Full text of Federal Reserve Bulletin : January 1990
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VOLUME 7 6 • NUMBER 1 • JANUARY 1990 FEDERAL RESERVE m BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C . PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • 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 POLICY TARGETS AND OPERATING PROCEDURES IN THE 1990S This article focuses on the issue of how to keep monetary policy on a path that leads to the achievement of the objectives the monetary authorities have set for themselves, how the process of adjusting policy to this end has evolved over the past decade or so, and what that evolution may mean for the success of policy in the 1990s. 8 TREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS The dollar ended the August-October reporting period Vi percent higher on a tradeweighted basis in terms of other Group of Ten currencies as measured by the staff of the Board of Governors. On balance, the dollar declined 1 lA percent against the German mark and Vi percent against the Canadian dollar while rising 4lA percent against the Japanese yen and 5V2 percent against the British pound. 13 INDUSTRIAL PRODUCTION Industrial production decreased 0.7 percent in October after having been unchanged in September (revised). 15 ANNOUNCEMENTS Schedule for 1990 fees for Federal Reserve Bank services. Issuance of final orders in enforcement proceedings. Proposed revisions to staff commentaries on Regulations E and Z. Proposal for transition capital standards for state member banks and bank holding companies through 1990. Change in the database used for compiling the statistical appendix to the Bulletin. Erratum item for Bulletin chart. Admission of five state banks to membership in the Federal Reserve System. 17 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE At its meeting on October 3, 1989, the Committee adopted a directive that called for maintaining the current degree of pressure on reserve positions and that provided for giving particular weight to potential developments that might require some slight easing during the intermeeting period. Accordingly, slightly greater reserve restraint might be acceptable during the intermeeting period, while some slight lessening of reserve restraint would be acceptable, depending on progress toward price stability, 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 around 6V2 percent and 4V2 percent respectively over the three-month period from September to December. The intermeeting range for the federal funds rate, which provides one mechanism for initiating consultation of the Committee when its boundaries are persistently exceeded, was left unchanged at 7 to 11 percent. 23 LEGAL DEVELOPMENTS Various bank holding company, bank service corporation, and bank merger orders; and pending cases. AI FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of November 27, 1989. A3 Domestic Financial Statistics A46 Domestic Nonfinancial Statistics A55 International Statistics A71 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL TABLES A78 BOARD OF GOVERNORS AND STAFF A80 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A82 FEDERAL RESERVE PUBLICATIONS BOARD A84 INDEX TO STATISTICAL TABLES A86 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES A87 MAP OF FEDERAL RESERVE SYSTEM Policy Targets and Operating Procedures in the 1990s Donald L. Kohn, Director of the Board's Division of Monetary Affairs, prepared this article. It was adapted from a paper he presented at the Economic Policy Symposium sponsored by the Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming, August 31, 1989. treating the closely related issues of how the central bank reacts to new information and how it ensures consistency between its short-run policy actions and its long-run objectives. WHY INTERMEDIATE A presentation entitled "Policy Targets and Operating Procedures in the 1990s" could cover many topics. What this paper will not deal with is the ultimate targets of monetary policy. I take that target to be price stability. Along with others at the Federal Reserve, I believe that the price level is the only variable that over the long run is under the control of the central bank. Moreover, for a variety of reasons having to do with economic inefficiencies and with the unsustainability of other inflation goals, stability is the only sensible objective for the price level. Nor do I undertake the difficult task of laying out a path of interim objectives to get from the current state of moderate inflation to price stability. Rather, I want to focus on the narrower issue of how to keep policy on a path that leads to the achievement of the objectives the monetary authorities have set for themselves, how the process of adjusting policy to this end has evolved over the last decade or so, and what that evolution may mean for the success of policy in the 1990s. An examination of policy targets and operating procedures inevitably entails consideration of the role of various intermediate targets and indicators. But I begin by examining the need for explicit intermediate indicators between central bank actions and their results for the price level. Then I will discuss the reasons for the changing status of money and credit measures in guiding policy adjustments, and the implications of relying, instead, on various signals from financial markets and the economy. I will conclude by INDICATORS? To some observers, debates about what central banks should be looking at to guide policy decisions are superfluous. The ultimate objective is stable prices, and these observers have advocated keying policy directly to new readings of broad measures of inflation. In their view, either the monetary base or the federal funds rate should be adjusted in direct response to information that the price level is deviating from a preset objective. Suggestions of this sort have proliferated in recent years. They are motivated in some cases by frustration with alternative intermediate targets previously thought to be useful in accomplishing the same objective. In particular, this camp has attracted some former monetarists, who are now a little less certain of the relationship between money supply measures and spending or inflation. This greater uncertainty has resulted from the changes in markets for deposits and other financial assets wrought by innovation and deregulation in the 1980s. (The implications of these changes for the implementation of monetary policy in coming years is discussed below.) Some academic advocates of adjusting the monetary base or the funds rate in response to the price level are reasoning from theories in which monetary policy affects the path of output only in trivial ways so that there is no reason not to pursue price stability directly. For policy to feed through reasonably directly into prices, prices and wages must adapt quickly to changing conditions in goods, labor, and financial markets. 2 Federal Reserve Bulletin • January 1990 In the United States, at least, such flexibility very likely has increased in recent years. Deregulation of various industries, the shift away from an industrial base characterized by relatively few large firms and large unions toward a servicebased economy, and the greater international integration of markets for goods and services probably have heightened effective competition and hence the responsiveness of wages and prices to various influences. But the perfectly flexible classical economy still seems some way off. For whatever reasons—long contracts, slowly changing expectations—the adjustments the central bank makes to the reserve base and to very short interest rates still affect real interest and exchange rates and, in turn, economic activity. We have seen this influence at work in recent years, when the more rapid expansion of 1987 and 1988 and the slowdown in 1989 have seemed traceable at least partly to the monetary policies that preceded them. The lags between policy actions and price consequences appear to remain long and complex, with implications for the path of output. A single-track policy response tied to inflation data alone probably will produce sizable swings in the economy. As a consequence, objectives for inflation are likely to have some side constraints having to do with real output. These side constraints may dictate policy reactions to incoming information on the course of the economy as well as on prices, leading to adjustments to the desired path for inflation. If the linkages among policy, the economy, and prices were well enough understood, reasonably stable over time, and mostly free from noise, they might be captured by a reliable empirical model or perhaps by judgmental forecasts. Then the job of implementing policy might still be straightforward: Policy adjustments, though perhaps not adhering to transparent rules of thumb, could be calibrated from the model or judgmental forecast, taking into account the inflation objectives and output constraints of the authorities. Inherently, all policy depends, at least implicitly, on projections that permit policymakers to assess the implications of a course of action. A reliance on intermediate indicators arises out of skepticism about forecasting exercises and out of a desire to identify and minimize deviations from objectives. Intermediate indicators are used partly in an attempt to shortcut or cross-check the projection process and possibly to discipline policy, through prompting adjustments before cumulative imbalances require more costly corrections. These indicators may even be elevated to targets if they are considered sufficiently reliable. As long as forecasts are subject to substantial error and real output paths are important, monetary policymakers are likely to rely on indicators or targets intermediate between policy actions and price-level effects. It is in this area of intermediate indicators that policy implementation has undergone its greatest change in recent decades—an evolution that is likely to continue into the 1990s. Some indicators, such as interest rates and exchange rates, are elements in the transmission process, figuring directly in spending and saving decisions. To the extent the transmission of policy has changed, so too have the appropriate settings and weights for these types of indicators. Indicators in another class—including the money and credit aggregates —may have little independent standing as variables with direct influence on spending and production; they may, instead, be the surface manifestations of complex interactions among savers, spenders, and intermediaries. Changes in those interactions may call into question the reliability of the relationships between the indicators and ultimate policy objectives. MONEY AND CREDIT AGGREGATES In the United States we have seen changes both in the monetary aggregate that is the preferred target or indicator and in the weight that is placed on money and credit measures in the conduct of policy. These shifts have reflected important underlying developments in financial markets: changes in the characteristics of existing financial instruments, the creation of new instruments, and the blurring of distinctions among financial instruments generally. Among the factors behind these developments have been the removal of regulations that enforced the distinctions among instruments and advances in technology that have reduced the transaction costs of issuing and Policy Targets and Operating Procedures in the 1990s buying a variety of financial claims. These forces not only have been at work on the financial instruments issued in a given country, but also have affected the relation of financial claims in one country to those in another. The effects of these forces on previously distinct categories of assets are illustrated by a variety of developments in the seventies and eighties: Deregulation has blurred the distinction between deposits used for transactions and those used as a store of wealth; securitization has made loans much more like securities; in the wake of deregulation and brokering, retail deposits and managed liabilities at depositories no longer are separate and distinct from one another; the junk bond market has blurred debt and equity; computers have permitted easy substitution between deposits and mutual funds; and the removal of controls on international capital movements has meant that investors can treat assets denominated in home currency and those denominated in foreign currency more interchangeably. Moreover, as government regulation has become less confining, the decisions of suppliers of certain assets have become more important in determining the outstanding quantity of those assets. In the retail deposit markets, for example, decisions of depository institutions about the interest rates at which these instruments are offered affect the willingness of the public to hold them at given levels of income and market interest rates. Moreover, deposit-pricing strategies appear to have changed as institutions have adapted to deregulation, introducing substantial uncertainty, in the short run at least, into the relationship between the quantity of money and movements in market rates and income. And both supply and demand for individual financial assets can be quite sensitive to small changes in their own rates, relative to those on alternative assets, given the multiplicity of close substitutes. Internationally, the ability of capital to flow freely across borders has broadened the choices of borrowers and lenders. As a consequence spending on the goods and services produced by a particular country likely has become less dependent on the volume of claims originated or held in that country. In these circumstances, the boundaries around 3 specific collections of financial instruments have become increasingly arbitrary, and monetary or credit aggregates, however carefully delineated, are less likely to be stably related to spending or income. This certainly is the case for short-run relationships; and it may also pertain, if to a lesser extent, over the longer periods that are relevant to the business cycle. The experience of the United States illustrates the erosion of the distinctions among various types of claims, and points up the implications of that erosion for the utility of traditional aggregations of these claims as policy indicators. In the 1960s, policymakers monitored bank credit closely, but this aggregate was deemphasized when open market paper became a closer substitute for bank loans as a source of funds for businesses. In the 1980s, Ml was dropped as a target when deregulation blurred the line between it and M2, producing greater interest sensitivity in its components and more variability in its velocity. At the same time, the target range for M2 was widened as the supply behavior of banks and thrift institutions seemed to impart a substantial short-run interest elasticity to that aggregate as well. Moreover, substitution of debt for equity is one of the factors disturbing the established relation of the debt aggregate to income. Deregulation and the proliferation of new, highly substitutable claims also have reduced the effect of credit rationing as a channel for monetary policy. Deposit intermediaries now can maintain access to funds for lending, and both borrowers and lenders need depend less on particular types of claims or intermediaries. At present, with the restructuring of the savings and loan industry, these hypotheses about the diminishing value of certain financial variables and reduced credit-rationing effects are undergoing an intriguing empirical test. The solutions to the problems of savings and loans are likely to entail fewer and smaller institutions, in what has been the country's key mortgage intermediary. Other mortgage lenders will have to fill the void left by this reduction in the industry's size. On the deposit side, restructuring will almost certainly restrain the expansion of M3, and perhaps M2 as well, depending on how successful the regulators are in beating down deposit 4 Federal Reserve Bulletin • January 1990 offering rates and thereby raising the opportunity cost of holding M2. Expectations about the effects of this restructuring offer an instructive contrast to the dislocations brought on by earlier episodes, when this industry shrank through disintermediation induced by Regulation Q. Although specific real estate markets may be affected in the current situation, confidence in the capital markets to rechannel funds appears to have allayed concerns about major overall effects on the housing market and on the macro economy. Spreads between mortgage interest rates and other rates have widened only a bit, a development that suggests that the demands of other investors for mortgage instruments are elastic and that nonprice credit rationing is unlikely. Any damping of M2 and M3 in this process would reflect a shift in the level of velocity, and would not be a precursor of lower spending. Although short-run variations in money and credit may be of limited value in keying policy adjustments in most circumstances, in certain situations they may portend a serious disturbance in financial and goods markets, especially when interpreted together with interest rate developments. For example, the Federal Reserve kept especially careful track of the monetary aggregates in the wake of the stock market collapse in October 1987 to ascertain whether there were unusual demands for money and, if so, whether they might connote flight from other financial assets or from spending. In light of the current situation in the thrift industry, unexpected movements in credit flows or in deposits will also be examined carefully. Over longer periods, the net result of market adaptations to supply and demand conditions for financial assets may well be a stable ratio of desired holdings of money to wealth or income. Such stability is all the more likely now that incentives to innovate around regulatory constraints have been removed, a removal that has enhanced the value of persistent movements in money supply as policy signals. In this regard, the recently published study relating M2 and prices—the so-called P* model—was encouraging. The study suggested that a reasonably robust long-run relationship between money and prices has persisted despite the changes in M2 in the 1980s. Since, as the cliche has it, the long run is a collection of short runs, even short-run variations in an aggregate may yield some information on the long-run thrust of policy, though one may be skeptical of the short-run inflation forecasts produced by a model as simplified as P*. Translating between the short and the long runs is unlikely to be simple, however, in part because of the short-run interest elasticity imparted by the supply behavior of depositories. For example, 2Vi to 3 percent growth in M2 may be the steady state associated with price stability, but, in light of the complex interactions among money, interest rates, and spending, gradual reductions may be far from the best way to achieve this objective. Overall, money and credit aggregates probably will continue to play an important role in policy in the 1990s; but that role is more likely to be the supporting one of the late 1980s, keyed to sustained, appreciable deviations from long-term objectives, than the romantic lead of the late 1970s and early 1980s, when relatively small month-to-month movements were allowed to influence reserve markets. INTEREST AND EXCHANGE RATES ECONOMIC AND PRICE DATA AND As attention to the monetary aggregates has lessened, policy implementation has had to rely more on inferences from the price axis in the financial markets and signals directly from the economy and from prices. The difficulties with attention to interest rate levels as intermediate indicators of the effect of policy and the course of the economy are well known. They include differentiating nominal from real rates and distinguishing the effects on rates of shifting demands for money and credit in response to developments in the economy from those caused by bank actions. Particular levels of nominal interest rates can be consistent with either accelerating or decelerating inflation, depending on the relationship of the real rate to its equilibrium level. In the past, when short-term objectives for interest rates as the proximate targets for policy were combined with attention to the most recent economic data, which respond to policy actions only with a delay, too often the results were a policy Policy Targets and Operating Procedures in the 1990s that tended to lag developments, moving initially both too little and too late and ultimately overstaying. That danger remains, though it is one policymakers are aware of. It may be reduced to an extent by the recent emphasis on a variety of financial market variables, such as yield curves and exchange rates, that incorporate market expectations about future levels of real interest rates and inflation. In particular, these variables are likely to send clear signals if policy is perceived to be deflationary or inflationary because it is seen as keeping real interest rates substantially above or below equilibrium levels. In this regard they help to address one of the serious deficiencies of emphasis on nominal rate levels. Developments in financial markets may have enhanced the usefulness of such indicators in recent years. The internationalization of financial flows and the increasing interdependence of national economies would of themselves naturally lend the exchange rate greater prominence in policy deliberations. But beyond this, the proliferation of financial instruments and the greater use of futures and options markets for risk shifting probably have reduced the influence of sector-specific supply and demand conditions on interest and exchange rates and have increased the response of asset prices to underlying fundamentals, including price expectations. These changes have taken place as economic analysis has placed greater emphasis on the influence of forward-looking expectations on economic decisions. As a consequence, policymakers have become increasingly sensitized to the importance of information that may be embedded in interest and exchange rate relations. Several caveats are in order. First, like nominal interest rates, yield curves and exchange rates reflect many influences besides judgments about the course of the economy and prices. For example, a yield curve that is downward-sloping, especially at the shorter maturities, may simply embody an expectation that the Federal Reserve is about to ease, not necessarily that such an easing will be stabilizing to the economy. And yield curves still may respond to changes in relative supplies of various kinds of paper as well as to shifting perceptions of liquidity risk. Likewise, the exchange rate is subject to develop- 5 ments abroad, as well as to short-run changes in expectations or perceptions that may have little to do with longer-run economic forces. More generally, many asset markets appear to exhibit more volatility than can be explained by changes in fundamental determinants of asset prices. Under these circumstances, adjusting monetary policy in response to short-run variations in individual interest rates or in their relative levels or in foreign exchange rates may in the end destabilize, rather than stabilize, the economy. But the most serious deficiency of these indicators is that they provide little, if any, guidance for achieving specific inflation objectives. At best, the exchange rate would anchor the home inflation rate over time to those of major trading partners and competitors. Adjusting policy in accord with the market's interest rate expectations—that is, operating to flatten the yield curve—would tend only to lock in the expected rate of inflation built into that curve. In theory, policymakers could achieve their inflation objectives by designing a course for the economy that would bring about the desired pressures on resources and on the rate of change of prices. In practice, doing that would require an accurate estimate of the economy's potential, a thorough understanding of the transmission and inflation processes, and reliable forecasts of the response of the economy to monetary policy and other forces. Such a policy would necessarily involve tolerating movements in exchange rates and changes in the slope of the yield curve in the transition period as output was adjusted relative to potential. In general, a central bank must take account of the real economic effects of its actions; but it is in both economic and political trouble when specific goals for the economy become the enduring focus of its attention. Among other things, the focus on the real economy in the context of an active discretionary policy probably accentuates the well-known temptation to cheat on the side of a little more output. In this sense, the monetarists are right: Policy reaction and implementation need something to keep these temptations at bay. Unfortunately, the monetary aggregates no longer seem to fulfill that requirement except in a long-term context, in which they may indeed check the worst mis- 6 Federal Reserve Bulletin • January 1990 takes and excesses. Moreover, as I indicated at the outset, simple reaction rules linked to broad price measures also seem to fall short in the face of uncertainties about lags and side constraints on output. Commodity prices have been offered to fill this gap. Because they are unconstrained by longterm contracts, commodity prices are said to react more quickly to fundamental developments, short-circuiting some of the lags, and therefore the cyclical uncertainties, inherent in broad price measures. While commodity prices, too, contain valuable information for the policymaker, whether they belong at the center of policy implementation remains to be proven. There are the familiar issues of accounting for supply shocks, choosing the market basket, and assessing the reliability of such prices as forecasters of the aggregate price level. In addition, establishing a target level for the commodity basket is a problem. As the British discovered in the 1920s, this is not a trivial exercise—and it is the level that needs to be tied down. Movements in commodity prices cannot be interpreted without reference to an equilibrium level. Rising prices might suggest an easy policy if they were occurring above equilibrium. But they might suggest that policy was tight if commodity prices had been driven below their equilibrium level by that policy; in that case, increases in commodity prices would be needed to equalize returns with the high real rates on financial assets. Ultimately, one suspects, commodity prices will take their place in that eclectic mix of indicators that have keyed policy recently and that are likely to continue to do so in the 1990s. POLICY REACTIONS OBJECTIVES AND LONG-RUN As the 1990s open, then, policymakers are reacting to information from a wide variety of sources, making frequent adjustments of the stance of policy in reserve markets when the evidence suggests that the existing posture is inconsistent with their longer-run objectives. No one indicator, nor any one small set of indicators, dominates this policy-adjustment process. Indeed, the whole intermediate indicator/target paradigm may not be very useful. Realistically, policy cannot afford to lose any information about the complex relationships in the economy. Signals from financial and foreign exchange markets, and from the domestic economy and foreign economies, all need to be filtered for clues about where the economy and the price level are headed relative to the objectives for policy. Casting the net wide is especially important when the underlying relationships among financial and economic variables seem to be evolving in ways that are not easy to predict. It seems likely that operations by the monetary authority will continue to involve frequent policy adjustments in response to new information. Such adjustments need not connote unsteadiness of purpose, or an excessively activist hand on the wheel, or an attempt to "fine tune" the economy in the sense of trying to achieve an outcome with unrealistic precision. Instead, they may be rational responses to changing indications about economic trends contained in the new data, which prompt small but frequent adjustments in instrument variables to keep the economy and prices on a track consistent with ultimate objectives. This type of operating system does involve difficulties, among which is filtering signal from noise. Given the difficulties of interpreting new data and the possibility of later revisions, unnecessary policy adjustments likely will be made. As long as policy remains flexible and mistakes are quickly recognized and corrected, unnecessary adjustments should remain a minor problem. Deviations from the optimal policy path that are kept small and short-lived will have little effect on the ultimate outcome. The greater danger of a policy that relies on frequent adjustments of nominal interest rates to incoming data is insufficient attention to long-run policy objectives. I have already noted the tendency in the past for policy that involves this type of procedure to react too little and too late. But that tendency has not always been symmetrical. Emphasis on the level of nominal interest rates in connection with information on the real economy has at times tended to impart an inflationary bias to policy. Given the lag between policy and the price level, such a focus in the context of an active discretionary policy may Policy Targets and Operating Procedures in the 1990s lead to attempts to achieve higher output levels than are consistent with stable prices. In that regard, recent experience is mildly encouraging. Though inflation remains well above the long-term objective of price stability, it has accelerated only a little even as the U.S. economy has enjoyed an unprecedented peacetime expansion. Many factors account for this performance, including good fortune and greater flexibility in price and wage setting. But monetary policy may also have played a role. Leaning fairly hard against the wind and being willing to shift policy promptly when the wind shifts appear to have forestalled the buildup of excesses and imbalances, so that the economy has remained in the neighborhood of its potential and inflation has stayed within a fairly narrow range. And to the extent that this outcome has reinforced the credibility of the Federal Reserve's anti-inflation policy, it may, by restraining inflation expectations, by itself have contributed to price performance that has been better than expected. The factors underlying this behavior by the Federal Reserve include a number of the elements previously discussed, no one of which seems adequate to the task of exerting longerterm discipline within the current policy regime. First is some attention to movements in price indexes, despite the inherently backward-looking nature of these indexes. The monetary authority has clearly stated its intention to achieve price stability and has emphasized the importance it places on this objective. Although it has neither set a timetable nor established an automatic disciplining device, it has created for itself the burden of explaining sustained deviations from intentions. Such deviations would raise questions about its true intentions that would put an authority concerned about its reputation on the defensive. 7 The second factor underlying Federal Reserve policy that imposes discipline is the heightened sensitivity of expectations-driven variables, including yield curves, exchange rates, and commodity prices. At a minimum, these variables help the policymaker judge when market participants consider that conditions are ripe for significant movements in inflation rates. Thus, from these indicators policymakers may be able to infer the credibility that the markets accord their anti-inflation objectives. The last such factor is the continued attention to the monetary aggregates. Although they may not be good guides to short-run policy, the aggregates appear to maintain their longer-run relationships to spending and inflation. Sustained very rapid or very slow growth in the aggregates has continued to play a role in keying policy adjustments. Taken together, these factors have tended to limit the distance and the duration of deviations of monetary policy from actions consistent with, at the least, its not straying far from its long-run objective. They have imposed some discipline on the task of adjusting reserve conditions and nominal short-term interest rates. As the 1990s begin, the challenge to policy is to strengthen the elements that supply long-run discipline, without sacrificing the flexibility to adapt policy to changing conditions and to consider the consequences of policy actions for output and employment. Sufficient attention to reputation, to market expectations of inflation, and to trend money growth should help to ensure progress toward price stability in coming years. We should make certain that in ten years, were we to consider monetary policy in the new century, we would be able to report that the decade of the 1990s, like the 1980s, ended with inflation lower than when it began. 8 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period August through October 1989, provides information on Treasury and System foreign exchange operations. It was presented by Sam Y. Cross, Manager of Foreign Operations of the System Open Market Account and Executive Vice President in charge of the Foreign Group of the Federal Reserve Bank of New York. George G. Bentley was primarily responsible for preparation of the report.1 During the first half of the August-October reporting period, the dollar came under renewed upward pressure in the face of strong investment inflows. In response, the U.S. monetary authorities intervened to sell dollars in keeping with Group of Seven (G-7) policy commitments to foster exchange rate stability. The dollar reached its highs of the period in mid-September. It then moved sharply lower after the G-7 statement of September 23 expressed concern over the dollar's rise, and persistent coordinated intervention operations followed. Toward the end of the period, the dollar traded in a relatively narrow range. Demand for dollars moderated as a result of a narrowing of interest rate differentials favoring dollar assets and of concerns over volatility in U.S. equity markets. However, investment interest continued to provide some support at lower levels. The dollar ended the August-October reporting period Vi percent higher on a trade-weighted basis in terms of other Group of Ten (G-10) currencies as measured by the staff of the Board of Governors. Against individual currencies, however, the dollar's performance varied considerably. On balance, the dollar declined VA per1. The charts for the report are available on request from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. cent against the German mark and Vi percent against the Canadian dollar while rising 4lA percent against the Japanese yen and 5Vi percent against the British pound. During the three-month period, the U.S. monetary authorities sold a total of $5,871 million between August and early October, of which $3,289 million was against Japanese yen and $2,582 million was against German marks. These operations were conducted in coordination with foreign central banks, (table 1). THE DOLLAR 'S RISE FROM EARLY TO MID-SEPTEMBER AUGUST As the period opened, market participants were still apprehensive that the U.S. economy might be slipping into recession. In the final days of July, evidence was widespread that the Federal Reserve had responded to a slackening of eco1. Federal Reserve reciprocal currency arrangements Millions of dollars Institution Amount of facility, October 31, 1989 Austrian National Bank National Bank of Belgium Bank of Canada National Bank of Denmark Bank of England Bank of France Deutsche Bundesbank Bank of Italy Bank of Japan 250 1,000 2,000 250 3,000 2,000 6,000 3,000 5,000 Bank of Mexico Netherlands Bank Bank of Norway Bank of Sweden Swiss National Bank 700 500 250 300 4,000 Bank for International Settlements Dollars against Swiss Francs Dollars against other authorized European currencies 1,250 Total 600 30,100 9 nomic growth and price pressures by easing monetary policy, and the dollar declined. On August 1, Chairman Greenspan confirmed in Senate testimony that the Federal Reserve had modestly eased its stance the previous week. On the same day, several leading banks cut their prime lending rates. The perception thereby strengthened in the market that U.S. interest rates were steadily declining and that favorable dollar interest rate differentials would continue to narrow. The dollar then moved to its lows for the month of August of DM1.8430 against the mark • and ¥135.50 against the yen on August 2. The dollar's softer tone was short-lived. Economic data released in early August alleviated the market's earlier concerns regarding the severity of an economic slowdown. The prospects of another imminent easing by the Federal Reserve appeared to fade after employment data released on August 4 showed a sharp upward revision in June nonfarm payrolls and continued employment growth for July. The release of figures on August 11 showing buoyant retail sales in July made the possibility of an easing appear even less likely. In addition, the monthly U.S. trade reports released in both August and September suggested that the U.S. trade performance was continuing to improve. In this environment, commercial and investment demand for dollars revived, and the dollar was buoyant through mid-September. On September 15, after the announcement that the July U.S. trade deficit had narrowed unexpectedly to $7.58 billion, the dollar surged briefly to its highs of the three-month period of DM2.0032 and ¥148.98, up roughly IVi percent and 83/4 percent respectively from the closing rates of the previous reporting period. At these levels, the dollar was trading near the highs reached earlier in the year. Later that same day, when it appeared that the dollar would not move any higher, dealers began to take profits on long-dollar positions, triggering stop-loss orders, and a sudden decline in the dollar ensued. Although sentiment toward the dollar remained positive for quite a while afterwards, the episode revealed a vulnerability for the dollar at these higher levels. During much of September, the U.S. monetary authorities again intervened in coordination with those of several other countries to resist upward pressure on the dollar. After mid-September, moreover, with the approaching G-7 meeting in Washington on September 23, the market became increasingly wary that more aggressive official action might be introduced to curb the dollar's strength, either through intervention or through monetary policy adjustments. The dollar then drifted down to close at DM1.9520 and ¥146.00 on September 22, the Friday before the weekend G-7 meeting. Accordingly, between August 1 and September 22, the U.S. monetary authorities sold a total of $1,452 million against marks and $1,699 million against yen. The operations became more frequent as upward pressure on the dollar intensified. During the first ten days of August, the U.S. authorities intervened only once, selling $70 million against yen. During the remainder of August, the U.S. monetary authorities sold dollars on six days for a total of $425 million against marks and $525 million against yen. The authorities entered the market more frequently after the beginning of September, intervening on eleven of the fifteen business days leading up to the G-7 meeting to sell a total of $1,027 million against marks and $1,104 million against yen. DOLLAR DEMAND LATE SEPTEMBER MODERATES AFTER THE G-7 MEETING After their meeting on Saturday, September 23, the G-7 finance ministers and governors issued a statement concluding, among other things, that the dollar's rise in recent months was inconsistent with longer-run economic fundamentals and that a further rise of the dollar above thencurrent levels or an excessive decline could adversely affect prospects for the world economy. The ministers and governors also expressed their intention to cooperate closely in exchange markets. On the strength of the G-7 statement and official intervention to reinforce that statement, the dollar moved lower in Asian trading on Monday, September 25. The fact that the U.S. monetary authorities, along with others, were selling dollars in the Tokyo market sent a signal of the firmness of the G-7 resolve. In the days 10 Federal Reserve Bulletin • January 1990 immediately after the statement, the G-7 monetary authorities persisted with their intervention. By October 2, the dollar had declined to DM1.8650 and ¥138.60, about 5 percent lower than its closing levels on September 22. For the next eight business days, the dollar was again well bid, showing a tendency to recover from its October 2 levels. Subsequently, as the authorities continued to intervene to resist the dollar's rise, market participants appeared more reconciled to the possibility that the dollar's uptrend might finally have been broken. In total, from September 25 through October 12, the U.S. monetary authorities sold $1,130 million against marks and $1,590 million against yen, operating on most days in that period. THE LATTER HALF OF OCTOBER As mid-October approached, upward pressure on the dollar lessened. For the balance of the three-month period, the dollar remained below the mid-September highs. One factor contributing to the easing of upward pressure was that interest rate differentials favoring the dollar narrowed further in October as a result of interest rate increases abroad. German market interest rates had begun edging higher in late September as dealers anticipated possible increases in the Bundesbank's official rates. On October 5, the Bundesbank announced an increase of a full 1 percentage point in both its discount and Lombard rates, surprising the market with the magnitude of the increase. The British, French, Swiss, Belgian, Dutch, Danish, Irish, and Austrian monetary authorities followed by raising their official rates. The following week, the Bank of Japan surprised the market by raising its discount rate Vi percentage point on October 11, and short-term market interest rates in Japan increased approximately 75 basis points within the span of a week. Around this time, market participants also began to expect favorable interest rate differentials to diminish further because of an easing of monetary policy in the United States. Many observers viewed economic reports, particularly the September U.S. employment data released on October 6, as a sign that U.S. economic activity was sluggish enough to warrant a new move to lower U.S. interest rates. During the second week of October, the federal funds rate moved lower, and by midmonth, market participants concluded that the Federal Reserve had indeed eased. Although interest rate differentials favoring the dollar had been narrowing throughout most of 1989 without any apparent negative effect on dollar exchange rates, the moves that occurred in October were sufficient to induce a moderation in capital inflows to the United States. By this time, interest rates in Germany had risen to levels that were almost as high as those in the United States. At the same time, as asset prices both in the United States and in foreign markets continued to adjust to the changing interest rate and economic assessments, questions arose about the continued strength of certain capital markets— markets that had attracted investors because of either high yields or the prospect of sharp capital gains. Against this background, the sharp decline in U.S. equity prices on October 13 revived concerns that heavy foreign investment in the United States might be discouraged and that the Federal Reserve might ease even more quickly or aggressively than previously supposed. The October 17 release of data showing a sharp deterioration in the U.S. trade position in August also served to reduce upward pressure on the dollar, as it highlighted the dangers of a further rise in the U.S. currency and reminded the market of the continuing need to correct the current account imbalances. Although the dollar's overall tone remained considerably softer late in the period, the dollar continued to receive some support from investment demand, particularly by Japanese entities, through the end of the three-month period. The dollar closed the quarterly period at DM1.8415 against the mark and ¥142.85 against the yen. With the dollar generally trading more narrowly in the latter part of the reporting period, markets tended to focus more on developments abroad, and the dollar's performance against individual currencies varied considerably. The dollar's decline against the mark was particularly pronounced, as the German currency benefited not only from the rise in German interest rates but more broadly from a growing sense of Treasury and Federal Reserve Foreign Exchange Operations 11 2. Drawings and repayments by foreign central banks1 Millions of dollars; drawings or repayments (—) Central bank Amount of facility Outstanding as of July 31, 1989 August September October Outstanding as of October 31, 1989 Under reciprocal currency arrangements with the Federal Reserve System 700.0 700.0 0 700.0 Under special swap arrangements with the Federal Reserve System 125.0 1. Data are on a value-date basis. 84.1 84.1 0 2. Drawn as part of the $2,000 million near-term credit facility established on September 21,1989. confidence in Germany's economic performance and prospects. Buoyant demand, high levels of capacity utilization, and reports of high wage demands from German labor unions seemed to indicate that interest rates would remain firm and economic growth strong. The process of reform just beginning to unfold in Eastern Europe and the inflow of East German immigrants were seen to promise longer-term benefits for the West German economy, although there was considerable uncertainty about the short run. Against the yen, conversely, the dollar showed a somewhat greater tendency to rise as actual and anticipated Japanese capital outflows kept the yen under downward pressure against most other major currencies. Japanese investor demand for dollars, which had helped support the dollar throughout 1989, reflected a high Japanese domestic saving rate, ample domestic liquidity, and a perception that domestic assets were relatively expensive. The United States was seen as having a good long-term investment environment and as providing sufficient opportunities to absorb a large pool of Japanese savings. Against sterling, the dollar traded relatively firmly throughout most of the three-month period as market participants became increasingly concerned about the outlook for the U.K. economy. Despite the fact that high British interest rates were raising worries about a recession, many analysts felt that the progress in curbing inflation and redressing external imbalances had been too slow. Market uncertainty regarding the future direction of U.K. economic policy was compounded by the perception that the U.K. authorities were divided on basic issues. For the three months as a whole, the U.S. monetary authorities sold $5,871 million. The U.S. Treasury's Exchange Stabilization Fund (ESF) and the Federal Reserve System participated equally in these operations. To finance a portion of its share, the ESF "warehoused" $3,000 million equivalent of foreign currencies with the Federal Reserve, bringing the total of warehoused funds to $7,000 million equivalent. In other operations, on September 21, the Federal Reserve System and the ESF, together with the Bank for International Settlements (acting for certain central banks) and the Bank 3. Drawings and repayments by foreign central banks under special swap arrangements with the U.S. Treasury1 Millions of dollars; drawings or repayments ( - ) Central bank drawing on the U.S. Treasury Bank of Mexico 2 Bank of Bolivia 3 Amount of facility Outstanding as of July 31, 1989 August September October Outstanding as of October 31, 1989 425.0 100.0 0 100.0 ... . . . 384.1 (-100.0 1 75.0 . . . ... . . . 384.1 . . .1 75.0} 1. Data are on a value-date basis. 2. Represents the ESF portion of $2,000 million near-term credit facility. 3. The facility, which was established on July 11, 1989, was renewed on September 15,1989. 12 Federal Reserve Bulletin • January 1990 4. Net profits or losses ( - ) on U. S. Treasury and Federal Reserve current foreign exchange operations1 Millions of dollars Period and item May 1,1989-July 31,1989 Realized Valuation profits and losses on outstanding assets and liabilities as of July 31, 1989 August 1,1989-October 31,1989 Realized Valuation profits and losses on outstanding assets and liabilities as of October 31,1989 Federal Reserve .0 1,045.5 U.S. Treasury Exchange Stabilization Fund 77.3 724.2 2 .0 119.6 1,366.5 870.3 1. Data are on a value-date basis. 2. This figure takes into account warehoused funds as of July 31, 1989. Data, which were originally reported in "Treasury and Federal Reserve Foreign Exchange Operations," Federal Reserve Bank of New York, Quarterly Review, vol. 14 (Summer 1989), table 3, p. 72, excluded valuation profit on warehoused funds. The amount of valuation profits including warehoused funds as of July 31,1989, was $724.2 million. of Spain, agreed to provide a short-term credit facility totaling $2,000 million to the Bank of Mexico. The Federal Reserve's share in the facility was $825 million, of which the first $700 million was to be provided under the existing reciprocal swap line with Mexico and the remaining $125 million under a separate swap agreement (table 2). The ESF's share was $425 million, provided under a special swap arrangement. On September 25, Mexico drew $784.1 million from the Federal Reserve's portion and $384.1 million from the ESF's portion of the facility (table 3). Also during the period, Bolivia repaid in full on September 15 its $100 million outstanding commitment on the short-term financing facility established with the ESF. Subsequently, the Treasury agreed to provide a new $100 million facility, and on September 22, Bolivia drew $75 million (table 3). As of the end of October, cumulative bookkeeping or valuations gains on outstanding foreign currency balances were $1,366.5 million for the Federal Reserve and $870.3 million (the second figure includes valuation gains on warehoused funds) for the ESF (table 4). These valuation gains represent the increase in the dollar value of outstanding currency assets valued at end-of-period exchange rates, compared with the rates prevailing at the time the foreign currencies were acquired. The Federal Reserve and the ESF regularly invest their foreign currency balances in a variety of instruments that yield market-related rates of return and that have a high degree of quality and liquidity. A portion of the balances is invested in securities issued by foreign governments. As of the end of October, holdings of such securities by the Federal Reserve amounted to $6,746.5 million equivalent, and holdings by the Treasury amounted to the equivalent of $7,475.7 million. 13 Industrial Production Released for publication November 14 Industrial production fell 0.7 percent in October after having been unchanged in September (revised). The October decline largely reflected a strike in the aircraft and parts industry and some disruptions in production, particularly in computers and related parts, resulting from the recent earthquake in California. Excluding these effects, the total index would have been nearly unchanged in October, continuing its recent sluggish trend. At 141.4 percent of the 1977 average, the total index in October was 1.4 percent higher than it was a year earlier. Manufacturing output declined 0.8 percent, and capacity utilization in manufacturing, at 82.8 percent, was about 1 percentage point below the September level. Detailed data for capacity utilization are shown Ratio scale, 1977=100 All series are seasonally adjusted. Latest series: October. 14 Federal Reserve Bulletin • January 1990 1977 = 100 Percentage change from preceding month 1989 1989 Group Sept. Oct. June July Aug. Sept. Oct. Percentage change, Oct. 1988 to Oct 1989 Major market groups Total industrial production 142.4 141.4 .3 -.1 .4 .0 -.7 1.4 Products, total Final products Consumer goods Durable Nondurable Business equipment Defense and space Intermediate products Construction supplies Materials 152.3 150.8 138.9 128.0 143.0 169.4 182.0 157.7 141.6 128.9 151.0 148.9 138.5 124.9 143.6 165.9 176.2 158.2 142.4 128.2 .5 .5 .6 -.3 .9 .3 .2 .4 .7 -.1 -.4 -.7 -.9 -2.7 -.3 -.6 .5 .4 .7 .4 .3 .5 .3 1.2 .0 .7 .2 -.2 -.8 .5 .0 -.1 -.1 -.7 .1 -.2 -.2 .4 .4 .0 -.9 -1.2 -.3 -2.4 .4 -2.1 -3.2 .3 .5 -.5 2.0 1.7 1.6 -3.4 3.3 3.5 -4.2 2.7 1.7 .6 -.2 -.3 -.1 2.1 1.2 -.8 -1.5 .1 .0 .5 1.6 .4 3.2 1.7 1.2 Major industry groups Manufacturing Durable Nondurable Mining Utilities 148.8 147.3 150.8 104.8 114.6 .4 .2 .7 -.6 -1.2 147.6 145.1 151.0 104.9 115.2 -.1 -.4 .2 .6 -.3 .4 .6 .1 .6 -.7 NOTE. Indexes are seasonally adjusted. separately in "Capacity Utilization," Federal Reserve monthly statistical release G.3. In market groups, output of consumer goods declined 0.3 percent in October as the production of motor vehicles, particularly light trucks, was again curtailed, and the output of appliances fell sharply. Auto assemblies decreased to an annual rate of 6.7 million units from the rate of 6.8 million units in September. Most of the 0.4 percent gain in nondurable consumer goods resulted from a rebound in the output of consumer chemical products that had fallen sharply in September. Business equipment fell more than 2 percent in October, reflecting the aircraft strike and the estimated effects of the earthquake. Excluding these special factors, business equipment would Total industrial production—Revisions Estimates as shown last month and current estimates Index (1977=100) Month Percentage change from previous months Previous Current Previous Current 142.0 142.4 142.3 141.9 142.4 142.4 141.4 .0 .3 -.1 -.1 .4 .0 -.7 July Aug Sept Oct have been about unchanged; manufacturing equipment and business vehicles remained weak, but most other sectors posted gains. Production of construction supplies rose in October, but has changed little, on balance, since the beginning of the year. Output of materials fell 0.5 percent in October. Production of parts for consumer durables declined sharply again, owing to the weakness in motor vehicles; the strike also directly curtailed the production of aircraft parts. Output of chemical materials was reduced for the third successive month; some of the October decline resulted from the explosion of a major plant in Texas. Energy materials were about unchanged as coal production rose again, but crude oil extraction declined. In industry groups within manufacturing, production of durables fell 1.5 percent in October, owing mainly to the large drop in transportation equipment. In addition, output of primary metals, particularly nonferrous metals, and fabricated metal products, fell further. Among nondurables, output of both textiles and apparel remained weak, but paper production, which has changed little, on average, in recent months, rose in October. Output of mining was flat in October, while production at utilities rose 0.5 percent. 15 Announcements FEDERAL RESERVE FOR 1990 BANK FEE SCHEDULES The Federal Reserve Board announced on November 2, 1989, the 1990 fee schedules for services provided by the Reserve Banks. The majority of the 1990 fees are the same as those currently imposed, and they generally become effective January 1, 1990. The fee schedules apply to check collection, automated clearinghouse transactions, wire transfer of funds and net settlement, definitive safekeeping, noncash collection, book-entry securities, and electronic connections to the Federal Reserve. The 1990 fee schedules are available from the Reserve Banks. In 1990, total costs for priced services, including the private sector adjustment factor (PSAF), are projected to be $750.6 million. Total revenue is estimated at $755.9 million, resulting in a 100.7 percent recovery rate. The fees for 1990 are based on total costs, including the PSAF but excluding special project costs. At the same time, the Board approved the 1990 PSAF for Reserve Bank priced services of $79.4 million, an increase of $9.7 million, or 13.9 percent, from the $69.7 million targeted for 1989. The PSAF is an allowance for the taxes that would have been paid and the return on capital that would have been provided had the Federal Reserve's priced services been furnished by a private business firm. ENFORCEMENT PROCEEDINGS: ISSUANCE OF FINAL ORDERS The Federal Reserve Board announced on September 25, 1989, the issuance of a Consent Cease and Desist Order and Consent Assessment of Civil Money Penalty as to the National Bank of Greece and the National Mortgage Bank of Greece. The Consent Order is in settlement of enforcement proceedings instituted by the Board because of alleged unsafe and unsound practices and alleged violations of law and regulation that generally arose out of the receipt of deposits by representative offices of the National Mortgage Bank in New York and in three other states. The National Mortgage Bank of Greece, without admitting any of the allegations in the proceeding, agreed to pay a fine of $2 million. The National Bank of Greece, without admitting any of the allegations in the proceeding, agreed to pay a fine of $125,000. The Federal Reserve Board announced on October 31, 1989, the issuance, on October 30, 1989, of an Order of Prohibition against Bruce F. Dailey, the former chairman of the board of directors of the First Security Bank of Missoula, Missoula, Montana, in settlement of an enforcement action instituted against him. In an enforcement proceeding, the Board contended that Mr. Dailey misappropriated at least $100,000 from the bank, while he was the chairman of its board, through the use of false loan documents. Without admitting any allegations made by the Board, Mr. Dailey consented to the issuance of the Order of Prohibition. Mr. Dailey is henceforth prohibited from participating, including serving as an officer, director, or employee, in any manner in the conduct of the affairs of any financial institution supervised by a federal financial institutions supervisory agency without the approval of the appropriate federal banking agencies. PROPOSED REVISIONS TO THE STAFF COMMENTARIES ON REGULATIONS E AND Z The Federal Reserve Board issued for public comment on November 16, 1989, proposed revisions to its staff commentaries to Regulation E 16 Federal Reserve Bulletin • January 1990 (Electronic Funds Transfer) and to Regulation Z (Truth in Lending). Comment is requested by January 19, 1990. PROPOSED ACTION The Federal Reserve Board announced on November 22, 1989, that it will seek public comment shortly on proposed transition capital standards for state member banks and bank holding companies through the end of 1990. ERRATUM: CHART IN BULLETIN ARTICLE In the leading article for the December 1989 Bulletin, "The Formation of Private Business Capital: Trends, Recent Developments, and Measurement Issues," the source note for chart 3 on page 778 was inadvertently omitted. The source for the data in the chart is the Bureau of Labor Statistics. SYSTEM MEMBERSHIP: ADMISSION OF STATE BANKS CHANGE IN DATABASE USED FOR COMPILING THE STATISTICAL APPENDIX TO THE BULLETIN The following state banks were admitted to membership in the Federal Reserve System during the period September 1 to October 31, 1989: In the December 1989 issue of the Bulletin, some of the series in the statistical appendix, "Financial and Business Statistics" beginning on page A3, were converted to a new database that uses a different software package. The new software facilitates more precise computation of weekly, monthly, quarterly, and yearly averages. Because of the changes in averaging techniques, some small discontinuities will occur between current data that are stored in the new system and previously published data that were produced by the old system. The following tables have recently been converted to the new system: 1.33, 1.44, 1.52-1.60, 2.10, 2.12, 2.13, 3.10, 3.11, 3.15-3.20, 3.22-3.25, 3.27, 3.28, and 4.30. Other tables had already been converted and were announced in the April 1989 Bulletin on pages 288-89. Illinois Green Rock Michigan Fraser Hamtramck Minnesota Albert Lea Oklahoma Lawton Henry County Bank State Bank of Fraser Bank of Commerce Security Bank Minnesota Citizens Bank 17 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 3, Domestic Policy 1989 Directive The information reviewed at this meeting suggested that economic activity continued to expand at a moderate pace in the third quarter and that rates of resource utilization remained at relatively high levels. Aggregate final demand appeared to be well sustained by a pickup in consumption at a time of somewhat reduced growth in business fixed investment. At the same time, price inflation had slowed, in large part because of a steep drop in energy costs and a continuing decline in prices of non-oil imports; wage data evidenced no deviation from recent trends. Growth in total nonfarm payroll employment slowed noticeably in July and August from the pace of the second quarter. Nevertheless, adjusted for the depressing effects of strike activity, job gains remained appreciable on balance. Hiring was brisk in construction, trade, and services; in manufacturing industries, though, employment levels generally held steady or fell a bit, apart from temporary fluctuations in the auto industry. The civilian unemployment rate remained around 5lA percent. Industrial production rose in August, and revisions for earlier months suggested that the expansion of production had not been as weak as previously estimated. Much of the August gain reflected a rebound in automobile production after three months of decline and a pickup in coal mining as striking coal miners returned to work. Output of consumer goods other than autos edged down in August with small but widespread declines in nondurable goods. Despite a sizable jump in operating rates for coal mining, total industrial capacity utilization was unchanged in August at a relatively high level. In manufac- turing, factory utilization edged further below its January peak, partly as a result of additional declines in primary processing industries, such as paper and chemicals, where utilization had been very high. Consumer spending rose substantially in August, following a July increase that was somewhat larger than the sluggish gains of previous months. Much of the August pickup reflected a surge in outlays for cars and light trucks, but gains in spending for goods and services other than motor vehicles also appeared to be running somewhat above the relatively sluggish pace for the second quarter. Housing starts in July and August were slightly higher than their secondquarter average, and sales of new homes picked up noticeably in July. However, building permits had shown no discernible trend in recent months. Recent indicators of business capital spending suggested somewhat slower growth in the third quarter after a substantial increase in the first half of the year. In July and August, shipments of nondefense capital goods excluding aircraft were only a little above the second-quarter level, and orders data suggested a further slowing in growth of spending in coming months. In July, office building remained a notable area of weakness in nonresidential construction and partially offset another strong rise in outlays for industrial structures. Inventory investment in manufacturing moderated in August after a sizable increase in July, with much of the increase in both months occurring at aircraft firms. In July, stocks also rose markedly at manufacturers of primary metals and of many types of machinery; the buildup at these industries, like that at aircraft firms, was concentrated in work-in-process. Excluding motor vehicles and aircraft, manufacturing stocks remained at relatively low levels compared with shipments. At the retail level, increases in inven- 18 Federal Reserve Bulletin • January 1990 tories slowed in July and imbalances with sales remained limited. The nominal U.S. merchandise trade deficit recorded a further decline in July relative to June and to the average for the second quarter as a whole. Exports in July fell below their strong June level and were little changed from the second-quarter average. While most categories of exports fell, deliveries of civilian aircraft increased sharply. Imports registered a further decline in July, as decreases in most categories of non-oil goods outweighed a small rise in the value of oil imports. Economic growth in the major foreign industrial countries slowed sharply in the second quarter from the very rapid rate of the first quarter, but this pattern appeared to be due largely to special factors rather than to a slackening of the underlying pace of activity. Producer prices of finished goods declined in August for the third consecutive month, reflecting a further large drop in consumer energy prices; for the July-August period, price increases for nonfood, non-energy finished goods moderated from the pace of earlier months of the year. At earlier processing stages, prices of intermediate materials other than food and energy edged down further in August and had registered little net change over the previous six months, while prices of crude nonfood materials other than energy turned up after four months of declines. Consumer prices were unchanged in August following a small increase in July. Sharp reductions in energy prices and smaller increases for food items helped damp the rise in consumer prices in July and August, but prices for other consumer goods also rose more slowly. Average hourly earnings slipped a little in August after a sizable jump in the previous month, but on a year-over-year basis this decline did not indicate a change in trend. At its meeting on August 22, the Committee adopted a directive that called for maintaining the current degree of pressure on reserve positions and that provided for giving special weight to potential developments that might require some slight easing during the intermeeting period. The Committee agreed that, in furtherance of the ultimate achievement of price stability, primary weight in considering the need for inter- meeting changes in reserve conditions would continue to be given to the inflation outlook. Slightly greater reserve restraint might, or slightly lesser reserve restraint would, be acceptable in the intermeeting period depending on progress toward price stability, the strength of the business expansion, the behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets. The contemplated reserve conditions were expected to be consistent with growth of M2 and M3 over the period from June through September at annual rates of about 9 and 7 percent respectively. Reserve conditions remained essentially unchanged over the period since the August meeting. Adjustment plus seasonal borrowing averaged about $550 million for the two full reserve maintenance periods since the meeting, and federal funds traded mostly in the narrow range around 9 percent that had prevailed since late July. With federal funds rates steady and economic data released over the intermeeting period generally in line with market expectations, other interest rates changed little on balance over the intermeeting period. Some softening in interest rates took place through mid-September, owing at least partly to a market view that an easing of monetary policy might be in the offing given the strengthening dollar, but when the dollar subsequently declined against other G-10 currencies, interest rates generally rebounded. Most stock market indexes reached record highs in early September but partially retraced their increases as problems emerged in the "junk bond" market for a few prominent issuers. In foreign exchange markets, the tradeweighted value of the dollar in terms of the other G-10 currencies rose substantially early in the intermeeting period; better-than-expected U.S. job growth in August and U.S. trade data for July outweighed the effects of a slight decline in U.S. interest rates and some increase in rates abroad. The dollar fell sharply after the release on September 23 of the G-7 statement that the rise of the dollar in recent months was inconsistent with longer-run fundamentals, and the ensuing coordinated central-bank intervention in exchange markets. Also contributing to the slippage of the dollar were growing market expectations of some tightening of monetary policies abroad. On bal- Record of Policy Actions of the Federal Open Market Committee ance, the dollar depreciated somewhat over the intermeeting period. Growth of the monetary aggregates slowed in August from their advanced July rates, which likely had been boosted by the replenishment of balances used to pay taxes last spring; their slower growth evidently carried over to September. Despite its deceleration, M2 still grew fairly briskly in August and apparently also in September, bringing its expansion thus far this year to somewhat above the lower end of the Committee's annual range. Continued rapid growth of the retail components of M2 reflected in part the lagged effects of earlier declines in market interest rates. M3 increased at a substantially reduced pace over the August-September period, and it had expanded for the year to date at a rate around the lower bound of the Committee's annual range. The sluggish growth of M3 apparently was related in part to the declining needs of savings and loan associations for managed-liability funds; undercapitalized institutions were shrinking their balance sheets as a means of complying with new, more stringent capital standards, and insolvent institutions were receiving funds from the Resolution Trust Corporation (RTC). The staff projection prepared for this meeting suggested that the nonfarm economy was likely to grow over the remainder of 1989 at about the pace estimated for the first half of the year but that the expansion would slow in 1990. The projection assumed that fiscal policy would remain moderately restrictive and that the contribution of foreign trade to growth would be very limited, owing in part to the earlier appreciation of the dollar. Consumer demand was expected to be bolstered in the near term by continued growth in labor income and the positive effect on real purchasing power of the recent slowing of price increases, but over the rest of the projection period steadily mounting slack in labor markets would exert a restraining effect on real income and consumer demand. Declines in interest rates earlier in the year were expected to provide some temporary stimulus to residential construction activity over the next quarter or so. Expansion in business capital spending was projected to moderate substantially over the projection period from the pace in the first half of the 19 year as output growth slowed, capacity pressures eased, and profits eroded. The recent weakening in food and energy prices pointed to a slower rise in consumer prices for the next few quarters; however, with margins of unutilized labor and other production resources still low, the underlying trend in inflation was not expected to show much improvement. In the Committee's discussion of the economic situation and outlook, members commented that current indicators of business activity, including economic conditions in different parts of the country, presented a somewhat mixed picture. On the whole, however, members generally viewed the evidence as pointing to sustained expansion over the next several quarters, though many expected economic growth to slow somewhat from its recent pace. In assessing the chances of a different outcome, the members did not rule out the possibility of a slightly stronger economic performance, but they generally felt that the risks were tilted toward marginally greater slowing and a few expressed concern that a more pronounced weakening could emerge. With regard to the outlook for inflation, many commented that, given moderate economic growth and a sustained period of monetary restraint, underlying inflationary pressures were likely to ease a little over the next several quarters, but some anticipated somewhat greater progress in reducing inflation. Concern was expressed by some, however, that wage-cost pressures might intensify. The members agreed that progress against inflation would depend importantly on the behavior of the dollar in foreign exchange markets; a very substantial decline in the value of the dollar would put upward pressure on prices and make achievement of the Committee's price stability objective correspondingly more difficult. With regard to developments in specific sectors of the economy, members commented that a key uncertainty in the business outlook related to the prospects for capital expenditures. Growth in such spending had slowed from a very high rate in the first half of the year, and it was not clear from the recent data whether business investment was weakening further or whether its growth had stabilized at a reduced pace. New orders for capital equipment had softened, but 20 Federal Reserve Bulletin • January 1990 order backlogs remained substantial and suggested continued high levels of production for many firms. On the other hand, indications of declining business profits together with the financial difficulties of a number of firms pointed to more restrained investment spending. The key to actual capital spending, of course, would be the evolving demand for goods and services and in that regard consumer spending, while subject to some volatility stemming especially from purchases of motor vehicles, was likely to continue to provide support for sustained growth. Business inventories, with some notable exceptions such as stocks of motor vehicles, were reported to be at acceptable levels and were not likely to contribute to wide swings in production unless final demands differed greatly from current expectations. The members were more uncertain about the outlook for housing and net exports. In the housing sector, considerable weakness had emerged in several parts of the country, and some members questioned whether any improvement could be expected over the next several quarters even though interest rates had fallen since last spring. With regard to the prospects for foreign trade, the dollar's appreciation this year had retarded improvement in the trade balance and, barring a substantial real depreciation, was expected to continue to do so for some time. It was presumed that fiscal policy would remain moderately restrictive, but that there would be no dramatic turn in the federal budget deficit of the sort that would substantially reduce demand pressures in the domestic economy while accommodating significant improvement in the trade deficit. In the Committee's discussion of the outlook for inflation, members observed that the recent improvement largely reflected a number of special factors—such as developments in the food and energy sectors and the appreciation of the dollar this year—that could not be projected to recur. Several saw only limited prospects for further improvement over the year ahead, given their expectations with regard to the overall performance of the economy and related pressures on resources. Others felt that the behavior of prices and wages might continue to be better than had been expected. They noted that reduced monetary growth over an extended period was continuing to restrain inflationary pressures and that the economy also was benefiting from ongoing cost-reducing measures induced by strong competition in domestic and international markets. A tendency for the prices of many commodities and intermediate materials to soften, if only marginally, also supported a relatively optimistic outlook for inflation. Moreover, there was a continuing pattern of restraint in labor settlements despite tight labor markets in many areas. Reflecting demographic factors, upward pressures on wages tended to be concentrated on entry-level jobs, while pressures in many of the more skilled job categories appeared to have diminished in various parts of the country. However, some members expressed concern that faster wage increases remained a threat, especially if the economy continued to operate at levels close to its potential. In the Committee's discussion of monetary policy for the intermeeting period ahead, most of the members endorsed a proposal to maintain unchanged conditions of reserve availability and preferred or found acceptable a suggestion to retain the asymmetry toward ease that was incorporated in the latest directive. While noting that developments in the near term might alter the economic outlook, most members felt that prevailing conditions in the domestic economy did not warrant a policy change in either direction at this time. The focus of policy continued to be that of gradually reducing inflation over time and a steady policy course seemed consistent with that objective, at least for now. Members also were concerned that an easing of policy so soon after the G-7 meeting would be misinterpreted as an attempt to use monetary policy to force the dollar lower. While the dollar was an important factor influencing the course of the U.S. economy and prices, monetary policy should not be used, in the judgment of the Committee, to attain particular levels for the foreign exchange value of the dollar that could conflict with domestic policy objectives. In current circumstances, an easing might well provoke an undesirable sharp decline in the external value of the dollar. The members also discussed the recent substantial intervention by G-7 and other nations against the dollar. Some members expressed concern that if this intervention resulted Record of Policy Actions of the Federal Open Market Committee in a sizable depreciation of the dollar, the inflationary consequences could be viewed as inconsistent with the Committee's long-run policy of achieving price stability. In further discussion of an appropriate course for monetary policy, the Committee took account of a staff analysis that suggested that, on the assumption of unchanged conditions of reserve availability and steady interest rates, M2 growth would moderate somewhat over the balance of the year from its rapid pace in recent months; nonetheless, growth of this aggregate would continue to be supported to some extent by the lagged effects of earlier declines in market interest rates on the opportunity costs of holding M2 balances, and on a cumulative basis M2 was projected to rise somewhat further within the lower half of the Committee's range for the year. The expansion of M3 was expected to continue to be damped, though to a reduced extent, in the fourth quarter by further reductions in the assets and M3 liabilities of undercapitalized thrift institutions and by RTC outlays that substituted in part for managed liabilities in M3; by year-end, this aggregate was projected to be a little above the lower bound of the Committee's range. The pickup in the growth of money and reserve aggregates since around midyear and the projected expansion of the broad money aggregates within the Committee's ranges for the year were cited as welcome developments that were consistent with the Committee's overall policy objectives. In the Committee's consideration of possible adjustments in the degree of reserve pressure during the intermeeting period, a majority of the members supported a proposal to adjust operations more readily toward some easing than toward any firming. In the view of these members, the risks to the expansion were more heavily weighted toward a shortfall from current expectations than toward faster growth and greater inflationary pressures. Members who preferred a symmetrical instruction generally saw the risks to the economy as more evenly balanced, and some observed that the present dollar situation warranted extra caution before any easing was undertaken; however, a bias toward ease would not involve any change from the current directive and most of these members 21 indicated that they could accept such an instruction. It was noted in further discussion that seasonal borrowing was likely to drop in the weeks ahead, so that a declining total of adjustment plus seasonal borrowing would be associated with a given degree of reserve restraint and a given federal funds rate. It was understood that, subject to the Chairman's review, the necessary technical reductions in borrowing objectives would be made during the intermeeting period. At the conclusion of the Committee's discussion, all but two of the members indicated that they preferred or could accept a directive that called for maintaining the current degree of pressure on reserve positions and that provided for giving particular weight to potential developments that might require some slight easing during the intermeeting period. Accordingly, slightly greater reserve restraint might be acceptable during the intermeeting period, while some slight lessening of reserve restraint would be acceptable, depending on progress toward price stability, 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 around 6V2 percent and AVi percent respectively over the three-month period from September to December. The intermeeting range for the federal funds rate, which provides one mechanism for initiating consultation of the Committee when its boundaries are persistently exceeded, was left unchanged at 7 to 11 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 economic activity continued to expand at a moderate pace in the third quarter. In July and August, total nonfarm payroll employment rose appreciably despite the depressing effect of strike activity. The civilian unemployment rate remained around 5'A percent. Industrial production picked up in August, mainly because of a rebound in auto assemblies and coal mining. Consumer spending has registered larger gains in recent months, reflecting in part a surge in auto sales. Housing starts in July and August were 22 Federal Reserve Bulletin • January 1990 slightly above their second-quarter average. Indicators of business capital spending suggest somewhat slower growth in the third quarter after the substantial increase in the first half of the year. The nominal U.S. merchandise trade deficit recorded a further decline in July relative to June and to the average for the second quarter as a whole. Sharp reductions in energy prices over the summer months damped increases in consumer prices and contributed to declines in producer prices. The latest wage data suggest no change in prevailing trends. Interest rates generally show small mixed changes on balance since the Committee meeting on August 22. In foreign exchange markets, the trade-weighted value of the dollar in terms of the other G-10 currencies fell after the release of the G-7 statement on September 23; on balance, the dollar depreciated somewhat over the intermeeting period. M2 grew fairly briskly in August and evidently also in September, lifting its expansion thus far this year to somewhat above the lower end of the Committee's annual range. M3 grew at a substantially reduced pace in this period, as assets of thrift institutions and their associated funding needs apparently contracted further; for the year to date, M3 has grown at a rate around the lower bound of the Committee's annual range. The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability, 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 July reaffirmed the ranges it had established in February for growth of M2 and M3 of 3 to 7 percent and 3V2 to IVz percent, respectively, measured from the fourth quarter of 1988 to the fourth quarter of 1989. The monitoring range for growth of total domestic nonfinancial debt also was maintained at 6!/2 to IOV2 percent for the year. For 1990, on a tentative basis, the Committee agreed in July to use the same ranges as in 1989 for growth in each of the monetary aggregates and debt, measured from the fourth quarter of 1989 to the fourth quarter of 1990. The behavior of the monetary aggregates will continue to be evaluated in the light of movements in their velocities, developments in the economy and financial markets, and progress toward price level stability. 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 progress toward price stability, the strength of the business expansion, the behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets, slightly greater reserve restraint might or slightly lesser reserve restraint would 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 September through December at annual rates of about 6V2 and AVi 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 7 to 11 percent. Votes for this action: Messrs. Greenspan, Corrigan, Angell, Johnson, Keehn, Kelley, LaWare, Melzer, and Syron. Votes against this action: Mr. Guffey and Ms. Seger. Mr. Guffey favored an unchanged policy for the period ahead, but he dissented because he could not support a directive that was biased toward easing during the intermeeting period. He remained concerned that the rate of inflation would continue to be undesirably high. Ms. Seger dissented because she felt that some easing of monetary policy was desirable at this time. In her view developments in manufacturing, notably in the motor vehicles sector, along with potential softness in capital expenditures, housing construction, and exports signaled a weaker overall economy. In the circumstances, she believed that an easier monetary policy was needed to help sustain the expansion and that such a policy would be consistent with continuing progress in reducing the rate of inflation. 23 Legal Developments ORDERS ISSUED UNDER BANK COMPANY ACT HOLDING Orders Issued Under Section 3 of the Bank Holding Company Act Center Financial Corporation Waterbury, Connecticut Order Denying Formation of a Bank Holding Company Center Financial Corporation, Waterbury, Connecticut ("Center Financial"), has applied pursuant to section 3(a)(1) of the Bank Holding Company Act (the "BHC Act"), 12 U.S.C. § 1842(a)(1), to become a bank holding company by acquiring all of the voting shares of Centerbank, Waterbury, Connecticut ("Centerbank"), as well as all of the voting shares of Burritt InterFinancial Bancorporation, New Britain, Connecticut ("Burritt"). Both Centerbank and Burritt are state-chartered FDIC-insured savings banks and, by virtue of these acquisitions, Center Financial would become a savings bank holding company pursuant to sections 2(1) and 2(m) of the BHC Act, 12 U.S.C. § 1841(1) and (m). Notice of the application, affording interested persons an opportunity to submit comments, has been published (54 Federal Register 11,278 (1989)). 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. Centerbank is the 11th largest institution among commercial banks and savings banks in Connecticut with deposits of $1.3 billion, representing 2.0 percent of total deposits in such institutions in the state, while Burritt is the 24th largest institution among commercial banks and savings banks in the state with deposits of $536.0 million, representing less than one percent of total deposits in such institutions in the state. 1 Upon consummation of this transaction, Cen- 1. Statewide deposit data are as of June 30, 1989. ter Financial would become the ninth largest institution among commercial banks and savings banks in Connecticut with deposits of $1.8 billion, representing 2.8 percent of total deposits in such institutions in the state. Consummation of the proposed transaction would not have a significantly adverse effect upon existing or probable future competition in any other relevant banking market. 2 In evaluating this application, the Board is required, under section 3 of the BHC Act, to consider the financial and managerial resources of Center Financial, Centerbank, and Burritt, and the effect of the proposed acquisition on the future prospects of each organization. The Board previously has stated that a bank holding company should serve as a source of financial and managerial strength to its subsidiary banks, and that the Board would closely examine the condition of an applicant and its subsidiaries in each case with this consideration in mind. 3 The Board views with concern any proposal involving a major expenditure of funds for expansion that could limit a bank holding company's ability to serve as a source of strength to its subsidiary banks. 4 Accordingly, the Board expects organizations contemplating significant expansion to be in satisfactory financial condition. 2. The only market in which Centerbank and Burritt both compete is the Hartford banking market. The Hartford banking market is approximated by Hartford County and parts of Tolland, Middlesex, Litchfield, Windham, and N e w London Counties, all of Connecticut. As of June 30, 1988, Centerbank is the 57th largest institution among commercial banks and savings banks in the Hartford banking market with deposits of $4.4 million, representing less than one percent of total deposits held by such institutions in the market. Burritt is the tenth largest institution among commercial banks and savings banks in the market with deposits of $487.8 million, representing 5.6 percent of total deposits held by such institutions in the market. Upon consummation of this transaction, Center Financial would become the ninth largest institution among commercial banks and savings banks in this market with deposits of $492.2 million, representing 5.6 percent of total deposits held by such institutions in this market. Upon consummation of this transaction, the Herfindahl-Hirschman Index for the Hartford banking market would increase by less than one point to 838. 3. See St. Croix Valley Bancshares, Inc., 75 Federal Reserve Bulletin 575 (1989). 4. See Manufacturers Hanover Corporation, 71 Federal Reserve Bulletin 452, 453 (1984); see also First Bancorp of N.H., Inc., 66 Federal Reserve Bulletin 856 (1980). 24 Federal Reserve Bulletin • January 1990 Based upon a review of the available data concerning the financial condition of Center Financial and Centerbank, the Board is unable to conclude that Centerbank's current and pro forma financial condition supports approval. Center Financial proposes to fund its acquisition of Burritt entirely with cash obtained through a substantial dividend payment from Centerbank. Center Financial has not projected that any equity capital would be issued either as part of this proposal or at any time through year-end 1990. These demands upon the earnings of Centerbank and upon Center Financial's resources could unduly weaken Center Financial and limit its ability to respond to present and prospective needs of its proposed subsidiary banks. Recently, Centerbank's rate of profitability has declined and is now below those for comparably sized banks. In addition, the performance of Centerbank's loan portfolio has been adversely affected by the weakening of real estate markets in its operating region and elsewhere. Based upon the facts of record in this case, the Board believes that the proposed acquisition would substantially lessen the ability of Center Financial to serve as a source of strength to Centerbank and Burritt, and therefore is not in the public interest. Additionally, this proposal raises concerns regarding the future prospects of Center Financial and its subsidiaries. Accordingly, based upon all the facts of record of this case, the Board finds that financial considerations are not consistent with approval of this application. Managerial factors and convenience and needs considerations in this case do not lend sufficient weight to warrant approval. Based upon the foregoing and other facts of record, the Board concludes that the banking considerations involved in this proposal present adverse factors bearing upon the financial resources and future prospects of Center Financial, Centerbank, and Burritt. Such adverse factors are not outweighed by any pro-competitive effects, by significant benefits that would better serve the convenience and needs of the community, or by other public benefits. Accordingly, it is the Board's judgment that approval of the application would not be in the public interest, and that the application should be, and hereby is, denied. By order of the Board of Governors, effective November 27, 1989. Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Kelley, and LaWare. Absent and not voting: Chairman Greenspan. JENNIFER J. JOHNSON Associate Secretary of the Board Deposit Guaranty Corporation Jackson, Mississippi Order Approving Acquisition of a Bank Holding Company Deposit Guaranty Corporation, Jackson, Mississippi ("DGC"), a bank holding company within the meaning of the Bank Holding Company Act (the "BHC Act"), has applied for Board approval under section 3 of the BHC Act (12 U.S.C. § 1842) to acquire Commercial National Corporation, Shreveport, Louisiana ("CNC"), and thereby to acquire indirectly CNC's subsidiary bank, Commercial National Bank in Shreveport, Shreveport, Louisiana ("Bank"). 1 Notice of the application, affording interested persons an opportunity to submit comments, has been published (54 Federal Register 35,246 (1989)). 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. Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of any bank located outside of the holding company's home state,2 unless such acquisition is "specifically authorized by the statute laws of the State in which [the] bank is located, by language to that effect and not merely by implication." Louisiana law permits the acquisition of a Louisiana bank or bank holding company by a bank holding company located in any state whose laws permit a Louisiana bank or bank holding company to acquire a bank or bank holding company in that state.3 The Board has determined previously that a Mississippi bank holding company may acquire a bank holding company in Louisiana.4 Based on the foregoing, the Board has determined that the proposed acquisition is specifically authorized by the statute laws of Louisiana and that Board approval of the proposal is not barred by the Douglas Amendment. DGC is the largest commercial banking organization in Mississippi, controlling approximately $2.8 billion in deposits, representing 17.3 percent of the total deposits in commercial banking organizations in the 1. In connection with this application, DGC proposes to form CNC Acquisition, Inc., for the purpose of merging with CNC and thereby indirectly acquiring Bank. 2. A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. DGC's home state is Mississippi. 3. La. R.S. 6:533 (A)(3). 4. Grenada Sunburst System Corporation, 74 Federal Reserve Bulletin 513 (1988). Legal Developments state.5 CNC is the fifth largest commercial banking organization in Louisiana, controlling approximately $885.7 million in deposits, representing 2.9 percent of the total deposits in commercial banking organizations in the state. Consummation of this proposal would not have a significant adverse effect on concentration of banking resources in either state. DGC and CNC do not compete directly in any banking market. Consummation of this proposal would not have a significant adverse effect on actual or potential competition in any relevant banking market. In evaluating this application, the Board has considered the financial and managerial resources of DGC and the effect on those resources of the proposed acquisition. The Board has stated and continues to believe that capital adequacy is an important factor in the analysis of bank holding company expansion proposals.6 In this regard, the Board has stated that it expects banking organizations contemplating expansion proposals to maintain strong capital levels substantially above the minimum levels specified in the Board's Capital Adequacy Guidelines7 without significant reliance on intangibles, in particular goodwill. The Board carefully analyzes the effect of expansion proposals on the preservation or achievement of strong capital levels and has adopted a policy that there should be no significant diminution of financial strength below these levels for the purpose of effecting major expansion proposals.8 DGC proposes to acquire all of the outstanding common shares of CNC stock through an exchange of shares and will not incur any debt as a result of this acquisition. Although the proposal will result in a decline in the capital ratios of DGC, DGC will remain well capitalized, following consummation of the proposal, with capital ratios significantly above the minimum levels specified in the Board's Capital Adequacy Guidelines. In light of DGC's financial and managerial resources, CNC's future prospects should be materially enhanced. Accordingly, based on these and all of the other facts of record, the Board concludes that 5. All data are as of December 31, 1988. 6. The Bank of New York Company, Inc., 74 Federal Reserve Bulletin 257 (1988); Chemical New York Corporation, 73 Federal Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497 (1986); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). 7. Capital Adequacy Guidelines, 50 Federal Register 16,057 (April 24, 1985). 8. Thus, for example, the Board has generally approved proposals involving a decline in capital only where the applicants have promptly restored their capital to preacquisition levels following consummation of the proposals and have implemented programs of capital improvement to raise capital significantly above minimum levels. See, e.g., Citicorp, 72 Federal Reserve Bulletin 726 (1986); Security Pacific Corporation, 72 Federal Reserve Bulletin 800 (1986). 25 financial and managerial considerations are consistent with approval of this application. In considering the convenience and needs of the communities to be served, the Board has taken into account the record of DGC and its bank subsidiary under the Community Reinvestment Act ("CRA") (12 U.S.C. § 2901 et seq.). The CRA requires that federal financial supervisory agencies encourage financial institutions to help meet the credit needs of the local communities in which they operate, 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 low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institutions.9 The Board is required to "take such record into account in its evaluation" of applications under section 3 of the BHC Act. 10 The Board has carefully reviewed the CRA performance record of DGC's subsidiary bank in light of the CRA and the Board's Agency CRA Statement.11 The Agency CRA Statement provides guidance regarding the types of policies and procedures that the supervisory agencies believe financial institutions should have in place in order to fulfill their responsibilities under the CRA on an ongoing basis and the procedures that the supervisory agencies will use during the application process to review an institution's CRA compliance and performance. Initially, the Board notes in this case that Deposit Guaranty National Bank ("DGN Bank") received a satisfactory CRA assessment from its primary supervisory agency in its most recent examination. In addition, DGN Bank has in place the types of programs outlined in the Agency CRA Statement as essential to an effective CRA program. The CRA program implemented by DGN Bank has a community outreach component that calls for ongoing community contact regarding the needs of the community, including low- and moderate-income neighborhoods, and the 9. 12 U.S.C. § 2903. 10. In this regard, following the expiration of the public comment period in this case, the Board received comments filed by the Jackson CRA Coalition, Jackson, Mississippi ("Protestant"), alleging that DGC has not provided an adequate analysis of the credit needs of its community and that DGC has not provided adequate business or mortgage loans to the low-income and minority areas of Jackson. Under the Board's Rules of Procedure, the Board is not required to consider comments received following the close of the public comment period. 12 C.F.R. 262.3(e). See also Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act (March 21, 1989) ("Agency CRA Statement"). The Board, in its discretion, may consider the substance of any comments received regarding an application. The Board's consideration of the CRA performance record in this case included review of the adequacy of the banking organization's lending and outreach efforts, which were the subject of Protestant's comments in this case. 11. 54 Federal Register 13,742 (1989). 26 Federal Reserve Bulletin • January 1990 products and services that the bank offers to meet these needs. DGN Bank also uses specialized marketing efforts to ensure that all segments of the community are aware of its services. For example, DGN Bank regularly uses minority-owned media to reach minority segments of the community. DGN Bank has established a CRA Compliance Officer Network within its banking system. Each CRA Officer has responsibility for a CRA Activity Report that is made monthly and forwarded through the CRA Regional Captain to the Community Affairs Officer in Jackson, Mississippi. The Community Affairs Officer briefs the DGN Bank's board of directors quarterly on CRA matters. DGN Bank is an active provider of home improvement loans in minority areas. DGN Bank also participates in small business lending in low- and moderateincome areas and has participated in federal programs to increase the housing available to the elderly and low- and moderate-income families. In addition, DGN Bank also hired consultants to survey its communities and to devise methods for increasing DGN Bank's marketing and lending in low- and moderate-income communities. DGN Bank has implemented several of the recommendations from the survey, including increased advertising and product development to meet the needs of minorities in DGN Bank's service area and hosts seminars on small-business financing and consumer finance issues. Several of the recently implemented programs are similar to the programs sought by Protestant. Based upon the overall CRA record of DGN Bank and other facts of record, the Board concludes that convenience and needs considerations, including the record of performance under the CRA of DGC's subsidiary bank, are consistent with approval of this application.12 12. Protestant has requested a public meeting or hearing on the applications to provide testimony on the issues presented by these applications. Although section 3(b) of the BHC Act does not require a public meeting or hearing in this instance, the Board may, in its discretion, order a public meeting or hearing. See 12 C.F.R. 262.3(e). In that regard, the Board's Rules of Procedure 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). In addition, under the provisions of the Board's Regulation Y, 12 C.F.R. 225.23(g), the Board shall order a hearing only if there are disputed issues of material fact that cannot be resolved in some other manner. The Board has carefully considered Protestant's requests for a public meeting or hearing. In the Board's view, the parties have had ample opportunity to present their arguments in writing. In light of these facts, the Board has determined that a public meeting or hearing is not necessary to clarify the factual record in these applications, or otherwise warranted in this case. Accordingly, the Protestant's request for a public meeting or hearing on these applications is hereby denied. 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 CNC shall not be consummated before the thirtieth calendar day following the effective date of this Order, or later than three months after the effect date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta, acting pursuant to delegated authority. By order of the Board of Governors, effective November 27, 1989. Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Kelley, and LaWare. Absent and not voting: Chairman Greenspan. J E N N I F E R J . JOHNSON Associate Secretary of the Board Orders Issued Under Section 4 of the Bank Holding Company Act J.P. Morgan & Company Incorporated New York, New York Order Approving Application to Act as Agent in the Private Placement of All Types of Securities and Act as Riskless Principal in Buying and Selling Securities J.P. Morgan & Company Incorporated, New York, New York ("Morgan"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC 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, J.P. Morgan Securities Inc., New York, New York ("Company"), to act as agent in the private placement of all types of securities, including providing related advisory services, and to buy and sell all types of securities on the order of investors as a "riskless principal". Some of the proposed services are currently being offered by Morgan's lead subsidiary bank. Morgan, with consolidated assets of $99.9 billion, is the third largest banking organization in the United States. 1 It operates two subsidiary banks and engages directly and through subsidiaries in a broad range of nonbanking activities, including engaging through Company in underwriting and dealing in, to 1. Data are as of June 30, 1989. Legal Developments a limited extent, certain securities.2 Company is and will continue to be a broker-dealer registered with the Securities and Exchange Commission and subject to the record-keeping, reporting, fiduciary standards, and other requirements of the Securities Exchange Act of 1934, the New York Stock Exchange and the National Association of Securities Dealers. Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (54 Federal Register 16,406 (1989)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the public interest factors set forth in section 4(c)(8) of the BHC Act. The Board received written comments opposing the application from the Securities Industry Association ("SIA"), a trade association of the investment banking industry, and the Investment Company Institute ("ICI"), a trade association of the mutual fund industry.3 Because Company would be affiliated through common ownership with a member bank, Company may not be "engaged principally" in underwriting or dealing in securities within the meaning of section 20 of the Banking Act of 1933 (the "Glass-Steagall Act"). 4 In earlier decisions, the Board has determined that Company is not "engaged principally" in section 20 activities if revenues from underwriting and dealing in securities that banks are not authorized to underwrite and deal in directly ("ineligible securities") do not exceed 10 percent of Company's gross revenues. In its recent Bankers Trust decision, the Board determined that acting as agent in the private placement of securities and purchasing and selling securities on the order of investors as a "riskless principal" do 2. See J.P. Morgan & Co. Incorporated, The Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp and Security Pacific Corporation, 75 Federal Reserve Bulletin 192 (1989) ("J.P. Morgan et a/."); Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust New York Corporation, 11 Federal Reserve Bulletin 473 (1987), a f f 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); and J.P. Morgan & Co. Incorporated, 73 Federal Reserve Bulletin 875 (1987); as modified by Order Approving Modifications to Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989). 3. The comments of the ICI were received substantially after the close of the comment period prescribed in the notice of this application and therefore are not required to be considered by the Board. In any event, the ICI has objected to Morgan's proposal to the extent that it could be construed to seek approval for Company to privately place securities of investment companies that are sponsored or advised by Company or Morgan. Morgan has not requested approval to place such securities. 4. Section 20 of the Glass-Steagall Act (12 U . S . C . § 377) provides that " . . . no member bank shall be affiliated . . . with any . . . organization engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes, or other securities. . . . " 27 not constitute underwriting and dealing in securities for purposes of section 20 of the Glass-Steagall Act, and therefore revenue derived from these activities is not subject to the 10 percent revenue limitation on ineligible securities underwriting and dealing.5 Except as described below, the methods and procedures Company will use in conducting its private placement and riskless principal activities will be consistent with those approved in the Bankers Trust decision. Additionally, in that decision the Board found that, subject to a number of prudential limitations that address the potential for conflicts of interests, unsound banking practices or other adverse effects, private placement and riskless principal 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. Morgan has committed that Company will conduct its private placement and riskless principal activities subject to all of the prudential limitations agreed to by Bankers Trust with the following exceptions. 6 Specifically, Morgan has not agreed to conditions in the prior decision that restrict 1) extensions of credit by the bank holding company or any of its affiliates to pay the principal amount of, or interest on, securities placed by the section 20 subsidiary; and 2) purchases for their own account by the parent holding company and other nonbank affiliates of section 20 subsidiaries of securities being placed by the section 20 subsidiary.7 These conditions were established by the Board to ensure that the objectivity and sound judgment of banks and other affiliates of section 20 subsidiaries would not be impaired by the placement or underwriting profit that the section 20 subsidiary would receive for marketing the securities. Morgan has proposed to have its affiliated banks extend credit to an issuer whose debt securities have 5. Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829 (Order dated October 30, 1989) ("Bankers Trust"). 6. The SIA argues that the fact that Morgan is proposing that Company privately place all types of securities, as opposed to only high grade commercial paper notes as had been previously approved by the Board, is significant in assessing the applicability of the Glass-Steagall Act prohibitions in this case. See Statement Concerning Applicability of the Glass-Steagall Act to the Commercial Paper Placement Activities of Bankers Trust Company (June 4, 1985); and Securities Industry Association v. Board of Governors, 807 F.2d 1052 (D.C. Cir. 1986), cert, denied, 483 U.S. 1005 (1987) ("Bankers Trust II"). The Board considered this argument in Bankers Trust and noted that because the Board and the Bankers Trust II court clearly recognized that commercial paper is a security for purposes of the Glass-Steagall Act, the fact that Bankers Trust (or in this case, Morgan) wishes to privately place all types of securities in a manner similar to that used in the commercial paper case, would not, by itself, change the activity into underwriting and dealing. 7. Morgan has agreed to consult with Federal Reserve staff before transferring its private placement and riskless principal activities from Company to any other nonbank subsidiary of Morgan to assure that none of the firewall provisions committed to is evaded by the transfer. 28 Federal Reserve Bulletin • January 1990 been placed by the section 20 subsidiary where the proceeds would be used to pay the principal amount of the securities at maturity. Morgan has stated that such transactions may be appropriate if, at the time the securities mature, it were more advantageous to the issuer to obtain financing from the bank rather than to reissue the securities. In situations where the decision to extend credit to an issuer of securities placed by the section 20 subsidiary to repay the principal amount of the securities at maturity is made at a different time than when the securities are actually being placed, the likelihood that the decision to extend credit would be influenced by any promotional incentive associated with the placement activity would be minimized, especially in the case of longer term securities. Since the decision whether to extend credit in this situation would not be made while the securities are being marketed, the likelihood that the bank would not exercise independent judgment in assessing the creditworthiness of the issuer in light of all relevant circumstances at the time would be lessened. The bank's credit decisions, moreover, can be closely scrutinized through the examination process. In addition, many of these credit transactions could be subject to the requirements of section 23B of the Federal Reserve Act, which provides that certain types of transactions between a bank and a nonbank affiliate must be on an arms' length basis.8 While it is not entirely clear that section 23B will apply to all of these credit transactions, the Board expects that the standards set out in that section will nevertheless be complied with. Accordingly, the Board believes that it is appropriate to allow banks affiliated with section 20 subsidiaries or other nonbank affiliates to extend credit to an issuer to repay the principal amount of the securities, provided there is some reasonable time difference between the placement of the securities and the decision to extend credit,9 and provided the extensions of credit meet prudent and objective standards. The Board conditions its decision with regard to these extensions of credit on the requirement that Morgan's subsidiary banks or other affiliates maintain detailed and clearly identified credit and collateral documentation so that examiners may determine that a thorough, objective and independent analysis of the credit has been undertaken. In addition, documentation must be maintained to show that the participation by a bank or thrift affiliate in the transaction has been undertaken under circumstances and on terms and conditions 8. 12 U.S.C. § 371c-l. 9. In the Board's view, this requirement will be satisfied if at the time the extension of credit is made, a period of at least three years has elapsed from the time of the placement of the securities. (including pricing, minimum borrower cash flow-todebt service or collateral requirements, or repayment terms) that are not preferential and that fully reflect the risks associated with the loan, as required under section 23B of the Federal Reserve Act. The Federal Reserve Bank of New York will closely review loan documentation of bank affiliates to ensure that an independent and thorough credit evaluation has been undertaken with respect to the participation of the bank in these credit extensions to issuers of securities privately placed by an agent affiliated with the bank. With respect to the affiliate purchase restriction, Morgan has also proposed to have Company place securities with its parent holding company or with a nonbank subsidiary of the parent company. 10 In this regard, the Board notes that banks that currently place securities do place them with the parent company or other nonbank affiliates. No particular supervisory problem has to date arisen from such investments. In addition, since purchases of securities will not be made by the affiliated bank, the possibility that losses as a result of these investments will adversely affect the federal safety net protecting the bank is minimized. Accordingly, the Board believes that it is appropriate to allow Company to place securities with its parent holding company or a nonbank affiliate. The Board recognizes that the potential for certain conflicts of interest may be increased if affiliates were to purchase the entire issue of securities placed by the section 20 subsidiary or a substantial portion of such an issue. The Board therefore believes that it is appropriate to require that affiliates of the section 20 subsidiary limit their investment, both individually and in the aggregate, in any particular issue of securities that are placed by the section 20 subsidiary. The Board expects that Morgan will establish appropriate internal policies, procedures, and limitations regarding the amount of securities of any particular issue placed by Company that may be purchased by Morgan and each of its nonbanking subsidiaries, individually and in the aggregate.11 These policies and procedures, as well as the purchases themselves, will be reviewed by the Federal Reserve Bank of New York. 10. Under current legal restrictions, member banks cannot generally purchase securities privately placed by an affiliate. This is because member banks are prohibited from acquiring any equity securities or unmarketable debt securities, i.e., those that cannot be resold because of SEC private placement restrictions. See 12 U.S.C. §§ 24(Seventh) and 335. 11. This limit should be less than 50 percent of the issue being placed. Additionally, in the development of these policies and procedures, Morgan should incorporate, with respect to placements of securities, the limitations established by the Board in condition 12 of its J.P. Morgan et al. Order regarding aggregate exposure of the holding company on a consolidated basis to any single customer whose securities are underwritten or dealt in by Company. Legal Developments In sum, the record shows that under the framework established in this and prior decisions, consummation of this proposal is not likely to result in any significant undue concentration of resources, decreased or unfair competition, conflicts of interest, unsound banking practices, or other adverse effects. Consummation of this proposal would provide greater efficiencies and added convenience to Morgan's customers by allowing consolidation of a wider range of services in a single entity. Accordingly, the Board has determined that the performance of the proposed activities by Morgan can reasonably be expected to produce public benefits which would outweigh adverse effects under the proper incident to banking standard of section 4(c)(8) of the BHC Act. Based on the above, the Board has determined to approve Morgan's application subject to all of the terms and conditions set forth above. 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 New York, pursuant to delegated authority. By order of the Board of Governors, effective November 22, 1989. Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, and La Ware. Absent and not voting: Governor Kelley. J E N N I F E R J . JOHNSON Associate Secretary of the Board Stichting Amro Amsterdam, The Netherlands Amsterdam-Rotterdam Bank N.V. Amsterdam, The Netherlands Order Approving Application to Engage in Investment Advisory and Securities Brokerage Activities and to Act as Riskless Principal in Buying and Selling Securities Stichting Amro and its subsidiary, Amsterdam-Rotterdam Bank N.V. ("Amro"), both of Amsterdam, 29 The Netherlands (collectively "Applicants"), foreign banking organizations subject to the Bank Holding Company Act ("BHC Act"), have 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), to acquire 42 percent of the voting shares of DBI Holdings, Inc., New York, New York ("DBI"), and thereby to engage in investment advisory and securities brokerage services pursuant to sections 225.25(b)(4) and (15) of the Board's Regulation Y (12 C.F.R. 225.25(b)(4) and (15)); to provide investment advisory and securities brokerage services on a combined basis ("full-service brokerage activities");1 and to buy and sell securities on the order of investors as "riskless principal". Notice of the applications, affording interested persons an opportunity to submit comments, has been duly published (54 Federal Register 40,521 and 47,271 (1989)). The time for filing comments has expired, and the Board has considered the applications and all comments received in light of the public interest factors set forth in section 4(c)(8) of the BHC Act. 2 1. DBI owns Discount Brokers International, Inc., New York, New York ("DBI-U.S."), and Discount Brokers International (U.K.) Ltd., London, England ("DBI-U.K."). DBI-U.K. would engage in securities brokerage services for customers outside the United States, pursuant to section 4(c)(9) of the BHC Act and section 221.23(f)(3) of the Board's Regulation K. Applicants have committed that DBI-U.K. will limit its activities to those permitted for DBI's United States subsidiaries pursuant to this Order or otherwise permitted to domestic subsidiaries of bank holding companies under section 225.25(b) of the Board's Regulation Y (12 C.F.R. 225.25(b)). DBI-U.S. currently engages in securities brokerage activities. Applicant proposes to form a new limited partnership, Henry Krieger/DBI, L.P., New York, New York ("Krieger/DBI") that would succeed the businesses of DBIU.S. and of Henry Krieger & Co., New York, N e w York, a limited partnership engaged in securities brokerage services. Krieger/DBI would engage in investment advisory, securities brokerage, fullservice brokerage activities, and act as riskless principal. 2. The Board received a written comment opposing the riskless principal portion of the application from the Securities Industry Association ("SIA"), a trade association of the investment banking industry. The SIA argues that acting as a riskless principal is a form of dealing in securities prohibited by section 20 of the Banking Act of 1933 (the "Glass-Steagall Act") and that Applicants would be able to act as an underwriter or dealer in the United States for securities underwritten or traded by its foreign affiliates. The SIA further contends that acting as riskless principal is not closely related to banking for purposes of the BHC Act and that, in any event, the application should be denied under the BHC Act because no public benefits would result from this activity. For the reasons stated in Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829 (Order dated October 30,1989) ("Bankers Trust") and J.P. Morgan & Company Incorporated, 76 Federal Reserve Bulletin 26 (Order dated November 22,1989), the Board finds that the proposed riskless principal activity is not underwriting or dealing securities within the meaning of section 20. Moreover, Applicants have committed that DBI and its subsidiaries would not engage in riskless principal transactions with, or on behalf of, Applicants or any of Applicants' affiliates, including foreign affiliates that engage in securities dealing activities overseas. In addition, in these orders the Board rejected the assertions of the SIA and determined that acting as a riskless principal is closely related to banking under the BHC Act. As indicated below, the Board has determined that the balance of public interest factors that it must consider under section 4(c)(8) of the BHC Act is favorable in this case. 30 Federal Reserve Bulletin • January 1990 Amro, with consolidated assets equivalent to approximately $83.5 billion, is the second largest banking organization in The Netherlands.3 In the United States, Applicants maintain a branch in New York and representative offices in Chicago, Houston, and Los Angeles. Accordingly, Applicants are subject to the nonbanking restrictions of section 4 of the BHC Act as a bank holding company pursuant to section 8 of the International Banking Act of 1978. 12 U.S.C. § 3106. The Board has previously determined by regulation that the investment advisory services and securities brokerage services that Applicants propose to conduct through DBI are closely related to banking and permissible for bank holding companies.4 The Board has also previously determined by Order that combined investment advisory and securities brokerage services, and acting as riskless principal, are closely related to banking and permissible for bank holding companies, subject to certain limitations.5 For the reasons stated in those Orders, the Board confirms that engaging in full-service brokerage activities, and acting as a riskless principal, within the limits described in the Board's Orders, are closely related to banking for purposes of the BHC Act. Applicants propose that DBI and its subsidiaries conduct these activities subject to the requirements of the Board's regulations and those previous Board Orders. In this regard, DBI and its subsidiaries would not have an inventory of securities. When acting as a riskless principal, DBI and its subsidiaries would only engage in transactions in the secondary market and not at the order of a customer that is the issuer of the securities to be sold, and would not hold themselves out as making a market in the securities that they buy and sell as riskless principal. Moreover, DBI and its subsidiaries would not engage in riskless principal transactions with Applicants or any of Applicants' affiliates, including foreign affiliates that engage in securities dealing activities overseas. The Board must also find that the proposed acquisition "can reasonably be expected to produce benefits to the public . . . that outweigh the possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices." 12 U.S.C. § 1843(c)(8). Prior decisions of the Board indicate a concern that joint ventures could potentially lead to a matrix of relationships between co-venturers that could break down the legally mandated separation of 3. Data are as of December 31, 1988. 4. 12 C.F.R. 225.25(b)(4) and (15). 5. See, Bank of New England Corporation, 74 Federal Reserve Bulletin 700 (1988) (full-service brokerage); Bankers Trust (private placement). banking and commerce, create the possibility of conflicts of interest and other adverse effects that the BHC Act was designed to prevent, or impair or give the appearance of impairing the ability of the banking organization to function effectively as an independent and impartial provider of credit. 6 Further, joint ventures must be carefully analyzed for any possible adverse effects on competition and on the financial condition of the banking organization involved in the proposal. In prior cases involving joint ventures between bank holding companies and firms generally engaged in securities activities not authorized for bank holding companies, the Board has relied upon a series of commitments to address these potential adverse effects. These commitments are designed to separate the activities of the joint venture from those of the nonbanking co-venturers. See Amsterdam-Rotterdam Bank, N.V., 70 Federal Reserve Bulletin 835 (1984). In this case, Applicants have made a number of commitments to assure this separation. Under the circumstances of this case, the Board finds these commitments are sufficient to address its concerns with potential adverse effects associated with the joint ventures. In applications under section 4(c)(8) of the BHC Act, the Board considers the financial condition and resources of the applicant and its subsidiaries, and the effects of the proposed transaction on those resources. In accordance with the principles of national treatment and competitive equity, the Board has stated that it expects a foreign bank to meet the same general standards of financial strength as domestic bank holding companies and to be able to serve as a source of strength to its United States banking operations.7 In considering applications of foreign banking organizations, the Board has noted that foreign banks operate outside the United States in accordance with different regulatory and supervisory requirements, accounting principles, asset quality standards, and banking practices and traditions, and that these differences have made it difficult to compare the capital positions of 6. See, e.g., The Long-Term Credit Bank of Japan, Limited, 75 Federal Reserve Bulletin 719 (1989); and Amsterdam-Rotterdam Bank, N.V., 70 Federal Reserve Bulletin 835 (1984). 7. Bank of Seoul, 74 Federal Reserve Bulletin 684 (1988); The Bank of Tokyo, Ltd., 74 Federal Reserve Bulletin 685 (1988); Toyo Trust and Banking Co., Ltd., 74 Federal Reserve Bulletin 623 (1988); Taiyo Kobe Bank, Ltd., 74 Federal Reserve Bulletin 621 (1988); Sumitomo Trust & Banking Co., Ltd., 73 Federal Reserve Bulletin 749 (1987); Ljubljanska Banka-Associated Bank, 72 Federal Reserve Bulletin 489 (1986); The Mitsubishi Trust and Banking Corporation, 72 Federal Reserve Bulletin 256 (1986); The Industrial Bank of Japan, Ltd., 72 Federal Reserve Bulletin 71 (1986); The Mitsubishi Bank, Limited, 70 Federal Reserve Bulletin 518 (1984). See also Policy Statement on Supervision and Regulation of Foreign-Based Bank Holding Companies, Federal Reserve Regulatory Service H 4 - 8 3 5 (1979). Legal Developments domestic and foreign banks. In the past, the Board has addressed the complex issues involved in balancing these concerns in the context of individual applications on a case-by-case basis, making adjustments as appropriate to an applicant's capital to reflect differences in accounting treatment and regulatory practices. The Board recently has adopted a proposal to supplement its consideration of capital adequacy with a risk-based system that is simultaneously being proposed by the member countries of the Basle Committee on Banking Regulations and Supervisory Practices and the other domestic federal banking agencies.8 The Board considers the Basle Committee proposal an important step toward a more consistent and equitable international norm for assessing capital adequacy. Until that framework becomes effective, however, the Board will continue to evaluate applications involving foreign banking organizations on a case-by-case basis consistent with its prior precedent. In this case, the Board notes that the stated primary capital ratio of Amro meets the minimum capital guidelines for United States multinational bank holding companies. Further, Amro meets the 1990 interim risk-based guidelines, and its core capital exceeds the 1992 minimum standard adopted by the Basle Committee. The Board also notes that the applications involve permissible nonbanking activities that require a small commitment of capital. In view of these and other facts of record, the Board has determined that financial factors are consistent with approval of the applications. Consummation of Applicants' proposal may be expected to provide increased services and convenience to DBI's customers and gains in efficiency. Additionally, as a de novo investment adviser, Krieger/DBI may be expected to increase competition in this activity. Accordingly, the Board has determined that performance of the proposed activities by DBI can reasonably be expected to produce benefits to the public. For these reasons, and in reliance on the commitments offered in this case, the Board believes that the proposal is not likely to result in decreased or unfair competition, conflicts of interests, unsound banking practices, undue concentration of resources, or other adverse effects. Based on the foregoing and other facts of record, the Board has determined that the balance of public interest factors that it must consider under section 4(c)(8) of the BHC Act is favorable. Accordingly, the Board has determined that the applications should be, and hereby are, approved. This determination is subject to 8. 54 Federal Register 4186 (1989). 31 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 holding company 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 New York, pursuant to delegated authority. By order of the Board of Governors, effective November 30, 1989. Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Kelley, and LaWare. WILLIAM W . WILES Secretary of the Board Orders Issued Under Sections 3 and 4 of the Bank Holding Company Act Lisco State Company Lisco, Nebraska Order Approving Acquisition of a Bank Holding Company and Companies Engaged in Insurance and Lending Activities Lisco State Company, Lisco, Nebraska ("Lisco"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has applied for the Board's approval under section 3(a)(3) of the BHC Act (12 U.S.C. § 1843(a)(3)) to acquire 28.3 percent of the voting shares of O & F Cattle Company, Oshkosh, Nebraska ("O & F"), and indirectly acquire Nebraska State Bank, Oshkosh, Nebraska ("Nebraska Bank"). Lisco has also applied for the Board's approval under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) to engage, through the existing subsidiaries of O & F, in making and servicing loans and other extensions of credit, in the sale of credit-related insurance, and in general insurance agency activities in communities with a population of less than 5,000. These activities are authorized for bank holding companies pursuant to the Board's Regulation Y. 12 C.F.R. 225.25(b)(1), (8)(i) and (8)(iii). Notice of the applications, affording interested persons an opportunity to submit comments, has been published (54 Federal Register 31,884 (1989)). The time for filing comments has expired, and the Board has considered the applications and all comments 32 Federal Reserve Bulletin • January 1990 received in light of the factors set forth in section 3(c) of the BHC Act and the public interest factors set forth in section 4(c)(8) of the BHC Act. Lisco and O & F are among the smaller commercial banking organizations in Nebraska, controlling together deposits of $27.5 million, representing less than one percent of total deposits in commercial banking organizations in the state.1 Consummation of this proposal would not have a significantly adverse effect on the concentration of banking resources in Nebraska. Lisco operates one bank subsidiary, Lisco State Bank, Lisco, Nebraska ("Lisco Bank"). Both Lisco Bank and Nebraska Bank compete in the Garden County banking market.2 Lisco Bank is the smallest of three banks in the market, controlling 22.3 percent of total deposits in commercial banking organizations in the market. Nebraska Bank is the largest commercial bank in the market, controlling 46.6 percent of total deposits in commercial banking organizations in the market. Upon consummation of this proposal, Lisco would become the largest commercial banking organization in the market, controlling 68.9 percent of total deposits in commercial banking organizations in the market. The market would be considered highly concentrated, with the Herfindahl-Hirschman Index ("HHI") increasing by 2077 points to 5712.3 Although consummation of this proposal would result in the substantial reduction of existing competition in the Garden County banking market, several factors mitigate the potential anticompetitive effects of this proposal. The Board has considered the fact that Garden County is a sparsely populated area that has experienced a steady decline in population.4 There are three population centers in Garden County, Nebraska. Lisco, Nebraska, which is the community in which Lisco Bank operates its only office, is an unincorpo- 1. All banking data are as of December 31, 1988. 2. The Garden County banking market is approximated by Garden County, Nebraska. 3. Under the revised Department of Justice Merger Guidelines (49 Federal Register 26,823 (June 29, 1984)), any market in which the post-merger HHI is over 1800 is considered highly concentrated, and the Department of Justice is likely to challenge a merger that increases the HHI by more than 50 points unless other factors indicate that the merger will not substantially lessen competition. The Department of Justice has informed the Board that a bank merger or acquisition is likely to be challenged (in the absence of other factors indicating an anticompetitive effect) if the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. The Department of Justice has informed Board staff that the Department does not object to this acquisition on competitive grounds. 4. Census data for 1980 indicates that Garden County has a population of approximately 2800 and that the population declined by 3.4 percent between 1970 and 1980. U.S. Bureau of the Census, Census of Population (1970 and 1980). The population has continued to decline slowly since 1980. The 1989 Rand McNally Commercial Atlas and Marketing Guide. rated village with a population of less than 100. Oshkosh, Nebraska, which is the community in which Nebraska Bank operates its only office, is 30 miles from Lisco, Nebraska, and has a population of approximately 1100. Garden County as a whole has a population-per-bank ratio of 933, which is considerably lower than the statewide average of 3475.5 Loans originated in the Garden County market have declined 17 percent between 1983 and 1987, and during the period between 1984 and 1988, deposits in the market have grown at only a nominal rate, substantially below the average rate of deposit growth in the state.6 In addition to the market conditions, the Board has considered the fact that members of the same family have owned Lisco Bank and Nebraska Bank since 1967. The father of the principal shareholders of the two banks controlled Lisco Bank from 1924 to 1977, when one of his sons, Thomas Olson, became the principal shareholder of Lisco. William Olson, the brother of Lisco's principal shareholder, also acquired shares of Lisco Bank at that time and both brothers have continued to own their shares of Lisco Bank since 1977. William Olson acquired control of Nebraska Bank in 1967. The two brothers have served at the same time on the boards of either Lisco Bank or Nebraska Bank for 23 years, have served jointly on the boards of several nonbanking organizations, and are joint owners of another bank holding company outside of the market. Moreover, Thomas Olson currently owns 9.9 percent of O & F and has been providing significant management assistance to Nebraska Bank. The Board believes that the history of family ownership of Lisco Bank and Nebraska Bank, and the business relationships between the Olson brothers indicate that competition between Lisco Bank and State Bank has been less than would be expected of two completely independent organizations. Consequently, the Board has determined that, in view of all of the facts of record and in the particular context of the market conditions in this case, consummation of this proposal would not have a significantly adverse effect on competition or the concentration of banking resources in the Garden County banking market. Thus, competitive effects are consistent with approval. 5. Of 64 counties in the United States with estimated populations of 2100 to 3000, two contain no banks or branches, 38 contain one bank or branch, 16 contain two banks or branches, and only eight (including Garden County) contain three or more banks or branches. Only 40 of the 199 counties with a population of 4000 or less support three or more banks or branches. 6. The rate of deposit growth in the market from year-end 1984 through year-end 1988 averaged only 2.8 percent, well below the state average of 5.25 percent. Legal Developments The financial and managerial resources of Lisco, 0 & F and their respective bank subsidiaries and their future prospects are consistent with approval. Considerations relating to convenience and needs of the community to be served are also consistent with approval. Lisco has also applied, pursuant to section 4(c)(8), to acquire indirectly the existing lending and insurance subsidiaries of O & F. These activities are permissible for bank holding companies under sections 225.25(b)(1),(8)(i) and (8)(iii) of the Board's Regulation Y (12 C.F.R. 225.25(b)(1),(8)(i) and (8)(iii). Lisco does not operate any nonbanking subsidiaries that compete with these companies. Further, 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 BHC Act is favorable and consistent with approval of this application. and hereby are, approved. The acquisition of O & F 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, pursuant to delegated authority. The determinations as to O & F'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 29, 1989. Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Kelley, and LaWare. Based on the foregoing and other facts of record, the Board has determined that the applications should be, APPLICATIONS APPROVED 33 WILLIAM W . WILES Secretary of the Board UNDER BANK HOLDING COMPANY 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. Applicant Bank(s) FirsTier Financial, Inc., Omaha, Nebraska Huntington Bancshares Incorporated, Columbus, Ohio Huntington Bancshares of West Virginia, Inc., Columbus, Ohio Scottsbluff National Corporation, Scottsbluff, Nebraska First Banc Securities, Inc., Morgantown, West Virginia Legal Developments continued on next page. Effective date November 21, 1989 November 22, 1989 34 Federal Reserve Bulletin • January 1990 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 Allegheny Bankshares Corporation, Lewisburg, West Virginia American State Financial Corporation of Delaware, Wilmington, Delaware Bancroft State Bancshares, Inc., Bancroft, Wisconsin Bancshares of McLouth, Inc., McLouth, Kansas BankersTrust of Alabama, Inc., Madison, Alabama Barrow Bancshares, Inc., Winder, Georgia Blue Valley Ban Corp., Leawood, Kansas Buckley Bancorp, Inc., Buckley, Illinois Capitol Bancorp, Ltd., Lansing, Michigan Constitution Bancorp, Inc., Philadelphia, Pennsylvania Constitution Bank, Philadelphia, Pennsylvania Crestar Financial Corporation, Richmond, Virginia Drummond Banking Company, Chiefland, Florida El Capitan Bancshares, Inc., Sonora, California F & M Financial Services Corporation, Menomonee Falls, Wisconsin Financial Institutions, Inc., Warsaw, New York Bank(s) Reserve Bank Effective date First National Bank in Marlinton, Marlinton, West Virginia Richmond November 3, 1989 Brownfield State Bank, Brownfield, Texas American State Bank, Lubbock, Texas Liberty State Bank, Lubbock, Texas American State Bank of Snyder, Snyder, Texas Bancroft State Bank, Bancroft, Wisconsin The Bank of McLouth, McLouth, Kansas Bankers Trust of Madison, Madison, Alabama Barrow Bank & Trust Company, Winder, Georgia Bank of Blue Valley, Overland Park, Kansas Buckley State Bank, Buckley, Illinois Portage Commerce Bank, Portage, Michigan CB Interim State Bank, Philadelphia, Pennsylvania Dallas November 13, 1989 Chicago November 8, 1989 Kansas City November 16, 1989 Atlanta November 1, 1989 Atlanta October 30, 1989 Kansas City October 26, 1989 Chicago November 1, 1989 Chicago November 10, 1989 Philadelphia November 3, 1989 The Northern Virginia Banking Corporation, Sterling, Virginia Drummond Community Bank, Chiefland, Florida El Capitan National Bank, Sonora, California St. Francis State Bank, St. Francis, Wisconsin Richmond November 15, 1989 Atlanta November 16, 1989 San Francisco November 20, 1989 Chicago October 30, 1989 Salamanca Trust Company, Salamanca, New York New York November 13, 1989 Legal Developments 35 Section 3—Continued Applicant Firstar Corporation, Milwaukee, Wisconsin Firstar Corporation of Illinois, Milwaukee, Wisconsin Ford Bank Group, Inc., Lubbock, Texas Graymont Bancorp, Inc., Graymont, Illinois The H. Pat Henson Company, Maysville, Oklahoma Hi-Bancorp, Inc., High wood, Illinois Holly Grove Bancshares, Inc., Holly Grove, Arkansas Hometown Bancshares, Inc., Middlebourae, West Virginia Kansas Bank Corporation, Liberal, Kansas Liberty National Bancorp, Inc., Louisville, Kentucky KBT Bancshares, Inc., Madisonville, Kentucky Maryland Publick Banks, Inc., Annapolis, Maryland North Bancorp, Inc., Gaylord, Michigan Norwest Corporation, Minneapolis, Minnesota Peotone Bancorp, Inc., Peotone, Illinois Prairie Bancorp, Inc., Manlius, Illinois Bank(s) Reserve Bank Effective date Park Forest Holdings, Inc., Omaha, Nebraska Chicago November 13, 1989 First Canyon Bancorporation, Inc., Canyon, Texas First Canyon Bancshares, Inc., Canyon, Texas The First National Bank in Canyon, Canyon, Texas First Borger Bancshares, Inc., Borger, Texas First National Bank of Borger, Borger, Texas Permian Financial Corporation, Crane, Texas First State Bank, Crane, Texas State Bank of Graymont, Graymont, Illinois Peoples State Bank, Blair, Oklahoma GNP Bancorp, Inc., Mundelein, Illinois Bank of Holly Grove, Holly Grove, Arkansas Universal Banc Corp., Paden City, West Virginia Elkhart Financial Corporation, Elkhart, Kansas The Community Bank, Inc., Erlanger, Kentucky Dallas November 10, 1989 Chicago October 26, 1989 Kansas City November 6, 1989 Chicago November 1, 1989 St. Louis November 10, 1989 Cleveland November 17, 1989 Kansas City November 13, 1989 St. Louis October 27, 1989 The Annapolis National Bank (in organization), Annapolis, Maryland First National Bank of Gaylord, Gaylord, Michigan First Bellevue Bancshares, Co., Bellevue, Nebraska Rock River Bancorporation, Oregon, Illinois The First National Bank of Manlius, Manlius, Illinois Richmond November 17, 1989 Chicago November 14, 1989 Minneapolis October 27, 1989 Chicago November 8, 1989 Chicago November 8, 1989 36 Federal Reserve Bulletin • January 1990 Section 3—Continued Applicant Primo Financial Services, Inc., Apple Valley, Minnesota Southern Crescent Financial Corp., Jonesboro, Georgia Southside Bancshares Corp., St. Louis, Missouri Synovus Financial Corp., Columbus, Georgia TB&C Bancshares, Inc., Columbus, Georgia The Union of Arkansas Corporation, Little Rock, Arkansas United Bank Corporation of New York, Downsville, New York Valley Capital Corporation, Las Vegas, Nevada Village Financial Services, Ltd., Port Chester, New York Weld State Company, Fort Lupton, Colorado WRZ Bankshares, Inc., Plainview, Minnesota Bank(s) Reserve Bank Effective date State Bank of Hampton, Hampton, Minnesota Clayton National Bank, Morrow, Georgia Minneapolis November 16, 1989 Atlanta November 3, 1989 Farmers and Merchants Bank of Berger, Berger, Missouri Bank of Pensacola, Pensacola, Florida St. Louis November 6, 1989 Atlanta November 9, 1989 Financial Properties, Inc., Jacksonville, Arkansas St. Louis November 2, 1989 The First National Bank of Lisbon, Lisbon, New York First Business Bank of Arizona, Phoenix, Arizona Village Savings Bank, Port Chester, New York The First National Bank of Windsor, Windsor, Colorado Peoples State Bank, Plainview, Minnesota New York October 27, 1989 San Francisco October 31, 1989 New York November 3, 1989 Kansas City November 9, 1989 Minneapolis November 3, 1989 Section 4 Applicant Ace Gas Inc., Deshler, Nebraska Elmwood Bancshares, Inc., Elm wood, Illinois First Busey Corporation, Urbana, Illinois First of America Bank Corporation, Kalamazoo, Michigan First State Bancorp, Inc., Harwood Heights, Illinois Nonbanking Activity/Company Reserve Bank Effective date Gibbon Exchange Company, Gibbon, Nebraska Warren E. Stenwall d/b/a Stenwall Insurance Agency, Elmwood, Illinois MRCG, Inc. d/b/a The Marcom Group, Champaign, Illinois The Security First Corporation, Peoria, Illinois Kansas City October 25, 1989 Chicago November 14, 1989 Chicago November 22, 1989 Chicago October 27, 1989 American Mortgage and Real Estate Services, Inc., Chicago, Illinois Chicago November 20, 1989 Legal Developments 37 Section 4—Continued Nonbanking Activity/Company Applicant The Hongkong and Shanghai Banking Corporation Limited, Hong Kong, B.C.C. Kellett N.V., Curacao, Netherlands Antilles HSBC Holdings B.V., Amsterdam, the Netherlands Liberty National Bancorp, Inc., Louisville, Kentucky MNC Financial, Inc., Baltimore, Maryland Oesterreichische Laenderbank Aktiengesellschaft, Vienna, Austria Security Pacific Corporation, Los Angeles, California APPLICATIONS APPROVED Reserve Bank Effective date Marine Midland Banks, Inc., Buffalo, New York New York November 14, 1989 Banker's Investment Group, Inc., Louisville, Kentucky ABTS, Inc., Rock Hill, South Carolina LB Credit Corporation, San Francisco, California St. Louis November 9, 1989 Richmond October 27, 1989 New York November 8, 1989 San Francisco November 14, 1989 Sumisei Secpac Investment Advisors, Inc., Los Angeles, California 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 American Bank of St. Louis, St. Louis, Missouri CivicBank of Commerce, Oakland, California First of America Bank-Northern Michigan, Cheboygan, Michigan Liberty Bank-Oakland, Troy, Michigan Villa Grove State Bank, Villa Grove, Illinois Bank(s) American Bank of St. Louis County, Chesterfield, Missouri Meridian National Bank, Concord, California Antrim County State Bank, Mancelona, Michigan Liberty State Bank & Trust, Hamtramck, Michigan The First National Bank of Villa Grove, Villa Grove, Illinois Reserve Bank Effective date St. Louis October 31, 1989 San Francisco November 9, 1989 Chicago November 14, 1989 Chicago November 8, 1989 Chicago November 10, 1989 38 Federal Reserve Bulletin • January 1990 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Executive National Bank v. Board of Governors, Nos. 89-4831, 89-4852 (5th Cir., filed November 6, 1989). Petition for declaratory judgment that a bank holding company application to the Board was deemed approved by operation of law pursuant to the Board's 91-day rule. Dismissed on November 16, 1989. Consumers Union of U.S., Inc. v. Board of Governors, No. 89-3008 (D.D.C., filed November 1, 1989). Challenge to various aspects of Regulation Z implementing the Home Equity Loan Consumer Protection Act. Board of Governors v. Consolidated Bancorp, No. W-89-CA251 (W.D. Tex., filed September 8, 1989); Consolidated Bancorp v. Board of Governors, No. AP-89-6081 (Bankr. W.D. Tex., filed September 15, 1989). Actions to enforce, and to enjoin, administrative subpoena against bank holding company. Stipulations of dismissal filed November 27, 1989. First Savings Bank v. Federal Reserve System, et al., No. 89-4117 (D.S.D., filed August 31, 1989). Complaint seeking injunction against Board order approving branch application. Dismissed November 21, 1989. Synovus Financial Corp. v. Board of Governors, No. 89-1394 (D.C. Cir., filed June 21, 1989). Petition for review of Board order permitting relocation of a bank holding company's national bank subsidiary from Alabama to Georgia. MCorp v. Board of Governors, No. 89-2816 (5th Cir., filed May 2, 1989). Appeal of preliminary injunction against the Board enjoining pending and future enforcement actions against bank holding company now in bankruptcy. Awaiting decision. Independent Insurance Agents of America v. Board of Governors, No. 89-4030 (2d Cir., filed March 9, 1989). Petition for review of Board order ruling that the non-banking restrictions of section 4 of the Bank Holding Company Act apply only to non-bank subsidiaries of bank holding companies. Petition for review denied November 29, 1989. Securities Industry Association v. Board of Governors, No. 89-1127 (D.C. Cir., filed February 16, 1989). Petition for review of Board order permitting five bank holding companies to engage to a limited extent in additional securities underwriting and dealing activities. American Land Title Assoc. v. Board of Governors, No. 88-1872 (D.C. Cir., filed December 16, 1988). Petition for review of Board order ruling that exemption G from the section 4(c)(8) prohibition on insurance activities, which grandfathers insurance agency activities by bank holding companies that conducted insurance agency activities before January 1, 1971, does not limit those grandfathered activities to the specific ones undertaken at that time. Awaiting decision. MCorp v. Board of Governors, No. CA3-88-2693 (N.D. Tex., filed October 10, 1988). Application for injunction to set aside temporary cease and desist orders. Stayed pending outcome of MCorp v. Board of Governors in Fifth Circuit. White v. Board of Governors, No. CU-S-88-623-RDF (D. Nev., filed July 29, 1988). Age discrimination complaint. Baugh v. Board of Governors, No. C88-3037 (N.D. Iowa, filed April 8, 1988). Third party complaint alleging breach of duty under Federal Reserve Act. Dismissed July 3, 1989. Bonilla v. Board of Governors, No. 88-1464 (7th Cir., filed March 11, 1988). Petition for review of Board order of removal. Dismissed November 14, 1989. Cohen v. Board of Governors, No. 88-1061 (D.N.J., filed March 7, 1988). Action seeking disclosure of documents under the Freedom of Information Act. Chase Manhattan Corp. v. Board of Governors, No. 87-1333 (D.C. Cir., filed July 20, 1987). Petition to review order conditionally approving application for bank holding company to underwrite and deal in mortgage-related securities to a limited extent. Stayed by stipulation pending expiration of moratorium or Board reconsideration. Lewis v. Board of Governors, Nos. 87-3455, 87-3545 (11th Cir., filed June 25, August 3, 1987). Petition for review of Board orders approving applications of non-Florida bank holding companies to expand activities of Florida trust company subsidiaries. Matter stayed pending Supreme Court review of Continental Illinois Corp. v. Lewis, 827 F.2d 1517 (11th Cir. 1987). A1 Financial and Business Statistics NOTE. The following tables may have some discontinuities in historical data for some series beginning with the December 1989 issue: 1.12, 1.33, 1.44, 1.52, 1.57-1.60, 2.10, 2.12, 2.13, 3.10, 3.11, 3.15-3.20, 3.22-3.25, 3.27, 3.28, and 4.30. For a more detailed explanation of the changes, see the announcement on page 16 of the January 1990 Bulletin. CONTENTS COMMERCIAL BANKING INSTITUTIONS 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 A17 Major nondeposit funds A18 Assets and liabilities, last-Wednesday-of-month series WEEKLY REPORTING COMMERCIAL BANKS A19 A20 A21 A22 Assets and liabilities All reporting banks Banks in New York City Branches and agencies of foreign banks Gross demand deposits—individuals, partnerships, and corporations FINANCIAL MARKETS A23 Commercial paper and bankers dollar acceptances outstanding A23 Prime rate charged by banks on short-term business loans A24 Interest rates—money and capital markets A25 Stock market—Selected statistics A26 Selected financial institutions—Selected assets and liabilities FEDERAL RESERVE BANKS FEDERAL FINANCE 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 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 43 Federal Reserve Bulletin • January 1990 A56 U.S. reserve assets SECURITIES MARKETS AND CORPORATE FINANCE A34 New security issues—State and local governments and corporations A35 Open-end investment companies—Net sales and asset position A35 Corporate profits and their distribution A35 Total nonfarm business expenditures on new plant and equipment A36 Domestic finance companies—Assets and liabilities and business credit 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 STATES A59 Liabilities to and claims on foreigners A60 Liabilities to foreigners REAL ESTATE A37 Mortgage markets A38 Mortgage debt outstanding CONSUMER INSTALLMENT CREDIT A39 Total outstanding and net change A40 Terms A41 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets A44 Summary of credit market debt outstanding A45 Summary of credit market claims, by holder Nonfinancial Statistics SELECTED 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 Statistics SUMMARY STATISTICS A55 U.S. international transactions—Summary A56 U.S. foreign trade A63 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 FLOW OF FUNDS Domestic A62 Banks' own claims on foreigners A65 Liabilities to unaffiliated foreigners A66 Claims on unaffiliated foreigners 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 SPECIAL TABLE All Assets and liabilities of commercial banks, June 30, 1989 Money Stock and Bank Credit A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Annual rates of change, seasonally adjusted in percent 1 1988 1989 1989 Monetary and credit aggregates July r Aug/ Sept/ .3 .1 8.3 3.0 -8.0 -5.5 -3.4 3.1 7.2 6.0 24.2 4.0 1.1 2.8 1.5 1.3 9.6 8.6 9.3 7.4 8.1 6.5 11.0 2.8 -5.6 1.2 2.9 4.7 7.6 1.5 7.3 4.6 4.9 7.5 -4.7 r 6.2 5.7 3.3 6.5 10.7 11.4 8.7 8.7 6.5 .5 7.4 2.0 4.9 9.5 5.6 7.4 1.0 2.9 8.4 10.1 7.7 4.5 n.a. n.a. 2.6 10.6 3.5 9.2 9.3 -4.9 9.8 4.0 11.7 -.6 9.7 -17.0 8.1 -22.2 7.0 -7.6 4.0 18.0 13.0 -3.7 22.5 18.1 -14.2 29.0 17.7 -.2 10.4 1.9 -6.6 12.0 1.8 3.3 7.2 3.9 7.3 7.5 -2.1 7.9 4.6 -3.5 5.6 13.1 6.4 -2.5 6.6 8.0 -7.7 4.3 1.2 -19.0 14.0' 5.9 -6.7 9.8 -9.6 -9.1 r 15.5 1.9 -5.4 9.2 -8.3 -1.8 5.2 -22.5 4.0 -2.9 -29.4 3.4 -11.9 -34.3 7.6 9.2 7.7 8.6 6.9 7.8 5.4 8.1 4.3 7.2 .1 8.4 11.0 9.0 12.8 7.0 Q1 Q2 -.8 -1.5 5.3 4.8 -4.2 -4.4 .0 4.6 -8.7 -7.6 -10.2 1.5 2.3 3.6 4.8 5.5 8.9 -.4 1.8 3.7 5.0 8.4 4.1 9.3 Q3r Oct. institutions2 1 2 3 4 Reserves of depository Total Required Nonborrowed Monetary base 3 5 6 7 8 9 Concepts of money, liquid assets, and debt4 Ml M2 M3 L Debt Nontransaction 10 In M2 11 In M3 only6 June Q4 components Time and savings deposits Commercial banks Savings Small-denomination time Large-denomination time 9 ' 10 Thrift institutions 15 Savings 16 Small-denomination time 17 Large-denomination time9 12 13 14 Debt components4 18 Federal 19 Nonfederal 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 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, 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 n.a. n.a. 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 tjme 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. A10 Domestic Financial Statistics • January 1990 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT M i l l i o n s o f dollars Monthly averages of daily figures Weekly averages of daily figures for week ending 1989 1989 Factors Aug. Sept. Oct. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 259,232 261,299 260,634 259,729 261,949 263,247 264,774 260,753 261,148 258,069 218,753 218,753 0 6,609 6,609 0 0 685 568 32,619 11,066 8,518 19,318 219,475 219,018 457 6,762 6,562 200 0 636 879 33,546 11,066 8,518 19,391 215,920 215,920 0 6,546 6,546 0 0 608 734 36,825 11,064 8,518 19,462 219,051 219,051 0 6,555 6,555 0 0 480 592 33,049 11,066 8,518 19,354 219,444 218,362 1,082 6,810 6,555 255 0 746 1,007 33,940 11,066 8,518 19,372 219,798 219,099 699 7,014 6,555 459 0 818 1,118 34,498 11,065 8,518 19,386 221,348 221,168 180 6,698 6,555 143 0 978 532 35,219 11,065 8,518 19,400 216,847 216,847 0 6,555 6,555 0 0 818 550 35,982 11,064 8,518 19,414 216,270 216,270 0 6,555 6,555 0 0 488 898 36,936 11,063 8,518 19,446 212,859 212,859 0 6,542 6,542 0 249,102 429 248,937 431 249,190 439 250,214 424 248,808 435 247,601 436 247,882 440 249,530 436 249,802 439 249,244 439 5,437 250 7,679 257 6,111 245 4,549 270 6,486 243 12,316 236 10,691 312 5,103 241 6,154 260 5,389 221 1,889 314 1,846 351 1,866 327 1,769 272 1,914 419 1,835 412 1,940 310 2,045 257 1,815 247 1,817 332 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 376 873 37,420 11,063 8,518 19,467 ABSORBING RESERVE FUNDS 15 Currency in circulation 16 Treasury cash holdings 2 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 7,948 7,572 8,091 7,378 7,619 7,743 8,654 8,591 7,825 7,654 32,765 33,201 33,410 33,793 34,980 31,637 33,527 33,546 33,634 32,022 End-of-month figures Wednesday figures 1989 1989 Aug. Sept. Oct. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 23 Reserve Bank credit 256,914 264,137 264,717 260,727 272,423 263,276 266,279 262,185 265,872 257,290 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 agreements 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 217,409 217,409 0 6,609 6,609 0 0 541 634 31,722 11,066 8,518 19,344 221,051 221,051 0 6,555 6,555 0 0 598 501 35,433 11,065 8,518 19,425 218,176 218,176 0 6,525 6,525 0 0 270 1,471 38,275 11,062 8,518 19,494 219,188 219,188 0 6,555 6,555 0 0 483 723 33,778 11,066 8,518 19,354 226,447 218,876 7,571 8,340 6,555 1,785 0 962 1,807 34,866 11,065 8,518 19,372 220,565 219,058 1,507 7,613 6,555 1,058 0 585 804 33,708 11,065 8,518 19,386 220,283 220,283 0 6,555 6,555 0 0 3,485 234 35,722 11,065 8,518 19,400 215,035 215,035 0 6,555 6,555 0 0 476 2,102 38,018 11,064 8,518 19,414 218,961 218,961 0 6,555 6,555 0 0 402 2,218 37,736 11,063 8,518 19,446 211,871 211,871 0 6,525 6,525 0 0 397 622 37,876 11,063 8,518 19,467 249,245 420 247,581 440 249,025 444 249,832 424 248,239 435 247,644 440 248,597 435 250,053 439 249,600 438 248,954 442 6,652 265 13,452 326 13,124 252 5,458 187 11,476 192 9,768 335 4,728 322 4,558 305 6,138 217 5,827 214 1,611 273 1,630 318 1,623 292 1,602 265 1,602 299 1,630 376 1,630 278 1,625 217 1,625 277 1,623 810 7,063 8,776 8,303 7,488 7,636 7,659 8,537 7,695 7,612 7,450 30,313 30,623 30,728 34,409 41,499 34,392 40,735 36,289 38,993 31,019 SUPPLYING RESERVE FUNDS 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 3 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. Components may not add to totals because of rounding. Money Stock and Bank Credit 1.12 RESERVES AND BORROWINGS A5 Depository Institutions1 Millions of dollars Monthly averages 9 Reserve classification 1 2 3 4 5 6 7 8 9 10 Reserve balances with Reserve Banks 2 Total vault cash Vault4 Surplus Total reserves Required reserves i Excess reserve balances at Reserve Banks Total borrowings at Reserve Banks Seasonal borrowings at Reserve Banks Extended credit at Reserve Banks 1986 1987 1988 Dec. Dec. Dec. Apr. May June July Aug. Sept/ Oct. 37,360 24,077 22,199 1,878 59,560 58,191 1,369 827 38 303 37,673 26,185 24,449 1,736 62,123 61,094 1,029 777 93 483 37,830 27,197 25,909 1,288 63,739 62,699 1,040 1,716 130 1,244 35,832 26,746 25,456 1,290 61,288 60,511 776 2,289 213 1,707 33,199 27,166 25,712 1,454 58,911 57,881 1,031 1,720 345 1,197 33,852 27,151 25,735 1,416 59,587 58,681 905 1,490 431 917 33,902 27,851 26,351 1,500 60,254 59,288 966 694 497 106 32,823 28,358 26,735 1,622 59,559 58,674 885 675 490 41 33,556 28,085 26,570 1,515 60,126 59,188 938 693 452 22 33,123 28,900 27,274 1,626 60,397 59,377 1,020 555 330 21 1989 Biweekly averages of daily figures for weeks ending 1989 11 12 13 14 15 16 17 18 19 20 Reserve balances with Reserve Banks2 . . . . Total vault cash 3 Vault4 . j Surplus 5 .... Total reserves Required reserves i Excess reserve balances at Reserve Banks Total borrowings at Reserve Banks Seasonal borrowings at Reserve Banks .. Extended credit at Reserve Banks July 12 July 26 Aug. 9 Aug. 23 Sept. 6 Sept. 20 Oct. 4 r Oct. 18r Nov. 1 Nov. 15 34,866 27,607 26,191 1,416 61,057 60,067 990 717 483 146 33,410 27,948 26,432 1,517 59,842 58,807 1,035 681 509 90 32,969 28,166 26,513 1,654 59,481 58,766 715 676 497 55 32,599 28,852 27,212 1,640 59,810 58,859 951 753 489 44 33,053 27,710 26,153 1,557 59,206 58,247 959 538 485 22 34,424r 28,095 26,660 1,436 61,083r 60,195 888r 614 438 21 32,643 28,298 26,695 1,603 59,338 58,343 996 898 453 25 33,581 29,096 27,531 1,565 61,112 60,186 926 653 342 19 32,778 28,875 27,176 1,699 59,954 58,825 1,129 345 280 23 34,477 27,907 26,550 1,357 61,027 60,168 859 272 147 20 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. A10 Domestic Financial Statistics • January 1990 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 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 67,062 9,116 68,826 9,587 75,509 9,855 73,925 11,130 73,746 9,815 68,346 11,332 74,471 9,940 70,886 9,829 69,448 10,114 29,991 6,386 30,448 5,512 27,666 5,717 30,134 5,909 30,192 6,304 30,730 5,929 28,709 6,545 30,368 7,418 26,454 7,778 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 13,871 12,740 13,982 12,743 13,782 12,756 12,595 13,485 15,950 11,758 13,810 12,474 14,929 10,352 15,392 10,890 14,634 10,659 27,945 10,022 29,260 10,847 27,481 10,572 27,613 10,962 30,296 10,845 25,402 15,064 30,312 9,790 30,307 9,651 29,321 9,790 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 10 To all other specified customers 2 34,037 14,675 36,653 13,523 38,783 14,176 35,279 12,805 34,268 12,408 34,582 11,810 39,202 13,277 35,912 13,936 39,237 14,108 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 credit1 Federal Reserve Bank On 11/24/89 Effective date 7 2/24/89 2/24/89 2/24/89 2/24/89 2/24/89 2/24/89 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco . . . 7 After 30 days of borrowing3 First 30 days of borrowing Previous rate On 11/24/89 Effective date 7 2/24/89 2/24/89 2/24/89 2/24/89 2/24/89 2/24/89 6Vl 2/24/89 2/24/89 2/24/89 2/24/89 2/27/89 2/24/89 6 Vl 7 2/24/89 2/24/89 2/24/89 2/24/89 2/27/89 2/24/89 Previous rate 6 On 11/24/89 Effective date Previous rate Effective date 9.00 11/16/89 11/16/89 11/16/89 11/16/89 11/16/89 11/16/89 9.15 11/2/89 11/2/89 11/2/89 11/2/89 11/2/89 11/2/89 Vi 6Vl 9.00 11/16/89 11/16/89 11/16/89 11/16/89 11/16/89 11/16/89 11/2/89 11/2/89 11/2/89 11/2/89 11/2/89 11/2/89 9.15 Range of rates for adjustment credit in recent years 4 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 Range (or level)— All F.R. Banks 6 6-6 6 6VS-7 7 Vi Vi 7-71/4 7'/4 7% 8 s-m m 9>/2 1979—July 20 Aug. 17 20 Sept. 19 21 Oct. 8 10 10 10-10V5 W'A 1980—Feb. 15 19 May 29 30 June 13 16 12-13 13 12-13 12 11-12 11 lOVS-ll 11 11-12 12 F.R. Bank of N.Y. 6 6>/2 6V2 7 7 7W 71/4 73/4 Vi m 9 Vi 9 Vi 8 8 10 lO'/S 10'^ 11 11 12 12 13 13 13 12 11 11 Efifectiv F.R. Bank of N.Y. —July 7,8 1980-—July 79 Sept. ?6 Nov. 17 Dec. 5 10-11 12-13 13 S 8 Nov. ? 6 Dec. 4 13-14 14 13-14 13 12 14 14 13 13 1981-—May —May 70 73 ? 3 16 ?7 30 Oct. 1? 13 Nov. ?? 76 Dec. 14 15 17 -July 1982--July Aug. 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 Yi percent above the rate on adjustment credit. The program was reestablished for 1986 and 1987 but was not renewed for 1988. 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 somewhat above rates on market sources of funds ordinarily will be charged, but Range (or level)— All F.R. Banks 10 11 12 10 10 11 12 12 im-12 \\Vi liVi I \Vi 11—11 Vi II 11 11 \m lOVi lO-lOVi 10 10 9Vi-\Q 9l/i 9-9Vi 9 m~9 m-9 8Vi 10 9Vi 9 9 9 9 1 Vi %Vi 8 /! Effective date Range (or level)— All F.R. Banks 1984—Apr. m-9 9 9 9 SlA-9 m m m 1985—May 20 24 lVl-% m 1-1 Yi 1 Wi-1 9 13 Nov. 21 26 Dec. 24 1986—Mar. 7 10 Apr. 21 July 11 Aug. 21 22 8 6 5^-6 5 Vi 1987—Sept. 4 11 51A-6 6 1988—Aug. 6-6 9 11 1989—Feb. 24 27 In effect Nov. 24, 1989 8 IVi. IVl 1 1 6Y1 6 5W 5 Vl 6 6 Vl (M. 6V2 6 Vi 6V2-I 1 1 1 7 1 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. A10 Domestic Financial Statistics • January 1990 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1 Percent of deposits Type of deposit, and deposit interval Depository institution requirements after implementation of the Monetary Control Act Percent of deposits Effective date 3 12 12/19/89 12/19/89 Nonpersonal time deposits By original maturity Less than Wl years \Vl years or more 3 0 10/6/83 10/6/83 Eurocurrency All types 3 11/13/80 Net transaction accounts3,4 $0 million-$40.4 million More than $40.4 million 5 liabilities 1. Reserve requirements in effect on Dec. 31, 1989. Required reserves must be held in the form of deposits with Federal Reserve Banks or vault cash. Nonmember institutions 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 or 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 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 change in transaction accounts held by all depository institutions, determined as of June 30 each year. Effective Dec. 19, 1989 for institutions reporting quarterly and Dec. 26, 1989 for institutions reporting weekly, the amount was decreased from $41.5 million to $40.4 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 M i l l i o n s o f dollars 1989 1986 Type of transaction 1987 1988 Mar. Apr. May July June Aug. Sept. U . S . TREASURY SECURITIES Outright transactions (excluding transactions) 1 2 3 4 Treasury bills Gross purchases Gross sales Exchange Redemptions 5 6 7 8 9 matched 22,604 2,502 0 1,000 18,983 6,051 0 9,029 8,223 587 0 2,200 0 0 0 0 3,077 0 0 0 311 321 0 1,200 0 571 0 1,200 0 5,517 0 2,400 0 934 0 800 0 0 0 0 Others within 1 year Gross purchases Gross sales Maturity shift Exchange Redemptions 190 0 18,674 -20,180 0 3,659 300 21,504 -20,388 70 2,176 0 23,854 -24,588 0 0 0 2,646 -2,322 0 172 0 1,657 -110 0 0 0 2,863 -3,628 0 0 0 1,828 -1,434 0 0 0 1,749 -1,073 0 0 0 4,200 -4,025 0 0 0 1,832 0 0 10 11 12 13 1 to 5 years Gross purchases Gross sales Maturity shift Exchange 893 0 -17,058 16,985 10,231 452 -17,975 18,938 5,485 800 -17,720 22,515 0 0 -2,646 2,322 1,436 0 -1,532 0 0 75 -2,036 3,328 0 0 -1,828 1,434 0 13 -1,584 787 0 150 -3,321 3,425 0 0 -1,832 0 14 15 16 17 5 to 10 years Gross purchases Gross sales Maturity shift Exchange 236 0 -1,620 2,050 2,441 0 -3,529 950 1,579 175 -5,946 1,797 0 0 0 0 287 0 -125 110 0 0 258 200 0 0 0 0 0 9 -165 286 0 0 -879 400 0 0 0 0 18 19 20 21 Over 10 years Gross purchases Gross sales Maturity shift Exchange 158 0 0 1,150 1,858 0 0 500 1,398 0 -188 275 0 0 0 0 284 0 0 0 0 0 -1,086 100 0 0 0 0 0 0 0 0 0 0 0 200 0 0 0 0 24,081 2,502 1,000 37,170 6,803 9,099 18,863 1,562 2,200 0 0 0 5,255 0 0 311 396 1,200 0 571 1,200 0 5,539 2,400 0 1,084 800 0 0 0 Matched transactions 25 Gross sales 26 Gross purchases 927,999 927,247 950,923 950,935 1,168,484 1,168,142 83,677 82,821 77,349 78,259 123,029 113,041 128,139 138,141 123,373 118,221 146,611 147,228 116,502 120,144 Repurchase agreements2 27 Gross purchases 28 Gross sales 170,431 160,268 314,621 324,666 152,613 151,497 0 0 22,244 12,547 31,419 41,117 6,203 6,203 4,961 4,961 0 0 9,396 9,396 29,988 11,234 15,872 -856 15,863 -20,971 8,232 -13,091 -1,267 3,642 0 0 398 0 0 276 0 0 587 0 0 0 0 0 125 0 0 0 0 0 0 0 0 45 0 0 0 0 0 54 31,142 30,521 80,353 81,350 57,259 56,471 0 0 7,207 3,366 12,732 16,573 1,666 1,666 1,137 1,137 0 0 4,011 4,011 35 Net change in federal agency obligations 222 -1,274 198 0 3,716 -3,841 0 -45 0 -54 36 Total net change in System Open Market Account 30,212 9,961 16,070 -856 19,579 -24,812 8,232 -13,136 -1,267 3,588 All maturities 22 Gross purchases 23 Gross sales 24 Redemptions 29 Net change in U.S. government securities FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 31 Gross sales 32 Redemptions Repurchase agreements2 33 Gross purchases 34 Gross sales 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers acceptances in repurchase agreements, A10 Domestic Financial Statistics • January 1990 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 M i l l i o n s o f dollars Account Sept. 27 Oct. 4 Wednesday End of month 1989 1989 Oct. 11 Oct. 18 Oct. 25 Aug. Sept. Oct. Consolidated condition statement ASSETS 1 Gold certificate account 2 Special drawing rights certificate account i 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 10 Notes 11 Bonds 12 Total bought outright 1 13 Held under repurchase agreements 14 Total U.S. Treasury securities 15 Total loans and securities 11,065 8,518 472 11,065 8,518 478 11,064 8,518 485 11,063 8,518 489 11,063 8,518 429 11,066 8,518 445 11,065 8,518 480 11,062 8,518 492 585 0 0 3,485 0 0 476 0 0 401 0 0 397 0 0 542 0 0 598 0 0 270 0 0 6,555 1,058 6,555 0 6,555 0 6,555 0 6,525 0 6,609 0 6,555 0 6,525 0 96,495 91,950 30,614 219,058 1,507 220,565 98,220 91,450 30,614 220,283 0 220,283 92,971 91,450 30,614 215,035 0 215,035 96,921 91,426 30,614 218,961 0 218,961 89,831 91,426 30,614 211,871 0 211,871 94,846 91,951 30,613 217,409 0 217,409 98,487 91,950 30,614 221,051 0 221,051 96,136 91,426 30,614 218,176 0 218,176 228,764 230,324 222,065 225,917 218,793 224,560 228,203 224,971 6,130 775 6,677 775 11,059 111 8,119 777 5,958 111 6,206 776 6,909 775 10,120 775 24,286 8,647 26,844 8,103 27,114 10,128 28,533 8,426 28,572 8,526 21,292 9,655 26,411 8,247 28,953 8,548 288,656 292,783 291,209 291,842 282,636 282,515 290,607 293,439 229,171 230,110 231,563 231,081 230,358 230,766 229,076 230,467 36,021 9,768 335 376 42,365 4,728 322 278 37,914 4,558 305 217 40,617 6,138 217 277 32,642 5,827 214 810 31,924 6,652 264 275 32,253 13,452 326 318 32,351 13,124 252 292 46,501 47,693 42,994 47,249 39,492 39,116 46,348 46,018 5,326 2,903 6,443 2,961 8,958 2,917 5,900 2,854 5,336 2,651 5,572 3,072 6,408 3,080 8,649 2,819 283,901 287,207 286,431 287,084 277,836 278,524 284,911 287,954 2,198 2,112 445 2,198 2,112 1,266 2,199 2,112 467 2,200 2,112 446 2,222 2,112 465 2,162 1,809 22 2,199 2,112 1,385 2,223 2,112 1,150 33 Total liabilities and capital accounts 288,656 292,783 291,209 291,842 282,636 282,515 290,607 293,439 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 239,416 236,311 234,560 233,490 234,056 242,857 237,904 235,318 16 Items in process of collection 17 Bank premises Other assets 18 Denominated in foreign currencies 3 19 All other 4 20 Total assets LIABILITIES 21 Federal Reserve notes Deposits 22 To depository institutions 2i U.S. Treasury—General account 24 Foreign—Official accounts 25 Other 26 Total deposits 27 Deferred credit items 28 Other liabilities and accrued dividends 29 Total liabilities CAPITAL ACCOUNTS 30 Capital paid in 31 Surplus 32 Other capital accounts Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 36 LESS: Held by bank 37 Federal Reserve notes, net Collateral held against notes net: 38 Gold certificate account 39 Special drawing rights certificate account 40 Other eligible assets 41 U.S. Treasury and agency securities 42 Total collateral 277,492 48,322 229,171 277,846 47,737 230,110 277,846 46,283 231,563 278,175 47,094 231,081 278,559 48,201 230,358 276,492 45,727 230,766 277,676 48,601 229,076 278,866 48,398 230,467 11,065 8,518 11,065 8,518 11,064 8,518 11,063 8,518 11,063 8,518 11,066 8,518 11,065 8,518 11,062 8,518 209,587 210,527 211,982 211,500 210,777 211,182 209,493 210,887 229,171 230,110 231,563 231,081 230,358 230,766 229,076 230,467 0 0 1. Some of these data also appear in the Board's H.4.1 (503) release. For address, see inside front cover. Components may not add to totals because of rounding. 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. 0 0 0 0 0 0 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 A11 Maturity Distribution of Loan and Security Holdings1 Millions of dollars Type and maturity groupings Sept. 27 Oct. 4 Wednesday End of month 1989 1989 Oct. 11 Oct. 18 Oct. 25 Aug. 31 Sept. 29 Oct. 31 1 Loans—Total Within 15 days 2 16 days to 90 days 3 4 91 days to 1 year 585 511 75 0 3,485 3,274 212 0 476 249 226 0 401 379 23 0 397 378 19 0 541 354 187 0 533 455 78 0 270 193 77 0 5 Acceptances—Total 6 Within 15 days 16 days to 90 days 7 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 0 219,058 9,007 51,446 67,417 51,537 13,145 26,506 220,283 7,309 52,824 69,828 50,671 13,145 26,506 215,035 5,809 48,787 70,116 50,671 13,145 26,506 218,961 10,414 48,491 69,846 50,529 13,175 26,506 211,871 8,549 45,903 67,208 50,529 13,175 26,506 217,409 2,459 50,331 73,431 51,537 13,145 26,506 221,051 5,383 54,519 69,961 51,537 13,145 26,506 218,176 8,144 48,677 70,197 51,476 13,175 26,506 6,555 191 619 1,339 3,213 1,004 189 6,555 44 759 1,376 3,173 1,014 189 6,555 94 665 1,381 3,198 1,028 189 6,555 183 589 1,368 3,198 1,028 189 6,525 89 635 1,394 3,180 1,038 189 6,609 334 472 1,359 3,242 1,012 189 6,555 191 619 1,339 3,213 1,004 189 6,525 89 672 1,357 3,180 1,038 189 9 U.S. Treasury securities—Total 10 Within 15 days 2 11 16 days to 90 days 12 91 days to 1 yeai 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 2 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. NOTE: Components may not add to totals due to rounding, A10 Domestic Financial Statistics • January 1990 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1 Billions of dollars, averages of daily figures 1989 Item 1985 Dec. 1986 Dec. 1987 Dec. 1988 Dec. Mar. 2 3 4 5 Nonborrowed reserves Nonborrowed reserves plus extended credit4 Required reserves Monetary base May June July Aug. Sept/ Oct. Seasonally adjusted ADJUSTED FOR , CHANGES IN RESERVE REQUIREMENTS 2 1 Total reserves3 Apr. 48.49 58.14 58.69 60.71 59.85 59.46 58.74 58.35 58.70 58.75 59.22 59.62 47.17 47.67 47.44 219.51 57.31 57.62 56.77 241.45 57.92 58.40 57.66 257.99 58.99 60.23 59.67 275.50 58.04 59.38 58.90 278.61 57.17 58.88 58.69 278.67 57.02 58.22 57.71 278.33 56.86 57.78 57.44 279.06 58.00 58.11 57.73 279.98 58.08 58.12 57.87 280.29 58.53 58.55 58.29 282.02 59.07 59.09 58.60 282.68 Not seasonally adjusted 6 Total reserves3 7 8 9 10 Nonborrowed reserves Nonborrowed reserves plus extended credit4 Required reserves Monetary base 49.59 59.46 60.06 62.21 58.94 60.01 57.72 58.41 58.95 58.30 58.91 59.14 48.27 48.77 48.53 222.73 58.64 58.94 58.09 245.25 59.28 59.76 59.03 262.08 60.50 61.74 61.17 279.71 57.13 58.46 57.98 275.62 57.72 59.43 59.23 278.11 56.00 57.20 56.69 277.49 56.92 57.84 57.51 280.18 58.26 58.37 57.99 282.07 57.62 57.66 57.41 281.09 58.21 58.24 57.97 280.69 58.58 58.61 58.12 281.35 48.14 59.56 62.12 63.74 60.21 61.29 58.91 59.59 60.25 59.56 60.13 60.40 46.82 47.32 47.08 223.53 58.73 59.04 58.19 247.71 61.35 61.83 61.09 266.16 62.02 63.27 62.70 283.18 58.40 59.73 59.25 278.94 59.00 60.71 60.51 281.52 57.19 58.39 57.88 280.54 58.10 59.01 58.68 283.27 59.56 59.67 59.29 285.36 58.88 58.93 58.67 284.23 59.43 59.45 59.19 283.76 59.84 59.86 59.38 284.47 NOT ADJUSTED FOR , CHANGES IN RESERVE REQUIREMENTS" 11 Total reserves3 12 13 14 15 Nonborrowed reserves Nonborrowed reserves plus extended credit4 Required reserves Monetary base 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 helpdepository institutions deal with sustained liquidity pressures. Because there isnot 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 for float at 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 1.21 A13 MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES 1 Billions of dollars, averages of daily figures 1989 2 1985 Dec. 1986 Dec. 1987 Dec. 1988 Dec. July r Aug/ Sept/ Oct. Seasonally adjusted 1 2 3 4 5 Ml M2 M3 L Debt 6 7 8 9 Ml components Currency 3 Travelers checks Demand deposits Other checkable deposits 620.5 2,567.4 3,201.7 3,828.5 6,741.5 725.9 2,811.2 3,494.9 4,135.1 7,597.0 752.3 2,909.9 3,677.6 4,336.7 8,316.1 790.3 3,069.6r 3,915.4 4,672.2 9,081.1 777.1 3,117.4 4,002.4 4,793.3 9,482.3 777.4 3,136.5 4,009.0 4,812.8 9,557.1 781.1 3,156.0 4,012.3 4,824.3 9,623.6 787.6 3,176.4 4,027.3 n.a. n.a. 167.8 5.9 267.3 179.5 180.5 6.5 303.2 235.8 196.4 7.1 288.3 260.4 211.8 7.6 288.6 282.3 218.0 7.1 278.8 273.2 218.4 7.2 277.5 274.4 219.3 7.2 277.3 277.3 219.7 7.3 280.4 280.2 1,946.9 634.3 2,085.3 683.7 2,157.6 767.7 2,279.3 845.8' 2,340.3 885.0 2,359.1 872.4 2,374.9 856.3 2,388.7 850.9 10 11 Nontransactions components In M2 . In M3 only8 12 13 Savings deposits 9 Commercial Banks Thrift institutions 125.0 176.6 155.8 215.2 178.5 237.8 192.5 238.8 181.9 219.6 183.0 219.3 184.2 220.0 185.1 220.6 14 15 Small-denomination time deposits 10 Commercial Banks Thrift institutions 383.3 499.2 364.6 489.3 385.3 528.8 443.1 582.2 504.9 621.3 508.1 624.0 510.1 622.5 515.6 616.3 16 17 Money market mutual funds General purpose and broker-dealer Institution-only 176.5 64.5 208.0 84.4 221.1 89.6 239.4 87.6 274.6 98.2 285.5 100.6 294.8 99.1 301.5 98.7 18 19 Large-denomination time deposits 11 Commercial Banks 12 Thrift institutions 285.1 151.5 288.8 150.1 325.4 162.0 364.9 172.9 397.7 175.4 397.0 172.1 395.8 167.9 397.9 163.1 20 21 Debt components Federal debt Nonfederal debt 1,585.8 5,155.7 1,805.8 5,791.2 1,957.4 6,358.6 2,113.5 6,967.6 2,184.5 7,297.8 2,204.6 7,352.5 2,228.1 7,395.5 n.a. n.a. Not seasonally adjusted 633.5 2,576.2 3,213.3 3,841.5 6,730.9 740.4 2,821.1 3,507.4 4,150.0 7,580.7 766.4 2,918.7 3,688.6 4,350.9 8,297.6 804.4 3,077.3r 3,925.2 4,685.6 9,066.4 781.7 3,125.2 4,004.1 4,784.2 9,438.8 777.5 3,137.5 4,010.6 4,807.5 9,508.9 778.4 3,149.4 4,010.4 4,819.1 9,581.6 784.3 3,172.3 4,024.7 n.a. n.a. 170.2 5.5 276.9 180.9 183.0 6.0 314.0 237.4 199.3 6.5 298.6 262.0 214.9 6.9 298.8 283.7 219.7 8.1 281.5 272.4 219.3 8.1 276.7 273.3 218.6 7.7 275.9 276.2 219.0 7.3 280.3 277.7 1,942.7 637.1 2,080.7 686.3 2,152.3 769.9 2,272.9 848.0 2,343.5 878.9 2,360.1 873.1 2,371.0 861.0 2,388.0 852.4 Money market deposit accounts Commercial Banks Thrift institutions 332.8 180.7 379.6 192.9 358.8 167.5 352.5 150.3 330.8 129.0 335.7 129.7 338.9 130.2 342.0 131.0 35 36 Savings deposits 9 Commercial Banks Thrift institutions 123.7 174.8 154.2 212.7 176.6 234.8 190.3 235.6 184.3 223.3 184.0 221.1 184.0 220.8 185.5 221.8 37 38 Small-denomination time deposits 10 Commercial Banks Thrift institutions 384.0 499.9 365.3 489.8 386.1 529.1 444.1 582.4 504.3 619.8 507.6 621.5 510.5 619.7 516.0 616.8 39 40 Money market mutual funds General purpose and broker-dealer Institution-only 176.5 64.5 208.0 84.4 221.1 89.6 239.4 87.6 274.6 98.2 285.5 100.6 294.8 99.1 301.5 98.7 41 42 Large-denomination time deposits" Commercial Banks 12 Thrift institutions 285.4 151.8 289.1 150.7 325.8 163.0 365.6 174.1 394.9 173.3 397.7 171.3 397.9 168.3 399.6 164.9 43 44 Debt components Federal debt Nonfederal debt 1,583.7 5,147.1 1,803.9 5,776.8 1,955.6 6,342.0 2,111.8 6,954.6 2,164.2 7,274.6 2,183.6 7,325.3 2,208.3 7,373.3 22 23 24 25 26 Ml M2 M3 L Debt 27 28 29 30 Ml components Currency 3 Travelers checks Demand deposits Other checkable deposits 31 32 Nontransactions components M2 . M3 only8 33 34 For notes see following page. n.a. n.a. A10 Domestic Financial Statistics • January 1990 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) 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 1.22 A15 B A N K DEBITS A N D DEPOSIT T U R N O V E R 1 Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1987 Bank group, or type of customer 1988 Apr. 3 Demand deposits All insured banks Major New York City banks Other banks 4 ATS-NOW accounts 5 Savings deposits5 July Aug. Seasonally adjusted DEBITS TO 1 2 May 188,346.0 91,397.3 96,948.8 2,182.5 403.5 217,116.2 104,496.3 112,619.8 2,402.7 526.5 226,888.4 107,547.3 119,341.2 2,757.7 583.0 249,088.3 111,387.4 137,700.9 3,264.9 675.2 245,230.1 107,808.9 137,421.3 2,986.4 585.5 266,468.1 120,984.1 145,483.9 3,406.5 647.2 284,129.2 129,166.6 154,962.7 3,696.5 640.0 276,453.7 114,991.8 161,461.9 3,596.3 580.4 292,446.5 121,378.1 171,068.3 3,943.1 650.0 556.5 2,498.2 321.2 15.6 3.0 612.1 2,670.6 357.0 13.8 3.1 641.2 2,903.5 376.8 14.7 3.1 721.0 3,393.0 440.4 17.1 3.6 697.5 3,092.2 433.9 15.7 3.2 767.1 3,342.1 467.5 18.2 3.6 824.0 3,588.5 501.8 19.8 3.6 788.4 3,222.3 512.6 19.1 3.2 841.8 3,402.4 548.8 20.6 3.6 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 7 Major New York City banks 8 Other banks 9 ATS-NOW accounts 10 Savings deposits5 Not seasonally adjusted DEBITS TO Demand deposits 3 11 All insured banks 12 Major New York City banks 13 Other banks 14 A T S - N O W accounts 4 15 M M D A 16 Savings deposits 188,506.7 91,500.1 97,006.7 2,184.6 1,609.4 404.1 217.125.1 104,518.8 264,581.6 2,404.8 1,954.2 526.8 227,010.7 107,565.0 119,445.7 2,754.7 2,430.1 578.0 556.7 2,499.1 321.2 15.6 4.5 3.0 612.3 2,674.9 356.9 13.8 5.3 3.1 641.7 2,901.4 377.1 14.7 6.9 3.1 782.3 3,603.3 473.6 16.9 7.8 3.5 112.606.2 120,202.2 144,379.4 3.228.6 2.636.7 649.6 238.265.6 105.461.7 132,803.9 3,205.2 2,700.2 649.6 274,861.8 121,507.2 153,354.6 3,325.2 2,910.5 637.9 295,522.8 134,020.7 161,502.1 3,770.8 3,136.0 641.4 268.243.0 117.276.1 150,966.9 3,549.0 2,686.7 610.4 304,407.5 132,158.8 172,248.7 3.762.6 3.068.7 656.7 676.6 3,017.6 418.7 16.3 805.9 3,482.5 500.9 8.1 9.0 3.5 855.6 3,795.0 520.9 20.3 9.7 3.6 761.3 3,247.5 477.4 18.9 8.2 3.4 891.5 3,911.6 559.9 20.0 9.2 3.6 DEPOSIT TURNOVER 17 18 19 20 21 22 Demand deposits 3 All insured banks Major New York City banks Other banks A T S - N O W accounts 4 MMDA6 . Savings deposits 1. Historical tables containing revised data for earlier periods may be obtained from the Monetary 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 3.5 18.0 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 N O W accounts, MMDA and special club accounts, such as Christmas and vacation clubs. 6. Money market deposit accounts. A10 Domestic Financial Statistics • January 1990 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1988 1989 Category Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Total loans and securities2 2 U.S. government securities 3 Other securities 4 Total loans and leases 2 5 Commercial and industrial . . . . . 6 Bankers acceptances held . . . 7 Other commercial and industrial 8 U.S. addressees 4 . 9 Non-U.S. addressees 10 Real estate 11 Individual 12 Security 13 Nonbank financial institutions 14 Agricultural li State and political subdivisions 16 Foreign banks 17 Foreign official institutions 18 Lease financing receivables 19 Ail other loans 2,410.2 2,417.2 2,422.8 2,451.9 2,464.9 2,470.9 2,486.3 2,496.8 2,518.1 2,534.4 2,544.1 2,575.5 358.8 195.9 1,855.6 601.8 4.3 361.4 194.0 1,861.9 601.9 4.1 360.4 189.6 1,872.9 606.6 4.4 361.8 190.4 1,899.7 619.0 4.2 368.8 189.7 1,906.5 617.8 4.0 370.7 187.2 1,913.1 620.6 4.1 373.5 186.4 1,926.5 626.3 4.2 373.8 185.7 1,937.3 624.9 4.2 374.4 184.6 1,959.1 632.1 4.1 376.6 182.8 1,974.9 637.3 4.5 378.8 182.9 1,982.4 636.9 4.8 391.7 182.7 2,001.1 641.1 5.4 597.4 591.3 6.1 665.3 353.0 38.2 597.8 591.8 5.9 672.0 355.5 38.5 602.2 596.6 5.7 678.9 357.9 37.7 614.8 609.9 4.9 685.6 358.9 44.7 613.7 608.3 5.4 691.8 360.6 43.6 616.6 611.7 4.8 699.5 362.9 40.0 622.1 616.6 5.4 705.5 365.4 38.1 620.7 615.2 5.5 712.0 366.0 41.3 628.1 622.2 5.9 719.9 367.0 40.5 632.8' 627.1 5.7 729.0 369.3 39.9 632.1 626.6' 5.5 734.4 372.1 40.6 635.7 629.4 6.2 741.1 374.4 42.3 30.2 30.3 30.0 30.7 30.3 30.7 30.6 30.7 29.7 30.7 29.2 30.4 28.7' 30.3 30.3' 30.3 31.4' 30.4 31.8' 30.3 32.1 30.2 33.3 30.1 47.7 8.1 4.9 29.1 47.0 46.8 7.6 4.9 29.2 44.8 44.4 7.8 4.8 29.4 44.4 44.5 8.5 4.8 29.6 42.7 44.6 8.2 4.8 29.6 45.2 44.6 8.3 4.9 29.8 42.9 44.7 9.4 4.9 30.0 43.3' 44.5 9.3 4.7 29.9 44.1' 44.2 8.9 4.5 30.3 49.9" 43.9 9.3 4.3 30.3 49.5' 43.5 8.5 4.3 31.0 48.6r 42.9 9.8 4.0 31.6 50.5 Not seasonally adjusted 20 Total loans and securities2 2,409.2 2,429.6 2,430.7 2,453.6 2,462.8 2,473.9 2,487.4 2,500.9 2,511.8 2,526.9 2,541.2 2,565.5 21 U.S. government securities 22 Other securities 2 4 Total loans and leases 2 24 Commercial and industrial . . . . . 25 Bankers acceptances held . . . 26 Other commercial and industrial 27 U.S. addressees'1 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 3/ Lease financing receivables . . . . 38 All other loans 357.5 196.0 1,855.7 599.3 4.3 361.6 193.7 1,874.2 605.0 4.1 362.2 191.7 1,876.9 605.8 4.1 366.3 190.1 1,897.2 618.3 4.1 370.2 188.9 1,903.7 621.1 4.0 370.9 187.2 1,915.9 625.2 4.0 372.6 186.8 1,928.0 630.0 4.3 372.6 186.0 1,942.3 629.0 4.4 373.1 184.1 1,954.6 631.0 4.2 376.8 183.1 1,966.9 632.7 4.6 378.5 182.8 1,980.0 632.2 4.9' 388.3 181.6 1,995.6 636.0 5.5 595.0 588.9 6.1 667.2 354.1 37.6 600.9 594.8 6.1 673.3 359.4 38.9 601.7 596.4 5.3 678.9 360.7 38.2 614.2 608.9 5.3 683.6 358.2 43.8 617.1 611.8 5.3 689.2 357.7 44.1 621.3 616.0 5.3 697.4 360.3 42.0 625.8 620.2 5.5 704.1 363.2 38.9 624.6 619.0 5.6 712.1 364.5 42.9 626.8 621.1 5.6 720.6 365.9 40.2 628.0 622.6 5.5 730.4 369.3 38.6 627.3 621.8 5.5 736.5 374.0 39.1 630.5 625.0 5.5 741.9 375.6 40.5 30.3 30.5 31.1 30.5 30.7 30.1 30.0 29.8 29.1 29.6 29.0 29.6 28.9' 30.1 30.5' 30.7 31.4r 31.1 31.7r 31.2 32.0' 31.1 32.9 31.0 47.1 8.2 4.9 28.9 47.5 46.6 7.9 4.9 29.4 47.3 45.8 8.1 4.8 29.7 44.0 45.5 8.5 4.8 29.7 45.0 45.1 8.0 4.8 29.7 45.4 44.9 8.0 4.9 29.8 44.7 44.6 9.0 4.9 30.0 44.4' 44.1 9.1 4.7 30.0 44.8' 43.6 9.0 4.5 30.2 47.2' 43.4 9.1 4.3 30.2 46.1' 42.9 8.7 4.3 30.9 48.1 42.5 9.8 4.0 31.4 50.0 1. Data have been revised because of benchmarking beginning January 1984. 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 1989 1988 Source Seasonally adjusted 1 Total nondeposit funds 2 Net balances due to related foreign offices . . . . 3 Borrowings from other than commercial banks in United States 4 4 Domestically chartered banks 5 Foreign-related banks Not seasonally adjusted Total nondeposit funds 2 7 Net balances due to related foreign offices — 8 Domestically chartered banks 9 Foreign-related banks 10 Borrowings from other than commercial banks in United States 4 11 Domestically chartered banks 12 Federal funds and security RP borrowings5 N Other 14 Foreign-related banks Nov. Dec. Jan. Feb. Mar. Apr. May' June' July' Aug. Sept.' Oct. 217.8 9.3 215.2 6.8 208.2' 8.2' 211.3' 10.7' 212.1' 8.2' 205.9' 3.0' 209.9 -.1 227.1 7.9 228.3 11.1 229.8' 9.3 238.0 9.7 248.4 9.9 208.5' 169.1 39.3 208.4 169.4 39.0 200.0 163.0 37.0 200.6 161.3 39.3 203.9 165.8 38.1 202.9 164.2 38.7 210.0 169.2 40.7 219.2 179.1 40.1 217.2 175.4 41.8 220.5 178.2 42.3 228.3 184.9 43.4 238.5 192.0 46.4 214.5 10.4 -19.1 29.4' 209.6 9.2' -20.6 29.9 207.4' 7.9' -20.2 28.1' 216.1' 10.5' -17.6 28.1' 217.7' 7.2' -19.5 26.7' 208.6' -22.8' 23.7' 217.5 2.5 -21.9 24.5 230.2 8.1 -18.3 26.4 224.0 8.1 -16.4 24.6 228.6' 8.9' -15.5' 24.4 233.9 10.7 -14.2 24.9 241.5 9.7 -14.8 24.4 204.2' 167.8 200.3 163.3 199.5 161.3 205.7' 165.1 210.6' 170.9 207.7 168.1 215.0 173.8 222.2 180.5 215.9 173.5 219.7 177.7 223.3 180.7 231.9 187.2 163.2 4.6 36.4R 159.8 3.5 37.0 157.9 3.4 38.1' 161.9 3.2 40.6' 167.5' 3.5 39.6 163.8 4.3 39.6' 170.1 3.7 41.2 177.0 3.4 41.7 170.8 2.7 42.4 175.1 2.6 42.0 178.1 2.6 42.6 184.8 2.4 44.7 424.5 425.6 429.2 429.8 434.9 434.5 440.3 440.2 446.7 448.2 452.7 450.6 456.8 455.5 458.8 457.3 461.6 458.8 460.4' 461.2' 458.0 460.1 459.4 461.1 23.0 16.3 24.9 22.9 20.3 25.0 20.3 25.9 20.3 18.1 20.9 20.2 27.1 34.3 27.4 26.2 22.7 23.0 22.9 15.8 23.8 24.9 19.9 20.7 MEMO Gross large time deposits Seasonally adjusted 16 Not seasonally adjusted U.S. Treasury demand balances at commercial banks 8 17 Seasonally adjusted 18 Not seasonally adjusted IS 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 federal funds, RPs, and other borrowing from nonbanks and net balances due to related foreign offices. 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and U.S. branches and agencies of foreign banks with related foreign offices plus net positions with own IBFs. 4. Other borrowings are borrowings through 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, loan RPs, and sales of participations in pooled loans. 5. Based on daily average data reported weekly by approximately 120 large banks and quarterly or annual data reported by other banks. 6. Figures are partly daily averages and partly averages of Wednesday data. 7. Time deposits in denominations of $100,000 or more. Estimated averages of daily data. 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data. A10 Domestic Financial Statistics • January 1990 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 B i l l i o n s o f dollars 1988 1989 Account Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 2,601.6 533.5 345.3 188.2 19.2 2,048.9 165.7 1,883.2 608.8 676.3 361.4 236.6 2,587.0 533.5 347.3 186.2 21.5 2,032.1 159.9 1,872.2 604.6 679.7 360.8 227.0 2,624.0 535.8 351.3 184.5 20.1 2,068.0 173.2 1,894.9 617.6 684.1 358.3 234.8 2,627.1 539.1 355.5 183.6 21.8 2,066.2 154.9 1,911.3 622.9 692.6 358.1 237.7 2,623.0 538.3 356.6 181.7 17.8 2,066.8 150.7 1,916.2 627.3 699.4 361.8 227.7 2,659.8 541.1 359.1 182.0 19.2 2,099.5 160.5 1,939.0 631.1 706.7 363.8 237.4 2,660.7 541.6 362.2 179.4 18.2 2,100.9 155.0 1,945.9 628.3 715.1 366.0 236.6 2,677.1 538.3 360.3 178.1 19.8 2,119.0 162.4 1,956.6 635.3 722.8 366.2 232.3 2,692.5 542.8 365.3 177.5 18.7 2,131.0 162.9 1,968.1 631.9 733.9 371.4 231.0 2,695.7 542.4 366.4 176.1 18.3 2,135.0 158.0 1,977.1 630.3 737.5 375.5 233.7 2,728.1 545.4 370.8 174.6 26.6 2,156.1 164.2 1,992.0 634.9 743.2 376.1 237.8 246.3 34.5 30.3 92.3 216.1 31.5 27.5 76.4 227.4 27.7 26.6 89.1 211.5 30.9 26.8 75.9 215.8 33.4 26.9 78.8 248.3 27.8 27.9 107.6 214.2 27.9 27.6 78.7 211.7 30.6 27.4 75.2 212.0 28.7 28.5 77.4 219.6 31.7 28.0 82.6 213.0 28.0 27.9 77.5 34.4 54.8 28.7 52.0 33.3 50.7 28.8 49.0 28.5 48.3 34.9 50.2 29.6 50.5 28.8 49.7 29.7 47.7 29.0 48.3 28.8 50.7 ALL COMMERCIAL BANKING INSTITUTIONS* 1 Loans and securities 2 Investment securities 3 U.S. government securities 4 Other 5 Trading account assets 6 Total loans 7 Interbank loans 8 Loans excluding interbank 9 Commercial and industrial 10 Real estate 11 Individual 12 All other 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 200.0 194.6 191.4 194.1 200.7 206.8 198.7 201.1 199.6 203.9 203.8 20 Total assets/total liabilities and c a p i t a l . . . . 3,047.9 2,997.8 3,042.8 3,032.7 3,039.5 3,114.9 3,073.6 3,090.0 3,104.0 3,119.3 3,144.9 21 22 23 24 25 26 27 2,145.7 642.7 535.6 967.5 473.1 233.7 195.3 2,097.1 586.6 528.8 981.7 493.6 209.1 198.0 2,125.2 602.6 527.3 995.3 502.9 216.5 198.2 2,123.7 583.2 523.2 1,017.3 483.6 223.9 201.4 2,134.2 594.5 512.0 1,027.6 486.7 217.4 201.2 2,182.6 628.5 509.7 1,044.3 510.6 218.6 203.2 2,138.2 580.5 507.4 1,050.2 512.7 218.4 204.4 2,152.0 579.4 514.0 1,058.6 510.2 223.1 204.7 2,166.6 583.4 518.9 1,064.4 504.6 226.3 206.5 2,175.3 588.5 520.7 1,066.1 516.5 221.4 206.1 2,194.2 588.0 527.6 1,078.6 526.5 222.4 201.9 359.4 364.4 366.2 372.1 369.5 372.3 374.4 373.5 377.5 378.5 390.4 193.4 190.5 189.7 188.8 186.6 188.0 185.4 184.6 184.0 182.3 181.6 2,391.9 507.2 333.2 174.0 19.2 1,865.4 133.1 1,732.3 500.6 654.3 361.1 216.3 2,385.1 507.0 334.5 172.6 21.5 1,856.6 131.4 1,725.2 498.9 657.7 360.5 208.1 2,405.9 509.0 338.1 171.0 20.1 1,876.8 138.9 1,737.8 503.4 661.7 358.0 214.7 2,407.8 513.1 342.7 170.4 21.8 1,872.8 122.3 1,750.5 506.1 669.8 357.7 216.9 2,407.8 513.8 344.1 169.7 17.8 1,876.2 120.2 1,756.0 511.3 676.0 361.4 207.3 2,446.0 516.1 345.9 170.2 19.2 1,910.6 131.5 1,779.2 515.5 683.2 363.5 217.0 2,439.9 517.3 349.5 167.8 18.2 1,904.5 119.3 1,785.1 511.6 691.6 365.6 216.3 2,452.1 514.2 347.8 166.5 19.8 1,918.1 126.4 1,791.7 515.6 698.2 365.8 212.0 2,467.6 519.4 353.5 165.9 18.7 1,929.4 127.0 1,802.5 512.8 708.7 371.1 209.9 2,473.6 519.0 354.5 164.5 18.3 1,936.3 125.1 1,811.2 510.4 712.2 375.2 213.5 2,506.5 521.6 358.7 162.9 26.6 1,958.3 134.9 1,823.5 514.2 717.1 375.8 216.4 223.1 33.1 30.3 91.4 193.5 30.1 27.4 75.6 206.4 26.6 26.6 88.1 191.4 29.5 26.8 75.1 195.3 30.7 26.8 77.9 227.0 26.7 27.9 106.6 192.3 26.6 27.6 77.7 190.1 29.6 27.4 74.4 191.7 27.0 28.5 76.5 197.6 29.5 28.0 81.3 191.5 26.3 27.9 76.3 32.4 35.9 26.8 33.6 31.2 33.9 26.6 33.4 26.8 33.1 32.9 33.0 27.5 32.9 27.0 31.7 28.0 31.7 27.3 31.6 26.9 34.2 Deposits Transaction deposits Savings deposits Time deposits Borrowings Other liabilities Residual (assets less liabilities) MEMO 28 U.S. government securities (including trading account) 29 Other securities (including trading account) DOMESTICALLY CHARTERED COMMERCIAL BANKS 3 30 Loans and securities 31 Investment securities 32 U.S. government securities 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 All other 42 Total cash assets 43 Reserves with Federal Reserve Banks. 44 Cash in vault 45 Cash items in process of collection . . . 46 Demand balances at U.S. depository institutions 47 Other cash assets 48 Other assets 135.6 128.1 129.6 130.6 134.6 133.6 131.6 128.4 127.5 131.5 126.3 49 Total assets/liabilities and capital 2,750.5 2,706.7 2,741.8 2,729.9 2,737.7 2,806.6 2,763.9 2,770.6 2,786.7 2,802.8 2,824.3 50 51 52 53 54 55 56 2,073.0 632.9 533.1 907.0 363.7 122.0 191.8 2,026.1 577.4 526.4 922.3 377.1 109.0 194.5 2,052.7 593.5 524.8 934.4 378.7 115.8 194.6 2,047.4 574.1 520.7 952.6 362.8 121.7 197.9 2,056.2 584.8 509.4 961.9 368.2 115.6 197.7 2,103.0 618.7 507.1 977.2 383.0 120.9 199.7 2,058.8 571.2 504.8 982.9 387.3 116.9 200.8 2,071.3 570.2 511.3 989.9 380.2 117.8 201.2 2,086.9 574.7 516.2 995.9 375.5 121.3 203.0 2,094.5 578.8 517.9 997.7 390.8 114.9 202.6 2,112.4 578.4 525.0 1,009.0 393.2 120.4 198.4 40.1 614.2 40.7 617.0 41.7 620.0 42.5 627.3 43.4 632.6 44.3 638.9 45.3 646.2 45.7 652.5 46.4 662.3 47.1 665.0 47.9 669.2 Deposits Transaction deposits Savings deposits Time deposits Borrowings Other liabilities Residual (assets less liabilities) MEMO 57 Real estate loans, revolving 58 Real estate loans, other 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. 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 N e w York State foreign investment corporations. 3. Insured domestically chartered commercial banks include all member banks and insured nonmember banks. Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS 1 Millions of dollars, Wednesday figures 1989 Account Aug. 30 Sept. 6 Sept. 13' Sept. 20' Sept. 27' Oct. 4 Oct. 11 Oct. 18 Oct. 25 1 Cash and balances due from depository institutions 104,331 118,718 110,729 2 Total loans, leases, and securities, net l,221,208r 1,237,404' 1,222,533 3 U.S. Treasury and government agency 143,784 144,871 144,457 4 Trading account 12,200 13,474 13,260 5 Investment account 131,584 131,397 131,197 6 Mortgage-backed securities 63,919' 64,015' 64,850 All other maturing in 7 One year or less 20,453 20,299 19,944 8 Over one through five years 37,697' 37,293' 36,909 9,514' 9 Over five years 9,790' 9,494 10 Other securities 70,560 70,339 70,241 856 11 Trading account 792 836 12 Investment account 69,703 69,547 69,405 41,562 13 States and political subdivisions, by maturity 41,408 41,375 14 4,874 One year or less 4,873 4,876 15 Over one year 36,689 36,535 36,499 16 Other bonds, corporate stocks, and securities 28,140 28,139 28,030 17 Other trading account assets 5,676 6,065 6,022 63,375 71,050 18 Federal funds sold4 62,096 45,418 19 To commercial banks 51,473 41,175 12,447 20 To nonbank brokers and dealers in securities 12,517 14,234 21 To others 5,509 7,059 6,686 981,737' 22 Other loans and leases, gross 974,503' 975,544 956,355' 23 Other loans, gross 949,137' 950,131 24 316,521' 318,168' 314,894 Commercial and industrial 2,190' 2,111 25 Bankers acceptances and commercial paper 2,203' 315,978' 26 All other 314,318' 312,783 27 312,701' 314,348' 311,205 U.S. addressees 1,616' 1,630 28 Non-U.S. addressees 1,578 342,567' 29 Real estate loans 340,668' 340,847 25,527 25,608 30 Revolving, home equity 25,771 315,141' 316,959' 315,076 31 All other 171,425' 171,754' 172,587 32 To individuals for personal expenditures 47,540' 48,380' 33 To depository and financial institutions 47,683 34 Commercial banks in the United States 21,389' 21,540' 20,916 4,336 4,392 35 Banks in foreign countries 4,618 21,815 22,447' Nonbank depository and other financial institutions .. 22,148 36 16,284 17,520 17,159 37 For purchasing and carrying securities 5,873 5,850 5,834 To finance agricultural production 38 26,374 26,506 26,209 39 To states and political subdivisions 1,541' 1,592' 1,595 40 To foreign governments and official institutions 22,727' 24,199' 41 All other 23,323 25,366 25,383' 42 Lease financing receivables 25,413 4,893 4,857' 43 LESS: Unearned income 4,888 44 31,795 31,802 30,939 Loan and lease reserve 45 Other loans and leases, net 937,814' 945,079' 939,717 121,946' 127,430' 46 All other assets 129,005 1,447,486 1,483,552' 1,462,267 47 Total assets 214,943 236,234 48 Demand deposits 221,536 172,079 185,681 49 Individuals, partnerships, and corporations 179,643 5,182 5,905 5,198 50 States and political subdivisions 3,083 4,595 51 U.S. government 2,202 19,472 23,643 19,108 52 Depository institutions in the United States 6,113 6,078 53 Banks in foreign countries 6,552 54 Foreign governments and official institutions 677 940 537 55 Certified and officers' checks 8,336 9,392 8,296 73,456 77,796 75,996 56 Transaction balances other than demand deposits 689,928 689,604 686,806 57 Nontransaction balances 650,952' 647,404' 650,706 58 Individuals, partnerships, and corporations 30,065 30,631 30,189 59 States and political subdivisions 659 888 858 60 U.S. government 7,463' 7,370' 7,210 61 Depository institutions in the United States 648 652 641 62 Foreign governments, official institutions, and banks . . 282,519 287,884 287,252 63 Liabilities for borrowed money 0 55 64 Borrowings from Federal Reserve Banks 0 15,812 4,027 8,167 65 Treasury tax-and-loan notes 266,707 283,802 279,086 66 All other liabilities for borrowed money6 87,621 88,405' 84,795 67 Other liabilities and subordinated notes and debentures .. 1,345,344 1,380,246' 1,359,184 68 Totol liabilities 102,141 103,306 103,083 69 Residual (total assets minus total liabilities)7 117,428 1,235,219 144,907 12,784 132,122 64,813 111,758 1,223,190 144,135 12,103 132,031 65,831 120,336 1,232,964 148,304 14,086 134,218 65,950 124,614 1,231,316 150,548 14,966 135,582 66,171 119,016 1,242,015 155,831 17,855 137,975 67,887 105,871 1,241,756 157,966 19,574 138,392 68,834 20,081 37,132 10,097 70,035 856 69,179 41,274 4,861 36,412 27,905 5,487 69,415 48,554 13,795 7,066 981,208 955,568 316,948 2,089 314,858 312,964 1,894 341,942 25,915 316,027 173,113 47,033 20,530 4,415 22,088 18,871 5,775 26,166 1,665 24,055 25,640 4,899 30,933 945,376 123,458 1,476,105 223,412 174,592 6,142 6,097 20,449 6,217 859 9,056 73,890 687,077 648,694 29,714 880 7,136 652 302,954 370 24,889 277,695 86,306 1,373,639 102,466 18,723 36,883 10,594 69,797 914 68,883 41,220 4,818 36,402 27,662 5,296 63,032 43,952 12,668 6,412 977,492 951,858 314,655 2,134 312,521 310,747 1,774 342,801 26,053 316,748 173,315 46,999 20,620 4,811 21,568 16,698 5,720 26,222 1,657 23,790 25,634 4,902 31,660 940,930 127,471 1,462,420 222,460 175,709 6,415 3,113 19,490 7,049 973 9,711 72,787 687,094 648,638 29,859 872 7,064 661 293,146 0 25,038 268,108 85,049 1,360,536 101,883 20,354 35,934 11,979 69,311 891 68,420 41,061 4,925 36,136 27,359 5,422 69,303 48,990 13,750 6,563 982,852 957,081 317,694 2,217 315,476 313,858 1,618 343,311 26,110 317,201 173,381 48,937 21,099 5,125 22,713 16,773 5,710 26,070 1,575 23,630 25,772 4,876 37,353 940,624 130,288 1,483,589 232,522 182,556 5,634 5,347 21,168 7,295 716 9,808 77,407 691,322 653,071 29,689 865 7,040 656 299,152 3,040 11,838 284,274 86,169 1,386,572 97,016 20,540 36,415 12,455 69,057 745 68,311 41,007 4,918 36,089 27,304 6,661 61,968 40,306 14,839 6,823 985,930 959,900 318,932 2,116 316,815 315,086 1,730 343,750 26,229 317,520 172,992 50,898 22,323 5,589 22,986 16,171 5,670 25,916 1,558 24,014 26,030 4,874 37,975 943,081 130,159 1,486,090 238,528 190,516 5,419 1,795 23,961 6,778 843 9,215 76,476 692,206 653,821 29,859 938 6,943 643 298,712 70 11,530 287,112 82,906 1,388,828 97,262 20,238 36,338 13,512 68,806 778 68,028 40,867 4,906 35,960 27,161 5,889 66,272 43,350 16,273 6,650 988,236 962,097 318,431 2,242 316,189 314,396 1,792 345,510 26,349 319,160 173,156 50,825 23,098 5,150 22,577 16,682 5,670 25,825 1,518 24,480 26,139 4,902 38,116 945,217 131,404 1,492,435 233,296 183,417 5,917 4,326 23,235 7,058 786 8,556 75,992 699,509 661,460 29,737 928 6,762 622 301,263 30 10,228 291,006 84,423 1,394,483 97,952 19,751 36,212 13,595 68,368 913 67,455 40,192 4,892 35,299 27,263 6,082 65,760 44,373 14,886 6,502 986,678 960,602 318,084 2,251 315,833 314,247 1,586 345,521 26,408 319,113 173,568 50,095 22,363 5,297 22,434 16,948 5,585 26,061 1,441 23,299 26,076 4,905 38,194 943,578 128,840 1,476,467 216,476 173,175 5,977 2,262 19,716 6,429 746 8,171 74,792 700,130 661,596 29,988 932 6,989 626 300,180 0 14,321 285,859 87,028 1,378,606 97,861 1,201,968 981,539 218,143 17,118 1,634 1,312 322 254,516 1,195,180 975,952 217,552 16,434 1,670 1,329 340 255,211 1,205,103 982,066 218,333 16,607 1,556 1,204 353 258,009 1,211,536 985,270 217,843 17,539 1,323 982 341 258,652 1,218,587 988,060 218,983 17,371 1,517 1,176 341 259,762 1,218,119 985,702 220,418 17,768 1,622 1,271 351 259,460 MEMO 70 71 72 73 74 75 76 77 Total loans and leases (gross) and investments adjusted . 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 Loans sold outright to affiliates—total Commercial and industrial Other Nontransaction savings deposits (including MMDAs) 1,191,085^ 971,070' 219,564 16,697 1,702 1,374 328 253,369 1,201,049' 979,774' 219,066 16,305 1,674 1,346 328 257,098 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. For adjustment bank data see this table in the March 1989 Bulletin. The adjustment data for 1988 should be added to the reported data for 1988 to establish comparability with data reported for 1989. 3. Includes U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages. 4. Includes securities purchased under agreements to resell. 5. Includes allocated transfer risk reserve. 1,196,268 975,547 218,837 16,991 1,598 1,270 327 256,700 6. Includes federal funds purchased and securities sold under agreements to repurchase; for information on these liabilities at banks with assets of $1 billionor more on Dec. 31, 1977, see table 1.13. 7. This is not a measure of equity capital for use in capital-adequacy analysis or for other analytic uses. 8. Exclusive of loans and federal funds transactions with domestic commercial banks. 9. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. A10 Domestic Financial Statistics • January 1990 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1989 Account Aug. 30 1 Cash balances due from depository institutions 2 Total loans, leases, and securities, net2 Securities 3 U.S. Treasury and government agency3 4 Trading account 3 5 Investment account 6 Mortgage-backed securities4 All other maturing in 7 One year or less 8 Over one through five years 9 Over five years 10 Other securities 3 11 Trading account 12 Investment account 13 States and political subdivisions, by maturity 14 One year or less 15 Over one year Other bonds, corporate stocks, and securities 16 17 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 43 44 45 46 Loans and leases Federal funds sold5 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 Mother 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 Mother Lease financing receivables LESS: Unearned income Loan and lease reserye Other loans and leases, net M 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 M other liabilities for borrowed money Other liabilities and subordinated notes and debentures 68 Total liabUities 69 Residual (total assets minus total liabilities)9 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 20,658 24,680 21,990 28,005 26,341 30,552 26,926 27,270 24,144 213,405 219,579 212,867 221,294 211,911 213,517 211,371 213,066 210,064 0 0 15,670 8,208r 0 0 15,552 8,297r 0 0 15,584 8,324' 0 0 15,294 7,646' 0 0 14,753 7,639' 0 0 14,900 7,662 0 0 15,117 7,766 0 0 15,527 8,132 0 0 15,793 8,420 2,865 3,246 1,351'" 0 0 17,014 10,084 1,130 8,954 6,930 0 2,670 3,235 l,35(y 0 0 16,977 10,005 1,145 8,860 6,971 0 2,673 3,236 1,350'' 0 0 16,909 9,952 1,156 8,795 6,957 0 3,025 3,272 1,351' 0 0 16,814 9,834 1,125 8,709 6,980 0 2,498 3,265 1,35c 0 0 16,796 9,782 1,075 8,707 7,014 0 2,628 3,260 1,350 0 0 16,771 9,761 1,090 8,671 7,010 0 2,722 3,244 1,384 0 0 16,791 9,809 1,092 8,717 6,982 0 2,685 3,299 1,411 0 0 16,592 9,729 1,081 8,648 6,863 0 2,712 3,252 1,409 0 0 16,080 9,101 1,067 8,034 6,978 0 18,644 11,004 4,573 3,067 175,931 170,304 58,351 555 57,7% 57,280 516 57,306 3,655 53,651 19,883 17,583 7,520 2,814 7,250 6,239 144 5,919 456 4,421 5,627 1,749 12,106 162,076 49,638 21,178 12,746 4,682 3,750 179,498 173,882 59,801 530 59,271 58,787 484 58,180 3,667 54,513 19,775 17,972 7,906 2,785 7,281 7,049 144 5,938 413 4,609 5,616 1,735 11,891 165,872 54,152r 15,972 7,403 4,945 3,624 178,111 172,468 58,619 525 58,094 57,615 480 58,766 3,682 55,084 19,848 17,828 7,463 3,126 7,239 6,409 134 5,928 427 4,509 5,643 1,759 11,949 164,403 52,153' 21,380 13,377 4,092 3,912 181,507 175,826 59,278 461 58,817 58,079 738 59,052 3,699 55,353 20,017 18,375 8,156 2,788 7,431 7,468 136 5,926 530 5,043 5,681 1,768 11,934 167,805 46,759' 15,675 8,544 3,988 3,142 179,244 173,575 58,343 544 57,799 57,161 638 59,130 3,717 55,413 20,086 18,333 7,958 3,248 7,127 6,186 134 5,938 523 4,903 5,669 1,770 12,786 164,688 49,354' 20,567 12,776 3,926 3,865 180,904 175,246 58,977 562 58,416 57,844 572 59,259 3,729 55,530 19,947 19,485 8,541 3,524 7,419 6,257 159 5,942 481 4,738 5,658 1,749 17,876 161,279 52,525 16,055 7,447 4,548 4,059 183,532 177,880 60,%3 499 60,464 59,776 688 59,363 3,765 55,598 19,955 20,132 8,628 4,002 7,501 5,874 153 5,7% 468 5,176 5,651 1,753 18,370 163,408 53,628 17,797 7,910 6,236 3,651 183,281 177,546 60,592 529 60,063 59,339 724 59,658 3,776 55,881 20,028 19,472 8,489 3,673 7,311 6,660 145 5,776 427 4,788 5,735 1,762 18,368 163,150 56,913 15,519 6,700 5,295 3,524 182,810 177,085 60,476 600 59,876 59,269 607 59,520 3,788 55,731 20,006 19,247 7,983 3,862 7,402 6,923 134 6,010 330 4,440 5,726 1,758 18,381 162,672 56,399 283,701 298,411r 287,010' 296,058' 287,606' 296,595 291,924 297,249 290,607 47,605 32,976 423 594 5,281 4,944 472 2,915 51,504 35,787 757 885 4,812 4,723 794 3,746 48,315 34,536 618 200 4,379 5,264 379 2,940 51,800 35,283 643 1,018 5,465 4,852 620 3,919 53,430 36,2% 836 572 4,764 5,735 801 4,427 53,632 36,592 747 1,085 4,594 6,000 571 4,044 55,395 39,689 728 255 4,844 5,520 682 3,675 54,149 37,565 587 776 5,928 5,588 609 3,0% 49,626 34,971 536 351 5,209 5,082 601 2,874 8,095 113,216 102,889 7,775 33 2,264 254 58,444 0 3,876 54,568 27,726 8,375 113,437 103,428 7,478 29 2,246 256 65,984 0 868 65,116 30,377' 8,399 113,350 103,386 7,400 28 2,268 266 62,276' 0 1,810 60,467' 25,492' 8,140 112,839 102,982 7,318 29 2,239 271 64,063 0 6,020 58,043 30,356' 7,998 112,107 102,187 7,389 29 2,223 279 59,378 0 5,932 53,445 27,000' 8,422 113,952 103,989 7,422 29 2,228 284 67,632 3,010 2,484 62,138 29,552 8,367 112,870 102,880 7,472 29 2,214 273 65,559 0 2,338 63,221 26,384 8,219 113,540 103,703 7,494 29 2,047 266 70,695 0 1,856 68,839 26,472 8,077 113,590 103,538 7,647 29 2,103 273 66,232 0 2,939 63,292 28,891 255,085 269,678' 257,833' 267,199' 259,913' 273,190 268,574 273,076 266,415 28,616 28,733 29,177 28,859 27,693 23,405 23,350 24,174 24,192 208,736 176,051 42,365 2,788 212,553 180,024 42,754 2,552 211,709 179,217 42,508 2,590 213,463 181,355 42,423 2,880 209,966 178,417 41,649 2,498 211,825 180,154 42,655 2,456 215,419 183,511 41,931 3,005 216,798 184,678 42,246 2,937 215,520 183,646 42,378 2,987 MEMO 70 71 72 73 Total loans and leases (gross) and investments adjusted 2,10 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. FRASER 6. Includes allocated transfer risk reserve. Digitized for 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 1989 Account Aug. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Cash and due from depository institutions . . . Total loans and securities U.S. Treasury and government agency securities Other securities. Federal funds sold To commercial banks in the United States. To others Other loans, gross Commercial and industrial Bankers acceptances and commercial paper All other U.S. addressees Non-U.S. addressees Loans secured by real estate To financial institutions Commercial banks in the United States.. Banks in foreign countries Nonbank financial institutions To foreign governments and official institutions For purchasing and carrying securities All other 3 Other assets (claims on nonrelated parties) . . Net due from related institutions Total assets Deposits or credit balances due to other than directly related institutions Transaction accounts and credit balances . Individuals, partnerships, and corporations Other , Nontransaction accounts Individuals, partnerships, and corporations Other Borrowings from other than directly related institutions Federal funds purchased 6 From commercial banks in the United States From others Other liabilities for borrowed money To commercial banks in the United States To others Other liabilities to nonrelated parties Net due to related institutions Total liabilities 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 11,345 138,376 12,271 138,202 11,342 138,782 13,100 136,509 12,184 136,163 12,441 135,944 11,639 134,974 12,739 138,708 11,626 135,632 7,911 5,899 7,769 6,630 1,139 116,797 73,193 8,194 5,882 7,377 6,149 1,228 116,749 74,065 7,896 5,859 8,155 6,696 1,459 116,872 73,838 7,967 5,908 6,269 5,112 1,157 116,365 73,302 8,000 5,985 5,923 4,820 1,103 116,255 73,563 7,829 5,931 6,479 5,062 1,417 115,705 73,851 7,482 5,941 5,908 4,484 1,424 115,643 73,164 8,162 5,930 7,348 5,730 1,618 117,268 74,324 8,146 6,090 4,459 2,966 1,493 116,937 73,804 1,781 71,412 69,590 1,822 16,552 22,889 17,090 1,657 4,142 2,065 72,000 70,160 1,840 16,408 21,666 16,297 1,380 3,989 1,887 71,951 70,088 1,863 16,282 22,431 17,040 1,249 4,142 1,852 71,450 69,616 1,834 16,422 22,134 16,980 1,035 4,119 2,119 71,444 69,659 1,785 16,452 22,295 16,998 1,064 4,233 2,277 71,574 69,791 1,783 16,231 21,271 16,159 1,195 3,917 2,492 70,672 68,897 1,775 16,309 21,912 16,490 1,370 4,052 2,393 71,931 70,027 1,904 16,289 22,229 16,480 1,635 4,114 2,387 71,417 69,563 1,854 16,981 22,198 16,530 1,482 4,186 629 1,775 1,759 35,828 13,046 198,597 636 2,292 1,682 35,258 15,760 201,492 628 1,996 1,697 35,999 13,855 199,979 647 2,216 1,644 35,242 14,783 199,633 630 1,626 1,689 35,721 13,700 197,768 633 1,810 1,909 35,996 16,102 200,482 530 1,909 1,819 36,857 16,954 200,426 485 2,111 1,830 36,552 14,062 202,062 483 1,629 1,842 36,633 17,133 201,023 49,768 3,223 50,133 3,300 50,212 3,513 49,661 3,567 50,483 3,915 50,305 3,8% 49,710 3,393 50,613 3,557 50,896 3,860 2,020 1,203 46,545 2,146 1,154 46,833 2,135 1,378 46,699 2,106 1,461 46,094 2,181 1,734 46,568 2,188 1,708 46,409 2,298 1,095 46,317 2,275 1,282 47,056 2,268 1,592 47,036 38,595 7,950 38,365 8,468 38,331 8,368 38,118 7,976 38,566 8,002 38,677 7,732 38,741 7,576 38,944 8,112 39,102 7,934 84,538 35,462 89,018 40,597 87,127 36,761 87,119 37,984 82,006 32,216 88,226 40,525 86,978 39,415 85,739 38,918 87,719 39,913 18,200 17,262 49,076 22,417 18,180 48,421 18,089 18,672 50,366 18,465 19,519 49,135 17,300 14,916 49,790 20,471 20,054 47,701 20,401 19,014 47,563 19,459 19,459 46,821 19,698 20,215 47,806 33,570 15,506 37,139 27,153 198,597 32,012 16,409 36,391 25,948 201,492 33,915 16,451 37,033 25,606 199,979 32,610 16,525 36,315 26,536 199,633 33,196 16,594 37,206 28,073 197,768 31,059 16,642 37,095 24,856 200,482 30,678 16,885 36,484 27,255 200,426 30,307 16,514 36,925 28,783 202,062 31,252 16,554 36,393 26,015 201,023 114,656 100,846 115,756 101,680 115,046 101,291 114,417 100,542 114,345 100,360 114,723 100,963 114,000 100,577 116,498 102,406 116,136 101,900 4 Oct. 11 Oct. 18 Oct. 25 MEMO 42 43 Total loans (gross) and securities adjusted . . Total loans (gross) adjusted" 1. Effective Jan. 4,1989, the reporting panel includes a new group of large U.S. branches and agencies of foreign banks. Earlier data included 65 U.S. branches and agencies of foreign banks that included 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. Effective Jan. 4, 1989, loans secured by real estate are being reported as a separate component of Other loans, gross. Formerly, these loans were included in "All other", line 21. 4. Includes credit balances, demand deposits, and other checkable deposits. 5. Includes savings deposits, money market deposit accounts, and time deposits. 6. Includes securities sold under agreements to repurchase. 7. Exclusive of loans to and federal funds sold to commercial banks in the United States. A10 DomesticNonfinancialStatistics • January 1990 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances, not seasonally adjusted Commercial banks 1988 Type of holder 1984 Dec. 1985 Dec. 1986 Dec. 1989 1987 Dec. June Sept. Dec. Mar. June Sept. k1 1 n.a. 1 1 1 All holders—Individuals, partnerships, and corporations 302.7 321.0 363.6 343.5 346.5 337.8 354.7 330.4 329.3 2 3 4 5 6 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 36.3 191.9 90.0 3.4 21.9 37.2 194.3 89.8 3.4 21.9 34.8 190.3 87.8 3.2 21.7 38.6 201.2 88.3 3.7 22.8 36.3 182.2 87.4 3.7 20.7 33.0 185.9 86.6 2.9 21.0 Financial business Nonfinancial business Consumer Foreign Other ? Weekly reporting banks 1988 1984 Dec. 7 All holders—Individuals, partnerships, and corporations 8 9 10 11 12 Financial business Nonfinancial business Consumer Foreign Other 1985 Dec. 1989 1987 Dec. June Sept. Dec. Mar. June Sept. 157.1 168.6 195.1 183.8 191.5 185.3 198.3 181.9 182.2 186.6 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 28.6 100.0 39.1 3.3 12.7 30.0 103.1 42.3 3.4 12.8 27.2 101.5 41.8 3.1 11.7 30.5 108.7 42.6 3.6 12.9 27.2 98.6 41.1 3.3 11.7 25.4 99.8 42.4 2.9 11.7 26.3 101.6 43.0 2.8 12.9 1. Figures include cash items in process of collection. Estimates of gross deposits are based on reports supplied by a sample of commercial banks. Types of depositors in each category are described in the June 1971 Bulletin, p. 466. Figures may not add to totals because of rounding. 2. Beginning in March 1984, these data reflect a change in the panel of weekly reporting banks, and are not comparable to earlier data. Estimates in billions of dollars for December 1983 based on the new weekly reporting panel are: financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other 9.5. 3. Beginning March 1985, financial business deposits and, by implication, total gross demand deposits have been redefined to exclude demand deposits due to 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. 1986 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 1989 1984 Dec. Instrument 1985 Dec. 1986 Dec. 1987 Dec. 1988 Dec. 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 237,586 298,779 329,991 357,129 455,017 494,292 497,369 503,445 506,095 516,476 506,779 56,485 78,443 101,072 101,958 159,947 170,549 167,795 167,681 179,354 180,822 178,358 2,035 1,602 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. 110,543 135,320 151,820 173,939 192,442 207,231 206,497 211,020 205,847 208,915 206,521 42,105 70,558 44,778 85,016 40,860 77,099 43,173 81,232 43,155 102,628 n.a. 116,512 n.a. 123,077 n.a. 124,744 n.a. 121,217 n.a. 125,478 n.a. 123,300 Bankers dollar acceptances (not seasonally adjusted) 6 7 Total Holder Accepting banks Own bills Bills bought Federal Reserve Banks Own account Foreign correspondents Others Basis 14 Imports into United States 15 Exports from United States 16 All other 8 9 10 11 12 13 78,364 68,413 64,974 70,565 66,631 64,357 62,396 64,115 65,588 65,764 64,042 9,811 8,621 1,191 11,197 9,471 1,726 13,423 11,707 1,716 10,943 9,464 1,479 9,086 8,022 1,064 9,616 8,107 1,509 8,908 8,115 794 9,417 8,371 1,046 9,355 8,279 1,076 9,844 8,783 1,061 9,656 8,922 735 0 671 67,881 0 937 56,279 0 1,317 50,234 0 965 58,658 0 1,493 56,052 0 1,400 53,340 0 1,374 52,113 0 1,177 53,521 0 1,026 55,207 0 1,014 54,906 0 1,016 53,370 17,845 16,305 44,214 15,147 13,204 40,062 14,670 12,960 37,344 16,483 15,227 38,855 14,984 14,410 37,237 15,234 14,371 34,752 14,900 14,452 33,044 15,093 15,063 33,959 15,338 15,270 34,980 16,140 14,895 34,729 16,265 14,322 33,455 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. Beginning January 1989, bank-related series have been discontinued. 4. As reported by financial companies that place their paper directly with investors. 5. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and services. 6. 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 Average rate Average rate 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 1986— Mar. Apr. July Aug. 1987— Apr. May 2 11 14 11 28 8.50 9.00 9.50 10.00 10.50 1989— Feb. 10 24 June 5 July 31 11.00 11.50 11.00 10.50 1988— Feb. May July Aug. Nov. 1986 1987 1988 8.33 8.21 9.32 1986— Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 9.50 9.50 9.10 8.83 8.50 8.50 8.16 7.90 7.50 7.50 7.50 7.50 NOTE. These data also appear in the Board's H.15 (519) and G.13 (415) releases. For address, see inside front cover. 1987— Jan. Feb. Mar. Apr. ... .. .. .. Dec. .. 7.50 7.50 7.50 7.75 8.14 8.25 8.25 8.25 8.70 9.07 8.78 8.75 Feb. .. 8.75 8.51 June .. July ... Aug. .. Sept. .. Oct. ... 1988— 1988— Mar. .. Apr. . May .. June . July .. Aug. . Sept. . Oct. .. Nov. . Dec. .. 1989— Jan. ... Feb. .. Mar. .. Apr. May , June , July Aug. .. Sept. Oct. Nov. A24 DomesticNonfinancialStatistics • January 1990 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. 1989 Instrument 1986 1987 1989, week ending 1988 July Aug. Sept. Oct. Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 MONEY MARKET RATES 1 Federal funds 1 ' 2 2 Discount window borrowing1' ' 3 Commercial paper • 3 1-month 4 3-month 5 6-month Finance paper, directly placed 4 ' 1-month 6 7 3-month 8 6-month Bankers acceptances ' 6 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 bills5 Secondary market 9 13 3-month 16 6-month •-year 17 Auction average 18 3-month 19 6-month 20 1-year 6.80 6.32 6.66 5.66 7.57 6.20 9.24 7.00 8.99 7.00 9.02 7.00 8.84 7.00 9.02 7.00 9.18 7.00 8.93 7.00 8.76 7.00 8.72 7.00 6.61 6.49 6.39 6.74 6.82 6.85 7.58 7.66 7.68 8.95 8.68 8.35 8.79 8.57 8.32 8.87 8.70 8.50 8.66 8.53 8.24 8.92 8.77 8.58 8.90 8.82 8.58 8.69 8.57 8.27 8.51 8.36 8.10 8.55 8.42 8.07 6.57 6.38 6.31 6.61 6.54 6.37 7.44 7.38 7.14 8.80 8.32 7.80 8.67 8.20 7.49 8.76 8.35 7.56 8.54 8.29 7.50 8.79 8.33 7.56 8.79 8.61 7.63 8.56 8.30 7.50 8.38 8.16 7.44 8.45 8.14 7.47 6.38 6.28 6.75 6.78 7.56 7.60 8.54 8.19 8.47 8.22 8.59 8.37 8.42 8.08 8.70 8.48 8.70 8.41 8.40 8.04 8.30 7.99 8.32 7.92 6.61 6.51 6.50 6.70 6.75 6.87 7.01 7.07 7.59 7.73 7.91 7.85 8.96 8.76 8.59 8.85 8.77 8.64 8.56 8.71 8.83 8.78 8.75 8.85 8.62 8.60 8.45 8.67 8.90 8.88 8.85 8.86 8.87 8.91 8.81 9.03 8.63 8.63 8.46 8.80 8.47 8.42 8.30 8.51 8.54 8.49 8.29 8.58 5.97 6.02 6.07 5.78 6.03 6.33 6.67 6.91 7.13 7.88 7.61 7.36 7.90 7.74 7.61 7.75 7.74 7.65 7.64 7.62 7.45 7.84 7.85 7.78 7.76 7.83 7.76 7.66 7.63 7.46 7.50 7.53 7.33 7.60 7.50 7.28 5.98 6.03 6.07 5.82 6.05 6.33 6.68 6.92 7.17 7.92 7.63 7.58 7.91 7.72 7.45 7.72 7.74 7.61 7.59 7.61 7.35 7.72 7.79 7.61 7.83 7.92 n.a. 7.63 7.60 n.a. 7.37 7.42 n.a. 7.52 7.50 7.35 6.45 6.86 7.06 7.30 7.54 7.67 7.84 7.78 6.77 7.42 7.68 7.94 8.23 8.39 n.a. 8.59 7.65 8.10 8.26 8.47 8.71 8.85 n.a. 8.96 7.89 7.82 7.83 7.83 7.94 8.02 n.a. 8.08 8.18 8.14 8.13 8.09 8.11 8.11 n.a. 8.12 8.22 8.28 8.26 8.17 8.23 8.19 n.a. 8.15 7.99 7.98 8.02 7.97 8.03 8.01 n.a. 8.00 8.38 8.41 8.42 8.32 8.37 8.31 n.a. 8.26 8.35 8.33 8.32 8.21 8.25 8.18 n.a. 8.13 8.00 7.96 8.00 7.95 8.02 8.00 n.a. 7.99 7.85 7.86 7.94 7.92 7.98 7.99 n.a. 7.99 7.81 7.81 7.86 7.83 7.90 7.89 n.a. 7.91 8.14 8.64 8.98 8.19 8.26 8.31 8.15 8.43 8.29 8.15 8.13 8.05 6.95 7.76 7.32 7.14 8.17 7.63 7.36 7.83 7.68 6.69 7.17 6.96 6.67 7.03 7.06 6.97 7.26 7.26 6.93 7.33 7.22 7.20 7.45 7.40 7.05 7.34 7.27 6.87 7.29 7.19 6.89 7.32 7.19 6.90 7.35 7.22 9.71 9.02 9.47 9.95 10.39 9.91 9.38 9.68 9.99 10.58 10.18 9.71 9.94 10.24 10.83 9.34 8.93 9.14 9.42 9.87 9.36 8.96 9.14 9.45 9.88 9.41 9.01 9.23 9.51 9.91 9.34 8.92 9.19 9.44 9.81 9.45 9.03 9.28 9.56 9.94 9.44 9.02 9.27 9.52 9.92 9.35 8.94 9.19 9.43 9.82 9.30 8.88 9.16 9.39 9.77 9.29 8.85 9.14 9.41 9.75 9.61 9.96r 10.20 9.54 9.55 9.55 9.39 9.60 9.40 9.33 9.37 9.39 8.76 3.48 8.37 3.08 9.23 3.64 8.81 3.38 8.75 3.28 8.82 3.29 8.85 3.29 8.82 3.30 8.84 3.21 8.91 3.21 8.86 3.36 8.79 3.36 CAPITAL MARKET RATES 21 22 23 24 23 26 27 28 29 30 31 32 33 34 33 36 37 38 U.S. Treasury notes and bonds 11 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 Seasoned issues All industries Aaa Aa A Baa A-rated, recently offered utility bonds 17 MEMO: Dividend/price ratio 39 Preferred stocks 40 Common stocks 18 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 1989 Indicator 1986 1987 1988 Feb. Apr. Mar. May June July Aug. Sept. Oct. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 2 Industrial 3 Transportation 4 Utility 5 Finance 6 Standard & Poor's Corporation (1941-43 = 10) r 136.03 155.85 119.87 71.36 147.19 161.78 195.31 140.52 74.29 146.48 149.97 180.83 134.09 72.22 127.41 165.08 200.00 162.66 77.84 137.19 164.56 197.58 153.85 87.16 146.14 169.38 204.81 164.32 79.69 143.26 175.30 211.81 169.05 84.21 146.82 180.76 216.75 173.47 87.95 154.08 185.15 221.74 179.32 90.40 157.78 192.93 231.32 197.53 92.90 164.86 193.02 230.86 202.02 93.44 165.51 192.49 229.40 190.36 94.67 166.55 236.39 287.00 265.88 294.01 292.71 302.25 313.93 323.73 331.92 346.61 347.33 347.40 7 American Stock Exchange (Aug. 31, 1973 = 50? 264.91 316.78 295.08 323.97 327.47 336.82 349.50 362.73 368.52 379.28 382.75 383.63 141,020 11,846 188,922 13,832 161,386 9,955 169,223 11,780 159,024 11,395 161,863 11,529 171,495 11,699 180,680 13,519 162,501 11,702 171,683 14,538 151,752 12,631 182,394 n.a. 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 36,840 31,990 32,740 31,480 32,130 32,610 33,140 34,730 34,360 33,940 35,020 35,110 Free credit balances at brokers4 11 Margin-account 12 Cash-account 4,880 19,000 4,750 15,640 5,660 16,595 5,605 16,195 5,345 16,045 5,450 16,125 5,250 15,965 6,900 19,080 5,420 16,345 5,580 16,015 5,680 15,310 6,000 16,340 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 1990 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1988 Account 1986 1989 1987 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. SAIF-insured institutions 1 Assets 2 Mortgages 3 Mortgage-backed securities 4 Contra-assets to mortgage assets 1 . 5 Commercial loans 6 Consumer loans 7 Contra-assets to nonmortgage loans . 8 Cash and investment securities 9 Other 3 1,350,500 721,593 763,001 764,513 767,260 767,603 769,398' 773,436' 774,406' 772,777' 771,726' 770,286 158,193 201,828 212,512 214,587 211,308 213,090 215,203 216,176 216,301 211,263' 204,268' 195,255 41,799 23,683 51,622 42,344 23,163 57,902 37,739 25,513 61,504 37,950 33,889 61,922 37,157 32,974 61,998 37,013 32,955 61,981 37,842' 32,866 61,402 37,582' 33,096' 60,744' 37,214' 33,184' 61,077' 36,831 32,944 61,003 697,451 3,041 3,467 2,959 3,056 2,840 2,923' 164,844 112,898 169,717 122,462 179,830 131,243 186,986 129,610 178,813 125,026 177,178 126,243 1,250,855 1,332,905 1,350,500 971,497 281,088 127,548 153,540 29,178 51,143 971,700 299,400 134,168 165,232 24,216 55,185 10 Liabilities and net worth . 1,163,851 11 12 13 14 15 16 Savings capital Borrowed money FHLBB Other Other Net worth 1,337,382 1,339,115 1,340,502' l,345,403r 1,346,623' 1,338,619' 1,331,995' 1,318,249 1,250,855 1,332,905 1,163,851 890,664 196,929 100,025 96,904 23,975 52,282 932,616 249,917 116,363 133,554 21,941 46,382 1,337,382 1,339,115 963,820 299,415 135,712 163,703 29,751 58,882 957,358 305,675 140,089 165,586 31,749 58,962 3,074 177,094 125,455' 37,792' 32,809' 61,739 2,894' 175,895' 126,034' 37,497' 33,006' 61,879 2,912 174,293' 127,147' 3,145' 3,164' 3,130 175,203' 126,262' 175,187' 126,930' 171,621 127,101 l,340,502r 1,345,403' 1,346,623' 1,338,619' 1,331,995' 1,318,249 956,663 312,988 146,007 166,981 29,593' 57,113' 954,495 318,669' 148,000' 170,669 31,644' 56,122' 955,566 318,369' 146,520' 171,849 33,599' 54,633' 960,070 312,062' 144,217' 167,845' 29,864' 52,799' 963,140' 301,546' 141,875' 159,671' 31,888' 50,963' 960,341 289,631 138,331 151,300 33,920 50,004 SAIF-insured federal savings banks 17 Assets 210,562 284,270 374,930 425,983 423,846 432,675 443,185 455,152 469,950 495,806 507,026 18 Mortgages 19 Mortgage-backed securities 20 Contra-assets to mortgage assets 1 . 21 Commercial loans 22 Consumer loans Contra-assets to non23 mortgage loans . 24 Finance leases plus interest 25 Cash and investment . . . 26 Other 113,638 161,926 210,732 227,869 234,591 238,415 244,092 249,936 257,184 276,666 285,261 29,766 45,826 57,815 64,957 62,773 65,896 68,047 69,967 73,967 73,946 74,343 n.a. n.a. 13,180 9,100 6,504 17,696 10,901 9,041 22,679 13,140 16,731 24,222 12,258 16,172 25,033 12,685 16,320 25,977 12,936 16,317 26,097 13,053 16,498 26,767 13,231 16,935 27,956 13,654 18,014 28,128 13,932 18,264 28,968 678 803 889 814 857 972 863 1,072 975 980 n.a. n.a. 19,034 591 35,347 24,069 831 48,028 29,942 880 61,029 35,428 907 57,434 33,954 946 57,986 34,664 1,011 60,319 35,006 1,047 61,279 37,367 1,072 62,002 38,034 1,083 65,681 39,808 1,088 65,949 40,281 27 Liabilities and net worth . 210,562 284,270 374,930 425,983 423,846 432,675 443,185 455,152 469,950 495,806 507,026 157,872 37,329 19,897 17,432 4,263 11,098 203,196 60,716 29,617 31,099 5,324 15,034 263,984 83,628 39,630 43,998 8,319 18,882 298,197 99,286 46,265 53,021 8,075 20,235 298,515 98,304 46,470 51,834 8,270 21,625 301,770 102,902 48,951 53,951 8,884 22,700 307,581 107,180 51,532 55,648 8,651 23,103 315,726 109,998 53,513 56,485 9,310 23,411 324,369 114,848 55,457 59,391 10,179 23,924 342,146 121,890 58,500 63,390 9,836 25,726 352,530 121,151 59,737 61,414 10,687 26,306 28 29 30 31 32 33 Savings capital Borrowed money FHLBB Other Other Net worth n.a. n.a. Financial Markets All 1.37—Continued 1988 Account 1986 1989 1987 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Credit unions 5 34 Total assets/liabilities and capital 35 36 Federal State 37 Loans outstanding 38 Federal 39 State 40 Savings 41 Federal 42 State 147,726 174,406 174,593 175,027 176,270 178,175 177,417 178,812 180,664 179,029 180,035 95,483 52,243 113,717 61,135 114,566 60,027 114,909 60,118 115,543 60,727 117,555 60,620 115,416 62,001 116,705 62,107 117,632 63,032 117,475 61,554 117,463 62,572 112,452 73,100 39,352 159,021 103,223 55,798 113,191 73,766 39,425 159,010 104,431 54,579 114,012 74,083 39,927 159,106 104,629 54,477 113,880 73,917 39,963 161,073 105,262 55,811 114,572 74,395 40,177 164,322 107,368 56,954 115,249 75,003 40,246 161,388 105,208 56,180 116,947 76,052 40,895 162,134 105,787 56,347 119,101 77,729 41,372 164,415 106,984 57,431 119,720 78,472 41,248 162,405 106,266 56,139 120,577 78,946 41,631 162,754 106,038 56,716 n.a. n.a. 86,137 55,304 30,833 134,327 87,954 46,373 n.a. Life insurance companies 43 Assets 44 45 46 47 48 49 50 51 52 53 54 Securities Government United States 6 State and local Foreign 7 Business Bonds Stocks Mortgages Real estate Policy loans Other assets 937,551 1,044,459 1,144,854 84,640 59,033 11,659 13,948 n.a/ 401,943 n.a/ 193,842 31,615 54,055 80,592 84,426 57,078 10,681 16,667 n.a/ 472,684 n.a/ 203,545 34,172 53,626 89,586 89,510 61,108 11,189 17,213 n.a/ 532,197 n.a/ 229,234 36,673 53,148 94,116 1,157,140 1,176,042' 1,186,208' 1,199,125' 1,209,242' 1,221,332 88,167 60,685 11,126 16,356 n.a/ 538,053 n.a/ 232,639 37,972 53,020 95,518 84,042' 58,473' 8,918' 16,651' 667,026' 560,385' 106,641' 232,941' 37,453' 54,517' 98,063' 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. 84,19C 58,509^ 8,817' 16,864' 678,541' 571,365' 107,176' 233,556' 37,603' 54,738' 97,58c 84,485' 58,417' 8,86c 17,208' 687,777' 579,232' 108,545' 234,632' 37,842' 54,921' 99,468' 82,873' 57,127' 8,911' 16,835' 697,703' 587,889' 109,814' 235,312' 37,976' 55,201' 100,173' 83,847 57,790 8,953 17,104 706,960 595,500 111,460 236,651 38,598 55,525 99,751 1,232,195 84,564 57,817 9,036 17,711 714,398 601,786 112,612 237,444 38,190 55,746 101,853 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." As of June 1989 Savings bank data are no longer available. A28 1.38 DomesticNonfinancialStatistics • January 1990 FEDERAL FISCAL A N D FINANCING OPERATIONS Millions of dollars Calendar year Type of account or operation U.S. budget1 1 Receipts, total 2 On-budget 3 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 Other i 10 11 Fiscal year 1987 Fiscal year 1988' Fiscal year 1989 1989 May June July Aug. Sept. Oct. 71,025' 49,403' 21,622 96,491' 77,761' 18,730 -25,466 -28,358 2,891 108,249' 84,043' 24,206 100,46c 83,927' 16,534 7,789 116 7,673 66,191' 45,673' 20,518 84,43C 66,624' 17,806 -18,239 -20,951 2,712 76,161' 57,156' 19,004 98,31C 79,218' 19,092 -22,150 -22,062 -88 99,233 75,711 23,522 105,299' 86,548' 18,750 -6,066' -10,837' 4,771 68,426 50,122 18,304 94,515 75,0% 19,419 -26,089 -24,974 -1,115 854,143 640,741 213,402 l,003,804rr 809,972 193,832 -149,661 r -169,231' 19,570 908,166 666,675 241,491 1,063,318 860,626 202,691 -155,151 -193,951 38,800 990,789 727,123 263,666 1,142,777' 931,556' 211,221 -151,988' -204,433' 52,445 151,717' 166,139 140,156' 10,214 1,098 —3,%2 35,854 6,618' 36,690 -5,052 2,996' -7,963 -3,025 3,425 8,407' 21,3% -6,144 -11,649 2,762 21,564 636 -3,235 -10,469 -15,589 14,977' -2,513 -8,088 36,436 9,120 27,316 44,398 13,024 31,375 40,973 13,452 27,521 32,065 5,289 26,776 43,713 12,154 31,560 22,149 5,312 16,837 25,384 6,652 18,732 40,973 13,452 27,521 43,486 13,124 30,362 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 monetaiy 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 1988 Fiscal year 1989 1987 1988 1989 1989 H2 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources 2 Individual income taxes, net 3 Withheld 4 Presidential Election Campaign Fund 5 Nonwithheld 6 Refunds Corporation income taxes 7 Gross receipts 8 Refunds 9 Social insurance taxes and contributions, net 10 Employment taxes and contributions 11 Self-employment taxes and contributions 12 Unemployment insurance 13 Other net receipts 14 15 16 17 Excise taxes Customs deposits Estate and gift taxes Miscellaneous receipts 908,166' 990,789 421,525' 475,724' 449,394' 527,574' 76,161' 99,233 68,426 401,181 341,435 33 132,199 72,487 445,690 361,386 32 154,839 70,567 192,575 170,203 4 31,223 8,853 207,659 169,300 28 101,614 63,283 200,30c 179,600 4 29,880 9,186' 233,572' 174,230 28 121,563 62,251' 36,932 34,200 1 4,076 1,345 45,026 28,120 1 18,943 2,038 35,493 32,751 0 3,684 943 109,683 15,487 117,015 13,723 52,821 7,119 58,002 8,706 56,409 7,250' 61,585 7,259' 2,872 909 20,085 655 3,279 2,549 334,335 359,416 143,755 181,058 157,603 200,127 28,470 29,259 24,308 305,093 332,859 130,388 164,412 144,983 184,569 24,127 29,632 23,100 17,691 24,584 4,659 18,405 22,011 4,547 1,889 10,977 2,390 14,839 14,363 2,284 3,032 10,359 2,262 16,371 13,279 2,277 -733 3,983 360 2,540 -7% 424 0 859 350 35,540 16,198 7,594 19,909 34,386 15,411' 8,745 22,927' 17,680 7,806' 3,610 10,399 16,440 7,522' 3,863 9,950 19,299' 8,107' 4,054 10,873 16,814' 7,918' 4,583 10,235 2,%5 1,677' 753 3,399 2,428 1,352 631 1,107 2,970 1,493 835 2,598 1,063,318' 1,142,777' 532,839 513,210 552,998' 565,524' 98,310' 105,299' 94,515 290,361 10,471 10,841 2,297 14,625' 17,210 303,551 9,5% 12,891 3,745 16,084 16,948 146,995 4,487 5,469 1,468 7,590 14,640 143,080 7,150 5,361 555 6,776 7,872 150,4% 2,636 5,852 1,966 9,144' 6,911' 148,098 6,605 6,238 2,221 7,022 9,619 26,018 848 1,202 287 1,264 -274 28,641 868 1,190 -182 1,423 -61 19,930 2,117 1,342 363 1,975 904 18,828' 27,272 5,294 27,718' 27,623 5,755 3,852 14,096 2,075 5,951 12,700 2,765 19,836' 14,922 2,690 4,129 13,035' 1,833 2,070 2,623 649 10,003 2,348 964 5,4% 2,618 790 OUTLAYS 18 All types 19 20 21 22 23 24 National defense International affairs General science, space, and technology Energy Natural resources and environment Agriculture 25 26 27 28 Commerce and housing credit Transportation Community and regional development Education, training, employment, and social services 29 Health 30 Social security and medicare 31 Income security 32 33 34 35 36 37 Veterans benefits and services Administration of justice General government General-purpose fiscal assistance Net interest 8 Undistributed offsetting receipts 31,938 35,697 15,592 15,451 16,152 3,493 2,937 3,251 44,490 298,219' 129,332 48,391 317,506' 136,765 20,750 158,469 61,201 22,643 135,322 65,555 23,360 149,017' 64,978 24,078 162,195 70,937 4,520 27,625 11,176 3,613 26,909 12,126 4,511 27,143 9,711 29,406' 8,436' 9,518' 1,816 151,748 -36,967 30,066 9,396 8,940 n.a. 169,314 -37,212 14,956 4,105' 3,560 1,175 71,933 -17,684 13,241 4,379' 4,337 448 76,098 -17,766 15,797 4,351' 5,137 0 78,317 -18,771 14,891 4,801' 3,858 0 86,009 -18,131 2,246 763' 785 n.a. 16,011 -2,998 3,628 836 997 n.a. 13,684 -4,625 1,503 842 842 n.a. 14,124 -2,945 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. 18,083' 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 1990. A30 Domestic Financial Statistics • January 1990 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1988 1987 1989 Item Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 2,354.3 2,435.2 2,493.2 2,555.1 2,614.6 2,707.3 2,763.6 2,824.0 2,881.1 2 Public debt securities 3 Held by public 4 Held by agencies 2,350.3 1,893.1 457.2 2,431.7 1,954.1 477.6 2,487.6 1,9%.7 490.8 2,547.7 2,013.4 534.2 2,602.2 2,051.7 550.4 2,684.4 2,095.2 589.2 2,740.9 2,133.4 607.5 2,799.9 2,142.1 657.8 2,857.4 n.a. n.a. 4.0 3.0 1.0 3.5 2.7 .8 5.6 5.1 .6 7.4 7.0 .5 12.4 12.2 .2 22.9 22.6 .3 22.7 22.3 .4 24.0 23.6 .5 5 Agency securities 6 Held by public 7 Held by agencies n.a. n.a. n.a. 2,336.0 2,417.4 2,472.6 2,532.2 2,586.9 2,669.1 2,725.6 2,784.6 2,829.8 9 Public debt securities 10 Other debt 1 2,334.7 1.3 2,416.3 1.1 2,472.1 .5 2,532.1 .1 2,586.7 .1 2,668.9 .2 2,725.5 .2 2,784.3 .2 2,829.5 .3 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,870.0 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 Type and holder 1 Total gross public debt By type 2 Interest-bearing debt 3 Marketable 4 Bills 5 6 Bonds 7 Nonmarketable 1 8 State and local government series 9 Foreign issues Government 10 Public 11 12 Savings bonds and notes 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 international5 Other miscellaneous investors 1985 1987 1989 1988 Q4 Ql Q2 Q3 1,945.9 2,214.8 2,431.7 2,684.4 2,684.4 2,740.9 2,799.9 2,857.4 1,943.4 1,437.7 399.9 812.5 211.1 505.7 87.5 7.5 7.5 .0 78.1 332.2 2,212.0 1,619.0 426.7 927.5 249.8 593.1 110.5 4.7 4.7 .0 90.6 386.9 2,428.9 1,724.7 389.5 1,037.9 282.5 704.2 139.3 4.0 4.0 .0 99.2 461.3 2,663.1 1,821.3 414.0 1,083.6 308.9 841.8 151.5 6.6 6.6 .0 107.6 575.6 2,663.1 1,821.3 414.0 1,083.6 308.9 841.8 151.5 6.6 6.6 .0 107.6 575.6 2,738.3 1,871.7 417.0 1,121.4 318.4 866.6 154.4 6.7 6.7 .0 110.4 594.7 2,797.4 1,877.3 397.1 1,137.2 328.0 920.1 156.0 6.2 6.2 .0 112.3 645.2 2,836.3 1,892.8 406.6 1,133.2 338.0 943.5 158.6 6.8 6.8 .0 114.0 663.7 2.5 2.8 2.8 21.3 21.3 2.6 2.5 21.1 348.9 181.3 1,417.2 198.2 25.1 78.5 59.0 226.7 403.1 211.3 1,602.0 203.5 28.0 105.6 68.8 262.8 477.6 222.6 1,745.2 201.5 14.6 104.9 84.6 284.6 589.2 238.4 1,852.8 192.2 18.8 111.2 86.5 313.6 589.2 238.4 1,852.8 192.2 18.8 111.2 86.5 313.6 607.5 228.6 1,900.2 203.3 13.0 112.5 n.a. 326.3 657.8 231.8 1,905.4 n.a. 11.6 n.a. n.a. n.a. 79.8 75.0 212.5 462.4 92.3 70.5 251.6 518.9 101.1 72.3 287.3 594.3 109.6 77.8 349.5 600.6 109.6 77.8 349.5 600.6 112.2 n.a. 363.1 n.a. 114.0 n.a. 355.8 n.a. 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. 1986 n. a. 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 1.42 U.S. GOVERNMENT SECURITIES DEALERS A31 Transactions1 Par value; averages of daily figures, in millions of dollars 1989 1989 Item 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 Immediate delivery2 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 others 3 Federal agency securities Certificates of deposit Bankers acceptances Commercial paper Futures contracts Treasury bills Treasury coupons Federal agency securities Forward transactions U.S. Treasury securities Federal agency securities 1986 1987 1988 Aug. Sept. Oct. Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 95,444 110,050 101,623 119,802 100,270 130,805 112,499 104,516 95,164 135,070 170,957 126,066 34,247 2,115 24,667 20,455 13,961 37,924 3,271 27,918 24,014 16,923 29,387 3,426 27,777 24,939 16,093 30,893 2,659 36,330 31,471 18,450 27,668' 2,620 31,526 24,719 13,737 35,891 3,313 39,957 34,361 17,283 34,218 2,528 31,558 28,831 15,364 26,911 3,165' 36,966 23,080 14,395 27,850 3,661 30,273 21,442 11,938 31,378 2,391 40,082 42,989 18,230 42,838 3,299 57,404 46,326 21,090 35,763 3,476 39,069 30,359 17,400 3,669 2,936 2,761 3,824 2,794 4,2% 2,641 2,697' 3,901 4,236 4,424 4,583 60,193 37,283 19,193 2,677 2,086 29,145 77,566 48,943 20,978 2,422 2,169 34,166 67,680 42,178 23,126 2,529 1,933 28,147 61,873 39,946 18,141 3,137 2,140 32,529 54,372 36,891 18,305 2,419 2,290 32,884 78,213 52,622 21,566 2,920 2,029 34,869 104,153 62,380 23,514 2,726 2,311 37,418 75,291 46,192 21,123 2,016 2,063 32,331 49,558 42,217 16,747 4,355 3,272 16,660 61,539 45,575 18,084 4,112 2,965 17,135 59,844 39,019 15,903 3,369 2,316 22,927 71,862 44,116 19,048 2,463 1,910 31,006 3,311 7,175 16 3,233 8,963 5 2,627 9,695 1 1,696 10,537 8 2,645 8,7% 38 2,797 10,326 20 3,000 10,365 43 2,326 9,328 31 2,561 7,927 30 1,521 11,521 4 4,201 12,482 42 3,363 10,419 6 1,876 7,830 2,029 9,290 2,095 8,008 2,926 12,067 2,116 8,614 2,168 10,561 2,473 10,117 2,854 7,294 1,232 7,420 2,262 12,805 3,321 12,894 2,593 9,105 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 securities for delivery at a future date. 5. Forward transactions are agreements arranged in the over-the-counter market in which securities are purchased (sold) for delivery after 5 business days from the date of the transaction for Treasury securities (Treasury bills, notes, and bonds) or after 30 days for mortgage-backed agency issues. A73 DomesticNonfinancialStatistics • January 1990 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1989 Item 1986 1987 1989 1988 Aug. Sept. Oct. Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Positions 1 Net immediate2 U.S. Treasury securities 12,912 -6,216 -22,765 3,771r 12,193' 10,680 8,809r r 6,369 4,862 11,605 13,243 2 3 4 5 6 Bills Other within 1 year 1-5 years 5-10 years Over 10 years 12,761 3,705 9,146 -9,505 -3,197 4,317 1,557 649 -6,564 -6,174 2,238 -2,236 -3,020 -9,663 -10,084 10,317 -834 8,027 -8,764' -4,976 20,418 197 5,302r -8,630 -5,093 19,166 -1,650 9,677 -10,499 -6,014 20,207' 357 4,589' -10,439 -5,904 16,983 -1,755 7,287 -11,067 -5,079 18,202 -2,067 6,850 -13,425 -4,698 18,633 -1,430 9,594 -8,997 -6,194 20,766 -1,323 10,248 -9,649 -6,799 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 32,984 10,485 5,526 8,089 31,911 8,188 3,660 7,4% 28,230 7,300 2,486 6,152 35,268 6,729 1,875 7,490 36,097r 7,065 2,154 8,258 36,256 7,124 2,105 9,055 34,440' 6,777 2,105 7,822' 32,650 6,990 1,818 7,485 37,444 6,863 1,866 8,279 38,105 7,103 2,234 9,821 34,904 6,926 2,086 9,732 -18,059 3,473 -153 -3,373 5,988 -95 -2,210 6,224 0 -5,376 -2,664 7 -6,106 -4,797 -26 -7,462 -9,293 68 -6,872 -4,501' -29 -6,831 -5,116 -55 -7,076 -7,952 7 -5,032 -9,870 92 -8,215 -10,265 103 -2,144 -11,840 -1,211 -18,817 346 -16,348 -1,463 -20,640 —607' -17,478 1,385 -15,368 188' -15,446 512 -14,924 1,093 -16,717 1,988 -15,312 1,258 -13,817 11 12 13 14 15 Financing3 Reverse repurchase agreements 4 Overnight and continuing Term Repurchase agreements 18 Overnight and continuing 19 Term 16 17 98,913 108,607 126,709 148,288 136,327 177,477 162,006 222,799 157,149' 212,378'" 134,243 189,932 148,221 213,871 161,202 215,752 160,663 229,964 168,242 232,477 165,045 243,807 141,823 102,397 170,763 121,270 172,695 137,056 226,043 189,187 228,923' 172,069' 196,854 155,577 215,280 178,567 231,938 172,804 234,582 181,784 248,470 193,551 243,940 205,520 1. Data for dealer positions and sources of financing are obtained from reports submitted to the Federal Reserve Bank of New York by the U.S. 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 1989 Agency 1984 1985 1986 1987 May June July Aug. Sept. 271,564 293,905 307,361 341,386 407,324 406,837 411,874 411,979 408,591 35,145 142 15,882 133 36,390 71 15,678 115 36,958 33 14,211 138 37,981 13 11,978 183 36,275 7 11,007 196 36,404 7 11,014 218 36,453 7 11,014 245 36,453 7 11,014 255 36,584 7 10,990 295 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 0 6,445 18,620 0 0 6,445 18,720 0 0 6,445 18,742 0 0 6,445 18,732 0 0 6,445 18,847 e 10 Federally sponsored agencies7 11 Federal Home Loan Banks 12 Federal Home Loan Mortgage Corporation n Federal National Mortgage Association 14 Farm Credit Banks8 15 Student Loan Marketing Association9 16 Financing Corporation1" 17 Farm Credit Financial Assistance Corporation 237,012 65,085 10,270 83,720 72,192 5,745 0 0 257,515 74,447 11,926 93,896 68,851 8,395 0 0 270,553 88,752 13,589 93,563 62,478 12,171 0 0 303,405 115,725 17,645 97,057 55,275 16,503 1,200 0 371,049 156,354 21,620 105,404 53,375 26,469 6,980 847 370,433 153,892 25,243 106,308 52,387 24,256 7,500 847 375,421 151,487 25,690 109,926 53,158 26,813 7,500 847 375,526 149,269 27,165 110,155 53,511 27,079 7,500 847 372,007 143,578 26,738 111,507 54,041 27,126 8,170 847 MEMO 18 Federal Financing Bank debt" 145,217 153,373 157,510 152,417 140,220 139,568 138,814 137,690 136,092 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 11,001 6,195 4,910 17,240 0 11,008 6,195 4,910 17,340 0 11,008 6,195 4,910 17,362 0 11,008 6,195 4,910 17,352 0 10,984 6,195 4,910 17,467 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 56,311 19,236 25,327 55,586 19,236 25,293 54,911 19,257 25,171 54,611 19,270 24,344 53,311 19,275 23,950 1 Federal and federally sponsored agencies 2 Federal agencies 3 Defense Department 1 4 Export-Import Bank ' 5 Federal Housing Administration 6 Government National Mortgage Association participation certificates' 7 Postal Service 8 Tennessee Valley Authority 9 United States Railway Association6 19 7,0 21 22 23 Lending to federal and federally sponsored agencies Export-Import Bank 3 Postal Service Student Loan Marketing Association Tennessee Valley Authority United States Railway Association Other Lendingli 74 Fanners Home Administration 75 Rural Electrification Administration 26 Other 1. Consists of mortgages assumed by the Defense Department between 1957 and 1963 under family housing and homeowners assistance programs. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. 4. Consists of debentures issued in payment of Federal Housing Administration insurance claims. Once issued, these securities may be sold privately on the securities market. 5. Certificates of participation issued before fiscal 1969 by the Government National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing and Urban Development; Small Business Administration; and the Veterans Administration. 6. Off-budget. 7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated. 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, shown in line 17. 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 1990 1.45 NEW SECURITY ISSUES Millions of dollars Tax-Exempt State and Local Governments Type of issue or issuer, or use 1986 1987 Mar. Apr May June July Aug. Sept/ Oct. 1 All issues, new and refunding1 147,011 102,407 114,522 8,626 7,464 7,435 13,775 8,735 9,824 10,818 8,229 Type of issue 2 General obligation 3 Revenue 46,346 100,664 30,589 71,818 30,312 84,210 2,185 6,441 2,301 5,163 2,342 5,093 4,960 8,815 3,789 4,946 2,199 7,625 3,500 7,318 3,032 5,197 Type of issuer 4 State 5 Special district and statutory authority 6 Municipalities, counties, and townships 14,474 89,997 42,541 10,102 65,460 26,845 8,830 74,409 31,193 256 5,962 2,408 1,407 4,238 1,819 392 4,979 2,064 1,989 8,033 3,753 970 4,868 2,897 694 7,027 2,103 764 7,567 2,487 1,388 4,254 2,587 7 Issues for new capital, total 83,492 56,789 79,665 6,486 6,061 5,938 10,078 6,816 6,612 7,470 6,518 Use of proceeds Education Transportation Utilities and conservation Social welfare Industrial aid Other purposes 12,307 7,246 14,594 11,353 6,190 31,802 9,524 3,677 7,912 15,021 6,825 8,496 19,027 5,624 24,672 1,055 445 901 1,329 253 2,503 1,225 743 759 1,048 374 1,912 1,024 748 467 1,376 361 1,962 2,678 576 1,058 1,509 329 3,928 500 551 1,632 440 2,695 1,302 556 813 1,553 447 1,941 1,639 976 622 1,242 381 1,124 257 437 1,562 232 2,807 8 9 10 11 12 13 11,106 7,474 18,020 1. Par amounts of long-term issues based on date of sale. 2. Includes school districts beginning 1986. 1.46 NEW SECURITY ISSUES 2,610 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 1987 1988 Feb. 1 All issues 1 Apr. May June July Aug/ Sept. 424,737 392,156 408,843 14,846 26,191 14,405 21,471' 24,450' 17,658' 14,822 15,073 2 Bonds2 356,304 325,648 351,042 12,308 25,577 13,396 19,662' 21,622r 12,604' 12,787 12,800 Type of offering 3 Public, domestic 4 Private placement, domestic . 5. Sold abroad 232,742 80,760 42,801 209,279 92,070 24,299 200,164 127,700 23,178 10,114 n.a. 2,194 22,995 n.a. 2,582 11,471 n.a. 1,925 17,756' n.a. 1,906 18,714' n.a. 2,908 11,184' n.a. 1,420 11,971 n.a. 816 10,800 n.a. 2,000 Industry group Manufacturing Commercial and miscellaneous Transportation Public utility Communication Real estate and financial 90,788 41,909 10,423 30,973 16,441 165,770 61,666 49,327 11,974 23,004 7,340 172,343 69,573 61,986 9,976 19,318 5,902 184,287 1,319 7,456 882 0 153 63 17,023 1,457 843 100 1,695 453 7,716 2,162 150 385 122 9,128' 3,273 102 670 230 8,869 2,701' 1,331' 0 1,173 300 7,099' 2,627 1,090 423 670 358 7,619 2,102 1,393 0 1,074 308 7,923 12 Stocks2 68,433 66,508 57,802 2,538 R 614' 1,009' 1,809' 5,054' 2,035 2,273 Type 13 Preferred 14 Common 15 Private placement3 11,514 50,316 6,603 10,123 43,225 13,157 6,544 35,911 15,346 975 1,563r n.a. 0 614' n.a. 495 514' n.a. 306' 1,503' n.a. 335' 2,493' n.a. 920 4,134' n.a. 1,013 1,023 n.a. 519 1,754 n.a. 15,027 10,617 2,427 4,020 1,825 34,517 13,880 7,608 8,449 1,535 1,898 515 37,798 833 273' 0 130' 26 53 108 0 297 155' 282' 169 0 93 310 299r 115 39 192 28C 63C 512' 0 125 25 1,536 593' 438 0 25 29 3,969' 393 343 0 137 20 1,020 193 155 0 709 0 1,195 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 12,888 2,439 4,322 1,458 31,521 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. 1,118 11 19 1,402 1,628 480 2,936 4 13,302' 2,828' 3. Data are not available on a monthly basis. Before 1987, annual totals include underwritten issues only. SOURCES. IDD Information Services, Inc., the Board of Governors of the Federal Reserve System, and before 1989, the U.S. Securities and Exchange Commission. Securities Market and Corporate Finance 1.47 OPEN-END INVESTMENT COMPANIES A35 Net Sales and Asset Position Millions of dollars 1989 Item 1987 1988 Feb. Mar. Apr. May June July Aug. Sept. INVESTMENT COMPANIES' 1 Sales of own shares2 381,260 271,237 22,741 23,149 25,496 24,661 25,817 25,330 26,800r 22,820 314,252 67,008 267,451 3,786 22,252 489 24,135 -986 26,183 -687 22,483 2,178 22,562 3,255 20,053 5,277 22,262 4,538r 21,499 1,321 4 4 Assets 453,842 472,297 482,697 483,067 497,329 509,781 515,814 535,910 539,553 538,722 5 Cash position5 6 Other 38,006 415,836 45,090 427,207 47,908 434,789 46,262 436,805 48,788 448,541 49,177 460,604 48,428 467,386 47,888 488,022 47,209 492,344 46,072 492,650 2 Redemptions of own shares 3 Net sales 3 1. Data on sales and redemptions exclude money market mutual funds but include limited maturity municipal bond funds. Data on asset positions exclude both money market mutual funds and limited maturity municipal bond 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. SOURCE. Survey of Current Business (Department of Commerce). 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1987 Account 1986 1 Corporate profits with inventory valuation and capital consumption adjustment Profits before tax Profits tax liability Profits after tax Dividends Undistributed profits 2 3 4 5 6 7 Inventory valuation 8 Capital consumption adjustment 1987 1989 1988 1988 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 282.1 221.6 106.3 115.3 91.3 24.0 298.7 266.7 124.7 142.0 98.7 43.3 328.6 306.8 137.9 168.9 110.4 58.5 308.2 276.2 127.3 148.9 102.8 46.1 318.1 288.8 129.0 159.9 105.7 54.2 325.3 305.3 138.4 166.9 108.6 58.3 330.9 314.4 141.2 173.2 112.2 61.1 340.2 318.8 143.2 175.6 115.2 60.4 316.3 318.0 144.4 173.6 118.5 55.1 307.8 296.0 134.9 161.1 120.9 40.2 292.3 272.0 122.4 149.5 123.3 26.3 6.7 53.8 -18.9 50.9 -25.0 46.8 -20.4 52.4 -20.7 49.9 -28.8 48.9 -30.4 46.9 -20.1 41.5 -38.3 36.6 -21.0 32.3 n.a. 26.3 •Trade and services are no longer being reported separately. They are included in Commercial and other, line 10. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1988 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 o t h e r 1987 1988 Ql Q2 Q3 Q4 Ql Q2 Q31 Q41 389.67 430.76 473.65 413.34 427.54 435.61 442.11 459.47 470.86 481.24 483.04 71.01 74.88 78.30 88.01 82.23 99.67 75.28 82.69 77.38 85.24 79.15 89.62 80.56 92.76 81.26 93.% 82.97 98.57 82.51 102.90 82.17 103.27 11.39 12.66 12.22 12.61 13.15 12.53 12.38 12.15 12.70 12.34 11.70 5.92 6.53 6.40 7.06 7.28 7.00 24.75 7.85 9.53 6.96 6.33 7.06 6.99 6.91 7.05 6.84 8.09 7.08 7.45 7.69 6.89 8.02 7.04 8.07 7.37 9.49 7.40 7.24 11.30 7.22 8.75 10.31 6.79 31.63 13.25 168.65 32.03 14.64 183.76 34.65 16.11 204.02 30.80 14.25 177.37 31.31 14.49 185.21 32.07 14.61 185.61 33.69 15.04 185.65 33.69 17.12 198.15 35.34 16.67 200.36 34.% 15.58 207.18 34.61 15.08 210.36 1. Anticipated by business. 2. "Other" consists of construction; wholesale and retail trade; finance and 1989 19891 insurance; personal and business services; and communication. SOURCE. Survey of Current Business (Department of Commerce). A36 DomesticNonfinancialStatistics • January 1990 Assets and Liabilities1 1.51 DOMESTIC FINANCE COMPANIES Billions of dollars, end of period 1988 Account 1985 1986 1989 1987 Ql Q2 Q3 Q4 Ql Q2 Q3 ASSETS Accounts receivable, gross 2 Consumer Business Real estate Total 111.9 157.5 28.0 297.4 134.7 173.4 32.6 340.6 141.1 207.4 39.5 388.1 141.5 219.7 41.4 402.6 144.4 224.0 42.5 410.9 146.3 223.3 43.1 412.7 146.2 236.5 43.5 426.2 140.2 243.1 45.4 428.7 144.9 250.5 47.4 442.8 147.2 248.8 48.9 444.9 Less: 5 Reserves for unearned income 6 Reserves for losses 39.2 4.9 41.5 5.8 45.3 6.8 46.8 6.8 46.3 6.8 48.4 7.1 50.0 7.3 50.9 7.4 52.1 7.5 53.7 7.8 7 Accounts receivable, net 8 All other 253.3 45.3 293.3 58.6 336.0 58.3 348.9 60.1 357.8 70.5 357.3 68.7 368.9 72.4 370.4 75.1 383.2 81.5 383.5 83.1 9 Total assets 298.6 351.9 394.2 409.1 428.3 426.0 441.3 445.5 464.6 466.6 1 2 3 4 LIABILITIES 10 Bank loans 11 Commercial paper Debt 12 Other short-term 13 Long-term 14 Due to parent 15 Not elsewhere classified 16 All other liabilities 17 Capital, surplus, and undivided profits 18.0 99.2 18.6 117.8 16.4 128.4 14.9 125.2 13.3 131.6 11.9 129.4 15.4 142.0 11.6 147.9 12.2 149.2 12.3 147.4 12.7 94.4 n.a. n.a. 41.5 32.8 17.5 117.5 n.a. n.a. 44.1 36.4 28.0 137.1 n.a. n.a. 52.8 31.5 n.a. n.a. 49.0 132.4 56.1 31.5 n.a. n.a. 51.4 139.8 58.7 33.5 n.a. n.a. 51.5 139.3 58.9 34.9 n.a. n.a. 50.6 137.9 59.8 35.6 n.a. n.a. 56.8 134.5 58.1 36.6 n.a. n.a. 59.7 141.3 63.5 38.7 n.a. n.a. 60.4 146.1 60.4 40.0 18 Total liabilities and capital 298.6 351.9 394.2 409.1 428.3 426.0 441.3 445.5 464.6 466.6 1. Components may not add to totals because of rounding. 1.52 DOMESTIC FINANCE COMPANIES 2. Excludes pools of securitized assets. Business Credit Outstanding and Net Change1 Millions of dollars, seasonally adjusted 1989 Type 1 Total 2 3 4 5 6 / 8 9 10 11 12 13 Retail financing of installment sales Automotive Equipment Pools of securitized assets 2 Wholesale Automotive Equipment All other Pools of securitized assets 2 Leasing Automotive Equipment Pools of securitized assets 2 Loans on commercial accounts receivable and factored commercial accounts receivable All other business credit 1986 1987 1988 Apr. May June July Aug. Sept. 172,060 205,810 234,529 244,882 245,861 249,322 251,126 253,822 258,851 26,015 23,112 n.a. 35,782 25,170 n.a. 36,548 28,298 n.a. 38,415 28,790 817 38,816 27,638 846 39,042 27,773 807 39,183 28,128 769 39,355 29,039 793 39,258 29,639 755 23,010 5,348 7,033 n.a. 30,507 5,600 8,342 n.a. 33,300 5,983 9,341 n.a. 34,383 6,153 9,852 0 34,534 6,0% 9,929 0 34,021 6,165 9,862 0 33,233 6,244 10,001 0 33,566 6,497 9,990 0 37,243 6,602 9,957 0 19,827 38,179 n.a. 21,952 43,335 n.a. 24,673 57,455 n.a. 25,544 60,246 733 26,011 61,022 824 26,515 63,370 7% 26,701 64,086 887 26,739 64,186 990 26,865 65,170 948 15,978 13,557 18,078 17,043 17,796 21,134 18,677 21,272 18,772 21,371 19,302 21,669 19,989 21,904 20,098 22,571 19,611 22,804 Net change (during period) 14 Total 15 16 17 18 19 20 21 22 23 24 25 26 Retail financing of installment sales Automotive Equipment Pools of securitized assets Wholesale Automotive Equipment All other Pools of securitized assets 2 Leasing Automotive Equipment Pools of securitized assets 2 Loans on commercial accounts receivable and factored commercial accounts receivable All other business credit 15,763 33,750 22,662 4,696 978 3,462 1,803 2,697 5,029 5,355 629 n.a. 9,767 2,058 n.a. 766 1,384 n.a. 720 583 -38 401 -1,152 29 226 135 -39 141 354 -38 172 911 24 -97 600 -38 -978 780 224 n.a. 7,497 252 1,309 n.a. 2,793 226 999 n.a. 856 65 170 0 151 -56 78 0 -513 69 -68 0 -788 79 139 0 332 253 -11 0 3,677 104 -32 0 3,552 3,411 n.a. 2,125 5,156 n.a. 2,721 9,962 n.a. -40 762 -23 467 776 91 504 2,348 -28 187 716 91 38 99 103 126 984 -42 213 2,576 2,100 3,486 -282 4,091 883 760 95 100 530 298 687 235 109 667 -487 234 1. These data also appear in the Board's G.20 (422) release. For address, see inside front cover. 2. Data on pools of securitized assets are not seasonally adjusted. Real Estate A37 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1989 Item 1986 1987 1988 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY M A R K E T S 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) 7 FHLBB series3 8 HUD series4 118.1 86.2 75.2 26.6 2.48 9.82 137.0 100.5 75.2 27.8 2.26 8.94 150.0 110.5 75.5 28.0 2.19 8.81 169.2 124.5 75.0 28.4 1.70 9.88 151.8 112.3 75.3 28.3 2.12 9.82 150.5 111.0 75.2 27.8 1.91 10.09 174.5 125.3 73.8 28.6 2.42 10.06 160.8 119.4 75.6 28.3 2.31 9.83 160.6 118.6 75.3 28.5 2.13 9.86 n.a. n.a. n.a. n.a. n.a. n.a. 10.26 10.07 9.31 10.17 9.18 10.30 10.17 10.84 10.18 10.43 10.42 10.04 10.48 9.70 10.22 10.05 10.23 10.04 n.a. 9.79 9.91 9.30 10.16 9.43 10.49 9.83 10.88 10.36 10.55 10.11 10.08 9.75 9.61 9.55 9.95 9.48 9.94 9.47 9.73 9.21 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10 GNMA securities6 Activity in secondary markets F E D E R A L N A T I O N A L M O R T G A G E ASSOCIATION Mortgage holdings (end of period) 11 Total 12 FHA/VA-insured 13 Conventional 98,048 29,683 68,365 95,030 21,660 73,370 101,329 19,762 81,567 102,191 19,607 82,584 102,564 19,612 82,952 103,309 19,586 83,723 104,421 19,630 84,791 105,896 19,589 86,307 107,052 19,608 87,444 108,180 19,843 88,337 Mortgage transactions (during period) 14 Purchases 30,826 20,531 23,110 1,163 1,419 1,862 2,091 2,724 2,223 2,267 32,987 3,386 25,415 4,886 23,435 2,148 1,118 4,661 1,626 4,673 2,573 5,236 2,513 5,648 2,842 5,755 2,328 5,865 2,963 6,548 13,517 746 12,771 12,802 686 12,116 15,105 620 14,485 18,918 599 18,320 19,443 586 18,857 20,121 585 19,535 20,533 585 19,948 21,024 589 20,435 n.a. n.a. n.a. n.a. n.a. n.a. Mortgage transactions (during period) 20 Purchases 21 Sales 103,474 100,236 76,845 75,082 44,077 39,780 5,861 5,554 5,141 4,474 7,392 6,551 5,720 5,180 7,283 6,650' n.a. n.a. n.a. n.a. Mortgage commitments9 22 Contracted (during period) 110,855 71,467 66,026 4,196 5,186 7,948 6,608 5,705 n.a. n.a. 7 Mortgage commitments 15 Contracted (during period) 16 Outstanding (end of period) F E D E R A L H O M E L O A N M O R T G A G E CORPORATION Mortgage holdings (end of periodf 17 Total 18 FHA/VA 19 Conventional 1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups; compiled by the Federal Home Loan Bank Board in cooperation with the Federal Deposit Insurance Corporation. 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the seller) to obtain a loan. 3. Average effective interest rates on loans closed, assuming prepayment at the end of 10 years. 4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing Administration-insured first mortgages for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Large monthly movements in average yields may reflect market adjustments to changes in maximum permissable contract rates. 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 1.54 DomesticNonfinancialStatistics • January 1990 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1988 Type of holder, and type of property 1986 1987 1989 1988 Q2 Q3 Q4 Q1 Q2P 1 All holders 2,618,324 2,977,293 3,268,285 3,120,536 3,189,132 3,268,285 3,328,824 3,391,259 2 1- to 4-family 3 Multifamily 4 Commercial 5 1,719,673 247,831 555,039 95,781 1,959,607 273,954 654,863 88,869 2,189,475 290,355 701,652 86,803 2,070,829 280,239 681,660 87,808 2,134,225 284,675 683,207 87,025 2,189,475 290,355 701,652 86,803 2,230,006 296,139 716,695 85,984 2,281,317 297,860 725,341 86,741 1,507,944 502,534 235,814 31,173 222,799 12,748 1,704,560 591,369 276,270 33,330 267,340 14,429 1,874,967 669,160 314,283 34,131 305,242 15,504 1,791,714 629,617 296,265 34,225 283,942 15,185 1,833,800 650,799 307,041 33,960 294,398 15,400 1,874,967 669,160 314,283 34,131 305,242 15,504 1,905,052 688,662 324,681 34,172 313,941 15,868 1,932,154 715,049 338,872 34,954 324,878 16,345 777,967 559,067 97,059 121,236 605 193,842 12,827 20,952 149,111 10,952 33,601 860,467 602,408 106,359 150,943 929,647 678,263 111,302 139,416 898,742 638,638 107,482 151,870 914,280 665,294 109,287 139,029 929,647 678,263 111,302 139,416 936,091 682,658 112,507 140,255 933,694 684,828 110,009 138,201 212,375 13,226 22,524 166,722 9,903 40,349 232,639 15,284 23,562 184,124 9,669 43,521 220,870 14,172 23,021 174,086 9,591 42,485 225,627 14,917 23,139 178,166 9,405 43,094 232,639 15,284 23,562 184,124 9,669 43,521 234,910 12,690 24,636 188,073 9,511 45,389 236,160 12,745 25,103 188,756 9,556 47,251 203,800 889 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 10,235 200,570 26 26 198,027 64 51 13 41,836 18,268 8,349 5,300 9,919 200,570 26 26 199,847 26 26 201,909 24 24 42,018 18,347 8,513 5,343 9,815 199,474 42 24 18 42,767 18,248 8,213 6,288 10,018 42,018 18,347 8,513 5,343 9,815 41,780 18,347 8,615 5,101 9,717 40,711 18,391 8,778 3,885 9,657 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 96,649 89,666 6,983 34,131 2,008 32,123 12,872 11,430 1,442 5,973 2,672 3,301 103,013 95,833 7,180 32,115 1,890 30,225 17,425 15,077 2,348 5,673 2,564 3,109 102,368 95,404 6,964 33,048 1,945 31,103 15,576 13,631 1,945 5,666 2,432 3,234 102,453 95,417 7,036 32,566 1,917 30,649 15,442 13,322 2,120 5,973 2,672 3,301 103,013 95,833 7,180 32,115 1,890 30,225 17,425 15,077 2,348 6,075 2,550 3,525 101,991 94,727 7,264 31,261 1,839 29,422 18,714 16,192 2,522 6,424 2,827 3,597 103,309 95,714 7,595 31,467 1,851 29,616 19,974 17,305 2,669 565,428 262,697 256,920 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 1,972 245 121 810,887 340,527 331,257 9,270 226,406 219,988 6,418 178,250 172,331 5,919 104 26 754,045 322,616 314,728 7,888 216,155 209,702 6,453 157,438 153,253 4,185 106 23 782,802 333,177 324,573 8,604 220,684 214,195 6,489 167,170 162,228 4,942 106 27 810,887 340,527 331,257 9,270 226,406 219,988 6,418 178,250 172,331 5,919 104 26 839,684 348,622 337,563 11,059 234,695 228,389 6,306 188,071 181,352 6,719 96 24 861,827 353,154 341,951 11,203 242,789 236,404 6,385 196,501 188,774 7,727 85 23 132 74 63 61 38 40 41 42 38 41 38 40 34 38 26 36 341,152 197,868 66,940 53,315 23,029 361,715 201,704 75,458 63,192 21,361 381,861 215,077 78,411 67,489 20,884 375,303 212,017 76,736 65,433 21,117 374,503 209,784 77,502 66,276 20,941 381,861 215,077 78,411 67,489 20,884 384,241 215,379 78,814 69,291 20,757 395,369 225,059 79,840 69,595 20,875 6 Selected financial institutions 7 Commercial banks 2 8 1- to 4-family 9 Multifamily 10 Commercial 11 Farm 12 13 14 IS 16 17 18 19 20 21 22 Savings institutions3 1- to 4-family Multifamily Commercial Life insurance companies 1- to 4-family Multifamily Commercial Farm Finance companies4 23 Federal and related agencies 24 Government National Mortgage Association 1- to 4-family 25 76 Multifamily 27 Farmers Home Administration 28 1- to 4-family 29 Multifamily 30 Commercial 31 Farm 32 33 34 35 36 37 38 39 40 41 42 43 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 44 Mortgage pools or trusts 6 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 Administration 55 1- to 4-family S6 57 Commercial Farm 58 59 Individuals and others 60 1- to 4-family 61 Multifamily 62 Commercial 63 Farm 7 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. Includes private pools which are not shown as a separate line item. 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 1989 Holder, and type of credit 1987 1988 Jan. Feb. Mar. Apr. May June July Aug/ Sept. Amounts outstanding (end of period) 607,721 659,507 682,020 687,397 691,162 693,911 698,132 700,849 700,344 703,001 703,607 By major holder Commercial banks , Finance companies Credit unions Retailers Savings institutions Gasoline companies Pools of securitized assets 4 282,910 140,281 80,087 40,975 59,851 3,618 n.a. 318,925 145,180 86,118 43,498 62,099 3,687 n.a. 316,797 141,795 87,093 40,986 62,867 3,655 28,827 318,423 143,419 87,813 41,052 63,109 3,677 29,903 318,242 143,070 88,514 41,300 62,735 3,682 33,619 320,458 144,378 89,330 41,301 61,919 3,787 32,737 323,363 145,523 89,890 41,323 61,311 3,897 32,826 324,438 146,055 90,073 41,649 59,920 4,017 34,696 323,621 145,488 89,852 41,798 60,092 3,936 35,557 326,135 144,386 90,016 41,989 59,229 3,976 37,270 327,399 144,188 90,039 42,221 58,900 3,886 36,974 By major type of credit 9 Automobile 10 Commercial banks 11 Credit unions.... D 1? Finance companies 13 Savings institutions 14 Pools of securitized assets 4 265,976 109,201 40,351 98,195 18,228 n.a. 281,174 123,259 41,326 97,204 19,385 n.a. 286,382 122,160 41,707 87,968 19,506 15,042 288,767 122,983 41,964 88,789 19,464 15,568 288,850 123,062 42,211 89,567 19,231 14,779 289,654 123,878 42,510 90,268 18,866 14,132 290,741 125,118 42,687 90,976 18,566 13,395 290,192 125,592 42,684 91,184 18,032 12,700 288,526 124,881 42,624 90,213 17,972 12,835 288,533 126,597 42,747 89,439 17,603 12,147 287,691 126,921 42,803 88,317 17,695 11,955 15 Revolving 16 Commercial banks 17 Retailers 18 Gasoline companies 19 Savings institutions 70 Credit unions 21 Pools of securitized assets 4 153,884 99,119 36,389 3,618 10,367 4,391 n.a. 174,792 117,572 38,692 3,687 10,151 4,691 n.a. 176,716 111,133 36,176 3,655 10,479 4,785 10,489 178,570 111,706 36,257 3,677 10,722 4,866 11,342 182,831 112,553 36,489 3,682 10,860 4,947 14,299 184,500 114,130 36,497 3,787 10,918 5,035 14,134 186,502 115,407 36,504 3,897 11,008 5,109 14,578 189,622 115,561 36,814 4,017 10,951 5,187 17,117 191,028 115,967 36,963 3,936 11,176 n.a. 17,795 194,398 117,012 37,134 3,976 11,206 n.a. 19,827 195,153 117,894 37,355 3,886 11,000 n.a. 19,731 26,387 9,220 7,762 9,406 25,744 8,974 7,186 9,583 26,036 8,974 7,376 9,687 25,992 8,974 7,308 9,710 24,168 8,844 5,687 9,637 23,993 8,836 5,659 9,498 23,952 8,878 5,684 9,390 23,685 8,847 5,674 9,163 23,630 8,830 5,624 9,176 22,938 8,808 5,100 9,030 22,846 8,793 5,087 8,966 161,475 65,370 34,324 35,344 4,586 21,850 n.a. 177,798 69,120 40,790 40,102 4,807 22,981 n.a. 192,886 74,532 46,451 40,601 4,809 23,196 3,296 194,068 74,760 47,322 40,983 4,795 23,214 2,993 195,314 73,783 47,816 41,357 4,811 23,006 4,541 195,763 73,614 48,451 41,785 4,804 22,638 4,471 196,936 73,960 48,863 42,094 4,819 22,347 4,853 197,349 74,438 49,197 42,228 4,834 21,773 4,879 197,161 73,944 49,650 42,036 4,835 21,769 4,927 197,132 73,718 49,847 42,025 4,855 21,390 5,296 197,916 73,791 50,784 41,949 4,866 21,239 5,288 1 Total ? 3 4 5 6 7 8 ?? Mobile home 73 Commercial banks 74 Finance companies 25 Savings institutions 76 Other 77 Commercial banks 78 Finance companies 79 Credit unions 30 Retailers 31 Savings institutions 32 Pools of securitized assets 4 Net change (during period) 35,674 51,786 22,513 5,376 3,765 2,749 4,221 2,717 -505 2,657 606 By major holder Commercial banks Finance companies Credit unions Retailers3 Savings institutions Gasoline companies Pools of securitized assets 4 19,884 6,349 3,853 1,568 3,689 332 n.a. 36,015 4,899 6,031 2,523 2,248 69 n.a. -2,128 -3,385 975 -2,512 768 -32 n.a. 1,626 1,624 720 67 242 22 1,076 -181 -349 701 247 -375 6 3,716 2,216 1,309 815 2 -815 104 -882 2,904 1,145 560 21 -609 110 89 1,076 532 184 326 -1,390 120 1,870 -817 -567 -222 149 172 -81 861 2,514 -1,102 164 192 -863 39 1,713 1,264 -198 23 231 -329 -89 -296 By major type of credit 41 Automobile 42 Commercial banks 43 Credit unions 44 Finance companies 45 Savings institutions 46 Pools of securitized assets 4 18,663 7,919 1,916 5,639 3,188 n.a. 15,198 14,058 975 -991 1,157 n.a. 5,208 -1,099 381 -9,236 121 n.a. 2,385 823 257 821 -42 526 82 79 247 778 -233 -789 804 816 300 701 -366 -647 1,087 1,239 177 708 -300 -737 -549 474 -3 208 -533 -695 -1,667 -711 -60 -970 -61 135 7 1,716 123 -775 -369 -688 -842 324 56 -1,122 92 -192 47 Revolving 48 Commercial banks 49 Retailers 50 Gasoline companies 51 Savings institutions 52 Credit unions 4 53 Pools of securitized assets 16,871 12,188 1,866 332 1,771 715 n.a. 20,908 18,453 2,303 69 -216 300 n.a. 1,924 -6,439 -2,516 -32 328 94 n.a. 1,854 573 81 22 243 81 853 4,261 848 232 6 138 81 2,957 1,670 1,576 8 104 58 88 -165 2,002 1,277 7 110 90 74 444 3,120 154 310 120 -57 78 2,539 1,406 405 149 -81 225 n.a. 678 3,370 1,045 171 39 30 n.a. 2,032 756 882 221 -89 -206 n.a. -96 54 Mobile home 55 Commercial banks 56 Finance companies 57 Savings institutions -968 192 -1,052 -107 -643 -246 -576 177 292 0 190 104 -44 1 -68 23 -1,824 -131 -1,621 -72 -174 -7 -28 -140 -41 42 25 -108 -267 -31 -10 -227 -56 -18 -50 12 -692 -22 -524 -146 -91 -15 -13 -64 58 Other 59 Commercial banks 60 Finance companies 61 Credit unions 62 Retailers 63 Savings institutions 64 Pools of securitized assets 4 1,108 -415 1,761 1,221 -297 -1,162 n.a. 16,323 3,750 6,466 4,758 221 1,131 n.a. 15,088 5,412 5,661 499 2 215 n.a. 1,182 229 871 382 -14 18 -303 1,246 -977 494 374 16 -208 1,548 449 -169 635 428 -7 -368 -70 1,173 346 412 309 15 -291 382 413 478 334 133 16 -574 26 -189 -494 453 -191 0 -5 48 -29 -226 197 -11 21 -379 369 785 73 937 -77 11 -151 -8 33 Total 34 35 36 37 38 39 40 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. 4. Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator. A40 DomesticNonfinancialStatistics • January 1990 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1989 Item 1986 1987 1988 Mar. Apr. May June July Aug. Sept. INTEREST RATES 1 2 3 4 6 Commercial banks 2 48-month new c a r 24-month personal 120-month mobile home Credit card Auto finance companies New car Used car 11.33 14.82 13.99 18.26 10.45 14.22 13.38 17.92 10.85 14.68 13.54 17.78 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12.44 15.65 14.35 18.11 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12.13 15.45 14.13 18.07 n.a. n.a. n.a. n.a. 9.44 15.95 10.73 14.60 12.60 15.11 13.07 16.12 12.10 16.39 11.80 16.45 11.96 16.45 11.94 16.37 12.22 16.31 12.42 16.22 50.0 42.6 53.5 45.2 56.2 46.7 55.4 47.1 53.4 47.8 52.7 46.6 53.0 46.5 52.9 46.4 52.9 46.2 53.1 45.8 91 97 93 98 94 98 92 97 91 97 91 97 91 97 91 97 90 96 88 96 10,665 6,555 11,203 7,420 11,663 7,824 11,867 7,958 11,886 7,855 11,973 7,908 12,065 7,921 12,108 7,988 11,949 7,874 11,841 7,856 O T H E R 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. 1987 Transaction category, sector 1984 1985 1986 1989 1988 1987 Q4 Ql Q2 Q3 Q4 Ql Q2' Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 750.7r 846.3 831.1r 693.2' 767.0r 764.9 728.2' 827.2' 754.4r 758.3r 792.2' 658.9 By sector and instrument 2 U.S. government Treasury securities 4 Agency issues and mortgages 198.8 199.0 -.2 223.6 223.7 -.1 215.0 214.7 .4 144.9 143.4 1.5 157.5 140.0 17.4 175.1 170.2 5.0 211.6 212.0 -.5 113.7 106.0 7.7 162.5 141.6 20.9 142.1 100.5 41.6 199.9 201.1 -1.2 70.9 65.8 5.1 5 Private domestic nonfinancial sectors 6 Debt capital instruments Tax-exempt obligations 7 8 Corporate bonds 9 Mortgages 10 Home mortgages Multifamily residential 11 17 Commercial 13 Farm 551.9 320.0 51^ 46.1 222.8 136.7 25.2 62.2 -1.2 622.7 451.4 135.4' 73.8 242.2 156.8 29.8 62.2 -6.6 616.1 460.3 n.r 121.3 316.3 218.7 33.5 73.6 -9.5 548.3 458.5 34.1' 99.9 324.5 234.9 24.4 71.6 -6.4 609.6' 462.6 34.0' 120.9 307.7 229.1 18.9 61.7 -2.1 589.8 417.8 25.0 81.6 311.2 225.5 14.9 73.4 -2.6 516.6' 386.5 29.1 118.8 238.7 170.7 24.2 48.5 -4.7 713.4' 561.0 37.9 143.9 379.2 300.7 14.7 65.4 -1.6 592.V 463.9 34.8 115.9 313.2 231.0 19.5 65.4 -2.6 616.3' 438.9 34.3 104.9 299.7 214.0 17.3 67.7 .7 592.3' 427.8' 29.3' 111.6 286.9 205.2 27.2 58.8 -4.4 588.0 394.1 20.6 138.5 234.9 186.1 8.1 38.7 2.1 14 15 16 17 18 Other debt instruments Consumer credit Bank loans n.e.c Open market paper Other 231.9 81.6 66.3 21.7 62.2 171.3 82.5 38.6 14.6 35.6 155.8 58.0 66.7 -9.3 40.5 89.7 32.9 10.8 2.3 43.8 147.0' 51.1 38.4 11.6 45^ 172.0 54.1 71.9 -10.8 56.7 130.1' 43.7 20.8 2.4 63.2' 152.4' 51.9 58.8 6.8 34.8' 128.1' 35.5 7.3 17.1 68.1' 177.3' 73.1 66.6 20.0 17.6' 164.5' 34.8 23.1' 44.1 62.5' 193.9 46.0 29.9 44.9 73.1 19 20 71 ?? 73 24 25 By borrowing sector State and local governments Households Nonfinancial business Farm Nonfarm noncorporate Corporate 551.9 28.1 231.5 292.3 -.4 123.2 169.6 622.7 90.9 284.6 247.2 -14.5 129.3 132.4 616.1 36.2 289.2 290.7 -16.3 103.2 203.7 548.3 33.6 271.9 242.8 -10.6 107.9 145.5 609.6' 29.8 287.9' 291.8 -7.5 91.9 207.5 589.8 24.3 278.0 287.4 .4 115.7 171.4 516.6' 23.4 230.2' 263.0 -12.7 85.2 190.5 713.4' 37.0 346.7' 329.7 -3.3 83.6 249.4 592.0' 28.1 291.6' 272.3 -2.2 100.5 174.0 616.3' 30.6 283.3' 302.4 -11.8 98.2 216.0 592.3' 29.7 263.1' 299.4' -2.2' 91.1 210.6' 588.0 27.7 227.1 333.3 .3 70.0 263.0 26 Foreign net borrowing in United States 77 Bonds 28 Bank loans n.e.c 29 Open market paper 30 U.S. government loans 8.4 3.8 -6.6 6.2 5.0 1.2 3.8 -2.8 6.2 -6.0 9.7r 3.1 -1.0 11.5 -3.9 4.9' 7.4 -3.6 2.1 -1.0 6.¥ 6.9 -1.8 9.6 -7.8' 13.9 21.4 -4.3 -1.6 -1.6 4.8 14.2 1.7 .7 -11.8 5.4 2.6 -3.3 6.5 -.4 4.1 5.9 .0 10.3 -12.1 13.3' 5.1 -5.7 21.0 -7.1' -1.1' 3.2 4.9 12.1' -21.4' -3.9 11.1 1.7 -8.1 -8.6 31 Total domestic plus foreign 759.1 847.5 840.9 698.1 773.9' 778.8 733.0r 832.6' 758.5' 771.7' 791.1' 655.0 Financial sectors 32 Total net borrowing by financial sectors 150.7 201.3 318.9 315.0 264.2 240.1 242.5 263.9 232.1 318.3 394.4' 123.4 By instrument U.S. government related Sponsored credit agency securities Mortgage pool securities Loans from U.S. government 74.9 30.4 44.4 .0 101.5 20.6 79.9 1.1 187.9 15.2 173.1 -.4 185.8 30.2 156.4 -.8 137.5 44.9 92.6 .0 161.5 62.8 98.8 .0 128.8 59.5 69.3 .0 104.3 11.1 93.1 .0 144.4 46.5 97.8 .0 172.5 62.3 110.1 .0 216.1 84.9 131.2 .0 105.8 12.5 93.3 .0 75.9r 34.3 .4 1.4 24.0 15.7 99.7r 50.9 .1 2.6 32.0 14.2 131.C 82.9 .1 4.0 24.2 19.8 129.2' 78.9 .4 -3.3 28.8 24.4 126.7' 51.7 .3 1.4 53.6 19.7 78.6 53.4 .8 -11.1 -4.2 39.8 113.7 60.0 -.1 5.9 38.5 9.4 159.6 71.1 .1 5.7 70.5 12.3 87.7 32.5 -.1 -5.6 35.1 25.8 145.8 43.0 1.2 -.3 70.4 31.4 178.3' 52.7' .3 3.0 53.2' 69.1 17.6 31.4 .0 .3 2.8 -16.9 150.7 201.3 318.9 315.0 264.2 240.1 242.5 263.9 232.1 318.3 394.4' 123.4 30.4 44.4 75.9r 7.3 16.1 17.2 1.2 24.0 .8 9.3 21.7 79.9 99.7' -4.9 16.6 17.3 1.5 57.2 .5 11.5 14.9 173.1 131.0' -3.6 15.2 20.9 4.2 54.5 1.0 39.0 29.5 156.4 129.2' 7.1 14.3 19.6 8.1 40.3 .8 39.1 44.9 92.6 126.7' -3.9 5.2 19.9 1.9 67.0 4.1 32.5 62.8 98.8 78.6 11.2 -9.9 28.3 12.6 28.3 2.2 6.0 59.5 69.3 113.7 -16.7 -8.8 10.0 2.3 78.4 5.4 43.0 11.1 93.1 159.6 -1.6 22.4 19.1 1.1 85.4 1.7 31.5 46.5 97.8 87.7 -.9 6.1 24.1 .5 40.7 -5.9 23.1 62.3 110.1 145.8 3.7 .8 26.3 3.8 63.6 15.0 32.5 84.9 131.2 178.3' -13.4 6.4 71.3 -2.8 78.4' -.9 39.3' 12.5 93.3 17.6 -.9 6.5 -16.2 -1.1 32.8 -2.2 -1.4 33 34 35 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 5? 53 Sponsored credit agencies Mortgage pools Private financial sectors Commercial banks Bank affiliates Savings and loan associations Mutual savings banks Finance companies REITs SCO Issuers A42 DomesticNonfinancialStatistics • January 1990 1.57—Continued 1987 Transaction category, sector 1984 1985 1986 1987 1989 1988 1988 Q4 Q1 Q2 Q3 Q4 Q1 Q2 All sectors 54 Total net borrowing 909.8 55 56 57 58 59 60 61 62 273.8 si.o' 84.3 223.1 81.6 61.1 51.9 82.9 U.S. government securities State and local obligations Corporate and foreign bonds Mortgages Consumer credit Bank loans n.e.c Open market paper Other loans 63 MEMO: U.S. government, cash balance Totals net of changes in U.S. government cash balances 64 Net borrowing by domestic nonfinancial 65 Net borrowing by U.S. government 1,048.8 324.2 135.4' 128.4 242.2 82.5 38.3 52.8 45.0 1,159.8 403.4 1,019.0 331.5 34. V 186.3 324.9 32.9 3.8 33.2 66.5 294.9 34.0' 179.5 308.0 51.1 38.0 74.9 57.8' 336.7 25.0 156.3 312.0 54.1 56.6 -16.6 94.9 340.4 29.1 193.0 238.6 43.7 28.3 41.6 60.8' 1,013.2 22.1' 207.3 316.4 58.0 69.7 26.4 56.1 r 1,038.l 975.5 r 1,096.5' 6.3 14.4 .0 -7.9 10.4 -38.9 47.6 744.4 192.5 831.9 209.3 831.2 215.0 701.1 152.8 756.6' 147.1 803.8 214.0 680.6' 164.0 990.6' 1,089.9' 1,185.4' 778.4 314.6 34.3 153.0 300.8 73.1 60.7 111.5 42.0' 416.0 29.3' 167.5' 287.2 34.8 31.1' 109.4 110.2' 176.7 20.6 181.1 234.9 46.0 31.9 39.6 47.5 -17.9 -22.5 43.7 776.3' 160.0 814.7' 222.4 218.0 37.9 217.6 379.3 51.9 61.2 83.9 46.8' 306.8 34.8 154.3 313.1 35.5 1.7 62.5 81.8' 1.2 10.6 825.9' 112.5 743.8' 151.8 615.2 27.2 External corporate equity funds raised in United States 66 Total net share issues -36.0 20.1 90.5r 14.3' 67 68 69 /0 71 29.3 -65.3 -74.5 8.2 .9 84.4 -64.3 -81.5 13.5 3.7 159.0r -68.5 r -80.8 11.1 1.2 71.6r Mutual funds All other Nonfinancial corporations Financial corporations Foreign shares purchased in United States -5i.y -76.5 21.4 -2.1 -.7' -117.2' -130.5 12.4 .9 -90.4 -101.0 -133.7 -73.5 - 1 6 3 . 5 -163.5' 1.8 -92.2 -88.0 10.0 -14.1 -9.5 -6.6 - 9 1 . 5 -127.0 - 9 5 . 0 -140.0 2.4 19.0 1.1 -6.0 1.5 -75.0 -92.0 14.6 2.4 3.6 24.0 11.9 -175.4 -167.1' -72.7 -195.0 -180.0 -105.0 9.4' 17.1 13.5 6.1 3.6 15.2 -48.7 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 1984 1985' 1987' 1986' 1988 1989 1988' Q4 Ql Q2 Q3 Q4 Ql' Q2' 658.9 750.7r 846.3 831.1 693.2 767.0 764.9 728.2' 827.2' 754.4' 758.3' 792.2 157.6 38.9 56.5 15.7 46.6 202.0 45.9 94.6 14.2 47.3 314.0 69.4 170.1 19.8 54.7 262.8 70.1 153.2 24.4 15.1 237.6 85.0 104.0 19.7 28.8 278.0 123.3 105.9 39.8 9.0 278.6 153.2 88.9 9.4 27.1 185.5 43.3 107.9 12.3 22.1 196.9 24.1 98.1 25.8 49.0 289.3' 119.6 121.2 31.4 17.1' 26.7 348.7 97.6 -102.4 106.6 133.3 69.1 -16.9 39.4 48.7 17.1 74.3 8.4 57.9 17.8 103.5 18.4 62.3 9.7 187.2 19.4 97.8 -7.9 183.4 24.7 62.7 -4.9 129.6 10.5 102.3 6.4 160.0 22.8 88.8 -7.0 114.3 2.7 168.6 -7.6 105.7 5.0 82.5 4.3 130.1 15.5 47.0 -9.3' 168.5 18.9 111.2 2.8 221.4 5.2 119.3 3.1 15.6 -3.9 11.9 74.9 8.4 101.5 1.2 187.9 9.7 185.8 4.9 137.5 6.9 161.5 13.9 128.8 4.8 104.3 5.4 144.4 4.1 172.5 13.3' 216.1 -1.1 105.8 -3.9 Private domestic funds advanced 13 Total net advances 14 U.S. government securities 15 State and local obligations 16 Corporate and foreign bonds 17 Residential mortgages 18 Other mortgages and loans 19 LESS: Federal Home Loan Bank advances 676.3' 234.9 51.0' 35.1 105.3 265.6' 15.7 747.0 278.2 135.4 40.8 91.8 214.8 14.2 714.8 333.9 22.7 84.2 82.0 211.8 19.8 621.1 261.4 34.1 87.5 106.1 156.5 24.4 673.8 209.9 34.0 104.4 144.0 201.2 19.7 662.3 213.3 25.0 101.1 134.5 228.2 39.8 583.2' 187.2 29.1 126.5 106.0 143.8' 9.4 751.3' 174.7 37.9 126.2 207.5 217.2' 12.3 705.9' 282.8 34.8 91.7 152.3 170.1' 25.8 654.8' 195.0 34.3 73.0 110.1 273.7' 31.4 658.4 318.4 29.3 89.4 99.2 191.3 69.1 734.1 279.1 20.6 132.3 87.5 197.7 -16.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 21 Commercial banking 22 Savings institutions 23 Insurance and pension funds 24 Other finance 585.8' 169.2r 154.7' 121.8 140.1 579.9 186.0 87.9 154.4 151.6 744.0 197.5 107.6 174.6 264.2 560.8 136.8 136.8 210.9 76.3 558.2 155.3 120.5 194.9 87.4 617.0 278.6 158.2 149.6 30.5 617.4' 87.9 96.0 257.4' 176.1 553.7' 194.5 134.9' 182.7' 41.6 427.5' 118.4 157.0' 150.5' 1.7 634.1' 220.5 94.2 189.1' 130.3 568.6 120.6 62.2 228.3 157.6 544.3 158.6 -73.1 182.5 276.2 25 Sources of funds 26 Private domestic deposits and RPs 27 Credit market borrowing 28 Other sources 29 Foreign funds Treasury balances 30 31 Insurance and pension reserves Other, net 32 585.8' 322.6' 15.V 187.3' 8.8 4.0 124.0 50.5' 579.9 214.3 99.7 265.9 19.7 10.3 131.9 104.1 744.0 262.6 131.0 350.4 12.9 1.7 149.3 186.5 560.8 144.1 129.2 287.5 43.7 -5.8 176.1 73.6 558.2 219.2 126.7 212.3 9.3 7.3 186.8 8.8 617.0 329.6 78.6 208.8 8.0 -27.8 171.1 57.4 617.4' 305.5' 113.7 198.2' -60.6 44.2 190.1' 24.4' 553.7' 102.0' 159.6 292.1' 94.5 -16.3 184.0' 29.¥ 427.5' 191.9' 87.7 147.9' -42.1 5.6 109.8' 74.5' 634.1' 277.4' 145.8 210.9' 45.5 -4.1 263.3' -93.8' 568.6 166.5 178.3 223.8 -28.4 -21.6 133.0 140.8 544.3 213.4 17.6 313.3 -16.0 26.6 151.5 151.2 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 166.4' 111.4' 27.1' -4.1' 7.8' 24.2 266.8 157.8 37.7 4.2 47.5 19.6 101.8 60.9 -21.7 39.3 5.4 17.9 189.6 100.0 45.6 24.1 6.6 13.3 242.3 149.3 33.9 2.6 37.2 19.3 124.0 85.4 19.7 50.4 -32.8 1.3 79.5' 119.6' 19.7' -39.6' -14.5' -5.8' 357.2' 103.2' 37.2' 61.4' 98.6' 56.8' 366.2' 225.7' 56.4' -5.8' 77.4' 12.5' 166.5' 148.7' 22.3' -5.7' -12.6' 13.9' 268.1 211.1 35.7 -15.4 67.1 -30.3 207.5 123.2 -11.4 32.8 19.5 43.4 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 326.1' 8.6 30.2' 150.7 49.0 82^ 9.8' -5.1 224.6 12.4 41.9 138.5 8.9 7.4 17.7 -2.1 283.0 14.4 95.0 120.6 38.3 -11.4 20.2 5.9 160.2 19.0 -3.0 76.0 27.2 26.7 17.2 -2.8 221.8 14.7 12.3 122.2 22.8 40.8 21.2 -12.1 364.0 31.9 62.3 141.2 53.6 85.4 -13.1 2.5 313.5' 10.7 3.6' 199.5 57.6 16.9' 27.9 -2.7 110.0' 13.8 -30.5' 130.5 -21.0 -3.5' 26.5 -5.9 215.7' 29.3 -21.4' 72.7 -3.5 137.0' 7.0 -5.5 248.2' 5.1 97.3' 86.0 58.1 12.7' 23.3 -34.4 211.2 19.3 -54.5 26.4 51.1 111.9 31.6 25.5 231.1 12.6 -83.0 117.4 111.8 39.8 27.5 5.1 47 Total of credit market instruments, deposits, and currency 492.5' 491.4 384.8 349.8 464.2 488.0 393.0' 467.2' ssi^ 414.7' 479.4 438.6 2.1 8.7' 66.7 2.4 7.8 82.0 3.7 10.4 110.7 3.8 9.0 106.4 3.1 8.3 111.7 35.7 93.2 96.8 38.0' 105.9' 108.1 22.3 73.7' 177.0 26.0 60.6' 4.9 37.5 96.8' 156.7 44.1 86.4 90.9 4.1 74.1 -4.1 -73.5 -163.5 -163.5 -48.7 1.5 11.9 3.6 -75.0 -175.4 -167.1 25.5' 30.1' -6.5 -99.1' -193.6' -157.0 24.0 -72.7 -6.5 -42.2 2 3 4 5 6 By public agencies and foreign Total net advances U.S. government securities Residential mortgages FHLB advances to thrifts 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 48 49 50 Public holdings as percent of total Private financial intermediation (in percent) Total foreign funds MEMO: Corporate equities not included above 51 Total net issues -36.0 20.1 90.5 57. Mutual fund shares 53 Other equities 54 Acquisitions by financial institutions 55 Other net purchases 29.3 -65.3 15.8 -51.8 84.4 -64.3 45.6 -25.5 159.0 -68.5 53.7 36.8 N O T E S BY LINE N U M B E R . 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. 14.3 -117.9 71.6 -57.3 21.4 -7.1 -.7 -117.2 5.4 -123.3 -90.4 -101.0 -133.7 1.8 -92.2 -19.5 -70.9 -9.5 -6.6 -91.5 -127.0 -34.4' .2' -66.5' -m.y 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 20Aine 13. 50. Sum of lines 10 and 29. 51. 53. Includes issues by financial institutions. NOTE. Full statements for sectors and transaction types in flows and in amounts outstanding may be obtained from Flow of Funds Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. A44 1.59 DomesticNonfinancialStatistics • January 1990 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1987 Transaction category, sector 1983 1984 1988 1989 1985 Q4 Q2 Ql Q3 Q4 Ql' Q2' Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 5,202.6 5,951.8 6,795.1 7,631.2 8,335.0 S ^ . O ' 8,686.9' 8,875.4' 9,105.6' 9,258.7 9,428.4 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 1,960.3 1,955.2 5.2 2,003.2 1,998.1 5.0 2,022.3 2,015.3 7.0 2,063.9 2,051.7 12.2 2,117.8 2,095.2 22.6 2,155.7 2,133.4 22.3 2,165.7 2,142.1 23.6 5 Private domestic nonfinancial sectors 6 Debt capital instruments / Tax-exempt obligations 8 Corporate bonds 9 Mortgages 10 Home mortgages 11 Multifamily residential 12 Commercial 13 Farm 4,024.6 2,715.1 469.0 423.0 1,823.1 1,200.2 158.8 350.4 113.7 4,575.1 3,038.0 520.0 469.2 2,048.8 1,336.2 183.6 416.5 112.4 5,194.7 3,485.5 655.5 542.9 2,287.1 1,490.2 213.0 478.1 105.9 5,815.8 3,957.5 679.1 664.2 2,614.2 1,720.8 246.2 551.4 95.8 6,374.7 4,428.0 713.2 764.1 2,950.7 1,943.1 270.0 648.7 88.9 6,473.8r 4,511.0 718.1 793.8 2,999.1 1,978.0 273.0 660.2 88.0 6,664.7' 4,652.6 727.2 829.8 3,095.7 2,055.3 276.6 676.0 87.8 6,811.5' 4,782.0 746.1 858.8 3,177.2 2,118.0 281.0 691.1 87.0 6,987.8' 4,902.1 759.8 885.0 3,257.3 2,174.2 286.8 709.6 86.8 7,103.0 4,979.2 764.7 912.9 3,301.6 2,214.8 292.6 708.2 86.0 7,262.7 5,078.3 769.3 947.5 3,361.6 2,263.4 294.4 717.0 86.7 14 15 16 1/ 18 Other debt instruments Consumer credit Bank loans n.e.c Open market paper Other 1,309.5 437.7 491.1 36.8 344.0 1,537.1 519.3 553.1 58.5 406.2 1,709.3 601.8 592.7 72.2 442.6 1,858.4 659.8 656.1 62.9 479.6 1,946.7 692.7 664.3 73.8 516.0 l,962.8r 688.9 668.3 73.5 532. r 2,012.0' 705.8 687.2 77.8 541.2' 2,029.4' 721.2 687.7 80.3 540.2' 2,085.7r 743.7 702.6 85.4 554.0' 2,123.8 745.0 717.6 96.1 565.1 2,184.3 761.0 729.8 110.1 583.5 19 20 21 22 23 24 23 By borrowing sector State and local governments Households Nonfinancial business Farm Nonfarm noncorporate Corporate 4,024.6 355.0 1,791.6 1,878.0 188.4 645.8 1,043.8 4,575.1 383.0 2,018.2 2,173.9 187.9 769.0 1,216.9 5,194.7 473.9 2,295.5 2,425.4 173.4 898.3 1,353.6 5,815.8 510.1 2,591.8 2,714.0 156.6 1,001.6 1,555.8 6,374.7 543.7 2,864.5 2,966.5 145.5 1,109.4 1,711.6 6,473.8' 547.1 2,900.7' 3,026.0 141.3 1,131.7 1,753.0 6,664.7' 556.0 2,990.2' 3,118.5 143.9 1,151.9 1,822.7 6,811.5' 565.7 3,068.3' 3,177.5 143.6 1,172.6 1,861.3 6,987.8' 573.5 3,152.0' 3,262.4' 137.6 1,205.3 1,919.5' 7,103.0 578.5 3,205.6 3,319.0 135.9 1,229.1 1,954.0 7,262.7 584.8 3,265.5 3,412.3 139.5 1,245.9 2,027.0 225.9 64.2 37.4 21.5 102.8 233.6 68.0 30.8 27.7 107.1 234.7 71.8 27.9 33.9 101.1 236.4 74.9 26.9 37.4 97.1 242.9 82.3 23.3 41.2 96.1 244.6 86.1 22.8 42.5 93.1 245.9 86.0 22.4 44.0 93.5 246.1 87.4 22.7 46.3 89.8 249.6' 89.2 21.5 50.9 88.1' 249.9 90.5 21.6 54.9 83.0 249.0 92.2 22.7 52.7 81.4 5,428.5 6,185.4 7,029.9 7,867.6 8,578.0 8,721.6' 8,932.8' 9,121.5' 9,355.3' 9,508.7 9,677.4 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 859.9 1,010.2 1,213.2 1,563.6 1,885.5 1,926.0 2,000.5 2,058.2 2,149.7 2,258.7 2,298.9 456.7 206.8 244.9 5.0 403.2 118.6 2.1 28.1 195.5 59.0 531.2 237.2 289.0 5.0 479.0 153.0 2.5 29.5 219.5 74.6 632.7 257.8 368.9 6.1 580.5 204.5 2.7 32.1 252.4 88.8 844.2 273.0 565.4 5.7 719.5 287.4 2.7 36.1 284.6 108.6 1,026.5 303.2 718.3 5.0 859.0 366.3 3.1 32.8 323.8 133.1 1,050.6 313.5 732.1 5.0 875.4 380.5 3.1 31.7 330.6 129.5 1,076.9 317.9 754.0 5.0 923.6 397.9 3.1 34.3 353.4 134.8 1,116.3 328.5 782.8 5.0 941.9 406.4 3.1 32.9 358.0 141.6 1,164.0 348.1 810.9 5.0 985.7 418.0 3.4 34.2 377.4 152.8 1,209.0 364.3 839.7 5.0 1,049.7 458.2 3.5 32.2 392.0 163.8 1,235.8 369.0 861.8 5.0 1,063.1 465.8 3.5 33.8 398.3 161.9 43 Total, by sector 859.9 1,010.2 1,213.2 1,563.6 1,885.5 1,926.0 2,000.5 2,058.2 2,149.7 2,258.7 2,298.9 44 43 46 47 48 49 30 31 32 33 211.8 244.9 403.2 76.8 73.5 64.4 1.7 179.0 3.5 4.2 242.2 289.0 479.0 84.1 89.5 81.6 2.9 203.0 4.3 13.5 263.9 368.9 580.5 79.2 106.2 98.9 4.4 261.2 5.6 25.0 308.2 718.3 859.0 82.7 131.1 139.4 16.7 378.8 7.3 103.1 318.5 732.1 875.4 76.4 131.0 135.3 17.1 393.0 8.7 113.9 322.9 754.0 923.6 77.2 136.3 141.9 17.6 419.8 9.1 121.8 333.5 782.8 941.9 76.6 136.3 148.1 18.1 427.7 7.6 127.5 353.1 810.9 985.7 78.8 136.2 159.3 18.6 445.8 11.4 135.7 369.3 839.7 1,049.7 73.3 140.0 170.1 17.8 463.8 11.1 173.5 374.0 861.8 1,063.1 74.5 141.2 167.9 17.7 478.0 10.6 173.1 33 34 33 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 Mutual savings banks Finance companies REITs SCO issuers 278.7 565.4 1 719.5 75.6 116.8 119.8 8.6 328.1 6.5 64.0 All sectors 54 Total credit market debt 6,288.3 7,195.7 8,243.1 9,431.2 10,463.4 10,647.5' 10,933.4' 11,179.7' 11,504.9' 11,767.4 11,976.3 55 56 57 38 39 60 61 62 1,629.4 469.0 605.8 1,825.4 437.7 556.6 253.8 510.7 1,902.8 520.0 690.1 2,051.4 519.3 613.4 305.7 592.9 2,227.0 655.5 819.2 2,289.8 601.8 652.7 358.5 638.6 2,653.8 679.1 1,026.4 2,617.0 659.8 719.1 384.9 691.1 2,981.8 713.2 1,212.7 2,953.8 692.7 720.3 438.8 750.2 3,048.8 718.1 1,260.4 3,002.2 688.9 722.7 446.7 759.7' 3,094.2 727.2 1,313.7 3,098.8 705.8 744.0 475.3 774.5' 3,175.2 746.1 1,352.5 3,180.3 721.2 743.3 484.6 776.6r 3,276.7 759.8 1,392.2 3,260.7 743.7 758.3 513.6 799.8' 3,359.7 764.7 1,461.6 3,305.1 745.0 771.4 543.1 816.8 3,396.5 769.3 1,505.5 3,365.0 761.0 786.2 561.1 831.7 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 Flow of Funds A45 1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER Billions of dollars, except as noted; period-end levels. 1987 Transaction category, or sector 1 Total funds advanced in credit markets to domestic nonfinancial sectors 1983 1984 1985 1989 1988 1986 Q4 Q1 Q2 Q3 Q4' Ql' Q2' 5,202.6 5,951.8 6,795.1 7,631.2 8,335.0 8,477.0R 8,686.9' 8,875.4' 9,105.6 9,258.7 9,428.4 1,100.4 339.0 367.0 59.0 335.4 1,257.7 377.9 423.5 74.6 381.6 1,460.5 423.8 518.2 88.8 429.7 1,794.7 493.2 712.3 108.6 480.5 2,044.9 563.3 862.0 133.1 486.6 2,099.4 595.7 880.6 129.5 493.6 2,151.3 610.1 906.1 134.8 500.3 2,191.8 613.3 934.9 141.6 502.1 2,266.4 648.3 966.0 152.8 499.3 2,332.1 666.2 995.3 163.8 506.9 2,345.1 644.6 1,020.5 161.9 518.1 7 Total held, by type of lender 8 U.S. government 9 Sponsored credit agencies and mortgage pools . . . 10 Monetary authority 11 Foreign 1,100.4 211.4 482.0 159.2 247.7 1,257.7 228.2 556.3 167.6 305.6 1,460.5 246.7 659.8 186.0 367.9 1,794.7 253.3 869.8 205.5 466.1 2,044.9 238.0 1,048.9 230.1 527.9 2,099.4 237.1 1,068.0 224.9 569.5 2,151.3 235.8 1,095.6 229.7 590.2 2,191.8 226.3 1,132.9 230.8 601.9 2,266.4 216.9 1,178.6 240.6 630.3 2,332.1 213.9 1,223.5 235.4 659.3 2,345.1 215.2 1,228.9 238.4 662.6 Agency and foreign debt not in line 1 Sponsored credit agencies and mortgage pools . . . Foreign 456.7 225.9 531.2 233.6 632.7 234.7 844.2 236.4 1,026.5 242.9 1,050.6 244.6 1,076.9 245.9 1,116.3 246.1 1,164.0 249.6 1,209.0 249.9 1,235.8 249.0 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 4,784.8 1,290.4 469.0 441.7 992.2 1,650.5 59.0 5,458.9 1,524.9 520.0 476.8 1,096.5 1,915.3 74.6 6,202.1 1,803.2 655.5 517.6 1,185.1 2,129.7 88.8 6,917.1 2,160.6 679.1 601.3 1,254.7 2,330.0 108.6 7,559.5 2,418.5 713.2 689.6 1,351.1 2,520.1 133.1 7,672.7' 2,453.1 718.1 722.2 1,370.4 2,538.5' 129.5 7,858.4' 2,484.1 727.2 752.9 1,425.9 2,603.3' 134.8 8,045^ 2,561.9 746.1 775.7 1,464.1 2,639.6' 141.6 8,252.8 2,628.4 759.8 794.0 1,494.9 2,728.4 152.8 8,385.5 2,693.5 764.7 817.6 1,512.2 2,761.3 163.8 8,568.1 2,751.9 769.3 849.3 1,537.3 2,822.2 161.9 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 4,115.0 1,622.5 947.4 1,093.5 451.6 4,699.6 1,791.9 1,100.7 1,215.3 591.7 5,283.1 1,978.9 1,191.2 1,369.7 743.4 6,025.7 2,176.3 1,297.9 1,544.3 1,007.1 6,604.6 2,313.1 1,445.5 1,755.2 1,090.7 6,732.0' 2,327.1 1,453.6 l,810.6 r 1,140.7 6,891.0' 2,382.6 1,495.9' 1,859.0' 1,153.5 7,003.5' 2,421.6 1,538.8' 1,899.1' 1,144.0 7,168.1 2,468.4 1,571.3 1,950.2 1,178.1 7,298.7 2,490.9 1,566.7 1,996.7 1,244.4 7,458.7 2,538.2 1,557.3 2,046.5 1,316.7 26 Sources of funds 27 Private domestic deposits and RPs 28 Credit market debt 4,115.0 2,393.2 403.2 4,699.6 2,715.6 479.0 5,283.1 2,930.0 580.5 6,025.7 3,188.4 719.5 6,604.6 3,324.8 859.0 6,732.0' 3,404.2r 875.4 6,891.0' 3,432.6' 923.6 7,003.5' 3,474.2' 941.9 7,168.1 3,554.2 985.7 7,298.7 3,587.8 1,049.7 7,458.7 3,644.5 1,063.1 29 30 31 32 33 1,318.6 -23.0 11.5 1,036.1 294.1 1,504.9 -14.1 15.5 1,160.8 342.6 1,772.7 5.6 25.8 1,289.4 451.8 2,117.9 18.6 27.5 1,427.9 643.9 2,420.8 62.2 21.6 1,597.2 739.6 2,452.4' 45.9 23.5 1,647.9" 735.2' 2,534.8' 62.3 32.6 1,693.8' 746.1' 2,587.4' 51.9 34.2 1,729.2' 772.1' 2,628.1 71.6 29.0 1,771.2 756.4 2,661.1 61.9 13.5 1,802.6 783.0 2,751.0 51.0 34.4 1,833.7 831.9 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 1,073.0 548.5 167.3 37.2 75.7 244.3 1,238.4 659.5 194.2 33.1 83.5 268.0 1,499.5 814.7 231.9 38.0 131.0 283.8 1,610.8 899.1 211.2 77.8 136.4 286.2 1,813.9 992.0 256.8 102.2 160.7 302.3 1,816.1' 1,005.2' 257.6' 97.7' 151.9' 303.7' 1,891.0' 1,022.1' 270.1' 105.7' 179.9' 313.3' 1,984.4' 1,086.1' 289.0' 107.1' 188.7' 313.6' 2,070.5 1,143.5 303.7 100.8 201.0 321.5 2,136.6 1,175.0 307.2 137.0 213.0 304.3 2,172.6 1,196.3 308.2 136.4 221.7 309.9 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 2,569.8 150.9 350.5 1,542.9 169.5 249.5 80.8 25.7 2,895.8 159.6 380.6 1,693.4 218.5 332.5 90.6 20.6 3,120.4 171.9 422.5 1,831.9 227.3 339.9 108.3 18.5 3,399.2 186.3 517.4 1,948.3 265.6 328.5 128.5 24.5 3,553.9 205.4 514.0 2,017.1 292.8 355.2 145.7 23.7 3,628.0' 204.0 495.4' 2,084.9 318.4 353.7' 151.9 19.9 3,662.4' 209.9 510.3' 2,110.9 306.1 349.1' 156.2 19.9 3,704.4' 213.4 496.1' 2,131.1 303.6 384.7' 158.6 16.8 3,785.9 220.1 525.4 2,150.4 315.6 396.0 166.9 11.6 3,822.8 220.7 492.8 2,164.7 340.3 415.9 174.1 14.3 3,887.9 226.4 496.4 2,186.7 359.9 423.1 178.4 17.0 48 Total of credit market instruments, deposits, and currency 3,642.8 4,134.2 4,619.9 5,010.0 5,367.8 5,444.2' 5,553.5' 5,688.8' 5,856.4 5,959.4 6,060.4 20.3 86.0 224.7 20.3 86.1 291.5 20.8 85.2 373.5 22.8 87.1 484.7 24.1' 87.7' 615.3 24.1' 87.7' 652.5 24.C 87.0' 653.8 24.2 86.9 701.9 24.5 87.0 721.2 24.2 87.1 713.6 MEMO: Corporate equities not included above 52 Total market value 2,133.7 2,157.9 2,823.9 3,360.6 3,325.0 3,504.0' 3,622.7' 3,577.6' 3,620.3 3,731.6 4,072.3 53 54 Mutual fund shares Other equities 112.1 2,021.6 136.7 2,021.2 240.2 2,583.7 413.5 2,947.1 460.1 2,864.9 479.2 3,024.8' 486.8 S.M.C 478.1 3,099.5' 478.3 3,142.0 486.3 3,245.3 514.8 3,557.5 55 56 Holdings by financial institutions Other holdings 612.0 1,521.7 615.6 1,542.3 800.0 2,023.9 972.1 2,388.4 1,013.8 2,311.2 1,112.6' 2,391.3' 1,170.0' 2,452.8' 1,167.1' 2,410.5' 1,200.4 2,419.9 1,277.7 2,453.9 1,395.7 2,676.6 2 3 4 5 6 12 13 49 50 51 By public agencies and foreign Total held U.S. government securities Residential mortgages FHLB advances to thrifts Other loans and securities Other sources Foreign funds Treasury balances Insurance and pension reserves Other, net Public holdings as percent of total Private financial intermediation (in percent) Total foreign funds N O T E S BY L I N E N U M B E R . 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. 23.8' 87.4' 590.2 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 2Aine 1 and 13. 50. Line 21/line 14. 51. Sum of lines 11 and 30. 52-54. Includes issues by financial institutions. NOTE. Full statements for sectors and transaction types in flows and in amounts outstanding may be obtained from Flow of Funds Section, Stop 95, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. A46 Domestic Nonfinancial Statistics • January 1990 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1989 Measure 1986 1987 1988 Feb. Mar. Apr. May June July Aug. Sept.' Oct. 1 Industrial production 125.1 129.8 137.2 140.5 140.7 141.7 141.6 142.0 141.9r 142.4 142.4 141.4 Market groupings Products, total Final, total Consumer goods Equipment Intermediate Materials 133.3 132.5 124.0 143.6 136.2 113.8 138.3 136.8 127.7 148.8 143.3 118.3 145.9 144.3 133.9 158.2 151.5 125.3 150.0 148.6 138.7 161.6 155.1 127.4 150.5 148.9 138.4 162.8 156.1 127.3 151.6 150.2 139.5 164.3 156.5 128.2 151.7 150.4 139.2 165.4 156.3 127.9 152.5 151.2 139.9 166.1 157.0 127.7 151.8' 150.2' 138.7' 165.5' 157.5' 128.3 152.3' 150^ 139.1' 166.5 157.2' m.y 152.3 150.8 138.9 166.5 157.7 128.9 151.0 148.9 138.5 162.7 158.2 128.2 129.1 134.6 142.8 146.8 147.0 148.0 148.1 148.7 148.5' 149.1 148.8 147.6 79.7 78.6 81.1 80.5 83.5 83.7 84.3 84.0 84.1 83.7 84.5 84.2 84.3 83.8 84.4 83.6 84.0' 83.7 84.1 84.0' 83.7 83.8 82.8 83.2 2 3 4 5 6 7 Industry groupings 8 Manufacturing Capacity utilization (percent)2 9 Manufacturing 10 Industrial materials industries 11 Construction contracts (1982 = 100)3 158.3 163.8 160.8 148.0 150.0 163.0 159.0 157.0 163.0 160.0 175.0 165.0 12 13 14 15 16 17 18 19 20 21 Nonagricultural employment, total 4 Goods-producing, total Manufacturing, total Manufacturing, production- worker . . . Service-producing Personal income, total Wages and salary disbursements Manufacturing Disposable personal income5 Retail sales 120.7 100.9 96.3 91.1 129.0 219.4 210.8 177.4 218.5 199.3 124.1 101.8 96.8 91.9 133.4 235.0 226.3 183.8 232.4 210.8 128.6 105.0 99.2 94.3 138.5 252.9 244.4 196.5 252.1 225.1 130.6 105.3 99.8 95.0 141.2 268.7 257.3 204.0 268.1 232.2 130.8 105.4 100.0 95.1 141.5 271.3 259.5 207.5 270.3 232.4 131.1 105.5 99.9 95.0 141.8 272.9 261.7 205.7 269.6 235.5 131.3 105.5 99.9 95.0 142.2 273.5 262.0 205.8 271.7 237.4 131.7 105.4 99.8 94.8 142.7 274.8 263.8 207.0 273.8 237.3 131.9 105.4 99.8 94.8 143.0 276.5' 266.1 207.5 275.4' 239.1 132.0 105.5' 99.8 94.8 143.1 277.4' 266.7 208.8 276.2 241.3' 132.3 105.2 99.3 94.2 143.6 278.1 268.5 208.9 276.7 243.0 132.6 105.2 99.3 94.1 144.0 280.6 271.8 211.5 279.0 240.6 22 23 Prices7 Consumer (1982-84 = 100) Producer finished goods (1982 = 100) . . . 109.6 103.2 113.6 105.4 118.3 108.0 121.6 111.7 122.3 112.1 123.1 113.0 123.8 114.2 124.1 114.3r 124.4 114.0 124.6 113.3 125.0 113.5 125.6 114.8 1. A major revision of the industrial production index and the capacity utilization rates was released in July 1985. See "A Revision of the Index of Industrial Production" and accompanying tables that contain revised indexes (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. 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. 1989 Category 1986 1987 1988 Mar. Apr. May June July Aug/ Sept/ Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 182,822 185,010 186,837 188,102 188,228 188,377 188,518 188,672 188,808 188,948 189,096 2 Labor force (including Armed Forces) 1 3 Civilian labor force Employment 4 Nonagricultural industries2 5 Agriculture Unemployment 6 Number 7 Rate (percent of civilian labor force) 8 Not in labor force 120,078 117,834 122,122 119,865 123,893 121,669 125,469 123,264 125,863 123,659 125,806 123,610 126,291 124,102 126,145 123,956 126,228 124,018 126,262 124,040 126,330 124,105 106,434 3,163 109,232 3,208 111,800 3,169 113,930 3,206 114,009 3,104 114,102 3,112 114,445 3,096 114,240 3,219 114,290 3,307 114,199 3,257 114,327 3,217 8,237 7.0 62,744 7,425 6.2 62,888 6,701 5.5 62,944 6,128 5.0 62,633 6,546 5.3 62,365 6,395 5.2 62,571 6,561 5.3 62,227 6,497 5.2 62,527 6,421 5.2 62,580 6,584 5.3 62,686 6,561 5.3 62,766 99,525 102,310 106,039 107,888 108,101 108,310 108,607 108,767 108,887 109,088 109,321 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 19,536 733 5,294 5,584 25,362 6,679 25,464 17,387 19,680 714 5,252 5,666 25,685 6,774 26,520 17,597 19,672 720 5,279 5,682 25,695 6,776 26,651 17,626 19,667 722 5,283 5,700 25,750 6,790 26,711 17,687 19,650 715 5,283 5,716 25,781 6,808 26,931 17,723 19,649 706 5,314 5,736 25,823 6,815 26,973 17,751 19,644 729 5,321 5,618 25,877 6,836 27,058 17,804 19,556 730 5,321 5,711 25,893 6,851 27,123 17,903 19,543 732 5,329 5,738 25,923 6,852 27,207 17,997 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 10 11 12 13 14 15 16 17 Manufacturing Mining Contract construction Transportation and public utilities Trade Finance Service Government 1. Persons 16 years of age and over. Monthly figures, which are based on sample data, relate to the calendar week that contains the 12th day; annual data are averages of monthly figures. By definition, seasonality does not exist in population figures. Based on data from Employment and Earnings (U.S. Department of Labor). 2. Includes self-employed, unpaid family, and domestic service workers. 3. Data include all full- and part-time employees who worked during, or received pay for, the pay period that includes the 12th day of the month, and exclude proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the Armed Forces. Data are adjusted to the March 1984 benchmark and only seasonally adjusted data are available at this time. Based on data from Employment and Earnings (U.S. Department of Labor). A48 Domestic Nonfinancial Statistics • January 1990 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1989 1988 Q4 Ql Q2 1988 Q3 r Output (1977 = 100) Q4 1989 Ql Q2 1988 Q3 1989 Q4 Capacity (percent of 1977 output) Ql Q2 Q3r Utilization rate (percent) 1 Total industry 139.9 140.7 141.8 142.2 166.3 167.5 168.7 169.9 84.1 84.0 84.1 83.7 2 Mining 3 Utilities 104.2 114.3 101.8 116.0 102.0 115.7 103.2 113.9 125.7 140.7 125.1 141.0 124.7 141.4 124.3 141.7 82.9 81.3 81.3 82.3 81.8 81.8 83.1 80.4 4 Manufacturing 145.8 147.0 148.3 148.8 172.8 174.3 175.7 177.2 84.4 84.4 84.4 83.9 5 Primary processing 6 Advanced processing 127.7 156.7 127.8 158.6 127.6 160.8 128.8 160.9 145.2 189.5 146.5 191.0 147.8 192.6 149.1 194.2 87.9 82.7 87.3 83.0 86.4 83.5 86.4 82.8 7 Materials 128.0 127.6 127.9 128.7 150.8 151.7 152.6 153.5 84.9 84.1 83.9 83.8 8 Durable goods 9 Metal materials 10 Nondurable goods 11 Textile, paper, and chemical 12 Paper 13 Chemical 139.2 100.8 135.4 138.1 148.6 144.1 138.6 98.4 136.3 139.2 148.4 145.4 139.0 96.0 137.1 139.8 146.1 145.7 140.3 97.7 137.9 141.2 149.5 146.8 169.0 114.5 151.2 151.8 152.3 159.3 170.1 115.1 152.7 153.5 154.0 161.4 171.3 115.6 154.2 155.3 155.8 163.7 172.5 116.1 155.8 157.0 157.6 165.9 82.4 88.0 89.5 91.0 97.6 90.5 81.5 85.5 89.3 90.7 96.4 90.1 81.1 83.0 88.9 90.0 93.8 89.0 81.3 84.1 88.5 89.9 94.8 88.5 14 Energy materials 102.0 100.7 100.7 100.4 118.7 118.4 118.3 118.1 86.0 85.0 85.1 84.9 June July r Aug/ Sept/ Oct. Previous cycle High 2 Low Latest cycle High 3 Low 1988 Oct. 1989 Feb. Mar. Apr. May Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 84.0 83.9 83.8 84.2 84.0 84.0 83.7 83.8 83.6 82.8 16 Mining.. 17 Utilities. 92.8 95.6 87.8 82.9 95.2 88.5 76.9 78.0 81.9 81.0 80.6 82.6 81.2 83.3 82.0 82.9 81.8 81.8 81.5 80.8 82.1 80.5 82.7 79.9 84.5 80.8 84.6 18 Manufacturing. 87.7 69.9 86.5 68.0 84.3 84.3 84.1 84.5 84.3 84.4 84.0 84.1 83.7 82.8 19 Primary processing... 20 Advanced processing. 91.9 86.0 68.3 71.1 89.1 85.1 65.0 69.5 87.9 82.6 87.0 83.0 86.4 83.0 86.8 83.5 86.2 83.4 86.2 83.5 86.7 82.9 86.6 83.0 86.0 82.6 85.6 21 Materials. 92.0 70.5 89.1 68.5 84.7 84.0 83.7 84.2 83.8 83.6 83.7 84.0 83.8 83.2 22 Durable goods 23 Metal materials 24 Nondurable goods . . . 25 Textile, paper, and chemical 26 Paper 27 Chemical 91.8 99.2 91.1 64.4 67.1 66.7 89.8 93.6 88.1 60.9 45.7 70.7 82.4 88.4 89.3 81.5 85.5 89.0 80.9 83.2 88.8 81.3 84.9 89.2 81.0 81.7 88.7 81.1 82.5 88.7 81.3 84.3 89.2 81.6 84.7 88.8 81.1 83.5 87.5 80.3 83.2 92.8 98.4 92.5 64.8 70.6 64.4 89.4 97.3 87.9 68.8 79.9 63.5 90.9 97.8 90.2 90.3 95.8 89.8 90.2 95.3 89.7 90.7 94.5 90.1 89.6 93.2 88.4 89.8 93.7 88.5 90.6 95.0 89.5 90.2 95.1 88.8 88.9 94.4 87.0 87.9 28 Energy materials. 94.6 86.9 94.0 82.3 85.3 84.9 85.4 86.0 85.5 83.8 83.9 84.5 86.4 86.6 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 81.2 81.6 86.8 Selected Measures 2.13 INDUSTRIAL PRODUCTION A49 Indexes and Gross Value1 Monthly data are seasonally adjusted Groups 1977 proportion 1989 1988 1988 avg. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July' Aug.' Sept." Oct.'' Index (1977 = 100) MAJOR M A R K E T 100.00 137.2 139.4 139.9 140.4 140.8 140.5 140.7 141.7 141.6 142.0 141.9 142.4 142.4 141.4 57.72 44.77 25.52 19.25 12.94 42.28 145.9 144.3 133.9 158.2 151.5 125.3 148.1 146.4 136.4 159.7 154.0 127.5 148.4 146.8 136.8 159.9 154.2 128.3 149.4 147.7 138.2 160.4 155.0 128.3 150.1 148.2 138.5 161.1 156.6 128.1 150.0 148.6 138.7 161.6 155.1 127.4 150.5 148.9 138.4 162.8 156.1 127.3 151.6 150.2 139.5 164.3 156.5 128.2 151.7 150.4 139.2 165.4 156.3 127.9 152.5 151.2 139.9 166.1 157.0 127.7 151.8 150.2 138.7 165.5 157.5 128.3 152.3 150.9 139.1 166.5 157.2 128.9 152.3 150.8 138.9 166.5 157.7 128.9 151.0 148.9 138.5 162.7 158.2 128.2 6.89 2.98 1.79 1.16 .63 1.19 3.91 1.24 1.19 .96 1.71 125.4 125.1 123.0 93.7 177.4 128.3 125.6 144.1 143.5 136.2 106.3 129.3 128.9 128.3 101.3 178.4 129.8 129.7 154.4 151.9 138.8 106.7 129.2 129.5 129.5 101.0 182.4 129.5 128.9 150.4 148.9 139.8 107.3 131.9 134.5 138.0 105.1 199.1 129.3 130.0 151.0 150.0 140.5 108.9 131.5 132.5 135.6 99.6 202.3 127.9 130.7 151.0 149.5 141.1 110.1 131.6 131.6 133.1 96.0 201.9 129.4 131.6 153.9 153.0 141.3 110.1 130.1 128.9 128.3 95.0 190.0 129.8 131.1 151.6 152.3 140.7 110.9 132.2 131.7 131.7 98.8 192.8 131.7 132.6 151.7 152.5 142.8 113.0 131.2 128.6 127.4 96.0 185.5 130.4 133.3 151.3 151.4 144.3 114.1 130.8 125.6 123.3 91.4 182.5 129.1 134.8 155.6 155.0 143.1 115.0 127.3 120.2 114.6 81.2 176.7 128.7 132.7 148.1 147.0 141.3 116.8 128.9 122.2 119.4 86.4 180.5 126.6 133.9 153.8 151.7 140.1 116.0 128.0 120.9 117.1 92.7 162.4 126.5 133.4 154.6 150.7 139.1 115.0 124.9 117.3 111.6 91.5 149.0 125.7 130.7 148.1 19 Nondurable consumer goods 7.0 Consumer staples Consumer foods and tobacco Nonfood staples 72 73 Consumer chemical products Consumer paper products 74 75 Consumer energy 76 Consumer fuel Residential utilities 27 18.63 15.29 7.80 7.49 2.75 1.88 2.86 1.44 1.42 137.0 144.8 141.0 148.9 179.8 163.3 109.8 95.4 124.5 139.0 147.0 142.4 151.8 186.1 167.1 108.9 95.3 122.7 139.7 147.9 143.7 152.2 185.7 167.8 109.8 94.1 125.8 140.5 148.9 144.5 153.6 186.8 169.0 111.6 96.3 127.1 141.1 149.4 144.8 154.2 187.6 174.2 109.1 96.7 121.7 141.4 149.7 144.3 155.4 187.8 177.0 110.1 95.0 125.4 141.4 149.9 143.3 156.9 188.9 180.4 110.7 95.6 126.1 142.2 150.7 144.7 156.9 187.3 180.9 112.0 97.3 127.0 142.1 150.7 144.7 156.9 189.1 180.9 110.1 93.6 127.0 143.3 151.9 145.7 158.4 191.0 183.6 110.7 95.6 126.1 142.8 151.4 144.2 158.9 193.1 183.0 110.4 97.0 124.0 142.9 151.6 144.6 158.9 193.6 183.8 109.2 96.0 122.7 143.0 151.8 145.5 158.3 189.7 185.1 110.6 96.8 143.6 152.7 Equipment 78 Business and defense equipment 79 Business equipment 30 Construction, mining, and farm 31 Manufacturing 3? Power 33 Commercial Transit 34 35 Defense and space equipment 18.01 14.34 2.08 3.27 1.27 5.22 2.49 3.67 163.3 157.6 71.9 131.3 89.4 245.0 115.4 185.9 165.1 160.2 74.2 136.2 91.5 245.4 120.3 184.0 165.5 161.2 74.5 136.2 92.1 247.0 122.3 182.2 166.2 162.6 74.6 137.0 91.8 248.9 124.9 180.5 167.1 163.8 74.3 136.3 92.8 252.4 125.7 180.0 167.9 165.0 75.6 137.8 92.7 254.3 125.2 179.3 168.9 166.3 76.9 138.6 93.0 257.6 123.9 178.7 170.3 167.8 77.6 139.7 93.6 260.1 124.8 179.9 171.5 169.1 76.3 140.9 93.3 263.2 125.3 180.7 172.0 169.6 74.8 142.8 92.5 264.5 124.8 181.1 171.3 168.5 73.0 143.8 92.8 263.8 120.1 182.0 172.2 169.7 71.8 143.5 94.0 265.2 124.4 182.3 172.0 169.4 74.3 142.6 93.6 265.4 121.8 182.0 168.0 165.9 75.0 142.4 94.7 262.3 107.0 176.2 5.95 6.99 5.67 1.31 138.6 162.4 168.5 136.3 140.0 165.9 172.3 138.2 140.7 165.7 172.9 134.3 141.4 166.7 173.8 135.8 142.3 168.8 175.9 138.2 139.5 168.4 175.4 138.3 139.3 170.4 177.4 140.3 140.2 170.4 177.9 138.0 140.2 170.0 177.3 138.2 141.2 170.4 177.9 138.4 142.2 170.6 177.8 139.6 141.0 171.0 178.7 137.5 141.6 171.5 179.3 137.7 142.4 20.50 4.92 5.94 9.64 4.64 135.5 109.0 171.6 126.8 96.1 138.9 111.4 174.9 130.8 101.1 139.8 113.9 175.0 131.3 101.4 139.0 112.5 174.1 130.9 99.8 139.4 111.7 175.2 131.5 100.8 138.6 112.1 175.2 129.7 98.4 137.9 110.7 175.3 128.8 95.9 139.0 110.8 176.9 130.0 98.0 138.7 111.8 177.1 128.9 94.4 139.4 111.6 177.5 130.0 95.5 139.9 109.9 179.1 131.0 97.7 140.8 111.9 179.9 131.4 98.3 140.3 110.7 179.8 131.1 97.1 139.2 107.6 178.0 131.4 96.9 1 Total index 1 Products 3 Final products 4 Consumer goods 5 Equipment 6 Intermediate products 7 Materials Consumer goods 8 Durable consumer goods Automotive products 10 Autos and trucks 11 Autos, consumer 17, Trucks, consumer N Auto parts and allied goods 14 Home goods IS Appliances, A/C and TV 16 Appliances and TV 17 Carpeting and furniture Miscellaneous home goods 18 9 ?1 Intermediate products 36 Construction supplies 37 Business supplies 38 General business supplies 39 Commercial energy products Materials 40 Durable goods materials 41 Durable consumer parts 47, Equipment parts 43 Durable materials n.e.c 44 Basic metal materials 159.7 l'l'l. i 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 . . . 10.09 132.0 134.7 135.1 136.3 137.1 135.9 136.0 137.1 136.8 137.3 138.5 138.3 136.9 136.2 7.53 1.52 1.55 4.46 2.57 134.4 110.0 147.3 138.2 125.0 137.4 109.5 148.4 143.1 126.6 137.9 110.1 147.2 144.2 127.0 139.1 110.0 150.3 145.1 128.0 139.9 112.1 150.4 145.7 129.1 138.6 110.7 147.5 145.0 128.0 139.0 111.8 147.3 145.4 127.2 140.3 114.6 146.7 146.8 127.8 139.1 116.4 145.2 144.7 129.9 140.0 117.2 146.5 145.5 129.4 141.8 116.4 149.1 147.9 129.0 141.7 116.4 149.9 147.4 128.6 140.2 116.5 149.4 145.1 139.1 51 Energy materials 57 Primary energy 53 Converted fuel materials 11.69 7.57 4.12 101.5 106.3 92.7 101.3 106.0 92.6 102.3 108.6 90.7 102.6 107.6 93.3 100.5 105.2 92.0 100.5 104.4 93.3 101.0 103.7 96.1 101.7 104.1 97.4 101.1 104.6 94.7 99.1 103.0 92.0 99.1 103.2 91.6 99.9 104.7 91.0 102.1 107.4 92.3 102.2 A50 Domestic Nonfinancial Statistics • January 1990 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued Groups SIC code 1977 propor- 1988 1988 avg. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July' Aug/ Sept.'' Oct. Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities . 2 Mining 3 Utilities 4 Manufacturing 5 Nondurable 6 Durable 108.8 15.79 9.83 5.96 84.21 35.11 49.10 107.5 103.5 114.0 142.8 143.9 142.0 107.2 103.1 113.9 145.3 146.3 144.6 108.1 104.7 113.7 145.8 146.7 145.2 108.9 104.9 115.4 146.3 147.1 145.7 107.2 103.0 114.0 147.2 148.5 146.2 106.8 100.9 116.5 146.8 148.1 145.9 107.5 101.5 117.5 147.0 148.6 145.8 107.9 102.4 117.1 148.0 149.6 146.9 107.2 102.0 115.6 148.1 149.5 147.1 106.3 101.5 114.3 148.7 150.5 147.4 106.6 102.1 114.0 148.5 150.8 146.8 106.7 102.7 113.2 149.1 150.9 147.7 108.5 104.8 114.6 148.8 150.8 147.3 .50 1.60 7.07 .66 93.6 138.2 93.0 140.0 101.6 138.5 91.5 142.8 104.6 149.7 90.8 144.0 111.9 155.1 88.9 149.4 106.9 144.7 88.9 150.8 98.6 134.7 89.5 142.5 98.1 137.7 89.6 143.5 96.8 145.5 89.1 144.5 94.0 137.1 90.5 146.6 101.2 129.2 90.6 150.2 106.2 130.2 90.8 152.1 103.4 135.4 90.8 150.8 144.2 92.0 148.1 7.96 142.7 105.4 116.4 109.1 150.2 144.0 105.4 117.0 109.5 151.8 145.7 102.4 117.2 110.1 150.7 145.8 107.0 117.9 146.6 105.0 120.2 110.2 153.8 146.6 109.2 122.5 111.3 150.7 147.2 105.9 123.6 111.5 150.1 147.9 104.2 123.8 111.9 150.2 147.3 97.1 123.5 111.4 152.4 148.5 151.7 145.4 101.5 119.7 109.9 151.7 147.6 108.8 146.3 104.7 119.4 110.2 151.7 123^2 111.1 152.8 123 J 110.7 151.4 188.1 156.7 96.3 176.9 61.0 188.5 157.5 95.0 177.5 61.5 188.0 .53 183.8 152.0 96.0 174.4 59.4 158.1 98.0 177.5 60.2 193.0 159.0 98.0 175.9 62.9 194.6 158.5 96.3 175.0 62.9 198.5 159.2 97.0 176.4 61.2 200.1 159.3 97.3 178.0 61.4 199.0 158.2 96.9 180.5 60.3 200.5 159.9 97.9 182.3 60.5 199.9 162.2 98.3 182.3 60.8 200.9 161.8 97.8 182.7 60.2 202.1 160.2 98.5 182.5 60.1 24 25 32 2.30 1.27 2.72 137.6 162.0 122.6 137.5 164.5 123.3 139.4 165.4 124.7 143.0 165.4 125.1 139.9 166.3 126.6 132.8 164.8 125.4 133.4 165.8 125.5 135.1 168.0 124.7 135.5 170.2 123.9 137.2 170.8 123.9 136.9 169.0 122.9 135.9 167.5 124.2 136.4 167.1 124.1 33 331.2 34 35 36 5.33 3.49 6.46 9.54 7.15 89.4 78.2 120.9 170.7 180.1 94.2 83.1 122.6 173.8 183.0 92.7 80.8 124.6 175.4 182.2 90.0 77.6 125.1 177.8 180.9 93.2 124.5 178.7 180.9 91.1 79.1 124.5 180.8 181.7 88.4 75.9 123.8 183.0 181.6 90.1 77.0 123.1 184.7 182.2 87.2 73.2 124.8 186.5 181.6 87.3 72.9 125.2 187.5 181.9 89.2 75.4 125.4 186.7 181.4 90.2 75.9 125.4 187.3 183.8 89.4 75.4 125.0 188.0 183.3 181.2 29 Transportation equipment 37 30 Motor vehicles and parts 371 31 Aerospace and miscellaneous transportation equipment. 372-6.9 32 Instruments 38 33 Miscellaneous manufactures . . . . 39 9.13 5.25 132.2 117.4 134.8 121.7 135.2 122.9 136.8 125.5 136.7 124.9 136.4 123.4 134.8 120.4 136.4 122.0 135.5 119.7 134.2 116.4 131.3 110.4 133.2 114.2 131.6 112.7 122.9 109.0 3.87 152.4 154.4 107.1 152.7 159.9 106.5r 151.9 160.4 108.4' 152.2 159.1 111.0r 152.7 161.0 154.0 161.3 107.6' 154.4 161.8 110.0' 155.9 163.0 114.5r 157.1 164.3 114.7 r 158.4 165.7 117.1' 159.6 166.0 119.6 159.0 164.5 117.4 157.3 164.2 141.8 164.2 7 8 9 10 Mining Metal Coal Oil and gas extraction Stone and earth minerals . 11 12 13 14 15 Nondurable manufactures Foods Tobacco products Textile mill products Apparel products Paper and products 16 17 18 19 20 Printing and publishing Chemicals and products Petroleum products Rubber and plastic products . Leather and products 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 10 11.12 13 14 .62 2.29 2.79 3.15 4.54 8.05 2.40 2.80 2.66 1.46 82.2 111.8' 104.9 115.2 147.6 151.0 145.1 201.9 124.5 186.8 116.6 Utilities 34 Electric . Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,824.5 1,853.4 1,855.5 1,875.3 1,885.1 1 , 8 7 9 . 2 1 , 8 7 8 . 0 1 , 8 9 3 . 9 1 , 8 8 5 . 5 1,884.4 1 , 8 7 0 . 9 1,874.4 1 , 8 7 8 . 9 36 Final 37 Consumer goods 38 Equipment 39 Intermediate 405.7 1,401.2 1,423.5 1,426.3 1,442.1 1,447.5 1,449.6 1,442.8 1,460.4 1,449.6 1,448.8 1,433.5 1,437.3 1,441.4 272.7 902.4 915.0 918.4 934.4 935.6 934.3 928.0 939.4 928.5 928.0 917.4 917.9 921.6 133.0 498.8 508.4 507.9 507.7 511.9 515.2 514.8 521.1 521.1 520.8 516.0 519.4 519.8 111.9 423.3 430.5 429.3 433.2 437.7 429.6 435.3 433.5 435.9 435.6 437.4 437.1 437.5 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 2.14 HOUSING AND A51 CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1988 Item 1986 1987 1989 1988 Dec. Jan. Feb. Mar. Apr. May June July' Aug/ Sept. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1-family 2 3 2-or-more-family 1,750 1,071 679 1,535 1,024 511 1,456 994 462 1,518 1,058 460 1,486 1,052 434 1,403 989 414 1,230 870 360 1,334 954 380 1,347 905 442 1,308 874 434 1,281 906 375 1,328 927 401 1,319 946 373 4 Started 5 1-family 6 2-or-more-family 1,805 1,180 626 1,621 1,146 474 1,488 1,081 407 1,577 1,141 436 1,678 1,199 479 1,465 1,029 436 1,409 981 428 1,343 1,029 314 1,308 977 331 1,406 972 434 1,420 1,026 394 1,329 990 339 1,268 961 307 7 Under construction, end of period1 . 8 1-family 9 2-or-more-family 1,074 583 490 987 591 397 919 570 350 956 603 353 957 602 355 951 594 357 942 586 356 924 579 345 911 572 339 914 572 342 918 576 342 903 568 335 900 569 331 1,756 1,120 636 1,669 1,123 546 1,530 1,085 445 1,539 1,108 431 1,537 1,141 396 1,610 1,189 421 1,459 1,050 409 1,552 1,115 437 1,442 1,041 401 l,355r 964rr 391 1,372 965 407 1,429 1,031 398 1,296 937 359 13 Mobile homes shipped 244 233 218 225 232 212 207 198 205 202 178 194 185 Merchant builder activity in 1-family units 14 Number sold 15 Number for sale, end of period1 . . . . 748 357 672 365 675 366 669 366 700 369 621 375 555 377 607 377 653 380 647r 377 742 370 719 367 618 367 10 Completed 11 1-family 12 2-or-more-family Price (thousands of dollars)2 Median 16 Units sold Average 17 Units sold 92.2 104.7 113.3 121.0 113.0 118.0 123.0 116.7 119.0 122.8'' 117.0 122.2 122.5 112.2 127.9 139.0 147.7 138.6 145.3 149.0 144.7 145.1 153.6r 141.8 161.3 154.4 3,566 3,530 3,594 3,920 3,550 3,480 3,400 3,400 3,210 3,360 3,330 3,480 3,520 80.3 98.3 85.6 106.2 89.2 112.5 88.7 112.0 89.7 113.0 91.9 117.8 92.0 116.1 92.9 118.0 92.6 118.0 93.4 118.8 96.7 122.1 94.8 120.8 94.3 118.4 EXISTING U N I T S ( 1 - f a m i l y ) 18 Number sold Price of units sold (thousands of dollars) 19 Median 20 Average Value of new construction 3 (millions of dollars) CONSTRUCTION 21 Total put in place 387,043 397,721 409,663 425,035 424,791 418,465 419,152 414,834 420,410 416,928 409,601 415,849 415,615 22 Private 23 Residential 24 Nonresidential, total Buildings 25 Industrial 26 Commercial 27 Other Public utilities and other 28 315,313 187,147 128,166 320,108 194,656 125,452 328,738 198,101 130,637 336,254 202,480 133,774 339,481 204,707 134,774 335,037 202,322 132,715 340,438 204,456 135,982 335,480 203,678 131,802 334,462 200,854 133,608 333,440 198,635 134,805 328,046 194,257 133,789 331,472 193,598 137,874 327,592 191,940 135,652 13,747 56,762 13,216 44,441 13,707 55,448 15,464 40,833 14,931 58,104 17,278 40,324 15,045 58,659 17,744 42,326 15,890 59,350 17,976 41,558 15,098 58,749 17,484 41,384 15,698 60,653 17,634 41,997 16,245 55,581 16,645 43,331 15,945 56,796 17,343 43,524 16,302 57,434 17,179 43,890 16,390 56,499 16,792 44,108 17,460 57,812 18,360 44,242 17,601 55,662 17,771 44,618 71,727 3,868 22,971 4,646 40,242 77,612 4,327 25,343 5,162 42,780 80,922 3,579 28,524 4,474 44,345 88,781 3,905 33,674 4,412 46,790 85,310 3,440 30,792 4,121 46,957 83,428 3,433 27,936 4,742 47,317 78,714 3,740 26,091 4,210 44,673 80,420 2,054 27,772 3,068 47,526 85,130 3,870 27,432 6,053 47,775 81,914 4,324 27,321 4,699 45,570 81,555 3,264 26,128 4,535 47,628 84,377 3,689 27,367 4,643 48,678 88,023 4,242 27,936 4,679 51,166 29 Public 30 Military 31 Highway 32 Conservation and development... 33 Other 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 1990 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 months earlier Item Change from 3 months earlier (at annual rate) 1988 1988 1989 Oct. Oct. Change from 1 month earlier 1989 Index level Oct. 1989 1989' Dec. Mar. June r Sept/ June' July' Aug. Sept. Oct. CONSUMER PRICES (1982-84=100) 1 All items 4.2 4.5 4.1 6.1 5.7 1.6 .2 .2 .0 .2 .5 125.6 2 3 4 5 6 Food Energy items All items less food and energy Commodities Services 5.2 .1 4.5 3.8 4.8 5.2 5.2 4.3 2.7 5.1 3.0 -.4 4.9 4.2 5.4 8.2 10.2 5.2 4.1 5.9 5.6 24.8 3.8 2.0 4.3 2.9 -13.4 3.1 .7 4.5 .2 -1.0 .2 -.1 .4 .3 -.7 .4 .1 .6 .2 -2.0 .2 -.3 .3 .2 -.9 .2 .4 .2 .4 .6 .5 .6 .4 126.5 94.6 130.9 121.2 136.5 3.0 4.5 -5.9 4.2 3.1 4.9 4.3 11.9 4.6 3.7 3.0 2.1 1.4 4.4 1.7 10.2 13.1 41.0 5.4 4.6 5.8 -1.3 31.8 5.7 4.5 -.3 -1.3 -16.8 2.6 4.8 .1 -.6 -2.7 .8 .5 -.6 -.1 -3.2 -.4 -.1 -.4 .3 -7.3 .5 .3 .9 -.6 6.5 .6 1.0 .4 1.4 .2 .2 -.3 114.8 119.5 65.7 126.0 120.3 4.9 7.0 3.7 2.6 4.5 6.7 8.7 5.5 2.9 .3 -1.1 -.7 -.1 -.2 -.4 -.2 -.3 -.1 .4 .1 .1 .1 112.3 120.3 16.4 -16.0 5.5 -4.2 21.0 3.0 -7.9 12.3 12.5 16.9 48.3 10.3 -17.8 23.6 -9.3 -2.2 -6.5 -.6 -2.1 -1.0 -1.5 -1.4 1.8 -1.6 1.7 -6.7 1.2 -.8 3.5 .3 -.6 .5 .3 107.2 76.6 137.4 PRODUCER PRICES (1982=100) 7 8 9 10 11 Finished goods Consumer foods Consumer energy Other consumer goods Capital equipment 12 13 Intermediate materials3 Excluding energy 14 15 16 Crude materials Foods Energy Other 1. Not seasonally adjusted. 2. Figures for consumer prices are those for all urban consumers and reflect a rental equivalence measure of homeownership after 1982. 3. Excludes intermediate materials for food manufacturing and manufactured animal feeds. SOURCE. Bureau of Labor Statistics. Selected Measures 2.16 GROSS NATIONAL PRODUCT A N D A53 INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1988 Account 1986 1987 1989 1988 Q3 Q4 Ql Q2 Q3r GROSS NATIONAL PRODUCT 1 Total 4,231.6 4,524.3 4,880.6 4,926.9 5,017.3 5,113.1 5,201.7 5,278.9 2 3 4 5 By source Personal consumption expenditures Durable goods Nondurable goods Services 2,797.4 406.0 942.0 1,449.5 3,010.8 421.0 998.1 1,591.7 3,235.1 455.2 1,052.3 1,727.6 3,263.4 452.5 1,066.2 1,744.7 3,324.0 467.4 1,078.4 1,778.2 3,381.4 466.4 1,098.3 1,816.7 3,444.1 471.0 1,121.5 1,851.7 3,513.2 488.5 1,133.7 1,891.0 659.4 652.5 435.2 139.0 296.2 217.3 699.9 670.6 444.3 133.8 310.5 226.4 750.3 719.6 487.2 140.3 346.8 232.4 771.1 726.5 493.2 142.0 351.3 233.2 752.8 734.1 495.8 142.5 353.3 238.4 769.6 742.0 503.1 144.7 358.5 238.8 775.0 747.6 512.5 142.4 370.1 235.1 779.0 752.1 519.3 145.5 373.8 232.8 6.9 8.6 29.3 30.5 30.6 34.2 44.6 41.5 18.7 40.8 27.7 19.1 27.4 23.6 26.9 19.0 6 7 8 9 10 11 12 13 Gross private domestic investment Fixed investment Nonresidential Structures Producers' durable equipment Residential structures Change in business inventories Nonfarm 14 15 16 Net exports of goods and services Exports Imports -97.4 396.5 493.8 -112.6 448.6 561.2 -73.7 547.7 621.3 -66.2 556.8 623.0 -70.8 579.7 650.5 -54.0 605.6 659.6 -50.6 626.1 676.6 -53.5 623.3 676.8 17 18 19 Government purchases of goods and services Federal State and local 872.2 366.5 505.7 926.1 381.6 544.5 968.9 381.3 587.6 958.6 367.5 591.0 1,011.4 604.9 1,016.0 399.0 617.0 1,033.2 406.0 627.2 1,040.2 403.3 636.8 20 21 22 23 24 25 By major type of product Final sales, total Goods Durable Nondurable Services Structures 4,224.8 1,686.7 724.2 962.5 2,119.3 425.6 4,495.0 1,785.2 1,007.6 2,304.5 434.6 4,850.0 1,931.9 863.6 1,068.3 2,499.2 449.5 4,882.3 1,955.8 884.0 1,071.8 2,520.3 450.8 4,998.7 1,987.4 888.5 1,098.9 2,570.0 459.9 5,085.4 2,030.9 894.7 1,136.2 2,620.8 461.3 5,174.3 2,079.1 905.2 1,173.9 2,667.5 455.1 5,252.0 2,105.0 935.1 1,169.9 2,716.8 457.1 26 27 28 Change in business inventories Durable goods Nondurable goods 6.9 1.2 5.6 29.3 22.0 7.2 30.6 25.0 5.6 44.6 41.4 3.2 18.7 32.0 -13.3 27.7 22.0 5.7 27.4 6.0 21.4 26.9 3.8 23.1 29 Total GNP in 1982 dollars 3,717.9 3,853.7 4,024.4 4,042.7 4,069.4 4,106.8 4,132.5 4,160.2 3,412.6 3,665.4 3,972.6 4,005.7 4,097.4 4,185.2 4,249.6 4,284.0 2,511.4 2,094.8 393.7 1,701.1 416.6 217.3 199.3 2,690.0 2,249.4 419.2 1,830.1 440.7 227.8 212.8 2,907.6 2,429.0 446.5 1,982.5 478.6 249.7 228.9 2,935.1 2,452.2 449.6 2,002.6 482.9 251.8 231.1 2,997.2 2,505.1 456.3 2,048.9 492.0 255.6 236.5 3,061.7 2,560.7 466.9 2,093.8 501.0 259.7 241.3 3,118.2 2,608.8 473.5 2,135.3 509.4 263.4 246.0 3,171.9 2,654.7 480.2 2,174.5 517.2 266.6 250.7 282.0 247.2 34.7 311.6 270.0 41.6 327.8 288.0 39.8 327.0 289.3 37.7 328.3 296.3 32.0 359.3 300.3 59.0 355.5 304.2 51.3 343.6 307.3 36.3 777.6 406.4 MEMO NATIONAL INCOME 30 31 32 33 34 35 36 37 Compensation of employees Wages and salaries Government and government enterprises Other Supplement to wages and salaries Employer contributions for social insurance Other labor income 38 39 40 Proprietors' income1 Business and professional Farm 1 41 Rental income of persons 2 Corporate profits 1 Profits before tax 3 44 Inventory valuation adjustment 45 Capital consumption adjustment 42 43 46 Net interest 1. With inventory valuation and capital consumption adjustments. 2. With capital consumption adjustment. 11.6 13.4 15.7 16.3 16.1 11.8 9.8 5.2 282.1 221.6 6.7 53.8 298.7 266.7 -18.9 50.9 328.6 306.8 -25.0 46.8 330.9 314.4 -30.4 46.9 340.2 318.8 -20.1 41.5 316.3 318.0 -38.3 36.6 307.8 296.0 -20.7 32.3 292.3 272.0 -6.0 26.3 325.5 351.7 392.9 396.4 415.7 436.1 458.4 471.0 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 1990 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1988 Account 1986 1987 1989 1988 Q3 Q4 Ql Q2 Q3' PERSONAL INCOME AND SAVING 1 Total personal income 3,526.2 3,777.6 4,064.5 4,097.6 4,185.2 4,317.8 4,400.3 4,457.5 2 Wage and salary disbursements 3 Commodity-producing industries 4 Manufacturing 5 Distributive industries Service industries 6 7 Government and government enterprises 2,094.8 625.6 473.2 498.8 576.7 393.7 2,249.4 649.9 490.3 531.9 648.3 419.2 2,429.0 696.3 524.0 571.9 714.4 446.5 2,452.2 701.6 527.2 578.0 723.0 449.6 2,505.1 714.7 538.1 587.5 746.7 456.3 2,560.7 726.6 546.3 598.8 768.4 466.9 2,608.8 733.7 549.9 610.8 790.8 473.5 2,654.7 742.8 555.8 619.5 812.2 480.2 199.3 282.0 247.2 34.7 11.6 85.8 493.2 521.5 269.2 212.8 311.6 270.0 41.6 13.4 92.0 523.2 548.2 282.9 228.9 327.8 288.0 39.8 15.7 102.2 571.1 584.7 300.5 231.1 327.0 289.3 37.7 16.3 103.6 576.3 587.4 301.4 236.5 328.3 296.3 32.0 16.1 106.4 598.6 593.8 304.0 241.3 359.3 300.3 59.0 11.8 109.4 629.0 616.4 316.9 246.0 355.5 304.2 51.3 9.8 111.4 655.1 626.8 322.9 250.7 343.6 307.3 36.3 5.2 113.2 669.2 636.4 328.0 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 161.9 172.9 194.9 196.4 199.6 210.0 213.0 215.4 3,526.2 3,777.6 4,064.5 4,097.6 4,185.2 4,317.8 4,400.3 4,457.5 512.9 571.7 586.6 585.9 597.8 628.3 652.6 649.1 20 EQUALS: Disposable personal income 3,013.3 3,205.9 3,477.8 3,511.7 3,587.4 3,689.5 3,747.7 3,808.4 21 LESS: Personal outlays 2,888.5 3,104.1 3,333.1 3,362.1 3,424.0 3,483.8 3,547.0 3,617.3 22 EQUALS: Personal saving 124.9 101.8 144.7 149.6 163.4 205.7 200.7 191.1 15,385.5 10,123.7 10,905.0 4.1 15,793.9' 10,302.0 10,970.0 3.2 16,332.8 10,545.5 11,337.0 4.2 16,387.1 10,572.0 11,377.0 4.3 16,455.3 10,625.6 11,466.0 4.6 16,566.4 10,653.5 11,625.0 5.6 16,629.8 10,678.9 11,622.0 5.4 16,700.9 10,815.3 11,723.0 5.0 19 LESS: Personal tax and nontax payments MEMO Per capita (1982 dollars) 23 Gross national product 24 Personal consumption expenditures 25 Disposable personal income 26 Saving rate (percent) GROSS SAVING 27 Gross saving 525.3 553.8 642.4 669.8 647.4 693.5 695.8 700.3 28 29 30 31 669.5 124.9 84.5 6.7 663.8 101.8 75.3 -18.9 738.6 144.7 80.3 -25.0 742.4 149.6 77.6 -30.4 769.3 163.4 81.7 -20.1 792.1 205.7 53.4 -38.3 793.7 200.7 52.0 -20.7 803.3 191.1 46.6 -6.0 285.9 174.2 303.1 183.6 321.7 191.9 323.1 192.1 329.7 194.4 335.2 197.8 339.7 201.3 350.2 215.4 -144.1 -206.9 62.8 -110.1 -161.4 51.3 -96.1 -145.8 49.7 -72.7 -122.5 49.8 -121.9 -167.6 45.7 -98.7 -147.5 48.8 -97.9 -145.4 47.5 -103.0 -147.4 44.3 Gross private saving Personal saving Undistributed corporate profits Corporate inventory valuation adjustment Capital consumption allowances 33 Noncorporate 34 35 36 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. 523.6 549.0 632.8 661.2 630.8 669.3 677.5 677.4 659.4 -135.8 699.9 -150.9 750.3 -117.5 771.1 -109.9 752.8 -122.0 769.6 -100.3 775.0 -97.5 779.0 -101.6 -1.8 -4.7 -9.6 -8.6 -16.6 -24.1 -18.3 -22.9 | 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 Item credits or debits Not seasonally adjusted 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, —) 1986 1987 1989 1988 Q2 Q3 Q4 Q1 Q2 -32,340 -36,926 -30,339 80,604 -110,943 -1,006 12,806 4,971 -1,088 -2,288 -28,677 -28,191 -32,019 83,729 -115,748 -1,604 21,329 5,475 -1,090 -3,928 -30,390 -25,994 -28,378 87,919 -116,297 -1,498 15,527 5,428 -1,186 -2,340 -30,988 -30,779 -27,718 90,866 -118,584 -1,630 14,422 6,469 -952 -2,142 -133,249 -143,700 -126,548 -145,058 223,367 -368,425 -4,577 60,629 10,517 -4,049 -11,730 -159,500 250,266 -409,766 -2,856 71,151 10,585 -4,063 -10,149 -127,215 319,251 -446,466 -4,606 61,974 17,702 -4,279 -10,377 -33,485 -33,875 -31,411 78,471 -109,882 -1,033 11,536 4,323 -971 -1,928 -2,024 997 2,999 -885 1,961 3,413 1,049 -372 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 312 0 -246 1,501 -942 9,149 0 -509 2,070 7,588 -3,566 0 474 1,025 -5,064 39 0 180 69 -210 -7,380 0 -35 202 -7,547 2,271 0 173 307 1,791 -4,000 0 -188 316 -4,128 -12,095 0 68 -159 -12,004 17 Change in U.S. private assets abroad (increase, - ) . 18 Bank-reported claims 19 Nonbank-reported claims 20 U.S. purchase of foreign securities, net 21 U.S. direct investments abroad, net -97,953 -59,975 -7,396 -4,271 -26,311 -86,363 -42,119 5,201 -5,251 -44,194 -81,544 -54,481 -1,684 -7,846 -17,533 -15,273 -12,602 -6,443 1,333 2,439 -32,467 -26,229 255 -1,592 -4,901 -38,332 -30,916 4,569 -3,047 -8,938 -28,367 -22,132 1,835 -2,568 -5,502 19,943 28,527 -5,908 -2,676 23 24 25 26 27 22 Change in foreign official assets in United States (increase, +) U.S. Treasury securities Other U.S. government obligations Other U.S. government liabilities Other U.S. liabilities reported by U.S. banks3 Other foreign official assets 35,594 34,364 -1,214 2,141 1,187 -884 45,193 43,238 1,564 -2,520 3,918 -1,007 38,882 41,683 1,309 -1,284 -331 -2,495 5,895 5,853 202 -517 774 -417 -2,234 -3,769 572 -232 1,703 -508 10,589 11,897 697 -232 -1,036 -737 7,477 4,634 721 -304 1,974 452 -4,948 -9,763 -92 396 3,924 587 28 Change in foreign private assets in 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 United States, net 186,011 79,783 -2,641 3,809 70,969 34,091 172,847 89,026 2,450 -7,643 42,120 46,894 180,417 68,832 6,558 20,144 26,448 58,435 59,438 30,455 -59 5,458 9,699 13,885 48,413 23,291 2,350 3,422 7,454 11,896 70,170 32,223 2,702 5,336 6,871 23,038 52,529 13,261 2,852 8,590 8,665 19,161 1,831 -22,822 0 11,308 0 1,878 0 -10,641 0 -15,729 -3,714 0 24,047 -4,556 0 -19,434 4,431 0 1,702 4,127 0 26,629 -2,340 11,308 1,878 -10,641 -12,015 28,603 -23,865 -2,425 28,969 34 Allocation of SDRs 35 Discrepancy 36 Owing to seasonal adjustments 37 Statistical discrepancy in recorded data before seasonal adjustment 2,722 9,600 12,331 MEMO Changes in official assets U.S. official reserve assets (increase, - ) Foreign official assets in United States (increase, +) excluding line 25 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 38 39 312 9,149 -3,566 39 -7,380 2,271 -4,000 -12,095 33,453 47,713 40,166 6,412 -2,002 10,821 7,781 -5,344 -9,327 -9,955 -3,109 -1,776 -459 672 7,143 281 96 53 92 4 7 40 12 14 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 International Statistics • January 1990 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1989 Item 1986 1987 1988 Mar. Apr. May June July Aug/ Sept.'' 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 227,158 254,073 322,426 30,065 30,759 30,455 31,286 30,468 30,562 31,136 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 365,438 406,241 440,952 39,549 39,045 40,534 39,293 38,709 40,662 39,079 -138,279 -152,169 -118,526 -9,485 -8,286 -10,079 -8,007 -8,241 -10,101 -7,943 Trade balance 3 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 1989 Type 1986 1 Total 1987 Apr. May June July Aug. Sept. Oct. 43,186 48,511 45,798 50,303 54,941 60,502 63,462 62,364 68,418 70,809 11,090 11,064 11,078 11,061 11,060 11,063 11,066 11,066 11,065 11,062 7,293 8,395 10,283 9,379 9,134 9,034 9,340 9,240 9,487 9,473 11,947 11,730 11,349 9,132 8,513 9,055 8,644 8,786 8,722 12,856 17,322 13,088 20,731 26,234 31,517 34,001 33,413 39,080 41,552 2 Gold stock, including Exchange Stabilization Fund 2,3 3 Special drawing rights 4 Reserve position in International Monetary Fund 5 Foreign currencies 4 1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table 3.13. Gold stock is valued at $42.22 per fine troy ounce. 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based on a weighted average of exchange rates for the currencies of member countries. From July 1974 through December 1980, 16 currencies were used; from January 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in the IMF also are valued on this basis beginning July 1974. 3. 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 1 Millions of dollars, end of period 1989 Assets 1986 1987 1988 Apr. 1 Deposits Assets held in custody 2 U.S. Treasury securities2 3 Earmarked gold June July Aug. Sept. Oct. P 287 244 347 352 428 275 371 265 325 252 155,835 14,048 195,126 13,919 232,547 13,636 235,145 13,576 232,004 13,612 229,914 13,545 233,170 13,530 238,007 13,516 235,597 13,506 230,804 13,460 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 1989 Asset account 1987 1988 Mar. Apr. May June July Aug. Sept. All foreign countries 1 Total, all currencies 2 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 11 Other assets 456,628 518,618 506,062 519,740 517,276 521,436 523,674 534,200 522,550r 521,291 114,563 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 89,674 169,111 129,856 14,918 24,337 299,728 107,179 96,932 17,163 78,454 177,902 134,002 14,697 29,203 303,906 110,434 97,723 17,020 78,729 171,136 128,567 13,459 29,110 305,483 113,824 %,830 16,101 78,728 177,987 134,026 13,040 30,921 302,808 116,506 94,042 16,095 76,165 177,445 132,380 14,218 30,847 303,720 115,913 94,902 16,709 76,1% 179,615 133,135 15,744 30,736 310,426 117,438 95,621 16,948 80,419 177,298' 134,478r 15,225 27,595 299,094r 108,91c 92,267 16,660 81,257 182,405 142,304 14,164 25,937 290,002 104,657 90,393 16,376 78,576 29,110 38,064 37,223 37,932 40,657 40,641 42,509 44,159 46,158 48,884 12 Total payable in U.S. dollars 317,487 350,107 358,040 366,403 359,841 366,315 367,562 371,851 369,689r 360,535 13 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 20 Public borrowers 21 Nonbank foreigners 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 35,707 163,456 126,929 14,167 22,360 177,685 80,736 54,884 12,131 29,934 170,091 129,431 13,259 27,401 178,134 82,797 53,893 11,831 29,613 163,964 124,268 12,539 27,157 178,298 86,767 50,815 11,467 29,249 169,7% 128,771 11,909 29,116 177,308 86,625 49,793 11,282 29,608 169,520 127,352 13,207 28, %1 180,013 88,874 50,627 11,815 28,697 171,041 128,063 14,734 28,244 181,441 90,077 49,913 11,616 29,835 170,497r 130,168r 14,688 25,641 177,717r 83,039' 50,685 11,776 32,217 174,593 137,446 13,217 23,930 164,448 77,852 46,779 11,646 28,171 11,804 15,656 16,899 18,178 17,579 19,211 18,029 19,369 21,475 21,494 22 Other assets United Kingdom 23 Total, all currencies 140,917 158,695 156,835 154,856 153,146 155,532 153,968 161,882 158,869 158,328 24 Claims on United States 25 Parent bank 26 Other banks in United States 27 Nonbanks 28 Claims on foreigners 29 Other branches of parent bank 30 Banks 31 Public borrowers 32 Nonbank foreigners 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 40,089 34,243 1,123 4,723 106,388 35,625 36,765 4,019 29,979 40,715 35,315 1,380 4,020 103,443 35,305 35,382 3,757 28,999 39,475 34,741 1,227 3,507 102,438 32,954 37,079 3,471 28,934 39,599 35,642 1,243 2,714 104,504 35,537 37,412 3,627 27,928 38,014 33,763 1,125 3,126 103,773 34,948 37,357 3,599 27,869 42,147 37,713 1,121 3,313 106,586 35,440 36,519 3,788 30,839 41,914 38,031 1,112 2,771 102,015 32,392 35,857 3,586 30,180 40,085 36,046 1,265 2,774 102,093 32,607 37,146 3,265 29,075 6,810 10,477 10,358 10,698 11,233 11,429 12,181 13,149 14,940 16,150 34 Total payable in U.S. dollars 95,028 100,574 103,503 103,211 98,463 101,612 99,028 103,512 104,416 99,893 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 42 Public borrowers 43 Nonbank foreigners 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 38,012 33,252 964 3,7% 60,472 28,474 18,494 2,840 10,664 38,265 34,320 937 3,008 59,201 28,145 17,715 2,786 10,555 36,772 33,499 872 2,401 56,227 25,389 17,680 2,6% 10,462 36,675 34,119 862 1,694 58,395 26,036 18,458 2,737 11,164 34,990 32,059 844 2,087 58,746 26,541 18,745 2,606 10,854 38,506 36,041 821 1,644 59,137 27,955 17,080 2,702 11,400 39,135 36,375 1,007 1,753 57,490 25,368 18,082 2,679 11,361 37,108 34,537 1,017 1,554 55,336 25,538 17,612 2,521 9,665 3,697 5,575 5,019 5,745 5,464 6,542 5,292 5,869 7,791 7,449 33 Other assets 44 Other assets 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 52 Banks 53 Public borrowers 54 Nonbank foreigners 55 Other assets 56 Total payable in U.S. dollars 142,592 160,321 170,639 179,185 172,324 173,137 171,780 172,789 165,401 164,684 78,048 54,575 11,156 12,317 60,005 17,296 27,476 7,051 8,182 85,318 60,048 14,277 10,993 70,162 21,277 33,751 7,428 7,706 105,320 73,409 13,145 18,766 58,393 17,954 28,268 5,830 6,341 111,951 75,234 12,275 24,442 59,615 20,048 27,727 5,480 6,360 105,273 68,%9 11,563 24,741 60,103 26,261 22,641 5,374 5,827 111,823 73,627 10,807 27,389 53,984 21,%2 21,184 5,280 5,558 109,800 70,735 12,116 26,949 54,537 22,324 21,202 5,540 5,471 107,831 67,417 13,712 26,702 57,135 24,462 21,591 5,405 5,677 106,693 69,404 13,294 23,995 50,808 16,802 20,688 5,407 7,911 111,043 76,426 12,141 22,476 45,%2 14,688 20,162 5,435 5,677 4,539 4,841 6,926 7,619 6,948 7,330 7,443 7,823 7,900 7,679 136,813 151,434 163,518 172,148 166,389 166,869 165,676 167,259 160,821 160,274 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 1990 3.14—Continued 1989 Liability account 1986 1987 1988 Apr. May July Aug. All foreign countries 57 Total, all currencies 456,628 518,618 506,062 519,740 517,276 521,436 523,674 534,200 522,550' 521,291 58 Negotiable CDs 59 To United States 60 Parent bank 61 Other banks in United States 62 Nonbanks 31,629 152,465 83,394 15,646 53,425 30,929 161,390 87,606 20,355 53,429 28,511 185,577 114,720 14,737 56,120 30,768 185,831 113,779 14,499 57,553 30,278 179,292 109,164 14,307 55,821 29,425 178,821 110,579 13,564 54,678 28,116 179,858 113,250 12,951 53,657 28,882 177,706 110,121 13,323 54,262 29,524 177,487 110,638 13,269 53,580 26,679 182,532 120,406 13,015 49,111 63 To foreigners 64 Other branches of parent bank 65 Banks 66 Official institutions 67 Nonbank foreigners 68 Other liabilities 253,775 95,146 77,809 17,835 62,985 18,759 304,803 124,601 87,274 19,564 73,364 21,496 270,923 111,267 72,842 15,183 71,631 21,051 280,859 116,148 71,447 17,911 75,353 22,282 282,920 115,380 72,155 17,933 77,452 24,786 288,291 121,135 72,903 17,795 76,458 24,899 289,603 118,950 74,213 17,559 78,881 26,097 301,422 119,571 80,070 18,846 82,935 26,190 288,665' 113,348' 76,024 17,589 81,704 26,874 283,325 104,256 78,050 17,349 83,670 28,755 69 Total payable in U.S. dollars 336,406 361,438 367,483 379,610 372,788 376,474 378,331 381,879 379,795' 371,877 70 Negotiable CDs 71 To United States 72 Parent bank 73 Other banks in United States 74 Nonbanks 28,466 144,483 79,305 14,609 50,569 26,768 148,442 81,783 18,951 47,708 24,045 173,190 107,150 13,468 52,572 26,287 173,471 105,534 13,195 54,742 25,970 166,666 100,897 12,781 52,988 25,411 166,134 102,643 11,944 51,547 24,129 167,217 104,929 11,537 50,751 24,914 163,771 100,521 11,845 51,405 25,483 165,985 103,117 11,964 50,904 22,927 169,841 111,658 11,837 46,346 75 To foreigners 76 Other branches of parent bank 77 Banks 78 Official institutions 79 Nonbank foreigners 80 Other liabilities 156,806 71,181 33,850 12,371 39,404 6,651 177,711 90,469 35,065 12,409 39,768 8,517 160,766 84,021 28,493 8,224 40,028 9,482 169,407 88,298 28,949 9,953 42,207 10,445 169,758 87,716 28,445 9,591 44,006 10,394 173,228 90,123 29,567 9,255 44,283 11,701 175,393 90,850 29,686 9,852 45,005 11,592 181,005 91,713 31,216 11,176 46,900 12,189 175,343' 86,719' 32,354 10,680 45,590 12,984 165,339 77,463 30,703 10,195 46,978 13,770 United Kingdom 81 Total, all currencies 140,917 158,695 156,835 154,856 153,146 155,532 153,968 161,882 158,869 158,328 82 Negotiable CDs 83 To United States 84 Parent bank 85 Other banks in United States . 86 Nonbanks 27,781 24,657 14,469 2,649 7,539 26,988 23,470 13,223 1,536 8,711 24,528 36,784 27,849 2,037 6,898 26,625 32,757 25,098 1,824 5,835 26,157 29,715 20,455 1,551 7,709 25,539 30,867 20,329 1,720 8,818 24,396 30,013 21,892 1,648 6,473 25,342 29,954 19,680 1,852 8,422 25,905 31,551 21,561 1,767 8,223 23,122 31,076 24,013 1,687 5,376 87 To foreigners 88 Other branches of parent bank 89 Banks 90 Official institutions 91 Nonbank foreigners 92 Other liabilities 79,498 25,036 30,877 6,836 16,749 8,981 98,689 33,078 34,290 11,015 20,306 9,548 86,026 26,812 30,609 7,873 20,732 9,497 85,863 25,781 29,094 9,429 21,559 9,611 87,478 25,800 30,714 8,637 22,327 9,796 88,985 26,867 30,925 8,946 22,247 10,141 88,381 24,974 31,066 8,650 23,691 11,178 94,335 26,556 33,047 9,586 25,146 12,251 88,661 24,326 30,790 8,868 24,677 12,752 91,101 24,769 31,330 8,878 26,124 13,029 93 Total payable in U.S. dollars 99,707 102,550 105,907 107,092 102,065 104,356 101,742 105,700 106,915 103,016 94 Negotiable CDs 95 To United States 96 Parent bank 97 Other banks in United States . 98 Nonbanks 26,169 22,075 14,021 2,325 5,729 24,926 17,752 12,026 1,308 4,418 22,063 32,588 26,404 1,752 4,432 24,302 29,578 24,013 1,559 4,006 24,073 25,493 18,524 1,227 5,742 23,568 26,554 18,545 1,368 6,641 22,324 25,401 19,411 1,393 4,597 23,132 24,618 16,704 1,477 6,437 23,679 27,232 19,300 1,502 6,430 21,156 26,592 21,588 1,511 3,493 48,138 17,951 15,203 4,934 10,050 3,325 55,919 22,334 15,580 7,530 10,475 3,953 47,083 18,561 13,407 4,348 10,767 4,173 48,221 18,335 12,907 5,467 11,512 4,991 47,781 17,755 13,439 4,365 12,222 4,718 49,006 18,030 13,930 4,7% 12,250 5,228 48,491 16,467 13,545 5,579 12,900 5,526 52,179 18,388 14,173 6,131 13,487 5,771 49,913 17,060 13,578 5,825 13,450 6,091 48,557 16,673 12,331 5,532 14,021 6,711 99 To foreigners 100 Other branches of parent bank 101 Banks 102 Official institutions 103 Nonbank foreigners 104 Other liabilities Bahamas and Caymans 105 Total, all currencies 142,592 160,321 170,639 179,185 172,324 173,137 171,780 172,789 165,401 164,684 106 Negotiable CDs 107 To United States 108 Parent bank 109 Other banks in United States 110 Nonbanks 847 106,081 49,481 11,715 44,885 885 113,950 53,239 17,224 43,487 953 122,332 62,894 11,494 47,944 1,073 124,736 62,689 11,464 50,583 1,025 118,164 59,762 11,346 47,056 872 120,175 64,908 10,398 44,869 696 117,737 61,642 10,034 46,061 717 116,261 61,263 10,197 44,801 691 113,122 58,765 10,076 44,281 669 116,963 64,285 10,026 42,652 34,400 12,631 8,617 2,719 10,433 1,264 43,815 19,185 10,769 1,504 12,357 1,671 45,161 23,686 8,336 1,074 12,065 2,193 50,855 28,010 8,495 1,234 13,116 2,521 50,606 27,655 8,203 1,722 13,026 2,529 48,989 26,478 8,233 1,164 13,114 3,101 50,477 27,763 8,322 1,102 13,290 2,870 52,881 29,085 8,309 1,223 14,264 2,930 48,769 25,370 9,016 1,081 13,302 2,819 43,892 20,207 9,273 928 13,484 3,160 138,774 152,927 162,950 172,213 166,489 166,954 165,593 166,988 160,800 160,133 111 To foreigners 112 Other branches of parent bank 113 Banks 114 Official institutions 115 Nonbank foreigners 116 Other liabilities 117 Total payable in U.S. dollars Summary Statistics 3.15 A59 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1989' 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 Europe 1 Canada Latin America and Caribbean Asia Africa Other countries 6 1987 1988 Mar. Apr. May June July Aug.' Sept. p 259,556 299,677 307,667 313,637 306,420 302,048 307,369" 317,403 313,843 31,838 88,829 31,414 103,722 33,594 95,478 39,116 96,109 38,036 91,798 37,214 87,190 39,044' 87,734 37,958 88,325 36,098 85,775 122,432 300 16,157 149,056 523 14,962 161,923 534 16,138 161,081 538 16,793 160,013 542 16,031 160,462 545 16,637 163,281 549 16,761 173,238 553 17,329 173,934 557 17,479 124,620 4,961 8,328 116,098 1,402 4,147 125,097 9,584 10,099 145,504 1,369 7,501 125,584 10,156 7,524 156,264 1,119 6,485 129,254 9,994 7,168 158,564 1,065 7,053 126,222 9,938 6,091 156,073 1,182 6,371 122,502 9,604 5,925 155,372 1,271 6,830 126,361 9,424 7,166 155,811' 949 7,113 134,140 9,560 7,986 157,100 810 7,257 133,174 8,989 8,924 154,308 867 7,024 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 Currencies' Millions of dollars, end of period 1988 Item 1 Banks' own liabilities 2 Banks' own claims 3 Deposits 4 Other claims 5 Claims of banks' domestic customers 1985 15,368 16,294 8,437 7,857 580 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 1986 29,702 26,180 14,129 12,052 2,507 1989 1987 55,438 51,271 18,861 32,410 551 Sept. Dec. Mar. June' 65,379 63,448 22,594 40,854 335 74,836 68,983 25,100 43,884 364 76,262 72,812 25,846 46,966 376 68,483 62,808 23,825 38,983 723 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. A60 International Statistics • January 1990 3.17 LIABILITIES TO FOREIGNERS Payable in U.S. dollars Reported by Banks in the United States1 Millions of dollars, end of period 1989 Holder and type of liability 1986 1987 1988 Mar. Apr. May June July Aug.' Sept." 1 All foreigners 540,996 618,874 684,444 691,295 682,850 678,059 672,049 663,725' 679,101 692,329 2 Banks' own liabilities 3 Demand deposits 4 Time deposits 5 Other. 6 Own foreign offices4 406,485 23,789 130,891 42,705 209,100 470,070 22,383 148,374 51,677 247,635 513,840 21,863 152,020 51,525 288,432 523,798 22,473 157,734 54,552 289,039 516,025 22,325 156,982 56,413 280,304 512,334 21,920 154,768 58,822 276,824 510,524 21,224 152,801 61,317 275,183 501,541r 21,351 149,355r 64,636' 266,200' 515,994 19,718 155,136 63,718 277,422 529,112 21,547 157,023 56,062 294,479 134,511 90,398 148,804 101,743 170,604 115,056 167,497 108,117 166,825 106,916 165,725 102,734 161,525 98,893 162,184 99,365 163,106 99,683 163,217 98,679 15,417 28,696 16,776 30,285 16,426 39,121 16,991 42,389 17,278 42,631 18,541 44,451 17,078 45,555 16,893 45,925 17,255 46,168 17,051 47,487 11 Nonmonetary international and regional organizations 5,807 4,464 3,224 3,773 4,002 3,415 3,617 4,240 4,418 4,920 12 Banks' own liabilities 13 Demand deposits 14 Time deposits 15 Other 3,958 199 2,065 1,693 2,702 124 1,538 1,040 2,527 71 1,183 1,272 2,965 88 1,394 1,482 3,216 163 1,502 1,551 2,980 76 1,202 1,702 2,695 32 1,254 1,409 2,716 41 918 1,756 3,402 66 1,079 2,257 3,322 90 1,677 1,554 16 Banks' custody liabilities5 17 U.S. Treasury bills and certificates6 18 Other negotiable and readily transferable instruments 19 Other 1,849 259 1,761 265 698 57 808 74 786 77 435 95 922 181 1,524 345 1,016 107 1,598 84 1,590 0 1,497 0 641 0 734 0 693 16 305 35 731 10 1,179 0 909 1 1,479 35 7 Banks' custody liabilities5 8 U.S. Treasury bills and certificates 6 9 Other negotiable and readily transferable instruments 10 Other 20 Official institutions 9 103,569 120,667 135,136 129,072 135,225 129,835 124,404 126,778' 126,283 121,873 21 Banks' own liabilities 22 Demand deposits 23 Time deposits 24 Other 25,427 2,267 10,497 12,663 28,703 1,757 12,843 14,103 27,004 1,915 9,657 15,432 27,977 1,605 10,852 15,521 33,036 1,782 12,439 18,815 31,738 1,761 11,144 18,833 31,891 1,801 9,924 20,166 33,96c 1,947 9,937' 22,077 33,025 1,625 8,706 22,694 31,320 2,026 9,084 20,210 25 Banks' custody liabilities5 26 U.S. Treasury bills and certii. .-es 6 27 Other negotiable and readily . ..nsferable instruments 28 Other 78,142 75,650 91,965 88,829 108,132 103,722 101,095 95,478 102,189 %,109 98,097 91,798 92,513 87,190 92,818 87,734 93,258 88,325 90,552 85,775 2,347 145 2,990 146 4,130 280 5,466 152 5,875 205 6,114 185 5,080 244 4,821 263 4,735 198 4,588 189 29 Banks10 351,745 414,280 458,672 469,687 453,554 454,442 451,337 441,639^ 457,122 474,236 30 Banks' own liabilities 31 Unaffiliated foreign banks 32 Demand deposits 33 Time deposits 34 Other 35 Own foreign offices4 310,166 101,066 10,303 64,232 26,531 209,100 371,665 124,030 10,898 79,717 33,415 247,635 408,854 120,422 9,950 80,155 30,318 288,432 417,323 128,283 11,012 84,005 33,265 289,039 401,646 121,342 10,560 80,796 29,987 280,304 399,823 122,999 11,162 78,901 32,936 276,824 395,603 120,421 9,677 77,231 33,513 275,183 385,773' 119,574' 10,145 74,929' 34,499^ 266,200' 400,639 123,217 9,101 80,429 33,687 277,422 414,870 120,391 10,695 80,896 28,800 294,479 41,579 9,984 42,615 9,134 49,818 7,602 52,365 7,310 51,908 6,921 54,619 7,114 55,734 7,759 55,865 7,674 56,483 7,838 59,365 9,077 5,165 26,431 5,392 28,089 5,725 36,491 5,288 39,767 5,051 39,936 5,686 41,819 5,314 42,662 5,326 42,866 5,280 43,365 5,037 45,251 36 Banks' custody liabilities5 37 U.S. Treasury bills and certificates 38 Other negotiable and readily transferable instruments 39 Other 40 Other foreigners 79,875 79,463 87,411 88,763 90,068 90,366 92,691 91,068' 91,277 91,302 41 Banks' own liabilities 42 Demand deposits 43 Time deposits 44 O t h e r . 66,934 11,019 54,097 1,818 67,000 9,604 54,277 3,119 75,456 9,928 61,025 4,503 75,533 9,767 61,483 4,283 78,126 9,820 62,245 6,060 77,792 8,921 63,521 5,351 80,335 9,714 64,392 6,229 79,092' 9,218 63,571' 6,303' 78,929 8,926 64,923 5,080 79,600 8,736 65,366 5,498 45 Banks' custody liabilities5 46 U.S. Treasury bills and certificates6 47 Other negotiable and readily transferable instruments 48 Other 12,941 4,506 12,463 3,515 11,956 3,675 13,230 5,256 11,942 3,809 12,574 3,725 12,356 3,763 11,976 3,612 12,349 3,413 11,701 3,743 6,315 2,120 6,898 2,050 5,929 2,351 5,503 2,471 5,658 2,474 6,436 2,412 5,953 2,639 5,566 2,797 6,332 2,604 5,947 2,012 7,4% 7,314 6,425 5,645 5,554 5,625 5,337 5,261 5,195 5,238 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 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 1989 Area and country 1986 1987 1988 Mar. Apr. May June July Aug.' Sept.'' 1 Total 540,996 618,874 684,444 691,295 682,850 678,059 672,049 663,725r 679,101 692,329 2 Foreign countries 535,189 614,411 681,219 687,522 678,848 674,644 668,432 659,485' 674,682 687,410 180,556 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 32 582 235,989 1,155 10,022 2,180 284 24,762 6,772 672 14,599 5,316 1,559 903 5,494 1,274 34,179 1,012 115,954 529 8,598 138 591 232,141 1,436 9,316 1,639 527 26,824 5,517 760 13,475 5,600 1,547 831 4,902 1,416 30,005 1,024 115,338 440 10,771 102 670 230,769 1,608 10,115 1,615 397 25,629 6,967 927 12,959 5,610 1,783 824 5,795 1,730 29,239 1,051 111,492 465 11,519 91 953 228,141 1,405 8,819 1,642 432 24,199 7,791 1,172 12,527 5,870 1,479 985 5,419 1,552 28,448 785 112,622 478 11,887 193 435 226,058 1,505 8,624 1,179 450 23,864 9,198 889 13,951 4,875 1,485 1,089 5,085 1,478 28,806 737 107,300 558 14,322 164 499 226,264' 1,417'" 8,949' 1,348 435 22.29C 8,715' 862 12,892' 5,029 1,522 1,419' 5,910' 1,248 28,581' 1,053 109,601' 604 13,655' 175 559' 232,119 1,404 9,286 1,959 456 24,864 7,531 828 14,597 5,106 1,453 1,945 5,390 2,002 28,927 1,023 109,927 691 13,824 201 704 221,787 1,344 10,112 1,265 525 22,964 8,017 797 14,491 4,944 1,698 2,206 5,277 1,706 28,972 1,086 102,316 774 12,162 376 755 3 Europe Austria 4 5 Belgium-Luxembourg Denmark 6 7 Finland 8 France Germany 9 10 Greece 11 Italy 12 Netherlands 13 Norway 14 Portugal 15 Spain 16 Sweden 17 Switzerland 18 Turkey 19 United Kingdom Yugoslavia 20 Other Western Europe 21 U.S.S.R 22 Other Eastern Europe 23 24 Canada 26,345 30,095 21,040 25,694 23,024 18,353 17,514 17,472 16,958 17,923 25 Latin America and Caribbean Argentina 26 Bahamas 27 28 Bermuda 29 Brazil British West Indies 30 Chile 31 Colombia 32 Cuba 33 Ecuador 34 35 Guatemala 36 Jamaica Mexico 37 38 Netherlands Antilles 39 Panama 40 Peru Uruguay 41 Venezuela 42 Other 43 210,318 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 5,119 220,372 5,006 74,767 2,344 4,005 81,494 2,210 4,204 12 1,082 1,082 160 14,480 4,975 7,414 1,275 1,582 9,048 5,234 266,803 7,804 86,863 2,621 5,304 109,507 2,936 4,374 10 1,379 1,195 269 15,185 6,420 4,353 1,671 1,898 9,147 5,868 264,879 6,416 85,673 2,518 4,926 110,962 3,063 4,157 10 1,422 1,271 223 14,694 5,666 4,391 1,705 2,243 9,489 6,048 266,446 6,280 86,057 2,373 5,554 111,969 2,933 4,173 10 1,376 1,272 222 14,367 5,769 4,355 1,763 2,263 9,565 6,145 270,431 6,459 90,979 2,451 5,302 111,270 2,988 4,033 15 1,285 1,232 188 14,060 6,072 4,454 1,724 2,344 9,435 6,140 266,509 6,320 82,104 2,356 5,026 116,607 2,733 4,127 10 1,351 1,251 294 14,211 6,316 4,278 1,761 2,429 9,431 5,903 260,712' 7,397 84,526 2,269 5,396' 107,579' 2,683 4,235 9 1,411 1,297 227 13,679 6,434 4,357 1,770 2,152 9,500' 5,790 269,383 8,047 90,317 2,208 5,539 109,712 2,739 4,365 10 1,376 1,279 231 13,754 6,071 4,400 1,778 2,121 9,367 6,069 283,742 8,436 90,600 2,126 5,880 121,940 2,763 4,199 14 1,363 1,293 233 14,470 6,073 4,420 1,826 2,327 9,506 6,274 44 108,831 121,288 147,230 154,770 148,676 147,353 148,339 144,073' 145,445 153,160 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 54,322 1,637 1,085 1,345 13,988 12,788 1,892 26,058 11,738 699 1,180 1,461 73,957 2,541 1,163 1,236 12,083 13,223 1,588 26,143 10,772 900 1,588 1,156 83,013 2,827 977 1,151 12,029 12,625 1,809 28,284 11,403 1,787 1,154 967 72,689 3,023 973 1,165 12,098 13,324 1,652 26,928 12,215 1,009 1,306 1,103 70,468 3,166 991 1,162 13,505 13,851 1,432 27,025 12,132 812 1,232 1,088 71,130 3,047 984 1,274 13,612 14,571 1,522 27,125 11,346' 871 1,096 1,058 68,670' 3,556 936 1,254 12,368 14,271 1,700 25,430 12,265 940 1,042 953 70,556 2,907 1,083 1,776 12,524 14,270 1,793 24,115 12,292 875 1,042 1,035 78,482 3,037 1,055 1,430 13,025 14,979 57 Africa 58 Egypt 59 Morocco South Africa 60 61 Zaire Oil-exporting countries 62 Other 63 4,021 706 92 270 74 1,519 1,360 3,945 1,151 194 202 67 1,014 1,316 3,991 911 68 437 85 1,017 1,474 3,717 756 60 226 77 1,062 1,536 3,665 721 82 256 73 1,017 1,516 3,802 702 68 324 92 879 1,737 3,904 748 67 188 98 1,100 1,702 3,618 738 66' 231 92 942' 1,548 3,265 549 72 201 87 897 1,459 3,536 574 96 246 81 1,036 1,502 64 Other countries 65 Australia 66 All other 5,118 4,196 922 4,070 3,327 744 6,165 5,293 872 6,322 5,490 832 6,267 5,471 7% 6,563 5,700 863 6,108 5,192 916 7,346 6,620 726 7,513 6,721 792 7,261 6,517 744 67 Nonmonetary international and regional organizations International 68 69 Latin American regional Other regional 6 70 5,807 4,620 1,033 154 4,464 2,830 1,272 362 3,224 2,503 589 133 3,773 2,546 1,004 223 4,002 2,548 981 472 3,415 2,456 564 395 3,617 2,830 613 175 4,240 2,881 961 397' 4,418 3,084 690 644 4,920 3,409 1,183 328 45 46 47 48 49 50 51 57 53 54 55 56 China Mainland Taiwan Hong Kong India Indonesia Israel Japan Korea Philippines Thailand i Middle-East oil-exporting countries Other 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 1990 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 1989 Area and country 1986 1987 1988 Mar. Apr. May June July Aug. Sept.' 1 Total 444,745 459,877 491,275 504,329 495,060 490,811 490,395 480,634r 488,449 498,737 2 Foreign countries 441,724 456,472 489,205 502,290 493,225 487,029 486,918 476,846' 485,325 495,860 107,823 728 7,498 688 987 11,356 1,816 648 9,043 3,296 672 739 1,492 1,964 3,352 1,543 58,335 1,835 102,348 793 9,397 717 1,010 13,548 2,039 462 7,460 2,619 934 477 1,853 2,254 2,718 1,680 50,823 1,700 619 389 852 117,048 485 8,518 480 1,065 13,243 2,326 433 7,936 2,547 455 374 1,823 1,977 3,895 1,233 65,708 1,390 1,152 1,255 754 116,640 809 7,834 548 909 15,744 3,110 586 5,866 2,808 432 367 2,449 2,613 3,822 1,039 62,908 1,455 1,262 1,298 780 111,170 805 8,102 770 1,214 16,524 3,529 561 4,803 2,735 551 281 2,624 2,164 4,540 1,005 56,057 1,369 1,415 1,346 775 112,975 764 8,435 470 1,280 16,092 3,959 595 5,627 3,183 567 371 2,209 2,158 3,975 910 58,076 1,366 966 1,155 820 112,240 809 7,780 774 1,175 15,574 3,695 632 6,813 2,025 667 328 2,190 1,946 5,485 886 56,891 1,359 1,161 1,212 838 106,451' 854 7,558 562 1,433 15,970' 3,460 602 5,994 1,950' 796 283 2,092 2,003 4,123 891 53,463 1,406 974 1,227 sio' 107,349 549 7,510 768 1,401 16,415 3,320 624 5,494 1,447 665 264 1,738 2,046 4,479 960 54,801 1,346 1,247 1,456 819 111,390 426 7,404 557 1,233 16,248 3,463 634 5,920 1,992 644 252 1,678 2,286 5,032 1,025 57,605 1,338 1,249 1,574 829 3 Europe 4 Austria 5 Belgium-Luxembourg 6 Denmark 7 Finland 8 France 9 Germany 10 Greece 11 Italy 12 Netherlands 13 Norway 14 Portugal 15 Spain 16 Sweden 17 Switzerland 18 Turkey 19 United Kingdom 20 Yugoslavia 21 Other Western Europe 22 U.S.S.R 23 Other Eastern Europe 24 Canada 345 948 21,006 25,368 18,889 19,048 19,150 16,072 16,089 14,493 15,073 14,752 25 Latin America and Caribbean 26 Argentina 27 Bahamas 28 Bermuda 29 Brazil 30 British West Indies 31 Chile 32 Colombia 33 Cuba 34 Ecuador 35 Guatemala4 36 Jamaica4 37 Mexico 38 Netherlands Antilles 39 Panama 40 Peru 41 Uruguay 42 Venezuela 43 Other Latin America and Caribbean 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 1,936 214,789 11,996 64,587 471 25,897 50,042 6,308 2,740 1 2,286 144 188 29,532 980 4,744 1,329 963 10,843 1,738 214,233 11,826 67,006 483 25,735 55,790 5,217 2,944 1 2,075 198 212 24,637 1,321 2,536 1,013 910 10,733 1,597 220,812 11,616 72,804 707 25,618 57,602 5,335 2,746 1 2,032 199 251 24,188 1,013 2,460 947 875 10,761 1,659 219,970 11,516 75,665 361 25,947 54,424 5,224 2,661 2 2,025 210 266 24,077 1,009 2,433 947 876 10,659 1,668 217,962 11,381 70,552 449 25,785 57,960 5,266 2,600 1 1,944 207 265 24,038 999 2,475 938 832 10,600 1,670 219,267 10,840 66,611 391 25,675 64,870 4,841 2,581 1 1,894 200 286 23,653 1,183 2,438 874 8% 10,551 1,482 217,0%' 10,724 70,468' 463 25,824' 59,437' 4,770 2,523 9 1,932 188 270 23,356 1,162' 2,320 867 854 10,269' 1,659' 215,731 10,729 68,113 522 25,597 61,202 4,780 2,501 1 1,917 202 272 23,155 1,026 2,030 870 866 10,024 1,922 219,234 10,459 70,639 1,104 24,915 63,215 4,685 2,472 1 1,904 1% 282 22,802 1,059 1,833 823 899 10,064 1,882 44 Asia China Mainland 46 Taiwan 47 Hong Kong 48 India 49 Indonesia 50 Israel 51 Japan 52 Korea 53 Philippines 54 Thailand 55 Middle East oil-exporting countries 56 Other Asia 96,126 106,0% 130,906 137,097 134,439 131,578 130,578 130,235' 137,624 140,594 787 2,681 8,307 321 723 1,634 59,674 7,182 2,217 578 4,122 7,901 %8 4,592 8,218 510 580 1,363 68,658 5,148 2,071 496 4,858 8,635 762 4,184 10,148 560 674 1,136 90,162 5,219 1,876 849 6,213 9,122 988 4,179 7,900 563 649 1,050 101,501 5,183 1,913 986 5,409 6,776 816 3,952 8,293 425 726 1,052 97,666 5,198 1,839 1,018 5,237 8,217 952 3,715 8,855 411 690 1,045 93,447 5,338 1,810 975 5,522 8,818 920 4,058 8,557 537 671 1,019 91,086 5,615 1,763 1,058 6,550 8,745 644 3,946 8,153 477 645 %1 91,764 5,774 1,607 1,061 5,550 9,654' 575 3,356 8,789 547 614 902 96,079 6,007 1,543 1,117 8,879 9,216 590 3,355 10,338 638 606 857 97,618 5,691 1,618 1,203 8,627 9,454 57 Africa 58 Egypt 59 Morocco 60 South Africa 61 Zaire 62 Oil-exporting countries 63 Other 4,650 567 598 1,550 28 694 1,213 4,742 521 542 1,507 15 1,003 1,153 5,718 507 511 1,681 17 1,523 1,479 5,974 543 541 1,702 17 1,481 1,690 6,087 541 532 1,742 19 1,474 1,778 6,084 541 538 1,753 19 1,504 1,729 6,075 534 531 1,746 17 1,503 1,744 6,066 577 518 1,702 17 1,587 1,664 6,037 494 535 1,713 16 1,608 1,670 6,024 501 524 1,705 20 1,629 1,645 64 Other countries 65 Australia 66 All other 3,294 1,949 1,345 3,129 2,100 1,029 2,410 1,517 894 2,720 1,686 1,034 2,409 1,505 905 2,359 1,167 1,192 2,670 1,307 1,363 2,505 1,518 987 3,512 2,499 1,013 3,867 2,952 915 67 Nonmonetary international and regional organizations7 3,021 3,404 2,071 2,039 1,835 3,782 3,477 3,787 3,124 2,877 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 1989 Type of claim 1986 1987 1988 Mar. Apr. May June 490,811 63,789 257,271 130,488 67,407 63,081 39,263 490,395 62,636 258,020 128,391 68,306 60,085 41,349 1 Total 478,650 497,635 538,799 557,507 2 Banks' own claims on foreigners 3 Foreign public borrowers 4 Own foreign offices 5 Unaffiliated foreign banks Deposits 6 Other 7 8 All other foreigners 444,745 64,095 211,533 122,946 57,484 65,462 46,171 459,877 64,605 224,727 127,609 60,687 66,922 42,936 491,275 62,700 257,405 129,487 65,898 63,588 41,684 504,329 62,973 271,968 130,111 66,567 63,544 39,278 33,905 4,413 37,758 3,692 47,524 8,289 53,178 12,084 49,531 11,153 24,044 26,696 25,700 24,960 22,017 5,448 7,370 13,535 16,134 16,362 25,706 23,107 19,568 17,173 16,825 43,984 40,857 45,391 47,225 9 Claims of banks' domestic customers 3 ... 11 July' Aug/ Sept." 480,634 62,694 248,716 128,924 68,888 60,036 40,300 488,449 62,654 251,922 132,429 72,413 60,016 41,444 498,737 61,924 265,568 131,031 72,827 58,204 40,214 48,514 49,494 n.a. 539,927 495,060 63,248 259,693 131,104 69,283 61,821 41,016 Negotiable and readily transferable 12 Outstanding collections and other 13 MEMO: C u s t o m e r liability o n Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States . . . . 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, and foreign branches, agencies, or wholly owned subsidiaries of head office or 47,897 49,491 46,687 R 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. 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 1988 Maturity; by borrower and area 1 Total 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 By borrower Maturity of 1 year or less2 Foreign public borrowers All other foreigners Maturity over 1 y e a r Foreign public borrowers All other foreigners By area Maturity of 1 year or less Europe Canada Latin America and Caribbean Asia Africa All other 3 Maturity of over 1 year 2 Europe Canada Latin America and Caribbean Asia Africa All other 3 1985 1989 1987 Sept. Dec. Mar. June 227,903 232,295 235,130 230,608 233,280 231,454 231,468 160,824 26,302 134,522 67,078 34,512 32,567 160,555 24,842 135,714 71,740 39,103 32,637 163,997 25,889 138,108 71,133 38,625 32,507 168,121 29,390 138,731 62,488 35,481 27,007 172,730 26,602 146,128 60,550 35,315 25,235 168,377 24,135 144,242 63,077 37,922 25,155 167,441 23,688 143,753 64,028 38,050 25,978 56,585 6,401 63,328 27,966 3,753 2,791 61,784 5,895 56,271 29,457 2,882 4,267 59,027 5,680 56,535 35,919 2,833 4,003 54,277 6,410 55,730 42,368 3,120 6,216 56,031 6,282 58,004 46,188 3,337 2,888 57,878 5,115 53,268 45,675 3,610 2,831 58,355 5,693 50,717 45,309 3,601 3,765 7,634 1,805 50,674 4,502 1,538 926 6,737 1,925 56,719 4,043 1,539 111 6,696 2,661 53,817 3,830 1,747 2,381 5,307 2,031 48,325 3,943 2,257 625 4,664 1,922 47,548 3,613 2,301 501 4,507 2,309 49,790 3,699 2,292 480 4,608 2,592 50,133 3,815 2,408 472 1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers. 1986 2. Remaining time to maturity, 3. Includes nonmonetary international and regional organizations. A63 A64 3.21 International Statistics • January 1990 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2 Billions of dollars, end of period 1987 Area or country 1 Total 1985 1988 1989 1986 June Sept. Dec. Mar. June Sept. Dec.' Mar.' June" 389. V 386.5' 385.C 387.r 382.4' 371.4' 352.2' 354.3' 346.8 345.8 339.5 147.0' 9.4r 12. y 10.5 9.7' 3.8' 2.8' 4.4 63.3' 6.8 24. r 156.6 8.4' 13.6' 11.6 9.0 4.6 2.4 5.8 10.9 5.2' 25.1' 157.7' 8.4' 12.5 11.2 7.7' 7.3 2.3' 5.7 71.7' 4.5' 26.4' 154.8' 8.1' 13.6' 10.5 6.8' 4.8 2.6 5.4 72.0' 4.6' 26.4' 159.7' 10.0' 13.7' 12.6 7.5' 4.1 2.1 5.6 68.8' 5.5 29.8 156.8' 9.1' 11.8 11.8 7.4 3.3 2.1' 5.1 71.7' 4.7' 29.7' 151.0' 9.2 10.9r 10.6 6.3' 3.2' 1.9 5.6 70.4' 5.3' 27.6' 148.9' 9.5' 10.3' 9.2' 5.6' 2.9 1.9 5.2 67.6' 4.9' 31.8' 153.1 9.0 10.5 10.3 6.8 2.7 1.8 5.4 66.2 5.0 35.3 145.7 8.6 11.2 10.2 5.2 2.8 2.3 5.1 65.4 4.0 30.9 144.8 7.8 10.8 10.6 6.1 2.8 1.8 5.3 64.5 5.1 30.1 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 30.3r 1.6r 2.4' 1.6 2.6 2.9 1.3' 5.8 2 .or 2.0 3.2 5.0 26.1' 1.7 1.7 1.4 2.3 2.4 .9 5.8 2.0' 1.5' 3.0 3.4' 25.5' 1.8 1.6' 1.4 2.0 2.1 .8 6.1 2.1' 1.6' 3.1' 3.0' 26.3' 1.8' 1.6 1.4 1.9 2.0 .9 7.4 1.9' 1.6 2.9 2.9 26.4' 1.9 1.7 1.2' 2.0 2.2' .6' 8.0 2.0' 1.6 2.9 2.4 26.4' 1.6 1.4 l.C 2.3 1.9 .5' 8.9r 2.0' 1.9' 2.8 2.0' 24.0T 1.6 1.1' 1.2 2.1' 1.9' .4 7.2 1.8' 1.7 2.8 2.2 23. or 1.6 1.2' 1.3 21.0 1.5 1.1 1.1 1.8 1.8 .4 6.2 1.5 1.3 2.4 1.8 21.0 1.4 1.1 1.0 1.6 .4 6.6 1.3 1.1 2.2 2.4 21.2 1.7 1.4 1.0 2.3 1.8 .6 6.2 1.2 1.1 2.1 1.9 25 OPEC countries3 26 Ecuador 27 Venezuela 28 Indonesia 29 Middle East countries 30 African countries 21.5' 2.1 9.0' 3.0 5.4' 2.0 19.4' 2.2 8.7' 2.5 4.3 1.8' 19.1' 2.1 8.5' 2.2 4.5' 1.8' 19.2' 2.1 8.3 2.0 5.0 1.8' 17.4' 1.9 8.1 1.9 3.6 l^ 17.6' 1.9 8.1' 1.8' 3.9' 1.9 n Sf 1.8 8.0 1.8' 3.5' 1.9' 11.9 1.8 7.9 1.8' 4.6' 16.6 1.7 7.9 1.7 3.4 1.9 16.2 1.6 7.9 1.7 3.3 1.7 16.0 1.5 7.5 1.9 3.4 1.6 IOS.O' 99.6' 100.8' 98. <r 97.8' 94.4 91.8' 87.2' 85.3 85.4 83.1 9.9 25.5' 7.C 2.6 24.3' 1.8 3.5' 9.5 25.3' 7.1 2.1 24.0' 1.4 3.1 9.6' 25.0' 7.2 2.0' 25.3 1.3 3.(y 9.4' 25.1 7.1' 2.0' 24.7' 1.2 2.8 9.5' 24.7 6.9 2.0 23.5' 1.1 2.8' 9.6' 23.8' 6.6 2.0' 22.4' 1.1 2.8 9.5' 23.7 6.4 2.2' 21.1 .9 2.6 9.3' 22.4 6.3' 2.1 20.4' .8 2.5 9.0 22.4 5.6 2.1 18.8 .8 2.6 8.4 22.7 5.7 1.9 18.0 .7 2.7 7.9 22.0 5.1 1.7 17.5 .6 2.5 2 G-10 countries and Switzerland 3 Belgium-Luxembourg 4 France 5 Germany 6 Italy 7 Netherlands 8 Sweden Switzerland 9 10 United Kingdom 11 Canada 12 Japan 31 Non-OPEC developing countries 2.1 2.0 .4 6.3 1.6' 1.9 2.7 1.8 2.1 32 33 34 35 36 37 38 Latin America Argentina Brazil Chile Colombia Mexico Peru Other Latin America 39 40 41 42 43 44 45 46 47 Asia China Mainland Taiwan India Israel Korea (South) Malaysia Philippines Thailand Other Asia .5 4.5 1.2 1.6 9.3' 2.4 5.7 1.4 1.0 .4 4.9 1.2 1.5 6.7' 2.1 5.4 .9 .7 .6 6.6 1.7 1.3 5.7' 1.7 5.4 .8 .7 .3 6.0 1.9 1.3 5.0' 1.6 5.4 .7 .7 .3 8.2 1.9 1.0 5.0' 1.5 5.2' .7 .7 .4 6.1 2.1 1.0 5.7' 1.5 5.1 1.0 .7 .4' 4.9 2.3 1.0 5.9 1.5 4.9 1.1 .8 .2 3.2 2.0 1.0 6.0 1.7' 4.7 1.2 .8 .3 3.7 2.1 1.2 6.1 1.6 4.5 1.1 .9 .5 4.9 2.6 .9 6.1 1.7 4.4 1.0 .8 .3 5.2 2.4 .8 6.6 1.6 4.4 1.0 .8 48 49 50 51 Africa Egypt Morocco Zaire Other Africa 4 1.0 .9 .1 1.9 .7 .9 1 1.6 .6 .9 .1 1.3 .6 .9 .1 1.3 .6' .9 .0 1.3 .5 .9 .1 1.2 .6 .9 .1 1.2 .5 .8 .0 1.2 .4 .9 .0 1.1 .5 .9 .0 1.1 .6 .9 .0 1.1 52 Eastern Europe 53 U.S.S.R 54 Yugoslavia 55 Other 4.4' .1 2.4' l^ 3.5' .1 2.0' 1.4 3.6' .3 2.0' 1.3 3.6' .4' 1.9' 1.2 3.2' .3' 1.8' 1.1' 3.1' .3 1.0' 3.3' .4 1.9' 1.0 3.1' .4 1.8' 1.0 3.6 .7 1.8 1.1 3.5 .7 1.7 1.1 3.4 .6 1.6 1.1 56 Offshore banking centers 57 Bahamas 58 Bermuda 59 Cayman Islands and other British West Indies 60 Netherlands Antilles 61 Panama 5 62 Lebanon 63 Hong Kong 64 Singapore 65 Others 6 64.0' 21.5' .7 12.2' 2.2 6.0 .1 11.5' 9.8 .0 61.5r 22.4' .6' 12.3' 1.8 4.0 .1 11.1 9.2 .0 60.1' 20.1' .6 13.1' 1.3 3.9 .1 12.5 8.4' .0 63.7' 25.'7' .6 ll^ 1.2 3.7 .1 12.3 8.1 .0 54.5' 17.3' .6 13.5' 1.2 3.7 .1 11.2 7.0 .0 51.5' 15.9 .8 11.6' 1.3 3.2' .1 11.3 7.4 .0 43.0 &.9 1.0 10.3' 1.2 3.0 .1 11.6' 6.9' .0 47.3' 12.9 .9 ll^ 1.2 2.7 .1 10.5' 7.0 .0 44.3 11.1 .9 12.9 1.0 2.6 .1 9.6 6.1 .0 48.4 15.8 1.1 11.9 .9 2.3 .1 9.6 6.8 .0 43.2 11.0 .7 10.8 .9 1.9 .1 10.4 7.3 .0 66 Miscellaneous and unallocated7 16.9 19.8 18.1 22.3 23.2 21.5 22.2' 26.7 22.6 25.1 27.4 1. The banking offices covered by these data are the U.S. offices and foreign branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. Offices not covered include (1) U.S. agencies and branches of foreign banks, and (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign branch of the same banking institution. The data in this table combine foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims of U.S. offices in table 3.18 (excluding those held by agencies and branches of foreign banks and those constituting claims on own foreign branches). 2. Beginning with June 1984 data, reported claims held by foreign branches have been reduced by an increase in the reporting threshold for "shell" branches from $50 million to $150 million equivalent in total assets, the threshold now applicable to all reporting branches. 3. 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 1988 Type, and area or country 1985 1986 1989 1987 Mar. June Sept. Dec. Mar. June 1 Total 27,825 25,587 28,302 29,792 30,107 32,196 33,417 36,986 36,579 2 Payable in dollars 3 Payable in foreign currencies 24,296 3,529 21,749 3,838 22,785 5,517 24,012 5,780 24,805 5,302 26,967 5,229 27,831 5,586 31,195 5,790 31,604 4,975 By type 4 Financial liabilities 5 Payable in dollars 6 Payable in foreign currencies 13,600 11,257 2,343 12,133 9,609 2,524 12,424 8,643 3,781 14,139 10,145 3,994 13,894 10,234 3,660 14,877 11,283 3,594 14,917 11,049 3,868 17,164 13,084 4,080 16,644 12,882 3,762 14,225 6,685 7,540 13,039 1,186 13,454 6,450 7,004 12,140 1,314 15,878 7,305 8,573 14,142 1,737 15,653 6,454 9,200 13,867 1,786 16,213 6,768 9,446 14,571 1,642 17,319 6,480 10,839 15,684 1,635 18,500 6,454 12,045 16,782 1,718 19,822 6,921 12,901 18,111 1,711 19,935 6,227 13,708 18,722 1,213 7,700 349 857 376 861 610 4,305 7,917 270 661 368 542 646 5,140 8,320 213 382 551 866 558 5,557 9,377 251 408 553 990 691 6,301 9,030 282 371 503 862 638 6,201 10,295 339 372 488 996 687 7,243 9,712 289 267 548 879 1,163 6,418 12,143 320 249 372 933 954 9,121 10,849 357 274 470 834 936 7,799 7 Commercial liabilities 8 Trade payables 9 Advance receipts and other liabilities 10 Payable in dollars 11 Payable in foreign currencies 12 13 14 15 16 17 18 By area or country Financial liabilities Europe Belgium-Luxembourg France Germany Netherlands Switzerland United Kingdom 19 Canada 839 399 360 394 412 431 650 616 544 20 7.1 77 23 24 25 26 Latin America and Caribbean Bahamas Bermuda Brazil British West Indies Mexico Venezuela 3,184 1,123 4 29 1,843 15 3 1,944 614 4 32 1,146 22 0 1,189 318 0 25 778 13 0 1,452 289 0 0 1,099 15 2 1,448 250 0 0 1,154 26 0 1,057 238 0 0 812 2 0 1,239 184 0 0 645 1 0 677 189 0 0 471 15 0 1,406 165 0 0 621 17 0 27 28 29 Asia Japan Middle East oil-exporting countries 1,815 1,198 82 1,805 1,398 8 2,451 2,042 8 2,836 2,375 11 2,928 2,331 11 3,088 2,435 4 3,312 2,563 3 3,722 2,950 1 3,841 3,082 11 30 31 Africa Oil-exporting countries 12 0 1 1 4 1 5 3 2 1 3 1 1 0 5 3 3 2 32 All other 4 50 67 100 75 74 3 2 2 0 4,074 62 453 607 364 379 976 4,446 101 352 715 424 385 1,341 5,505 132 426 908 423 559 1,588 5,619 154 414 810 457 527 1,722 5,722 147 408 791 508 482 1,771 6,688 206 438 1,185 647 486 2,110 7,347 170 459 1,699 591 417 2,063 7,772 134 574 1,361 668 457 2,444 7,782 116 521 1,140 687 456 2,688 33 34 35 36 37 38 39 Commercial liabilities Europe Belgium-Luxembourg France Germany Netherlands Switzerland United Kingdom 40 Canada 1,449 1,405 1,301 1,392 1,167 1,109 1,218 1,152 1,119 41 47 43 44 45 46 47 Latin America and Caribbean Bahamas Bermuda Brazil British West Indies Mexico Venezuela 1,088 12 77 58 44 430 212 924 32 156 61 49 217 216 864 18 168 46 19 189 162 980 19 325 59 14 164 122 1,035 61 272 54 28 233 140 997 19 222 58 30 177 204 1,118 49 286 95 34 179 177 1,262 35 426 102 31 197 179 1,660 34 388 538 42 181 184 6,046 1,799 2,829 5,080 2,042 1,679 6,565 2,578 1,964 5,883 2,508 1,062 6,279 2,659 1,320 6,632 2,763 1,298 6,910 3,091 1,386 7,435 3,048 1,526 6,937 2,697 1,430 48 49 50 Japan . Middle East oil-exporting countries • 51 52 Africa Oil-exporting countries 587 238 619 197 574 135 575 139 626 115 477 106 578 202 706 272 768 253 53 All other 4 982 980 1,068 1,204 1,383 1,415 1,328 1,4% 1,670 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 1990 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS United States1 Reported by Nonbanking Business Enterprises in the Millions of dollars, end of period 1988 Type, and area or country 1985 1986 1989 1987 Mar. June Sept. Dec. Mar. June 1 Total 28,876 36,265 30,964 31,089 37,641 38,114 33,412 31,482 34,272' 2 Payable in dollars 3 Payable in foreign currencies 26,574 2,302 33,867 2,399 28,502 2,462 29,026 2,063 35,613 2,028 35,695 2,419 31,164 2,249 29,254 2,227 32,097r 2,175' 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 20,363 14,903 13,775 1,128 5,460 4,646 814 20,326 12,697 12,121 576 7,629 6,509 1,120 26,274 19,492 18,775 718 6,781 5,886 895 27,011 19,079 18,145 934 7,932 6,990 942 21,482 15,763 14,744 1,019 5,719 4,995 724 19,613 14,733 13,886 847 4,881 4,007 874 22,247' 17,217'" 16,337' 879' 5,031' 4,213' 818 11 Commercial claims 12 Trade receivables 13 Advance payments and other claims 9,986 8,696 1,290 9,992 8,783 1,209 10,600 9,535 1,065 10,763 9,650 1,113 11,367 10,332 1,036 11,103 10,109 993 11,930 10,845 1,085 11,868 10,604 1,264 12,025' 10,827' 1,197' 14 15 9,333 652 9,530 462 10,081 519 10,397 366 10,952 415 10,560 542 11,425 505 11,361 507 11,546' 478 6,929 10 184 223 161 74 6,007 10,744 41 138 116 151 185 9,855 9,531 7 332 102 350 65 8,467 9,805 15 308 92 333 54 8,789 11,512 16 181 168 335 105 10,430 10,537 49 278 123 356 84 9,321 9,942 10 224 138 344 215 8,659 9,119 11 230 180 383 203 7,801 8,920' 155 191 233 290 70 7,644' 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 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 3,260 4,808 2,844 2,669 2,913 3,612 2,338 2,210 2,611' 24 25 26 27 28 29 30 Latin America and Caribbean Bahamas Bermuda Brazil British West Indies Mexico Venezuela 7,846 2,698 6 78 4,571 180 48 9,291 2,628 6 86 6,078 174 21 7,012 1,994 7 63 4,433 172 19 6,483 2,329 43 86 3,503 154 34 10,854 4,176 87 46 6,045 146 27 11,814 4,064 188 44 7,055 133 27 8,128 1,847 19 47 5,729 151 21 7,216 2,173 25 49 4,549 117 25 8,981' 1,875' 125 78 6,494' 114 31 31 32 33 Asia Japan Middle East oil-exporting countries 731 475 4 1,317 999 7 879 605 8 1,294 1,133 5 876 646 5 927 737 5 799 603 4 928 685 8 1,372' 975' 7 34 35 Africa Oil-exporting countries 3 103 29 85 28 65 7 53 7 60 9 95 9 106 10 89 8 80 8 21 28 33 24 58 26 169 51 284 3,533 175 426 346 284 284 898 3,725 133 431 444 164 217 999 4,180 178 650 562 133 185 1,073 4,170 193 552 637 150 173 1,059 4,694 158 684 773 172 262 1,095 4,295 171 542 613 145 183 1,179 5,010 176 671 611 208 322 1,306 4,901 201 752 643 156 246 1,282 36 37 38 39 40 41 42 43 All other 4 Commercial claims Europe Belgium-Luxembourg France Germany Netherlands Switzerland United Kingdom 4,893' 200' 767' 639' 191 218 1,333' 44 Canada 1,023 934 936 1,166 937 977 974 1,100 1,168' 45 46 47 48 49 50 51 Latin America and Caribbean Bahamas Bermuda Brazil British West Indies Mexico Venezuela 1,753 13 93 206 6 510 157 1,857 28 193 234 39 412 237 1,930 19 170 226 26 368 283 1,930 14 171 209 24 374 274 2,067 13 174 232 25 411 304 2,104 12 161 234 22 463 266 2,229 36 229 298 21 457 226 2,100 34 234 277 23 476 211 2,083 14 236 314 29 428 229 52 53 54 Asia Japan Middle East oil-exporting countries 2,982 1,016 638 2,755 881 563 2,915 1,158 450 2,853 1,107 408 2,994 1,168 446 3,029 963 437 2,955 934 441 3,090 1,032 421 3,129' 982 437 55 56 Africa Oil-exporting countries3 437 130 500 139 401 144 419 126 425 136 425 137 435 122 386 95 397 111' 257 222 238 225 250 273 328 290 354 57 All other 4 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 1989 Transactions, and area or country 1987 1989 1988 Jan.Sept. Mar. Apr. May June July Aug. Sept." 24,311 20,640 17,115 15,084 22,097' 20,939' 19,333 16,834 U.S. corporate securities STOCKS 1 Foreign purchases 2 Foreign sales 249,122 232,849 181,185 183,185 161,005 150,326 15,819 15,447 14,101 14,241 17,904 16,846 3 Net purchases, or sales ( - ) 16,272 -2,000 10,679 372 -141 1,058 3,671 2,031r 1,158 2,498 4 Foreign countries 16,321 -1,825 10,956 509 -134 1,060 3,689 2,047 1,141 2,550 1,932 905 -70 892 -1,123 631 1,048 1,318 -1,360 12,896 11,365 123 365 -3,350 -281 218 -535 -2,243 -954 1,087 1,238 -2,474 1,365 1,922 188 121 2,231 96 -591 -15 -2,289 4,067 -131 3,433 3,055 2,069 2,115 110 190 73 70 59 5 91 -106 130 635 220 -536 -458 5 -19 181 168 17 -125 -141 287 -66 120 -345 -28 -16 10 -7 -293 -123 -215 -76 -293 494 -75 391 206 784 763 -1 50 418 -15 -155 131 -114 329 168 168 1,679 1,201 1,215 16 40 778 75 -79 12 -23 545 8 108 456 729 626 2 -34 -110 -251 -238 -64' -344 772 14 250 553 423 424 22 -11 1,409 -25 -69 37 61 871 -269 578 120 643 611 24 45 -48 -176 -278 -137 . -6 -2 -18 -17 17 -52 5 6 7 8 9 10 11 12 13 14 15 16 17 Europe France Germany Netherlands Switzerland United Kingdom Canada Latin America and Caribbean Middle East 1 Other Asia Japan Africa Other countries 18 Nonmonetary international and regional organizations BONDS2 105,856 86,363 84,973 10,423 9,736 8,329 10,856 10,044 10,943 8,895 20 Foreign sales 19 Foreign purchases 78,312 58,395 62,979 7,025 5,270 8,776 9,043 7,526 9,046 6,801 21 Net purchases, or sales (—) 27,544 27,968 21,994 3,398 4,466 -447 1,813 2,518 1,897 2,095 22 Foreign countries 26,804 28,510 21,477 3,358 4,465 -570 1,690 2,550 1,920 1,795 21,989 194 33 269 1,587 19,770 1,296 2,857 -1,314 2,021 1,622 16 -61 17,243 143 1,344 1,514 505 13,088 711 1,931 -178 8,900 7,686 -8 -89 14,154 420 -202 636 198 12,580 819 2,402 -498 4,371 2,447 20 208 2,794 -16 148 69 4 2,578 213 301 87 -50 -285 5 8 3,102 27 135 51 90 2,252 115 219 3 990 608 4 33 -55 93 -170 9 -114 665 59 136 -100 -615 -722 0 5 2,132 6 -162 395 -110 1,881 -188 271 -613 83 -67 1 4 1,976 121 -53 -22 81 1,937 79 300 36 53 -25 3 103 192 -35 -121 96 13 -9 76 62 27 1,574 1,167 5 -17 1,459 77 -33 28 -27 1,376 156 233 30 -108 -189 -3 30 740 -542 517 41 1 122 123 -32 -23 299 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 East 1 Other Asia Japan Africa Other countries 36 Nonmonetary international and regional organizations Foreign securities 37 Stocks, net purchases, or sales ( - ) 1,081 -1,918 -8,929 -153 -947 -1,322 -2,077 -748 -1,489' -657 95,458 94,377 75,211 77,128 73,478 82,407 9,477 9,630 6,686 7,633 7,748 9,070 9,111 11,188 7,595' 8,343' 9,487' 10,976' 8,449 9,106 40 Bonds, net purchases, or sales ( - ) 41 Foreign purchases 42 Foreign sales -7,946 199,089 207,035 -7,221 217,932 225,153 -5,431 173,387 178,818 -653 23,395 24,047 -196 15,525 15,721 -107 17,242 17,350 -1,524 21,016 22,540 -1,414 20,206' 21,621' 993' 24,077' 23,084' -1,836 18,300 20,136 43 Net purchases, or sales (—), of stocks and bonds . . . . -6,865 -9,138 -14,360 -805 -1,143 -1,430 -3,601 -2,163' -4%' -2,493 44 Foreign countries -6,757 -9,619 -14,587 -998 -1,350 -1,633 -3,401 —2,315r -682' -1,926 -12,101 -4,072 828 9,299 89 -800 -7,632 -3,735 1,384 985 -54 -567 -14,510 -3,699 617 3,452 13 -460 -1,402 -585 161 883 -16 -40 -1,757 194 197 70 10 -64 -1,520 -555 -90 700 13 -180 -3,876 -699 27 1,191 3 -47 -2,37c -692 -76 805' 12 7 -620' -258 313 301 -4 -414 -2,116 -194 -61 411 -3 39 -108 480 228 192 207 203 -200 152 186 -568 38 39 45 46 47 48 49 50 Foreign purchases Foreign sales Europe Canada Latin America and Caribbean Asia Africa Other countries 51 Nonmonetary international and regional organizations 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). 2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securi- ties sold abroad by U.S. corporations organized to finance direct investments abroad. A68 International Statistics • January 1990 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1989 Country or area 1987 1989 1988 Jan.Sept. Mar. Apr. May June July Aug. Sept." Transactions, net purchases or sales ( - ) during period 1 1 Estimated total2 25,587 48,868 47,568 8,639 29 7,043 -5,202 -1,317 21,979r 4,787 30,889 48,206 48,012 8,296 291 5,520 -5,319 -773 22,406r 5,646 3 Europe 2 4 Belgium-Luxembourg 5 Germany 6 Netherlands 7 Sweden 8 Switzerland 9 United Kingdom 10 Other Western Europe 11 Eastern Europe 12 Canada 23,716 653 13,330 -913 210 1,917 3,975 4,563 -19 4,526 14,353 923 -5,268 -356 -323 -1,074 9,674 10,786 -10 3,761 31,478 838 4,383 3% 951 2,419 16,060 6,453 -21 -69 2,142 -23 -181 242 -508 1,767 1,207 -363 0 -55 -1,814 -87 -693 -643 398 440 -1,298 74 -5 114 4,498 88 -179 -638 -69 -83 3,873 1,511 -5 157 -1,305 13 -1,106 -674 647 378 -133 -423 -6 -478 4,357 82 2,622 100 110 -361 1,024 786 -5 -533 15,191 413 2,503 1,304 241 -748 9,863 1,614 0 1,028 2,494 216 510 302 -50 374 339 802 0 -373 13 Latin America and Caribbean 14 Venezuela 15 Other Latin America and Caribbean 16 Netherlands Antilles 17 18 Japan 19 Africa 20 All other -2,192 150 -1,142 -1,200 4,488 868 -56 407 713 -109 1,130 -308 27,606 21,752 -13 1,786 1,434 112 -305 1,626 15,118 958 54 -4 113 -53 132 34 5,659 1,855 -2 439 -133 -18 -231 117 1,743 2,624 32 350 -179 0 -78 -101 1,734 1,646 -3 -687 643 1 -14 656 -5,577 -7,780 66 1,332 839 71 104 665 -4,954 -5,360 -5 -477 -280 120 217 -617 7,118' 3,009 -48 -603 10 29 -519 500 2,816 2,346 0 698 21 Nonmonetary international and regional organizations 22 International 23 Latin America regional -5,302 -4,387 3 661 1,106 -31 -444 -670 72 344 424 -8 -262 -252 -21 1,523 1,340 70 117 -253 191 -544 -546 3 -42T -576 75 -858 -512 -228 Memo 24 Foreign countries 25 Official institutions 26 Other foreign2 30,889 31,064 -176 48,206 26,624 21,582 48,012 24,878 23,135 8,296 6,549 1,747 291 -842 1,133 5,520 -1,068 6,588 -5,319 449 -5,768 -773 2,819 -3,592 22,406' 9,957r 12,44? 5,646 695 4,950 -3,142 16 1,963 1 10,950 0 2,607 0 -471 0 -299 0 670 0 422 0 3,677 0 654 0 2 Foreign countries 27 28 2 Oil-exporting countries Middle East 3 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 Oct. 31, 1989 Rate on Oct. 31, 1989 Country Austria.. Belgium . Brazil . . . Canada.. Denmark Rate on Oct. 31, 1989 Country Percent Month effective 6.0 10.25 49.0 12.42 10.5 June 1989 Oct. 1989 Mar. 1981 Oct. 1989 Oct. 1989 Country 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 10.25 6.0 13.5 3.75 7.0 Oct. 1989 Oct. 1989 Mar. 1989 Oct. 1989 Oct. 1989 Norway Switzerland . United Kingdom'' Venezuela Percent Month effective 8.0 6.0 June 1983 Oct. 1989 8.0 Oct. 1985 or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per year, averages of daily figures 1989 Country, or type 1 2 3 4 5 6 7 8 9 10 1986 1987 1988 May June July Aug. Sept. Oct. Nov. Eurodollars United Kingdom Canada Germany Switzerland 6.70 10.87 9.18 4.58 4.19 7.07 9.65 8.38 3.97 3.67 7.85 10.28 9.63 4.28 2.94 9.66 13.08 12.44 6.96 7.26 9.28 14.17 12.35 6.92 7.09 8.85 13.91 12.24 7.00 6.92 8.71 13.86 12.30 6.99 7.01 8.85 13.99 12.32 7.37 7.42 8.67 15.03 12.29 8.08 7.63 8.42 15.07 12.35 8.22 7.68 Netherlands France Italy Belgium Japan 5.56 7.68 12.60 8.04 4.96 5.24 8.14 11.15 7.01 3.87 4.72 7.80 11.04 6.69 3.96 7.30 8.81 12.27 8.45 4.25 7.11 8.89 12.35 8.51 4.46 7.07 9.05 12.46 8.46 4.71 7.15 8.95 12.52 8.44 4.80 7.53 9.20 12.40 8.66 4.88 8.08 9.89 12.63 9.51 5.25 8.40 10.41 12.67 9.81 5.71 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. A70 International Statistics • January 1990 3.28 FOREIGN EXCHANGE RATES1 C u r r e n c y units p e r dollar 1989 1988 Country/currency 1 2 3 4 5 6 Australia/dollar 2 Austria/schilling Belgium/franc Canada/dollar China, P.R./yuan Denmark/krone June July Aug. Sept. Oct. 67.095 15.260 44.664 1.3896 3.4616 8.0955 70.137 12.649 37.358 1.3259 3.7314 6.8478 78.409 12.357 36.785 1.2306 3.7314 6.7412 75.606 13.913 41.414 1.1986 3.7314 7.7087 75.658 13.308 39.560 1.1891 3.7314 7.3527 76.345 13.570 40.310 1.1758 3.7314 7.4938 77.271 13.733 40.841 1.1828 3.7314 7.5872 77.421 13.140 39.197 1.1749 3.7314 7.2781 78.295 12.860 38.403 1.1697 3.7314 7.1138 7 8 9 10 11 12 13 Finland/markka France/franc Germany/deutsche mark Greece/drachma Hong Kong/dollar India/rupee Ireland/punt 5.0722 6.9257 2.1705 139.93 7.8038 12.597 134.14 4.4037 6.0122 1.7981 135.47 7.7986 12.943 148.79 4.1933 5.9595 1.7570 142.00 7.8072 13.900 152.49 4.4302 6.7135 1.9789 170.42 7.7934 16.420 134.92 4.2699 6.4105 1.8901 163.84 7.8040 16.416 141.26 4.3504 6.5085 1.9268 166.26 7.8078 16.609 138.43 4.4219 6.5855 1.9502 169.03 7.8078 16.745 136.71 4.2817 6.3339 1.8662 165.88 7.8081 16.819 142.50 4.2619 6.2225 1.8300 164.97 7.8140 16.925 144.73 14 15 16 17 18 19 20 Italy/lira Japan/yen Malaysia/ringgit Netherlands/guilder.... New Zealand/dollar 2 . . . Norway /krone Portugal/escudo 1,491.16 168.35 2.5831 2.4485 52.457 7.3985 149.80 1,297.03 144.60 2.5186 2.0264 59.328 6.7409 141.20 1,302.39 128.17 2.6190 1.9778 65.560 6.5243 144.27 1,434.40 143.98 2.7086 2.2292 57.376 7.1852 164.92 1,367.39 140.42 2.6809 2.1318 57.537 6.9478 158.31 1,384.24 141.49 2.6825 2.1726 59.217 7.0480 161.15 1,404.18 145.07 2.6980 2.1992 59.144 7.1264 163.36 1,369.24 142.21 2.6945 2.1072 55.937 6.9502 159.08 1,343.83 143.53 2.7028 2.0652 56.301 6.9010 157.65 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/baht United Kingdom/pound 2 2.1783 2.2919 884.63 140.04 27.934 7.1273 1.7979 37.839 26.315 146.77 2.1059 2.0385 825.94 123.54 29.472 6.3469 1.4918 31.753 25.775 163.98 2.0133 2.2773 734.52 116.53 31.820 6.1370 1.4643 28.636 25.312 178.13 1.9572 2.7828 669.43 126.55 33.475 6.6872 1.7089 26.023 25.909 155.30 1.9589 2.6909 669.84 118.73 34.764 6.4653 1.6281 25.816 25.771 1.9604 2.7247 671.13 120.64 36.276 6.5481 1.6605 25.685 25.912 159.47 1.9769 2.7882 672.73 122.14 39.572 6.6103 1.6865 25.737 26.012 157.15 162.68 1.9622' 2.6403 673.86 118.77 40.018 6.4580 1.6302 25.739 25.868 158.74 1.9588 2.6295 674.94 116.58 40.017 6.4306 1.6189 26.029 25.877 157.26 MEMO 31 United States/dollar 3 . . . 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 99.12 98.92 97.99 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, August 1978, p. 700). A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR Symbols and c e p r * PRESENTATION Abbreviations Corrected Estimated Preliminary Revised (Notation appears on column heading when about half of the figures in that column are changed.) Amounts insignificant in terms of the last decimal place shown in the table (for example, less than 500,000 when the smallest unit given is millions) 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 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. STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Anticipated schedule of release dates for periodic releases SPECIAL TABLES—Published Irregularly, with Latest Bulletin Reference Issue December 1989 Page A84 Issue Page Reference Title and Date Assets and liabilities of commercial banks September 30, 1988 December 31, 1988 March 31, 1989 June 30, 1989 August August December January 1989 1989 1989 1990 All A78 All All Terms of lending at commercial banks August 1988 November 1988 February 1989 May 1989 January April June November 1989 1989 1989 1989 All All A84 A73 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1988 December 31, 1988 March 31, 1989 June 30, 1989 May June August November 1989 1989 1989 1989 All A90 A84 A78 Pro forma balance sheet and income statements for priced service operations June 30, 1987 September 30, 1987 March 31, 1988 March 31, 1989 November February August September 1987 1988 1988 1989 A74 A80 A70 All http://fraser.stlouisfed.org/ Special table Federal Reserve Bank of St.begins Louis on page A72. All Special Tables • January 1990 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1'2 Consolidated Report of Condition, June 30, 1989 Millions of dollars Banks with foreign offices3'4 Item 1 Total assets6 2 Cash and balances due from depository institutions 3 Cash items in process of collection, unposted debits, and currency and coin 4 Cash items in process of collection and unposted debits 5 6 Balances due from depository institutions in the United States 7 Balances due from banks in foreign countries and foreign central banks 8 Balances due from Federal Reserve Banks Banks with domestic offices only Total Total Foreign Domestic Over 100 Under 100 3,205,745 1,847,518 431,965 1,472,256 957,335 383,825 335,149 A 237,775 86,496 n.a. n.a. 33,428 96,419 21,433 116,181 1,917 n.a. n.a. 21,123 92,994 147 121,594 84,579 72,799 11,780 12,305 3,424 21,286 67,053 31,027 22,936 8,091 20,823 3,828 11,376 28,803 A n.a. n.a. MEMO 9 Noninterest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States).... 10 Total securities, loans and lease financing receivables, net 11 Total securities, book value 12 U.S. Treasury securities and U.S. government agency and corporation obligations 13 U.S. Treasury securities 14 U.S. government agency and corporation obligations 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 16 All other 17 Securities issued by states and political subdivisions in the United States 18 19 Tax-exempt 20 Other securities 21 Other domestic securities 22 All holdings of private certificates of participation in pools of residential mortgages 23 All other 24 Foreign securities 25 Federal funds sold and securities purchased under agreements to resell 26 Federal funds sold 27 Securities purchased under agreements to resell 28 Total loans and lease financing receivables, gross 29 LESS: Unearned income on loans 30 Total loans and leases (net of unearned income) 31 LESS: Allowance for loan and lease losses 32 LESS: Allocated transfer risk reserves 33 EQUALS: Total loans and leases, net Total loans, gross, by category 34 Loans secured by real estate 35 Construction and land development 36 Farmland 37 1-4 family residential properties 38 Revolving, open-end loans, extended under lines of credit 39 All other loans 40 Multifamily (5 or more) residential properties 41 Nonfarm nonresidential properties 42 Loans to depository institutions 43 To commercial banks in the United States 44 To other depository institutions in the United States 45 To banks in foreign countries 46 Loans to finance agricultural production and other loans to farmers 47 Commercial and industrial loans 48 To U.S. addressees (domicile) 49 To non-U.S. addressees (domicile) 50 Acceptances of other banks 51 U.S. banks 52 53 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 54 55 Other (includes single payment and installment) 56 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 57 Taxable 58 59 60 Loans to foreign governments and official institutions 61 62 Loans for purchasing and carrying securities 63 All other loans 64 65 66 67 68 69 70 71 72 Lease financing receivables Assets held in trading accounts Premises and fixed assets (including capitalized leases) Other real estate owned Investments in unconsolidated subsidiaries and associated companies Customers' liability on acceptances outstanding Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs Intangible assets Other assets 13,618 9,669 849,708 338,429 201,439 199,203 114,003 127,973 55,461 72,512 134,521 66,383 68,138 86,134 n a. n a. 1,137 152 513 52 461 27,016 2,239 56,939 15,573 42,463 743 41,721 27,797 26,658 29,825 38,313 38,060 801 37,260 22,599 22,005 15,506 n.a. 18,567 1,040 17,526 7,867 n.a. 0 n.a. n.a. 1,886 n.a. n.a. 1,799 n.a. n.a. 495 n.a. n. a. 79,758 59,697 20,060 1,157,301 7,005 1,150,296 31,412 137 1,118,747 1,175 n.a. n.a. 215,022 2,022 213,000 n.a. n.a. n.a. 78,582 n.a. n.a. 942,279 4,983 937,296 n.a. n.a. n.a. 38,855 34,942 3,913 628,166 6,442 621,724 10,073 0 611,651 20,916 20,581 336 209,021 2,166 206,855 3,346 0 203,509 351,964 A 23,395 A 264,895 38,145 4,736 129,596 18,316 111,279 6,919 85,499 5,257 4,486 688 83 99,913 7,577 9,442 54,981 2,623 52,358 1,869 26,044 608 n a. n a. n a. n.a. n.a. 2,632,585 1,430,780 n.a. 7,369 548,690 232,275 30,837 351,194 n a. n a. 130,539 56,738 73,800 2,566 1,277 1,289 104,440 n a. 99,603 2,646 97,164 85,279 n a. 58,076 15,724 42,976 795 42,182 54,814 28,897 4,180 n.a. n.a. 1,886 n.a. n.a. 139,529 115,364 24,725 1,994,488 15,618 1,989,469 44,966 137 1,944,366 721,266 1 n.a. 1 n.a. 1 1 1 n.a. 1 1 54,339 n a. n a. n a. 48,473 19,545 2,685 26,244 23,926 1,386 469 22,071 328,570 86,069 2,126 138,115 24,206 113,909 10,666 91,593 24,547 18,159 2,216 4,173 31,000 609,486 n a. n.a. 4,138 n.a. n.a. 5,641 424,653 346,620 78,033 899 296 603 241 99,975 24,487 75,489 516 32 484 5,400 324,677 322,133 2,544 384 264 120 7,087 142,220 141,919 301 1,685 n.a. n.a. 18,220 42,613 n.a. n.a. 1,554 n.a. n.a. 376,227 115,680 261,453 158,232 46,117 112,115 12,523 n.a. n.a. 145,709 n.a. n.a. 176,329 66,733 109,596 41,666 2,406 39,260 42,808 1,337 41,904 125,315 n.a. n.a. n.a. n.a. 25,946 826 25,120 112,901 33,127 79,774 n.a. n.a. 348 116 232 50,506 31,609 18,897 n.a. n.a. 25,598 711 24,887 62,395 1,518 60,877 16,991 43,886 15,054 441 14,613 10,350 221 10,129 1,521 8,608 1,808 69 1,739 2,065 n a. n.a. n.a. n.a. 34,454 41,180 46,450 12,290 2,865 29,931 n.a. 5,315 99,417 28,591 39,845 24,424 5,805 2,108 29,297 n.a. 3,113 74,372 3,592 20,627 k 24,999 19,218 n.a. n.a. 696 n.a. 40,997 n.a. n.a. 5,289 812 15,119 3,929 41 411 n.a. 1,963 17,643 574 208 6,686 2,550 1 n.a. 1 \ | • | • | 1 n.a. 1 T n.a. 20 n.a. 212 6,876 Commercial Banks A73 4.20—Continued Banks with foreign offices 3 ' 4 Item Banks with domestic offices only Total Total Foreign Domestic Over 100 Under 100 73 Total liabilities, limited-life preferred stock, and equity capital 3,205,745 1,847,518 n. a. n.a. 957,335 383,825 74 Total liabilities7 75 Limited-life preferred stock 2,999,310 86 1,746,083 0 431,964 n.a. 1,370,823 n.a. 887,950 82 349,153 4 76 Total deposits 77 Individuals, partnerships, and corporations 78 U.S. government 79 States and political subdivisions in the United States 80 Commercial banks in the United States 81 Other depository institutions in the United States 82 Banks in foreign countries 83 Foreign governments and official institutions 84 Certified and official checks All other 85 2,437,752 1 1,324,247 A 323,311 186,959 A n. a. n. a. n.a. 19,379 n.a. 25,394 11,010 n.a. 1,000,936 907,697 2,451 40,777 25,599 4,954 8,032 1,393 10,032 n.a. 774,001 710,939 1,536 43,316 9,363 2,261 380 242 5,964 n.a. 339,504 309,908 599 23,949 1,616 959 n.a. n.a. 2,405 69 n.a. 319,259 268,011 1,600 9,492 18,304 3,519 7,413 887 10,032 n.a. 210,610 184,655 1,206 10,937 6,339 1,323 178 8 5,964 n.a. 88,696 78,279 494 6,421 776 285 n.a. n.a. 2,405 37 n.a. 246,740 197,891 1,578 7,117 18,304 3,519 7,413 886 10,032 n.a. 681,677 639,686 850 31,285 7,295 612 6,683 1,435 619 4 615 506 n.a. 134,259 114,225 1,189 5,049 6,335 1,311 178 8 5,964 n.a. 563,391 526,284 329 32,379 3,024 177 2,847 938 202 179 23 234 n.a. 47,971 41,916 478 2,082 775 278 n.a. n.a. 2,405 36 250,808 231,629 105 17,528 839 n.a. n.a. 674 n.a. n.a. n.a. n.a. 32 86 Total transaction accounts 87 Individuals, partnerships, and corporations 88 U.S. government 89 States and political subdivisions in the United States Commercial banks in the United States 90 91 Other depository institutions in the United States 92 Banks in foreign countries 93 Foreign governments and official institutions 94 Certified and official checks 95 All other 96 Demand deposits (included in total transaction accounts) 97 Individuals, partnerships, and corporations 98 U.S. government 99 States and political subdivisions in the United States 100 Commercial banks in the United States 101 Other depository institutions in the United States 102 Banks in foreign countries 103 Foreign governments and official institutions 104 Certified and official checks 105 All other 106 Total nontransaction accounts 107 Individuals, partnerships, and corporations 108 U.S. government 109 States and political subdivisions in the United States 110 Commercial banks in the United States 111 U.S. branches and agencies of foreign banks Other commercial banks in the United States 11? 113 Other depository institutions in the United States 114 Banks in foreign countries 115 Foreign branches of other U.S. banks 116 Other banks in foreign countries 117 Foreign governments and official institutions 118 All other 119 120 121 17? 17.3 124 125 126 177 128 Federal funds purchased and securities sold under agreements to repurchase Federal funds purchased Securities sold under agreements to repurchase Demand notes issued to the U.S. Treasury Other borrowed money Banks liability on acceptances executed and outstanding Notes and debentures subordinated to deposits Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs All other liabilities Total equity capital 129 130 131 132 133 134 Holdings of commercial paper included in total loans, gross Total individual retirement accounts (IRA) and Keogh plan accounts Total brokered deposits Total brokered retail deposits Issued in denominations of $100,000 or less Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less Savings deposits Money market deposit accounts (MMDAs) Other savings deposits (excluding MMDAs) Total time deposits of less than $100,000 Time certificates of deposit of $100,000 or more Open-account time deposits of $100,000 or more All NOW accounts (including Super NOW) Total time and savings deposits n. a. n.a. 262,361 162,466 103,739 n a. 122,760 30,052 17,837 n a. 82,611 206,349 MEMO 135 136 137 138 139 140 141 n a. n.a. n. a. 24,001 978 111,373 198,299 127,619 70,680 n.a. 90,481 29,418 15,208 n.a. 63,316 101,435 444 n.a. n. a. n.a. 38,210 5,110 n. a. n. a. n. a. n.a. 197,855 n.a. n.a. 25,114 52,271 24,308 n.a. 15,706 n.a. n.a. 60,768 30,490 30,278 5,278 30,588 411 2,408 n.a. 14,496 69,302 3,294 1,583 1,712 698 1,186 20 156 n.a. 4,293 34,669 1,048 843 204 45,531 43,715 12,697 3,943 1,182 42,075 17,054 11,444 6,269 n.a. 17,139 1,157 1,014 903 n.a. n a. Quarterly averages 147, 143 Obligations (other than securities) of states and political subdivisions in the United States 144 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) Nontransaction accounts in domestic offices 145 Money market deposit accounts (MMDAs) 146 Other savings deposits 147 Time certificates of deposit of $100,000 or more 148 All other time deposits 149 Number of banks Footnotes appear at the end of table 4.22 12,912 245 n a. 8,753 5,174 111 169,820 78,342 207,076 195,367 31,071 70,832 754,196 117,321 73,874 250 117,725 4,523 73,830 639,742 39,236 30,207 138,628 41,122 1,614 39,231 291,533 902,312 612,135 202,223 26,582 15,070 n.a. 75,105 76,430 40,997 169,135 78,090 194,425 231,492 118,280 74,350 116,711 249,900 40,063 30,159 40,425 137,985 2,521 10,146 n.a. All Special Tables • January 1990 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6 Consolidated Report of Condition, March 31, 1989 Millions of dollars Members Item Nonmembers Total Total 1 Total assets6 2 Cash and balances due from depository institutions 3 Cash items in process of collection and unposted debits 4 Currency and coin 5 Balances due from depository institutions in the United States 6 Balances due from banks in foreign countries and foreign central banks 7 Balances due from Federal Reserve Banks 8 Total securities, loans and lease financing receivables, (net of unearned income) 9 Total securities, book value 10 U.S. Treasury securities 11 U.S. government agency and corporation obligations 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages All other N 14 Securities issued by states and political subdivisions in the United States Taxable 15 Tax-exempt 16 17 Other domestic securities 18 All holdings of private certificates of participation in pools of residential mortgages All other 19 20 21 Federal funds sold and securities purchased under agreements to resell 22 Federal funds sold Securities purchased under agreements to resell 23 24 Total loans and lease financing receivables, gross LESS: Unearned income on loans 25 26 Total loans and leases (net of unearned income) 27 28 29 30 31 32 33 34 35 36 37 38 Total loans, gross, by category Loans secured by real estate Construction and land development Farmland 1-4 family residential properties Revolving, open-end and extended under lines of credit All other loans Multifamily (5 or more) residential properties Nonfarm nonresidential properties Loans to commercial banks in the United States Loans to other depository institutions in the United States Loans to banks in foreign countries Loans to finance agricultural production and other loans to farmers 39 Commercial and industrial loans 40 To U.S. addressees (domicile) 41 To non-U.S. addressees (domicile) 42 Acceptances of other banks 11 43 Of U.S. banks 44 Of foreign banks 45 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 46 Loans to foreign governments and official institutions 47 Obligations (other than securities) of states and political subdivisions in the United States 48 49 SO 51 52 53 54 55 56 Loans for purchasing and carrying securities Lease financing receivables Customers' liability on acceptances outstanding Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs Remaining assets National State 2,429,591 1,932,683 1,547,500 385,183 496,908 188,648 95,734 19,872 33,127 7,252 32,662 156,072 85,481 16,360 21,943 5,550 26,738 124,658 68,585 13,734 17,664 4,408 20,266 31,414 16,896 2,626 4,279 1,142 6,472 32,576 10,253 3,512 11,184 1,703 5,924 2,077,099 1,635,738 1,318,349 317,389 441,361 400,641 121,845 140,649 298,988 87,080 109,230 232,243 68,435 87,610 66,746 18,646 21,619 101,653 34,764 31,420 86,764 53,885 80,524 1,543 78,981 48,663 3,685 n.a. n.a. 73,462 35,768 63,720 1,204 62,515 34,411 2,843 n.a. n.a. 59,742 27,868 46,897 984 45,913 26,133 1,852 n.a. n.a. 13,719 7,900 16,822 220 16,602 8,278 991 n.a. n.a. 13,302 18,117 16,804 339 16,465 14,252 843 n.a. n.a. 117,438 34,942 3,913 1,570,445 11,424 1,559,020 99,746 22,396 2,749 1,245,765 8,761 1,237,004 69,617 19,650 2,226 1,023,685 7,195 1,016,490 30,129 2,747 523 222,080 1,567 220,514 17,692 12,546 1,164 324,679 2,663 322,016 593,465 124,214 6,862 267,711 42,523 225,188 17,586 177,092 22,645 2,904 4,256 12,487 448,290 99,254 4,581 196,718 32,983 163,735 13,883 133,854 19,419 2,749 4,050 9,696 385,133 83,193 4,016 169,043 28,170 140,873 12,133 116,748 14,814 2,402 2,166 8,691 63,157 16,061 565 27,675 4,812 22,863 1,750 17,106 4,605 347 1,884 1,005 145,175 24,960 2,281 70,993 9,540 61,453 3,703 43,239 3,226 155 206 2,791 466,897 464,052 2,845 382,684 380,106 2,579 304,254 302,422 1,832 78,431 77,684 747 84,213 83,946 266 2,069 723 235 1,208 517 198 1,001 429 152 207 89 46 861 206 36 322,038 1,739 40,652 1,152 39,500 71,006 18,511 52,494 251,280 1,672 34,100 907 33,193 64,433 17,041 47,392 212,824 1,087 25,237 724 24,514 44,352 10,567 33,785 38,456 585 8,863 183 8,679 20,081 6,474 13,607 70,758 67 6,552 244 6,307 6,572 1,470 5,102 30,288 24,094 41,019 139,751 26,183 22,934 36,295 117,939 21,722 17,394 25,070 87,100 4,461 5,540 11,225 30,840 4,104 1,160 4,723 21,811 Commercial Banks A73 4.21—Continued Members Item 57 Total liabilities and equity capital 4 Nonmembers Total State Total National 2,429,591 1,932,683 1,547,500 385,183 496,908 458,926 2,258,773 1,799,847 1,444,223 355,625 59 Total deposits 60 Individuals, partnerships, and corporations 61 U.S. government 62 States and political subdivisions in the United States 63 Commercial banks in the United States 64 Other depository institutions in the United States 65 Banks in foreign countries 66 Foreign governments and official institutions 67 Certified and official checks 1,774,937 1,618,636 3,987 84,094 34,962 7,215 8,412 1,635 15,996 1,385,399 1,259,443 3,319 64,183 30,893 5,855 7,498 1,482 12,728 1,126,882 1,027,845 2,936 53,745 23,637 4,918 4,009 1,045 8,746 258,517 231,597 383 10,438 7,256 936 3,489 436 3,981 389,538 359,194 667 19,911 4,069 1,361 915 153 3,269 68 Total transaction accounts 69 Individuals, partnerships, and corporations 70 U.S. government 71 States and political subdivisions in the United States Commercial banks in the United States 77 73 Other depository institutions in the United States 74 Banks in foreign countries Foreign governments and official institutions 75 76 Certified and official checks 529,869 452,666 2,807 20,429 24,642 4,842 7,591 896 15,996 427,546 361,381 2,272 16,337 22,787 4,036 7,152 854 12,728 339,262 290,058 1,924 13,521 17,498 3,190 3,792 534 8,746 88,284 71,323 348 2,817 5,289 846 3,359 320 3,981 102,323 91,285 535 4,092 1,855 806 440 42 3,269 77 Demand deposits (included in total transaction accounts) 78 Individuals, partnerships, and corporations 79 U.S. government 80 States and political subdivisions in the United States 81 Commercial banks in the United States 82 Other depository institutions in the United States 83 Banks in foreign countries 84 Foreign governments and official institutions Certified and official checks 85 380,999 312,116 2,767 12,166 24,638 4,830 7,591 894 15,996 312,906 253,050 2,236 10,074 22,784 4,029 7,151 853 12,728 242,557 198,588 1,890 8,329 17,495 3,183 3,792 533 8,746 70,349 54,462 346 1,745 5,289 846 3,359 320 3,981 68,093 59,066 531 2,092 1,854 801 440 41 3,269 1,245,068 1,165,970 1,180 63,664 10,319 789 9,530 2,373 821 182 639 739 957,854 898,061 1,048 47,846 8,106 494 7,612 1,819 346 42 304 628 787,620 737,787 1,012 40,224 6,139 333 5,806 1,728 217 42 175 512 170,233 160,274 35 7,621 1,967 161 1,806 90 129 0 129 116 287,214 267,909 132 15,819 2,213 295 1,918 555 475 140 334 112 258,623 30,490 30,278 30,392 82,858 24,719 2,408 15,706 84,835 221,941 22,322 14,980 27,945 66,116 23,559 1,603 12,701 73,285 169,047 18,996 12,162 20,921 54,904 17,969 1,486 10,559 53,014 52,894 3,327 2,818 7,023 11,212 5,591 117 2,141 20,270 36,682 8,168 15,298 2,447 16,742 1,160 806 3,006 11,551 170,818 132,836 103,278 29,558 37,982 1,387 87,606 60,769 24,140 10,213 785 68,218 46,517 15,558 5,135 667 56,690 38,597 12,340 4,607 118 11,528 7,920 3,218 527 601 19,388 14,251 8,582 5,078 13,928 10,424 7,733 2,691 3,504 287,141 152,216 457,024 313,092 35,594 144,662 1,393,938 228,534 116,908 341,427 240,154 30,830 111,821 1,072,493 187,006 89,024 289,727 201,787 20,076 94,216 884,325 41,528 27,883 51,701 38,367 10,754 17,604 188,168 58,607 35,309 115,597 72,938 4,764 32,842 321,445 1,514,447 41,653 1,199,155 35,094 984,772 25,898 214,383 9,196 315,291 6,558 151,535 117,125 97,744 19,382 34,410 287,414 152,441 311,136 481,392 227,388 116,753 239,095 362,708 186,626 89,191 200,337 302,116 40,762 27,562 38,758 60,592 60,026 35,688 72,041 118,684 2,766 1,563 1,318 245 1,203 58 Total liabUities 86 Total nontransaction accounts 87 Individuals, partnerships, and corporations 88 U.S. government 89 States and political subdivisions in the United States 90 Commercial banks in the United States 91 U.S. branches and agencies of foreign banks 97 Other commercial banks in the United States 93 Other depository institutions in the United States 94 Banks in foreign countries 95 Foreign branches of other U.S. banks % Other banks in foreign countries 97 Foreign governments and official institutions 98 99 100 101 102 103 104 105 106 Federal funds purchased and securities sold under agreements to repurchase 12 Federal funds purchased Securities sold under agreements to repurchase Demand notes issued to the U.S. Treasury Other borrowed money Banks liability on acceptances executed and outstanding Notes and debentures subordinated to deposits Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs Remaining liabilities 107 Total equity capital 9 MEMO 108 Holdings of commercial paper included in total loans, gross 109 Total individual retirement accounts (IRA) and Keogh plan accounts 110 Total brokered deposits 111 Total brokered retail deposits 117 Issued in denominations of $100,000 or less 113 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 114 115 116 117 118 119 120 Savings deposits Money market deposit accounts (MMDAs) Other savings accounts Total time deposits of less than $100,000 Time certificates of deposit of $100,000 or more Open-account time deposits of $100,000 or more All NOW accounts (including Super NOW accounts) Total time and savings deposits Quarterly averages 171 122 Obligations (other than securities) of states and political subdivisions in the United States 173 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 124 125 12.6 127 Nontransaction accounts Money market deposit accounts (MMDAs) Other savings deposits Time certificates of deposits of $100,000 or more All other time deposits 128 Footnotes appear at the end of table 4.22 All Special Tables • January 1990 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2'6 Consolidated Report of Condition, March 31, 1989 Millions of dollars Members Nonmembers Item 1 Total assets6 2 Cash and balances due from depository institutions 4 5 Noninterest-bearing balances due from commercial banks Other 6 Total securities, loans, and lease financing receivables (net of unearned income) 7 Total securities, book value 8 U.S. Treasury securities and U.S. government agency and corporation obligations 9 Securities issued by states and political subdivisions in the United States 10 Taxable 11 Tax-exempt 13 All holdings of private certificates of participation in pools of residential mortgages 14 All other 15 Federal funds sold and securities purchased under agreements to resell 17 Securities purchased under agreements to resell 18 Total loans and lease financing receivables, gross 19 LESS: Unearned income on loans 20 Total loans and leases (net of unearned income) Total loans, gross, by category 21 Loans secured by real estate 22 Construction and land development 24 25 1-4 family residential properties Revolving, open-end loans, and extended under lines of credit 27 28 Multifamily (5 or more) residential properties Nonfarm nonresidential properties 29 30 31 32 33 Loans to depository institutions Loans to finance agricultural production and other loans to farmers Commercial and industrial loans Acceptances of other banks Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 34 Obligations (other than securities) of states and political subdivisions in the United States 35 Nonrated industrial development obligations 36 Other obligations (excluding securities) 38 Lease financing receivables 39 Customers' liability on acceptances outstanding 40 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs Total National State 2,813,416 2,087,797 1,672,249 415,548 725,620 217,450 23,303 30,657 163,491 168,182 17,760 17,576 132,846 134,562 14,866 14,515 105,180 33,621 2,894 3,061 27,665 49,268 5,542 13,080 30,645 2,418,874 1,773,383 1,428,806 344,577 645,491 514,644 348,628 99,090 2,584 96,507 58,263 4,181 n.a. 138,354 55,523 4,248 1,779,466 13,591 1,765,875 343,569 230,011 70,705 1,588 69,117 38,918 3,080 n.a. 109,426 31,927 2,898 1,330,083 9,695 1,320,388 268,752 183,640 52,556 1,281 51,275 29,381 2,005 n.a. 77,436 27,378 2,317 1,090,520 7,901 1,082,619 74,818 46,371 18,149 307 17,842 9,537 1,074 n.a. 31,990 4,549 582 239,563 1,794 237,769 171,075 118,617 28,385 9% 27,390 19,345 1,101 n.a. 28,928 23,5% 1,350 449,383 3,895 445,488 693,378 131,791 16,304 322,692 45,145 277,547 19,454 203,136 488,083 102,367 7,715 218,857 34,140 184,717 14,584 144,559 416,664 85,637 6,547 186,390 29,059 157,331 12,695 125,395 71,418 16,729 1,168 32,467 5,081 27,386 1,889 19,164 205,295 29,424 8,589 103,835 11,005 92,830 4,870 58,577 30,413 30,707 509,510 3,622 26,512 16,079 400,943 1,856 19,611 13,785 318,502 1,581 6,900 2,294 82,441 275 3,901 14,628 108,567 1,766 363,704 42,460 1,221 41,239 74,810 30,862 24,114 41,019 152,978 268,514 34,771 934 33,836 66,964 26,362 22,950 36,295 123,282 226,640 25,796 748 25,048 46,079 21,861 17,407 25,070 91,474 41,874 8,975 186 8,788 20,885 4,501 5,543 11,225 31,808 95,190 7,690 286 7,403 7,846 4,500 1,164 4,723 29,696 2,813,416 2,087,797 1,672,249 415,548 725,620 2,607,925 1,941,304 1,558,154 383,150 666,621 2,114,442 1,928,544 4,586 108,043 36,577 8,174 18,401 10,116 1,522,796 1,385,120 3,561 73,139 31,876 6,253 13,841 9,007 1,237,643 1,129,080 3,137 61,113 24,340 5,240 9,652 5,080 285,154 256,040 423 12,025 7,536 1,012 4,189 3,927 591,645 543,424 1,025 34,904 4,701 1,922 4,560 1,109 618,565 530,945 3,300 26,850 25,419 5,127 18,401 8,524 464,503 393,963 2,475 18,660 23,380 4,174 13,841 8,010 369,331 316,637 2,094 15,431 17,882 3,308 9,652 4,328 95,172 77,327 381 3,229 5,498 866 4,189 3,682 154,062 136,981 826 8,190 2,038 953 4,560 514 States and political subdivisions in the United States Commercial banks in the United States Other depository institutions in the United States Certified and official checks All other 428,970 354,032 3,245 14,248 25,414 5,108 18,401 8,522 333,637 270,972 2,437 10,836 23,378 4,164 13,841 8,009 259,316 213,135 2,057 8,%5 17,880 3,299 9,652 4,328 74,321 57,837 380 1,872 5,498 865 4,189 3,681 95,333 83,060 808 3,411 2,036 944 4,560 513 68 Total nontransaction accounts 69 Individuals, partnerships, and corporations 70 U.S. government 71 States and political subdivisions in the United States 72 Commercial banks in the United States 73 Other depository institutions in the United States 74 All other 1,495,876 1,397,600 1,285 81,193 11,158 3,047 1,593 1,058,293 991,157 1,086 54,479 8,4% 2,079 997 868,312 812,443 1,044 45,683 6,458 1,932 752 189,982 178,714 42 8,7% 2,038 146 245 437,583 406,443 200 26,713 2,663 %9 5% 43 Total liabilities 4 45 Individuals, partnerships, and corporations 47 48 49 States and political subdivisions in the United States Commercial banks in the United States Other depository institutions in the United States 51 Allother 53 Individuals, partnerships, and corporations 55 56 57 States and political subdivisions in the United States Commercial banks in the United States Other depository institutions in the United States 59 All other 60 Demand deposits (included in total transaction accounts) 61 Individuals, partnerships, and corporations 63 64 65 66 67 Commercial Banks All 4.22—Continued Members Item 75 76 77 78 79 80 81 82 83 Nonmembers Total Federal funds purchased and securities sold under agreements to repurchase 12 Federal funds purchased Securities sold under agreements to repurchase Demand notes issued to the U.S. Treasury Other borrowed money Banks liability on acceptances executed and outstanding Notes and debentures subordinated to deposits Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs Remaining liabilities 84 Total equity capital 9 Total National State 261,917 32,072 31,990 31,090 84,045 24,740 2,564 15,706 89,128 223,654 23,240 15,776 28,252 66,436 23,575 1,650 12,701 74,940 170,302 19,629 12,784 21,168 55,178 17,982 1,527 10,559 54,356 53,353 3,611 2,993 7,085 11,258 5,593 124 2,141 20,584 38,263 8,833 16,213 2,838 17,609 1,164 914 3,006 14,188 205,491 146,492 114,095 32,398 58,999 20,239 10,298 2,481 1,095 36 999 49 1,888 3,066 19,581 9,947 2,452 1,058 16 995 49 1,824 2,977 12,986 5,548 1,985 870 13 949 49 1,137 2,176 6,595 4,399 467 188 3 46 0 687 801 658 350 29 37 20 4 0 64 89 104,744 61,926 25,154 11,116 74,867 46,894 15,871 5,429 62,083 38,918 12,601 4,852 12,784 7,976 3,271 577 29,877 15,032 9,283 5,686 14,039 10,442 7,748 2,694 3,597 326,377 182,423 595,653 354,215 37,208 183,894 1,685,471 245,503 129,114 394,319 258,009 31,349 127,546 1,189,159 200,736 98,715 332,136 216,223 20,501 107,142 978,327 44,767 30,399 62,183 41,786 10,847 20,404 210,832 80,874 53,309 201,334 96,206 5,860 56,347 496,312 1,716,669 1,280,886 1,049,719 231,167 435,783 192,532 133,467 111,136 22,332 59,065 327,477 182,600 351,912 619,377 244,705 128,970 256,666 415,155 200,628 98,903 214,615 344,223 44,077 30,068 42,051 70,932 82,772 53,629 94,895 204,221 12,912 5,312 4,276 1,036 7,600 MEMO 85 Assets held in trading accounts 86 U.S. Treasury securities 87 U.S. government agency corporation obligations 88 Securities issued by states and political subdivisions in the United States 89 Other bonds, notes, and debentures 90 Certificates of deposit 91 Commercial paper 92 Bankers acceptances 93 Other 94 Total individual retirement accounts (IRA) and Keogh plan accounts 95 Total brokered deposits 96 Total brokered retail deposits 97 Issued in denominations of $100,000 or less 98 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 99 100 101 102 103 104 105 Savings deposits Money market deposit accounts (MMDAs) Other savings deposits Total time deposits of less than $100,000 Time certificates of deposit of $100,000 or more Open-account time deposits of $100,000 or more All NOW accounts (including Super NOW) Total time and savings deposits Quarterly averages 106 Total loans 107 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 108 109 110 Ill Nontransaction accounts Money market deposit accounts (MMDAs) Other savings deposits Time certificates of deposit of $100,000 or more All other time deposits 112 Number of banks 1. Effective Mar. 31, 1984, the report of condition was substantially revised for commercial banks. Some of the changes are as follows: (1) Previously, banks with international banking facilities (IBFs) that had no other foreign offices were considered domestic reporters. Beginning with the Mar. 31, 1984 call report these banks are considered foreign and domestic reporters and must file the foreign and domestic report of condition; (2) banks with assets greater than $1 billion have additional items reported; (3) the domestic office detail for banks with foreign offices has been reduced considerably; and (4) banks with assets under $25 million have been excused from reporting certain detail items. 2. The " n . a . " for some of the items is used to indicate the lesser detail available from banks without foreign offices, the inapplicability of certain items to banks that have only domestic offices and/or the absence of detail on a fully consolidated basis for banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported in "net due from" and "net due to." All other lines represent transactions with parties other than the domestic and foreign offices of each bank. Since these intraoffice transactions are nullified by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets and liabilities respectively, of the domestic and foreign offices. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in U.S. territories and possessions; subsidiaries in foreign countries; all offices of Edge act and agreement corporations wherever located and IBFs. 5. The 'over 100' column refers to those respondents whose assets, as of June 30 of the previous calendar year, were equal to or exceeded $100 million. (These respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column refers to those respondents whose assets, as of June 30 of the previous calendar year, were less than $100 million. (These respondents filed the FFIEC 034 call report.) 6. Since the domestic portion of allowances for loan and lease losses and allocated transfer risk reserve are not reported for banks with foreign offices, the components of total assets (domestic) will not add to the actual total (domestic). 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not reported for banks with foreign offices, the components of total liabilities (foreign) will not add to the actual total (foreign). 8. The definition of 'all other' varies by report form and therefore by column in this table. See the instructions for more detail. 9. Equity capital is not allocated between the domestic and foreign offices of banks with foreign offices. 10. Only the domestic portion of federal funds sold and securities purchased under agreements to resell are reported here, therefore, the components will not add to totals for this item. 11. "Acceptances of other banks" is not reported by domestic respondents less than $300 million in total assets, therefore the components will not add to totals for this item. 12. Only the domestic portion of federal funds purchased and securities sold are reported here, therefore the components will not add to totals for this item. 13. Components of assets held in trading accounts are only reported for banks with total assets of $1 billion or more; therefore the components will not add to the totals for this item. A78 Federal Reserve Board of Governors A L A N GREENSPAN, Chairman MANUEL H . JOHNSON, Vice Chairman MARTHA R . SEGER 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 J. VIRGIL MATTINGLY, JR., General Counsel RICHARD M. ASHTON, Associate General Counsel OLIVER IRELAND, Associate General Counsel RLCKI R. TLGERT, Associate General Counsel SCOTT G. ALVAREZ, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel WAYNE D . ANGELL EDWIN M. TRUMAN, Staff 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 WILLIAM W . WILES, AND STATISTICS Director EDWARD C. ETTIN, Deputy Director THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director SECRETARY Secretary JENNIFER J. JOHNSON, Associate BARBARA R. LOWREY, Associate Director LARRY J. PROMISEL, Senior Associate Director CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director MICHAEL J. PRELL, OFFICE OF THE FINANCE Secretary Secretary DIVISION OF CONSUMER AND COMMUNITY AFFAIRS MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director MARTHA S. SCANLON, Assistant Director JOYCE K. ZLCKLER, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L . GARWOOD, Director GLENN E. LONEY, Assistant Director ELLEN MALAND, Assistant Director DOLORES S. SMITH, Assistant Director DIVISION OF MONETARY DONALD L . KOHN, DIVISION OF BANKING SUPERVISION AND REGULATION WILLIAM TAYLOR, Staff 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 Director DON E. KLINE, Associate OFFICE OF THE INSPECTOR Director FREDERICK M. STRUBLE, Associate HERBERT A. BIERN, Assistant JOE M. CLEAVER, Assistant GENERAL Director WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director RICHARD SPILLENKOTHEN, Deputy Associate Director Director Director ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer AFFAIRS BRENT L. BOWEN, Inspector General BARRY R. SNYDER, Assistant Inspector General A79 and Official Staff EDWARD W . KELLEY, JR. JOHN P. L A WARE OFFICE OF STAFF DIRECTOR FOR S. DAVID FROST, Staff OFFICE OF STAFF DIRECTOR FOR FEDERAL RESERVE BANK ACTIVITIES MANAGEMENT THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director PORTIA W. THOMPSON, Equal Employment Opportunity Programs Officer DIVISION OF HUMAN MANAGEMENT DAVID L . SHANNON, RESOURCES CLYDE H . FARNSWORTH, JR., Director CONTROLLER GEORGE E . LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION 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 OF HARDWARE SYSTEMS BRUCE M . BEARDSLEY, AND ELIZABETH B. RLGGS, Assistant DIVISION OF APPLICATIONS STATISTICAL SERVICES WILLIAM R . JONES, SOFTWARE Director DAY W. RADEBAUGH, JR., Assistant Director Director DEVELOPMENT Director RICHARD C. STEVENS, Assistant Director ROBERT J. ZEMEL, Assistant Director RESERVE Director DAVID L. ROBINSON, Associate Director C. WILLIAM SCHLEICHER, JR., Associate Director BRUCE J. SUMMERS, 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, Assistant Director JOHN R. WEIS, Associate Director ANTHONY V. DIGIOIA, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE DIVISION OF FEDERAL BANK OPERATIONS Director AND A80 Federal Reserve Bulletin • January 1990 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WAYNE D . ANGELL EDWARD G . BOEHNE ROBERT H . BOYKIN E. GERALD CORRIGAN, Vice W . LEE HOSKINS MANUEL H . JOHNSON EDWARD W . KELLEY, JR. ALTERNATE ROBERT P. BLACK ROBERT P. FORRESTAL Chairman JOHN P. L A WARE MARTHA R . SEGER GARY H . STERN MEMBERS SILAS KEEHN JAMES H . OLTMAN ROBERT T . PARRY STAFF DONALD L. KOHN, Secretary and Economist NORMAND R.V. BERNARD, Assistant Secretary GARY P. GILLUM, Deputy Assistant Secretary J. VIRGIL MATTINGLY, JR., General Counsel ERNEST T. PATRIKIS, Deputy General Counsel MICHAEL J. PRELL, EDWIN M . TRUMAN, Economist Economist ANATOL B. BALBACH, Associate Economist RICHARD G. DAVIS, Associate Economist THOMAS E. DAVIS, Associate Economist DAVID E. LINDSEY, Associate Economist ALICIA H. MUNNELL, Associate Economist LARRY J. PROMISEL, Associate Economist KARL A. SCHELD, Associate Economist CHARLES J. SIEGMAN, Associate Economist THOMAS D. SIMPSON, Associate Economist LAWRENCE SLIFMAN, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL DONALD N . BRANDIN, President SAMUEL A. MCCULLOUGH, Vice J. TERRENCE MURRAY, First District WILLARD C. BUTCHER, Second District SAMUEL A. MCCULLOUGH, Third District THOMAS H. O'BRIEN, Fourth District FREDERICK DEANE, JR., Fifth District KENNETH L. ROBERTS, Sixth District President B. KENNETH WEST, Seventh District DONALD N. BRANDIN, Eighth District LLOYD P. JOHNSON, Ninth District JORDAN L. HAINES, Tenth District JAMES E. BURT III, Eleventh District PAUL HAZEN, Twelfth District HERBERT V . PROCHNOW, WILLIAM J. KORSVIK, Associate Secretary Secretary A81 and Advisory Councils CONSUMER ADVISORY COUNCIL JUDITH N. BROWN, Edina, Minnesota, Chairman WILLIAM E. ODOM, Dearborn, Michigan, Vice Chairman NAOMI G. ALBANESE, Greensboro, North Carolina GEORGE H. BRAASCH, Chicago, Illinois BETTY TOM CHU, Arcadia, California CLIFF E . COOK, T a c o m a , W a s h i n g t o n ROBERT A . HESS, W a s h i n g t o n , D . C . RAMON E. JOHNSON, Salt Lake City, Utah BARBARA KAUFMAN, San Francisco, California A. J. (JACK) KING, Kalispell, Montana JERRY D. CRAFT, Atlanta, Georgia DONALD C. DAY, Boston, Massachusetts R.B. (JOE) DEAN, JR., Columbia, South Carolina RICHARD B. DOBY, Denver, Colorado RICHARD L. D. MORSE, Manhattan, Kansas LINDA K. PAGE, Columbus, Ohio WILLIAM C . DUNKELBERG, Philadelphia, P e n n s y l v a n i a RICHARD H . FINK, W a s h i n g t o n , D . C . JAMES FLETCHER, C h i c a g o , Illinois STEPHEN GARDNER, D a l l a s , T e x a s CLIFFORD N . ROSENTHAL, N e w Y o r k , N e w Y o r k ALAN M . SILBERSTEIN, N e w Y o r k , N e w Y o r k ELENA G. HANGGI, Little Rock, Arkansas JAMES HEAD, Berkeley, California THRIFT INSTITUTIONS ADVISORY MICHELLE S . MEIER, W a s h i n g t o n , D . C . SANDRA PHILLIPS, P i t t s b u r g h , P e n n s y l v a n i a VINCENT P. QUAYLE, Baltimore, Maryland RALPH E. SPURGIN, Columbus, Ohio DAVID P. WARD, Peapack, New Jersey LAWRENCE WINTHROP, P o r t l a n d , O r e g o n COUNCIL GERALD M. CZARNECKI, Honolulu, Hawaii, President DONALD B. SHACKELFORD, Columbus, Ohio, Vice President CHARLOTTE CHAMBERLAIN, G l e n d a l e , California JOE C. MORRIS, Overland Park, Kansas ROBERT S. DUNCAN, Hattiesburg, Mississippi ADAM A. JAHNS, Chicago, Illinois H. C. KLEIN, Jacksonville, Arkansas PHILIP E. LAMB, Springfield, Massachusetts JOSEPH W . MOSMILLER, B a l t i m o r e , M a r y l a n d LOUIS H. PEPPER, Seattle, Washington MARION O. SANDLER, Oakland, California CHARLES B. STUZIN, Miami, Florida A82 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, MS-138, Board of Governors of the Federal Reserve System, Washington, D.C. 20551 or telephone (202) 4523244. When a charge is indicated, payment should accompany request and be made payable to the Board of Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank. THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, M a y 1984. 5 9 0 pp. $ 1 4 . 5 0 THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. 1984. 120 pp. ANNUAL REPORT. ANNUAL REPORT: BUDGET REVIEW, 1 9 8 8 - 8 9 . FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY. each. WELCOME TO THE FEDERAL RESERVE. MARCH 1989. 14 PP. PROCESSING A N APPLICATION THROUGH THE FEDERAL RESERVE SYSTEM. A u g u s t 1985. 30 pp. INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r 1986. 440 pp. $9.00 each. Federal Reserve Bulletin. Monthly. $25.00 per year or $2.50 each in the United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $3.00 each. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint of Part I only) 1976. 682 pp. $5.00. December 1986. 264 pp. $10.00 each. CONSUMER EDUCATION PAMPHLETS Short pamphlets suitable for classroom use. Multiple copies are available without charge. ANNUAL STATISTICAL DIGEST 1974-78. 1981. 1982. 1983. 1984. 1985. 1986. 1987. 1988. 1980. 305 pp. 1982. 239 pp. 1983. 266 pp. 1984. 264 pp. 1985. 254 pp. 1986. 231 pp. 1987. 288 pp. 1988. 272 pp. 1989. 256 pp. $10.00 per copy. $ 6.50 per copy. $ 7.50 per copy. $11.50 per copy. $12.50 per copy. $15.00 per copy. $15.00 per copy. $15.00 per copy. $25.00 per copy. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- RIES OF CHARTS. Weekly. $30.00 per year or $.70 each in the United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each. THE FEDERAL RESERVE ACT and other statutory provisions affecting the Federal Reserve System, as amended through August 1988. 608 pp. $10.00 REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. ANNUAL PERCENTAGE RATE TABLES (Truth in L e n d i n g — Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. INTRODUCTION TO FLOW OF FUNDS. 1980.68 pp. $1.50 each; 10 or more to one address, $1.25 each. FEDERAL RESERVE REGULATORY SERVICE. L o o s e l e a f ; up- dated at least monthly. (Requests must be prepaid.) Consumer and Community Affairs Handbook. $75.00 per year. Monetary Policy and Reserve Requirements Handbook. $75.00 per year. Securities Credit Transactions Handbook. $75.00 per year. The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. 3 vols. (Contains all three Handbooks plus substantial additional material.) $200.00 per year. Rates for subscribers outside the United States are as follows and include additional air mail costs: Federal Reserve Regulatory Service, $250.00 per year. Each Handbook, $90.00 per year. Consumer Handbook on Adjustable Rate Mortgages Consumer Handbook to Credit Protection Laws Federal Reserve Glossary A Guide to Business Credit and the Equal Credit Opportunity Act A Guide to Federal Reserve Regulations How to File A Consumer Credit Complaint Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System The Federal Open Market Committee Federal Reserve Bank Board of Directors Federal Reserve Banks Organization and Advisory Committees A Consumer's Guide to Mortgage Lock-Ins A Consumer's Guide to Mortgage Settlement Costs A Consumer's Guide to Mortgage Refinancing Making Deposits: When Will Your Money Be Available? When Your Home is on the Line: What You Should Know About Home Equity Lines of Credit PAMPHLETS FOR FINANCIAL INSTITUTIONS Short pamphlets on regulatory compliance, primarily suitable for banks, bank holding companies, and creditors. 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 A83 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 155. THE FUNDING OF PRIVATE PENSION PLANS, b y Mark 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. 157. M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Porter, and David H. Small. April 1989. 28 pp. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DE- STAFF STUDIES: Summaries Only Printed in the RIVATIVE PRODUCTS, by Mark J. Warshawsky with the assistance of Dietrich Earnhart. September 1989. 23 pp. 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. REPRINTS OF BULLETIN ARTICLES Most of the articles reprinted do not exceed 12 pages. Limit of 10 copies Staff Studies 114-145 are 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. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- TION RESULTS, by Flint Bray ton and Peter B. Clark. December 1985. 17 pp. 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. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A REVIEW OF THE LITERATURE, by Mark J. Warshawsky. April 1987. 18 pp. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis 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. 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. Home Equity Lines of Credit. 6/88. U.S. International Transactions in 1988. 5/89. Mutual Recognition: Integration of the Financial Sector in the European Community. 9/89 A84 Index to Statistical Tables References are to pages A3-A77 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Agricultural loans, commercial banks, 19, 20 Assets and liabilities (See also Foreigners) Banks, by classes, 18-20, 72-77 Domestic finance companies, 36 Federal Reserve Banks, 10 Financial institutions, 26 Foreign banks, U.S. branches and agencies, 21 Automobiles Consumer installment credit, 39, 40 Production, 49, 50 BANKERS acceptances, 9, 23, 24 Bankers balances, 18-20, 72, 74, 76. (See also Foreigners) Bonds (See also U.S. government securities) New issues, 34 Rates, 24 Branch banks, 21, 57 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, 73, 75, 77 Federal Reserve Banks, 10 Central banks, discount rates, 69 Certificates of deposit, 24 Commercial and industrial loans Commercial banks, 16, 19, 72, 74, 76 Weekly reporting banks, 19-21 Commercial banks Assets and liabilities, 18-20 Commercial and industrial loans, 16, 18, 19, 20, 21, 72, 74, 76 Consumer loans held, by type and terms, 39, 40 Loans sold outright, 19 Nondeposit funds, 17 Number by classes, 73, 75, 77 Real estate mortgages held, by holder and property, 38 Time and savings deposits, 3 Commercial paper, 23, 24, 36 Condition statements (See Assets and liabilities) Construction, 46, 51 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, 72, 74, 76 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, 73, 75, 77 Ownership by individuals, partnerships, and corporations, 22 Demand deposits—Continued 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, 73, 75, 77 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, l i 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 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 A85 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 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, 72 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, 74, 76 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, 74 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, 73 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, 73, 75, 77 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, 72, 74, 76 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) A86 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK branch, or facility Zip Chairman Deputy Chairman President First Vice President BOSTON* 02106 Richard N. Cooper Richard L. Taylor Richard F. Syron Robert W. Eisenmenger NEW YORK* 10045 Cyrus R. Vance Ellen V. Futter Mary Ann Lambertsen E. Gerald Corrigan James H. Oltman Buffalo 14240 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 To be announced Robert P. Bozzone W. Lee Hoskins William H. Hendricks Hanne M. Merriman Anne Marie Whittemore John R. Hardesty, Jr. William E. Masters Robert P. Black Jimmie R. Monhollon Larry L. Prince Edwin A. Huston A. G. Trammell Lana Jane Lewis-Brent Victoria B. Jackson Caroline G. Theus Robert D. Apelgren Robert P. Forrestal Jack Guynn Marcus Alexis Charles S. McNeer Phyllis E. Peters Silas Keehn Daniel M. Doyle H. Edwin Trusheim Robert H. Quenon To be announced To be announced To be announced Thomas C. Melzer James R. Bowen Michael W. Wright Delbert W. Johnson J. Frank Gardner Gary H. Stern Thomas E. Gainor Fred W. Lyons, Jr. Burton A. Dole, Jr. Barbara B. Grogan John F. Snodgrass Herman Cain 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 William A. Hilliard Don M. Wheeler Bruce R. Kennedy 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 Donald E. Nelson Fred R. Herr1 James D. Hawkins1 James T. Curry III Melvin K. Purcell Robert J. Musso Roby L. Sloan1 John F. Breen1 Howard Wells Ray Laurence John D. Johnson1 Kent M. Scott David J. France Harold L. Shewmaker Tony J. Salvaggio1 Sammie C. Clay Robert Smith, III1 Thomas H. Robertson 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 06096; Cranford, N e w Jersey 07016; Jericho, N e w York 11753; Utica at Oriskany, N e w York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. 2. Executive Vice President. A87 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Helen* Minneapolis Detroit Chicago Omaha' \S'"L.keCi,y Kansas City 't. Louis Cleffi'jt Lonisville •tfichm?JL •k»rlott*j Oklahoma City. '"ge/ts .ittle Rock Birminghai jh ® Atlanta > Dallas® Houston! ian Antonio ALASKA LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch Territories * Federal Reserve Branch Cities Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Publications of Interest FEDERAL RESERVE PUBLICATIONS CONSUMER 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 credit. Three booklets on the mortgage process are also available: A Consumer's Guide to Mortgage Refinancings, A Consumer's Guide to Mortgage Lock-Ins, and A Consumer's Guide to Mortgage Settlement Costs. 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. 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 Publications Services, Mail Stop 138, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.