME 12
Overnight8
One month and under
Over one month and under a year
Demand9
1,942,964
1,410,647
1,133,943
1,059,555
6,524
3,176
224
570
41 Total short term
5,547,109
724
42 Fixed rate
43 Floating rate
4,567,013
980,095
975
330
37
38
39
40
14
125
25
127
1.2
12.3
13.5
Months
44 Total long term
224,038
162
45 Fixed rate
46 Floating rate
138,589
85,449
179
140
For notes see end of table.
33
Financial Markets
A75
4.23—Continued
B. Construction and Land Development Loans'
Loan rate (percent)
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average maturity
(months)3
Weighted
average
effective4
Standard
error 5
Interquartile
range6
Loans made
under commitment
(percent)
Participation
loans
(percent)
ALL BANKS
1
Total
3,565,113
179
11
10.54
.15
9.92-11.04
89.4
22.4
2
3
4
Fixed rate (thousands of dollars)
1,453,594
43,845
69,156
44,427
177
9
38
62
6
21
11
10.09
11.92
11.64
.30
.20
.22
9.52-10.45
11.36-12.75
11.46-11.57
85.8
64.3
58.5
23.1
.0
.0
143,434
1,152,732
215
8,431
14
22
3
12.33
10.84
9.75
.37
.29
.87
12.19-12.75
8.66-11.57
9.52-10.23
32.5
20.6
98.4
.0
1.5
28.9
8 Floating rate (thousands of dollars) . . .
9
1-24
10 25-49
11
50-99
1?
100-499
13 500 and over
2,111,519
52,745
65,978
109,828
565,492
1,317,476
180
10
38
69
228
2,782
15
9
9
13
17
15
10.84
11.52
12.15
11.50
11.06
10.60
.12
.08
.24
.15
.08
.11
10.47-11.33
11.02-12.13
11.02-14.17
11.02-11.85
10.75-11.57
10.27-11.02
91.8
92.5
64.2
86.1
94.6
92.5
21.9
2.1
2.4
1.9
2.5
33.6
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
784,307
235,273
2,545,532
67
214
357
12
11
10
11.12
11.13
10.30
.17
.20
.16
10.92-11.57
10.45-11.57
9.63-10.75
85.0
85.2
91.1
2.2
.4
30.6
2,166,922
1,032
6
10.15
.21
9.63-10.55
98.5
33.5
1,113,385
834
2,186
2,068
9,052
1,099,245
3,430
9
36
75
203
10,938
3
11
2
14
5
3
9.79
11.09
10.67
10.50
10.06
9.78
.22
.36
.49
.34
.31
9.52-10.23
10.86-11.30
9.92-11.02
9.92-11.57
9.39-10.47
9.52-10.23
99.7
68.0
83.2
66.8
80.9
100.0
30.1
.0
.0
.0
23.6
30.3
10
8 Floating rate (thousands of dollars) . . .
1-24
25-49
11
50-99
1?
100-499
13 500 and over
1,053,537
5,769
12,154
18,838
82,499
934,278
593
11
36
71
217
3,423
11
9
17
19
18
11
10.53
11.41
11.13
11.06
10.89
10.47
.17
.14
.14
.16
.12
.16
10.10-11.02
11.02-12.01
10.75-11.57
10.69-11.57
10.47-11.30
10.10-10.75
97.1
88.9
94.1
95.2
97.5
97.2
37.0
4.1
2.3
4.1
10.2
40.7
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
82,354
146,154
1,938,413
164
501
1,485
12
5
6
11.13
10.68
10.07
.30
.18
.19
10.75—11.57
10.34-11.02
9.52-10.47
97.5
83.4
99.6
36.8
1,398,191
78
18
11.14
.15
10.61-11.57
75.3
5.1
340,209
43,011
66,970
42,359
134,382
43
9
38
61
216
17
21
11
14
23
11.08
11.94
11.67
12.42
10.89
.57
.26
.13
.27
.30
10.75-12.19
11.46-12.75
11.46-11.57
12.68-12.75
8.66-11.57
40.1
64.3
57.7
30.9
16.6
.0
.0
.0
.0
.0
1,057,982
46,976
53,824
90,990
482,993
383,199
106
10
38
68
230
1,910
19
9
8
12
16
23
11.16
11.54
12.39
11.59
11.09
10.93
.09
.10
.42
.24
.06
.11
10.61-11.57
11.02-12.13
11.02-14.17
11.02-12.13
10.75-11.57
10.52-11.04
86.6
92.9
57.4
84.3
94.1
80.9
6.8
1.9
2.4
1.4
1.2
16.3
701,953
89,119
607,119
63
110
104
12
17
22
11.12
11.87
11.06
.20
.31
.20
11.02-11.57
11.02-13.03
10.52-11.57
83.5
88.3
63.8
11.0
1-24
25-49
50-99
100-499
500 and over
6
7
LARGE BANKS 1 3
Total
1
2 Fixed rate (thousands of dollars)
1-24
4 25-49
5 50-99
6
100-499
7 500 and over
9
.17
15.3
.4
OTHER BANKS 1 3
Total
1
2 Fixed rate (thousands of dollars)
3
1-24
4
25-49
5 50-99
6
100-499
7 500 and over
Floating rate (thousands of dollars) . . .
1-24
25-49
50-99
1?
100-499
13 500 and over
8
9
10
11
By type of construction
14 Single family
15 Multifamily
16 Nonresidential
For notes see end of table.
*
*
*
*
*
*
*
*
.6
.4
All
Special Tables • January 1989
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 1988'—Continued
C. Loans to Farmers 14
Size class of loans (thousands)
Characteristic
$25-49
$10-24
$50-99
$100-249
$250
and over
All sizes
$1-9
$1,100,644
46,891
7.0
$105,658
29,014
6.1
$152,673
10,106
6.5
$145,694
4,385
6.4
$125,963
1,920
8.2
$167,437
1,133
5.2
$403,220
333
8.0
11.50
.52
10.77-12.19
11.84
.18
11.30-12.29
11.66
.34
11.02-12.22
11.46
.31
10.52-12.16
11.75
.32
11.27-12.28
11.53
.38
10.77-12.28
11.27
.79
10.38-11.85
11.25
12.36
11.52
11.57
11.75
10.96
11.64
11.86
11.85
11.99
11.88
11.89
11.15
11.52
11.75
11.54
11.26
11.69
11.03
12.39
11.51
12.03
11.71
10.81
11.48
11.35
11.39
62.1
47.1
43.2
43.5
12.8
8.9
58.2
3.3
3.7
13.1
ALL BANKS
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)3
4 Weighted average interest rate (percent)4
5 Standard error
6 Interquartile rante
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
1
8
9
10
11
12
Percentage of amount of loans
13 With floating rates
14 Made under commitment
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
15
16
17
18
19
20
LARGE BANKS
4 Weighted average interest rate (percent)4
5 Standard error
6 Interquartile rante
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
OTHER BANKS
4 Weighted average interest rate (percent)4
5 Standard error5 6
6 Interquartile rante
11.52
10.31
47.8
41.5
46.5
53.8
55.0
49.9
54.9
55.0
83.2
43.5
9.7
4.4
69.7
5.3
1.8
9.2
10.0
3.5
67.8
7.2
.9
10.6
27.7
5.0
57.5
$321,304
5,177
7.1
$9,582
2,509
5.2
10.71
.48
9.92-11.50
11.83
.11
11.30-12.35
11.04
10.49
10.65
11.46
10.59
10.62
11.25
12.38
11.83
12.65
11.50
12.07
81.4
85.6
91.1
88.2
18.8
5.6
42.1
.7
1.1
31.8
7.2
1.8
78.1
2.1
2.0
8.8
67.7
3.3
2.7
15.6
$779,340
41,713
6.9
$96,077
26,505
6.2
11.82
.16
11.34-12.28
11.85
.13
11.30-12.29
11.67
11.84
11.86
11.96
7
8
9
10
11
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
11.40
12.78
11.75
11.58
11.85
12
Other
11.81
*
*
*
*
11.80
14.5
*
*
*
*
*
9.4
10.9
*
*
43.8
55.1
*
*
*
*
57.7
4.8
9.6
13.3
18.9
$16,875
1,154
6.8
$21,194
620
6.3
$20,665
305
9.3
$58,626
385
7.8
$194,362
204
7.0
11.47
.30
10.92-12.13
11.33
.27
10.75-12.01
11.34
.17
10.78-12.01
11.10
.22
10.38-11.91
10.33
.64
9.92-10.79
11.05
11.33
11.49
11.21
11.43
*
11.44
12.02
11.51
11.70
*
*
10.12
10.72
*
#
*
*
*
*
*
10.81
11.52
*
11.26
11.69
11.55
11.44
10.31
94.7
91.3
94.2
90.9
99.1
95.9
94.3
94.7
72.6
80.5
8.0
20.0
5.4
55.4
55.6
*
*
15.3
*
33.1
48.9
*
*
*
*
19.5
22.1
*
*
*
15.1
23.2
24.4
$135,798
8,952
6.5
$124,499
3,765
6.5
$105,298
1,615
8.0
$108,811
747
4.4
*
11.68
.14
11.04-12.28
11.48
.13
10.52-12.19
11.83
.27
11.30-12.28
11.77
.30
10.92-12.34
*
*
*
*
*
14
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)
For notes see end of table.
*
*
11.92
14
1 Amount of loans (thousands of dollars)
2 Number of loans
3 Weighted average maturity (months)
7
8
9
10
11
12
*
*
11.00
11.16
*
*
11.79
11.52
*
11.54
11.56
*
*
*
*
*
*
*
*
*
11.87
11.69
*
*
*
39.3
Financial Markets
All
4.23—Continued
C. Loans to Farmers14—Continued
Size class of loans (thousands)
Characteristic
Percentage of amount of loans
13 With floating rates
14 Made under commitment
15
16
17
18
19
20
By purpose of loan
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
All sizes
$1-9
$10-24
$25-49
$50-99
$100-249
54.1
31.2
38.5
39.0
42.0
35.3
38.4
47.5
46.3
40.8
*
10.3
10.2
64.9
4.4
4.8
5.3
9.9
4.7
68.8
5.6
10.3
29.0
*
*Fewer than 10 sample loans.
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. A subsample of 250
banks also report loans to farmers. The sample data are blown up to estimate the
lending terms at all insured commercial banks during that week. The estimated
terms of bank lending are not intended for use in collecting the terms of loans
extended over the entire quarter or residing in the portfolios of those banks.
Construction and land development loans include both unsecured loans and loans
secured by real estate. Thus, some of the construction and land development
loans would be reported on the statement of condition as real estate loans and the
remainder as business loans. Mortgage loans, purchased loans, foreign loans, and
loans of less than $1,000 are excluded from the survey.
As of Dec. 31, 1987, assets of most of the large banks were at least $6.0 billion.
For all insured banks total assets averaged $220 million.
2. Beginning with the August 1986 survey respondent banks provide information on the type of base rate used to price each commercial and industrial loan
made during the survey week. This reporting change is reflected in the new
column on the most common base pricing rate in table A and footnote 13 from
table B.
3. Average maturities are weighted by loan size and exclude demand loans.
4. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loan and weighted by loan size.
5. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by
acomplete survey of lending at all banks.
*
67.9
7.7
*
*
57.9
41.5
9.9
•
*
*
*
*
9.3
*
*
*
$250
and over
*
*
*
6. The interquartile range shows the interest rate range that encompasses the
middle 50 percent of the total dollar amount of loans made.
7. The most common base rate is that rate used to price the largest dollar
volume of loans. Base pricing rates include the prime rate (sometimes referred to
as a bank's "basic" or "reference" rate); the federal funds rate; domestic money
market rates other than the federal funds rate; foreign money market rates; and
other base rates not included in the foregoing classifications.
8. Overnight loans are loans that mature on the following business day.
9. Demand loans have no stated date of maturity.
10. Nominal (not compounded) annual interest rates are calculated from survey
data on the stated rate and other terms of the loan and weighted by loan size.
11. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
12. The proportion of loans made at rates below prime may vary substantially
from the proportion of such loans outstanding in banks' portfolios.
13. 58.5 percent of construction and land development loans were priced
relative to the prime rate.
14. Among banks reporting loans to farmers (Table C), most "large banks"
(survey strata 1 to 3) had over $600 million in total assets, and most "other banks"
(survey strata 4 to 6) had total assets below $600 million.
The survey of terms of bank lending to farmers now includes loans secured by
farm real estate. In addition, the categories describing the purpose of farm loans
have now been expanded to include "purchase or improve farm real estate." In
previous surveys, the purpose of such loans was reported as "other."
A78
4.30
Special Tables • January 1989
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1988
Millions of dollars
All states2
Item
1 Total assets4
Total
including
IBFs
New York
IBFs
only3
Total
including
IBFs
California
IBFs
only3
Total
including
IBFs
Illinois
Total
including
IBFs
IBFs
only3
IBFs
only3
478,436
227,580
348,858
178,352
73,498
31,635
31,775
10,090
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4 Cash items in process of collection and unposted
debits
5 Currency and coin (U.S. and foreign)
6 Balances with depository institutions in United States
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
Other depository institutions in United States
8
(including their IBFs)
9 Balances with banks in foreign countries and with
foreign central banks
Foreign branches of U.S. banks
10
Other banks in foreign countries and foreign central
11
banks
12 Balances with Federal Reserve Banks
434,873
111,718
190,751
94,276
318,808
90,546
150,366
75,984
64,989
10,270
25,897
9,601
31,747
8,222
9,758
6,731
441
27
60,488
0
n.a.
45,126
392
20
48,593
0
n.a.
35,760
30
2
5,758
0
n.a.
5,194
4
2
4,970
0
n.a.
3,586
53,599
42,958
43,113
33,848
5,311
5,091
4,264
3,453
6,889
2,168
5,480
1,911
446
103
706
133
49,655
1,769
49,150
1,646
40,667
1,493
40,224
1,383
4,421
124
4,407
123
3,163
111
3,145
106
47,886
1,108
47,504
n.a.
39,174
874
38,841
n.a.
4,297
60
4,283
n.a.
3,052
83
3,039
n.a.
13 Total securities and loans
262,271
89,257
179,860
68,880
45,042
15,185
21,872
2,700
34,875
6,657
10,014
n.a.
28,068
6,186
7,725
n.a.
4,341
279
1,863
n.a.
1,309
126
291
n.a.
14 Total securities, book value
15 U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures and corporate stock
(including state and local securities)
4,066
n.a.
4,031
n.a.
24,152
10,014
17,851
7,725
4,027
1,863
1,183
291
16,168
9,394
2,741
4,033
1,732
797
27
908
15,259
8,823
2,552
3,884
1,377
578
27
773
322
257
54
11
75
75
0
0
132
98
30
3
56
56
0
0
227,617
221
227,395
79,346
103
79,243
151,899
107
151,792
61,192
37
61,155
40,802
101
40,701
13,388
65
13,322
20,569
7
20,563
2,409
0
2,409
17,600
62,208
32,455
29,274
3,181
179
44,298
16,487
15,586
901
9,204
44,996
22,440
19,726
2,714
153
31,146
10,239
9,580
659
3,670
13,004
8,141
7,809
332
19
10,154
5,377
5,201
177
2,541
2,569
1,599
1,516
83
0
1,707
776
711
65
140
29,612
751
28,862
5,765
20
27,791
689
27,102
510
65
22,491
628
21.863
3,765
20
20,887
567
20,320
420
40
4,823
62
4,761
865
0
4,777
62
4,715
37
25
945
58
887
690
0
931
58
874
35
118,054
95,909
22,145
878
340
537
17,833
290
17,543
17
0
17
73,569
55,554
18,015
679
231
448
14,939
235
14,704
12
0
12
21,276
18,677
2,599
163
92
72
2,089
52
2,037
0
0
0
14,272
13,736
537
6
1
5
441
0
441
5
0
5
17,948
16,306
15,699
14,348
1,119
1,086
242
221
2,955
2,210
23
180
2,281
1,705
19
154
638
66
0
3
0
249
0
0
44,715
29,367
19,517
9,849
5,486
n.a.
n.a.
n.a.
33,142
21,113
11,929
9,184
4,126
n.a.
n.a.
n.a.
9,356
7,075
6,664
410
1,037
n.a.
n.a.
n.a.
1,521
827
818
9
271
n.a.
n.a.
n.a.
15,348
43,563
5,486
36,829
12,029
30,050
4,126
27,986
2,281
8,508
1,037
5,738
694
28
271
333
43,563
n.a.
30,050
n.a.
8,508
n.a.
n.a.
36,829
n.a.
27,986
n.a.
5,738
n.a.
52 Total liabilities4
478,436
227,580
348,858
178,352
73,498
31,635
31,775
10,090
53 Liabilities to nonrelated parties
413,507
197,857
314,022
156,881
66,800
28,674
18,268
5,869
18 Federal funds sold and securities purchased under
agreements to resell
19 U.S branches and agencies of other foreign banks
20 Commercial banks in United States
21 Other
22 Total loans, gross
23 Less: Unearned income on loans
24 Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27 Commercial banks in United States (including IBFs) .
U.S. branches and agencies of other foreign banks .
28
Other commercial banks in United States
29
30 Other depository institutions in United States
(including IBFs)
31 Banks in foreign countries
32
Foreign branches of U.S. banks
Other banks in foreign countries
33
34 Other financial institutions
35 Commercial and industrial loans
36 U.S. addressees (domicile)
37 Non-U.S. addressees (domicile)
38 Acceptances of other banks
39 U.S. banks
40 Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities
(secured and unsecured)
43 All other loans
44 All other assets
45 Customers' liability on acceptances outstanding
U.S. addressees (domicile)
46
Non-U.S. addressees (domicile)
47
48 Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions5
50 Net due from head
office and other related depository
institutions5
51 Net due from establishing entity, head offices,
and other related depository institutions5
34
n.a.
0
28
n.a.
n.a.
333
U.S. Branches and Agencies
A79
4.30—Continued
Millions of dollars
All states2
Item
54 Total deposits and credit balances
55 Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58 Commercial banks in United States (including IBFs) .
59
U.S. branches and agencies of other foreign banks .
60
Other commercial banks in United States
61 Banks in foreign countries
62
Foreign branches of U.S. banks
Other banks in foreign countries
63
64 Foreign governments and official institutions
(including foreign central banks)
65 All other deposits and credit balances
66 Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
68 Individuals, partnerships, and corporations
69
U.S. addressees (domicile)
70
Non-U.S. addressees (domicile)
71 Commercial banks in United States (including IBFs) .
72
U.S. branches and agencies of other foreign banks .
73
Other commercial banks in United States
74 Banks in foreign countries
75
Foreign branches of U.S. banks
76
Other banks in foreign countries
77 Foreign governments and official institutions
(including foreign central banks)
78 All other deposits and credit balances
79 Certified and official checks
80 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs) .
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
91 All other deposits and credit balances
92 Certified and official checks
81
82
83
84
85
86
87
88
89
90
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94 Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
%
Non-U.S. addressees (domicile)
97 Commercial banks in United States (including IBFs) .
98
U.S. branches and agencies of other foreign banks .
99
Other commercial banks in United States
100 Banks in foreign countries
101
Foreign branches of U.S. banks
Other banks in foreign countries
102
103 Foreign governments and official institutions
(including foreign central banks)
104 All other deposits and credit balances
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109 Commercial banks in United States (including IBFs) .
110
U.S. branches and agencies of other foreign banks .
Other commercial banks in United States
111
112 Banks in foreign countries
Foreign branches of U.S. banks
113
114
Other banks in foreign countries
115 Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
Total
excluding
IBFs
New York
IBFs
only3
Total
excluding
IBFs
IBFs
only3
Total
excluding
IBFs
60,583
46,828
35,564
11,264
9,491
3,165
6,326
2,283
255
2,028
154,436
13,166
138
13,028
51,427
45,124
6,303
79,264
7,469
71,795
49,756
36,952
29,612
7,341
8,809
2,620
6,189
2,164
235
1,929
136,410
8,525
134
8,391
44,743
39,222
5,521
72,884
6,217
66,667
2,184
2,062
607
1,455
28
6
21
36
20
16
840
637
504
10,436
143
n.a.
783
624
423
10,116
143
n.a.
24
1
33
6,592
4,294
2,824
1,469
265
90
175
900
49
852
n.a.
5,488
3,360
2,310
1,050
258
90
168
843
49
794
Illinois
California
n.a.
247
204
159
46
0
0
0
6
0
6
IBFs
only3
Total
excluding
IBFs
9,373
518
0
518
4,671
4,158
513
4,066
732
3,334
3,409
2,748
2,484
264
637
538
99
2
0
2
118
0
2
2
18
n.a.
n.a.
220
1%
192
4
0
0
0
2
0
2
398
231
504
381
222
423
4
1
33
2
I
18
5,563
3,706
2,448
1,258
92
18
74
795
49
747
4,722
3,031
2,062
969
87
18
69
740
49
691
189
146
119
27
0
0
0
5
0
5
205
182
179
3
0
0
0
2
0
2
n.a.
n.a.
n.a.
337
128
504
321
120
423
3
0
33
2
1
18
53,991
42,534
32,740
9,794
9,226
3,075
6,151
1,383
206
1,177
44,268
33,592
27,302
6,290
8,551
2,530
6,021
1,321
186
1,135
1,937
1,858
448
1,409
27
6
21
30
20
10
3,189
2,552
2,292
260
636
538
99
0
0
0
n.a.
442
406
n.a.
n.a.
20
1
402
403
154,436
13,166
138
13,028
51,427
45,124
6,303
79,264
7,469
71,795
10,436
143
n.a.
n.a.
136,410
8,525
134
8,391
44,743
39,222
5,521
72,884
6,217
66,667
10,116
143
n.a.
IBFs
only3
3,437
85
2
83
1,526
1,305
221
1,809
447
1,362
18
0
n.a.
n.a.
n.a.
n.a.
0
1
9,373
518
0
518
4,671
4,158
513
4,066
732
3,334
118
0
n.a.
3,437
85
2
83
1,526
1,305
221
1,809
447
1,362
18
0
A78
4.30
Special Tables • January 1989
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1 9 8 8 C o n t i n u e d
Millions of dollars
All states2
Item
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
Federal funds purchased and securities sold under
agreements to repurchase
U.S. branches and agencies of other foreign banks . . .
Other commercial banks in United States
Other
Other borrowed money
Owed to nonrelated commercial banks in United States
(including IBFs)
Owed to U.S. offices of nonrelated U.S. banks
Owed to U.S. branches and agencies of
nonrelated foreign banks
Owed to nonrelated banks in foreign countries
Owed to foreign branches of nonrelated U.S. banks ..
Owed to foreign offices of nonrelated foreign banks...
Owed to others
Total
including
IBFs
California
New York
Total
including
IBFs
IBFs
only3
Total
including
IBFs
IBFs
only3
Illinois
Total
including
IBFs
IBFs
only3
IBFs
only3
54,221
11,039
21,730
21,452
99,122
2,005
446
74
1,485
36,648
39,926
7,697
13,340
18,889
55,058
1,415
134
39
1,242
15,395
9,865
2,496
5,611
1,758
35,132
326
197
30
99
18,123
3,749
726
2,399
624
6,347
94
40
0
54
2,138
65,654
29,832
16,871
2,727
33,942
18,649
3,856
715
25,135
7,880
11,433
1,646
4,369
2,550
805
60
35,823
18,512
2,769
15,743
14,955
14,144
17,843
2,650
15,193
1,934
15,293
10,167
1,031
9,136
10,950
3,141
9,653
985
8,669
1,886
17,254
6,691
1,427
5,264
3,306
9,787
6,675
1,426
5,248
15
1,819
1,386
217
1,169
591
745
1,300
147
1,153
33
All other liabilities
Branch or agency liability on acceptances executed
and outstanding
Other liabilities to nonrelated parties
45,146
4,769
32,872
3,661
10,246
853
1,325
32,730
12,416
n.a.
n.a.
3,661
8,734
1,512
n.a.
4,769
22,656
10,216
853
845
480
Net due to related depository institutions5
Net due to head office and 5other related
depository institutions
Net due to establishing entity, head
office, and other
related depository institutions5
64,929
29,722
34,836
21,471
6,698
2,961
13,507
64,929
n.a.
34,836
n.a.
6,698
n.a.
13,507
n.a.
29,722
n.a.
21,471
n.a.
2,961
n.a.
4,221
n.a.
200
n.a.
200
4,221
MEMO
135
136
137
138
139
140
141
142
143
Non-interest bearing balances with commercial banks
in United States
Holding of commercial paper included in total loans . . . .
Holding of own acceptances included in commercial
and industrial loans
Commercial and industrial loans with remaining maturity
of one year or less
Predetermined interest rates
Floating interest rates
Commercial and industrial loans with remaining maturity
of more than one year
Predetermined interest rates
Floating interest rates
2,052
613
2,699
64,109
41,270
22,838
53,945
17,388
36,557
10
T
1
n.a.
1
t
10
1,817
363
1,625
36,500
22,283
14,217
37,069
11,129
25,940
|1
n.a.
1
1
T
110
153
802
11,835
8,435
3,400
9,441
3,889
5,552
0
I
|1
n.a.
1
1
T
63
77
144
9,599
6,531
3,068
4,673
1,810
2,864
0
f
|
J
n.a.
1
1
t
U.S. Branches and Agencies
A81
4.30—Continued
Millions of dollars
All states2
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than
12 months
Total
excluding
IBFs
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
t
1
9,546
n.a.
21,298
Total
including
IBFs
2
California
IBFs
only3
t
1
61,929
33,505
8,452
n.a.
19,973
New York
Total
including
IBFs
IBFs
only3
Total
excluding
IBFs
1,780
1,150
513
118
Illinois
IBFs
only3
t
1
n.a.
California
IBFs
only3
Total
including
IBFs
Total
excluding
IBFs
3,463
2,513
428
522
IBFs
only3
Total
including
IBFs
9,111
26,309
6,956
3,904
1,731
1,291
57,769
n.a.
29,597
n.a.
23,564
n.a.
3,059
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation "n.a." indicates
235
126
IBFs
only3
t
I
n.a.
Illinois
32,644
516
Total
excluding
IBFs
IBFs
only3
71,464
40,620
All states
New York
IBFs
only3
290
n.a.
52
that no IBF data are reported for that item, either because the item is not an
eligible IBF asset or liability or because that level of detail is not reported for
IBFs. From December 1981 through September 1985, IBF data were included in
all applicable items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, available through
the G.ll statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G.ll tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A82
Federal Reserve Board of Governors
ALAN GREENSPAN, Chairman
MANUEL H . JOHNSON, Vice Chairman
MARTHA R. SEGER
WAYNE D . ANGELL
OFFICE OF BOARD
DIVISION OF INTERNATIONAL
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
to the Board
to the Board
BOB STAHLY MOORE, Special Assistant to the Board
LEGAL
DIVISION
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
Secretary
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L . GARWOOD,
ROBERT F. GEMMILL, Staff Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
Director
RALPH W. SMITH, JR., Assistant
Director
DIVISION OF RESEARCH AND
MICHAEL J. PRELL,
MYRON L. KWAST, Assistant
Director
SUSAN J. LEPPER, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
DAVID J. STOCKTON, Assistant
Director
JOYCE K. ZLCKLER, Assistant
Director
LEVON H. GARABEDIAN, Assistant
Director
(Administration)
DIVISION OF MONETARY
DONALD L . KOHN,
DIVISION OF BANKING
SUPERVISION AND REGULATION
FREDERICK M. STRUBLE, Associate
Director
DAVID E. LLNDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D. PORTER, Assistant
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
OFFICE OF THE INSPECTOR
HERBERT A. BIERN, Assistant
GENERAL
Director
WILLIAM A. RYBACK, Deputy Associate Director
STEPHEN C. SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
Director
JOE M. CLEAVER, Assistant Director
Director
ROGER T. COLE, Assistant
JAMES I. GARNER, Assistant
Director
JAMES D. GOETZINGER, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
Suss AN, Assistant Director
LAURA M. HOMER, Securities Credit Officer
AFFAIRS
Director
DON E. KLINE, Associate Director
SIDNEY M .
Director
Director
GLENN E. LONEY, Assistant
Director
ELLEN MALAND, Assistant
Director
DOLORES S. SMITH, Assistant
Director
WILLIAM TAYLOR, Staff
STATISTICS
MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
Secretary
BARBARA R. LOWREY, Associate
Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SLEGMAN, Senior Associate Director
DAVID H. HOWARD, Deputy Associate Director
EDWARD C. ETTIN, Deputy
Director
THOMAS D. SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
OFFICE OF THE SECRETARY
WILLIAM W . WILES,
EDWIN M. TRUMAN, Staff
FINANCE
BRENT L. BOWEN, Inspector
General
A83
and Official Staff
H . ROBERT HELLER
JOHN P. L A WARE
EDWARD W . KELLEY, JR.
OFFICE OF
STAFF DIRECTOR FOR
S. DAVID FROST, Staff
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK
ACTIVITIES
MANAGEMENT
Director
THEODORE E. ALLISON, Staff
EDWARD T. MULRENIN, Assistant Staff Director
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN
MANAGEMENT
DAVID L . SHANNON,
DIVISION OF FEDERAL
BANK
OPERATIONS
CLYDE H . FARNSWORTH, JR.,
Director
CONTROLLER
GEORGE E . LIVINGSTON,
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant
DAVID L. WILLIAMS, Assistant
Director
Director
OFFICE OF THE EXECUTIVE
INFORMATION RESOURCES
ALLEN E. BEUTEL, Executive
DIRECTOR FOR
MANAGEMENT
Director
STEPHEN R. MALPHRUS, Deputy Executive Director
DIVISION
SYSTEMS
OF HARDWARE
BRUCE M . BEARDSLEY,
AND
SOFTWARE
Director
THOMAS C. JUDD, Assistant
Director
ELIZABETH B. RLGGS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION OF APPLICATIONS
STATISTICAL
SERVICES
WILLIAM R . JONES,
DEVELOPMENT
Director
DAY W. RADEBAUGH, Assistant
Director
RICHARD C. STEVENS, Assistant
PATRICIA A. WELCH, Assistant
Director
Director
Director
DAVID L. ROBINSON, Associate
Director
C. WILLIAM SCHLEICHER, JR., Associate
Director
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
JOHN H. PARRISH, Assistant
Director
LOUISE L. ROSEMAN, Assistant
Director
FLORENCE M . YOUNG,
DIVISION
RESERVE
RESOURCES
JOHN R. WEIS, Associate
Director
ANTHONY V. DLGLOIA, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
FRED HOROWITZ, Assistant
Director
OFFICE OF THE
Director
AND
Adviser
A84
Federal Reserve Bulletin • January 1989
Federal Open Market Committee
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN, Chairman
W A Y N E D . ANGELL
ROBERT P. BLACK
ROBERT P. FORRESTAL
E. GERALD CORRIGAN, Vice
H . ROBERT HELLER
W . LEE HOSKINS
MANUEL H . JOHNSON
ALTERNATE
ROGER GUFFEY
Chairman
EDWARD W . KELLEY, JR.
JOHN P. L A W A R E
ROBERT T . PARRY
MARTHA R . SEGER
MEMBERS
JAMES H . OLTMAN
SILAS KEEHN
THOMAS C. MELZER
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Assistant
Secretary
MICHAEL BRADFIELD, General Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,
EDWIN M . TRUMAN,
Economist
Economist
JOHN H. BEEBE, Associate
J. ALFRED BROADDUS, JR.,
PETER
D.
Economist
Associate Economist
Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account
STERNLIGHT,
SAM Y . C R O S S ,
FEDERAL ADVISORY
JOHN M. DAVIS, Associate
Economist
RICHARD G. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
SHEILA L. TSCHINKEL, Associate
Economist
COUNCIL
CHARLES T . FISHER, III,
President
BENNETT A. BROWN, Vice
President
B. KENNETH WEST, Seventh District
DONALD N. BRANDIN, Eighth District
J. TERRENCE MURRAY, First District
WILLARD C. BUTCHER, Second District
SAMUEL A. MCCULLOUGH, Third District
LLOYD P. JOHNSON, JR., Ninth District
THOMAS H. O'BRIEN, Fourth District
JORDAN L. HAINES, Tenth District
FREDERICK DEANE, JR., Fifth District
JAMES E. BURT III, Eleventh District
KENNETH L. ROBERTS, Sixth District
PAUL HAZEN, Twelfth District
HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A85
and Advisory Councils
CONSUMER ADVISORY
COUNCIL
STEVEN W. HAMM, Columbia, South Carolina, Chairman
EDWARD J. WILLIAMS, Chicago, Illinois, Vice Chairman
NAOMI G. ALBANESE, Greensboro, North Carolina
STEPHEN BROBECK, W a s h i n g t o n , D . C .
EDWIN B . BROOKS, JR., R i c h m o n d , Virginia
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KENNETH A. HALL, Picayune, Mississippi
ELENA G. HANGGI, Little Rock, Arkansas
THRIFT INSTITUTIONS
ADVISORY
LAWRENCE WINTHROP, P o r t l a n d , O r e g o n
COUNCIL
JAMIE J. JACKSON, Houston, Texas, President
GERALD M. CZARNECKI, Honolulu, Hawaii, Vice President
ROBERT S. DUNCAN, Hattiesburg, Mississippi
BETTY GREGG, Phoenix, Arizona
THOMAS A. KINST, Hoffman Estates, Illinois
RAY MARTIN, LOS Angeles, California
JOE C. MORRIS, Overland Park, Kansas
JOSEPH W . MOSMILLER, B a l t i m o r e , M a r y l a n d
JANET M . PAVLISKA, A r l i n g t o n , M a s s a c h u s e t t s
LOUIS H. PEPPER, Seattle, Washington
WILLIAM G. SCHUETT, Milwaukee, Wisconsin
DONALD B . SHACKELFORD, C o l u m b u s , O h i o
A86
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM.
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Consumer Handbook on Adjustable Rate Mortgages
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Federal Reserve Glossary
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Making Deposits: When Will Your Money Be Available?
A87
PAMPHLETS FOR FINANCIAL
INSTITUTIONS
Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies and creditors.
VESTIGATION, by Bonnie E. Loopesko. November
1983. Out of print.
134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: A REVIEW OF THE LITERATURE, b y
Ralph W. Tryon. October 1983. 14 pp. Out of print.
Limit of 50 copies
The Board of Directors' Opportunities in Community Reinvestment
The Board of Directors' Role in Consumer Law Compliance
Combined Construction/Permanent Loan Disclosure and
Regulation Z
Community Development Corporations and the Federal
Reserve
Construction Loan Disclosures and Regulation Z
Finance Charges Under Regulation Z
How to Determine the Credit Needs of Your Community
Regulation Z: The Right of Rescission
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
135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET
INTERVENTION: APPLICATIONS TO CANADA, GER-
MANY, AND JAPAN, by Deborah J. Danker, Richard A.
Haas, Dale W. Henderson, Steven A. Symansky, and
Ralph W. Tryon. April 1985. 27 pp. Out of print.
136. THE EFFECTS OF FISCAL POLICY ON THE U . S . ECON-
OMY, by Darrell Cohen and Peter B. Clark. January
1984. 16 pp. Out of print.
137. THE IMPLICATIONS FOR BANK MERGER POLICY OF
FINANCIAL DEREGULATION, INTERSTATE BANKING,
AND FINANCIAL SUPERMARKETS, b y S t e p h e n A .
Rhoades. February 1984. Out of print.
138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDELINES, AND THE LIMITS OF CONCENTRATION IN LOCAL
BANKING MARKETS, by James Burke. June 1984.14 pp.
Out of print.
139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN
THE UNITED STATES, by Thomas D. Simpson and
Patrick M. Parkinson. August 1984. 20 pp.
140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF
STAFF STUDIES:
Summaries Only Printed in the
Bulletin
Studies and papers on economic and financial subjects that
are of general interest. Requests to obtain single copies of
the full text or to be added to the mailing list for the series
may be sent to Publications Services.
Staff Studies 115-125 are out of print.
114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON COMPETITION AND PERFORMANCE IN
BANKING MARKETS, by Timothy J. Curry and John T.
Rose. Jan. 1982. 9 pp.
126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR-
KET INTERVENTION, by Donald B. Adams and Dale W.
Henderson. August 1983. 5 pp. Out of print.
127. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: JANUARY-MARCH 1975, b y Margaret L .
Greene. August 1984. 16 pp. Out of print.
128. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: SEPTEMBER 1977-DECEMBER 1979, b y Mar-
garet L. Greene. October 1984. 40 pp. Out of print.
129. U . S . EXPERIENCE WITH EXCHANGE MARKET INTERVENTION: OCTOBER 1980-OCTOBER 1981, b y Margaret
L. Greene. August 1984. 36 pp.
THE LITERATURE, by John D. Wolken. November 1984.
38 pp. Out of print.
141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAY-
MENT COSTS, by William Dudley. November 1984.
15 pp. Out of print.
142. MERGERS
AND
ACQUISITIONS
BY
COMMERCIAL
BANKS, 1960-83, by Stephen A. Rhoades. December
1984. 30 pp. Out of print.
143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF
THE ELECTRONIC F U N D TRANSFER ACT: RECENT SUR-
VEY EVIDENCE, by Frederick J. Schroeder. April 1985.
23 pp. Out of print.
144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CONSUMER CREDIT REGULATIONS: THE TRUTH IN LENDING AND EQUAL CREDIT OPPORTUNITY LAWS, b y
Gregory E. Elliehausen and Robert D. Kurtz. May
1985. 10 pp.
145. SERVICE CHARGES AS A SOURCE OF BANK INCOME
AND THEIR IMPACT ON CONSUMERS, b y G l e n n B .
Canner and Robert D. Kurtz. August 1985. 31 pp. Out
of print.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 ,
by Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA)
INDEXES OF THE MONETARY AGGREGATES, b y H e l e n
T. Farr and Deborah Johnson. December 1985. 42 pp.
130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERNATIONAL TRADE AND OTHER ECONOMIC VARIABLES:
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF
THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA-
A REVIEW OF THE LITERATURE, by Victoria S. Farrell
TION RESULTS, by Flint Brayton and Peter B. Clark.
December 1985. 17 pp.
with Dean A. DeRosa and T. Ashby McCown. January
1984. Out of print.
131. CALCULATIONS OF PROFITABILITY FOR U . S . DOLLARDEUTSCHE MARK INTERVENTION, b y L a u r e n c e R . Ja-
cobson. October 1983. 8 pp.
132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN EXCHANGE RATES AND INTERVENTION: A REVIEW OF THE TECHNIQUES AND LITERATURE, b y K e n -
neth Rogoff. October 1983. 15 pp.
133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVENTION, AND INTEREST RATES: A N EMPIRICAL IN-
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS
IN BANKING BEFORE AND AFTER ACQUISITION, b y
Stephen A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: A REEXAMINATION AND AN APPLICATION, b y
John T. Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT
PRICING FROM 1983 THROUGH 1985, b y Patrick I. M a -
honey, Alice P. White, Paul F. O'Brien, and Mary M.
McLaughlin. January 1987. 30 pp.
A88
152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, by C a r o l y n D . D a v i s and
Alice P. White. September 1987. 14 pp.
154. THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST
RATES, by Glenn B. Canner and James T. Fergus.
October 1987. 26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, b y M a r k J.
Warshawsky. November 1987. 25 pp.
156. INTERNATIONAL TRENDS FOR U . S . BANKS AND BANK-
ING MARKETS, by James V. Houpt. May 1988. 47 pp.
REPRINTS OF BULLETIN
ARTICLES
Most of the articles reprinted do not exceed 12 pages.
Limit of 10 copies
Foreign Experience with Targets for Money Growth. 10/83.
Intervention in Foreign Exchange Markets: A Summary of
Ten Staff Studies. 11/83.
A Financial Perspective on Agriculture. 1/84.
Survey of Consumer Finances, 1983. 9/84.
Bank Lending to Developing Countries. 10/84.
Survey of Consumer Finances, 1983: A Second Report.
12/84.
Union Settlements and Aggregate Wage Behavior in the
1980s. 12/84.
The Thrift Industry in Transition. 3/85.
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.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and
U.S. Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
U.S. International Transactions in 1987. 5/88.
Home Equity Lines of Credit. 6/88.
A89
Index to Statistical Tables
References are to pages A3-A81 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19, 20, 76
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20
Domestic finance companies, 36
Federal Reserve Banks, 10
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 21, 78-81
Automobiles
Consumer installment credit, 39, 40
Production, 49, 50
BANKERS acceptances, 9, 23, 24
Bankers balances, 18-20. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates 24
Branch banks, 21, 57, 82-85
Business activity, nonfinancial, 46
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 48
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 10
Central banks, discount rates, 69
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 16, 19, 72-74, 78-79
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20
Commercial and industrial loans, 16, 18, 19, 20, 21, 72-74
Consumer loans held, by type, and terms, 39, 40
Loans sold outright, 19
Nondeposit funds, 17
Real estate mortgages held, by holder and property, 38
Terms of lending, 72-77
Time and savings deposits, 3
Commercial paper, 23, 24, 36
Condition statements (See Assets and liabilities)
Construction, 46, 51, 73
Consumer installment credit, 39, 40
Consumer prices, 46, 48
Consumption expenditures, 53, 54
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 67
Cost of living (See Consumer prices)
Credit unions, 26, 39. (See also Thrift institutions)
Currency and coin, 18
Currency in circulation, 4, 13
Customer credit, stock market, 25
DEBITS to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 12
Deposits (See also specific types)
Banks, by classes, 3, 18-20, 21
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central
banks and foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 47
Eurodollars, 24
FARM mortgage loans, 38
Federal agency obligations, 4, 9, 10, 11, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 6, 17, 19, 20, 21, 24, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 30
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Savings and Loan Insurance Corporation insured
institutions, 26
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39, 40
Paper, 23, 24
Financial institutions
Loans to, 19, 20, 21
Selected assets and liabilities, 26
Float, 4
Flow of funds, 41,43, 44, 45
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 78-81
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 70
Foreign trade, 56
Foreigners
Claims on, 57, 59, 62, 63, 64, 66
Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68
A90
GOLD
Certificate account, 10
Stock, 4, 56
Government National Mortgage Association, 33, 37, 38
Gross national product, 53
HOUSING, new and existing units, 51
INCOME, personal and national, 46, 53, 54
Industrial production, 46, 49
Installment loans, 39, 40
Insurance companies, 26, 30, 38
Interest rates
Bonds, 24
Commercial banks, 72-77
Consumer installment credit, 40
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 69
Money and capital markets, 24
Mortgages, 37
Prime rate, 23
International capital transactions of United States, 55-69
International organizations, 59, 60, 62, 65, 66
Inventories, 53
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 26
Commercial banks, 3, 16, 18-20, 38
Federal Reserve Banks, 10, 11
Financial institutions, 26, 38
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 72-77
Federal Reserve Banks, 4, 5, 7, 10, 11
Financial institutions, 26, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 48
Production, 48, 50
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 50
Mobile homes shipped, 51
Monetary and credit aggregates, 3, 12
Money and capital market rates, 24
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 53
OPEN market transactions, 9
PERSONAL income, 54
Prices
Consumer and producer, 46, 52
Stock market, 25
Prime rate, 23
Producer prices, 46, 52
Production, 46, 49
Profits, corporate, 35
REAL estate loans
Banks, by classes, 16, 19, 20, 38
Real estate loans—Continued
Financial institutions, 26
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 6, 17, 19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 56
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 46
SAVING
Flow of funds, 41, 43, 44, 45
National income accounts, 53
Savings and loan associations, 26, 38, 39, 41. (See also
Thrift institutions)
Savings banks, 26, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 67
New issues, 34
Prices, 25
Special drawing rights, 4, 10, 55, 56
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 19, 20, 26
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 34
Prices, 25
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 3. (See also Credit unions and Savings
and loan associations)
Time and savings deposits, 3, 13, 17, 18, 19, 20, 21
Trade, foreign, 56
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 28
Treasury operating balance, 28
UNEMPLOYMENT, 47
U.S. government balances
Commercial bank holdings, 18, 19, 20
Treasury deposits at Reserve Banks, 4, 10, 28
U.S. government securities
Bank holdings, 18-20, 21, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 4, 10, 11, 30
Foreign and international holdings and transactions, 10,
30, 68
Open market transactions, 9
Outstanding, by type and holder, 26, 30
Rates, 24
U.S. international transactions, 55-69
Utilities, production, 50
VETERANS Administration, 37, 38
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 46, 52
YIELDS (See Interest rates)
A91
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
George N. Hatsopoulos
Richard N. Cooper
Richard F. Syron
Robert W. Eisenmenger
NEW YORK*
10045
Buffalo
Cyrus R. Vance
Ellen V. Futter
14240 . Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
John T. Keane
PHILADELPHIA
19105
Peter A. Benoliel
Gunnar E. Sarsten
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Charles W. Parry
John R. Miller
Owen B. Butler
James E. Haas
W. Lee Hoskins
William H. Hendricks
Hanne M. Merriman
Leroy T. Canoles, Jr.
To be announced
To be announced
Robert P. Black
Jimmie R. Monhollon
Bradley Currey, Jr.
Larry L. Prince
To be announced
To be announced
To be announced
To be announced
To be announced
Robert P. Forrestal
Jack Guynn
Robert J. Day
Marcus Alexis
Richard T. Lindgren
Silas Keehn
Daniel M. Doyle
Robert L. Virgil, Jr.
H. Edwin Trusheim
To be announced
To be announced
To ne announced
Thomas C. Melzer
James R. Bowen
Michael W. Wright
John A. Rollwagen
To be announced
Gary H. Stern
Thomas E. Gainor
Fred W. Lyons, Jr.
To be announced
James C. Wilson
Patience S. Latting
Kenneth L. Morrison
Roger Guffey
Henry R. Czerwinski
Bobby R. Inman
Hugh G. Robinson
To be announced
To be announced
To be announced
Robert H. Boykin
William H.Wallace
Robert F. Erburu
Carolyn S. Chambers
Yvonne B. Burke
Paul E. Bragdon
Don M. Wheeler
Carol A. Nygren
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
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Harold J. Swart1
Robert D. McTeer, Jr.1
Albert D. Tinkelenberg1
John G. Stoides1
Delmar Harrison1
Fred R. Herr1
James D. Hawkins1
James Curry III
Donald E. Nelson
Robert J. Musso
Roby L. Sloan1
John F. Breen
Howard Wells
Paul I. Black, Jr.
Robert F. McNellis
Kent M. Scott
David J. France
Harold L. Shewmaker
Tony J. Salvaggio1
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
John F. Hoover1
Thomas C. Warren2
Angelo S. Carella1
E. Ronald Liggett1
Gerald R. Kelly1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 060%; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Executive Vice President.
A92
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
April 19*4
t
1
ALASKA
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i i l l i i l i M
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LEGEND
B o u n d a r i e s o f Federal R e s e r v e Districts
®
Federal R e s e r v e B a n k Cities
B o u n d a r i e s o f Federal R e s e r v e Branch
Territories
•
Federal R e s e r v e B r a n c h Cities
Federal R e s e r v e B a n k Facility
Q
Board o f G o v e r n o r s o f the Federal R e s e r v e
System
Publications of Interest
NEW HANDBOOK AVAILABLE
REGULATORY
SERVICE
FROM THE
The Federal Reserve Board has announced publication of The Payment System Handbook. The new
handbook, which is part of the Federal Reserve Regulatory Service, deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation CC (Availability of
Funds and Collection of Checks), Regulation J (Collection of Checks and Other Items and Wire Transfers
of Funds by Federal Reserve Banks), the Expedited
Funds Availability Act and related statutes, official
Board commentary on Regulation CC, and policy
statements on risk reduction in the payment system. In
addition, it contains detailed subject and citation indexes. It is published in loose-leaf binder form and is
updated monthly.
To promote public understanding of its regulatory
functions, the Board publishes the Federal
Reserve
Regulatory Service, a three-volume loose-leaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and, available for the first time in September 1988, The Payment
System
Handbook.
For domestic subscribers, the annual rate for The
Payment System Handbook is $75. For subscribers
outside the United States, the price, including additional air mail costs, is $90. For the Federal
Reserve
Regulatory Service, not including handbooks, the annual rate is $200 for domestic subscribers and $250 for
subscribers outside the United States. All subscription
requests must be accompanied by a check payable to
"Board of Governors of the Federal Reserve
System." Orders should be addressed to Board of
Governors of the Federal Reserve System, P.O. Box
27531, Richmond, Virginia, 23261-7531.
Publications of Interest
FEDERAL RESERVE CONSUMER
PUBLICATIONS
CREDIT
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects as
how the Equal Credit Opportunity Act protects women against discrimination in their credit dealings, how
to use a credit card, and how to resolve a billing error.
The Board also publishes the Consumer
Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit,
apply for it, keep up credit ratings, and complain about
an unfair deal.
Protections offered by the Electronic Fund Transfer
Act are explained in Alice in Debitland. This booklet
offers tips for those using the new "paperless" systems for transferring money.
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage
Refinancing, A Consumer's Guide to Mortgage Lock-Ins, and
A Consumer's Guide to Mortgage
Closings. These
booklets were prepared in conjunction with the Federal Home Loan Bank Board and in consultation with
other federal agencies and trade and consumer groups.
Copies of consumer publications are available free
of charge from Publications Services, Mail Stop 138,
Board of Governors of the Federal Reserve System,
Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge.
A. Consumer's
Guide to
Mortgage
Lock-Ins
Fair
Credit
Billing
@FedFRASER